Everyone loves a great product idea with an attractive ROI. But product ROIs are more guesswork than science and they’re too narrowly focused. Think bigger and measure the value every new product brings to the portfolio.
In B2B, solutions are the name of the game. The true value of a new product isn’t the ROI of the product itself, it’s the value of the solutions your organization is able to deliver because of the new product.
Consider the following before making any attempts to number-crunch an ROI.
- How many new solutions are created when the capabilities of the new product are combined with capabilities of existing products and services? Solution-minded organizations define the business solutions first. New products are born to close gaps across the portfolio in order to deliver those solutions!
- How much revenue can be generated from solutions that utilize the new product?
- What’s the cost of developing those solutions? There’s the cost of building the new product and then there’s the cost of integrating that product into existing products to create new solutions or improve the value of existing solutions.
- What will it cost to take the product to market? Beyond the incremental infrastructure costs that go with any new product, re-think your marketing and sales initiatives. Are you launching new solutions or strengthening existing solutions with the capabilities of the new product? New solutions warrant more effort. Adding proof points to existing solutions warrants less effort.
Products are the means to an end. In B2B, that end goes beyond user needs for a product. It’s about solutions that remove obstacles to growth and/or profitability for the target-customer organizations, a feat rarely accomplished with a single product.
Going forward, don’t limit the ROI of a new product to only the product. Think big. There’s value far beyond the product itself.
Your Next Steps
- Contact Proficientz to learn how our framework and training can help you transform a portfolio of products into more powerful business solutions.
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