Nowadays, creating new services that can both retain customers and generate profits is really difficult when customers always have countless choices and are offered by countless suppliers and distribution channels.
Therefore, to gain the upper hand in the game with many strong competitors, managers with the task of creating services closely related to customer needs need to:
- Identify increasingly accurate services that are likely to win big in the market
- Quickly and efficiently prioritize the most promising ideas and investments
- Develop products with countless indispensable values for customers
- Execute your chosen strategy more nimbly
By surveying many service companies around the world, we have drawn out 4 ways to help managers develop and implement "powerful" business ideas in the service sector.
1. Develop services that are aligned with user preferences instead of purely technological platforms
In most companies, the people who have the final say in innovation are the engineers. However, if we focus on technology first, we will create services that are either far from what customers want, difficult to use, or too expensive to develop. If we ignore customer preferences and focus only on technology, you will be like the company that developed the product. Creative Technology's Normad: sadly watched his product die young when it was crushed by the iPod - a product that suited Apple's taste.
Dear businessmen, the new era forces us to change our business thinking. Now, business ideas that target customer tastes have become popular. So how can your service hit customer tastes? If you want to reach the hidden and unsatisfied needs of customers, you can join online forums - where there are analytical comments and sharing experiences of sophisticated users to determine future consumption trends of a larger group of customers.
You can also look at research on consumer-facing activities in developed countries and analyses of product investments made in related industries. When you combine all of these analyses, managers can make more accurate predictions about the values and products that have a high chance of success.
2. Prioritize ideas based on sound business criteria rather than emotional thinking.
In the early stages, if we rely only on rudimentary prioritization methods to filter out the right new ideas from a myriad of ideas, we are likely to overspend and delay the time to market. Therefore, we should base our decisions on specific business criteria that take into account both short-term and long-term strategic and financial goals.
What are those criteria? They might include trade-offs between customer retention and control, market share and revenue per customer, time to market, likelihood of success, and investment resource requirements.
Specific business criteria will help make decisions within the team faster and more transparent. Everyone believes in the viability of the future product, and the business will only have to focus on developing the service group with the most potential.
3. Create a business model that is parallel to the pure features and functions of the service
Most organizations spend a lot of time developing service features and functions, but do not pay attention to shaping the business model that supports that service. Each new service requires a new compatible business model to create core user value and achieve profit goals.
UK-based BSkyB has done this well. When it launched its Sky television service, the company immediately implemented a subscription service. Targeting a male audience aged 20 to 40, Sky was determined to secure the rights to broadcast many sporting events and attract a large audience.
Building on the original business model, Sky continues to innovate new services by offering customers more exclusive TV shows. Thanks to that, Sky is increasingly expanding its audience and consolidating its position in the hearts of users. Sky satisfies customers' entertainment needs with many options with many service packages, moreover, it has expanded into broadband Internet and telephone services. Sky's revenue has therefore increased rapidly.
It is the right service selection strategy and business model that has helped Sky protect its competitive advantage, successfully penetrate high-value television services and maintain its strategic position in the market.
4. Quickly and aggressively validate potential projects or early ideas
Today's sophisticated consumer analytics tools help us validate new business ideas and support informed product design decisions before we invest in any model. Videos and animations can help you demonstrate the basic features and benefits of a new business idea. And simulated business environments can help you determine which service features actually drive demand and which moves by competitors could change the market landscape.
The online interactive environment can help compare business ideas from a multitude of suppliers at different price points to make a choice. Through this environment, it is also possible to choose the best supplier at the optimal price.
With an outside-in approach: focusing on consumer-facing services, considering competitors, and relying on market data, the gap between potential service ideas will increase significantly. First, based on pre-determined business criteria, businesses will select and invest only in the most potential business ideas.
Finally, businesses use cutting-edge customer analytics to validate those ideas, allowing them to make faster, smarter decisions—all with the goal of accelerating their time to market and boosting their chances of success.
TuanVietNam.net
