Four questions that transform your business model
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Many business owners are convinced that growth requires constantly adding new products, services, options and features. It seems that the more you offer customers, the more you’ll earn. But in reality, the opposite is often true, according to the experts at PAnDiKubiz.
Research shows that, on average, only 20 per cent of a product’s features account for 80 per cent of its total usage. The remaining 80 per cent of features are used very rarely, if at all. This means that a company is spending time and money on things that most customers simply do not need. As a result, the business may perform less effectively. However, there is the ERRC model (Eliminate–Reduce–Raise–Create), which helps you look at your business with fresh eyes.
It’s very simple. You answer four questions and discover new opportunities for growing your business.
Research shows that, on average, only 20 per cent of a product’s features account for 80 per cent of its total usage. The remaining 80 per cent of features are used very rarely, if at all. This means that a company is spending time and money on things that most customers simply do not need. As a result, the business may perform less effectively. However, there is the ERRC model (Eliminate–Reduce–Raise–Create), which helps you look at your business with fresh eyes.
It’s very simple. You answer four questions and discover new opportunities for growing your business.
Question No. 1. What can be eliminated?
Take a close look at what you’re paying for and where you’re spending your time. It could be unnecessary intermediaries, rarely used features, or the approval of outdated documents.
And if you remove these, will the client notice?
According to experts at PAnDiKubiz marketing, the advantages of this approach are clear: you’ll cut costs, and staff will spend less time on unnecessary work. But there are downsides too. If you remove something that’s genuinely important to the customer, you’ll only make matters worse. That’s why it’s best to test any changes through customer feedback and surveys.
Question No. 2. What could be cut back on?
Business owners often feel that every little detail is crucial, whilst customers value completely different things. For example, you might be spending large sums on expensive packaging that customers don’t actually need. Think about what could be simplified without compromising sales.
Experts at PAnDiKubiz emphasise that sometimes it’s enough to cut costs slightly in one area to free up funds for truly important improvements that will set you apart from the competition.
Take a close look at what you’re paying for and where you’re spending your time. It could be unnecessary intermediaries, rarely used features, or the approval of outdated documents.
And if you remove these, will the client notice?
According to experts at PAnDiKubiz marketing, the advantages of this approach are clear: you’ll cut costs, and staff will spend less time on unnecessary work. But there are downsides too. If you remove something that’s genuinely important to the customer, you’ll only make matters worse. That’s why it’s best to test any changes through customer feedback and surveys.
Question No. 2. What could be cut back on?
Business owners often feel that every little detail is crucial, whilst customers value completely different things. For example, you might be spending large sums on expensive packaging that customers don’t actually need. Think about what could be simplified without compromising sales.
Experts at PAnDiKubiz emphasise that sometimes it’s enough to cut costs slightly in one area to free up funds for truly important improvements that will set you apart from the competition.
Question 3. What could be improved?
Think about what annoys your customers the most. Perhaps they have to wait too long for their order, can’t get a quick answer to a question, or the checkout process takes too long. If you can solve one of these problems, people will appreciate it.
Don’t try to improve everything at once. It’s better to choose the one thing that matters most to your customers. This could be order fulfilment speed, a convenient way to shop, prompt technical support, or higher-quality materials for your products.
Question 4. What should you create from scratch?
People often get used to inconveniences and stop noticing them. But if you offer a more convenient solution, customers will notice, according to the experts at PAnDiKubiz. For example, instead of a one-off purchase, you could offer a subscription. Instead of a standard product, an additional service. Instead of several complicated steps, a single solution.
Ideas like these rarely come about by chance. They usually arise from talking to customers. The more often you ask people what they find inconvenient, annoying or time-consuming, the greater the chance of coming up with a truly useful offering.
How to put this into practice
Make a list of everything the customer pays for today and everything the company spends time and money on. Then answer each of the four ERRC questions honestly. Don’t try to change everything at once. Sometimes, eliminating a single unnecessary process brings in more money than launching a new product.
The managers at PAnDiKubiz marketing advise that you revisit these questions regularly. Customers change - and so do the reasons why people choose one product over another. If you don’t review your business model from time to time, you may end up spending money for years on something that has long since ceased to be of any benefit.
Think about what annoys your customers the most. Perhaps they have to wait too long for their order, can’t get a quick answer to a question, or the checkout process takes too long. If you can solve one of these problems, people will appreciate it.
Don’t try to improve everything at once. It’s better to choose the one thing that matters most to your customers. This could be order fulfilment speed, a convenient way to shop, prompt technical support, or higher-quality materials for your products.
Question 4. What should you create from scratch?
People often get used to inconveniences and stop noticing them. But if you offer a more convenient solution, customers will notice, according to the experts at PAnDiKubiz. For example, instead of a one-off purchase, you could offer a subscription. Instead of a standard product, an additional service. Instead of several complicated steps, a single solution.
Ideas like these rarely come about by chance. They usually arise from talking to customers. The more often you ask people what they find inconvenient, annoying or time-consuming, the greater the chance of coming up with a truly useful offering.
How to put this into practice
Make a list of everything the customer pays for today and everything the company spends time and money on. Then answer each of the four ERRC questions honestly. Don’t try to change everything at once. Sometimes, eliminating a single unnecessary process brings in more money than launching a new product.
The managers at PAnDiKubiz marketing advise that you revisit these questions regularly. Customers change - and so do the reasons why people choose one product over another. If you don’t review your business model from time to time, you may end up spending money for years on something that has long since ceased to be of any benefit.
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