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How to use Michael Porter’s 5 forces to your advantage?

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How to use Michael Porter’s 5 forces to your advantage?

  • Tags Michael Porter's 5 Forces

Importance of Five Competitive Forces

Michael Porter’s five forces is a model that identifies and analyzes five competitive forces that are crucial for industries. They help you to identify your strengths and weaknesses. You’ll have a chance to analyze the competitive environment where your company is operating and generally use it as a very important tool.

These forces are related to the number and power that your competitors have and will help you analyze the power of new businesses in the market. Also, you’ll define more aspects about your suppliers, and customers which will help you to find ways for increasing your competitive advantages.

Understanding Michael Porter’s 5 Forces

Michael Porter’s 5 forces is a business analysis model which explains why and how different companies have different levels of profitability. Based on that, you can analyze your industry structure and corporate strategy as well. Generally, you’ll understand how your company can become more competitive, attractive, and profitable.

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Competition in the Industry

Competition is the first of the five forces. If the company has lots of competitors and its products and services don’t differ from others, the company will have less power. In this case, companies need to show their suppliers or customers that they have better products or services, or that they have lower prices. They need to show a wider audience just what makes them different. When the competition is low, the company can set up its own rules and set up higher prices as well.

The potential of New Entrants into an Industry

New entrants in the market could have a great influence on the company’s power. If the new company requires a small amount of time and money to establish its place in the industry, it’s not a good sign for the old ones. Basically, you are considering here how easy or difficult it is to enter a market when it comes to new brands.

New entrants could bring different issues for the company. When you are working on a marketing strategy, or you are making research to determine how to develop your company, consider all the companies in your market and their abilities, and the possibility of new businesses emerging as well.

Power of Suppliers

The next one from Michael Porter’s five forces is the power of suppliers. No matter what kind of business you have, online or offline, you would have a supplier for sure. Nowadays, businesses are reliant on other businesses while working on their operations.

But your company should work on several aspects to make sure that you won’t be overly dependent on suppliers. First of all, determine the number of suppliers in the market. Make sure that you’ll have more backup suppliers because it can be a great advantage for your company. Also, find out how much it would cost your company to change suppliers.

Power of Customers

Customers could have great power over companies and generally every important aspect of their industries. Their power could be changed with time or because of the company’s competitive strategy.

It’s important to know just how many customers a company has, how significant are they, and what the company needs to get new customers. When the company has a smaller client base, customers have more power to lower prices. While companies that have a bigger client base, can increase prices with fewer issues and can be more profitable.

Threat of Substitutes

The last of the five forces are related to the threat of substitutes. Everything that could be used in the place of a company’s products or services is already a great threat. Companies who have more unique products or services will be able to increase prices freely and work on more favorable terms. But when similar products can be found elsewhere as well, it could make the company lower prices to not lose customers.

The Framework of Porter’s Five Forces

This framework will help you to evaluate your competitive environment. It can help you analyze where your company is standing now and how you can move forward. When you’ll understand these forces and use them in your industry, you’ll be able to improve your business strategies and generate higher earnings as well.

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Measure your Customer Experience with your Net Promoter Score

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Measure your Customer Experience with your Net Promoter Score

  • Tags Customer Experience, Net Promoter Score, NPS

Why Use NPS for Measuring Customer Experience?

Having proper feedback is crucial for any company. Your customers are the ones who use your products and services and no matter how much knowledge you have about them, they’ll always have something valuable to tell you.

Net promoter score helps you understand the whole scenario which is related to your customers and their experiences with your brand. You’ll understand what are your strengths and what you need to improve. Also, you can identify who are more loyal customers and create connections with them.

Net Promoter Score as Foundational Business Metric

Net promoter score plays a crucial part for any company in regards to discovering the amount of loyalty and satisfaction that customers feel towards them. NPS can give you great information based on one single question about the chances of them recommending you to others. What your company could gain is a great insight into customer sentiments that will help you to plan your future operations.

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Transactional VS Relational NPS

Relational NPS surveys are done on a regular basis. For example, quarterly or annually. It helps you to understand generally how your customers feel about you and what’s their experience in your company.

Transactional NPS surveys are done after customers interact with your company. For example, when they are purchasing something from you or receive a support call from you. It’s generally better to use both types of NPS surveys in order to understand more about your customer experience.

Distributing Net Promoter Score Survey

Net promoter score surveys should be present on the channels that are more frequently used by customers. For example, if they use your mobile app more frequently you’ll distribute your survey there, but if they use your webpage more often your survey will be done from there. Surveys can be done in many different ways, via SMS messages and QR codes as well.

However, choose the platform for the survey very carefully, because in some cases sending emails rather than putting the survey on the webpage could be a better option. For example, customers might score based on their experience on the webpage itself and don’t give you enough idea about their experience with the brand. In this case, emails would be more helpful.

Capturing Operational and Experiential Data

First of all, when you want to measure customer experience with a net promoter score, you have to go through customers. Choose the ones that had a more recent experience with your company. Generally, they are more willing to leave feedback.

Gathering up operational data and experiential data from your customers will be great, but you need to analyze the whole information as well. This data will clarify more aspects about your customers.

Personalize the Survey

Without surveys, you won’t be able to understand what’s going on. However, there is a high chance that many people won’t participate. Some might not even open up surveys to at least check what they are about.

So provide them with personalized surveys. For example, include their names or the product name that they purchased recently in the subject line of your survey email. This way you are increasing the chances of them responding to you and also, you are creating a connection with them.

Tie NPS to Other KPIs

Besides surveys and analyzing responses that you gained, you have to ensure that you’ll use additional metrics as well. A net promoter score is a valuable tool for your company, but if there are some other aspects that you are interested in, you can read one of our articles as well – “How to measure Customer Loyalty” and also understand “Which Marketing Strategies Work for Loyal Customers”.

Customer Experience is a Moving Target

You should know exactly what your NPS is and how well your company is performing regarding customer experience. But this target is always moving and so it’s hard to not miss the mark.

That’s why it’s important to determine the NPS strategy that will work best for your company and also, back it up with frequent qualitative research. It will help you determine exactly what your customers think and how can you make your products or services satisfy them beyond their expectations.

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How to use the Strategic Business Unit in your marketing strategies?

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How to use the Strategic Business Unit in your marketing strategies?

  • Tags Strategic Business Unit

Importance of Strategic Business Unit

The strategic business unit (SBU) is an often talked about topic, especially when it comes to strategic management. It is actively adopted by numerous companies in order to grow and produce more products.

A strategic business unit represents an independent, specialized department or a sub-unit that is focused on a given objective. It has its own mission which could be very different from the parent organization.

The Main Focus of the Strategic Business Unit

The strategic business unit is mostly concentrated on long-term business goals. SBU manufactures and delivers its own products and makes all the decisions related to them, while the head office is tracking income and profits.

For example, Panasonic and Coca-Cola are great examples of SBU. Panasonic has separate divisions to manage different products. While Coca-Cola shows very effectively how multiple subsidiary products that exist in the same industry can be managed.

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Characteristics of Strategic Business Units

A strategic business unit that the organization will adopt should be well suited for the strengths and benefits of the company and should be able to use all the opportunities that will be in the industry. Also, each SBU has specific products and services.

A good strategic business unit will be a separate unit of business or a group of businesses, that can plan everything independently. They are dealing with all the responsibilities related to their environment, like profits, strategic planning, and general performance.

Types of Strategic Business Units

There are several different types of strategic business units, the first one is Stars. Stars are SBUs that are dominant players in the market and are characterized by high growth and market share. Cash Cows are the kind of SBUs that grow more slowly.

Sometimes organizations have difficulty deciding where they should invest their money, time, and resources. In this case, they have to decide finally, if they are going to invest in a specific business or just get rid of it, that is what Question Marks are about.

While Dogs are underachievers, they have a low market share, and their profits most of the time are only enough for their unit. In any case, most companies don’t invest in these kinds of units and prefer to search for more promising options.

How SBU Can Help you with Marketing Strategy

Marketing strategies are all about achieving the company’s goals, understanding customers, and creating a distinct competitive advantage. It is essential to understand the needs of organizations and what they need for improvement.

Information that you can get from here will help you to understand what kind of business strategic unit you need, how you can implement this unit in your organization, and how you can benefit from it. With a suitable strategic business unit, you can be more profitable and have numerous advantages. You can become more successful and visible on the market.

Factors That You Have to Consider

The importance of SBU is great for your marketing strategy, but there are several factors that you have to consider in order to take successful steps in the future. First of all, look through your industry and determine carefully what kind of products or services should be and should not be related to your strategic business unit. Make favorable choices.

Define generally how to choose SBU and understand its potential. Look through current SBU and try to understand more about potential SBUs. Define what kind of business models you would implement for your SBUs and how you are going to monitor those business models. 

How to Set up a Strategic Business Unit

When you are setting up a strategic business unit, you need to understand more about specific requirements. The very first one that you have to consider is adapting the organizational structure. You have to pay specific attention to this aspect when planning what you want to do for the business unit. Also, understand how your company could generally react to those changes.

You should carefully choose the managing team as well who will have a great understanding of your strategic business unit. You have to adjust the corporate culture as well. Generally, try to make your employees feel from the beginning that they are involved in a very important process and they are being appreciated by you for their effort.

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How much is a good Net Promoter Score?

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How much is a good Net Promoter Score?

  • Tags Net Promoter Score, NPS

Importance of Net Promoter Score for Businesses

Businesses stand on happy and satisfied customers so finding ways to measure their satisfaction is crucial. That’s exactly how net promoter score (NPS) can help you. With the information that net promoter score can give you, you can figure out what you need to improve, and how you can maintain high standards.

Benefits of Using NPS for Measuring Customer Loyalty

Numerous other options can help you to measure customer loyalty, but NPS is very frequently used for a couple of reasons. It’s a very straightforward metric that is very simple to use and understand. NPS makes it possible to accurately measure customer loyalty and satisfaction.

Also, NPS provides you with a full picture of how customer generally views your brand, and it’s related to their whole experience and not just one occasion. You can also understand how well you are performing against your competitors. It’s an easy, cost-effective solution that can give you good direction and help you understand what you need to change or improve.

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Interpretation of the NPS Scores

NPS scores can be interpreted differently based on different aspects, but generally, some numbers give you a very clear indication of what’s going on. If the net promoter score is below 0, it means that you have to sort out lots of issues in your industry. When it’s between 0-30 it means that you are in a good position but there’s still room for improvement.

If the score is above 30, it’s a good indication that you have mostly happier customers than unhappy ones and you are performing well. When the NPS score is above 70, it means that you have numerous happy customers and they are more than happy to be your brand’s ambassadors.

NPS for Different Industries

A good net promoter score is different for different industries. For example, companies that are related to the consultancy sector have higher than average NPS, because they have longer and more frequent interactions with their customers.

But when it comes to health care, or anything medicine related it could be lower, because of the mindset that the patients could have, it’s just not a pleasant experience for many to visit doctors and that’s why. So first of all, you have to understand what’s the average net promoter score in your industry and then identify the actions that you’ll need to improve customer experience.

Compare NPS Scores Within a Region

NPS scores are different for different industries but it’s also important to see what’s happening in certain geographical areas as well. Cultural differences decide a lot for the NPS score. For example, to speak generally Americans more frequently rate companies higher, while there’s a more different situation in Europe.

If a satisfied American customer is willing to score you with 10, a European customer will give you 8. While in Japan it’s simply poor etiquette to rate any business too high or too low, no matter how well they are performing.

NPS for Famous Brands

Competing against the net promoter score of famous brands would be interesting, but it’s important to not lose focus on your industry and first make sure that you’ll perform better than your competitors whom you are dealing with more frequently. Also, some of the famous brands have a higher net promoter score because they have a well-known company name or the niche market that they are operating in and it might not be related to customer satisfaction at all. Generally, the numbers are high here.

NPS for B2C Businesses

Net promoter scores for B2C businesses always highlight important factors related to customer satisfaction. Those types of businesses always have a bigger customer base, so can get more valuable information as well. The average net promoter score for B2C ranges between 24 and 57. 47 is already a good score. But you have to always follow industry standards and news because those results always change each year.

NPS for SaaS

A good NPS score for SaaS (Software as a Service) is approximately more than 31. A good range varies between 31 and 41, but those numbers change every year. Scoring above 30 would be good, but being close to 40 or overcoming that number would mean that your company can be distinguished from many others.

Many other industries have completely different scores, so before you come up with conclusions regarding your customer loyalty and satisfaction, look through your industry and geographical area one more time.

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Why does your company need Organizational Readiness Assessment?

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Why does your company need Organizational Readiness Assessment?

  • Tags Organizational Readiness Assessment

Importance of Organizational Readiness Assessment

Organizational readiness is all about the relationship between people, processes, systems, and performance measurement. Organizations should be ready for changes and new challenges because they can transform you for the better. But before you move forward organizational readiness assessment will help you to determine if your company has enough resources for specific projects or goals.

What You Can Discover from Organizational Readiness Assessment

After the organizational readiness assessment, you are more sure about your success and know that you are ready to take the next steps. During this process, you’ll mostly assess your project goals and objectives, your general expectations and concerns, and what’s your ability to adapt to the change.

Also, you’ll be able to find ways that could help you to minimize the chances of failure for your project, in order to just avoid unnecessary surprises. You’ll assess project governance and decision-making process, and any other aspects that could be critical in your unique situation.

Use Qualitative and Quantitative Methods to Collect Data

Both of those methods will help you to gather accurate data which is necessary for your organization. You can gather qualitative data based on interviews related to specific topics. For example, about the understanding of project importance, understanding the changes that will be in the future, etc.

While the quantitative method will help you to gather more information via surveys. You’ll have a better understanding of how employees feel about changes and the company generally. After analyzing this data, you can understand which departments need more support and what are the key risks that you might have to deal with.

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Readiness Can Help You to Get Familiar with the Audit Process

An audit is a very important process for the company, which can help you determine operational inefficiencies, help you review your systems, and generally provide you with objective insight.

The organizational readiness assessment is done months before the audit. This combo can give a company very good information about numerous crucial aspects. In order to have a better understanding of this topic, you can also read one of our articles – “How to do an Audit of your Company”.

It’s an optional step, but can help you to learn more about the standards that you are aiming for and can help you to get everyone in your organization on the same page.

Readiness Assessments Help You Address Potential Problems

First of all, you’ll have a chance to discover and address any potential issues before they become a problem for you and will influence any of your projects. You’ll be able to see potential gaps that need to be immediately addressed. You’ll gain information that will help you to improve any aspects that don’t seem beneficial for you and generally will help you to have better control over every aspect of your company.

Readiness Assessments Help You Address Changes with Employees

In order to change everything successfully in your company you’ll need to update your employees about everything and make sure that they are ready for those changes and have enough capabilities to get involved in important processes. Your employees will be able to have a better understanding of data flow as well and generally will feel more valued if you engage them in the organizational readiness assessment process.

What It Can do for Your Business?

A good readiness assessment is related to good organizational programs and project readiness. It can help you to take more innovative steps, it can help to completely restrict your company and achieve better results with larger and more complicated projects.

You will be able to pinpoint company resources that are available and valuable for you, will get a better understanding of the character of your team members since they are so important for changes in your business, and will know more about the areas of your business which need more attention and improvement.

How to Use It

After gathering information about your organization, about your strengths and weakness, you’ll be more ready for changes. You’ll have numerous advantages that will be very beneficial for you in order to make necessary changes for improvement.

You’ll have to evaluate if you are ready for certain projects and changes, like if you can meet specific requirements. It will be easier for you because of the information that you got from the organizational readiness assessment.

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How does your Net Promoter Score impact your Company?

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How does your Net Promoter Score impact your Company?

  • Tags Net Promoter Score, NPS

Importance of Net Promoter Score

Net Promoter Score (NPS) is a critical metric for any business and measures customer loyalty and satisfaction. It gives you an idea about the number of your loyal customers.

NPS is important to understand why customers become loyal to your brand, like what are their reasons mostly. You’ll have proper feedback from your customers and will find out just how satisfied they are with your products or services.

Benefits of Calculating Net Promoter Score

Net promoter scores give you very good feedback. It can be analyzed very easily as well. Marketing, sales, and product development teams move forward with this information very quickly.

NPS not only provides you with feedback but also enhances the customer experience as well. Based on the information that NPS can provide you with, you can even start working on loyalty programs and develop strategies that will help you to increase customer lifetime value.

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How to Calculate Net Promoter Score?

In order to calculate NPS, you’ll need to conduct a survey as well. During the survey, you have to ask your customers, for example, on a scale of 0-10 how likely they are to recommend you to a friend. Based on the scores that you’ll get, you can put them in different categories.

People with the lowest scores, like 0-6 will be detractors. People who got 7-8 will be passives, and the ones who scored 9-10 will be promoters. Those categories will give you a better understanding of your customers and their loyalty to your brand.

After this you can use the formula for the Net Promoter Score – Net Promoter Score = (Number of Promoter Score/ Total Number of Respondents) – (Number of Detractor Scores/ Total Number of Respondents).

Net Promoter Score Impacts Your Team

Businesses that want to grow rapidly pay a great deal of attention to their resources and team members. Team members should work well together and have great motivation. Otherwise, there is a huge chance that whatever they are doing won’t be so good.

Explain the importance of NPS to them, and explain how they can be actively involved in different processes to increase customer loyalty. Trying to improve NPS should be another goal for them.

NPS Can Quantify Word-of-Mouth Traffic

Word-of-mouth marketing itself is very important for companies as another option for free advertising, but it’s mostly done by satisfied and happy customers. So it’s important to determine what gives you a satisfied customer and what makes them promote your brand on daily bases.

Most customers pay attention to what their friends or family members are recommending to them, so it’s important to develop a good word-of-mouth pipeline. Think about how you can improve the experiences of your customers and how you can make your brand more memorable for them.

NPS Measures Your Customer Loyalty

Customer loyalty is hard to measure because it’s constantly changing, but most customers pay greater attention to brands that they are loyal to. In order to have a better understanding of the loyalty of your customers, you can check the repeated purchases as well.

Also, determine what’s your average order value, this way you’ll know approximately how much your customers spend on your products or services. Also, check how many customers left your brand and canceled subscriptions.

To understand more about how to measure your customer loyalty, you can read one of our articles – “How to Measure Customer Loyalty”.

NPS Provides a Benchmark of Customer Quality

NPS can help you to understand more about your customers’ loyalty, quantity, and quality as well. NPS will help you to understand if certain customers are really the ones that you need and if they are suitable for your products or services. Use the information about other factors as well to get a more clear picture, like what’s your customer churn, conversion rate, etc.

NPS Can Identify Areas for Product Improvement

When you are creating a new product, it’s important to know what your customers think about it or feel about it. When you are monitoring everything with NPS you can understand more about the positive qualities of your products and about the negative aspects as well.

You can implement necessary changes from the beginning and don’t delay the improvement of your product. After your customers will provide you with scores, you can ask them additionally why they decided to give you a certain score and understand more about specific aspects.

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How to create a Roadmap for Value Creation?

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How to create a Roadmap for Value Creation?

  • Tags Roadmap for Value Creation, Value Creation

Importance of Value Creation

Nowadays, businesses are more than just companies focused on making profits. They’re creating legacies, they are creating solutions that can improve people’s lives and change the world. The purpose of any business is to create value for customers, investors, and employees. Businesses solve their customers’ problems, that’s how they provide them with value. 

Creating value for customers will help you to sell more products, you can use the same tactic for shareholders as well to benefit more from future operations. You can open up numerous doors for yourself when you’ll have clearly defined steps for value creation.

Look at Value Creation More Broadly

Nowadays, value creation is related to almost everything, like brands, ideas, people, and innovation. So when it’s broadly defined, it can be seen as a better management tool and not for example just as a financial measure of business performance.

When you are creating value for your customers you’ll be able to provide them with products and services which will be very useful for them. While creating value for investors mostly involves delivering high returns on their capital consistently.

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Planning Value Creation Roadmap

First of all, you’ll need to document market requirements, understand more about specific aspects that have emerged there, and how you can use them to your advantage. You’ll need to have a better idea about your products and services as well, like their quality, usability, reliability, etc. Below you’ll see important aspects that will help you to develop a successful value creation roadmap.

Create Specific and Measurable Value Drivers

Value drivers will help you to see all the important aspects of value creation and how they are connected to each other. You can even create a “value driver tree” to see the chain of events that eventually lead you to increased business value. Also, keep in mind that a typical value roadmap always contains these three measures of value, which are growth, cost reduction, and risk mitigation.

Set Realistic and Achievable Targets

In order to have a value-creation roadmap, you’ll need to define what are your high-level goals. Determine where your business is right now and where would you like to be in the future. Your targets should be very clear and realistic as well in order to plan every aspect better. Also, add target dates as well to ensure that you’ll have everything done for a specific time.

Monitor and Measure the Performance of the Value-Creation Plan

You’ll need to monitor each step that you’ll take. See how you are performing and how your value creation plan helped you so far. Check the results after each stage that you’ll be overcoming. Share your plan with your team and always add feedback to make sure that everything is up-to-date.

Understand More About the Value Gap Analysis

Also, keep in mind that you’ll have to do a value gap analysis as well. Determining the value gap is important because sometimes customers expect different products or services, but then have to deal with a completely different reality. There are numerous occasions when products are thought to have better value, but the actual value is totally different.

Dealing with the value gap will help you to have more successful campaigns. You won’t be afraid of underperforming or not performing at all. Conversion rates will be higher and you will have better chances of growing your user base as well.

Executing Strategies for Value Opportunity

Think about at least nine or ten key opportunities, and think about specific programs to drive actions. Link your objectives and actions to the value chain. Develop objectives and strategies that will be able to support your value drivers. Write down everything in more detail.

A list of Supporting Competencies

In the list of supporting competencies, you can include every skill, technology, or process that you can use. Creating a roadmap isn’t easy but with an open-minded team, you’ll be able to clearly see the value that you are providing your customers with or could provide them with in the future. Also, it can become the foundation of your company’s strategies. 

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How to measure Customer Loyalty?

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How to measure Customer Loyalty?

  • Tags Customer Loyalty, Measuring Customer Loyalty

Importance of Measuring Customer Loyalty

It’s one of the most important topics that companies should be interested in. However, there are a lot out there who don’t even know their rate of churn or retention. Not measuring the ROI of customer experience, upsells, cross-sales, or other metrics of customer loyalty could have detrimental results.

Measurement of important aspects is crucial. You should know why your customers like you, and why they are loyal to you. Loyal customers help you to achieve your business goals and help you to progress. There are several essential metrics that you could benefit from.

Customer Retention Rate

Customer retention is about the clients who remain loyal to you. They are very valuable and can help you to gain more customers. In order to determine more specifically what’s your customer retention rate, you can use a formula: [(E-N)/S] x 100 = CRR.

First of all, identify the specific time frame that you’d like to study. S is related to the number of customers that you had at the start of the specific time period. E is about the number of customers that you had at the end of that time period. N should be the number of customers that joined you during that time.

Using this formula will help you to determine what’s your customer retention rate, you can do it on weekly or monthly bases, or even daily depending on what kind of company you have and how frequently you go through changes.

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Customer Lifetime Value

You need to know what the average customer is worth to your business, and there is a formula that could actually give you more clear answers – Customer Lifetime Value = Customer Value X Average Customer Lifespan.

First of all, you need to know what’s the average purchase value and then multiply that number by the average number of purchases, this way you’ll determine the customer value. Then you can multiply customer value and average customer lifespan to discover what’s your customer lifetime value.

Net Promoter Score

Net promoter score is important in order to measure customer satisfaction levels and loyalty, and most of the majority of Fortune 1000 always pay great attention to it. The formula for Net Promoter score is – Net Promoter Score = (Number of Promoter Score/ Total Number of Respondents) – (Number of Detractor Scores/ Total Number of Respondents).

First of all, you need to do a survey. You can do it via social media polls, and emails as well. You have to ask your customers “On a scale of 0-10, how likely are you to recommend us to your friend?”.

Once you collect the answers, divide them into categories. Promoters will be people who scored 9 or 10, passives will be the ones who scored 7 or 8, and detractors are the ones who score between 0 and 6.

Customer Satisfaction

Understanding more about customer satisfaction (CSAT) is very important to have a better idea about customer retention as well. You’ll have a better understanding of the customers and the experiences that they had while interacting with your business, service, or product.

You can do the survey again and ask the customers simple questions. For example, ask them how would they rate their satisfaction with your company, your service, or your product. And then provide them with possible answers, like very satisfied, satisfied, neutral, unsatisfied, and very unsatisfied. Every response will have its own number value.

Customer Effort Score

With a customer effort score (CES) you’ll be able to determine how easily reachable you are for your customers, and how much time and effort they require to use your product and service or find the information that they need.

You can do the surveys again to understand more about this topic, but you’ll need to do it immediately after they purchase certain products from you or use your service to understand everything straight away. A high CES score is a good indication that your customers can reach you easily. It’s going to have a positive impact on your business.

Engagement Rates

When customers have high engagement levels they are most likely to stay loyal to your brand. You can monitor engagement rates by survey responses. Also, you have to know basically how frequently and well your products are used by your customers.

You can check your social media platforms as well to see the number of likes, comments, and shares. See who are more active users, some of them might be active on daily bases, but there are some customers who don’t appear on the radar frequently but are always following you.

Understand More About Your Customers’ Responses

Going through these metrics will help you to measure customer loyalty better. When you’ll ask questions during surveys, delve more deeply into the responses that you’ll be provided with.

If you’ll ask them if they are satisfied with your services and then they’ll answer yes/no, ask them why, or why they decided to give you a specific score. In this case, besides the statistics and actual facts, you’ll be able to get a better understanding of many important topics and will see once more, what your customers really think about you.

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What is MVP in Product Management?

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What is MVP in Product Management?

  • Tags Minimum Viable Product (MVP), MVP in Product Management

The Concept of Minimum Viable Product (MVP)

MVP is a version of the product that has enough features to be used by early customers, who will be able to give you feedback for future product development. Focusing on MVP can help you to avoid unnecessary work, and be more focused on improving your products based on customers’ feedback.

MVP can help you determine what’s the demand for your product and generally how your idea will be welcomed on the market. Before putting too many resources into your work, you can use this solution to evaluate how much success your product can bring you.

The Purpose of Minimum Viable Product (MVP)

MVP can serve lots of purposes for your company. Your product team would need to use it when they plan to release the product on the market as quickly as possible. Also, when they want to test the product to get real feedback from customers and to understand generally what your target audience is thinking about it. After that you can decide how much you’ll invest in your product development process and what steps will you take next.

MVP in Product Management

MVP and product management have a very special connection. MVP is a solution that is cost-effective for you and gives you the possibility to see the bigger picture when it comes to your product.

Because of so many aspects that it can help you with, proper MVP product management is very important. In order to take successful steps, you need to focus on a couple of important topics.

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Start with Market Research

Before you start working on MVP you need to know more about the market. This information will help you to define important aspects of the product and will lead you to better decisions and results.

You can do the surveys to get as much information as possible. Also check the competitors, and what they offer to customers and determine how your product ideas can stand out.

Define Your Target Audience

Understand who could be interested in your product. Also, determine what needs and requirements would your product be fulfilling, and what is your product’s true value and purpose.

For example, if you want to create an app for fitness enthusiasts or veterinary technicians you need to consider what they really want from you and from your app. Also, how they want their data to be tracked, or what are they most interested in. You need to have answers from your audience to take the next steps.

Listen to Your Users

You shouldn’t guess what’s the need of your customer, in this case, they can tell you directly what they really think. Get feedback about specific aspects of products, they might even give you new ideas about how to improve the product. Compare different options, like different designs or features to determine which option seems to garner more attention from your customers.

It might seem early for you but try to work a bit regarding value proposition as well during this whole process. You’ll need it to show your customers why they need to choose your product.

Start with the MVP Roadmap

In order to reduce risks and make the whole process less chaotic, you’ll need to plan everything. Create a plan where you’ll have a detailed description of what you want to achieve with MVP. Create a detailed product roadmap that will have all the necessary aspects that are related to your goals.

Keep the Focus

Creating a product that will be perfect is something that most companies would be interested in. But it’s important to not lose focus and be concentrated on aspects that need more time and resources. The main thing has to stay the main thing, it’s a crucial part.

In this case, your goal shouldn’t be to create perfection. You need feedback and testing of your assumptions in order to improve your product. Just find the most important aspect and focus on it.

Brainstorm to Find the Best Solutions

Brainstorm to find the best solutions. Every product needs specific ways to improve, so it’s essential to have a better understanding of its unique features. Be flexible and learn from your mistakes. Try to find solutions that will help you to improve your product according to market needs and your future goals.

Acknowledge the Power of Product Design

Most of the time MVPs are very minimalistic, but it doesn’t mean that you should put less effort into the design. You can improve it in the future but still, the first impression decides a lot. You need an MVP which will be seen as something great for your customers.

You need to know what are the most important details, from a user and business perspective as well, in order to understand what kind of design would be most suitable in certain cases. Well-designed products are more competitive on the market and have better chances of success.

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How to do a Competitive Market Analysis?

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How to do a Competitive Market Analysis?

  • Tags Competitive Market Analysis

Importance of a Competitive Market Analysis

Conducting competitive market analysis helps you to understand more about your major competitors, like what are their products, how successfully they sell, and what are their marketing tactics.

You’ll have a chance to ward off your competitors and implement stronger business strategies. You’ll know more details about your environment and how you can become the leading company in your industry.

Benefits of Competitive Market Analysis

There are several factors that you should know about. Keep in mind that Competitive Market Analysis can help you identify your products’ unique features and value. You’ll understand what your competitors are doing right and where they are wrong.

Also, you’ll learn through customers what certain products are missing which will generally help you to improve your business and measure your success better.

Determine Your Competitors

First of all, you have to know who are your competitors and gather accurate data about them. No matter how similar some businesses are, using certain strategies the same way isn’t beneficial for everybody.

You can “divide” your competitors into two groups, like “direct” and “indirect”. Indirect competitors will have similar products to yours and will be in the same geographical area, while indirect competitors will have products that satisfy the same customer needs as your products.

For example, Adidas and Oxford are in the same industry but their style is totally different, so you have to determine links between different companies, see the unique aspects of brands and determine what kind of competitors they are and how can you overcome them.

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Determine the Products of Your Competitors

Products and services are the core of any business, so you have to know more details about them. Try to determine their pricing strategy, find out if they are working on volume sales or one-off purchases, and what is their market share.

Knowing the target audience is very important. In this case, you have to determine what kind of target audience they have, and what are their customers’ needs and requirements. It’s interesting to know how they compare themselves to competitors, why they think that they are different, and how they showcase those traits. Also, check how they distribute their products or services.

Research Your Competitors’ Sales Tactics

You need to know more about your competitors’ sales tactics and what kind of results they have. It’s a little bit tricky task but you need to ask the right questions to get the right and useful answers.

See what their sales process looks like, and what channels they use for it. They might be operating from numerous locations, check these kinds of aspects as well, and evaluate their growth. You could use their success stories to strengthen your strategies, but you need to know about their losses as well.

Check Any Additional Tactics They Are Using

Check your competitor’s prices, and what they offer to their customers. They might be doing discounts frequently, or using giveaways. Determine why they have specific prices. For example, if your product has better quality or better features you can sell it at a higher price, but you have to explain to people why.

Understand why customers are interested in you and in your competitors. Sometimes some customers might stay with you, then with your competitors, and vice versa. You need to understand more about specific reasons. Also, they might be more active on social media platforms, have more visibility for a wider audience, might have used viral marketing, etc.

Competitive Shipping Costs

While conducting a competitive market analysis look through shipping costs as well. Most of the customers aren’t happy with the expensive shipping costs. Nowadays, customers are happier when they don’t have to pay money for that at all and often prefer to deal with brands that have free shipping.

If most of the competitors have free shipping think about that option, at least try to not have too much shipping price. Also, if you don’t feel comfortable with free shipping, try to find different solutions, like holiday discounts or giveaways on social media platforms.

Analyze How Your Competitors Market Products

In order to understand more about their marketing strategies, see if they have a blog or any e-books. They might be offering customers videos or webinars as well. See if they have an FAQ section and what kind of visual content they have. Also, check if they have case studies and generally what online and offline advertising campaigns they have.

Check Your Competitors’ Content Strategy

In order to understand more, check how frequently they are posting their blogs, you can do the same with e-books as well, it depends on what you’ll understand after you’ll analyze how your competitors market their products.

Check the quality of their content and generally how accurate it is. See if their content is free and available for everybody, understand who is writing the content, and generally if it’s interesting and how much in-depth it really is.

Understand What Technologies Your Competitors Use

Understand more about technologies that are used by your competitors. It could help you to become more productive as well. Like numerous companies are using digital solutions right now in order to improve themselves and their services, so it wouldn’t be a surprise to understand that, for example, a company that is well-known for excellent customer service, is interested in the customer service software.

Observe How They Promote Their Marketing Content

Check the content again and see approximately how many keywords are used by your competitors, and how many internal links are they using. They might be using certain keywords which are successful for them but you haven’t used them yet.

Check which social media platforms are frequently used by their customers, what content of theirs is most liked by the target audience and generally look at more details of their accounts, like the number of followers, frequency of posting, etc.

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