About 40% of all new products lead to failure, says Forbes. That’s nearly half of all new products, which is a pretty discouraging figure for new businesses and entrepreneurs. Those creators of the 40%, however, didn’t have this blog or business consultant and innovator, Marino Sussich, to provide the secret to what makes a successful product. 

Marino is well-known for creating ingenious solutions to complex problems, the mark of any good entrepreneur or business owner. With more than 20 years of experience in the industry, he has developed clever theories that unearth the potential of businesses and have them operating at their best. 

Understanding what counts as product failure or success

A successful product is essentially any product that fulfills the creator’s expectations, explains UserGuiding. 

The KPIs (Key Performance Indicators) that are generally used for the measurement of success include: 

• Net Promoter Score (NPS): The percentage of people recommending your product and how it is rated.
• Client Retention Rate (CRR): The percentage of customers who remain loyal and continue to use your product.
• Daily, weekly and monthly Active User Percentage (DAU, WAU, MAU): Shows how many customers are using it at a time.
• Monthly Recurring Revenue (MRR): Estimates your businesses monthly income.
• Customer Lifetime Value (CLTV): The amount of profit that a single customer can offer the company.
• Customer Acquisition Cost (CAC): Measures expense per customer.
• Profit Margin (PM): The percentage of total income generated from sales. 

Monitoring the performance of your product through these KPIs will generate a strong understanding of economic value, customer engagement and satisfaction. 

The composition of a good product

1. It has value

Any successful product needs to solve a problem for the customer, explains Mind the Product.  A product should somehow make the user’s life easier, must be needed, and help them in their everyday life. To ensure its use, it must essentially be useful. 

People need to walk, so they need shoes. People want to be entertained, so they need a platform to view TV shows. Customer or market needs are always changing, and there are always new methods of catering to old needs, and catering to them well. This is the space in which good, new products are born. 

2. It is simple

A good idea for a product is usually easy to explain. It should do just one or two things really well, or it can get confusing and the market will not be clear on its purpose. If it is easier to describe, like the “elevator pitch” technique, a larger group of people will be able to understand what it is, what it does and if it may be useful to them much quicker. 

Complex items mean more time and cost attempting to educate people on its purpose and why it might be useful. 

3. Efficient to produce

A successful product design should be easy to make and reproduce. Efficient use of materials and streamline production will ensure no cost is lost. The product should be easily scalable, and not limited too much by cost of materials. 

The most scalable products are explained by Mind the Product as those for which the cost to produce it remains the same no matter how many are using it, which is seen in digital products such as Instagram and Facebook.

4. Efficient to use 

While products can be complex in their systems and actions, it is important that they are as simple as they possibly can be. Each action should be simplified in the smartest way in order to make it easy for as many users as possible to use it. 

Good products will, if there are more complex areas of use, begin with the simple actions and make these the most accessible, so that gradually a consumer can easily progress their product knowledge. If something appears too difficult to work out, many will give up before attempting to use it. 

5. Aesthetically pleasing 

If something doesn’t look appealing, there is a high chance it will not interest people. A lot of the time, products that solely function as aesthetically pleasing will perform better than a strange-looking product that serves a good purpose. 

The way the product looks should not just suit current trends and styles, but it should also look like something that does what it does; it should suit its expected use. 

6. Generates virtuous circles 

A virtuous cycle involves any element that creates a better experience of the product the more that it is used. An example of this is the way that TikTok understands the content that you would like to see the more that you use it, or a laptop with all your work saved on it would be horrible to lose. Virtuous circles are a powerful tool for customer retention. 

Marino Sussich is here to help

Marino Robert Sussich has a strong understanding of what it is that makes a successful product or service. If you are in need of priceless advice to ensure your product will make an impact in the market and make a profit, contact Marino to arrange a consultation.