“It’s about knowing what your Customer wants and when he wants it”
Is your idea the solution to a contemporary problem? Can your idea be converted to a useful product? Do you think people will pay for your product over and over again? The first step in building a sustainable business is the transformation of the idea into a meaningful product or service, which is accessible and acceptable to every potential customer. The 3 point business booster – M3, helps you to jot down important parameters that you need to consider while devising a business strategy.
The Essence of 3 Point Business Booster
MUST MASSES MULTIPLE
As an entrepreneur, making that perfect product or service involves massive cash burn, time and energy. Thus, in today’s competitive and connected business environment it becomes all the more important that the needs of the target customer segments dictate your product development and product positioning. Building a scalable and profitable business which has a mass appeal, narrows down to capturing and retaining the maximum market share, as well as making repeat or cross sales.
Ultimately the customers want the products which solve their problems and fulfill their unmet needs. Perfectly developed products cater to the needs of the target segments; thereby creating customer loyalty.
WHY The M3?
These 3 points are to judge the viability of the idea as a business. By using this approach the startup can construct business plans and venture on to the journey of achieving their ambitious business goals. The concept behind this framework is to provide a quick and structured analysis, which starts with your idea and goes till the formation of the ultimate product catering to the potential audience. The success of the business will pivot upon the frequency of repeat and related sales.
The M3 framework studies two primary aspects of a business- 1) ‘what is offered (Product/Service)’ 2) ‘to whom it is offered (Customer)’. This framework assists in a quick overview of the business viability.
For each targeted customer, the product/service becomes a ‘must have’ only when it serves a unique purpose, fulfills a need or cures a pain. It should be remembered, people don’t buy products and services, and they pay for solutions and experiences. It is essential that when playing in saturated markets the expanse of your business will be a function of product differentiation and personalization you create, and the customer emotions you stoke.
The Biggest fishing companies don’t catch fishes in a pond, they go for the ocean. Similarly, an idea itself cannot make you rich, it’s when you hook your idea in the fish rod and sail to a blue ocean. In the highly competitive business spaces with well connected and informed customers, blue oceans are seldom found; more often they are to be created. ‘Finding the one common and prevailing unmet need’ of a substantial population becomes the key in creating that blue ocean.
The fish then comes to the rod.
The critical factors that can enable an entrepreneur to accomplish this are:
• The focus should be on the Customer Segmentation and Targeting
• Deep Market research to identify serviceable opportunities is pivotal
• Invest in R&D regularly to improve your unique selling proposition
• In the end, the customer experience & delight is the paramount principle for your product’s success.
‘Multiple’ denotes the frequency with which a product/service, or/and related offerings are purchased from the seller. Usually, high repeat sales of products and/or associated products, yield better profits. It isn’t necessary to resell the product to the same customers, but it can also work in the form of after-sales operations or services, or purchasing additional products for the ideal or upgraded performance of the product.
Generally, low ticket size products should have high frequency and vice versa; in these cases, profitability is achieved by charging premiums fetched by product differentiation and personalization for the target segments.
The supply of goods or services from an organization depends on what kind and which demand prevails in the customer’s psyche. Customer satisfaction here plays an integral role since the cyclic process start pedaling, only if customers want to come back to you.
This model covers the basic checklist that every aspiring or present entrepreneur should work upon. The model crowns ‘Customer as the king’; which holds true in every stage of transition of an idea to a company. Ideas seem perfect inside the head, but they should be altered on the basis of what works in the real world. The purpose is to evaluate the true value attached to the idea which is delivered to the targeted audience in the form of a product/service and assess the scope of its use.
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