Then the company changed its approach to promotion

[Joywtome231]

For example, initially access to the service was sold as subscriptions, but they decided to make access free. Now the company will receive income from advertisers by placing ads in its application.

It is expensive to attract customers. Sometimes a pivot is carried out to change the strategy of attracting customers. Let's say that due to the high cost of attracting customers, the company is incurring losses and may go bankrupt. In this case, a pivot is a tool for eliminating a problem in the marketing sphere.

Pivot example: Dropbox founders tested all types of customer acquisition, but south africa phone number list they were too expensive. they launched a loyalty program. This is what gave the result.

Pivot is used not only in crisis situations. If you see a free niche or come up with a way to monetize a new product or service, you also pivot. That is, you see new opportunities and make a profit with them.

Here's what Eric Ries says about the reasons for pivoting in his book, The Learn Startup Method for Rapidly Testing Ideas and Choosing a Business Model:


You can learn more about business management strategies in the Telegram channel "Businessovochnaya" . We invite you to subscribe to regularly receive useful materials for entrepreneurs.
Types of Pivot Processes
Pivot increase
Pivot growth is carried out when they want to make one of the elements of the product the main one. The company or startup focuses on the key function that brings the most income. This function is singled out, and an independent product is developed on its basis, changing the concept.