Every business offers products or services designed to address specific needs or problems faced by customers. Understanding this relationship is crucial for determining the relevance of your offerings. Your product or service should not just be a commodity; it should provide value by solving a problem or fulfilling a need for your target market.
Example
If you run a bakery, your products are not just baked goods; they are solutions for customers looking for delicious treats for special occasions, a quick breakfast on the go, or a comforting dessert to enjoy at home.
What Makes a Solution “Relevant”?
A solution is considered “relevant” when it effectively meets the current needs, preferences, and expectations of your target market. Here are five key factors that contribute to the relevance of your offerings:
1. Address Current Needs
Your product or service must solve a problem that is important to your customers right now. This means staying attuned to changes in customer preferences or market conditions.
Example
A fitness center that offers online classes addresses the growing need for convenient workout options, especially during times when in-person attendance is limited.
2. Quality and Effectiveness
A relevant solution must not only exist but also perform well. Customers will quickly move on if they feel your offering does not effectively solve their problem.
Example
A software tool that helps small businesses manage their finances is relevant if it is user-friendly and provides reliable results. If it’s complicated or buggy, users will look for alternatives.
3. Innovation
Solutions must evolve with technological advancements and changing consumer behaviors. Regularly updating your offerings to incorporate new features or improvements keeps your business competitive.
Example
A smartphone company that continuously upgrades its devices with new features and technology stays relevant in a rapidly changing market.
4. Customer Engagement
Actively seeking customer feedback and engaging with your audience helps you understand their needs better. A relevant solution is one that reflects customer input and adapts accordingly.
Example
A clothing brand that listens to customer feedback about sizing and fit and adjusts its offerings to meet those demands will remain relevant in the eyes of consumers.
5. Market Trends
Keeping an eye on industry trends can help ensure your solutions align with what’s popular or emerging in the market. This requires a willingness to adapt to changing circumstances.
Example
A restaurant that begins offering plant-based menu options in response to the growing trend of healthy eating and dietary preferences will appeal to a broader customer base.
By understanding how your product or service serves as a solution and what makes it relevant, you can better position your business to meet the evolving needs of your target market.
7 Steps to Take to Determine Relevancy in the Market
To determine if your product or service remains relevant, start by gathering feedback from your customers. Conduct surveys, read reviews, and engage with your audience on social media to uncover their needs and preferences.
Also, analyze your sales data to identify trends—are certain products or services consistently underperforming?
It’s also essential to monitor your competitors and the market landscape. If you notice similar businesses thriving while you’re struggling, it may signal a shift in demand.
This shift might have nothing to do with your offerings; often, customers are looking for convenience and expect businesses to stay up-to-date with innovation, technology, and customer service trends in the 2020s.
1. Survey Your Customers
Create a simple survey to ask your customers about their preferences and what they value in your products or services. Start today by creating a 3-5 question survey using Google Forms or SurveyMonkey. Ask about product satisfaction, areas for improvement, and what they’d like to see in the future.
2. Engage on Social Media
Reach out to your audience directly on social media platforms. Today, post an open-ended question like, “What’s one feature you’d love to see added to our products/services?” This will spark conversation and provide instant feedback.
3. Analyze Sales Trends
Review your sales reports to identify which products or services are underperforming. Right now, pull up your last 3 months of sales data and make a list of your top-performing and underperforming products. Compare trends and consider why some items may not be selling as well.
4. Research Competitors
Study your competitors to see what they are doing successfully. This week, visit at least three of your competitors’ websites and social media profiles. Take note of any offers, products, or marketing strategies they’re using that seem to be working well.
5. Attend Industry Events
Participate in industry conferences, webinars, or local events. This month, sign up for at least one free industry webinar or networking event. This can be done virtually and will help you stay on top of emerging trends and ideas that could benefit your business.
6. Invest in Innovation
Consider modernizing your offerings by updating product designs, improving service delivery, or adopting new technologies that enhance customer convenience. Identify one area of your business today that could benefit from a technology upgrade (e.g., an online booking system, mobile-friendly website, or new payment methods).
7. Adapt to Customer Needs
Be flexible and willing to pivot your offerings based on customer feedback and market demands. Review your customer feedback today, and brainstorm one immediate change you can implement, such as adjusting service hours, introducing a new product variation, or discontinuing something that isn’t selling.
Each of these steps offers something specific you can do right now to assess and improve the relevance of your business in today’s market. By being proactive, you’ll stay aligned with your customers’ needs and boost your competitiveness. And always remember, staying relevant is an ongoing process.
