Increase business revenue with an innovation strategy
Innovation offers many ways to increase your business revenue. A well-managed innovation strategy can increase the sales of products or services. An increase in sales can result from new products or services, as well as the introduction of new features for existing products or services.
The increase in business income may be due to:
- New customers who are attracted to your innovative products or new product features. These new customers can also purchase other products and services from your company.
- Existing customers who buy your new products in addition to the products they previously bought. This situation creates stronger relationships with customers while expanding product sales.
- Existing customers who start buying more frequently due to new product innovations. Your new product features may cause existing customers to consume more products or purchase more of your products as “replacements” for products previously purchased from a competitor.
Promote your business as an “innovator” and show the market how your products offer unique benefits. Look for new product features that have the potential to become the “must have” features in your market. Explain to people why these new product features are so valuable; provide examples. Establishing yourself as an innovator in your market fosters your customer loyalty and produces valuable word-of-mouth ads.
Let us consider an example. In a particular market, certain people have not purchased a particular type of electronic device due to perceived problems or confusion with the operation of the device. However, when a new company develops a version of the device with an innovative user interface, these people buy the product from the new company because of the ease of use. This new device with the new user interface performs the same basic function as other devices on the market, but the “must have” feature is the user-friendly interface. In this example, the innovative product brings new customers to market and increases revenue for that company.
When developing an innovation plan, be sure to consider opportunities to increase business revenue with both existing and new customers. Also, consider how innovative products (and product features) can attract new customers who have not purchased products in your market before. Implementing new product features that meet unmet market needs is a great way to increase sales.