Got Data? It’s Never Big Enough For Business’s New Demands

Did the title that you’ve got data make you curious? Great! 

Of course, in today’s data-rich environment I’m not really suggesting that you ignore it, rather the opposite! But in working with clients around the world and in numerous industries, I’ve found that many are lost by all the information that is available to them.

In fact it seems to drown out their reasoning of what to do and they remain frozen in indecision. Is this your case? If so, then just follow the steps I detail below and you will soon be doubling, quadrupling, if not 10x the ROI of your data!

 

The Current Situation with Data

Data is everywhere and most organisations are drowning in it! Technology is at the heart of this data explosion and is being blamed for disrupting businesses, but most have simply not adapted to this new information-rich world.

Technology is at the heart of the data explosion and is being blamed for disrupting businesses, but most have simply not adapted to this new information-rich world. #BigData #DataAnalysis #Information Click To Tweet

I admit, a lot has changed in recent years. Consumers are learning how to adapt their behaviours and now trade their personal information for extra benefits. In response companies are changing their business models as their value shifts from products to services, or in some cases, to the sale of the information they gather.

Some organisations are reinventing themselves to take advantage of these changes. Others are ignoring them – at their peril, since they risk becoming the next Kodak, Borders or Blockbusters. If you’re interested in reading more about the US Retail Apocalypse and the 23 big retailers closing stores then I highly recommend this post on Fox Business.

So what should you do, whether you are in manufacturing or retail? Well, I believe that you should start by renovating your business model to take advantage of the countless new opportunities that the wealth of data offers you. And in my opinion, you had better do it sooner rather than later, because your competition almost certainly will!

 

The Opportunity

Yes you have data and information, but if you’re a regular reader of my blog, you know that it’s not enough. You have to turn these into knowledge and understanding, and then into actionable insights. And this can only be done by asking the right questions of your data and information.

If you are struggling to take needed action despite a wealth of information, then this is certainly where you should start making changes – fast!

A 2015 Capgemini and EMC study called “Big & Fast Data: The rise of Insight-Driven Business” showed that:

  • 56% of the 1,000 senior decision makers surveyed claim that their investment in big data over the next three years will exceed past investment in information management.
  • 65% admit they risk becoming irrelevant and uncompetitive if they do not leverage data. This is especially true given that non-traditional providers, like startups thriving on big data processing, are moving into their industries.
  • Although companies realise they desperately need to dig into data analytics to maintain their business position, 45% surveyed think their current internal IT development cycles are not sufficient for new analytics and don’t fulfil their business requirements.
  • Making matters worse, over half (52%) of those surveyed see the speed of their organisation’s insight generation from data analytics as constrained by its existing IT infrastructure.

So what has happened in the past couple of years? Not a lot in terms of usage, but a lot in terms of data gathering. Just check out the graph below which shows the volume of data/information created, captured, copied, and consumed worldwide from 2010 to 2025

Data growth in zetabytes
Source: Statista 2022

Of course big data has been big news for years, thanks to its 5Vs (volume, velocity, variety, variability, value). These were the driving forces behind the need and finally the computing upgrades which made new ways of analysing it all even possible.

This article by Olivia Ryan sums up the “6 ways big data expansion can significantly damage our privacy.” These are the major points which the GDPR is hoping to address, and about time too in my opinion.

Today it’s the EU’s GDPR or General Data Protection Regulation, with its stricter rules, as well as the removal of third-party cookies, which has everyone concerned. It is definitely worth checking out the details here if you are not sure what you need to change by when. And if Google’s changing plans about cookies are of interest, then I suggest you refer to this article. 

Interestingly, there is no equivalent federal law in the US (for now), but that doesn’t mean you can ignore it if your business is based there. Find out more in this excellent article on Forbes.

It’s true that companies do recognise all the threats detailed in the earlier mentioned study, and while startups flourish in every industry, the mastodons of commerce are slow to change, hence the need for GDPR. (see below for an alternative approach to individualised data utilisation)

 

An Alternative Approach

Data comes into its own when used for personalised engagements. However, there is an alternative or complementary approach that some organisations are now using. This is to address global issues such as resource management, water usage or pollution, which certain customers feel passionately about.

 

 

In Conclusion

Coming back to the title of this post, as you can see there is a lot to do before analysing all the data you have. And probably it’s a lot more than you even know about at present, at least from my experience!

You can’t go wrong if you start with the customer and identify what you need to know and understand in order to go beyond their expectations.

You can't go wrong if you start with the customer & identify what you need to know & understand. #CEX #CRM #Customer Click To Tweet

Make a list of all the things you want to know and then see if you have the information to answer them. In many cases you do, it just hasn’t been analysed in a way that makes the solution obvious. That’s when you should review and eventually update your platform and systems.

Doing this any earlier will be like buying a fancy new hammer to crack a nut! What you need to understand is the best way to crack the nut; often times the hammer is fine for cracking if you use it correctly.

 

If you’re drowning in data and thirsting for insights, then we should talk. Contact me here: https://c3centricity.com/contact

and I’ll give you some ideas on how to crack your own nut!

13 Most Inspiring Marketing Quotes and Questions to Live By in 2022

Are you like most businesses? Do you have a plan you are following that will (hopefully) enable you to reach your goals?

In order to meet them, we are often looking to make changes, large or small, in our organisation. At times like these I find it useful to motivate with some inspiring quotes from people much wiser than I. If you are looking for ways to motivate and inspire your own team, then I am sure you too will enjoy these.

This is my selection of great quotes from some of the best marketers around, together with a relevant question to ask yourself for each. If your favourite quote is not included, then please add it to the comments below the post.

 

#1.  “Strategy and timing are the Himalayas of marketing. Everything else is the Catskills” Al Ries 

This quote refers to the Catskills, a province of the Appalachian Mountains, located in southeastern New York and only 1270m high. It compares them to the Himalayas, a range that includes some of the world’s highest peaks, including Mount Everest (8,849m).

It uses this comparison to suggest that to succeed in marketing you have to afront the highest peaks of strategy and timing, and not be satisfied with scaling simple hills. In other words, be in the right place at the right time with the right offer. Simple!

QUESTION: Are you going to upgrade your marketing this year to meet this lofty challenge?

Strategy and timing are the Himalayas of marketing. Everything else is the Catskills. Al Ries #Strategy #Marketing #Brand Click To Tweet

 

#2.  “In marketing I’ve seen only one strategy that can’t miss – and that is to market to your best customers first, your best prospects second and the rest of the world last” John Romero

I love this quote because it refers to knowing and understanding your customers. The best ones, however you define that, come first and your best prospects come second. If you’d like to know if you’re targeting your very best customers and best prospects, then check out the following post: How Well Do you Know Your Customers? 13 Questions your Boss Expects you to Answer

QUESTION: Do you know who your best customers are and everything you should about them?

In marketing I've seen only one strategy that can't miss - and that is to market to your best customers first, your best prospects second and the rest of the world last. John Romero #Marketing #Brand #Customer Click To Tweet

 

#3. “Business has only two functions – marketing and innovation”  Milan Kundera

This post shows the often forgotten importance of marketing to business. I know those of you in sales or operations etc will complain, but if customers don’t know and love your brands then you don’t have a business. It really is as simple as that. I also like that innovation is included, because especially today, customers have become so demanding that we need to constantly upgrade our offers to them.

QUESTION: Does your business value marketing? If not, how can you help them to recognise its value?

Business has only two functions - marketing and innovation. Milan Kundera #Business #Marketing #Innovation Click To Tweet

 

#4. “The wise man doesn’t give the right answers, he poses the right questions” Claude Levi-Strauss

Are you better at asking questions or answering them? Which is more important in your job? Why? A leader doesn’t have all the answers but should surround himself with people who do.

QUESTION: How often do you ask the right questions? What more could you ask and of whom?

The wise man doesn't give the right answers, he poses the right questions. Claude Levi-Strauss #Leadership #Business Click To Tweet

 

#5. “People Do Not Buy Goods And Services. They Buy Relations, Stories, And Magic” Seth Godin

As products and services get ever more similar, the brands that win are those that understand, engage and entertain their customers. Build relationships with your customers by telling stories about your brand origin, and weave in some magic that only your brand can deliver.

QUESTION: What are you doing to share your own stories and brand magic?  

People Do Not Buy Goods And Services. They Buy Relations, Stories, And Magic. Seth Godin #Quote #CEX #CRM Click To Tweet

 

#6. “A Brand Is No Longer What We Tell The Consumer It Is — It Is What Consumers Tell Each Other It Is” Scott Cook

Following on from the last quote, we need to be careful between sharing and telling. Brands should share interesting anecdotes and stories, things their customers are interested in.

QUESTION: How much of your website is made up of things you want to tell the customer? How much of it’s content are stories and information the customer is interested in knowing?

A Brand Is No Longer What We Tell The Consumer It Is — It Is What Consumers Tell Each Other It Is. Scott Cook #Brand #BrandImage #Marketing Click To Tweet

 

#7. “Make Your Marketing So Useful People Would Pay For It” Jay Baer 

The next phase of upgrading your marketing, once you are telling stories and building relationships, is to make it so useful that people would actually pay to have it. Today this includes eBooks, checklists, games, articles and memberships.

QUESTION: How useful is your marketing to your customers? Are you building loyalty by recognising and showing appreciation for their purchases?

Make Your Marketing So Useful People Would Pay For It. Jay Baer #Quote #Marketing #Customers Click To Tweet

 

#8. “Awareness Is Fine, But Advocacy Will Take Your Business To The Next Level”  Joe Tripodi

Awareness today comes in many forms. Awareness of your advertising, activities and promotions, social media posts. Is that what you measure? The problem is that all these metrics mean little if you are not resonating emotionally with your customers. And the only way you’ll know this is when people start supporting, advocating, recommending your brand.

QUESTION: What metrics do you follow to measure your marketing? When and how do your customers recommend you? 

Awareness Is Fine, But Advocacy Will Take Your Business To The Next Level. Joe Tripodi #Quote #Awareness #Advocacy #CRM #CEX #Business Click To Tweet

#9. “We have to dare to be ourselves, however frightening or strange that self may prove to be” May Sarton

No-one is like you. No-one in the past was like you. No-one in the future will be like you. You are unique with your own unique gifts and talents. So why not use them to make your business better? Treat your customers as if they were you.

QUESTION: How do you like to be treated? Use that as your guiding light for how you treat your own customers. Your business will be better off for it.

We have to dare to be ourselves, however frightening or strange that self may prove to be. May Sarton #Quote #BeOurself #Self Click To Tweet

 


If you’d like to know who you are and what gifts and talents you should be using to succeed in your career, then sign up for our free training. 


#10. “We see things as we are, not as they are” Leo Rosten

One of the biggest challenges in business is to see our brands as our customers do. Most of the time we make what we like, advertise and promote in a way that we like and develop new products and services that we like. What we like has no importance, only your customers’ opinion matters when you want to grow your business. So listen to them.

QUESTION: How often do you watch and listen to your customers? Whatever the frequency is, it’s not enough. Do more. 

We see things as we are, not as they are. Leo Rosten #Quote #Realism #Understanding #Perception #SelfAwareness Click To Tweet

 

#11. “Content is anything that adds value to the reader’s life” Avinash Kaushik

Too many websites are filled with information that the brand wants to tell the customer. The best websites do the opposite. They are filled with content the customer wants or needs, and entertains along the way.

QUESTION: How good is your website at giving your customers what they want. If you’re not sure check out this article: From a Good to a Great Website: 9 Ways to Engage More Successfully

Content is anything that adds value to the reader’s life. Avinash Kaushik #WebDesign #Website #ContentStrategy #Content Click To Tweet

 

#12. “It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change” Charles Darwin

You know the world is changing and changing faster every day. The same goes for our customers. What attracted them yesterday only satisfies them today and disappoints them tomorrow. People want novelty and innovation. Make sure you are constantly upgrading your offer, but be careful to do so by adding what your customers want or desire. If you innovate based on your internal skills rather than external needs, your innovations will remain in the 95% that fail.

QUESTION: Is your portfolio filled with winners? Use Pareto’s principle (the 80/20 rule) to continuously evaluate your offers and eliminate the bottom 20%. Then add new offers that respond to customers’ needs of today, or ideally tomorrow.   

It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change. Charles Darwin #Change #Intelligence #Survival Click To Tweet

 

#13. “You can’t just ask customers what they want and then try to give that to them. By the time you get it built, they’ll want something new” Steve Jobs

A golden oldie to finish with. This is reminder that asking customers what they want it not the best way to know what they want. There are two reasons for this. Firstly, as another os Steve’s quotes says, customers don’t know what they want until you show it to them. However, they do know very well what they don’t want and what problems they are facing when using the category.

The second reason is that people are changing so fast that by the time you make what the customer has asked for, they’re already in need of something else.

You can't just ask customers what they want and then try to give that to them. By the time you get it built, they'll want something new. Steve Jobs #Quote #CRM #CEX #CustomerSatisfaction Click To Tweet

 

For even more inspiring quotes, do check out C3Centricity’s resources. There you can find hundreds more quotes, classified by the four foundational areas of a customer-first strategy, namely company, customer, brands and processes: https://bit.ly/3qwTFQa

How to Sell More to Less People: Essentials of Segmentation

Businesses often make the mistake of trying to sell to everyone. Are you guilty of this?

Why is this a mistake? Well, if you try to please everyone you end up delighting no-one. This is why best-in-class marketers work with best-practice segmentations. And targeting the biggest group is not often the best strategy. In fact it rarely is. Read on to find out why.

Your brand needs to appeal to a group of customers who are looking for the solution you are offering. This means that you need to make a choice of who to target amongst all category users. Making a choice implies that you will have to ignore some category users who you could perhaps attract. This seems counter-intuitive and makes many marketers scared. Does it scare you not to try and go after everyone?

It certainly worries many marketers and yet it’s the only way to sell more. Although this may not sound like common sense at first, segmentation actually ensures that you have the best possible chance to satisfy the needs of your targeted customers. Once you are satisfied with your results, you can always go after secondary target groups.

But let’s start at the beginning with the essentials of segmentation.

 

Where to start

When deciding who to target, most companies conduct some sort of analysis. This can be as simple as identifying your users by what you observe, such as young men, older housewives, or mothers of large families. And although these are easy to articulate, you are working with demographics, something every other brand can do as well. It also has the weakness of not truly understanding why your customers are choosing your brand  – or not – over competition.

It therefore makes much more sense, to move on to a more sophisticated segmentation, just as soon as you can. Why? Because it is far more powerful. For example, rather than appealing to “young men”, targeting “those who value freedom and are looking for brands that can provide or suggest this dream” will immediately provide a clearer image of the group. Even if the majority of the segment are young men, the description is far more actionable. Do you see why?

Providing a detailed description of your target customers will always have the advantage of making engaging them that mush easier, because you will be speaking “their language.”

 

Types of segmentation

I mentioned above that you can simply use demographics to segment all category users. But I also alluded to the fact that it is not very distinctive, nor competitive. The sooner you can run a more complex segmentation the better.

The first thing to know about the essentials of segmentation is that there are five main types: 

Segmentation for success

Firmagraphics: This is the most basic and is usually how the industry separates the different types of products and services. For example alcoholic versus non-alcoholic beverages, or still and sparkling, or bottles versus cans.

The consumers of the different types of beverages are easy to identify since the products they buy are too. As the grouping is based on the consumers of the different products, this is not a very useful segmentation for marketing, since consumers can appear in more than one segment. And as you will see below, one of the criteria of a good segmentation is that customers can only appear in one segment. However, product segmentations are useful for operations, sales and retail.

Demographics: As already discussed in an earlier post called “The 3 Rules of Effective Targeting”, the deeper your understanding of your target customer is, the more likely it is to provide you with a competitive advantage. I think the example I mentioned at the beginning makes this crystal clear, no?

Geographics: Included here are all the possible descriptions relating to your customers’ geography, such as country, city, language etc. Depending upon whether you are targeting a specific geographic area, or a type of place based upon weather, languages spoken etc, this type of segmentation will help you to go beyond simple demographics and be more precise in the people you are targeting.

However, because it is grouping of people by geography alone, it is assuming that all those in a group will be similar. As we all know, although there are zones in cities and countries where inhabitants are similar – many cities have an area called China Town for example – it is in my opinion dangerous to think that they will all behave and purchase in the same way. That’s why the next level of segmentation is more powerful.

Behavioural: At this level of segmentation, we are looking more at how customers behave, rather than simply who they are or where they live. Types of behaviour we might include could be what solution they are looking for based upon the benefits of a brand, how, when and where the customers buy, or where they are in terms of lifecycle or engagement with a brand.

With this segmentation, we are now grouping customers by what they do, so we at least know that they are behaving in a similar way. However, it is assuming that they behave for the same reasons, something of which we can’t be sure. That’s why the next level of segmentation provides the ultimate and most actionable clustering of customers.  

Psychographics: This is amongst the most sophisticated and complex segmentations you can run. But going this deep into your understanding of your customers will ensure a competitively strong position for your brand. Included here are grouping category users by values, attitudes and opinions, interests, personality or lifestyle. I think it is very clear in looking at this list, how your segmentation using one or more of these criteria would produce the most detailed and in-depth understanding of your target customers.

Once you’ve run your segmentation and chosen the most relevant and profitable target group (I’ll speak more about that in a moment), you still need to do more. You see segmentation alone is insufficient for successful growth. As soon as you know who you are targeting, you need to then get as close as you can to your target customers, in order to understand them as deeply as possible. This should be done through regular listening and observation.

 

The MIDAS touch

Whatever method you use for segmenting and choosing your target customers, the results of your exercise of customer grouping needs to meet the following five conditions, known collectively as the MIDAS touch.

Whatever methods you use for segmentation and choosing your target customer group, the results must meet the five conditions, known collectively as the MIDAS touch. #Segmentation #Grouping #Brand #Marketing Click To Tweet

Measurable: The individual groups need to be clearly defined and quantifiable using KPI’s such as size, market share, value share.
Identifiable: Each segment must have a distinct profile and each customer must be attributed to only one segment.
Definable: Every cluster must be easy to describe and share with others so that you have mutual understanding of each of them.
Actionable: The groups must be easy to identify, in order to be able to target your actions and communications to them.
Substantial: The chosen segment must be financially viable to target, which means that it should, in general, be stable or growing, and durable over the long term.

All good segmentations or clusterings will fulfil all five of these key conditions, or at least they did until recently. Today the last condition is being adapted thanks to personalisation. It is more important to assess whether or not it is sustainable rather than substantial. Which term is more relevant in your own industry?

In evaluating your segmentation with MIDAS do you look for substantial or sustainable? Which is more relevant in your industry? #Brand #Marketing #Segmentation Click To Tweet

Even with this change, it is still easy for you to evaluate your segmentation, to ensure it is both valid and robust. If it does not meet these five conditions, then you will struggle to activate it and target your actions to your chosen group of customers.

As already mentioned, understanding your target as completely as possible is vital to the success of your business. I would, therefore, suggest that you review your own segmentation and decide how it can be improved. (There’s always room for improvement, isn’t there?)

This may mean simply completing the information you have on each segment. Or it may mean running a whole new segmentation exercise. However, it is definitely worth getting your segmentation and target customer choice right. After all, they form the very foundation of your brands’ customer-centricity.

 

A solution for those with few resources

If you do not have the time, money, or expertise to run a detailed segmentation study, you can still make an informed decision based on simple criteria. These could be gathered by mere observation, an analysis of who your purchasers are, or a review of contacts from your customer services group – taking into account that these may be biassed.

Once you have identified the different types of users you are attracting, you can then decide which is the most important group for you to target. You can do this by simply choosing the largest group, but as already mentioned large doesn’t always equate to most profitable. For this reason, I suggest using what is often referred to as the Boston Matrix. This analysis was first developed in the 70’s by the Boston Consulting Group. At the time, the matrix was created to help corporations analyse their business units and was based on market growth and relative market share.

Today this scatter plot is created using various elements to make up the two axes (see example below). While the criteria you use for each axis can vary, this simple analysis has the advantage of being able to be further refined over time, as you get more information.

 

Choosing the criteria for the axes

The two axes you specify for the Boston Matrix can be as simple or as complex as you like. Obviously, the more criteria you use, the more accurate your analysis is likely to be. Examples of the criteria you can use include:

Attractiveness: Segment size, segment growth rate, segment value, competitive environment, profitability, industry structure, distribution, pricing, environment, seasonality, how well the group fits the company or brand – or vice versa.

Ability to win: market share, differentiation, brand strength, distribution strength, company profitability, customer appeal, customer loyalty, your media mix, your reputation, your production skills, management strength. 

You can use any or all of the above suggestions for creating the two axes. If you use more than one criteria per axis, you must decide whether to average or weight them.

C3Centricity provides an automated tool for calculating the two axes and then positioning segments on them. This is made available to all participants of the Customer Centricity Catalyst Classes, which you can learn more about here.  

 

Choosing the actions to take on each segment

Sell more through better customer targetingOnce you have positioned the different segments or groups of customers on the axes, you will easily see what needs to be done for each group:

Target: these are your core customers as they are both attractive to the business and easy for the company’s product or service to attract them. Therefore, they need to be protected from possible attacks by the competition.

Convert: these customers can be attracted to your product or service but your ability to win them is currently low. To win these customers you probably need to consider improving one of the elements of the mix in order to attract them.

Grow: your product or service can easily win these groups but perhaps they are not as profitable as you would like. This might change, so it is important to review them from time-to-time or develop a different strategy to attract them.

Ignore: many organisations struggle to make the decision NOT to go after a group of category customers. But if you have neither the product / service nor the segment conditions that would be profitable for you, why spend time, money and energy going after them?

This simple analysis can be made as sophisticated as you like through your choice of criteria for the axes. That is why despite being over fifty years old, it continues to be used by many organisations for their brands. 

 

Conclusions and next steps

All businesses want to sell more. They also want as many customers as possible. And do all this while growing their profitability. However, as we have seen, trying to sell to everyone is unlikely to meet with the success you hoped. But now you have the solution.

Choosing the right group of customers to attract with your product or service is the essential first step. But so is then doing everything you can to understand your chosen segment as deeply as possible. Truly customer centric organisations excel at doing both; do you? 

Truly customer centric organisations excel at both identifying the best group of customers for their offer and understanding them as well as possible; do you? #Segmentation #Brand #Marketing Click To Tweet

Need help in segmenting, identifying or understanding your target customers? Let us help you catalyse your customer-centricity. Contact us here or check out our training offers here

C3Centricity used an image from Denyse’s book “Winning Customer Centricity

This post is regularly updated from the original version first published on C3Centricity in 2013.

Why Technology Won’t Help You Understand Your Customers

Were you surprised to read the title of this post? Do you believe that using technology to understand customers is the only way today? Then let me explain why I believe it’s not quite that simple. 

In today’s data-rich environment I’m not really suggesting that you actually ignore data nor technology! However, in working with clients around the world as well as in numerous industries, I have found that many are lost by the wealth of information that is available to them.

In fact it seems to drown out their reasoning of what to do with all the data and they remain frozen in indecision. Or worse, they invest in the latest platforms and systems in the hope that using technology to understand customers will help them with their knowledge void. Is this your case? If so, then just follow the steps I detail below and you will soon be doubling, quadrupling, if not getting 10x the ROI from your data.

 

The Current Situation with Data

Data is everywhere and most organisations are drowning in it! Technology is being blamed for disrupting businesses, but in most cases these companies have simply not adapted to this new data-rich world.

If you're drowning in data, perhaps you have still not adapted to today's data-rich world. #BigData #Analysis #Customer #CustomerUnderstanding Click To Tweet

I admit, a lot has changed. Consumers are adapting their behaviours to the trading of their personal information. Companies are changing business models as their value shifts from products to services, or even to the sale of the information they gather.

Some organisations are reinventing themselves to take advantage of these changes. Others are ignoring them – at their peril – since they are at risk of becoming the next Kodak, Borders or Blockbusters. And of course the latest covid-19 epidemic will hasten many others to unfortunately follow suit in the coming months.

If you’re interested in reading an analysis of the US Retail Apocalypse and the 23 big retailers closing stores then I highly recommend this post on Fox Business from last year. No doubt it will need updating in 2021 when the fallout from the current pandemic becomes clearer.

So what should you do? Well, I believe that you should start by renovating your business model to take advantage of the countless new opportunities all the data and new technologies open up for you. And in my opinion, you had better do it sooner rather than later, because your competition will almost certainly be investigating ways to make use of it all!

 

The Opportunity

Yes you have data and information, but if you’re a regular reader of my blog, you will know that you have to turn these into knowledge to understand your customers. And then develop insights and actions. But this can only be done by asking the right questions of your data and information. The latest technology is not going to make up for your lack of thinking!

If you are struggling to take needed action despite a wealth of information, then this is certainly where you should start making changes – fast!

A 2015 Capgemini and EMC study called “Big & Fast Data: The rise of Insight-Driven Business” showed that:

  • 56% of the 1,000 senior decision makers surveyed claim that their investment in big data over the next three years will exceed past investment in information management.
  • 65% admit they risk becoming irrelevant and uncompetitive if they do not leverage data. This is especially true given that non-traditional providers, like startups thriving on big data processing, are moving into their industries.
  • Although companies realize they desperately need to dig into data analytics to maintain their business position, 45% surveyed think their current internal IT development cycles are not sufficient for new analytics and don’t fulfill their business requirements.
  • Making matters worse, over half (52%) of those surveyed see the speed of their organization’s insight generation from data analytics as constrained by its existing IT infrastructure.

According to @Capegemini, 65% of executives admit they risk becoming irrelevant & uncompetitive if they don't leverage data. This is especially true given that non-traditional providers, like startups thriving on big data processing,… Click To Tweet

So what has happened in the past couple of years? Not a lot in terms of usage, but a lot in terms of data gathering; just check out the graph below from Kleiner Perkins for current and estimated growth of data volume. It is expected to more than triple over the coming five years.

 

 

Of course big data has been big news for years, thanks to its 5Vs (volume, velocity, variety, variability, value). These were the driving forces behind the need and finally the upgrades in computing power that made it possible to adopt a new and significantly faster way of analysing it all.

This article by Olivia Ryan sums up the “6 ways big data expansion can significantly damage our privacy.” These are the same major points that the GDPR hoped to address.

The EU’s GDPR (General Data Protection Regulation), with its stricter rules that came into force last year, focuses on many of the data privacy issues that have people the most concerned. It is definitely worth checking out the details here if you have still not made the necessary changes within your own organisation.

Interestingly, there is no equivalent federal law in the US (for now), but that doesn’t mean you can ignore it if your business is based there. Find out more in this other excellent article on Forbes.

It’s true that companies do recognise all the threats detailed in the earlier mentioned study, and while startups flourish in every industry, the mastodons of commerce are generally much slower to change, hence the need for GDPR. (see below for an alternative approach to individualised data utilisation)

 

An Alternative Approach

Data comes into its own when used for personalised engagements. However, there is an alternative or complementary approach that some organisations are now using. This is to address global issues such as resource management, water usage or pollution, which certain customers feel passionately about.

 

In Conclusion

Coming back to the title of this post, as you can see there is a lot to consider before using technology to analyse all the data you have. And probably it’s a lot more than you even know about at present, at least from my experience!

You can’t go wrong if you start with the customer and identify what you need to know and understand about them, in order to go beyond their expectations.

You can't go wrong if you start with the customer & identify what you need to know & understand about them. #CEX #CRM #Customer Click To Tweet

Make a list of all the things you want to know and then see if you have the information to answer them. In many cases you do, it just hasn’t been analysed in a way that makes the solution obvious. That’s when you should review and eventually update your platform and systems, not before.

Doing this any earlier will be like buying a fancy new hammer to crack a nut! What you need to understand is the best way to crack the nut; often times your current hammer is fine for cracking if you use it correctly.

 

If you’re drowning in data and thirsting for actionable insights, then we should talk. Click the button below and I’ll give you some ideas on how to crack your own nut!

This post was first published in March 2018 and has been updated regularly to reflect the latest ideas, research and opinions.

 

 

The Secrets to Growth. How to Get New Customers

This shorter than usual post was inspired by a great question on Quora about how to get new clients. Although my original answer was for a web design company, most of my ideas are relevant whatever industry or profession you are in. I therefore wanted to share my answers to the question in the hope of being of help to businesses large or small.

First let me say that if you’re struggling to grow, then you’re not alone! I imagine that this won’t make you feel much better. But please remember that business, especially entrepreneurship and freelancing, is for those who are strong of mind and spirit. There are going to be days, weeks or maybe even months of highs and lows. However, these shouldn’t make you question why you do what you do. For me, as a longtime entrepreneur, it’s the freedom that more than makes up for a day or two without a new client signing me up. And if you work in the corporate world, then it is the chance to impact the lives of thousands or millions of people for the better.

Wherever you work, one thing we all have in common is the need and desire to grow the business and get new customers and clients.

A few ideas for you to think about and above all to action!

Whatever ideas, tips, suggestions you may read or hear about, it is only in the action that you will make a difference. This article is no different. So when you’ve finished reading the post, stop reviewing your emails or surfing the web, and start planning your actions. We all go looking for answers, but only a few of us act on them when we find something useful. Be the exception and beat the competition!

As an aside, this is why my book “Winning Customer Centricity: Putting Customers at the Heart of Your Business – One Day at a Time” (includes link to download some sample chapters) is in a radically different format from every other business book out there. It has 50 chapters, but each one is only two pages long! Two pages of objectives, actions, examples and ideas, as well as an inspiring quote and a fun cartoon. It finally makes learning enjoyable again. Isn’t that what we all want? Now back to the answers.

1. Who were your Past Customers?

Let’s start with where you are today, or were yesterday. What were your past customers’ similarities? Go out and find more like them, using the same method they used to find you.

Was it word of mouth? Then ask for recommendations from them and your closest network. Was it through LinkedIn? Then make some new connections that are similar to them. Reach out to a segment of those who are most like your past customers and you think may have similar needs.

Any of these ideas will bring you more new potential customers than most advertising spend ever will. This is because you are speaking directly to the type of people who are most interested in what you have to offer. Obvious really, but we too often jump on the bandwagon of what big brands and “gurus” are using. You’ll have time for advertising when you are one of them. Until then, spend your money more wisely, when you want to get new clients.

2. Get Intimate with your Current and Past Customers

Ask your current customers, or those for whom you have just finished a project, if they need anything else? Ask them if they know anyone else who may need your services. They have just seen you in action and assuming they are happy with the result, they are probably happy to share their experiences with others. If they don’t have any ideas, then at least get a quote from them that you can share on your website. Social proof remains one of the best ideas to influence people who are unsure about hiring you, so you can get new clients.

Then analyse the profiles and develop a persona of your ideal client, if you don’t already have one. You can use my 4W™ template to help you with this task. Remember that the 4Ws stand for WHO, WHAT, WHERE and most importantly of all WHY. Often it is in the WHY that you will get ideas about who and where else you can go looking for work. Chase the problem and offer a solution. Most entrepreneurs and businesses make the mistake of chasing customers and fail to connect with them.

Chase the problem and offer a solution. This is the most efficient way to find potential new customers. #CustomerFirst #CEX #Customer Click To Tweet

3. Go Online and Find People Talking about your Category or the Type of Work you do

Quora is a good place to start. Answer questions so you get noticed and appreciated for your wisdom. (Hope I’m impressing you with my ideas here! If not then please leave a comment and tell me what I could do better)

Next check the usual social media platforms and again find discussions about what you offer. Reach out to anyone who says they’re frustrated, angry, unhappy etc. Understand why they are saying this and then offer them a solution.

That’s a surefire way to get new clients, because we all love people who come to us with solutions rather than problems, don’t we? And we forget that many executives haven’t got someone else to turn to. Be that person.

We all love people who come to us with solutions rather than problems, don't we? Be that person. #CustomerFirst #CustomerSatisfaction #CEX Click To Tweet

We forget that many executives haven't got someone else to turn to when they have problems. Be that person. #Executive #CEO #CMO #ProblemSolution Click To Tweet

4. Offer a Free Analysis of Potential Clients’ Websites

This was in answer to the industry in which the person who asked the question on Quora was working. I do this a lot, as reviewing a potential customer’s website is a great way to see just how customer centric they are – or not! (If you would like a free analysis, just add your name and website URL below and I’ll send you my thoughts) But you can offer potential clients the chance to experience your work for free in many other ways.

Free is one of the most popular words on the internet, so why not make use of it? But don’t overload your response by providing too much detail. Give too much and they won’t need to hire you, they will be able to follow your suggestions and do it themselves. (And I stand guilty of this, I know! I always like to over-deliver.)

Provide a few ideas about things that need changing, but don’t give the solution too. End with a comment like “There’s a lot more I could help you with to make your website shine, but it would be too long to write here in detail. Let me know if you’d like to chat.” Then pitch them your solution when you have the person on the line.

I use this myself. I offer the mini C3C Evaluator™ tool for free and charge for the full quiz. People who try the mini version still get tremendous value and clear actionable results from it, but of course the full tool would provide much more depth – plus a free advisory session with me to discuss next steps. All this for $99 when my hourly rates are more than five times that! I’m sure you can see that they are getting a bargain, and me a very happy potential new client!

5. Frequent Outreach

Perhaps the best tip of all, is this last one – for now; I have many more I can share of course. (See what I just did?!) Go back to everyone who responded to your outreach but said no. Perhaps it was no then, but could be a yes now. However, don’t pester them with daily or even weekly emails. Wait a month or more before reaching out again. Also, go back to everyone who didn’t respond. These days, we receive so many messages that we sometimes delete without reading, or they end up in our spam folder. Send a second and third follow-up email, again waiting a few weeks or even a month or two between each.

So there you have a few ideas on how you too can grow and get more clients. Hopefully these five suggestions and tens of ideas will spark some ideas for action in you for your business. PRINT THIS OFF AND READ IT whenever you are in a low spot on your business curve. It will inspire you to take action in those moments where we feel frozen in panic and lacking in ideas.

And of course, you can always reach out to me for a whole lot more. I’m Denysech on Skype. However, if you do connect there, please explain why you are connecting. I get anonymous connection requests every day – and refuse all those from people I don’t know! Thanks.

Three Clever Ways to Know the Competition Better

What is the secret to success in business? That’s easy! It’s how well you know the competition.

Alright, maybe this is a slightly over-simplified perspective, but it always surprises me how many companies work with a primarily internal focus.

I have written many posts about knowing your customers, such as “Why Customers Are The Answer To All Your Problems (If You Ask the Right Questions).” Watching and listening to them in order to fully understand their rational needs and emotional desires is a great – and free! – way to start.

But today I would like to speak about doing exactly the same thing for your competitors. If you are going to succeed in attracting their customers away from their products and services, then it would make sense to know them as well as you do your own.

Here’s a simple three-step process to do so. 

 

Encourage employees to use competitive products & services

Know the competition better by trying their products and services.In most organisations today, using competitive products is still frowned upon; after all, we make the best don’t we, so why use those of other companies?

However to challenge and beat the competition you have to intimately know what you are up against. Regular contact with competitive products will encourage your employees to evaluate your own offering. They will also be encouraged to suggest competitors’ strengths and weaknesses that were perhaps not evident before. It will also ensure that you are rapidly aware of any improvements made by the competition. You won’t get left behind and find yourself suffering from declining sales due to competitive improvements of which you are unaware.

To challenge & beat the competition you have to intimately know what you are up against through regularly experiencing their product and service offers. #marketing #competition #brand Click To Tweet

This intimacy with competitors’ products and customers should be requested of employees at all levels, by being one of their annual objectives. Of course, in some industries this might not be possible, due to the selective nature of the product or service, but certainly for most consumer products and service companies, this can easily be done on a regular basis.

Now encouraging people to use competitive products is easy to say, but you should also be prepared to invest in it, by paying for your employees to experience them. It would be unfair, and would certainly be resented, if your people had to spend their own money to make such experiences. This knowledge gathering should be seen as an investment by your organisation, of at least equal value to offering your employees discounts on your own products and services.

Why don’t you start a similar process and add these experiences to everyone’s annual objectives? It’s a great way, and a free one at that, to know the competition better than you do today.

 

Make a Library of Competitive Products and Material

KNow your competition better by sharing what you knowIn one of my previous positions, the company had an incredible competitive library. This included every single competitive product that was available from all around the world, classified by country and organised by segment.

Everyone found this library extremely useful, especially when discussing such topics as shelf impact, packaging or in trying to understand our competitor’s portfolio strategy.

However, it was managed by the marketing services team and was hidden away in the lower ground floor where people rarely passed by. Additionally, the packs were emptied of their contents, to avoid infestations of vermin and insects, so people never got to try the products.

It would have been even better had the products been displayed in a location that was easily accessible to everyone. In addition, the products should have ideally been sampled before the packages were emptied of their contents. That said, they still remain one of the few companies I know that have been observing and following their competitors in such a consistent way for decades. As you can imagine, they were always ahead of the market and up-to-date with their competitive intelligence!

Stay ahead of the market & up-to-date with what you competitors are doing with a competitive library of products and communications material. #brand #marketing #communications Click To Tweet

Another client of mine has made a library of communications material. Their advertising agency is of course the major source of the samples, but employees who travel are also encouraged to take photos of ads and promotional materials which are then added to the library. You would be amazed how inspiring it is to review this work whenever a group is discussing their own advertising and promotions. They avoid duplication, get great ideas from countries to which they don’t normally have access, and can again take their customers’ perspective when comparing the samples with their own work.

What could you do to make your competitors’ products and communications more easily accessible to your employees? If you’re serious about wanting to know the competition better than you do today, you have to stay on top of what they are doing at all times.

 

Understand your Competitors’ Customers too

Observe to know the competition betterThis same curiosity to know your competitors’ products can also be used to know and better understand your competition’s customers as well.

When your employees go out to observe your own customers, they should also pay attention to those people who are not using your products or services. In this way they can gather additional information that can then be compared with your knowledge of your own customers.

Whether it is getting a better understanding of your competitors’ products and services or the people that use them, the information accumulated must be stored and shared internally to be of any benefit. Some companies organise weekly or monthly sessions where people from different departments can share their latest knowledge and observations. For more ideas on how to share effectively read “Knowledge sharing and how to WOW!” 

Other companies organise customer connection sessions where teams of employees from different departments – with differing perspectives – go out together with a task to complete or a question to answer. These could be for example:

  • How, where and when do people use our product or service?
  • What is their biggest frustration in shopping for the category?
  • If they could make one change to our major competitor’s product, what would it be?
  • What differences are there in the way the category’s brands are displayed?
  • Which social media channels are most popular with category users?

Employees gather ideas and information by first observing and only afterwards asking questions for clarification purposes. Upon their return, the teams can meet up to share their ideas and learnings, as well as to discuss the impact of their findings and agree on what actions if any need to be taken. For more details on how to observe customers, whether your own or those of your major competitors, read “Five Rules of Customer Observation and Why it’s Hard to Do Effectively.”

I have witnessed these customer connection sessions being run in countless organisations. Every single time I see just how excited and energised employees get about improving the way the company makes, packs, sells or communicates its products and services.

Isn’t it time your organisation got closer to your customers and those of the competition? 

 

These are three ways you can easily and quickly know the competition better than you do today. Do you have other ideas that you’d like to share? I’d love to see your comments below. 

Have you run any such customer connection exercises, or built a competitive library of products in your own organisation? If so please share your experiences too.

For more ideas on how you can know the competition even better, why not organise one of our 1-Day Catalyst Training Sessions? We have them on many areas of brand building, so you are sure to find exactly what you need to inspire and energise your team. Check out and download our brochures here. If you would rather talk through your needs first, then feel free to book time in my calendar. 

This post is an update of one that was first published on C3Centricity in 2011. All images in this article are from the book “Winning Customer Centricity – Putting customers at the heart of your business – One day at a time.” 

How Well Do you Know Your Customers? 13 Questions your Boss Expects you to Answer

Be a true leader; share this post with the members of your team who need the inspiration and support.


Your boss expects you to be able to answer all his questions and especially to know your customers. Here are the 13 things your boss is likely to ask you and a handy Checklist to prove to him that you know your customers better than he realises.

Everyone speaks about customer centricity and the importance of the customer, but just how well do you know yours – really? The following is a checklist of 13 facts you need to be able to answer in order to know your customers as well as you should.

As you read the post, keep tabs on your answers and share your final score below. I’m offering a personal 50% discount code to spend in store for everyone who publishes their score here in July 2018. And if you’re the boss, I’d love to hear how well you think your team would do – 100% of course, no?!

 

 

#1. Who is your customer?

C3Centricity how well do you know your customerOK I’m starting off slowly, but do you know who your customers are? Not who uses your category, but who the people are that actually buy your product or service today? How much do you really know about them?

Their age, gender and location are the basics, but there’s a lot more you need to know about them. Check out12 things you need to know about your target customers for more on what you need to know to be able to describe them in the depth your boss expects.

The C3Centricity 4W™ Template is a great resource for storing all the information you have on your customer. Download a free copy and watch the related videos HERE.

 

 

#2. What business are you in?

Although this refers more to the category than the customer, it is important to ensure you are looking at it through the eyes of your customers. Many organisations are working with industry definitions rather than customer ones. What about you? If you want to know your customers, you need to understand what category they think they are buying.

This is one of the essential elements you need to understand in order to know your customers deeply. It is something that many organisations don’t take the time to clearly identify, which results in an incorrect appreciation of their market and competitors. By not correctly identifying the category you are in, or plan to enter, your innovations will also lack the success you are hoping for.

Many organisations are working with industry definitions for their category rather than customer ones. They are losing sales! And you? #CEX #Customer #Category Click To Tweet

For instance, are you in the food business or the pleasure business, beverages or relaxation? One of my clients wanted to launch a fruit flavoured soft drink and thought they were competing with other soft drinks. When we worked together we discovered that they were actually competing in the energy drink business!

How many of your brands are not competing where you thought they were? See How to Innovate better than Apple for more on this topic.

 

 

So there’s my 13-point “Know your Customer” checklist to enable you to know your customers well enough to answer any question your boss may ask of you.

I suggest you go back to the top and revisit each point and answer them truthfully. By reviewing all 13 I am sure that your thoughts will have changed or at least been modified as a result of this new perspective.

And if you yourself happen to be the boss, why not ask your team how many they can answer? Let my know your score below; be the first to confirm that you can answer all 13!

 

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If you or your team can’t answer all 13 questions, I have a solution. Book a 1-Day Catalyst training session and be amazed at the progress & changes!

Check out our Latest Training Courses.icon

 

 

This post is based upon an article first published on C3Centricity in 2013.

 

 

A Customer-First Approach to Successful Innovation (and 3 Secrets Shared)

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Whether you believe that 60% of new product launches fail, or the number is 80% or 95%+, the truth is that successful innovation is rare. Why is this? Read on for my own ideas of the reasons and propositions for some simple solutions.

Last year I wrote a highly popular post on “Improving Ideation, Insight & Innovation: How to Prevent Further Costly Failures.” In it, I spoke about the importance of starting the innovation process with customers. I also mentioned that it should be a virtuous circle rather than the funnel that most organisations still use today. 

This time, I want to examine the role of the customer in successful innovation. And why they should actually have a prominent position throughout the process.

 

Start with the Category rather than (just) the Customer

Every customer-centric organisation should start their processes with a review of the customers they are looking to please. But to do this, the first step to both insight development and successful innovation is to identify the category in which you are, or want to compete. Especially when looking to innovate, it is vital to identify what business you are in.

Now you probably can immediately answer that question but would you be right?

A recent client of mine was looking to launch a juice flavoured soft drink. They naturally (?) thought they would be in competition to juices. When we dug deeper, using our “Home or Away™” decision tool, we found they were actually competing with energy drinks for athletes!

Another practice I use is to zoom in or out when looking at a category, in order to identify new opportunities. Today’s technological world is forcing many organisations to take another look at their complete business models – whether they like it or not!

  • Telecoms have become geolocalization data providers to other industries.
  • Pharmaceuticals are being forced (?) to move from treating illness to maintaining wellness.
  • Food companies are moving into nutraceuticals, concentrating the health benefits of certain foods. (have they really only recently understood that our health comes primarily from the food we eat?!)
  • Tobacco companies are reinventing personal pleasure systems with e-cigarettes and other tobacco replacement products. In fact, André Calantzopoulos, Philip Morris International’s CEO recently predicted a “phase-out period” for cigarettes.
  • Alcohol providers are turning more and more to lower and non-alcoholic drinks trying to keep up with the interest in wellness. They have understood that whereas drinking is a social behaviour, most people no longer include getting drunk with that sociability.

From these examples, it is clear that most companies could benefit from a re-evaluation of their assumed category, to see whether it has or will change in the near or longer-term future.

Once the category is defined, it becomes much easier to identify the correct customer segment to target. Of course, you still need to get to know them through customer connection sessions. And then complete both a customer persona and journey map for them. (You do have these don’t you?)

 

Your business is or will change – fast – so don’t depend on your skills alone

One of the problems I see when I first start working with a new client is that they start their innovation process from their strengths, their technical and product skills. While this may deliver quicker introductions, it is more likely to produce renovations and certainly not ground-breaking innovations.

This is such a standard “no-brainer” way of innovating that many companies find themselves out of business as a result.

  • Kodak thought it was in the photo business and not in the memory and souvenir business. They consequently lost out to digital, despite having the technology
  • Borders thought they were in the print book business rather than the storytelling business. As a result, they lost out to Kindle, despite a late reaction with the launch of Kobo. For now, Barnes & Nobles have managed to join the race with their Nook, but for how long? It will be interesting to see whether Amazon’s quiet expansion of its physical bookstores will support or sound the death knell for other outlets.
  • Blockbuster video rental lost their dominance of the home entertainment industry to streaming options like RedBox and Netflix.

These are a few examples of businesses that have changed, leaving the category leaders high and dry with no-one to blame but themselves for their lack of scenario planning. (This won’t happen to you, will it?)

Music trends on and offlineAnd what about AI and VR and their impact on TV,  gaming, music today?

Speaking of which, look at the graph on the right which shows the incredibly fast change from offline to online music. In less than ten years online passed offline and all but annihilated it!

This is how fast and well prepared all businesses need to be today.

Many industries have been cloned into totally new businesses as a result of technology and new customer priorities.

As already mentioned, Telecom companies now make more money selling geolocalization data than they do selling phones and lines.

So what about some other industries that are being impacted by changes in customer behaviour and preferences?

As just one example of this, Food companies must now adapt to delivering family time, not just ready-made meals. There has therefore been an explosion in meal kits because families want to eat better and even prepare together.

 

The future of the future

But enough about the past and present, how can you prepare for the future and have successful innovations? What new areas are some of the larger online companies buying into today and why?

Google has gone from Internet-related products and services to hardware such as Pixel smartphones and Google Home, an Amazon Echo-like device. It has also expanded into a multitude of other industries, through partnerships and investments. These include energy, AR (augmented reality), VR (virtual reality) and eye-tracking. It’s clear that they intend to stay up-to-date if not ahead of fast-moving trends and be ready to take advantage of them. Read more on Wikipedia.

Perhaps in preparation, in the last year or so Google has reorganised its various interests into a conglomerate called Alphabet. Google remains the umbrella company for Alphabet’s Internet interests, but this restructuring no doubt announces more to come.

Virgin has gone from airlines, media and entertainment, to travel, health and aerospace. You can read about all their industries and investments on Wikipedia.

Amazon has gone from an online bookstore to the general retail of a vast selection of products. Today it is testing bricks and mortar stores for both books and general groceries. You can again read more about this on Wikipedia.

Facebook started as a social media and networking service. One year ago, its CEO Mark Zuckerberg revealed his ten-year vision, centred around artificial intelligence, global connectivity, VR and AR. Read more on Wikipedia.

Tesla started in the automotive industry but has since moved into energy storage and residential solar panels. Today it is advancing into underground high-speed transport and space travel.

All these examples show the importance of being ready to adapt to fast changes impacting many industries at lightning speed. We no longer have the luxury of time to wait, watch and learn as we once did. Future scenario planning is the only way to be ready for all eventualities and to be able to quickly jump into any new opportunities before our competitors do.

 

Your next steps to future-proofing your innovation

Some of my clients understand that they are not as well-prepared as they need to be for successful innovation. In my training course I propose many different ideas; here are just a few of them:

#1. Working with new innovation levers

As already mentioned, most organisations start innovating from their past successes and current skills. While this is certainly quick, it is unlikely to lead to successful innovations. Why not challenge yourself to look at your business from a new perspective? 

Challenge yourself to look at your business from a new perspective. #innovation #Business Click To Tweetsuccessful innovations come from using multiple levers

The diagram on the right is a simplified example of the innovation wheel that I use in brainstorming sessions with clients who are tired of thinking within their boxes.

A personally adapted and developed wheel is a powerful tool to get people to think differently about their brand, category or offer. The brand expansion it encourages has seen brands like:

  • Gerber and Purina move into insurance.
  • Nespresso move into china and chocolate.
  • Mars move into ice cream.
  • Vicks (P&G) move from various cold remedies into a sleep-aid.

What all these examples have in common is a deep understanding of both their customers and their own brand image.

 

When one or both of these are missing, you get epic failures like the examples below:

Coca-Cola Clothing: while it may work for sponsorships and promotions, clothing didn’t work for them – this time around?

Coca-Cola clothing nor successful innovation
Image source: eBay

Zippo perfume for women: Zippos got it spectacularly wrong with this offer on many fronts. Smoking and especially Zippo lighters have very masculine images. Replacing the wonderfully exotic and luxury glass bottles of perfume by this was never going to work!

Zippos perfume not successful innovation
Image source: Fragrantica

 

Colgate frozen food: The only thing that frozen entrees and toothpaste have in common is that after the first you need the second! From that to expecting consumers to make the jump from minty mouths to chicken was just too much!

Colage entrees not successful innovation
Image source: Marketing Directo, Madrid

 

 

#2. Zooming out for brands and categories

When you are successful in one category, it can be tempting to extend into others. However, this needs to be done after careful thought. Go too far from the parent brand, as the above examples did and you’ll be doomed to failure. Stay too close and you’ll not benefit from anything more than a mere renovation.

Will BabyNew be a successful innovation?
Image source: BabyNes

Companies which expand successfully are those that build on their strengths, whether image, position or technical know-how. One example I like to share of a successful innovation using this idea comes from Nespresso’s owner Nestle.

They expanded from capsules for coffee (Nespresso) into capsules for both hot and cold drinks (Dolce Gusto).

Nestle then expanded their systems into BabyNes, a capsule system for bottle feeding.

I can imagine they will be looking to extend their system even further in the future. Perhaps they will consider adding minerals, vitamins and supplements to food and drinks, or targeting specific groups of consumers such as seniors or athletes. It will be interesting to see what comes next.

 

#3. Zooming into a category niche

It is possible to innovate by zooming in rather than out of the category in which you are in. There are again many examples of this since, in theory at least, it is simpler to do. You already know the category customers and can segment to appeal more strongly to certain groups of them.

Food manufacturers use this strategy a lot. They often extend into low calorie or low fat, and more recently into gluten-free, OMG-free or lactose-free offerings.

Online marketers depend a lot upon finding the right niche for their product or service offer. They have the advantage over bricks-and-mortar stores of collecting a wealth of personalised information. Together with machine learning, they can quickly develop algorithms to precisely target each person with relevant offers. Offline retail will never catch up, however long they collect data – unless they have an online sales strategy too, of course.

 

Conclusion

So there you have some ideas on how you can improve the frequency of launching successful innovations. Whether working with scenarios, innovation levers, zooming in or out, the one element every strategy has in common is customer understanding. You wouldn’t expect anything less from me, would you? Going forward just remember:

  • It’s important to know and understand your customers intimately today but also how they are likely to change tomorrow.
  • It’s important to understand the category you really are competing in and what customers think about it.
  • It’s important to understand your brand’s image and ensure it’s aligned with any future innovations you consider.

 

What new ways are you looking to successfully innovate in this fast-paced, constantly changing and challenging world? Please share your ideas and thoughts about the above ideas or add new ones below. Thanks.

I hope you enjoy reading this blog post.

If you want me to catalyse your growth and profitability, just book a call.

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