Consumer Focused vs. Consumer Driven

I recently found myself in an interesting dialogue with a colleague. I mentioned that successful innovation stems from being focused on the consumer. He agreed but within moments mentioned the phrase “consumer-driven”. I pointed out that I disagreed with him on this, and a perplexed look immediately crossed his face. “But you just said…”, he stated, thinking he was merely restating my original premise. After much discussion, we agreed that this is much more than semantics.

Voice of the Consumer (VOC) research is consumer driven. Purists of this tool insist that anything spoken by a consumer be captured verbatim, and maintained as such throughout the ideation and development process. The belief here is that if you deliver on what consumers say they want, you will be wildly successful. In other words, develop a process where the consumers “drive” what it is provided to the marketplace.

I don’t buy it. I have seen too many focus groups and one on one interviews where the researcher asks consumers “If you could have anything you want, what would you ask for?” That “ground-breaking” question is more often than not met with a room full of blank stares. If answers are provided, they typically reflect an existing product that has been seen by the respondent, but not owned.

The fundamental flaw with “consumer driven” is that your average consumer is not an inventor, a dreamer, or a visionary. Unlike product managers, their world does not revolve around specific products or categories.

Now contrast that with “consumer focused” innovation. To focus on something is to pay it special attention and to understand it from as many perspectives as possible. That still involves interaction with the consumer, but it is not limited to their exact requests. I can learn as much about a person sometimes from what they don’t say as from what they do say. I seldom conduct a contextual interview but what I see people contradicting their own words with their actions. Seeing what they own, how they live, how they entertain themselves, how they interact with their families or communities can all be very telling in understanding what new product or service would best resonate with them.

As product developers and marketers, we need to embrace this. If we allow consumers to drive our efforts, we will be limited to the types of incremental improvements that they can readily envision. We’re the experts on our businesses. Let’s understand our consumers and the true needs they have. Then we can develop breakthrough products that truly delight them!

Innovation is Painful

There is one thing that all companies have in common... They're run by people. As people, we have an inborn aversion to pain. Granted, there is a difference in pain tolerance levels from person to person, but when you get right down to it, most of us will go out of our way to avoid pain, regardless if its physical, emotional or spiritual.

So we manage our lives and our businesses with this mindset; do what feels good, and avoid what doesn't. We may know we need to change (ourselves or our business), but significant, lasting change is unpleasant. So, we mollify ourselves with incremental improvements and hope for a brighter future. But this behavior seldom allows us to achieve our long term goals.

Sometimes life throws us into a situation where we have no alternative but to accept significant, permanent change. The loss of a loved one, serious illness, economic downturns, natural disasters are all examples of instances where we are cast into dramatic change in an instant. Forced, unplanned change may or may not lead to a stronger, more positive outcome. Sometimes it's more than a person can take, and they crumble under the pressure. Other people (like carbon under extreme pressure) come out shining like a diamond. In either instance, we're talking about transformation, not an incremental distinction.

What does it take to voluntarily put ourselves through the type of extreme risk and discomfort that can lead to breakthrough innovation? We must have the faith that the place we want to be is worth the cost of getting there. These goals must be something that we buy into at a very deep level. It's one thing to want to subtly improve a business. It's quite another to want to transform a business from an also-ran into an industry leader. Innovation requires boldness.

Just like life, sometimes its an outside influence that forces us into this decision. When faced with business catastrophe (restated as "the current recession"), what do you choose? Endure the pain, make the necessary changes and come out stronger, or fold under the pressure and move on?

Is it any wonder that so many talk about innovation, but so few actually do it?

Comfort Zone - In or Out?

Comfort zones are a fascinating concept. We all have them, yet no two are identical. They are formed by a combination of our upbringing, our life experiences and our aptitude for adventure (or lack thereof).

Over the weekend, I won some tickets to the Indy Fringe Theater Festival. Part of the prize package included a nights stay at a local bed & breakfast. At breakfast, my wife & I struck up a conversation with one of the performers (also staying there). When he found out that this was our first Fringe, he encouraged us to "get out of your comfort zone". I have a long-standing love for theater, so I couldn't imagine being challenged in this regard, but I found it to be an interesting comment.

As we attended numerous shows over the weekend, we did find ourselves out of our proverbial zone. Traditionally "taboo" topics, unexpected nudity and alternative lifestyles all came together in a perfect storm of oddness...

Don't get me wrong, we had a fantastic weekend, and found it to be very entertaining. But parts of it were challenging. I don't see adopting a new lifestyle now or parading around the office naked, but the experience did cause me to think differently, and I believe that is always good.

As innovators, we have our own comfort zones. It's very tough to create bold new products or services if we allow ourselves to remain within them. However, we also have to realize that our target consumers have their own comfort zones, and the reality is most won't buy products that fall outside of them. Close-out stores are filled with products that were too "out-there" to resonate with anyone specifically.

So what does this all mean? This is just more evidence that we really must recognize that our wants & needs are most likely different from our customers'. It will probably cause us some discomfort to find the zone that most resonates with them.

Switching to Wordpress

I have decided to switch this blog to wordpress from blogspot. The new address is jmccolgin.wordpress.com. If you have subscribed to this feed please make the change so that you can continue to receive new updates. I welcome your feedback on the new site. Please let me know what you think!

Having faith in your business...

In spite of the projected upturns in the economy, it seems that the news remains filled with companies (both large and small) going under. It grows increasingly tougher to remain optimistic about the future, when the present seems to only get worse. How do we discipline ourselves to do the right things now, so that we will be around when the economy does rebound?

I watched a movie over the weekend called Faith Like Potatoes. While it is primarily a Christian themed movie, it had a lot of tremendous applications for a business during a tough environment.

During these times, we all hear a lot of advice; better not spend any money, don't take any undue risks, delay any investments until times get better. And it's very tempting to follow these well-meaning suggestions. But the reality is, looking at our business in this way can take away the rewards that we should be striving for down the road.

In the movie (based on a true story), Angus, the main character, plants potatoes (a highly profitable, though somewhat risky crop) in a time of drought. Everyone told him he was crazy, that he would lose everything as a result. It drove those around him crazy that they couldn't see the progress of the potatoes as they grew underground. Those that went the "safe" route and planted corn could see their progress throughout the season. But Angus believed that he had done the right thing and would be rewarded when it was the time for harvest.

What potatoes are you planting? What investments are you making simply because you "know" its the right thing to do. In reality, we all operate in faith to some degree. We believe the sun will rise and set, we believe our employees will come to work, we believe that if we work hard we'll be successful. Why is it that so many remove faith from critical portions of their business?

More than ever, we need to believe that our companies will survive, and potentially thrive once again. With that in mind, we need to be equipping ourselves for the future, not just burying our heads in the sand to survive the present. Even if like potatoes, our investments are growing unseen in the near-term, we need to believe that doing the right things now will pay off in the future.

Sometimes it's about the journey

I'll admit it. I'm an impatient person. I like to get to where I'm going as quickly as possible. That's true for my Vision, my goals, and typically - even my road trips. So I was not initially excited when my wife "kidnapped" me this past week and told me we were going on a road trip.

Work has been stressful for awhile, and I've probably been less jovial than usual. Our 27th wedding anniversary is coming up, and she told me that we were going to escape life for a few days and head out to Gatlinburg, TN. I couldn't imagine what could be in Gatlinburg that was more important than what I was facing at work, but she persisted and we went.

My first reaction was to pull up Google Maps and determine the most direct route to get there. But along the way she insisted that we leave the Interstate and just drive through the countryside. Despite my discomfort in doing this, I went along with her request. And after awhile, it occurred to me that it was the journey that was important in this case. The experience of getting there. We stopped at a winery, toured a distillery and even ate at the birthplace of KFC.

Unlike most things I do in life, there was no agenda, no start or finish time and no due dates. It was just a time to be together and to take in the scenery. Why is it that this type of experience is so rare in our time-stressed culture? I have European friends that regularly take the entire month of August to just explore a new country or region. But we're so busy being busy that it seldom occurs to us.

We work with consumers all the time. They all complain that there is not enough time in the day to get everything done. Products that make them more efficient are highly desired, as they imagine gaining more free time through the use of them. In reality, if we could free up 30% of a person's time, how long would it stay unstructured?

Maybe the biggest unmet need people have is not simply a new product, but a change in perspective. Maybe we should focus on helping more people just enjoy the journey...

What is your account balance?

It's an interesting time to be a small business owner. The economy remains slow, spending is tight, paying clients are few and far between. And yet, it's times like these where you involuntarily begin to reap what you've sown. You see the investment that you've made in relationships coming back to you (either positively or negatively).

I had a tough conversation with our landlord this morning. I explained that cash flow is tight, and while we've done all the belt-tightening we can we're still looking at a couple of very lean months in the immediate future. I wasn't sure how he was going to take it, but he was more than willing to work out a win-win solution that helps us in the near term, while protecting his interest in the long term. He is a small-business man himself, appreciates the nature of our business and understands the value in keeping us both afloat.

Not surprisingly, I had a similar conversation with my staff. They tell me that they buy into our direction and are willing to make near term sacrifices for the long-term good of both themselves and the company. I am blessed to have a staff that is willing to reduce their pay now, while trying to drum up business for the future. In talking with other small business owners, I realize this is not the norm.

Even some of our clients have gone above and beyond to find opportunities to pay us, strictly to keep us in business. They realize it is in their best interest to have us around when the economy recovers, so they're helping us now.

My takeaway from this is simple - a tough economy really challenges more than your retirement fund. The "return" you get now is dependent on the investment in relationships that you made during the good times. Those whom you invested in are there for you now. Those that you didn't, have already either vanished, or are now calling in their chips.

You can't wait until you are in crisis mode to inspire your employees. You can't suddenly call on a client to help you out, if you've been only a vendor in their eyes. You can't expect a landlord to delay a few months of rent payment if he doesn't even know you by name. The time to do these things are when business is going smoothly.

If life is like a giant bank account, I'm certainly making a lot of withdrawals these days. Thank God I focused on deposits when things were better...

Consumer Transparency

Social Networks are changing the way we present ourselves and the way that we interact with others. It was not that long ago that we "presented" the image that we wanted to portray in a given situation. We had our "work-self", our "family-self", our "church-self, our "country-club-self", etc. Because each of these contexts were relatively self-contained, the persona that we conveyed could be (in some cases) quite different.

In the 1990's team-building became a big drive in corporate cultures. The thinking was that if you could get to know a person outside of a work setting, you would have a new appreciation for that person. In other words, if you came to see your co-worker as a devoted parent, a loving spouse or a community volunteer you could come to appreciate that person in a more holistic way. In fact, you might even detect skills that are not currently utilized in the work place and be able to put them to good use.

But today, more and more people are putting their entire lives on display for all to see. Rather than separating and projecting multiple images, people are becoming comfortable being who they are and not trying to be who people expect them to be.

When it comes to understanding consumers in the marketplace, we need to take this perspective into consideration. It is great to understand a person's opinion about a given concept or idea. It's even better to watch how they interact with a product to surface their unspoken needs. But how well will that predict their buying habits? What role do their political views play in their day to day lives? How about their spiritual nature? How much better could we do in developing new products if we understood the "whole person" that we were targeting?

It appears that people are putting their entire lives on display through twitter, facebook, myspace and other networks, depicting themselves as a "total person" with many aspects and attributes. That's the perspective that product & service suppliers must begin to consider when developing new offerings.

Business is like a kidney stone...

I woke up yesterday with back pain. While I've had a sore back before, this was different. I assumed I had "slept wrong" and that was the culprit. But as the day progressed I began to wonder if it was actually something else. I've watched my wife endure several bouts of kidney stones, and based on the pain she experienced, it was clear to me that this was not something that I wanted to emulate. So, I searched the internet to see if my condition is in fact kidney-stone based. I found the following image:

Granted, the body in this illustration is shaped differently than my own (thank goodness) and the marked pain is on the opposite side than I am experiencing. However, this (along with the accompanying text) was sufficient to convince me what I am in for. A quick call to my Dr. and I learned that there is nothing they can do to help me; I just have to drink lots of water and let it pass. They did write me a prescription for Vicadin (which probably makes me think this blog entry is much more clever than it really is), which was very helpful. They also asked me to "capture" the stone if at all possible, so they can see what caused it. That should be no problem, since the same web site that helped me to self diagnose, shows me how to capture the stone...

Once again, I can see where I will have to use some imagination to develop the tactics specific to my situation.

I woke up this morning feeling much better. I foolishly assumed that I must have passed the thing last night and I was over the hurdle. Guess what, mid-morning and the pain was completely back...

And that really does make me think of the current state of many businesses.

• There's much pain to be endured at the moment, but there's hope in sight.
• If we can survive the present the future holds great promise.
• There have been some false moments of hope, only to find that we still had a ways to go.

As my mother always used to say, "this too shall pass". In the meantime, pass the Vicadin.

A new world of insight

I've spent my career trying to understand consumers, their lifestyles, their needs and their passions. I've watched people play paintball, take showers, plant gardens and cook gourmet meals. I've traveled the world to understand how consumers in different cultures differ in their desires and preferences.

But last week, I had a brand new experience. I spent 8 days in northern Haiti. Our charge was to capture video that could be used by a mission group to promote their ministry, solicit donations and encourage child sponsorships. Unlike past international trips, I didn't stay in a 5 star hotel and venture from my air conditioned cab into a recruited home.

This was immersion. We worked side by side with locals, conducted interviews with people that had no clothing in villages that had neither electricity nor running water. We traveled in a taptap, essentially an open bed truck with a steel insert for passengers to hang onto.

Haiti is the poorest nation in the Western Hemisphere. Having spent a lot of time in India, I've seen poverty before, but never in such a beautiful setting. Haiti reminded me a lot of Hawaii, or of many of the other Caribbean islands, but with poverty spread all across it.

In spite of the poverty, I've never encountered a culture so warm and friendly as what the Haitians were. As we walked or rode around, children would run out to wave yelling "Hey Blanc, Hey Blanc" - translating to Hello White.

It was both sad and beautiful at the same time. Seeing children with nothing that could laugh, smile and play with stones made me realize how spoiled our culture truly is. Our nation is in a panic because our 401k's have dropped in value. In Haiti, people wonder when they will eat again.

I spoke with a couple of civic leaders about the state of their nation. They made a comment to me that they truly appreciate what America has done for Haiti, and that the generosity of money has been considerable. However, if Haiti is to ever rise out of it's current state, it's time to do more than send money. It's time to send "teachers". People that can teach people how to farm, how to run a city, how to teach children, how to run a small business.

It will only be through education that the economy will be able to turn around and begin to grow from it's current third-world status.

I know in my own life it's often easier to open the checkbook and write a check to a good cause than it is to commit my personal time and energy to something. But checks alone are not going to improve our world. This was my first trip of this nature. I've got a feeling, it won't be my last.

Business Lessons from the Garden

I've planted a garden this year in my back yard. It's the first year I've had a garden at this house, and the first I've attempted in years. As I work in the garden each evening, my mind thinks about the parallels between this patch of earth, and business... Sort of like "Garden Musings". The following are some of the connections that I've been making. I'm sure I will add more as the season goes along.

"Don't expect too much, it's very hard to get a first year garden to grow."

I've heard this from many people, and I'm finding there is much wisdom in their words. The soil is not cultivated or fertile. It takes a lot of time and energy to work the soil and add the ingredients to make it garden ready. They say that next year, once it's been established, it will be infinitely easier...

This is no different than going into a brand new market with a business or new product line. It takes a lot of money and effort to "prepare" the market for your offering. It is much easier to go into an established market with a product and differentiate yourself than to try to build a market where one did not exist.

"I planted a lot more seeds that what actually came up"

I'm sure this ties to my first point, but I was surprised at how many seeds never emerged. It took as much energy to plant the dormant seeds as it did to plant the ones that have sprung up. There was no way of knowing which would be which when I put them into the ground...

That sounds a lot like prospecting. You never know which appointment, or which phone call will culminate in a contracted job. It takes as much time and nerve to make a call that goes no where, as it does to make a highly successful call. As with the garden, a more established plot will yield a higher percentage of crop. However, it is safe to assume you will always have to plant more seeds than you can possibly hope to grow.

"My sweet corn didn't come up at all, so I replanted it. This time it's growing".

I love sweet corn. And I was horribly disappointed when several weeks went by with no sign of growth... So, I started over, bought more seed and planted it all again.

In business, there are times when you want it bad enough you just won't take no for an answer. If you are met with rejection, you start again (and again if necessary) until you see success.

"It takes a lot of time and effort before you see any produce from the crop"

I'm probably 60 days away from eating much from my garden. And yet I find myself spending at least an hour/day weeding, feeding and watering my young plants.

Prospects are no different. They seldom spring up overnight and bear fruit. They show some level of interest, but require nurturing and guidance before you gain the benefit from them.

The Cart before the Horse?

I've been watching a new series on the Discovery Channel called Pitchmen . In this show, self-proclaimed informercial superstars Billy Mays & Anthony Sullivan speak with aspiring entrepreneurs each week whose sole goal is to get a shot at a national infomercial and the resulting overnight riches. The show does a good job of showing both high-potential ideas as well as ridiculous ones.

Last week's show had a product being pitched called the "Spin-Gym". The inventor was Forbes Riley, a woman who is a QVC celebrity in her own right. She developed a fitness product that will "fit in your purse" and yet provide you with "total upper body fitness". She was understandably passionate about the product and is promoting it across every channel imaginable.

The problem is two-fold. First, the product is hardly unique. I had a toy as a child that does essentially the same thing (except that my toy made a cool sound when you spun it really fast). I'm not sure how she patented the thing, but evidently she did. But more importantly, this seems to be the classic solution looking for a problem. On the show she had huge body-builders using this product as if to imply their shape somehow came from this tiny product. Yes fitness is a growing trend across America. However, the form of any new product must suggest its intended use in a manner that is believable. Be honest, can you believe in a fitness product that you hold only with your thumbs? You really got the opinion that the "research" they did consisted of putting the Spin Gym into people's hands with the question of "Isn't this the greatest?" or "Can't you feel the muscle burn?". On the show the product was tested in two markets at different price points. Almost no interest was generated in either market.

Having this unique opportunity to see this real-life, time-compressed example was fascinating. This same thing happens across our country everyday, both with entrepreneurs as well as with established corporations. Somebody falls in love with an idea, and becomes blind and deaf to feedback. They are determined to muscle their way into the market, regardless of what they hear.

How much time, money and energy could be saved if they sought the feedback early in the process, at a time when they could still make modifications (to the product or the messaging)? Let's be outrageous here... What if they actually spent the time to understand the needs of their targeted consumer, then designed a product to satisfy it?

It sounds so simple. But it seems to fly in the face of the way so many do business.

Life Lessons from the Indy 500

I had the chance to go to the Indy 500 over the weekend. Exciting race, perfect weather and the true highlight of the Memorial Day weekend. Since the race, I've been reflecting on some of the parallels that I see between this years race and life in general. I'm listing some of these below:

• It's tougher than ever to get in the race. There used to be a considerable difference in the qualifying speeds between the fastest car and the slowest. This year there was only 3 mph separating them... That sounds a lot like the people and companies that I work with on a regular basis. What used to provide you with a strong competitive edge merely gets you "in the game" these days. What are you doing to stand out from the crowd? Being the "best" at a traditional measure may not produce the results it once did.
  
• Performance across the field is at an all-time high. 19 cars finished the race on the lead lap, a new track record. It wasn't that long ago that 1/3 of the field would drop out due to mechanical "failure" of some sort in the first half of the race. It seems to be a given that a car can now race for 500 miles unless an accident takes it out of the field... Are your customer expectations any different? We used to think that a car with 100k miles was on it's last leg. New cars today don't even require service until then. What used to be an acceptable level of failure, will now turn a consumer to a whole new brand.
  

• A few big names (Helio & Danica) provided most of the exposure and the profitability... How "real-world" is that? You may provide a dozen high-value products or services, but the odds are your consumers associate only one or two with your brand. Are you taking proper care of those to ensure their longevity?
• Mario Moraes crashed on the first lap, and yet earned more prize money than Paul Tracy who finished the race on the lead lap... It's not always the traditional measures in life that drive our rewards. Being faster or working harder may not guarantee that we "win" more than others. Sometimes it's about being in the right place at the right time, or making the right networking connection. It could be about being the better negotiator early on. At a minimum, it's about being aware of the bonuses that life offers us along the journey.

Transitions

I went to my oldest son's graduation at Purdue over the weekend. It's hard to believe that he is already finished with college and is ready to enter his next phase of life. At the ceremony there were no protests, no alternate venues or controversy of any kind. But there was a lot of talk of near term discouragement. Over and over we heard that this was the toughest climate for new graduates to enter the job market since the Great Depression. I have no ideas of percentages, but none of my son's friends have been able to secure jobs as of yet. When companies have the choice of hiring new graduates or people that are currently out of work with 5-7 years experience, why would they choose the "newbie"?

As a dad, I'm trying to encourage him to take a long-term perspective and realize the current economy will not stay so dismal forever. And yet, he's facing the same reality that many companies (including my own Insight2) is facing, in that he has to somehow survive the near term to be there in the long term.

Something we're both learning in this interim phase is the importance of taking a non-traditional approach to the future. He went through numerous university sponsored interviews, taking many of them to the second and third levels. But ultimately to no success. Likewise, I've found that the way I've used to sell business is not effective in this climate. Now that he is out of school, I've been pointing him toward my network trying to surface opportunities. In just a week, I've been able to get him as many interested interviews as he was able to get through the university in a semester. From a business standpoint, I can't sell what I've been selling in the way it used to work. I'm having to really open my eyes to new networks to see where the opportunities lie. And I'm having to adjust what I sell to meet the needs of my new clientele.

This is a tough transition for my son. It's been a tough transition for many US companies. But those that survive it will come out of it with a whole new perspective, a leaner approach and a true appreciation for innovative approaches to doing business... or to finding jobs.

How do you define your business?

Are you in the "plastics business"? Perhaps you say that you make small appliances, or fishing tackle, or gas grills... Most people describe their business by either the technology they specialize in or the end products that they produce. That's not an inherently bad thing, but it can limit your growth, especially if your consumers don't operate by the same definitions.

Let's say for example that you make aluminum shelving. Your expertise revolves around the forming, shaping and packaging of aluminum shelving systems. You sell your products through big-box retailers and consider your competition to be low-cost imported aluminum shelving.

But how do consumers define your business? Realistically, they're not looking for shelving specifically, but rather a solution for organization. Specifically they are buying an "organized closet" or a "neat garage". When they go to the store, they are probably not pre-disposed to aluminum shelving at all. They look at wire, wood and plastic alternatives, then move beyond shelving altogether. Cabinets, peg-boards, tubs and wall-mounted rail solutions all come into play.

Every one of these products is vying for that consumers dollar, and they will ultimately decide which variation will provide them with the best option for their specific need. By definition, the aluminum shelving company plays into a very small sub-set of the consumer's consideration. No matter how "innovative" they try to be with their shelving they may or not ever intrigue the decision maker when it comes to a purchase decision.

Fast forward and assume this same company redefines themselves as a provider of home organization solutions. The world of opportunity literally opens up before them. Now they can learn what the real needs of their consumer are, and develop new products accordingly. While they will still wear the lens of aluminum forming core competency, they can look beyond that in terms of areas they can explore.

Don't let your definition of your company limit the possibility of your future.

Are "Big-Box" Retailers Killing Innovation?

I just got back from the National Hardware Show in Las Vegas where I was able to meet with several associates from different companies. One resounding and discouraging theme that I heard all centered around their absolute dependence on big box retailers such as Wal-Mart, Lowes and Home Depot. They all spoke of great product ideas that they had developed, but were not going forward with because they could not sell them in to these behemoths. The buyers are not interested in taking chances on "unproven" products or in expanding beyond their comfort zones. One of my associates used to work for a heating company. He told me that in the five years he was there, he went through 6 buyers. No single buyer ever lasted through an entire heating season. In other words, they were never around to be held accountable for the items that they agreed to put in their stores. He described these buyers as "ultra-conservative, MBA bean counters with a very short term focus". No one with this mind set is going to be willing to take a chance on "unproven innovation". They only want to force ongoing cost reductions as they focus on their internal margins. If a buyer is only going to be in a job for a short time, what incentive is there to take any risk?

Things have not always been this way. There was a time when I worked for Whirlpool Corp and was the product manager for Kenmore refrigerators. In those days, the appliance buyer at Sears was like a King. Once a person made it to that level, he was there for quite some time, until a larger category opened, or they left the company to go onto greener pastures. The buyer carried a lot of weight; one of the most important aspects they looked for was unique innovation. We would often include the buyer throughout the product development process, so they could appreciate the needs of the consumer, and recognize the value of the features that we placed on their products. They would work with us on merchandising and placement as we all had a vested interest in the product's success. As time went on, relationships grew and trust was strengthened. They were more willing to share in the risks with us as we ventured into new product spaces.

The companies that I was visiting with have been forced to cost reduce themselves to the point that they now only focus on the big box retailer. They no longer have the means to support distribution to the type of independent shops that would love a unique product offering.

It's truly a shame in my opinion. I saw several great ideas (behind closed doors at the show) that will not make it to market. And for everyone I saw, I heard of two more that fall into the same category. Many of these were products that I would personally love to own (or at least have the opportunity to buy). But I will never have the chance to. What has become of our enterprising culture of innovation? I love to save money just like the next guy, but you know what? When I'm not shopping for commodities, I'm going to start shopping at independent retailers. The ones that might be looking out for my best interests (as a consumer) instead of shear volume and short term profitability.

Are unmet needs an oxymoron?

Unsettling thoughts in the shower this morning... What exactly is an unmet need, and why are so many people / companies fixated on satisfying them?

Everybody talks about helping companies uncover their customers' unmet needs. I've been guilty of it myself. The term has become commonplace across many industries as well as across multiple disciplines. As far as I know, no one has ever questioned it's meaning, so I should probably leave well enough alone.

For some reason, I couldn't shake this question while in the shower this morning. When you think about it, we all have needs. Sometimes we can buy a product or service that alleviates those needs, at which time the need (by definition) goes away. I guess it is safe to say that need has been satisfied. Does that make it a "met need"? Once a need has been met, it is no longer a need...

When we help companies focus on innovation for their consumers, we look for opportunity space by focusing on their likes, dislikes, processes, and attitudes. But how do we distinguish between "unmet needs" and regular needs?

Literally speaking, I'm thinking the phrase "unmet needs" is like a double negative used in a sentence (E.g. "I won't not be there tomorrow" means "I will be there"). If that is the case, then does unmet need literally mean there is no need?

I'm going to do two things moving forward. First, I'm going to start focusing only on consumer needs (not unmet needs). Second, I'm going to try to think of more interesting topics in the shower...

The world's best garden tools

I love my job. I get to work with people all over the country, and help them develop new product and service ideas based upon the unmet needs of consumers that we study. One of the most rewarding parts of my job however, is when we see ideas that we've helped to generate, come to life.

This last weekend I decided to put a garden in my back yard. Since this would be my first garden since my youth, I decided to start "small", a mere 30' wide by 120' long. Okay, it didn't seem that big until I started to plant the thing. Having spent all day Saturday and Sunday afternoon in the thing, I have now planted about 1/3 of what I've bought to go into it. My hands are raw, my back is sore, and I'm somewhat sunburned... but as they say, it's a good kind of pain.

I decided to do this (in part) because of a project we did for Ames True Temper a year ago dealing with Gardening Enthusiasts. We spent hours watching people as they landscaped their yards and planted food for their families. We worked with Master Gardeners to discover the unmet needs that they had with their existing tools. Ultimately, we came up with a new line of tools, focused on these experts. The tools are now on the market, Ames sent me a set a few weeks ago, so... I had to start a garden.

It's one thing to watch other people use products, but its much cooler to use good products yourself. The garden rake they launched has a circular "steering wheel" handle that surrounds the shaft. It is a great feature for really pulling. As intuitive as this is, it makes me wonder why no one has done it before.

The material on these handles is a form of plastic, with a softer rubber molded in where your hands go. In spite of the hot days, these things felt good, with no slippage or unwanted twisting.

When we started this project with Ames, I was skeptical that anyone could really make a "better shovel" (or any other garden tool for that matter). After all, after the lever, it's probably the oldest tool known to man. But I'll be darned if we (collectively) didn't pull it off.

Hopefully I'll feel as good about these tools after I get the remaining 2/3 of the garden planted. If only they could do something about the aching joints and the sunburn...

The power of virginity

Remember your first time? You could barely wait for the day to arrive. Then you went to pick it up and bring it home. You almost drooled as you carefully took off the layers to get your hands on it...

Okay, so maybe you weren't quite that passionate to use your new product, but there was still an anticipation. It doesn't matter if it's a new cell phone or a washing machine. You fully expected that your life would improve because of your wise purchase.

And then you used it. Maybe you read the instruction manual, but probably you didn't. You thought some features were a bit confusing, but you eventually figured them out. You may have assembled it wrong initially, but even that got corrected.

Ah, to be a "first-timer" again. The first time we encounter anything we do so with an inquisitive mind and an assessing disposition. We immediately evaluate the product or experience for what it truly is. If asked (or observed) at that moment we could provide all types of valuable feedback to the provider in terms of suggestions or improvements. But how quickly that fades. Before long, we forget those ideas and compensate for the shortcomings in the design. Ask us three months later, and our thoughts are far less fertile.

How are you capturing your consumers' first experience with your product or service? It really is a great thing to ask someone while their "first time" is still fresh in their mind.

Switch sides of the bed

I despise routine. From experience I realize that I'm probably in the minority on this issue but it is true. Routine is the antithesis of creativity & innovation. As soon as we fall into a routine, we quit thinking about the processes that we live by and slip into auto-pilot. Once there, we no longer seek out ideas that could improve our lives.

A very simple example of this is to switch sides of the bed with your partner (this is far less impactful if you sleep alone). This simple act will generate an amazing array of new thoughts and experiences. The way that you turn and lay will be different. You will interact with your partner in a new and different way. And believe it or not, this simple act will cause your brain to process the world around you differently for a short while.

It's not always comfortable to make a change such as this. You might in fact find it hard to fall asleep the first night in this "foreign" position. But your awareness of the situation will soar. And that gets your mind working in a very positive way. You may find yourself being able to work through problems that have perplexed you all day (either while lying awake or in your dream state). In the morning, your routine will be varied causing you to start "thinking" much sooner than is typical.

Awareness is huge step toward change and creativity. Change sides of the bed. Get out of auto-pilot. See what the next day brings...

Newton's First Law of... Human Behavior?

You ever notice that even when companies express a strong desire for change, their actual efforts cause them to remain where they are? A friend of mine is in the consumer durables segment, but was talking to an executive at a healthcare company. The executive recognized a talent in skill set in my friend that his company was lacking. So he encouraged him to send in a resume.

My friend did just that, but somehow the resume was intercepted by Human Resources, who proceeded to tell him that they are not interested because he has... you guessed it; no experience in the health care industry.

How many products and services have been launched only to fail because of the same basic reason. Research clearly shows there's a need, people express an interest, even a willingness to buy. However, the offering fails in the marketplace because people have no experience with it.

Newton's first law of motion states that "an item that is at rest will remain at rest until an outside force acts upon it". It seems that this profound law is just as relative to human behavior as it is to items in the physical world. Perhaps it could be restated as "People will continue on with their current behaviors until an outside force drives them to change". That makes it hard to launch something new (or enter a new career field) in a successful manner.

Researching a new product or service (or casually talking to an executive friend at an outside company) poses people with a theoretical outside force, so the answer they give is a theoretical response at best. The same people that were positive at the "theory", are often reluctant to adapt when faced with the reality of the offering.

Something to keep in mind the next time your chasing a "sure fire" lead or opportunity. What looks certain in theory, must overcome the concept of inertia in reality, and that takes force. Hmmm....

A blog with no photo...

Okay I'm frustrated. All of my photos disappeared from my Blog. I've been using Blogo as an editor, then uploading to blogspot for posting. It worked seamlessly for several days, but now there's chaos. Google's massive integration of multiple services seems to be the culprit. Web forums are quickly filling with people with similar frustrations, all thinking it's their unique issue. Looks like the problem may reside with Picassa, Google's photo sharing site. Now, I don't really want or need to use Picassa, I'd be happy just uploading photos from my phone or hard drive, but is that an option??? NO! All uploaded photos automatically go into a library at Picassa where they are accessed by the blog. Hmmm. I'm sure there's some advantage there that I'm not seeing. But in the meantime, my frustration is mounting.

Was Google's intent to satisfy unmet needs of blog writers? Or was it merely an avenue to get us hooked on more of their proprietary software applications?

There's no question that Google has become a part of our everyday life... But is this an instance where they've gone too far? Just try to get technical support on something like this that crosses so many applications... I wonder how the Amish blog?

You Gotta Love it

Seeking Conformity - Part II

I'm still on vacation, and played another round of golf yesterday. I used my brother's clubs since I am staying at his house. He has much nicer (and much newer) clubs than I have, so any inadequacy that I had cannot be blamed on that. The course was in fantastic shape, which removed another excuse. Being a private course on a weekday, there were very few groups playing, so I can't even say that we were being rushed or pressured. And yet, I still played pathetically.

It struck me afterwards that there is another type of conformity that we all aspire too and that is mastery. It doesn't matter what we're doing, be it work or play, we all have an image of what "should be" and we measure shortcomings against it. There's nothing wrong with that, in fact it's what drives us toward continuous improvement.

But that led me to think about the way we research common products and develop ideas for new ones. Had an observational researcher followed me around the course yesterday, he would have made notes about my unmet needs. E.g. "While Jerry has a lot of power off the tee, he struggles with consistent direction", or "Jerry is unable to read some of the intricacies of the sloping greens".

The researcher might even take these discovered unmet needs back into an ideation session to generate solutions. "Let's make a club that you can't slice", or "Let's put a chip into the putter that can automatically read the curvature of the green to allow for more accurate putting".

Let's imagine further that they could actually produce such products. Would that be a good idea? If suddenly I could record scores like Tiger Woods, that might be exciting for a fleeting moment, but what lasting value would that have? In fact, if such clubs were allowed by the PGA, it would realistically kill the sport. Conforming to Tiger's ability without working for it takes away any pleasure that it would bring. I would much rather learn to get better with the equipment I have (or that I'm borrowing) than to have some that corrects everything for me. I only appreciate my great shots when they stand in stark contrast to my bad ones.

What about the products you make or use? Are all unmet needs equal? How do you distinguish between those that will enhance the life of a person, and those that will ultimately disappoint? Should our goal be to make everyone equally proficient with everything they use?

It's got me thinking...

Seeking Conformity?

I'm on vacation this week. Went out golfing the other day playing on a new course. Now, I haven't really played since last year, so I'm pretty rusty (not that I never get really... "un-rusty, at least at golf). We got paired up with another twosome for our round. They seemed nice enough; members of the club where we were playing.

The first few holes went okay. The other twosome was playing much better than we were which was not surprising. By the time we got to the 6th hole, my game fell apart. I suddenly looked like I had never swung a club before. That is not all that surprising for my game. But what I noticed really surprised me. On the same hole, the other three players all crumbled as well. As a group we put 6 balls in the lake, topped numerous shots and almost hit each other twice. One guy from the other group quit about half-way to the hole saying he'd never played so badly...

It appeared that my collapse spread broadly and quickly. For that hole, we found a group "norm", that unfortunately was the lowest common denominator (my ability).

People tend to conform with the group that they are in. Play golf with people much better than yourself, and you're likely to play beyond your abilities. Play with people much worse and you're likely to fall apart.

I can't help but think that this same trend is true when studying consumers. Talk to them one at a time in their natural environment, and you're likely to see the real person. Bring them into a group and talk to them all at once, and you will inevitably see the subconscious conforming of people into the group's norm. Which is it that you want to learn, an individual's needs and opportunities, or the lowest common denominator of the group?

An April Fools Fable

Once upon a time, in a land not too far from your own was a Company. This company made Flurbigs, a product that was used by many people in the land. They had made Flurbigs for years and years, and everyone respected them for their high quality and consistency of performance.

One day, another company came into town. They began to make Sturbigs, which to the people of the land looked a lot like Flurbligs except that they were cheaper and came in more colors. It wasn't long before most people were switching from their Flurbig to a Sturbig.

The owner of the Flurbig Company pulled together his wisest people and challenged them to come up with a new product that would make them reign supreme once again. He even gave them a head start by providing them with some ideas that he already had for the new product. The newly formed team sat in a room and brainstormed ways they could take his ideas and combine them with their own to make a better Flurbig. They worked on the premise that there are no bad ideas, so the sky was the limit for this team. After days of collaboration they were ready to bring forth their new & improved Flurbig. It had not one, but two more speeds than the Sturbig. It weighed 5% less and came in three new colors! And, most importantly, they pulled out all of their creative stops and actually added a cupholder!!!

The owner knew that they couldn't go to market without first testing the market acceptance. So they gathered their friends and family and invited them into the office where they could get some impartial feedback. Before long they had concrete answers to such questions as, "Wouldn't you rather have a product with 2 more speeds?" and "If you could choose between a product with a cupholder and without, which would you choose?".

Much to their surprise, not only did they get clear direction for this product, but the people they brought in had numerous ideas for bold new products in the future. Based on their findings, they were ready to not only launch the new Flurbig II, but now had a pipeline full of great ideas to grow the company moving forward.

Having spent all of their product launch money on research, they were forced to quietly place the product on retail shelves. They couldn't really advertise, or do any type of promotional work. They did however make sure that every new feature was called out in bold print on each side of the package. Because of their breakthrough new design, they decided to charge 20% more than the Sturbig did.

When the people of the land saw the Flurbig II at the store, they immediately saw the superiority of this bold new product and bought up everyone that was available.

The Sturbig company knew they had been outdone, and realized they had no further reason to exist in this land. They quietly packed up their plant, and moved to a far away place, never to be seen again.

Everyone in the land celebrated. There was dancing in the streets. The future was brighter than ever before. And the Company and the people of the land lived happily ever after.

So, you tell me... silly fable? or scary reality of many companies' strategies?

What are you really selling?

We spend a lot of time with consumers in their home watching them interact with products and asking them questions about their likes & dislikes. One thing that never fails to amaze me is the disconnect between what people are buying and what companies are selling.

In a nutshell, companies sell products. People buy remedies for their pain, or solutions to their unmet needs (choose your analogy). A couple of years ago, we did a project on patio heaters. Looking at the offerings in the marketplace, you could see where each manufacturer had changed the form of the product slightly to differentiate themselves at retail. Little shelves, different shaped posts, multiple domes on the top. I'm sure the respective manufacturers thought they were setting themselves apart with their "unique" styling. And from their perspective, they all put out heat, which is what they were designed to do.

We spent many cool evenings with consumers, on their patios and decks so that we could better understand how to improve upon this offering. The first thing we learned was that the products on the market were "all the same" from a home-owner's perspective. The efforts toward differentiation was lost on them. More importantly, we learned that patio heaters were not strictly about outdoor warmth (as had always been assumed). It was really about enabling consumers to entertain outdoors. We heard comments about how much easier it is to hose off the deck after a party than to clean red wine off the light colored carpeting indoors. Outdoor parties were seen as less formal, more friendly and generally more fun. Patio heaters help people to move their parties outdoors.

While on the surface, that might not seem breakthrough, that is a finding that should reinvent the category. Once you are in the outdoor party business, you start to incorporate new attributes into your product. Other unmet needs like lack of surface space for plates and drinks, need for additional ambient lighting, and fire as a focal point all start to come into play. Our client introduced a couple of award winning heaters that satisfied some of these other needs as well. One walk through a big-box retailer this spring, and you'll see that this notion has caught on across many providers. Low round tables with gas logs burning in the center, natural gas heater/lamp combinations, other forms of heater tables can all be found. It seems everybody is trying to help people entertain outdoors these days... the market may be shifting. So, what is it that you are really selling? Are you sure that's what people are actually buying? If your market is shifting to a new direction, are you ready to still support it? Most importantly, how do you know?

A marketing dilemma

I’ve been reading Norm Brodsky’s book “The Knack”. I’m only a few chapters into it, but I now feel faced with an interesting dilemma. Norm says he never recommends that anyone launch a highly unique business, because few can afford to educate the market about what the service provides. Leave the breakthrough stuff to the Microsofts and the Apples of the world. The rest of us should seek out markets where there are already a number of competitors, then figure out how to separate ourselves from the pack.

For years, I’ve been trying to separate my business from other main-stream businesses by providing a unique position and offering. Those that have used us have been very pleased, which is evident by our 90% return rate of customers (doing follow on or whole-new projects). However, it has been traditionally tough for us to land new clients. Almost all of our new clients have come to us through recommendations from our existing relationships. Now I’m coming to realize that trying to be so unique may have actually hampered our growth.

This is a tough pill to swallow for a guy (and a firm) that is dedicated to finding the unmet needs of our clients and offer a service that directly satisfies them. It’s great for those “in the know”, but obviously a tough message to communicate to new prospects.

It’s human nature to categorize things into buckets that we currently understand. When we come across a wholly new offering, we immediately attempt to equate it with something we’re familiar with. It doesn’t matter if it’s a perfect fit, it’s just important that we can classify information in such a way as to not be constantly overwhelmed. Once a service is categorized, then we can mentally go through the process of differentiating one service from another (in terms of metrics that we comfortably use; price, speed, quality, etc.).

There’s nothing wrong with being unique. In fact it’s a critical factor in a competitive world. But, there’s obviously a big difference between having a unique offering, and talking about it in a strictly unique way. Introduce people to your product or service in ways that are familiar to them. Once there, help them to see how you have a unique solution to satisfy their needs.

An Intriguing Relationship

We had an interesting conversation the other day at lunch about products we own. Most of our possessions primarily serve a functional or utilitarian role in our lives. Granted, we may have opted for a deluxe model, with extra bells and whistles, but once we’ve become accustomed to having it around, it becomes an everyday part of our lives.

There are a few things we own that we feel passionately about. You could say that we even have a “relationship” with these products. When thinking about my own life, only two current products come to my mind; my iphone and my Mini Cooper. When I shared that with my lunch companions, they were quite surprised… “What about the BMW you owned before?” they asked. I stated that while it was a great car, I had no strong feelings toward it one way or the other.

So that got my mind churning. Why is it that I have such strong feelings toward my current phone and my current car? What sets these apart from other such products that I have owned in the past? Eventually, it came to me. I had the unique opportunity to customize both of these products to perfectly satisfy my tastes and needs.

Unlike previous purchases, I specified my Mini from the ground up. Color, style and location of stripes, sun roof, interior trim & colors, features, sound system, handling controls, etc. The web site told me that there were over a million combinations, so my car would be unique. That sounded cool, but didn’t hit home until I got it and started driving the thing. I see Minis on the road everyday, but I’ve never seen one quite like mine. I loved my BMW when I got it too. But within a week of owning it, it seemed that every third car on the road was a silver X5 just like mine. I felt like I was driving an (expensive) commodity. Today I’m driving a less costly car, but one that feels like a true extension of me.

The iphone generates similar feelings. Granted, it seems like everyone has one these days, but as soon as you turn it on, you notice the differences. I have downloaded apps that are perfect for me. It has become my source of communication, navigation, entertainment and information.

Watch two iphone users in the same room, and they’ll be comparing the apps that they each have. Again, no two are the same.

This all begs the question. Is it important for your customers to have a “relationship” with your product? Is it even possible? All I know is that in my case these products have transformed from function to lifestyle. All because I got to “make them my own”. That’s got to be worth something.