Failure for many is a scary thought. Failure is also inevitable to at least some degree. Failure is also a sign of you actually doing work. Failure IS part of the process. But what if we stopped using the term “failure” and started using the term “learning”?
You probably remember a few famous product failures from famous companies. Google Glass, the New Coke, and the Ford Edsel are just a few. I bet you did not know that Bubble Wrap was created to be funky wallpaper. Not sure who in their right mind thought of that one, but like I keep preaching, think outside of the box. That was a major flop, so they relaunched to insulate greenhouses. It was somewhat better but still another failure. It wasn’t until IBM used Bubble Wrap to protect computer shipments did it finally succeed. Slack was initially a technology used in gaming and pivoted into what it is today… a tool for communication mainly used in companies and organizations.
These stories of successful products that failed should make you look at failure as an opportunity to learn and adapt. If you are passionate, do not fold your idea…just yet. As founders it is your job to figure out your product market fit. If you did not figure it out right off the bat (which most companies do not) you can relaunch in numerous ways.
In one sense, no product is ever a complete failure if you learn the lessons about why it failed. Data analysis about the failure can vastly improve your customer experience with other products.
The first step is to obtain a deep understanding of all metrics pertaining to the product and execution of the launch. Google Analytics, is a great tool that you will want regardless on if you fail or not. It is also the perfect place to start when working to understand the failure of your product. Any workflow systems your company uses will also have strong insight on this matter. Finally, and most importantly, talk to your customers and target market to get feedback on the product. If you use distributors, talk to them, too.
If your analysis leads you to believe you still have a viable product, step two is to overhaul the product and/or the marketing. That’s where the hard work begins. It takes a lot of brainstorming, guesswork, and testing. Again everyone… this is when you go back to my blog post How to Plan a MVP.
Depending on the insight you gather from your data; here are possible relaunch items.
1.) Sales Pipeline
If your product is sold via direct sales people, there could be a flaw in your sales pipeline. Some signs that your sales strategy might need some help are:
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Your prospects still have the pain point your product can solve, it is just not being communicated effectively.
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Your prospect never said “No.” Most people are very busy at work and it’s easy to get sidetracked. If you gave up after six months, you might have to extend the sales cycle to twelve. This takes understanding the market. Some markets are quick to onboard; but industries like medical or enterprise can be a longer process.
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You’re not talking to the decision maker. This takes some detective work but be sure you are getting connected with the right people. Many companies have gatekeepers. Try your hardest to get to the decision makers.
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You are using the wrong sales channel. This is where you need to know how your customers purchase. Know you customer. Refer back to my blog on Know Your Customer
2.) Launch to a Different Market
Maybe your initial market is your wrong market. Think outside the box. What (at the core) does your product do? What is it capable of? What other problems can it solve? Then test and reiterate.
3.) Change Your Pricing
It very well be possible that your product is too expensive for your customer. It is also possible that it is too cheap. Many people associate low prices as being cheap and bad quality. If your customers most important buying decision is not price but maybe quality than it could be the low price deterring them.
If you find that it is too expensive see if it’s possible your ideal customer doesn’t need everything you offer, but would happily buy the components. Can you sell parts of your offering without the entire concept? Or try to bundle pricing in which you add other valuable products or services, then offer them a bundled discount. Sometimes the addition of services such as free tech support or extended warranties can boost lagging product sales, especially with technical products.
4.) Get a Mentor or Advisor
My recommendation is to do this step no matter what. When we’re too close to the action in our company, it’s hard to see various perspectives. An outside advisor with a fresh perspective and no competing agendas can quickly see things you and your team might miss. They can also give your company credibility. If your company is in healthcare for example, have a medical advisory board not only helps guide you through product development and updates but if they are respected professionals in the industry you will gain trust with your market in a much fast method.
5.) Free or Discounted
I do not recommend this method for most companies but for a few it works great. 2 sided market places are a great example. The only way your customer gains value is because of the other side. You need to decide which side of the market is vital to onboard first (the only in the least need for most cases). Then offer them a free subscription as you learn their needs and pain points better. It will also give you time to onboard the other side of the market.
There are many other way to relaunch a product but these are typically the strongest methods that I would first explore.
