If you own a business and aren’t constantly working to expand your product line, you’re missing out on some amazing opportunities. In fact, you might even be dooming your company to failure in the long run. Even if your current product lineup is highly profitable and generates exceptional sales, people will start losing interest eventually. Some of today’s most successful companies are always developing new products. Apple, for instance, blazed amazing trails by introducing the iPod, iPhone and iPad; imagine if they’d stopped with the Mac! Similarly, Nu Skin is always adding to its lineup and this helped them into the billions in annual revenue, which has cemented their long-term success and drastically improved customer loyalty. Even Google, the most successful search engine online expands their product line, whether if it’s the smart car or the android phone.
Small businesses are known to be slow about expanding. It is more risk, it does require more investment and time away from your current product portfolio. However it can increase your marketshare with your current product porfolio. There are many other reasons you should be expanding your product portfolio, but 10 of the best ones are:
Stay Relevant – The products people are buying now could very likely lose their relevance down the road. In fact, it could even happen in the blink of an eye. By constantly developing new products, your company won’t suffer when the inevitable occurs.
Meet Your Customers’ Evolving Needs – Don’t just rest on your laurels with the products you provide. Find out why your customers like them and how else your company can meet their needs. This is a great way to get inspiration for new products to offer.
Reach New Audiences – In addition to retaining existing customers, your company needs to continually attract new ones. What better way to do so than by constantly adding new products to your portfolio? After all, at a certain point, there will be a limit to who can benefit from your current line.
Remember the Product Lifecycle – Keep the product lifecycle in mind: introduction, growth, maturity and decline. If your current products make it to the final stage, and your company has nothing to take their place, you’re going to be in trouble.
Get More Attention – If you only offer a very small product portfolio, your brand is far less likely to stand out from the competition. After all, many businesses offer very comprehensive product lineups. Whether or not your products actually sit on shelves, the more you have to offer, the more shelf space your brand will take up. This is a great way to stay in customers’ minds.
New Marketing Opportunities – There are only so many ways you can market a product to the world. Chances are you’ve already identified your ideal audience or audiences for your existing products. With new, fresh products, you will open up a whole new world of marketing opportunities for your business. This will also help you reach new audiences.
Attract New Talent – Always working to expand your product portfolio won’t just generate new business for your company; it will help you attract new talent too. The most talented people tend to flock to the most innovative companies. By continually working to design new products, you’re more likely to have the best of the best on your team.
Increase Your Earning Potential – Look to your existing products to gain inspiration for new ones that can increase your company’s earning potential. What is it about these products that people like? Use those ideas to brainstorm new products.
Generate Buzz – Think of the excitement that occurs whenever Apple unveils its latest creation. You can generate that kind of buzz too, and the best and easiest way to do so is by constantly offering customers and prospective customers something exciting and new.
Increase Loyalty – When existing customers know that your company is constantly working to develop newer and better products, they’re more likely to stick around to try them. Customer loyalty is a key ingredient to long-term business success, so your efforts will pay off in spades.
Now that you’re aware of the best reasons to always expand your product portfolio, you shouldn’t need any more convincing. Get to work on it now, and your company is sure to enjoy new levels of success in the weeks, months and years to come.