By David Townsend, Jun 16, 2020
As much the current pandemic has turned a lot of the business & social world upside down, many companies have been fortunate enough to operate in a space that hasn’t been too drastically affected by Covid-19 & it’s devastating ripples. This extends far beyond the “essentials” bracket and applies to many businesses in the tech landscape as well. Whether it’s a Software as a Service (SaaS), Software with a Service (SwaS), or Platform as a Service (PaaS) company; the keyword is service, and where there’s service, there’s work that’s being done for, or help that’s being given to, someone.
This article identified thought provoking changes your business can make, in order to continue to service clients and maintain cash flow during times of scarcity and uncertainty.
7 Minute Read
Adapt Your Value Prop
The situation we find ourselves in has forced each and every business to comb through it’s value offering with a fine-tooth comb in search of ways to adjust, stay flexible and traverse the rugged landscape we find ourselves in.
Flexibility in a market that has sharply turned bare, is essential to a company’s ability to stay relevant and continue to add value to customers and stakeholders. This will likely require a re-evaluation of your value proposition, along with the various components that make up it’s composition. There may be elements of your value proposition that are a must, that solve a pain point that cannot be ignored or done without; and that may be central to what attracts a large portion of your customers. But in order to create a well-rounded product or service with all the frills, you may have parts of your value proposition that can be termed as “nice to haves”. Some of these could possibly be what sets you apart from competitors in the space, and have assisted in attracting a different bracket of your customer base. If you can clearly identify these, and create a separation that ensures you’re able to provide what’s needed, while highlighting outside of that what can be presented as additional options where desired, you’ll be able to adjust your cost structures accordingly, and in some cases become relevant to a market share whose financial reach you were out of beforehand.
Cut those costs
With times being as excruciatingly tight as they have been due to COVID-19’s effect on economies and the array of contributors to it, sometimes what is needed is a functional motor effectively connected & packaged with a seat on wheels, along with just enough fuel to reach the desired destination – instead of the nice-to-have, Harley Davidson version. Being able to present a distinct solution but through a much more cost-effective model, will open up an entirely new & different market portion than previously served, while also serving the same market portion that’s also invariably going through budget cuts & downsizing. Volume can then make up for what is lost when elaborate buying is much more scarce, and only what is vital becomes the priority & focus.
Some key cost-cutting measures could be as follows:
- Breaking up your overall offering into its separate elements
- Attributing a relevant cost structure to each individual aspect
- From there, taking forward, as a collection of options, rather than a fixed bundle, these various pieces as individual offerings
- Reducing margins where possibly to lower the overall cost structure for buyers
- Where affordable, incorporating a free proof of concept/ demo / trial period with the aim of demonstrating value that will ultimately increase the probability of retention /conversion.
Needs Versus Wants
For a business to exist to begin with, there needs to be a market for its product or service. But what ratio of that need-want scale makes up the demand for what’s on offer? And, is there a way to highlight what is a need against what is simply a want? There more than likely is, which can be the difference between the sink or swim of companies on either side of the immediate recession.
The above highlights ways in which making the necessary adjustments to your business model and operations could well lead to an increase in relevance going forward, all the while building customer loyalty and expanding customer bases. This is a big advantage, on either side of a crisis.