4 things to consider when measuring the success of your products
The success of a company relies on its profit, constant interest from customers, and investment. But what builds a company are the products they sell. Whilst it would be easy to dismiss said products as simple fund generators, it’s far more important to recognize their role in the growth and development of the companies that sell them. If your product is not a success, then your company won’t be either - it’s a harsh truth that as many 45% of new products fail. Ask anyone who thinks they’ve had a good idea, and they’ll tell you. The product is what you need to get right, otherwise investment doesn’t matter, a healthy bank balance doesn’t matter, and you’ll have zero consumer interest.
Without product, there is no profit
Luckily, there are ways to measure the success of your products. In the long run, being able to determine how to develop great products that people really want will make it a lot easier to forecast for the future and see your company thrive. We’ve put together a handy guide to help you spot the diamonds among the glass.
The Importance of Demand and Supply (In that Order)
The first thing to consider with potential products is demand. Is there a gap in the market that your product can fill? Is there room for your product to be altered and changed if consumer expectations shift? Customers expect brand innovation, and 63% love it when brands manufacture new products. It’s easy to be short-sighted and believe that your sudden inspiration will become a sensation simply because there’s nothing like it, but as time goes by and without further development, many excellent ideas will fall by the wayside only to be replaced by something similar, but far more adaptable. For instance, 83%of customers indicate that they would pay more for innovation in electronics - if your manufacturing/buying process allows for such innovation, then as the product grows in popularity it will be able to change to fit customer demand. The ease of supplying the product is also a measure of success - if the product is difficult to source, hard to transport or expensive to manufacture, it can drive up prices, cause delays and impact your overall achievement. If it’s cost effective, simple to source and transport, your product is already a winner.
The Purple Rubber Duck Acid Test
It’s analogy time! Let’s use my favorite purple rubber duck as an example - there are thousands of rubber ducks in the world, some wild, most domesticated, but in order to successfully sell my very own duck, I need to consider what makes it different to all of the others out there. Is the material it’s made out of extra durable? Are its comically proportioned facial features less likely to rub off? Can it survive rabid dog attack without too much damage? Perhaps it has a little gold crown at a jaunty angle that makes it more pleasing to the eye. For me as a seller, I need that duck to be cost effective for me to produce, something that customers desire and something capable of making a profit, whilst constantly driving sales. These factors are key in measuring the success of my product.
How Consumers Impact Product Success
Then there is the customer market - that harsh, critical world where it’s either sink or swim. Once a product is out in the waters, it’s down to its sustainability and the interest generated around it to mark it out as a success. More interest and excellent reviews mean more sales, more sales means buying in more product, which in turn means you’re able to keep up with demand. Perhaps the easiest method of determining product success is through the sheer volume sold, but that in truth is only a part of the equation. Every aspect of a product needs to work and meet the needs of the consumer in order for it to drive sales and ultimately gain recognition. The fewer items that are returned, the clearer it is that the product is fulfilling customer desires and expectations. And, if your product is truly adopted, you’ll also see repeat custom skyrocket.
Perfect Product Fulfilment
Creating the perfect product is all well and good, but ultimately, you need a method of delivering it. Exceptional fulfilment allows for products to reach customers in a timely fashion which helps elevate the excellent experience overall. Software that can integrate with your multi-channels, that can track your orders, keep stock of your inventory and produce intelligent reports will help you keep your product available and will help reduce the amount of returns you’ll face. You’ve put a lot into developing a great product, so make sure you have the technology and partners at your disposal to really deliver it. The positive reviews you’ll receive will help keep interest and spread word of your product and brand, attracting new customers allowing for new customers bases to be found.
Key Points to Remember
Ultimately, it is possible to measure the success of your products by taking into consideration all of these factors:
- Place in the market
- Ease of supply and delivery
- Interest generated
- Volume of sales
- Recognition by customers/awards
- Low number of returns
- Repeat business
Adequate research into the needs of the consumer can help you stay one step ahead of your competitors, whilst investing time and money into your products can keep them relevant and desirable. A successful product makes for a successful company, whether or not you choose to sell crown-wearing purple rubber ducks, a service, a solution, or an impressive innovation which may change the world someday. Measuring the success of your products may not seem necessary if you assume things are going well, but constant re-evaluation will ensure that the future remains bright, and your products keep selling.
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