| Several years ago I came across one of the most | | | | commodity, these generic answers leave little room |
| useful and practical articles on market research I | | | | for new product developers to devise truly |
| have ever read -- "How To Turn Customer Input into | | | | innovative new products. |
| Innovation" by Anthony Ulwick. | | | | The reality is that customers have a hard time |
| Published in the January 2002 Harvard Business | | | | articulating why they do what they do and what will |
| Review, the article briefly outlined a methodology and | | | | motivate them to buy a new product. Therefore, |
| set of tools for gathering customer input in a way | | | | traditional research methods -- such as talking to |
| that actually drives product innovation. In addition, the | | | | customers about the solutions they want or can |
| article illustrated how Cordis -- a medical device | | | | envision -- essentially ask them to act as product |
| manufacturer specializing in products for interventional | | | | developers and marketers, and that's a job most |
| vascular medicine -- used Ulwick's approach to | | | | customers are ill equipped to do. |
| innovate the heart stent and gain market leadership | | | | How do you gather customer input in a way that |
| in the angioplasty balloon market. As a result, Cordis' | | | | supports innovation? |
| stock went from $20 to $109 per share when it was | | | | Start by silencing the literal voice of your customers. |
| acquired by Johnson and Johnson. | | | | In other words, suggests Ulwick, stop asking |
| Now, Ulwick has updated his tools and provided a | | | | customers to tell you how and what to innovate. |
| more comprehensive look at his methodology in his | | | | Instead: |
| recently released book, What Customers Want | | | | *Focus on the jobs your customers need to get |
| McGraw Hill). This book should be required readying | | | | done |
| for anyone involved in product development and | | | | *Work to uncover measurable outcomes your |
| marketing. Partly because it offers a comprehensive, | | | | customers hope to achieve |
| step-by-step approach for converting innovation from | | | | *Isolate important customer constraints |
| a random hit-or-miss process into a more methodical | | | | By directing your research towards these key areas, |
| approach, but also because it greatly reduces the risk | | | | you will make more appropriate and better-informed |
| of new product failure and substantially increases the | | | | decisions about what represents meaningful |
| odds of success. | | | | innovation for your customers. |
| In a world where some 80 to 90 percent of new | | | | A Good Investment |
| products fail, the ROI for using Ulwick's methods is | | | | For me, the best and most practical part of the book |
| substantial. | | | | lies in Ulwick's eight-step approach, which dramatically |
| New Solution to an Old Problem | | | | improves every aspect of the innovation process |
| According to Ulwick, most customer research | | | | from segmenting markets and identifying |
| provides little real value to the companies conducting | | | | opportunities to creating, evaluating and marketing |
| it. Worse, it often misinforms their decisions and | | | | breakthrough product ideas. |
| steers them in the wrong direction. | | | | Drawing on more than 200 complete studies, Ulwick |
| Why? Because the methods most companies use to | | | | loads his book with real life examples that bring |
| gather customer input are inherently flawed. In fact, | | | | meaning and insight to the process and make it easy |
| Ulwick argues that faulty research methods | | | | to translate his principles to companies of all shapes |
| represent both the source and the cause of most | | | | and sizes. |
| new product failures. Based on my own experience, I | | | | For less than $20 and a few hours of reading time, |
| tend to agree. | | | | What Customers Want delivers a remarkable return |
| Traditional qualitative research methods ask | | | | on investment. A can't-miss formula that delivers real |
| customers to define their needs, benefits, | | | | innovation that your customers will value, it just |
| specifications and solutions. However, the most | | | | might ensure that your next new product |
| frequent responses to questions about product | | | | introduction hits the target in regards to the jobs |
| improvements focus mainly on "better quality" and | | | | your customers need help with and delivers |
| "lower price." Besides indicating that the product | | | | measurable improvements to their most important |
| category under question might be perceived as a | | | | outcomes. |