So many founders come to us because they have been doing ‘all the marketing things’ on their own and even though they are proud of how much they’ve achieved and the impact made, they’re tired of spinning on a self-made hamster wheel with hit and miss results with streamlining service suite. 

They want repeatable systems that work for them so they can finally work on their business instead of in it AND receive a consistent flow of clients without taking up more time. 

If this sounds like you, here is one simple thing you can do to streamline your business and marketing efforts. 

Identify which products, services or offers have ‘cannibalised’ another? 

What is Cannibalization in Marketing?

Cannibalization occurs when you have too many offers that are either not distinct enough or are eating up the profits that could go towards your signature offer.

 This often happens when new products or services are introduced without sufficient differentiation from existing offerings. As a result, these new additions compete with or detract from the sales of your flagship products, ultimately reducing your overall profitability.

To identify what products and services may be cannibalizing your profits, we need to assess your service suite or value ladder. Understanding these frameworks will help you pinpoint which offerings might be overlapping or detracting from your primary revenue sources.

A Service Suite Is:

A service suite is a collection of all the products and services that your business offers. This suite encompasses everything from low-cost entry-level products to high-end, premium services. Each item in your service suite should cater to different needs and preferences of your target market, ensuring a comprehensive coverage of the market’s demands.

Key Components of a Service Suite:

1. Entry-Level Offers: These are low-cost products or services designed to attract new customers. They serve as a gateway to your brand.
2. Core Products/Services: These are the main offerings that generate the bulk of your revenue. They should reflect your business’s primary strengths and expertise.
3. Premium Offers: High-end products or services that cater to customers willing to pay more for additional value or exclusive benefits.

The goal of a well-designed service suite is to create a range of offerings that complement each other rather than compete. Each product or service should have a unique value proposition, clearly distinguishing it from the rest.

A Value Ladder Is:

A value ladder is a strategic framework that maps out a progression of offers, starting from low-cost entry points and leading up to high-value, premium services. The idea is to guide customers through a journey, where they begin with simpler, lower-cost products and gradually move up to more complex and expensive offerings as their trust and satisfaction with your brand grow.

Key Steps in a Value Ladder:

1. $ Free or Low-Cost Offers: These might include free trials, e-books, webinars, or other low-risk entry points that provide initial value and capture leads.
2. $$ Mid-Tier Offers: These are more substantial products or services that require a higher investment than the entry-level offers but still provide significant value. They help to build deeper relationships with customers.
3. $$$ Signature Offer: The top of the value ladder, representing your most comprehensive and valuable offering. This is often a high-ticket item designed for your most committed customers.
4. $$$$ High-Tier Offers: Premium products or services that deliver the highest value and require the greatest investment from the customer. These offerings are typically personalized or exclusive.Sometimes this can be an add-on to your signature offer or a stand-alone product that only people who have completed your signature offer can qualify for. 

The purpose of a value ladder is to maximize customer lifetime value by progressively offering more value at higher price points. It ensures a structured approach to upselling and cross-selling, enhancing customer experience and business revenue.

Here is how to identify a service you can remove in your business to streamline your product. 

List All Offers

• Begin by listing every product or service in your service suite, arranged from the cheapest to the most expensive. This will give you a clear overview of your pricing structure and range of offerings.

Describe Each Offer

• Write a one-sentence description for each offer, detailing exactly what is included. This exercise will help you identify any overlap or redundancy among your offerings.

Identify Crossovers

• Review the list to spot any crossovers. Look for similarities in features, benefits, or target outcomes between different products or services. Are there multiple offers that serve the same purpose or solve the same problem?

Compare the List with your profit statements

• Audit your list to pinpoint items that haven’t been purchased frequently or those that you don’t enjoy delivering. These items are prime candidates for elimination. If a product or service isn’t selling or isn’t enjoyable to provide, it’s likely not adding value to your business.

Evaluate Price Categories

• Examine if you have too many offers clustered in one price category. Too many choices at the same price point can confuse customers and dilute the perceived value of each offer.

Assess Perceived Value

• Remember, it’s all about perceived value. Customers are often willing to invest more in an offer that promises real transformation. Consider how each product or service is positioned and whether customers see the value they’re getting for the price.

Make Adjustments

• Based on your findings, decide which items to remove or consolidate. You can combine lower-performing or overlapping items into a single, more comprehensive signature offer. This not only streamlines your service suite but also enhances the perceived value of your top offerings. 

In short, when we work with clients to support them increase their profit margins, grow their business and increase sales, this is one of tools we leverage. 

Want to see more of our proven results and case studies? Read more here.