What does product development have to do with Data-Driven Marketing? A lot, it turns out.
One of the fundamental questions for product development is -- product development from whom?
Products are not part of PRODUCT portfolios at all -- they are really part of "customer portfolios"
The bank of products from which your customers select when they choose to transact with your company. Reduce the portfolio -- risk losing the customer. If you do not have what the customer needs, they will seek other alternatives and potentially become enamored with the solutions and approach of a competitor -- a clear attrition risk.
Our work with product development includes targeting, needs identification and process management, all of which is carried out under the goal of increasing measurable revenue and profit, net of cannibalization.
Targeting -- whose needs matter?
If you try to build to the needs of your entire audience, you are likely to dull down the fine edges of needs expressed by your Best Customers -- those critical to the business' growth and well-being. Determining the target group is core to our mission -- it provides clarity and focus to the product development effort.
We conduct a series of qualitative and quantitative research efforts to determine which attributes/qualities are the most critical, what pricing can be associated with a product with those attributes and what is the cannibalization impact. Our conjoint analysis makes those tradeoffs and helps to select the best combination for development.
Experience helps to lend some structure to product development. Using Stage Gate®, a recognized best practice methodology, M Squared Group focuses efforts where they are most needed, providing discipline to overall process – from ideation to in-market.
Net of all, our efforts accelerate product development and make the initiatives more profitable, both in effort and actual, realized net returns.