How Often do You Innovate Your Products?

All products and services go through what I call the ‘3-stage value cycle’. If you understand this cycle then you understand why it is critically important to be continually striving to provide additional value for your customers.

During stage 1 of the ‘value cycle’ newly launched products and services can provide a ‘one of a kind experience’ for the customer. Think of the very first commercial airline flight – tremendously amazing value for those passengers!

As a result of market forces and competitive pressures most products cycle towards becoming commodities. This is stage 3, where customers typically purchase the lowest priced product. Think of economy seating within the airline industry today – how did you choose the airline for your last flight? Was your decision largely based on price?

In between is stage 2 of the ‘value cycle’: uniqueness. This is where your product or service offers something distinct, something different from your competitors, something of additional value to the customer.

Some of you are already thinking about those seats near the front of the airplane with greater leg room, a free meal, and faster off-loading. Each of these is different than economy seating and greater perceived value for some customers.  But wait a minute, since many other airlines offer the same types of seating packages what’s so special? It’s a different product offering than economy seating – but definitely not unique.

Can you think of any unique products or services or experiences that you have recently purchased? What made them unique? What value did they provide you?

Do you know what stage of the ‘value cycle’ each of your products or services is in?

For your unique offerings, are you able to clearly articulate the additional value? Are you confident your competitors are not offering this exact same value?

If you currently are not innovating your products and services and not striving to provide additional value to your customers – are you willing to change your beliefs regarding how important this is for the success of your business?

“There's a way to do it better - find it."

- Thomas Edison

“Nothing works better than just improving your product.”

- Joel Spolsky