Several years ago I came across one of the most useful and practical articles on market research I have ever read -- "How To Turn Customer Input into Innovation" by Anthony Ulwick.Published in the January 2002 Harvard Business Review, the article briefly outlined a methodology and set of tools for gathering customer input in a way that actually drives product innovation.In addition, the article illustrated how Cordis -- a medical device manufacturer specializing in products for interventional vascular medicine -- used Ulwick's approach to innovate the heart stent and gain market leadership in the angioplasty balloon market.As a result, Cordis' stock went from $20 to $109 per share when it was acquired by Johnson and Johnson.Now, Ulwick has updated his tools and provided a more comprehensive look at his methodology in his recently released book, What Customers Want McGraw Hill).This book should be required readying for anyone involved in product development and marketing.Partly because it offers a comprehensive, step-by-step approach for converting innovation from a random hit-or-miss process into a more methodical approach, but also because it greatly reduces the risk of new product failure and substantially increases the odds of success.In a world where some 80 to 90 percent of new products fail, the ROI for using Ulwick's methods is substantial.New Solution to an Old Problem.According to Ulwick, most customer research provides little real value to the companies conducting it.Worse, it often misinforms their decisions and steers them in the wrong direction.Why? Because the methods most companies use to gather customer input are inherently flawed.In fact, Ulwick argues that faulty research methods represent both the source and the cause of most new product failures.Based on my own experience, I tend to agree.Traditional qualitative research methods ask customers to define their needs, benefits, specifications and solutions.However, the most frequent responses to questions about product improvements focus mainly on "better quality" and "lower price." Besides indicating that the product category under question might be perceived as a commodity, these generic answers leave little room for new product developers to devise truly innovative new products.The reality is that customers have a hard time articulating why they do what they do and what will motivate them to buy a new product.Therefore, traditional research methods -- such as talking to customers about the solutions they want or can envision -- essentially ask them to act as product developers and marketers, and that's a job most customers are ill equipped to do.How do you gather customer input in a way that supports innovation?Start by silencing the literal voice of your customers.In other words, suggests Ulwick, stop asking customers to tell you how and what to innovate.Instead..*Focus on the jobs your customers need to get done.*Work to uncover measurable outcomes your customers hope to achieve.*Isolate important customer constraints.By directing your research towards these key areas, you will make more appropriate and better-informed decisions about what represents meaningful innovation for your customers.A Good Investment.For me, the best and most practical part of the book lies in Ulwick's eight-step approach, which dramatically improves every aspect of the innovation process from segmenting markets and identifying opportunities to creating, evaluating and marketing breakthrough product ideas.Drawing on more than 200 complete studies, Ulwick loads his book with real life examples that bring meaning and insight to the process and make it easy to translate his principles to companies of all shapes and sizes.For less than $20 and a few hours of reading time, What Customers Want delivers a remarkable return on investment.A can't-miss formula that delivers real innovation that your customers will value, it just might ensure that your next new product introduction hits the target in regards to the jobs your customers need help with and delivers measurable improvements to their most important outcomes.
Friday, August 17, 2012
Better Brand Research: What Customers Want
Several years ago I came across one of the most useful and practical articles on market research I have ever read -- "How To Turn Customer Input into Innovation" by Anthony Ulwick.Published in the January 2002 Harvard Business Review, the article briefly outlined a methodology and set of tools for gathering customer input in a way that actually drives product innovation.In addition, the article illustrated how Cordis -- a medical device manufacturer specializing in products for interventional vascular medicine -- used Ulwick's approach to innovate the heart stent and gain market leadership in the angioplasty balloon market.As a result, Cordis' stock went from $20 to $109 per share when it was acquired by Johnson and Johnson.Now, Ulwick has updated his tools and provided a more comprehensive look at his methodology in his recently released book, What Customers Want McGraw Hill).This book should be required readying for anyone involved in product development and marketing.Partly because it offers a comprehensive, step-by-step approach for converting innovation from a random hit-or-miss process into a more methodical approach, but also because it greatly reduces the risk of new product failure and substantially increases the odds of success.In a world where some 80 to 90 percent of new products fail, the ROI for using Ulwick's methods is substantial.New Solution to an Old Problem.According to Ulwick, most customer research provides little real value to the companies conducting it.Worse, it often misinforms their decisions and steers them in the wrong direction.Why? Because the methods most companies use to gather customer input are inherently flawed.In fact, Ulwick argues that faulty research methods represent both the source and the cause of most new product failures.Based on my own experience, I tend to agree.Traditional qualitative research methods ask customers to define their needs, benefits, specifications and solutions.However, the most frequent responses to questions about product improvements focus mainly on "better quality" and "lower price." Besides indicating that the product category under question might be perceived as a commodity, these generic answers leave little room for new product developers to devise truly innovative new products.The reality is that customers have a hard time articulating why they do what they do and what will motivate them to buy a new product.Therefore, traditional research methods -- such as talking to customers about the solutions they want or can envision -- essentially ask them to act as product developers and marketers, and that's a job most customers are ill equipped to do.How do you gather customer input in a way that supports innovation?Start by silencing the literal voice of your customers.In other words, suggests Ulwick, stop asking customers to tell you how and what to innovate.Instead..*Focus on the jobs your customers need to get done.*Work to uncover measurable outcomes your customers hope to achieve.*Isolate important customer constraints.By directing your research towards these key areas, you will make more appropriate and better-informed decisions about what represents meaningful innovation for your customers.A Good Investment.For me, the best and most practical part of the book lies in Ulwick's eight-step approach, which dramatically improves every aspect of the innovation process from segmenting markets and identifying opportunities to creating, evaluating and marketing breakthrough product ideas.Drawing on more than 200 complete studies, Ulwick loads his book with real life examples that bring meaning and insight to the process and make it easy to translate his principles to companies of all shapes and sizes.For less than $20 and a few hours of reading time, What Customers Want delivers a remarkable return on investment.A can't-miss formula that delivers real innovation that your customers will value, it just might ensure that your next new product introduction hits the target in regards to the jobs your customers need help with and delivers measurable improvements to their most important outcomes.
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