Blog Category: Awkward Realities

Great product development is always preceded by great market segmentation.

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Three conditions must be met: 1) A market segment (cluster of customers with similar needs) is clearly defined. 2) The segment is worth winning in terms of size, growth, profit potential, etc. 3) The segment is winnable, i.e., it’s not defended by a well-entrenched competitor. Overlook these conditions and you’ll waste resources. Great market segmentation is key to successful innovation.

More in 2-minute video at 16. Segment by markets for innovation

Can customers help you create a new-to-the-world product? Sure. If you know how to ask.

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Could customers help with a product as radical as iTunes or iPod? They’d probably be hopeless on solutions… but helpful on outcomes: access a broad range of music, instantly purchase music, transport music anywhere, purchase single tunes, store music on multiple devices, etc. These would be great insights for any solution-provider.

More in 2-minute video at 18. Avoid the ‘Faster Horse’ Fallacy

Will customers tell you what they want? That depends on how you ask.

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Think of a great radio interview. Did the host say, “I have 10 questions about your book”? Or did he listen carefully, asking wonderful questions? Did these questions cause the guest to think deeply? Did the guest enjoy the stimulating exchange, even thanking the host? This is how you learn what competitors miss. Check out our What-Why-Clarify probing method that’s part of Everyday VOC training.

More in white paper, Everyday VOC

Expect more out of your interview with a hydraulic hose buyer than with a garden hose buyer.

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You can have an intelligent, peer-to-peer conversation about pressure ratings, fluid specifications, etc. And expect greater B2B interest vs. B2C, since your innovations can help the hydraulics engineer become a hero with his next new product. Without innovative suppliers like you, his path to recognition is a difficult one. The more you understand B2B vs. B2C, the more you can “take advantage of your B2B advantages.”

More in white paper, B2B vs. B2C

Customer value is only created when an important, unmet customer outcome is improved. Period.

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Sure, you can develop products that you find exciting. But unless these products address something customers find important and unsatisfied, don’t expect them to buy them. And if customers do buy your product, they certainly won’t pay a premium. If you’re not happy about this, you’ll have to complain to Adam Smith. The best way to know customers are eager for you to meet a need is with Market Satisfaction Gaps.

More in white paper, Market Satisfaction Gaps

Lean Startup is fine for B2B… but don’t skip this extra “Learn” step.

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The “Build-Measure-Learn” cycle in Lean Startup begins with a hypothesis, and is great for B2C. End-consumers can seldom tell you what will amuse them or increase their sense of self-worth. But knowledgeable B2B customer can predict their desired outcomes. So start with a “Learn” pre-step. Customers will tell you all you need if you know how to ask.

More in white paper, Lean Startup for B2B (page 3)

The forces moving a supplier from commodity to specialty come from within…or they don’t come at all.

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There are many forces dragging your products toward commoditization: competitors trying to imitate your products… purchasing agents trying to standardize your products… new technologies trying to obsolete your products. In your quest toward specialty products, you’ll get no outside help. You own this one, baby.

More in 2-minute video at 9. Avoid the commodity death spiral

If you like sub-optimizing, you’ll love using traditional voice-of-customer methods.

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B2B companies have huge advantages over B2C, but they may not be obvious. After all, didn’t the same fellow who bought a rail car of soda ash also buy a can of soda pop? Nope. He changed… a lot. B2B customers are more technically savvy, objective, supplier-dependent, and can predict their needs. Careful reflection of these differences leads to different approaches.

More in 2-minute video at 15. Put your B2B advantages to work