Launching a New Product? Key Insights for Success
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Chapter 1: The Importance of a Thoughtful Launch
Bringing new products to market is an essential aspect of entrepreneurship. However, the method and timing of your launch are critical factors that can determine success or failure. Take, for instance, the infamous 1985 launch of New Coke, which many Coca-Cola enthusiasts refer to as "Black Tuesday."
The company aimed to revamp its classic recipe to appeal to younger consumers, especially during a time when Pepsi was gaining popularity. Despite positive taste test results, the actual rollout faced numerous challenges. Taste tests do not accurately capture consumer behavior, which typically involves more than just one sip. Loyal Coca-Cola drinkers, particularly in the southern United States, felt a deep sense of betrayal; for them, Coca-Cola was part of their identity, while Pepsi was considered a drink for outsiders. The backlash was overwhelming, prompting Coca-Cola to revert to its original formula within three months. The New Coke saga serves as a cautionary tale in boardrooms worldwide about the risks of a poorly executed launch.
At my company, we recently introduced Jotform Sign, and I’d like to share some key insights from that experience.
Section 1.1: Evaluate Your Intentions
It’s easy to become enamored with the latest trends. As competitors chase after what's popular, the temptation to follow suit can be strong. However, it is essential to critically assess whether a new product will genuinely benefit your business and your customers. Are you interested in it simply because it’s trending, or does it align with your company’s core mission?
While e-signatures have surged in popularity since the pandemic, our decision to launch our own product was rooted in practicality. E-signatures complement online forms seamlessly, and we recognized that offering them would streamline workflows. Jotform's mission has always been to simplify lives, and this new addition was a natural fit.
Section 1.2: Understand the Market Landscape
Before advancing beyond the concept stage, it’s vital to grasp the market dynamics. Is there a genuine demand for your product? Who are your competitors, and how will your offering stand apart? Doug C. Brown, a member of the Forbes Council, emphasizes that failing to assess market acceptance is a common pitfall for businesses. He references New Coke as a cautionary example, noting that many products from both new and established companies end up failing.
Our initial testing of what eventually became Jotform Cards revealed disappointing results: users who received these new card-style forms were 30% less likely to engage actively. While difficult to accept, this feedback was invaluable. We learned that our users desired more options, which ultimately allowed us to grow our active user base by 20%.
Chapter 2: Embracing Imperfection
Launching a product as an established company carries inherent risks. Unlike new companies, which may fly under the radar, established businesses face scrutiny for their missteps.
Striving for perfection is admirable, but it’s essential to recognize the difference between aspiring for greatness and pursuing an unattainable ideal. While you want your product to be exceptional, it’s unlikely that it will achieve perfection upon release. Aim for "good enough" and then launch it into the market.
I take pride in Jotform Sign, but I understand that this is merely the first iteration. We have much to learn, and history has shown that improvement comes with time.
Section 2.1: Product Positioning Essentials
Product positioning refers to how a product fits within the market and distinguishes itself from competitors. It defines your target audience, their needs, and how your product fulfills those needs.
Without a clear positioning strategy, your product may be perceived as just another option in a saturated market. For instance, Jotform Sign could easily be seen as just another e-signature tool among many. If you don’t define the narrative, the market will do it for you, and you risk losing control.
To effectively position your product, consider these three questions:
- Who is the target audience?
- What functionality does the product provide?
- What sets it apart from existing options?
Jotform Sign’s unique feature is its ability to automate entire workflows by integrating with our other products, such as forms, approvals, and tables. We ensured that our messaging highlighted these distinctions during the launch.
Ultimately, launching a new product is a complex endeavor, and even the most promising offerings can falter without proper strategy. Equip yourself for success by preparing thoroughly.
Thank you for reading. Connect with me on Twitter for more insights.