In the previous article, we went through identifying suitable services for productization and accented that you don’t need to (and actually, shouldn’t) productize the whole portfolio at the start of your transformation journey.
So, once we’ve identified the very first service to productize, it’s time to take action – and that is NOT productizing yet. Why? Because countless failed products and services flood the market daily. Before investing any money into creating a new, productized version of your service, it’s crucial to validate whether it will have a market fit. Here’s how to do it in four steps:
Define Key Aspects of the Service
Start by clearly outlining the important elements of your future productized service. Who is the target audience? What value does it add? What pains or problems does it solve for your customers? What should be the price (or several price-points)? Etc.
Be thorough in defining (and understanding) all key aspects.
Create a Pitch or Easy-to-Share Format
Once you’ve nailed down the key aspects, develop a pitch or a simplified format that’s easy to share with others. At the same time, identify which of your claims are backed by solid data and which are simply hypotheses. It’s essential to know where you’re making assumptions.
Test the Market’s Interest
Now, take your pitch to the market using the most suitable method—quantitative research, qualitative feedback, or a combination of both. Test the demand for your service and gather as much structured feedback as possible.
Validate, Test, Refine
Beyond validating the initial market interest, gather critical insights into customer needs and preferences that you might not have anticipated. Testing early helps you fine-tune your offer, ensuring it’s not only marketable in a standardized format but also tailored enough to solve the specific problems your audience faces.
Iterations based on real feedback lead to a stronger value proposition and a better understanding of how to position your service competitively. This can also uncover potential obstacles early, giving you the chance to address them before launching, saving both time and money.
This agile approach transforms your initial concept into a well-rounded, market-ready service that customers will be eager to buy.
Clear outcome
With careful planning and execution, validation gives you a clear go / no-go answer to whether you should productize your actual service. It can also unlock new levels of efficiency and profitability for your business. Or, it helps you avoid wasting time and resources, may you find out that your potential productized service doesn’t have the best foundation for success. If so, you should rather choose the next option in your services-that-could-be-productized list.
