Change is hard but consumer demands will always change. People expect better. They demand improvement and crave the next big thing. To stay ahead of the competition and satisfy your customers, not only do you need to design, build and market great products, but you also need to predict what consumers will want before they want it. You can easily lose your share of the market to innovators and disruptors who build new, better, faster and smarter products.
Reinvent and redefine everything in your business if you have come to the crossroads where your business strategy is no longer working and you need to change strategic direction to keep your doors open. Reinvention has always been a powerful strategy for constant growth. But in the past, corporate and product reinvention was an option; today it is a necessity.
Companies that have reinvented themselves.
Apple has done more than reinvent itself; you could say it reinvented the “reinvention” business. Legendary CEO Steve Jobs didn’t invent any of the machines that made Apple a household name, but he and his design team made them infinitely better.
Apple’s greatest reinventions came when it turned its attention away from computers and toward hand-held devices. You don’t necessarily have to create new products but you can significantly improve what already exists.
Netflix has completely reinvented itself. Before video streaming, Netflix’s success was rooted in convenience. Go online, order a movie, and it’ll be at your door the next day. Netflix’s growth, however, occurred alongside a serious shift in consumer habits, and DVD sales plummeted as many flocked to online streaming. Now Netflix even produce its own content. Orange is the New Black is doing great.
Here is how to reinvent your business
What is the reason for your slowdown? According to Jennifer Goforth Gregory of Open Forum, the first thing you should be doing when experiencing slow growth is to determine what is causing the downturn. She writes;
“Many small businesses will launch a marketing campaign or offer discounts when going through a slowdown. But if you’re not fixing what is actually broken, then you’ll only have a short-term fix instead of long-term success. Brainstorm with your staff about reasons for the current situation. “Talk to the salespeople first and then work your way back to strategy. Salespeople are the ones who get the phones hung up on them and the doors slammed in their faces,” says Mark Stevens, author of “Your Marketing Sucks.”
After you have a list of ideas, begin to research into each one to determine if it’s the main reason or a contributing factor. Use sales data against changes in your industry, new competitor’s products and other influences to help pinpoint what’s holding you back. Narrow down the list to no more than three reasons contributing to the problems.”
“Spend some time with the list of obstacles and begin brainstorming about ways you can reinvent your business to meet your challenges. Once you’ve decided your strategic direction for reinventing your business, create a roll out plan that will allow you to test your strategy before committing on a large scale. ”
Lee Polevoi of Quickbooks business centre could not have put reinvention any better. His four tips for reinventing your business to meet market conditions are:
1. Know when the time is right. Reinvention starts by facing some unpleasant facts: More competitors have appeared. The market is changing. Your customer base is eroding. Or, you’re no longer driven by your original vision. These are all solid reasons to make a change.
2. Rethink your customer base. How well do you know the people you serve? Can you explain how your product or service fulfills their needs? Now is a good time to talk to your top customers and explore new ways to satisfy their desires. Use their feedback to start rethinking your customer relationships.
Meanwhile, what about customers who represent lower profit margins? Could you entice them to purchase a different or modified version of your offering? Next, identify new market opportunities: Who isn’t buying what you sell? Why not? Look for people who are ignored or bypassed by the entire industry.
3. Launch a new product or service. You’re already good at what you do. What else can you offer customers that would change their buying experience? If you’re feeling burned-out with your present endeavor, remember how excited you were in the beginning. That same creative fervor can spark ideas for new offerings.
4. Consider new marketing channels. If your business has relied largely on conventional marketing and advertising channels, look at the opportunities presented online. Conversely, if your web-based business needs more exposure, consider buying advertising in venues you haven’t tried before, such as billboards or television. Changing the way you market your product is a type of reinvention, especially when the message targets new customers.