What Customer First Strategies Really Are (And What They’re Not!)

Everyone is talking about customer first strategies and why they are important. However walking the talk is a different matter!

An interesting article on NewMR by Ray Poynter prompted this post. He spoke about the differences between customer focus and customer centricity and the often times confusion between the two terms. That is why I tend to speak about customer first rather than customer centricity these days.

In its simplest form a customer first strategy is about thinking customer first in everything you do. Yes I know it sounds easy, but it really isn’t. And it doesn’t come naturally, at least to start with. I believe that’s because it involves a culture change to move the organisation in this direction. But I can assure you it’s worth it; its value is now well proven.

If you would like to see some exciting statistics about the value of making your customers the heart of your business, then CMO.com has a great article. It’s called “15 Mind-Blowing Stats About Customer Centricity” and many of the research results reported are still valid today, so it’s definitely worth a read.

 

 

What Are Not Customer First Strategies

I have seen a customer first strategy defined as

“a strategy by which businesses create their products, content, and marketing campaigns so that they serve their customers first, and their organization second.”

I don’t agree! If you don’t think about your organisation then it will likely fail! That said, I am also a little sensitive to the comments of Sir Richard Branson, who says

“Clients do not come first. Employees come first. If you take care of your employees, they will take care of the clients.”

This may be true for an airline, where the client is primarily basing their opinion on the service on board and the “niceness” of the crew. After all, every airline will get you from A to B.

However for many industries, customers are enjoying (or not!) your product or service without your employees being present. They will remain loyal (or not!) to your brand, based upon their own personal experiences, at least in most cases.

A customer first strategy is therefore not about only thinking about the customer. It is about understanding how best to serve them in such a way as to delight them, while keeping your employees and shareholders happy. This is relatively easy to do because when the business is going well, all stakeholders are happy.

 

What Customer First Strategies Are

Econsultancy asked what effective leadership in the digital age is. Several key leadership qualities were found, including being ruthlessly customer-centric, data-driven, innovative, collaborative and agile. I am thrilled to see customer centricity coming first by a long margin.

 

 

Which of these seven reasons is (are) the main reason(s) for your slow move to a customer-first strategy adoption? Is it something different? Let me know in the comments; I’m sure every reader would love to exchange their own experiences with you.

If you would like to know which area of a customer first strategy offers you the most opportunities for improvement, why not complete our mini C3C Evaluator™ tool? Continue Reading

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

Listen on Apple Podcasts

“Never miss an episode. Subscribe on Apple Podcasts to get new episodes as they become available.”

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. Continue Reading

Why Customers Are The Answer To All Your Problems (If You Ask the Right Questions)

Listen on Apple Podcasts“Never miss an episode. Subscribe on Apple Podcasts to get new episodes as they become available.”

Last week I asked whether it is employees or customers who are more important to an organisation. If you missed it read “Customers Care About a Product’s Value, Not How the Company Treats Employees” now and catch up.

I knew it would be a provocative question but I still didn’t expect quite so many comments! So this week I decided to be just as provocative and talk about the issues that challenge many businesses. And where the answer to whatever problem they have is actually quite simple. For me, customers are the answer! They can either answer or help you overcome any challenge or issue you may have.  Read on and then let me know if you agree.

 

How can I innovate more successfully?

 
According to an excellent article by Harvard Professor Dr Srini Pillay “Humans have a natural aversion to innovation because it involves a healthy dose of uncertainty and risk.”
 
 
Unfortunately, we try to reduce this risk by referencing past events to help us to predict the probability of our future success. Dr Pillay concludes that possibilities rather than probabilities are more likely to lead to better results.
 
I would concur with this statement, as the world is changing too fast to rely on past events as a predictor of anything in the future. This is why I say that customers are the answer!
 
It is only by getting closer to our customers and being constantly curious, that we have any chance of increasing our success in satisfying them.
 
It therefore makes sense that we involve our customers in helping us innovate. Not as a judge of concepts, which is what many businesses do. This is wrong because we know that consumers don’t know what they want, at least not until they see it.
 
However, they do know what their pains are; what is wrong with a product or service and what they would rather have. Co-creation and in fact ongoing conversations with our customers is the only way to stay ahead of the game.
 
In another article, this time in the HBRHeitor MartinsYran Bartolomeu Dias and Somesh Khanna from McKinsey shared the results of numerous interviews they conducted in Silicon Valley, the home of US (tech) innovation.
 
They conclude that it takes many skills and cultural changes for most organisations to become more innovative. These include:
  • Audacity and grit: The determination to continue despite failure. And I would add the acceptance of failure and the license for employees to fail too.
  • Strong leadership and true collaboration: An inspiring vision and the tenacity to make it happen – together.
  • Give employees autonomy. We all need meaningful work. The chance of helping an organisation grow is what motivates top employees. That and the freedom to make decisions based on clear goals but without directive processes on how to meet these objectives.
Continue Reading

New Thinking, New Ideas, New Successes!

Things have been pretty hectic for me these past few weeks. As you read this, I am in New York presenting at the CASRO Technology and Innovation Event, 6th to 7th June. If you’re attending the event, please stop me and say “HI”; it would be awesome to meet some of my American readers!

I then head down to Miami where I am guest lecturer of an Executive MBA course at Miami University. The following week I fly back up to Atlanta to speak and chair a session at IIeX-NA from 13th to 15th June.

If you’ve never been to an IIeX Insight Innovation Exchange event, then you’ve missed a really exciting conference. It’s run like a multi-channel TED event, where most of the presentations are just 15 minutes long. You are never bored and can learn and experience things you can’t find elsewhere. And if you want to learn even more, there are also longer workshop-style talks on a multitude of topics.

There’s still time to attend and using my special speaker discount code (SPEAKER20) you’ll get a very generous 20% off the full price! If you do attend, don’t forget to stop me and say “HI”.    

I’m Taking a Marketing Course!

As if the preparation for all these events wasn’t enough, I also started a marketing course a couple of months ago. You might wonder why I decided to do that when I spend my life advising others on their marketing. The reason is that we are never experts in every area and as we say in Switzerl and

“The cobbler’s children don’t wear shoes”.

In other words, we never seem to have the time to do what we help others to do. So true don’t you think?

The decision to invest in myself has been one of the best I’ve made in recent years, as it will simplify my day-to-day work. After all, they do say

“You have to spend time to save time”!

The best part of the program is that I now have someone telling me what to do and prioritising the steps in relaunching my website. There will also be some exciting new offers for you, my dear reader, like the webinar series I mentioned a while back.

During the weekly videos of each module of the course, I’m  getting exposed to many alternative platforms, systems and tools from the ones I already know. So it’s also making me a better digital marketer from which my clients will then benefit. A true win-win investment.

I now have someone telling me what to do and prioritising next steps. I’m also getting exposed to many alternative platforms, systems and tools from the ones I already know, so it’s also making me a better digital marketer for my clients. A true win-win investment.

Time for You to Learn Something New?

This has been a rather long introduction to say that I believe we should all invest in ourselves, every year. Attending workshops and conferences, hiring a coach, or asking someone to give us training on a topic are all excellent ways to invest wisely in ourselves. Continue Reading

The New Way to Innovate You Must Start Using Today!

When I get several requests in the same week on exactly the same topic, I know something is happening in the marketplace. This week was one such occasion.

A Pharma company wants a presentation on it; a CPG company asked me to give a half-day workshop about the topic; a conference requested a keynote speech about it; a major US business school wants a guest lecture covering the idea  and a consumer goods company wants an article for their newsletter. What’s the topic? The new ways to innovate, that’s what.

With all this interest, and despite having written some popular posts in the past on best-practice innovation, such as “ How to innovate more creatively”, “How to get R&D as excited about consumer innovation as you are”  and “Never succeed at innovation: 10 mistakes even great companies make”, I thought I would summarise the latest trends around how to innovate more successfully today. So here are some ideas to get you thinking about the changes you might want to bring to your own innovation processes.

Customers react to new innovation1. Start with the customer in mind – always

So many organisations still have an innovation process that starts with R&D or operations. It’s time to reverse your innovation funnel and start with the customer. (>>Tweet this<<) What are their problems with current products and services; what do they dream of having? How are they compensating or compromising?

 

If I had asked people what they wanted, they would have said faster horses” Henry Ford

“People don’t know what they want until you show it to them” Steve Jobs

However, as Henry Ford and Steve Jobs remind us, customers don’t usually know what they want. They are usually very clear about what they don’t like, but they also often know the solution they are looking for – even if they don’t express it as such. It is our job to interpret what they are saying into what they need. Therefore, identify the result they want but not how they want to achieve it, otherwise you will be looking for that “faster horse”!

2. Stage-gate innovation is essential for a successful business

Today’s world is fast paced and customers never stay satisfied for long. What surprises and delights today, is ordinary and normal, if not tomorrow, at best in a couple of weeks or months. That’s why it’s vital to work on new product and service developments even before you launch your latest offering.

NEW INNOVATION STAGE-GATESMany companies today work with generation pipelines, with three, four or five stages of innovation preparation. This ensures that they are already working on the replacement of each product they launch, whether or not it’s a success.

3. Line extensions can only do so much

Innovations risks opportunities

According to the McKinsey article “ Reinventing Innovation in CPG“, real growth comes from ground-breaking innovations, not simplistic renovations. However, line extensions do provide the time for organisations to prepare their true innovations, while responding to today’s customers incessant desire for novelty. Continue Reading

How to Innovate More Creatively

I was recently on a trip to the US; a transatlantic flight on a Boeing 747, my favourite airplane – apart from the Seneca II that I used to own. Anyway, the reason I love long-distance flights is because they cut us off from everyday life, although unfortunately no longer the phone nor web these days.

They therefore provide us with a very rare commodity; some precious thinking time. How do we ever get that otherwise? Speaking personally, my brain seems to be constantly under pressure from the challenges of work, family, friends – in a word, living – so I love it when I need to get on a flight, the longer the better.

I watched Transcendence on this flight; it’s about the moment when the human brain and technology become one. I love science fiction (SciFi), because it frees the mind to dream and to be far more creative than the “normal” working environment ever allows.

After the film and lunch were over, my mind turned – of course – to business and how I could set my past, current and future clients free too; how to make them more creative as well as more customer centric. So this is what I came up with, far above the clouds and worries of my everyday world.

The future is in our h ands

We are all wise after the event, but how do we become wise before it? In my opinion, by setting free our thoughts about the future and our creativity. Many companies have an innovation group, but rarely do they set them free, to think big, to think out of the box.

In fact in many cases, they are literally put in their own boxes, separated from the business for which they are supposed to be innovating. Whilst the intention of this separation may be laudable – it is claimed that it provides increased freedom  – it generally doesn’t work, because the group’s creativity is not grounded.

Despite their incredible creativity, even science fiction writers are grounded; their stories are based on facts, a progression from current actualities to future possibilities. I am not suggesting that innovation be limited to the mere renovation of today’s products and services, but rather that they be based upon a realistic progression of today’s realities, rather than pure hypothesis. In particular, they should be developed out of current sociatal trends, behaviors and needs.

Trend following isn’t creative

Are you following trends? Are you happy with the information you are getting from your supplier? We all love to look at new inventions and products from around the world, but just think about what useful and actionable information you are really getting.

I’m sorry to break the news to you, but you are almost certainly getting exactly the same suggestions as the tens, if not hundreds of other clients your supplier has. Reports aren’t generally personalized, or only minimally, so whatever ideas their reports might spark, are likely to be sparking in every one of your competitors minds too! Continue Reading

Which of these 10 Customer Centricity Steps are you Missing?

Last Saturday was the start of Summer in the Northern hemisphere and the weather certainly confirms this, at least for now! Summer is a great time to reflect on the progress we have made to date on our journey to Customer Centricity.

Organisations need to take a step back occasionally and review how their plans are going. What changes do they need to make to ensure they meet their objectives over the remaining six months of the year? So here are my ten ways to tell if you are well on your way to becoming truly customer centric – and what actions you can take to get further along your journey.

#1. Identify the category in which you are competing

This may sound strange to you, but many br ands are not competing in the category in which they first thought they were. Think soup which is now a meal replacement, or laptops which are now entertainment platforms.

Action: Review how your product or service fits into the customers’ daily life and how they compare and decide between options. This will help you identify your real competitors and the actual category in which you are competing.

#2. Underst and your primary target

Knowing precisely who the customer is for each of your br ands is the first essential step to satisfying them. Use the BCG Matrix to help select the best group. Do you already work with this matrix, or do you have a better system? Please share your own best practice below, so I can learn.

Boston Matrix for improved customer centricity  and segmentation evaluationAction: Review the target audience for each of your br ands and ensure you have information on their “4Ws”. In other words the Who, What, Where and Why: demographics, purchase, usage, media use, places of purchase, consumption, connections to communications, their values, usage motivations and emotions when doing so. If you would like to learn more about targeting, check out this post.

#3. Watch and listen to your customers

Personal experience of your customers is essential to putting them at the heart of your business.

Action: Ensure everyone has regular – ideally monthly – contact with the customer. This can be by listening in at the call centre, watching market research interviews & discussions, or observing customers as they shop and use your product / service.

#4. Know what current trends could mean for your business

Many organisations follow trends, but they don’t provide any competitive advantage. It’s time you started turning them into future scenarios or use future prototyping. (Contact us here to learn more about this)

Action: Identify the most relevant trends for your br and and then project them into the future to develop two axes of uncertainty and four plausible future worlds. These will help prepare the business for future opportunities and challenges. Alternatively, why not try Sci-Fi Future Prototyping? (Contact us here for more information)

#5. Reinvent your innovation

Most organisations innovate based upon their current knowledge or technical skills. This keeps them boxed into a narrow b and of categories. Continue Reading

How to get R&D as Excited about Consumer Innovation as you are

Did you do a double-take when you read this post’s title? I bet you did. R&D is at the heart of innovation for most major manufacturers, so they should be excited by consumer underst anding, shouldn’t they? You would think so, but in reality, their concepts are almost always based on the company’s current technical know-how and skills. If you want to break away from this very predictable process and get them excited so they add some “oomph” to your innovations, then read on.

One of my most loyal CPG clients contacted me recently about the latest problem (opportunity?) he has been asked to address: making R&D more consumer centric. Having faced a similar challenge in one of my previous jobs, I immediately empathised with him. It can really be a daunting task, especially when speaking to people who are usually more interested in numbers than emotions.

I remember speaking about consumer centricity at an annual R&D conference and in the discussion session that followed, the Head of Operations commented “You know Denyse, our R&D group is very consumer centric; we know exactly what consumers need. It’s marketing who don’t know how to explain to consumers why they need what we develop!”

Trying to keep a straight face, I thanked him for his comment and also for having just proven my point. I said that I believed it was time for R&D to become more consumer centric by developing a better underst anding of consumers and their needs. I then went on to suggest some ways they could get closer to current or potential consumers. By the end of my talk I had a queue of volunteers wanting me to organise some of the suggested actions for them. Here’s what I shared:

Observe & Listen to your Consumers

Most people working in a company and certainly those working in R&D, know far more about the category than the average consumer. However, most employees – excluding hopefully the insight team – don’t know what their consumers really think about their products and services.

Observation of consumers as they go about their daily lives, helps us to identify pain points, whilst also stimulating new thinking and concepts. Listening to their complaints and ideas, whether online, through carelines or during a market research project, can provide the consumer perspective and input for new or better solutions.

It’s time for R&D to get out of the factory and into the shops & homes of consumers (>>Tweet this<<)

Involve your Consumers

Ben  and Jerry are great at innovationLast year Ben & Jerry asked residents of five cities in the USA to vote for the names of new ice cream flavors that reflected their locales. The br and’s Scoop Truck toured 11 cities and also served as one of the campaigns’ voting platforms. Once consumers had eaten their free frozen treats, they were asked to use their spoons as “ballots” (they voted by depositing their spoons in one of several recycling boxes marked with various ingredient names). Doesn’t that remind you of another br and which used a similar voting tactic when it was starting out – Innocent? Continue Reading

Why Most Marketing Plans Fail & 9 Ways to Succeed with Yours

This Monday is Memorial Day in the US, when Americans everywhere think back to those in the US Armed Forces who gave their lives in the line of duty. I too am thinking back, but to all the marketing plans and ideas that have been sacrificed!

The reasons why some plans are accepted and others aren’t are many. Non-alignment with corporate plans is one of the most usual, but lack of clarity, consistency, preparation or budget are also common. And even when accepted, they aren’t always executed as planned. So I thought that it would be useful to take a look back at our own marketing plans that we set earlier this year and review what is and isn’t working. We still have time to make changes and meet our 2014 targets, so which of the following is your current issue?

Declining market share

Firstly, you should be ashamed that you’ve let your br and slide so much that you are actually losing share! Br and equity measures would have given you a clear warning that something was going wrong, months if not years ago! Did you ignore the numbers or were your efforts too small to have the necessary impact? Either way, it’s time to start working out what’s going wrong. Review the 5P’s of marketing for starters and prioritise actions based on what you find.

Stable market share

So your br and’s growth is slowing? This happens in the normal life-cycle of a br and, so no panic, but you do need to take action to renew growth. But don’t think that small tweaks will be enough. Competition is ruthless these days and you will need to create some buzz around your br and. Surprise and delight is the name of the game to win (back) consumers. Start from your strengths and then ramp one or two of them up a couple of levels.

Declining image

As mentioned above, your br and image will start to weaken before market share is affected (>>and%20image%20will%20start%20to%20weaken%20before%20market%20share%20is%20affected%20%20[tweetlink]” target=”_blank” rel=”nofollow”>Tweet this<<), so in theory you still have time to prevent significant share loss. But you must act now! It is more effective to review your image ratings by experience group, to see what you need to do to recover lapsed users or convert more trialists. In my experience the answers should be clear from a regularly run and thoughtfully analysed br and image study using a well-developed attribute list.

Losing consumer trust

This is a serious issue. (as if the others aren’t!) Trust in companies and br ands is what enables consumers to forgive mistakes or accept higher prices. (>>and%20br ands%20is%20what%20enables%20consumers%20to%20forgive%20mistakes%20or%20accept%20higher%20prices%20%20[tweetlink]” target=”_blank” rel=”nofollow”>Tweet this<<) And it tips the balance in your favour in product comparability when performances are similar. Trust is a complex principle built out of a number of influencing factors, such as integrity, reliance, confidence, quality and worthiness. Which of these has resulted in your consumers’ loss of trust? Once identified, you will need to review how you can influence it. Continue Reading

The Highly Effective Habits of Truly Innovative Companies

A couple of months ago I shared what I consider to be the Ten Mistakes even Great Companies Make when innovating. Whilst it is useful to have these “watch out” lists, I believe it is also beneficial to take a look at how other companies get it right.

This post was prompted by a new client who is one of those already doing innovation extremely well and yet is still looking to improve their thinking. That for me is the sign of a truly innovative company. So read on for some ideas on how you too can become great at innovating.

Set Stretch Launch Targets

Let me start by saying there is a huge difference between the quantity and quality of innovations in almost all companies. In fact I believe there is an inverse relationship between the two. Those that innovate a lot rarely do it well. I think this is because they have the pressure of meeting objectives of numbers of new launches, rather than numbers of successful launches.

What is a successful launch? For me it is meeting or beating carefully thought through and calculated objectives. Not those wishfully high numbers used to get management buy-in for the launch, nor those ridiculously low targets that everyone knows will be met even before the new product is launched. No, I mean objectives that are stretch targets but achievable with the right plan, actions and effort. In other words SMART.

Be Inspired by your Customers

There are a lot of very clever organisations, especially in the technology area, which develop incredibly innovative products. Apple is (was?) obviously one of these and until recently, was admired for its innovations. Now it has been claimed that Steve Jobs didn’t believe in market research. This is untrue. He did believe in market research, but market research done right. He didn’t ask consumers what they wanted, because he said they didn’t know. Instead he asked them what their problems were, what they dreamt about. He then showed them his answers to these and got their reactions. Even when he got his answers, he didn’t immediately start adapting products to meet these stated needs, but rather worked to underst and what consumers meant by what they asked for. As the infamous Ford quote says

“If I’d asked customers what they wanted, they would have told me a faster horse!”

Jobs didn’t build a faster tape player, or a smaller one, or a lighter one. He made “music on the go” more convenient, more accessible and above all, more fun.

Use a Flexible Approach to Idea Generation

Many companies approach innovation as a strict process. They will use something similar to the below funnel, brainstorming for a multitude of ideas that eventually get whittled down to the one or two new launches that are finally chosen.

St andard funnel used by companies lacking innovative ideas

There are many companies today offering new processes and ways of innovating, but they all come down to a finite number of alternative levers:

  • Start from your strengths and / or weaknesses
  • Start from the strengths and / or weaknesses of your competitors
  • Extend into adjacent categories
  • Extend into new channels
  • Extend into new presentations (packs, prices, communications)

They also use one of three models to reduce their number of possible choices in their selection process:

  • Start large and reduce down (the st andard “funnel” approach shown above)
  • Start small and exp and before selecting (inverse funnel approach)
  • Repeated executions of the combination of the above expansion and contraction of ideas (sometimes referred to as the accordion approach)

Whichever you decide to use, you eventually get to a decision of the one, or few, launch choices, at least in most cases. Continue Reading

NEVER Succeed at Innovation: 10 Mistakes even Great Companies make

There have been many attempts to dethrone the blond supermodel doll Barbie over her fifty plus years of existence, mostly without much success. The latest endeavour (named Lammilly, after her creator) is different in that Nickolay Lamm is going after co-funding and has already achieved over $350,000 in just a few days according to the website.

This interesting addition to the “Anti-Barbies” story prompted a number of questions in my head:

  • Is it wise to go after a declining segment?
  • What was wrong with Barbie’s customer satisfaction?
  • Who is the target for this new doll? Child, adult, collector?
  • Why now, after so many previous unsuccessful attempts at dethroning Barbie?

Those questions and various discussions on FaceBook then got me thinking more generally about innovation and how companies have adapted their processes (or not) to today’s connected world. So here are my thoughts on how NOT to innovate:

1. Change the colour, perfume or taste of your current product and then charge more.

Pepsi innovation of Crystal PepsiThis is what Pepsi did when launching Pepsi Crystal: it lasted less than a year. Interestingly this is also what Apple just did with its iPhone 5C, except it charged less. Again it is already being discounted at Walmart because of disappointing sales, which might just be a good thing for Apple in the long run. Sales of the 5S remain buoyant and any damage to the corporate image caused by the cheaper 5C should hopefully be significantly reduced.

2. Organise an innovation team and provide them with a separate office, ideally far away from the current business.

If this is how you are set up internally, get the team back into talking distance with the rest of the business. Rather than stimulating creativity as it has been claimed to do, by being separated from everyday business concerns, it actually alienates everyone else to innovation and decreases overall creativity.

3. Make sure R&D heads up innovation so your new products can make use of your technical know-how and skills.

R&D needs to connect with customers for improved innovationWhilst this may result in technically improved products, they are all too often not in line with consumer current needs or future desires. Your research people need to connect with your potential customers regularly so they can be tuned into customers’ wants and current frustrations. Wouldn’t you rather have your R&D developing new products that practically sold themselves? As Peter Drucker said “… know and underst and the customer so well the product or service fits him and sells itself” (>>Tweet this<<). If R&D are in constant contact with your customers, they will always have them in mind when planning their product development.

 

4. Don’t let people from outside the organisation work on innovation; prefer well-established thinkers from within the organisation, preferably with more than ten to twenty years in the company.

This often happens as the result of a naïve manager lacking the required confidence to accept criticism, to challenge the status quo and to get out of their comfort zone. No person, let alone an organisation, can be an expert in every area. Continue Reading

This is Why your New Products “Crash & Burn”

Last month I invited readers to share some of the problems and challenges they need to address in 2014. I offered a free consultation to one lucky winner who asked the most interesting question, which could also be of interest for me to answer for other readers.

Well, the winner is Jean-Francois (JF) who has just started working with a start-up in the tech and app areas – I feel that’s more and more of us these days, don’t you? His question was:

“I would like to commercialize a new XXX; what would be the right approach to identify the consumer need and then the market potential, considering that the company has very limited financial resources?”

This is a great question and a reminder that not every organisation has access to large market research or marketing departments and extensive budgets. In fact, in many companies these roles are being h andled by one and the same person with very few resources; is that your case? If so then you will definitely find this post of interest, but even if it isn’t, I’m sure you will still find value from the ideas shared.

As I had promised, I gave Jean-Francois a one-on-one consultancy which ended up lasting several hours, as he had planned well for our session together. He also happens to be really passionate about his innovative idea, as well as in finding solutions to all his challenges.

The product JF and his team want to launch doesn’t exist on the market today, although there are some products which are unsuccessfully trying to address the perceived customer need. The proportion of product launches which fail every year is generally “accepted” to be about 95% – although why companies continue to accept such levels is beyond me! With such odds, I think it is incredibly courageous to start a whole company based around just one new product idea, but that seems to be the norm in many areas today.

Let’s start by taking a look at some of the reasons new products fail and identify ways to reduce if not completely eliminate them for your next launch.

  1. New product Process wheelThe process itself: Innovation is by definition a creative process, but many organisations use a well-worn, restrictive and uncreative process to develop their new products. They are at best most likely to come up with renovations than true innovations. The solution is to introduce some creativity into the process, and why not include potential customers in the process too?
  2. Meeting company quotas: It is surprising that with such miserable statistics concerning the likely success rate of new products, that so many companies – and which shockingly include many of the largest CPGs around – fix quotas on the number of annual new product launches. How crazy is that?! It just encourages too many new products to be launched too early, and almost guarantees failure! I believe it would be much better to seriously limit the levels of acceptance amongst all new product ideas proposed in any year, then only the best would get through.
Continue Reading

Join Global Customer First Strategists!

Get our latest posts before everyone else, and exclusive content just for you.

* indicates required

Send this to a friend