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Awkward Reality #403

Awkward Reality #402

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

402-Pricing-Window

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

Awkward Reality #401

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

401-Business-Pledge

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

Awkward Reality #400

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

400-Business-Interview

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

Awkward Reality #399

Overwhelm your competitors by turning a trickle of customer feedback into a torrent.

399-Torrent

Some companies rely on a handful of internal VOC (voice-of-customer) experts to interview customers. You’ll do far better if you train a critical mass of employees—who routinely interact with customers anyway—to gather customer needs. Keep your VOC experts as coaches and trainers, but implement “VOC for the masses.”

This certainly applies to your sales team. Instead of being satisfied with just a “sales force,” why not also commission a “learning force”? That’s what happens when your sales professionals have strong voice-of-customer skills.

More in white paper, Everyday VOC at www.EVOCpaper.com

Awkward Reality #398

If you’re paying attention, you can’t miss the Innovation Wave.

398-Innovation-Wave

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 might not be paying close attention. You know… like General Motors and Chrysler weren’t paying attention to Toyota and the Quality Wave in the 1970’s.

The good news is that your competitors may still be focused on initiatives other than whole-hearted, market-facing innovation. Like Toyota in the Quality Wave, you create a competitive advantage by moving faster and harder on this. More in 2-minute video, Catch the innovation wave.

More in white paper, Catch the Innovation Wave

Awkward Reality #397

If you like confirmation bias, you’ll love “validating hypotheses.”

397-Confirmation-Bias

Think you can validate your new product concept with customers and avoid confirmation bias? Good luck with that. In your last performance review, did you agree with your boss’s praise more than his criticism? If so, you may not have overcome confirmation bias quite yet.

So if you want to avoid innovation malpractice, you need to stop leading the witness in interviews. Let them lead you to what really matters to them. My suggestion: Focus your customer interview on their desired outcomes. Then just check afterwards to see if their outcomes are a good match for your intended solution.

More in 2-minute video, Give your hypothesis the silent treatment