Valuing Consumer Input
Posted: April 6th, 2009 in Addressing Consumer Needs
We often find that one of the most commonly overlooked areas of innovation is the consumer/customer input. Many companies ideate behind closed doors without any understanding of what the consumer actually needs or wants. This is probably the worst possible way to go about creating the next new product or service that will perform well in the marketplace. The way to have a higher percentage of success is to make sure that the product/service being introduced is solving current problems and meeting unmet needs.
Although employees within any given company might think that they know their consumers, often they have grave misconceptions, especially senior management. That is why it is so important to talk to consumers during the innovation process. The only way to change that perception is to actually go out and talk to consumers and collect real world information.
Of course, companies are often reluctant to spend the time or money in conducting upfront consumer-centric research. But the important thing to take into consideration is that the money and time invested in upfront research is actually minimal compared to the time and money put into a new product launch, especially if that launch is going to fail. Another aspect of upfront research is that companies often do not see the long-term far reaching benefits. Research undertakings can continue to inform new product and service development for a number of years, since in many industries consumers change somewhat gradually and research findings are relevant for many years (outside of drastic world events, like say a global recession). Additionally, the research findings can immediately help inform base business decisions.
Upfront consumer research (and continued research all the way through development) helps companies go in the right direction with new products, and actually saves costs. Consumers help to outline what new products need to have, and what they are willing to pay for. This helps to cut down the costs (and hopefully increase margins) also eliminate unnecessary additions - for example a high cost packaging technology when consumers do not really value.
An example of a new product that was recently launched that seems to have not fully taken consumers input into account is the latest iPod Shuffle. The new Shuffle is slimmer than the previous generation with a more sleek and minimalist look. This change came with a movement of all the controls from the shuffle to the earphones. Granted, some consumers might be very happy about this change, but many have complained about the fact that this now means that they have to use Apple’s earbuds, or similarly licensed earphones. iPod Shuffles are often used for exercising, and many consumers like to customize the earphones they are using based on what works best for them. With the new iPod Shuffle, they can’t use their favorite earphones without some kind of a proprietary adapter. The technology might be breakthrough, but it also greatly impacts the way that consumers can use the product.
Consumer research is the only way to identify potential problems with new products and services both before extensive development and launch. The greater the understanding of the consumer, the greater the likelihood of success.