Technology

How to master your product funnel and stay ahead of rivals

idea-direction

Summary

  • Hardly anyone gets into business just for fun.
  • There is often an ambition behind creating an entity that runs with a product or service.
  • An entity should only be considered a business if it can provide value consistently for which it is compensated to the point of break-even at least.

Hardly anyone gets into business just for fun. There is often an ambition behind creating an entity that runs with a product or service.

An entity should only be considered a business if it can provide value consistently for which it is compensated to the point of break-even at least.

Therefore, any business owner should have this mindset from the get-go and steer away from common misconceptions that deflect from what needs to be done.

Small and medium-sized enterprises (SMEs) are the heartbeat of the economy.

Unfortunately, they pick the short end of the stick when it comes to accessing masterclass information that would help them drive their businesses forward by maximising desired outputs at each stage of the product funnel — from acquisition, activation, retention, referral, and eventually revenue.

A large percentage of the investment purse for the five-part product funnel ends up in the coffers of Big Tech — Amazon, Apple, Facebook, Google, and Microsoft whether or not business objectives are met. Businesses are angling for attention daily on the different platforms in the hope of closing a sale.

Unfortunately, a majority of these efforts go to naught as it is mostly on the back of a spray and pray model crippled by limited budgets for experimentation. The big five, however, court the enterprise-class heavily, directly, and through the agency network. They take time to help them figure out how to best leverage the platforms, to great effect.

SME operators cannot abscond what is central to making sure the business not only runs but thrives.

Granted, Big Tech has made effort to provide information through blueprints, frameworks, best practice showcases, and even certifications but in the absence of the support that large enterprises get and the budgets, they enjoy, SME operators must discover what mix of strategy and platforms works for them.

Starting from the basics of understanding user psychology, to the lay of the land around various tools that help with the collection, visualisation, and interpretation of data across the entire sales cycle, to being agile in response to what the data says. This is important because many products and services are heavily commoditised. With little to no differentiation, the battle heads to pricing, with the result being margin attrition.

What works for the competition may not work for you.

Discovering the secret sauce for your business has never been more important and is the single most defensive moat in any industry, product, or service vertical that your business pursues.

Njihia is the head of business and partnerships at Sure Corporation | www.mbuguanjihia.com | @mbuguanjihia