Ready to create a digital product? Awesome. Got questions? Of course, you have! But be warned: at icapps, our experience tells us that certain beliefs are clear signs you don’t have a digital product strategy in place. In this series of blog articles, we explore these signs and explain how the right strategy can set you on the path to success. Here's the first sign your business has forgotten about its digital product strategy.
1. You feel like you’re spending a lot of money on your digital products without any return
Does it seem like you’re not seeing a return on the money you’re spending on digital products? This is the first sign that you lack a digital product strategy. You might be thinking too big instead of thinking about what your business needs. Digital products don’t need to be expensive. The right product could cost next to nothing depending on what you want to accomplish.
There’s no need, to begin with, for a complicated, expensive, and time-consuming digital product. In fact, we think you’re best starting small if you have doubts about entering the digital world. When you start with a minimum valuable product (MVP), you can always expand, update and upgrade later. A clear digital product strategy allows you to investigate and outline a variety of improvements and expansions for the future.
Nonetheless, a lot of companies tend to think big when it comes to digital products. And a lot of app developers that create digital products tend to sell a lot of features that aren’t really necessary. It’s no wonder people feel digital products are expensive.
For example, if you just want to establish an online presence for your business, you might only need a simple website, like a business card. Add your phone number, address, and opening hours, and you’re set. Perhaps you just want to let people know the answers to certain questions that come up again and again. Is a chatbot the best solution? Possibly, but it will cost a lot. Especially when you consider the alternatives: adding the information to the relevant pages of your website or creating an FAQ page.
We know these solutions aren’t as cool as chatbots. But they are considerably cheaper. And there’s a good chance they’ll be more convenient and effective for your customers.
Set your priorities right
If you want to spend lots of money on a digital product, you’ll find the sky’s the limit. So, instead of looking for a big price tag or a list of cool but unnecessary features, we recommend you think about what you want your digital product to do. Does it need to do everything that’s being sold to you? Are you struggling to justify spending cash on a certain feature? Have you asked yourself what your customers and staff members really need? Or what do they want? Do you know what is most important for your business?
Focus on what’s important. There are plenty of ways a digital product can benefit you:
• attracting customers
• generating turnover
• reducing costs by automating processes
• raising customer awareness
• creating stronger customer relationships
Are you still concerned about the investment? There are other possibilities to consider. You could invest in a digital product that will pay for itself—or even deliver profits—over time. An app that people pay for might be the first idea that comes to mind. But it’s not the only solution. Free digital products that draw people to your primary products or services are also possible. KBC did exactly that with its Goal Alert.
Alternatively, there are digital products designed to make your services easier to use. Healthcare companies are using automation products that allow their clients to send in claims digitally. Employees at other companies can submit costs and receipts digitally. It saves time. It makes employees happy. And we all know the benefits of happy employees.
Crunch the numbers
We believe there’s another reason why people tend to think digital products are expensive. Without a digital product strategy, the final costs are going to be difficult to correctly anticipate, and the time it takes to build the product will only increase. This means you’re investing money in a product that is not even active, let alone generating profit. You won’t know for sure how long it will take to go live. And without a digital product strategy, you’ll be wondering whether it will ever result in profits. When you stir all these factors together, you have the perfect recipe for panic and concern. And we are all good at panicking and being concerned about investments that go nowhere.
We are sure you understand why it’s advisable to start calculating what your product will cost before you commit to it. Of course, the figure may not be perfectly accurate in the long run. Especially as you’re almost certainly going to make changes to your product during the building process. But at the very least, you’ll have the insight, plus a strategy that clearly shows what you’re investing in, why you need it, and the benefits it will deliver.
Do you have questions about Digital Product Strategy? Maybe you’re wondering whether it will help you with an idea your organization is uncertain about pursuing. Drop in for a chat, a cup of coffee, and an obligation-free opportunity to look at the options together.