10 Steps to a Successful Product Launch, Part 1
Successfully launching a new product is a complicated process. Whether it's
your first launch or your 51st, your team must follow the right steps in the
right sequence. Product managers, engineers, marketing, sales, and customer
service personnel, must all work together to ensure success. Over the years,
we have refined the process into the following 10-steps.
1. Make sure you have a market looking for a product and not a product desperately
seeking a market.
All too often, companies (of all sizes) launch a new and exciting product
into a market that isn't well defined. Taking shortcuts on the preliminary
market research that helps you identify and understand your target market
will cost you. If not planned well and implemented correctly, you could face
months or years of missteps, sunk costs, and lost competitive advantage.
Fast answers rarely give you the results and data foundation you need to
build a credible story. You need to have a crystal clear vision of how your
product will address a need in your market. Not just a "nice to have"
need, but the kind of urgent need that will have your product pushed up to
the top of a buyer's list. Things that can be done to answer these questions
include market research studies, focus groups, customer interviews, win/loss
studies, and discussions with market analysts.
2. Understand the full revenue impact of your new product or service.
Often, a new product introduction can slow down or halt current sales cycles
because customers choose to wait for the new product vs. purchase the available
version. Make sure you fully understand the revenue impact, which encompasses
the revenue erosion from other product lines and the ramp up time expected
for the new product to generate enough revenue to replace what was coming
in from the existing product line.
3. Thou shalt beta test.
It seems obvious, right? But, do you know how many companies "skip"
this vital step in the launch process? It's usually because there have been
development delays, and they opt to skip the beta in order to get out the
door on time. Just remember, haste makes waste, and you may end up alienating
good customers with these practices.
Beta testing gives you the chance to work with customers who are fully aware
they are using early version products or services. In most cases, your company
ends up developing a strong relationship with that customer which has additional
benefits for you (see Product Launch #4). A beta also enables you to address
product flaws before release, and gives you a more solid product once launched.
4. You have developed customers who are referenceable.
The first thing your distribution channel will need to help you execute this
product launch is reference sites. This makes the sales process much smoother,
and in many cases will speed adoption rates. However, references are a luxury
at the early introduction stage of the launch, and you are not always guaranteed
they will be ready. A beta test phase (see previous step) can help you address
this issue. Many times, happy beta customers will end up being reference sites.
If not, make sure you develop a plan to handle reference requests if a reference
site is not available, i.e. a customer on an older product version.
5. Your channel is informed, trained, and ready.
Sales training is a must for a successful product launch. The channel will
carry your new message and product to the market. Not only do they need to
know what it's all about, but it's marketing's job to make sure that they
have all the materials they need to be successful. Start with:
- What is the product;
- How does it address a business need;
- Is there any differentiating technology;
- Are there any differentiating features and options;
- How does the product compare to competitive offerings and market standards;
and
- Where are the holes and recommendations for getting around them.
Developing sales kits with a set of tools to address the informational needs
of the channel is highly valued. Recommended tools include: feature/advantage/benefit
charts, FAQs, PDF files and hard copy brochures, breakout of needs by industry
(i.e. how to address the differences between your target markets, such as
a hospital, a manufacturer, and a financial services company), and more.
In part 2, we'll cover getting the word out.
|
