NPD Archives - c3centricity | c3centricity

+41 79 93 39 789 info@c3centricity.com

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.

They are also easier to develop and launch, which means they are less dem anding on resources. Companies which are satisfied with only incremental innovations are unlikely to see significant growth in the long-term. For this reason successful br ands need to do both. (>>Tweet this<<)

4. Launch before you’re finished

Many tech companies use this approach, by involving customers as beta testers. In this way, they get their customers help – for free – to improve and mould the final offer. It also allows them to launch more quickly and gain the positive image associations of being first to market.

If you are concerned about confidentiality or competitive speed to respond, then work with customers through co-creation. (>>Tweet this<<) Involve them at every stage of the development process from ideation to launch preparation. If your management are  concerned about the risks of sharing innovative ideas outside the company, involve employees instead, perhaps from other divisions so they are less biassed.

5. Review the category in which you’re playing

Are you sure that your customers see your br and in the same light as you do? Many times I have heard a customer correct an interviewer in a research project, when asked about br ands in a category. “That br and isn’t in that segment, category A” they say; “It’s not a competitor of X, but of Y and Z, the main br ands in category B”. Some examples include dried soups which today compete with sauce mixes, carbonated soft drinks with fruit juices and body gels with shampoos.

Another advantage of underst anding the category in which your customers place your br and is that this can provide you with new ideas for expansion.

Mars ice creamMany confectionary br ands have moved into ice cream and desserts. They have understood that they are being seen as more of a “treat” than merely “just” a chocolate bar. When your customers choose between products from several different categories when deciding what to eat or buy, it is a clear indication that you are not (only) competing in the category you first thought you were. (>>Tweet this<<)

In conclusion, there are many reasons why innovations fail:

  • A short-term mindset where success is dem anded in weeks or months rather than years.
  • Top management instils a fear of failure, so no-one will defend ideas that are unpopular.
  • The innovation process itself is biassed towards current knowledge and skills.
  • A lack of deep customer underst anding.

These five ideas will help you to reinvent your innovation and also make it more customer-centric. After all isn’t that what all best practices should do today, involve the customer? If you have other – better? – ideas, then why not share them below?

Winning Customer Centricity BookThis post includes concepts  and images from Denyse’s book  Winning Customer Centricity. You can buy it in Hardback, Paperback or EBook format in the members area, where you will also find downloadable templates and usually a discount code too.

The book is also available on Amazon, Barnes and Noble, iBook and in all good bookstores. If you prefer an Audiobook version, or even integrated with Kindle using Amazon’s new Whispersync service, you’ll have to be patient just a little longer – but it’s coming soon!

 

 

STOP Emotional Innovation!

Last week, I posted about making innovations more emotional; if you didn’t see it, you can find it here. Today, I want to speak about the other side of emotional innovation; how to STOP some of your own emotions, when launching new products.

One Sunday last Summer I had been planning a lie-in, like most of us do when we don’t have to get up for work at the weekends. However, I was woken up very early by one of my cats who came to proudly show me that she had caught a bat! 

Both my cats love hunting and I have to say they are (too) good at it! They give me frequent “presents” that I discretely dispose of, unless of course they are alive, in which case I have to catch them and return them to the wild outdoors, whilst the two of them continue to sniff around the last place in which they had seen their prey.

Anyway, my cat Apricot – a female ginger – was really excited about her very rare capture, which is why she had woken me up to show me. Of course, I was less than enthusiastic about a bat flying around my bedroom at five in the morning! Luckily when I switched on my bedside lamp, the light quietened it down and when he stopped flying, to hang on the wall, I was able to catch him and put him back outside where be belonged.

 

Do your innovations excite you or your customer?

Now awake, my mind started musing on the very large differences in the reactions of my cat and me, to this event. She was excited, happy and proud; I was surprised, disappointed and irritated that I had to stop what I was doing – sleeping – to attend to her “present”.

I think something similar happens sometimes when companies launch new products or services. Everyone in the organisation gets excited about their innovation or renovation, are proud to have developed it and happy that after all the hard word, it is finally ready for launch. The customer on the other h and, can be surprised, which is great if this is accompanied by pleasure, or disappointed if the promise is not delivered. However, he might also be irritated if his usual br and or version has been replaced and is no longer available, or at least no longer on the shelf or store in which he usually finds it. We are in fact asking him to work, to change his habits, which no human being really enjoys, even when it is for the better.

 

5 Questions for winning innovations

So how can you make your new product development more customer-centric? By starting from your target customers’ perspective, and by answering these five questions:

  1. How are your customers currently using your product or service? What are their pain points if any; price, packaging, size, availability, sensorial experience – taste, aroma, colour, sound, feel?
  2. Who is currently changing or has already changed their habits to compensate for these pain points? Your current regular users, occasional users, lapsed users, competitive br and users?
  3. What are your current customers doing to face their pain points? Are they only buying on promotion, buying several small packs at a time, buying a replacement br and, buying elsewhere, adding their own ingredients?
  4. Where would they rank each of the identified pain points in terms of priority and acceptability? Can they cope with buying less often to get it at a cheaper price? Do they have a “portfolio” of acceptable br ands from which to choose in the category? Do they transfer your product into another container for ease of serving?
  5. When do the pain points become so unacceptable that your customers would consider changing br ands or adapting their behaviour? Are there psychological price barriers in the category or for your br and? Are there category st andards of colour, size or packaging that need to be obeyed – or perhaps even broken?

Obviously best-in-class innovation and renovation starts with the target customer in mind; their rational needs AND emotional desires.

Based on the answers to these five questions, the most relevant products and services can be proposed and are then more likely to be met with positive excitement, pride and happiness, rather than negative surprise, disapointment, irritation and frustration.

 

Involve your customers in your innovation

A further idea about customer-centric innovation is to actually involve your customers along the whole process. Many organisations now run what are called “co-creation” or “co-elaboration” sessions, where ideas are shared with and then further developed with customers in live sessions, either in person or over the web. How about co-creating your next new product idea with your customers? That way you know it will delight them even before you launch.

Do you have any other points you would add to the above list? Have you had success in co-creating a product or new service recently? Please share your experiences, I would love to hear about them.

This post first appeared on April 28th 2011 in C3Centricity Comments

More information on improving your innovation and conducting co-creation sessions can be found here: https://www.c3centricity.com/home/vision/

C³Centricity uses images from Dreamstime.com

What do Martin Luther King and Apple have in common?

To paraphrase the great Martin Luther King’s famous speech: I have a dream that one day this world will rise up and live out the true meaning of its creed: “We hold these truths to be self-evident, that all products are created equal.”

Inspiring words indeed, but unfortunately, when it comes to innovation, successful new products are rarely created equal. Why then did I find my inspiration for this post in them? Because I believe that the main reason many new products don’t sell as expected is because they are sold as such – as just new products!

Today’s consumer has so much choice that product benefits on their own rarely sell. Consumers dem and so much more. They ask that they are in fact sold a dream! An inspiration to a better world for them and their families.

Does Apple sell just a computer, an MP3 player, a mobile phone? No, they sell creativity, excitement and individualism. I am not criticising their products, they are of course fantastic, but rather showing that even if their products are arguably better than their competitors, they are selling them emotionally. They have found a way to build excitement, longing and love into each of them. They have enabled each and every consumer to feel special, privileged, an individual. And in this mass market world that we live in, this is certainly something that we all desire, dare I say crave?.

So what can we learn from Martin Luther King and Apple in launching new products that will sell? Many things I am sure, but here are the first three that came to me:

  1. Inspire a dream – why will your consumer’s life be better with your product or service, emotionally not just rationally. Describe and picture their future with your product or service in it.
  2. Build emotion – make consumers excited by the launch; build anticipation, make the wait a part of the sell, so that they will be lining up to buy it
  3. Provide individualism – make consumers feel privileged to have bought it, whether this is through great after-sales service, automatic club membership, personalised offers or limited editions; even limiting distribution can work, although this needs to be done very cautiously, as it can have the opposite effect and disappoint rather than inflame the longing

With so many new product failures today – I have heard anything from 80% to 95% – consumers have become blasé about them. They know that if they are not immediately satisfied, there are many more out there on the market to try. Building loyalty comes from connecting with your consumer on an emotional level, so that there is no comparison to competitive products and services, even if they are in reality very similar at a rational level.

What other keys do you see for new product launch succcess today? What would you add to my starter for three? Do you have your own list? Please let me know if I have “inspired you emotionally as an individual” to comment here.

For more ideas on successful innovation, please check out our website here: https://www.c3centricity.com/home/vision/

C³Centricity uses images from Dreamstime.com

FREE DOWNLOAD “Secrets to Brand Building”

Everything You Need To Know To Improve Your Marketing & Brand Building

* indicates required