Inside Products: The Importance Of Being First

You see, today's economic doldrums have spurred financial product developers to intensify efforts to woo business. This has spurred them to debut all-new products–ones they think will turn heads (and sales). And, to do so efficiently and effectively, they have turned to a ready allytechnology, still the widely perceived rainmaker for unique design as well as sales and policy support.

Thus, in todays market, you see rollout after rollout of Firsts, many of them festooned with Web site-this and database-that. Its a mad dash to the finish line, computer-style.

But is that for you? Here are some ideas to help you think it through. Theyre gleaned from conversations with contenders in this very scrappy race.

1) Be sure your target market needs, and can afford, your product. Don't bring out a First just because you can. Rather, do it because it's what your clients want. Focus groups and market research will help you here.

2) Be sure you have deep pockets. Being First costs a lot. There is the R&D investment. The systems development. The staffing. The education. The advertising. The seminars. The training and explaining. Etc., etc., etc.

3) Make sure you have the wherewithal to address the problems that come up. Most people seek out Firsts in areas where they have knowledge, but steer clear of them in areas where theyre clueless. In short, make your expertise your safety net.

4) If you say you're first, be prepared to prove it. Your credibility will go kaput if other players roll out something similar at the same time as you and/or in another region. As we all know, any cowboy billing himself as the Fastest Gun in the West, back in the Frontier days, had darned well better be fastest–or he risked sudden death.

5) Encourage "Me-Too" (copycat) players to join you. Its a case of the-more-the-merrier. This brings credibility to your innovation, and greater public awareness, too. If other players don't jump in, consumers or the media might deem the singularity of your product "suspect," thus crimping sales.

6) Keep on the lookout for trouble. You dont need to rain on your own parade, but you do need to protect your innovation from harm as it makes its market entry. Harm can result from many things–confusion about the product, lack of identity, systems problems, low consumer interest, competitive challenges, etc. "The problem is, you don't know what you'll find til you get there," says one expert. His advice: Monitor the rollout closely, and be prepared to shift gears on a dime.

There is no doubt about it: Being first to market is a thrill, not unlike skiing on fresh snow. It awakens excitement in a way nothing else can.

But precious few can get there, or stay there for very long. What then?

That is the time to concentrate on Plan B: The Importance of Being Earnest. By that, I mean, dont get bent out of shape. Approach your situation with the good humor of a friendly competitor, reminiscent of that in the 19th-century comedy of the same title by Oscar Wilde.

But also be Earnest about your endeavors. Show the market you are committed, resilient, and eager to succeed. If you keep it up, who knows, you might one day be First in sales, if not in innovative product launches.

Reproduced from National Underwriter Life & Health/Financial Services Edition, August 6, 2001. Copyright 2001 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.

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