5 Product development rules, that can help your product succeed within AfCFTA.
As AfCFTA has taken off and new opportunities have emerged in product development and investment, due to Trading. It is important to use proven strategies, that can assist a business during product development. This will help to prevent the failure of a product when it is finally launched.
Five of these Strategies are listed below
1. Conversation around Willingness to Pay. It’s important to have a conversation around Willingness to pay with early prospective customers. This is important as it will not be nice, producing and spending investment funds on products, that customers are not willing to pay for. It will also help manage the features and design of the product. This is important as the brand would discover, if too many or few features are attached to a product and if the customers are ready to pay, the set price.
2. Customer Segmentation based on Products Configuration. Products configuration involves the features that are added to a particular product, or even the contents it’s made of. It is always good to build multiple versions of a product to take care of various customer segments. It is better than building a one-size-fits-all product. It could be in terms of volume, memory size, heat capacity, effectiveness duration, age range, etc. Product configuration can also be assisted by product bundling to help grow sales and improve customer experience, with the brand. Bundling a product with others that are complementary ,gives more visibility, price discounting, and increased difficulty, for competitors product replication
3. Pick the best Pricing and Monetisation model for your products. It is important to price your products well, to make the whole business profitable. Various pricing models exist and you can research them, for knowledge acquisition. Monetization can also help get additional revenue through channels like maintenance, support, and accessories. These are more ways of making more revenue and also dropping the product acquisition cost. But all of these will be based on good product design. All of these have to be factored in,while designing this product ,to suit the AfCFTA. Your pricing strategy should be able to look ahead. This will enable your brand maximize gains, in the long and short term.
4. Ensure you have a balance between price, value, cost, and volume. This is essential because you are developing a product that, its profitability will be based on good unit economics. This will ensure that your price is good enough to carry the value, you want customers to get in return. And the volumes will help reduce your manufacturing cost. A business case around these four factors, will help understand the realities of the market and enhance ,a product success plan.
5. Continous Study of Customer Behaviour. It’s important to do this ,either you are doing B2B or B2C within AfCFTA. SMEs and large companies must study this, because they are dealing with people, observe their psyches and emotions and take effective actions.
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