More than 25 percent of total revenue and profits across industries, including the tech sector, comes from the launch of new products, according to a McKinsey survey.
Yet despite this, and increasing year-on-year R&D spend, McKinsey says its research reveals that more than 50 percent of all product launches fail to hit business targets.
Potential customers overwhelmed
It’s interesting to note that despite the many advantages of technology it’s actually harder to make products and services stand out because potential B2B leads are overwhelmed by a barrage of messaging and communications.
In short, technology has made product and service launches more challenging by allowing companies and start-ups to roll out more launches more quickly and cheaply.
McKinsey adds that there is no correlation between the amount invested in a launch and the rate of success, or in other words “just because a company does it more doesn’t mean it gets any better.”
McKinsey outlines a number of factors that can help turn this situation around two of which are developing market insights and building capability within the team.
Practically this means, for instance, partnering with a content marketing agency that has expertise in areas such as digital PR, earned media, inbound and outbound, all with a view to increasing B2B lead generation.
This expertise helps maximise organic search traffic, identify gaps in content and deliver understanding in how the target audience engages and converts with different topics, all of which overcomes the challenges chalked out by McKinsey, and ultimately drives product sales.