Heads Up!

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Message for this Week:

Gaining Customer Insights

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Gaining Customer Insights -- the Creative Way

Finding out what customers want is a fundamental aspect of innovation. However, it's one of those things that is easier said than done. Customer surveys and focus groups have proven ineffective in most cases and bad data can be worse than no data.

Gerald Zaltman in his book, "How Customers Think" states, "The correlation between stated intent and actual behavior is usually low and often negative." He tells a chilling tale of a household appliance manufacturer whose market research showed that 60% of customers were likely to purchase the new appliance. A year later the actual results were that 12% had actually purchased and the customers were unable to explain their reasons for not buying. Imagine gearing up sales, marketing, manufacturing, distribution and service for a new product and being off by a factor of 5!

 

So how do you gain true customer insights? We thought this would be an interesting question to explore to see what you've done and seen done. One example we've seen recently is Staples' InnovationQuest. The nationwide quest for simple new office products was launched in 2003 and prospective inventors had until November to submit their ideas. To enhance participation, Staples offered a $25,000 prize to the top winner and $5,000 for the other eleven finalists. Additionally, the winner would receive royalties if the product was produced and sold by Staples.

The very process of launching the InnovationQuest created positives -- in addition to engaging people (and most likely, customers) with Staples, the inventions submitted would highlight perceived problems. This week Staples announced the twelve finalists out of 8,000 entries and invited the world to judge them. You too can vote at: http://inventionquest.dja.com/HomePage.html The voting process invites other customers into the mix and their votes are another way to get feedback. I'm not sure that the inventions include any blockbusters such as the Post-It Note, but the value is in the customer feedback rather than the actual new products ideas submitted.

So, tell us what creative ways you've seen to gain customer insights. Send your responses to staff@innovationnetwork.biz ... or better still go to the Heads-Up! Blog where all the archives are stored and enter your comments directly.
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