Innovation provides many ways to increase revenue in your business. A properly managed innovation strategy can increase 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.
Increased business revenue can result from:
- New customers that are attracted to your innovative products or new product features. These new customers may also purchase other products and services from your company.
- Existing customers who purchase your new products in addition to the products they previously purchased. This situation builds stronger customer relationships while expanding product sales.
- Existing customers who begin purchasing more frequently due to the new product innovations. Your new product features may cause existing customers to consume more products, or buy 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. Tell people why these new product features are so valuable – give examples. Establishing yourself as an innovator in your market builds your customer loyalty and produces valuable word-of-mouth advertising.
Let’s consider an example. In a particular market, certain individuals have not purchased a particular type of electronic device due to perceived problems or confusion with operating the device. However, when a version of the device with an innovative user interface is developed by a new company, these individuals purchase the product from the new company due to the ease of use. This new device with the new user interface performs the same basic function as other devices in the market, but the “must have” feature is the easy-to-use interface. In this example, the innovative product brings new customers into the market and increased revenue for that company.
When developing an Innovation Plan, be sure to consider opportunities to increase business revenue with both existing customers and new customers. Also, consider how innovative products (and product features) can attract new customers who have not previously purchased products in your market. Implementing new product features that satisfy unmet needs in the market is a great way to increase sales.