Here at SmartBrand HQ, we’re undergoing exciting changes. As a natural progression of our business model, we’re continuing to build on our own brand and services through finding new ways to help our clients achieve their goals. Exciting new approaches have arisen from our team, all of which are being integrated into a new communication strategies and goals.
Throughout this internal process, we’ve continued to build on our client’s successes, while uncovering the opportunity to metaphorically “pivot” our primary business functions and goals. We’ve read insights from many resources, and have found one to be of true value that we thought you’d find helpful as well.
In Lessons Learned , Eric Ries coined the term “pivot”, and start-ups took serious note to develop companies that can quickly change directions, while remaining grounded in their valuable experience. With a focus on both the past and the future, this became a cry for the adaptation in business now considered required in today’s volatile market.
These pivoting brands understand that they may stray from their original vision, but not the practices and principles that lead each step in their development. A true pivot is a refocus of the past and not a brand new adventure. More than a 2.0 version of the first concept, a pivoting company leans into the future with its past knowledge as the anchor.
Ries identifies eight unique pivots – each with their own focus and intent:
- Customer Problem: A customer pivot allows you to repurpose the same product to address a different problem for the same customer. Consider Starbucks, who pivoted from selling coffee beans and espresso machines to brewing and serving drinks.
- Market Segment: Take your existing product or service and use it to solve a similar problem for a different set of customers. This may be necessary when you find that consumers aren’t buying from you. This can also be more of a marketing pivot, than a product/service change.
- Technology: Engineers often fight to take advantage of what they have built. Their best pivot is to re-purpose the technology platform – to make it solve a more pressing, more marketable, or simpler problem.
- Product Feature: Take special care to pay attention to what your customers are actually doing, rather than what you want them to do. You may need to focus and remove features, or perhaps broaden features to offer a broader solution.
- Revenue Model: One pivot is to change your focus from a premium price/customized solution to a low price, commoditized solution. Another common variation worth considering is the move from a one-time product sale to monthly subscription or license fees. Another is the famous razor versus blade strategy.
- Sales Channel: Startups with complex new products often start with direct sales and building their own brand. When they find how expensive and time-consuming this is, they need to use what they have learned from customers to consider a distribution channel, e-commerce, white-labeling the product, and strategic partners.
- Product Vs. Services: Products or services can be too different or complex to be easily sold. Now is the time for bundling support services with the product, education offerings, or simply making your offering a service that delivers a core product.
- Major Competitor: What can you do when a new major competitor jumps into your brand’s space? You can charge ahead blindly, or focus on one of the above pivot strategies to build your differentiation and thrive.
In each of these forms, change isn’t simply adding a new feature in hopes it will create overarching change. Key to pivoting is identifying trends from metric data and real market experience, then finding the optimized product/service to fit the market. The trick is to make this transition without leaving your core market, or worse – hurting your credibility.
Before pivoting, look for multiple data points. As no product can satisfy every customer, no pivot should be made based on a single response from a customer, friend, or press source. If your internal team is frustrated, that’s a perfect first sign of the need to pivot your business model.
Before you do decide to pivot, seek your investors and advisors help so there are no surprises. As a brand in change, your ability to adapt in chaos is key to your growth – no matter what size company you are.
Is it time for your product or service to pivot its brand strategy? We’d appreciate your sharing your experience with our readers!