Because nothing is forever, just as it happens with people, products also change and to find out how they evolve, in this post we will deal with the life cycle of a digital product. In this post we are going to address precisely this issue, talking to you about the specificities of digital products in relation to their life cycle.
You will agree that an item that has been on the market for a long time, if not updated, runs the risk of becoming less popular, out of fashion or outdated, especially after releases.
Marketing experts study these phases that a product goes through, with the intention of keeping it active in the market for as long as possible.
But, when it comes to the virtual world, several doubts can arise, because The Internet has its particular characteristics, as well as the products directly linked to it.
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For this reason, before getting into the matter, it is best that we start at the beginning, explaining what we mean when we talk about digital products, and then go into the details of their life cycle
Many times we tend to relate the digital with the intangible. Some say that digital products are those that lack physical form and are sold online. However, this definition does not offer a complete idea of its meaning, and nothing better than an example to demonstrate it.
Think of Google or other famous search engines. They make up a digital product, and although online purchases are made through them, they are web pages that we access for free.
The definition most accepted by specialists is the one that states that a product has to do with value. Therefore, an infoproduct or digital product is everything that exists in virtual format and that delivers value and solutions to the human being.
There are many today, and there are more and more. Although it is true that the vast majority are marketed, they do not necessarily have to generate money directly, because sometimes, their mission is to help sell another product or service of a company or earn money through advertising.
What are we talking about when we talk about the life cycle of a digital product?
The life cycle of a product is the succession of phases through which a product passes during its existence.
It is usually divided into 4 stages: introduction, growth, maturity, and decline.
Marketers use their knowledge of a product’s life cycle to make important decisions and strategies to keep it on the market.
If done correctly, it can alert a business (or Content Creator) to the health of their product, allowing corrective action to be taken to prevent it from falling into oblivion.
But the process is rarely easy. Because, although it is clear that nobody wants their product to become “obsolete”, deep analysis is necessary to understand what stage it is in and thus be able to make better business and marketing decisions. Renew or die, said Unamuno.
And this writer’s phrase makes perfect sense, because you have to respond quickly to the changing needs of customers, adding new offers and adopting the latest technology to stay current in the market.
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What are the stages in the life cycle of a digital product?
The time has come to go more closely into the stages that make up the CVP, or product life cycle.
They are 4, and they are determined according to the volume of sales in a specific period.
1. Introduction
The introduction phase is considered decisive for the business. It has a high cost, since it includes the launch of the product, the cost of research, consumer tests and marketing for diffusion, in addition to the development of prototypes.
At this stage, the market is generally small for the product and sales are still low, although they are increasing.
It is also at this stage that customer attraction occurs, so strategies should be very well structured. Therefore, it is important to invest in such as social networks, or even to guarantee a constant relationship with the consumer, always keeping in mind the type of product you want to launch.
2. Growth
This stage is marked by strong sales growth and also by profitability. The business can begin to benefit from economies of scale in production, realizing an increase in the profit margin.
Consequently, if you are thinking of launching a product, you want to know that you have the possibility ofto maximize your growth potential.
To ensure success at this stage, it is necessary to adopt some strategies, such as marketing consolidation, logistics optimization, and also.
3. Maturity
The maturity stage is characterized by the establishment of the product. Here, the goal goes through maintain the position in the market, achieved during the growth phase.
it is necessary put all the attention, because there is a lot of competition, which makes investments must be done with planning and wisdom.
So don’t be afraid to consider possible modifications to the product. In the end, prevention is better than cure, and if you don’t want your product quickly, plan and be up to date with the news, because this strategy will ensure you a competitive advantage.
4. Decline
Yes, you can already imagine it. It occurs when a product is not updated and loses validity.
Investing in advertising campaigns is one of the best strategies to take into account to avoid it, although it is worth noting that the decline is not always negative, as the product may have been conceived to and receive something complementary, thus creating a new cycle.
How does the life cycle of infoproducts work?
Knowing what the life cycle of a digital product is like and understanding its specificities is important due to its differences in relation to the traditional product.
The ends up demanding more from entrepreneurs, mainly who bet and invest in productions for the virtual universe.
The introduction of digital products, for example, can be favored by some tools, such as anticipating the launch of a product on the market.
In addition, the use of digital marketing actions is supposed to help the product to be successful in a short space of time.
For thisor, in a first instance (introduction stage)you should have finished mapping theof the business. This information will help you understand the real need of your audience, increasing the precision of strategic actions, as well as improving the territorial scope of the product.
In the growth and maturity phases, an important point is the use of metrics. Use the correct indicators it will be very useful to your infoproduct and brand.
Below are some important:
- acquisition cost per customer;
- Cup of churn;
- Average ticket;
- lifetime value;
- contribution margin.
Through these indicators, you will be able to identify the most critical points in the performance and alignment of the digital product in relation to the demands of the client, so that you use the data to make the correct changes.
And the million dollar question is…
What to do to keep your digital products updated?
As important as knowing the life cycle of a digital product is knowing what to do to always maintain it on.
1. Have a good brand positioning
Even if you are an individual information producer, it is important to bet on a strong brand positioning. This will give you an edge against the competition and help you create products that are more in line with what your audience expects.
For this, it is necessary to work on marketing strategies, maintain a close relationship with the consumer and offer a discourse that values the continuity of previously established values.
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2. Increase some phases of the life cycle of the info product
Once the CVP is well planned, the possibilities of strengthening the offered item increase, which allows the extension of some phases of this cycle, such as growth. Therefore, marketing strategies are crucial to attract and retain consumers.
Try to create ways to advertise the digital product to keep it on the rise. When you release a new version of a course on-linefor example, also contact customers who have already purchased the previous version.
3. Update side by side with the market
You have to pay close attention to the marketado, to the changes and novelties that arise.
For example, a digital marketing course must be constantly updated due to the insertion of new technologies in the medium and the emergence or strengthening of certain channels.
By the way, when you do, notice what are preferred by your audience (videos, ebooks, lives and others) and tries to provide more interactivity in relation to the previous content.
Thus, students will be able to learn dynamically and better absorb what is being taught, something that reflects the quality of the product.
Invest in constant updating
As you have seen, saturation is a fact in the life cycle of info products, but you can avoid it.
How? Keeping track of its life cycle so that it is easier to identify when to focus on the update and what should be done in each case.
There are no magic formulas (I wish there were!) nor is there a concrete answer or an infallible strategy on what to do so that your digital product has an eternal life in the market and remains there forever, what there are are planned decisions that help to extend the life cycle of a digital product.
We have reached the end, and we hope that this content has been of value.
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