I just read that Thompson Reuters expects S&P 500 second-quarter 2012 revenue growth to be only 2% compared with an average of 7% every quarter since 1998.
Seconds later, I read how revenues for the electronic cigarette industry have now reached $300M, up 400% in the last four years.
For the uninitiated, including me, electronic cigarettes are composed of three major parts – a rechargeable lithium battery, a cartridge containing the desired flavor, and an atomizer, which turns the liquid flavor contained cartridge into nicotine vapors which are inhaled by smokers.
Putting aesthetic considerations aside for the moment, electronic cigarettes do solve real problems for smokers. They give smokers a smoking sensation by allowing them to inhale a nicotine mist without the carcinogens in tobacco, they don’t smell or cause second-hand cancer in others, and have no butt that creates litter.
Solving real problems are a great way to create revenue. And certainly, that has been true for the electronic cigarette industry.
Using your company’s core value proposition, your “why”, as the basis for a solution to solve real problems in your industry, is the best way for you to create new revenue for your company.
Working with one of my clients, formally a digital marketing firm, we realized their core value was the ability to compel people to act first, and then believe, in the products of their clients, thus causing higher sales. The difference was that they knew how to use interactive media in a way that caused the type of action that changed belief and ultimately purchase intent. They are now an extremely successful experiential media firm that develops proprietary digital interactive experiences that cause the type of consumer action that dramatically increases sales.
- Real problem – compelling people to buy products
- Real “why” – the ability to create actions that increase actual purchases
- Real solution – proprietary experiential solutions that produce results for big companies
- Real result – huge increase in their revenues
What is the real problem your company could solve? What is your ‘why’ that will create the solution? What will you do, right now, to use that problem and your solution to create new revenue for your company?