Saturday, February 3

Getting customer insight right

The idea that globalization causes a convergence of tastes is mistaken -- it is rare that the world consumes a truly standardized product offering. The stubborn Political, Economic, Technical, Cultural and Legal differences among country-markets continue to make global marketing a real headache for firms, particularly those firms selling products to individual customers. The reality is that many so-called "global" firms are required to have deep customer insight into numerous country-markets while developing their product offerings. A huge, time-consuming and expensive task.

I came across this interesting Web site that offers innovation games for "Creating breakthgrough products through collaborative play." These tools can be very useful because they allow you to go beyond the "We asked our customers what they want" mentality that often leads to very mediocre results.

If Edison had listened to customers, he would have made a bigger/brighter candle.

If Henry Ford had listened to customers, he'd have bred a faster, more powerful horse.

McDonald's listened to their customers and gave them salads, many of which were left on the shelf uneaten.

Listening and responding to customers is one of the reaons why firms pursuing a disruptive innovation strategy can make headway as incumbents flee up market with their sustaining innovations. Airlines in Asia are today listening to their customers and providing them with better wine and television screens in the back of seat headrests. Meanwhile, the no-frills airlines are quietly disrupting the industry -- just as they did in the United States and Europe.

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2 Comments:

Blogger Paul (from Idea Sandbox) said...

Working at Starbucks I saw this challenge with both drink options and food offerings.

People *say* they want low fat... But that is not what they ask for or buy.

While Starbucks always tries to offer low-fat items... Each time they skewed the offerings to suit what people *said* they wanted... like McDonald's - those items sat un-purchased.

Nice post. - Paul

12:35 PM  
Blogger Gordon Graham said...

Thanks for sharing the Starbucks insights! I actually got the McDonald's story from the excellent http://www.adliterate.com blog . It's a fantastic blog if you are interested in brand building and advertising.

11:10 AM  

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