Uncertainty and Risk

Businessman balancing on ropeNew ventures are wrought with uncertainty and risk. As a new product in the market, a customer perceives a high degree of uncertainty related to your endeavor. They need to take a chance in order to try out your offering.

A firm must establish a strategy to try to mitigate that risk before it enters the market. Unless you’re willing to offer your product or service on a free basis (at the start), the most likely way to minimize the uncertainty related to a product is via a focused media / PR campaign.

A media campaign focused on addressing (and mitigating) risk related to a new product must focus on how potential customers can become comfortable with a new offering without actually needing to try out the product / service. A tactic often used to address this challenge is the use of video. A video campaign can show the product or service in action. Anything to make the product / service tangible and “real” in the eyes of the consumer will help in this effort. For example, it might help to highlight your product in a real-life situation, taping a product demo. Alternatively, an interactive online campaign focused on detailing via graphics and video the different attributes of the product will allow the customer to “test out” the product in a virtual manner.

At the end of the day, the tactic that is most likely to mitigate the perceived risk associated with a new product is through a word-of-mouth referral. People are most likely to trust the opinions and referrals of their friends. If a friend can speak to your product in a positive manner, that will do more than any PR campaign could achieve.

Thumbs UpTry this: Find ways to get the customer involved with your product in a ways that minimizes the risk to them. Find ways to make your product or service tangible in the eyes of the consumer.

 

 

 

Thumbs DownAvoid this: Don’t make drastic changes to the product or modifications that can confuse your customers. Don’t let video or interactive promotions stand in the way of direct one-on-one conversations with customers, as direct conversations are the best way to convince customers to try your offering.

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