Marcus RichardsOne of the best ways to get a business off the ground is to offer one product or service, and make sure you get it perfect. Once this is nailed, it’s important to start scaling to try to make more profits. Just look at Amazon, which started off as a simple online bookstore and now sells almost anything.
One of the best ways to begin branching out from your tried-and-tested formula is to offer slight variants on your existing products or services.
Online Casino Industry Provides an Excellent Model to Follow
The online casino industry is one of the best places to see diversity working its magic. When live streaming first came into play, developers focused on adapting traditional blackjack for the platform. Now, the blackjack games at Paddy’s span numerous different variants. Many of these use the traditional rules but with additional features such as multipliers. Lightning Blackjack, for instance, features animations that might lead to higher returns on the player’s stake.
By branching out into all these different offerings, online casinos can appeal to a wider demographic. The games also come with different dealers, meaning that players have the chance to choose the one that they feel the most affinity with. This booming sector is a good example for smaller businesses to follow. It got the basics right first, and then cleverly expanded based on research into customer playing habits.
The Power of Product Variants
Although starting with one key product or service is a good strategy, businesses need to move away from the “one size fits all” approach as soon as possible. By offering a variety of products, it’s possible to cater to various customer preferences. These can include everything from flavors to colors.
If customers can find a product that suits their own tastes, they are more likely to make a purchase. According to a piece in Voucherify, it’s important to get the amount of variety just right. By offering too much, businesses can risk a reduction in sales. However, just the right amount of variance on a winning product can be an excellent way to boost revenue.
What are the Most Famous Examples of This Strategy?
There are plenty of successful businesses that have diversified well, and these provide a great example for other companies to follow. Apple is one of the most famous brands to have succeeded from narrow diversification over the years. Its expansions into new products have been gradual and considered, with past offerings leading into new ones. The iPod, for instance, paved the way for the iPhone.
Coca-Cola is another excellent example to follow. The drinks company is famous for its legendary carbonated offering, which makes up a vast proportion of its sales. It has diversified with different flavors and sugar-free versions over the years, making it appealing to a broader demographic.
It’s clear that when companies diversify correctly, they can enjoy great success. Any business owners wondering how to scale should look at how some of the world’s best brands used this strategy.
