Today’s show will demonstrate how to create new markets through new products, attract new customers to an existing product, and convince current customers to buy more of an existing product. This is a deep dive on product strategy. To follow along, download our 10th annual workbook, How to Make Your Number in 2017. Turn to the Products phase of the corporate strategy on pages 72 – 77 of the PDF.
Our guest is Sudhakar Ramakrishna, the Chief Executive Officer of Pulse Secure. A leading provider of secure access and mobile security solutions, Pulse Secure serves enterprises and service providers. As companies increase productivity through the adoption of cloud and an ever-mobile workforce, Pulse Secure provides the security to safeguard your company. Watch as Sudhakar demonstrates how to attract new customers and how to convince current customers to buy more of an existing product.
Why this topic is important? Not all revenue growth is equal. Some revenue growth creates more enterprise value than others. Revenue growth that comes from increasing market share for a product does not create much long-term value because competitors can easily retaliate. Revenue growth driven by increasing prices of certain products comes at the expense of the customer, who can retaliate by buying less and seeking substitute products. Revenue growth driven by products that create new markets, attract new customers, and convince customers to buy more is the most valuable type of revenue growth.
Watch as we discuss the different types of revenue growth and which revenue growth is worth more than others. We talk through the approach when determine whether a company should create an entirely new category or participate in a category within existing category through innovation. New category creation has very different cost dynamics. Different customer acquisition costs and strategic time horizons. Watch as we discuss what goes into this decision for a CEO.
All companies have portfolios, not just products, and those products are on different life cycles. We discuss how the strategy is going to be a little different between products so this requires dynamic reallocation of people, money, and time, depending on where this portfolio is in its life cycle and the products within it.
Today’s show demonstrated how to create new markets through the development of new products. If you would like help, visit The Studio, SBI’s multimillion dollar, one-of-a-kind, state-of-the-art executive briefing center. A visit to The Studio increases the probability of making your number because the sessions are built on the proven strength and stability of SBI, the industry leader in B2B sales and marketing.