Question

Topic: Strategy

Keep Selling Cash Cow When New Product Launched

Posted by Anonymous on 12/29/2005 at 5:15 PM ET 250 Points
How do I maintain sales of an existing "cash cow" limited features product when a new, improved feature-rich version of this product is launched?
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RESPONSES

  • Posted by michael on 12/29/2005 at 5:37 PM Accepted
    Don,

    Never assume that everyone wants the upgraded version. AOL still has people running version 5.0! This particular computer is running Windows98 eventhough I have XP on the other computers. Just don't see the need for the change.

    Educate your buyers and you'll have loyal customers. Consider how many companies push people to upgrade when it's not necessary...becuase the sales people get commission on the upgrade.

    Michael
  • Posted by mgoodman on 12/29/2005 at 7:42 PM Accepted
    Focus on the basic positioning benefit and trade on the heritage that it's been the recognized standard for providing that benefit for a long time.

    Just stick to your knitting and continue to offer a solid value for your customers. Don't try to compare yourself to the new version. Let the new version establish itself and hope they'll compare themselves to your cash cow.
  • Posted by telemoxie on 12/30/2005 at 7:46 AM Accepted
    I think one way to gain a perpective is to ask yourself what the customer would want, if he or she knew 100% of the details.

    I agree that this depends very much on the product type, especially your cost to deliver the product. Can you provide more info on what you are selling? For discussion, let's assume you are selling software. Personally, I do not like to buy version x.0 of anything. I'm much more comfortable with the tried and true... and so I would want to buy the existing product product, with the option to credit my purchse towards an upgrade to the newer version when available.
  • Posted by adammjw on 12/30/2005 at 8:34 AM Accepted
    Is this new feature-rich version came into being as a result of analysis of your customers' new needs and expectations you could not fulfill when you original product was launched or rather this was your your own decision to roll it out?
    If the first is true you may inform your customers of the fact that the new-comer is there!
    If the latter is the case then I would start with showing your current customers the demo of the more sophisticated product you got now.
    Do not try to reach for the stars and make light of your current " star" product.You have no guarantee that the new version will take off the ground perfectly.

    Happy New Year

    Adam
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