How to strategically diversify your products
Diversification may sound counterintuitive to our introductory discussion about finding a niche, but the two actually go hand in hand. While you want to target a specific niche and offer a refined service (rather than trying to be everything), it’s important to diversify your offerings to better align with your agency’s strengths and vision as well as market demand.
First, you need to understand the when , why and how to get it right:
When, why and how to diversify services
Diversification takes time and intention. It requires self-reflection, market analysis, and a clear understanding of the long-term vision for the organization. Key indicators that it may be time to diversify include:
Emerging trends or brazil data technologies that align with the agency’s expertise
Customer demand for additional or supplementary services
Cross-sell or up-sell opportunities to increase customer lifetime value
Diversification can be a lot of work, but it can bring a range of benefits:
Enter new markets: Diversification can open the door to entirely new customer segments, geographies, or industries, expanding your organization’s client base.
Reduced risk: By not putting all your eggs in one basket, your agency can more effectively weather an industry downturn or shift. If one service takes a downturn, the others can pick up the slack.
Increased revenue streams: New services can unlock additional revenue streams and improve your bottom line. A broader suite of services can improve customer retention as they can find more solutions under one roof.
When and why to diversify your agency may be obvious, but the how can be a little more elusive. Here are some ideas to get you started.