5 Tips for Generating Higher Demand For Your Product
Generating demand for your product requires much more than simply releasing it onto the market. You need to research, determine consumers' needs, establish yourself as a leader in your industry and repeatedly prove your products' worth.
Industry professionals recognize that before, during and after you introduce a new product, there is a lot of legwork to pique consumers' curiosity and get them interested.
Everything you need to know to generate high demand for your products (and then fulfil all that demand).
US eCommerce sales are forecasted to cross $1T for the first time in 2022.
In other words, eCommerce is booming, despite the many challenges presented by a more competitive market, supply chain struggles, and higher acquisition costs in digital marketing. And even with the looming threat of a recession, the industry shows no signs of slowing.
So, how do you differentiate yourself in a hyper-crowded marketplace?
Especially when facing some of the most challenging advertising hurdles the industry’s ever seen and sky-high customer expectations.
You need to increase demand by creating a great marketing plan. All while intertwining that marketing strategy with accurate demand planning so you meet that generated demand.
When the music streaming service Spotify was first launched, the United Kingdom was the only area that didn't require an invitation from a friend or from Spotify to sign up. But due to high demand, Spotify U.K. had to start requiring invitations to manage all new users.
The caveat to the invitation-only launches of Spotify around the world? Anyone could sign up for a premium, paid Spotify account.
Using the scarcity principle, Spotify managed high levels of consumer demand by offering them a way in -- for a price. Now, half of Spotify's 100 million users are paid subscribers.
How to Increase Demand For Your Product?
Market research can confirm hunches and open up new product categories. That's what makes it such a useful starting point for creating demand!
That first full gas tank won't last forever when you get a new car. You must keep filling up on fuel to get where you need to go. Otherwise, you'll just be chilling in your driveway. Similarly, you need to keep fueling up your demand strategy to keep it from stalling.
Marketing your existing products to prevent them from stalling is a constant priority for eCommerce retailers. And it requires a lot of creative adaptability to consistently get it right. That's where a long-term marketing strategy can drive you to profitability long after launch day.
Pay attention to market research.
Your company should determine what customers need and want through surveys, test groups, feedback on social media, and reviews left on your website. If you notice specific issues that keep popping up, there might be a need for a new product to solve the problem.
Produce stellar content.
If you're just starting, your business should promote its new product and prove that it's solving a problem plaguing consumers through informative and educational content. Determine your target demographic and research where they are active on social media and online.
Your content should aim to entertain and inform your customers of the value of your products. Release an explainer video that relates to your business or a humorous video they'll want to share with friends (think Old Spice or Dollar Shave Club's spots), an infographic that educates consumers about a pertinent issue, or a blog post written by your CEO that contains industry insights.
By producing quality content regularly, you'll begin to build trust with your audience and ideally increase sales from this newly established relationship.
Related blog: How To Market Your Physical Products?
Feature customers' reviews.
You should feature customer reviews on your website, product pages, and elsewhere. Customers are going to trust testimonials from their fellow shoppers. In a survey conducted by Ipsos Open Thinking Exchange, it was found that 78 per cent of American customers aged 18 to 64 shop online and consult reviews before purchasing a product.
They won't hesitate to purchase from your competitors if there are many bad reviews about your products. Your employees should be apologetic to any customers who had negative experiences and respond quickly to any feedback.
You also need to track their reviews and analyze them to improve products. Rating and review software such as Bazaarvoice, Re-Vu or Gigya will allow you to do just that, depending on the size of your business and your budget.
Give new customers a deal.
Another method to get consumers to try your products for the first time is to offer them a discounted or special rate. Initially, customers may not be willing to try out a product at full price. If it's offered at a rate lower than your competitors -- they just might.
Once customers have received your product and find it useful, they'll likely be inclined to purchase from you again at the regular price. Make sure you're clear that the deal is a one-time offer because you don't want customers to be discouraged when they shop with you again and find your products priced differently.
Create an exclusive club.
Once a person becomes a repeat customer, you'll want to reward them and make them feel appreciated. Create an exclusive club for these loyal customers that give them access to specific promotions, lets them in on company news and secrets before they're released to the general public, and communicates to them that they're part of the process of perfecting your products. Ask for their opinions and encourage them to take surveys.
Virgin Airlines offers its loyal customers a tier system where they are given more perks, including discounts, expedited flight check-in and priority boarding, depending upon their status. Boloco, a restaurant chain in New England, encourages customer spending where after every $50 purchase, they get a free menu item.
When attempting to generate customer demand, you must realize that no one will listen until you substantiate your usefulness. Always keep the customers' needs in mind and aim to please them.
Related blog: How To Create a Product Hype?
Nothing is worse (or more embarrassing) than going out of stock during your big sales.
This feature factors in any upcoming promotions (including how much demand you expect them to generate) so you can prepare accordingly.
Plus, say your marketing efforts generate way more demand than anticipated, and a stockout happens. I ensure you can still capture that demand by selling on backorder.
Ready to fulfil all the demand that comes your way? Download free templates today to see how you can streamline demand planning and meet your most audacious revenue goals.
You can learn about some beautiful nits-bits of online business from the one & only Mayank Mittal. Buy his e-book "Art of Building Great Products" at 50% OFF only here.