Blog Category: Awkward Realities

You can’t achieve profitable, sustainable growth behaving like your competitors.

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Unless your company has smarter employees, some inherent unassailable advantage, or a markedly different approach to satisfying customers… pesky competitors will always limit your growth. What if you and your competitors were all committing the same innovation errors… but you corrected them first? Good news: There is much to correct.

More in research report, www.whatdrivesb2borganicgrowth.com

Closely examine B2B innovation malpractice, and you’ll see a pervasive disregard for customer needs.

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It’s ironic: B2B customers have the only vote on whether our new product is any good. B2B customers want us to innovate on their behalf. B2B customers are eminently qualified to guide us. Yet many suppliers all but ignore B2B customers when developing their product concepts. Today, this malpractice is global and pervasive in nature. We can do much better.

More in white paper, www.guessingatcustomerneeds.com

Innovation is the last frontier left for us to settle.

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The average company only has a 25% success rate after it finishes its front-end work. With Six Sigma success, you’ve got three defects per million attempts… while your new product development is stuck at three defects per four attempts. Can you think of any other area in your company with this level of waste? Don’t let your competitors tame this frontier first.

More in white paper, www.catchtheinnovationwave.com (page 3)

Do you use Voice of Customer (VOC)… or Voice of Ourselves (VOO)?

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Companies like to talk about the voice-of-the-customer, but most just listen to themselves as they create “conference room” products. The team gathers internally to decide for the customer what they’ll want in a new product. This team will always lose to the team that immerses itself in the customer experience, and designs a product to improve that experience.

More in 2-minute video at 22. Immerse your team in customer outcomes

What do we KNOW boosts new product success?

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Turns out that understanding market needs makes a big difference. In recent AIM Institute research, nearly 90% of survey respondents claiming a very poor understanding of market needs had new product success rates below 50%. This percentage dropped to less than 10% those for those claiming a good understanding of market needs. So understanding what customers want before you develop your new product is probably a good idea.

More in research report, www.b2bvocskills.com (page 7)

Imagine if doctors diagnosed patients the way many companies interview customers.

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Imagine your doctor entered the exam room, saying, “I’ll ask some routine questions to validate my hunch… so I can start treatment.” Would he be your doctor for long? Wouldn’t you rather have a doctor who listens first and asks intelligent questions? Your customers feel the same way, so leave your hypothesis in the waiting room and start engaging them.

More in 2-minute video at 29. Engage your B2B customers

Your innovation needs two types of metrics: “New Product Success” and “Learning Success.”

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New Product Success is a metric for current projects. Learning Success—which measures skill-building progress—is a metric for future projects. Most companies just consider New Product Success. Worse, they only look at ultimate metrics, e.g., sales. If they also used intermediate metrics, they’d have enough time to apply what they learned from these metrics.

More in white paper, www.newinnovationmetrics.com

When analytical and discovery thinking compete in NPD processes, expect the former to dominate.

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Analysis looks for what has been done wrong; discovery for what could be done right. Failing to discover opportunities is a costly error. Paradoxically, it is most often forgiven. In fact, if your team fails to develop a blockbuster because it missed a critical customer need, no one will even notice. At least not until a competitor does a better job. This is called an error of omission and it’s a serious problem for many B2B companies.

More in 2-minute video at 25. Let your customers surprise you

Fixate on the only source of unlimited potential, not sources of diminishing return.

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Unlike innovation, quality and productivity apply to current operations and yield diminishing returns. What do you do after you reach zero defects… or your factory is being run by the proverbial “man and a dog”? (The man feeds the dog; the dog bites the man if he touches the controls.) Customer-facing innovation is different. There is no limit. Just look at Apple Computer.

More in white paper, www.catchtheinnovationwave.com (page 2)

Once your new product is launched, the pricing insight window slams shut.

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Customers will help you set prices before—but not after—you launch your new product. They want you to develop innovative new products and services that deliver value to them… so they’ll give you insights to make this happen. These same insights allow you to establish optimal pricing. Do you know how to do this? It will be too late after you launch your product.

More in 2-minute video at 34. Use value calculators to establish pricing

“Maximize shareholder value” is the pledge of allegiance recited in board rooms. It is a poor goal.

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This mantra guides the decisions of the business masses. But is it right? Peter Drucker didn’t think so. He said the primary purpose of a business is to acquire and keep customers. I believe increased shareholder value is a good result, but a lousy goal. You’ll have better results if your goal becomes: “Understand and meet the needs of our customers.”

More in 2-minute video at 5. Shareholder wealth is a poor goal

The B2B interviewer should have two goals: customer insight and customer engagement.

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Research shows the best way to sell a product is to probe customers’ needs. But why wait until the product is developed? If you probe beforehand, you’ll create a better product and “pre-sell” your product. This isn’t practical for interviewing millions of B2C toothpaste buyers, but it is for concentrated B2B markets. B2B engagement skills aren’t difficult. Do you have them?

More in 2-minute video at 29. Engage your B2B customers