You have to deliver important value that customers cannot get anywhere else to command a higher price. If customers can get this same value from just one other supplier, they’ll use it as leverage for lower pricing. So the difference between delivering new value and matching existing value is the difference between raising and lowering market pricing.
Download our Free white paper to discover how the Innovation Wave will differ from earlier Quality and Productivity Waves. Catch the Innovation Wave (page 8).
If you don’t ask customers the right questions, you can’t quantitatively assess their next best alternative. So you’ll have to guess at pricing. Guess too high and customers won’t buy. Guess too low and… well, customers will let it go this time. And you leave money on the table, perhaps for a decade or more.
Read more in this free white paper, Catch the Innovation Wave (page 12), which details how your company can improve customer value and experience a significant increase in sustainable organic growth.
Picture this: A customer tells your sales rep what they want, who hands it off to your R&D. This clever customer tells your competitors the same thing. Terrific. If more than one supplier crosses the finish line, you can forget any price premium. Try this: You choose the race conditions by targeting an attractive market, and exploring its needs better than competitors.
More in article, Are You Squandering R&D Resources?
If all customer outcomes in a market are either unimportant or already satisfied, you’ll see low Market Satisfaction Gaps. This is an over-served market, and there’s only one thing that makes these customers happy: Dropping your price. Race to more attractive markets and hope your competitors waste resources here. Have you identified your over-served markets yet?
More in article, Customer Interviews—By the Numbers (Originally published in B2B Organic Growth Newsletter).
Companies think they know how good competitors’ products are. But when they conduct customer-centric side-by-side testing, they’re often shocked by this unfiltered view of where they really stand. Like a beautiful theory being attacked by a brutal gang of facts. Not pretty, but better than launching a dud. Doing this properly isn’t that hard… but is very uncommon.
More in article, 5 Growth Risks You Can Stop Taking (Originally published in B2B Organic Growth Newsletter).
Two conditions must be present to capture maximum value in product pricing. Condition A: Your product provides a benefit the customer values greatly. Condition B: The customer is unable to get this value elsewhere. If you only interview customers, you learn A, but not B. You need rigorous side-by-side testing for B. Few companies do this correctly. Do you?
More in article, 5 Growth Risks You Can Stop Taking (Originally published in B2B Organic Growth Newsletter).
Do you think your competitors also plan to exceed market growth? So, all the competing suppliers plan to grow faster than the market they serve, year… after year… after year. As Dr. Phil would say, “How’s that been working for you?” Maybe it’s time for a different plan. A plan built on innovation, not hope… on well-grounded skills, not blue-sky spreadsheets.
More in white paper, Catch the Innovation Wave (page 4).
Will you win because your R&D people are 20% smarter than the competition’s? If that logic sounds shaky, here’s a suggestion: What if your R&D worked only on problems customers truly cared about… while competitors kept guessing what to work on? Would that be a competitive advantage? This is easier than you think… but maybe you’d rather try to hire geniuses.
More in white paper, Catch the Innovation Wave (page 4)
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 article, Seven Mistakes that Stunt Organic Growth
About 100 books on innovation are now written weekly… and 100 times as many articles on innovation are now published as in the 1970’s. So if you haven’t noticed, you may not be paying enough attention. You know… like General Motors wasn’t paying attention to Toyota and the Quality Wave in the 1970’s.
More in white paper, Catch the Innovation Wave (page 2)
In the 1970’s, Detroit automakers didn’t realize they were in a battle for quality… but Toyota did. Do you know if your company is in a battle for innovation? One way to find out is to wait until a competitor upends your market with a blockbuster. Another is to start building innovation capabilities first.
More in white paper, Catch the Innovation Wave (page 3)
