Having a diverse range of products or services is often considered a strength. It allows you to cater to different customer needs, diversify revenue streams, and mitigate risks. However, spreading yourself too thin can also be a drawback, leading to diluted brand messaging and inefficient resource allocation. This brings us to a critical question: What should be your lead product or service? The one that you push the most, that represents your brand, and that you want to be known for. Making this decision requires a strategic focus and a deep understanding of your business landscape. Here’s how to go about it.
Assessing Your Portfolio: The Starting Point
Before you can decide on your lead product or service, you need to have a clear understanding of what’s in your portfolio. This involves evaluating each offering based on various parameters such as profitability, market demand, and alignment with your brand’s core values. Here are some steps to help you assess your portfolio effectively:
- Profit Margins: Look at the profitability of each product or service. Your lead offering should ideally be one that brings in substantial revenue.
- Customer Demand: Assess the market demand for each offering. High demand often indicates that a product or service could be a strong contender for the lead position.
- Unique Selling Proposition (USP): Consider what sets each product or service apart from the competition. Your lead offering should have a strong USP that can be easily communicated to your target audience.
- Resource Allocation: Evaluate the resources required for each offering, including time, manpower, and capital. Your lead product or service should be one that you can sustainably support.
Using Data to Make Informed Decisions
Once you’ve assessed your portfolio, the next step is to validate your findings with data. This could involve customer surveys, market research, and even A/B testing to gauge the potential success of each offering. The goal is to collect as much relevant data as possible to make an informed decision. For example, if customer surveys indicate a strong preference for one particular service, it might be wise to focus your efforts there.
The Final Call: Making Your Decision
After gathering all the necessary information, it’s time to make your decision. Remember, choosing a lead product or service doesn’t mean neglecting your other offerings. It simply means that you’ll be focusing more of your marketing and development resources on this particular product or service. Once you’ve made your choice, align your business strategies— from marketing and sales to customer service—around this lead offering. Make it the centerpiece of your brand communication and the focal point of your customer engagement efforts.