Realigning your product/service portfolio to the markets that you’re facing today

There is one constant in today’s market place, one thing that we can count on without fail, the constant of change.

In today’s markets the cycles of change are accelerating, with that in mind your customers’ wants and needs are also evolving and changing at an accelerated rate. How then do you keep track of these changes and how do you offer products and services that serve your clients and your business goals?

Let’s look at some of the steps you should consider.

Understand your customer and the market conditions

It is important to understand your customers and the market in which you operate as this will help you to pre-empt your next move. You have to stay as close to your customer as possible, understand what makes them tick, so that you can anticipate which new features and new products you should consider. Customer and market research will differ from business to business but can be done through things such as regular surveys, service evaluations, loyalty programme data, customer purchase behaviour data and desk based research.

Evaluate your current portfolio

Look at your current product portfolio and evaluate where your products lie in their life cycle. Then evaluate current revenue as well as revenue potential.  Once you thoroughly understand your current position you can evaluate which products should be cut, which should be added, which should be re-vamped and which should be maintained. Having a punchy streamlined product portfolio will be much more profitable than having a fragmented, tired and sentimental product portfolio.

For smaller businesses these decisions can be difficult, as one often develops an emotional relationship with some products and services. Keeping products or services in your line simply because you feel attached to it won’t serve your growth aspirations, so during this stage you should detach emotion and evaluate the facts instead.

In most cases it is wise to stick to your core competencies when adding new products/services to your portfolio. If you, however, realise that you have to acquire or develop new core competencies in order to properly serve your customer, ensure that you have a well researched and realistic business case for doing so.

Adjust

Once you have done your research and once you understand where your most and least profitable options are adjust your portfolio to reflect your customer needs, the market needs and future trends.

Monitor and Evaluate

Regularly evaluate your product portfolio to ensure that you stay in touch with market and customer trends. Evaluate your product positioning and prising strategy as these things all contribute to your overall product/service experience, which in turn influence your long-term growth.