Improving an existing product or service means enhancing a product or service’s quality by making it larger or smaller, making it more convenient to use, improving its durability, or making it more up-to-date, thereby increasing its value and price potential from the customer’s perspective.
For example, many companies that sell flat irons that are used to straighten women’s hair have upgraded to ceramic irons because they allow for a more even distribution of heat. Similarly, software firms routinely increase revenues by coming out with “updated” versions of an existing software product.
Improving an existing product or service is the process or system of making meaningful changes in the product or service that create new customers or result in higher benefits enjoyed by existing customers. There are two ways of making product or service improvements which are very popular. They are adding new product or service features or improving existing ones.
Adding new product or service features increases the existing product’s scope, sometimes creating a large marketing splash, making a version bump, and causing several press releases. Generally, new features are the improvements that non-customers or outsiders will only hear about. Adding new features is risky. The company has to be pretty confident that those will be valued.
Improving an existing product or service can be done in three ways:
- Deliberate improvement: Making it better.
- Frequency improvement: Changing it so consumers use it more frequently.
- Adoption improvement: Changing it so more consumers can use it.
More from this Section
- Silent partner
Silent partner is a partner who assumes no active role in managing the firm, but who may ...
- Sustained growth
Sustained growth is defined as growth in both revenues and profits over a extended period ...
- Multiple-unit franchisee
An individual, who owns and operates more than one outlet of the same franchisor, whether ...
- Public corporation
Public corporation is a corporation that is listed on a major stock exchange, such as ...
- First-to-invent rule
First-to-invent rule, meaning that first person to invent an item or process is given ...