In the Continuous Customer™ journey, the shape of our packages, products, and services must now continually change to meet changing needs and customer demands. Packaging must be agile so that, as customers evolve, businesses can adapt to meet the customer needs with offers that are timely, suitable, and simple from the customer viewpoint. The traditional catalog models and systems from an “item-based” economy cannot inherently meet these new demands; thus a new approach to the product catalog and packaging design need to be developed for your recurring revenue business.
We help our clients apply Navint’s tried-and-tested product catalog playbook to your enterprise objectives so that systems investments are effectively designed and implemented. We work with you to define the desired customer-product pathway, with catalog and design guidelines for cross-functional alignment. By aligning process design with the product catalog, we can create a frictionless methodology of selling and modifying customer relationships across the customer lifecycle and throughout the entire business operation.
Removing the SKU Frankenstein to Enable Growth
As recurring revenue businesses grow, the incumbent approach to managing the catalog with a SKU mindset—that of an item-based economy—results in lack of flexibility to package, price, bundle, and discount products and services. It causes operational friction in sales, product management, delivery, and finance such as:
- Teams struggle to deploy important bundles, offers, and campaigns.
- Business leaders ask why there are 4,000 SKUs to sell 15 products.
- Headcount mushrooms across sales, service, and billing functions.
- Customer self-service strategies are frustrating and unattainable.
- Customers receive the wrong price, wrong product, or wrong invoice.
- Customers ask why they cannot buy services in a way that suits them.
Simply selling SKUs in a shopping cart, to be purchased as independent items, is misunderstanding the essence of a recurring revenue business. SKU explosion occurs, internal data structures become twisted, and analytics become tiresome.
We have helped our clients design new product catalogs that are sequenced to the customer pathway of acquisition, renewal, upgrade, and add-ons (CRUAT). Instead of tens of thousands of SKUs representing product iteration, we’ve helped customers enable dynamic packaging and reduce their catalogs by up to 80%. By removing the SKU Frankenstein, we also address many of the downstream operational problems such as billing, invoicing, and revenue recognition.
Do you need help with your product catalog and package design strategy? Contact Us today.