The founder of Wrigley’s, William Wrigley Jr., didn’t start out selling gum. He first worked as a traveling soap salesman. To sell more soap, he started giving away free baking powder with each purchase. He soon realised that people liked the baking powder more, so he switched to selling it and giving away free chewing gum. When he realised people loved the gum, he pivoted to selling it exclusively.
Knowing when to stick to your guns and when to pivot is a key skill in business. But how do you know which is right? Here are some tips to help.
Know Your Numbers
Most businesses have a good idea of their overall profitability and key metrics. But it’s critical that you can break everything down by product and service line. It’s super common that one profitable area of the business cross-subsidises losses from another. Sometimes this is useful, but it should be an informed decision.
Use tools like PowerBI and Tableau to get a clear understanding of which parts of your offering are working and which aren’t.
Listen to Your Customers
Your customers can provide invaluable insights if you listen carefully:
- Track positive and negative feedback
- Conduct regular surveys and feedback sessions
- Monitor social media and online reviews
- Engage with customers directly through focus groups or interviews
Tools like SurveyMonkey or Typeform can help you gather feedback efficiently. If customers are consistently asking for services or products you don’t offer, it might indicate an opportunity to pivot.
Double Down on What’s Working
When you find success, don’t be afraid to focus on it. Sometimes we keep sticking to our original vision even when everything is telling us to switch it up. Invest heavily in what’s working, irrespective of whether it’s where you started.
Allocate Resources to Experimentation
Many moonshot projects have a small chance of success, so they can be hard to greenlight. But group them all together, and there can be a high chance of one of them succeeding and changing the course of your business. So rather than assessing the feasibility of each idea individually, it can be helpful to allocate a percentage of your resources (time and money) to experimental projects. This keeps the majority of your resources focused on what’s already working while still creating room for experimentation and novel ideas.
Remember, pivoting doesn’t always mean a complete change of direction. Sometimes, like in Wrigley’s case, it’s about recognising an unexpected opportunity and having the courage to pursue it.
The key is to stay flexible, keep a close eye on your data and customer feedback, and be ready to adjust your course when necessary. Who knows? Your next free giveaway might just become your company’s flagship product.
Until next week!
