I keep hearing about PRODUCTIZATION:)
BUT - What is Productization and why should I care about it?
Well, I guess we should start with the right definition -- According to Investopedia:
"Productize" refers to the process of developing or altering a process, idea, skill, or service to make it marketable for sale to the public. Productization involves taking a skill or service that has been used internally and developing into a standard, fully-tested, packaged, and marketed product. For example, a consultant might productize their expertise by creating a product or service based on that knowledge. However, productization is not the same as the production of a good or service.”
SO, there ya go -- I am sure you fully understand Productization just by the above official definition - Now go out and productize!
Or, if you are like me, you might need a little more direction and clarity on Productization and why it is important to you and your business.
Productization is a KEY STRATEGY IN CREATING AND RUNNING A SERVICE BASED-BUSINESS!
When something has been productized it means that it has been taken from a raw or minimally developed idea and has been turned into a standard, fully tested, packaged, supported and marketed product.
Productization does not involve a tangible, physical good. Rather it is an idea, a process, a prototype, an area of expertise, or skill that has been developed (or productized). One can productize his or her expertise by creating a product or service based on that knowledge.
To productize is not the same thing as the production of a good or service!
BUT -- Services may be productized, packaged and sold like physical products (confused yet?). For example, a marketer can write a “how to ...” book for new entrepreneurs that would teach them how to market their business, web designers can create a DVD series on how to design websites or savvy agents owners can sell predefined products … These “packages” provide overwhelming value and take considerably less time to implement.
Hopefully, the concept is a little more clear on what Productization is and is not - but maybe diving into what you need in place to successfully build or transition into a truly productized agency will help make it even more clear.
Basically, there are 6 steps or “Systems” to productize your agency and these steps are unique to each agency because...Every Agency is Unique!! You can keep it simple and develop just 2 or 3 products and rock them out or go bigger and provide products for every possible pain point in your specific niche -- Either way -- OWN IT!
Obviously, a blog is not the best place to do a deep dive into the whole system and trying to wrap up 18 years of experience in a blog is not that easy either -- that would take a lot more time -- but it is a great place to start!
AND, know that this information if used correctly can increase your profits by at least 15-25%. When you streamline the deliverable process by 30-50%, it is simple to see how your profits can double in some cases.
Every time you deliver one of your products you can double check the quality against the checklist and if anything does not come back to your expectation level, you modify the technical task list and adapt for the quality assurance issue and BOOM, it is fixed forever!
Now, imagine once you get it perfectly dialed in, now you can duplicate it and deploy it thousands of times going forward. You can literally just cut the workload by half (if not more) on that project this time and every time going forward --
PRODUCTIZATION -- YOU GOT IT?
The applications are limitless - you get higher profits out of productization - raise your prices via a value-based pricing model and cut deliverable cost by at least 30-50% --Think about it!! LIMITLESS!!
OK -- here are the - SIX SYSTEMS TO PRODUCTIZE YOUR AGENCY (overview)
Rope - Stands for having a common thread. When you have something on a rope, you begin with the end in mind. You have a plan from start to end - all tied together. If you can get your entire product line in alignment with all your messaging, meaning everything on a rope, your close percentages will sky rocket and so will your profit margins.
Blocks - Yes, like the set you probably played with when you were a child.
Those blocks allowed you to build shapes with different colored blocks that easily snapped together. Everyone bought the same blocks but used them to make different products (limited only by your imagination) These blocks are the same for your agency - you give everyone the same blocks but let them feel like they have created a masterpiece:) Give 25 identical blocks to 20 different kids and you will get 20 different results . The 20 kids all used identical blocks .. GET IT.
Service Framework - You must have a standardized system that delivers predictable and reliable
results every single time you sell one of your products. When your products are broken down into individual objects that your service department can proactively plan to deliver, you are now empowered to build any combo package you want ( as long as you stick to your blocks).
Value Based Pricing - Value-based pricing is an instrumental part of productizing your agency. By default, you will establish a value-based pricing model with your products when you set up your blocks. (Trust me, it will all come together if set up properly)
Bespoke Equals Broke - This is just one of those sayings I say in my coaching calls -- The point of productization is NOT to 100% eliminate custom work, but the point is to mitigate it as much as possible.
Existing Clients - When transitioning former clients there are creative ways to introduce the new product line to your existing client base. Touchy but can be done. I coach people through it everyday.
PRODUCTIZATION WRAP UP
Productization is taking your idea, skill, or service and making it marketable for sale to the public. You have a skill or a service that brings value to people just like a physical product so why not productize it like a physical product? Productization does not mean completely eliminating custom work, it means minimizing it so you can have more freedom to do what you enjoy all the while still keeping your clients happy:)