Flat Sales Giving You a Headache?
The causes behind stalled growth can be numerous, and there is no simple diagnosis for flat to declining sales. But in our two decades of experience, we have learned thatone of the biggest threats to growth is commoditization.
Commoditization occurs when customers, your sales team, and perhaps even you, can no longer differentiate your product from that of your competition. The result is thatbusinesses often begin selling on price rather than value. Because they don’t see the differentiating value of their product, they continually lower the price in an effort to stay competitive.
The important thing to note about commoditization is that it is not something inherent to the product. Rather, it is a mindset, adopted over time, often without realizing it until it’s too late.
The good news is that commoditization is also reversible if you know how to identify and address it. To break free of the commoditization stranglehold, you must shift your perspective. You must be willing to see your product, not as a commodity, but as a viable and valuable solution to your customers’ problems.
The first step is to diagnose the problem. Take our Commoditization Diagnostic below. If you find yourself putting checkmarks next to multiple scenarios on the list, your company may be at risk of commoditization. Our hope is that this diagnostic tool can help you break free of a commoditization mindset and embrace an attitude that leads to transformational growth.
Copyright © Julie LaNasa 2015