Steve Blank - Growth via the physical channel

Growth is the next big hurdle. A customer that was won, who stays faithful through nice gestures and offers, can also become a bigger customer. You can also expand the customer base by turning the right screws. Decoupling products, selling ancillary products, cross-selling, discounts on additional purchases... are four of the key pillars to success.

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When we had finished a useful range of products with alugha, we absolutely wanted to sell everything together in one package. As a result, clients kept telling us that they did not need this or that feature or said they needed the player but not our hosting, or the player and translations but no dubbing... Somehow, it always was a pity for me because I knew what my product could do and in the beginning I had real problems leaning into it. After a while, however, I began to understand and with further customer dialogues, we managed to decouple and pack our product in different variations. Especially during the middle/end of 2018 we switched very much to create an affordable to free entry-level package. Customers just order (and pay for) the services they need additionally.

And here we are at the profitable change through step one. We have created additional products without much effort that we can give our customers. With happy customers paying for only what they need, we receive a much different feedback today. This feedback then helps us to set a dedicated team on individual (additional) products to increase our portfolio and thus the chance of more customers and sales. Imagine this just like in a pizza parlor where you are overwhelmed by the varieties offered. If that is too much for you, just take a cheese pizza and take only the toppings you want. Mushrooms, onions, cheese, garlic... whatever your heart desires. The pizza maker has done everything right, he leaves it to you, what you want on your pizza and you feel content and are happy to pay (if it tastes good) and there is no reason for complaint.



"Hello Mrs. Peters, I just saw that you commissioned the translation into Spanish for your video. We have just welcomed two new colleagues, who do Chinese and French translations. In the meantime, I did some research. The topic is very well received in China and France and I have sent you the data by mail. I would like to show you how well our colleagues work here and therefore give you a 35% discount on these two languages. What do you think?"... This is how it could look like to sell additional products/services and discounts in one.

It is very important that we understand what our customers need and what they do NOT need. It makes little sense to pack services into a package because it looks great, but nobody accesses it because it is too much. Think about what and how you can sell and then go to the customers.

This article is written by our CEO, Bernd Korz. With his experience as an entrepreneur, he shares his vision about the lessons provided by Steve Blank. Join us every week for a new article on Steve Blank’s lectures.

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