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Best Practices for Expanding and Scaling Product Development

Growth in companies is not only limited to the economy of scale. Sometimes a business can grow by exploring the economy of scope. In other words, scaling product development can be increasing product line, mix, or a combination of the two.

Before a company can proceed with expanding its business, it needs to ensure that it has the system to support the expansion of its product. The ability of the company to support the expansion of its product is referred to as scalability.

Highly scalable companies can introduce new product lines and product mix simultaneously. However, it is better to pick one at a time. A systemic approach will reduce the strain on the company’s product development.

In this article, we will examine more of the best practices a company should employ when considering scaling its products. By following these processes, it would be easy for the business to maximize its resources to get the best result.

Practice 1: Use Customer Feedback for Product Development Plan

Quantitative and qualitative analytics are good first steps to breaking the product scaling ice. End users are the ultimate determinant of the scalability of the market. Their approval of a new product or otherwise will determine the success of the product.

Hence, businesses use customer feedback to determine which product to launch. If the data was accurately collated and interpreted, such a product will have a lasting success in the market. Check these methods for collecting customer feedback data.

The feedback from customers can also be a review of your existing products. This can help you point to what changes you need to implement. You can also learn from your existing customers how they interact with your products.

Practice 2: Scaling Products through Strategic Marketing

Aside from customer requests or feedback, sharing with them your unknown unique offering can help your scalability. When your MVP (Most Valuable Product) does not have good recognition among customers you need to re-strategize how to put the product in the customer’s hands. If the response persists, you can implement major modifications or total cancelation when scaling.

Your marketing strategy will help you familiarize yourself with customer stories and journeys in the market. Hence, your business can scale using the instances where customer journeys were successful.

Practice 3: Scaling a Product by Testing and Analyzing

It is important not to lose track of the scaling process. Hence, you need to constantly analyze your revenue, customer engagement, comments, conversion rate, etc., to ensure you are still on track. In other words, you need to take control of your product development plan.

One of the most used analytics tools is Key Performance Indicators (KPIs). Check out these KPI tools. You can use the tool to test your MVP and control product quantity and quality, among others.

The goal of constant testing and analysis is that you can improve your customer journey where necessary. This improved journey will increase the acceptance of your new product line and reinforce your scalability.

Practice 4: Strategize Sales Increase when Scaling Products

You to identify the market condition for your product. For instance, if the market condition is favorable, you will be attracting more customers. Hence, there will be increased production and the introduction of an economy of scale.

You can follow the growing market with a price analysis of your upscale. This way, you will be able to identify the pricing structure that would fit the final expansion. If need be, you can choose a price differentiation approach.

Practice 5: Invest in Automation Technology for Scaling Products

Scaling product development often requires more human and material resources. Hence, monotonous tasks and systems can be automated to ensure that only tactical roles are taking more resources. You can automate bottlenecks like testing, monitoring, feedback, and deployment.

Automation can help your business reserve funds and effort. There are various automation tools like chatbots, email scheduling, automatic testing, etc. You can pick the best automation tool by comparing cost, customer service, usability, and other key criteria for your administrative scalability.

FAQs the Best Practices for Expanding and Scaling Product Development

1. How can a business develop a scalable market plan?

A business can build a scalable market plan by starting with only the needed marketing tools. While focusing on a few tools at the start they can rightly evaluate the market’s response to those tools. In addition to selecting a few tools, they can set up marketing experiments. This experiment will further help the business identify trends and the best value to bring to the market. After which, premium marketing tools can then be employed.

2. What are the elements of a scalable business?

At the root of every scalable business is process automation. By automating monotonous tasks, human resources will be able to focus on new business ideas. Also, a scalable business utilizes an effective sales funnel. They constantly grow their customers through landing pages, offering value, and effectively nurturing the prospect.

3. How do you determine the scalability of a product?

You can identify the scalability of a product by answering this question; Does the profitability or efficiency of producing a product increase, decrease, or sustained? If it increases then it has the highest potential for scalability. Products whose profitability or efficiency may not increase will require optimization of system components and capacity.

4. What are the main components of product scalability?

To achieve product scalability all or a combination of size, geographical adaptation, and administration must be scalable. The magnitude of the increase of any of these components is referred to as the scalability dimension. The size of scalability refers to the quantity being manufactured. Also, a product is considered geographically scalable if the product can be used across the borders of the country. Last of all, administrative scalability refers to being able to add more users to a system without disrupting the existing system.

5. What is a scalable system?

A scalable system can handle additional workload demands. For instance, it can handle more production or the need for administrative expansion. Importantly, a scalable system can withstand the rapid change in workload demand.

It’s a Wrap

Scaling is synonymous with growing a company’s supply coverage. It benefits both the production company and the end user.

However, scaling must be done at a propositional rate. You will find in this article the best practices that you should employ when scaling product development.

Do you need help increasing your product line? You can reach out to LA NPDT for guidance on how to position your business for scalability.

We have experienced professionals that will help you improve and increase your product line. Contact us through 318-731-9573 or visit our website lanpdt.com for more help.

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