Your market is growing at 3% and your operating plan says you’ll grow faster than this next year. Of course, your competitors have similar plans… meaning everyone plans to grow faster than the market served. As TV psychologist Dr. Phil would say, “How’s that been working for you?” Could it be time for a different approach… e.g. understanding customer needs far better than competitors?
More in Leader’s Guide Videos Lesson 1, Recognize your growth challenge
If you focus on unimportant outcomes, customers will greet your new product with a collective yawn. If you satisfy outcomes competitors already meet, customers will greet you with a phone call requesting lower prices. How long will this take them? Depends if they have you on speed dial.
More in article, Your Best Path to Profitable, Sustainable Organic Growth
After qualitative interviews, seek customer ratings on key outcomes: “How important is abrasion resistance on a 1-10 scale? And how satisfied are you today with abrasion resistance on a 1-10 scale?” This lets you converge with confidence on only those outcomes customers care about… those with Market Satisfaction Gaps over 30% (important and unsatisfied).
More in white paper, Catch the Innovation Wave (page 11).
Customers only pay a higher price for your innovation if it is important, measurable, and distinctive. The customer must a) care about the outcome being improved, b) observe the improvement so you get credit for it, and c) be unable to get the same improvement from your competitors. Sorry, but you need all three.
More in New Product Blueprinting article, Three Steps to Unbeatable Value