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
For example, do you have a serious discussion about customers’ next best alternatives? What do we know about these alternatives, how do we know this to be true, how do customers measure their satisfaction, and how is our new product design stacking up? Without such insight, you’ll have to guess at your new-product pricing.
More in article, Four Steps Needed for New Product Differentiation
If any process in your company should be customer-driven, it should be the one developing products for customers, right? So try this at your next review: Ask team members how many hours they spent talking to customers… and how many hours working internally. You may be surprised at how little time was spent understanding customer needs.
More in article, Should Your Stage-Gate® Get a No-Go?
A Landmine can kill your project… but who steps on a Landmine they can see? When you convert assumptions and questions into facts, you make landmines visible and therefore harmless. A Launchpad is an unexpected, high-value customer outcome. Discover these before competitors to develop solutions in a “competition-free zone.”
More in white paper, Innovating in Unfamiliar Markets (page 13).
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.