What Is Meant By Customer Amnesia? And How Can You Avoid It In Your Business?

Learning Centre > What Is Meant By Customer Amnesia? And How Can You Avoid It In Your Business?

Contents

Customer amnesia is very common in companies today. In fact, between 70-90% of new products fail every year. Why is this?

Simple answer: they've forgotten how to have routine development conversations with their customers.

Companies who suffer from customer amnesia assume that they know what customers need. The finished product (based on those assumptions) is then shipped as soon as possible.

Companies often rely on technology, but the real success comes from a deep understanding of customer needs and values.

Two critical steps that can help companies to protect against new product failures are:

  1. Find out what problems they can solve for the customer before designing the product.
  2. Get early feedback on product concepts from customers by showing them initial prototypes.

Customer Centred New Product Development focuses on:

The most successful companies are generally those that:

Feasibility studies are critical for all new product ideas. In fact, they are so critical that we offer a preliminary feasibility study free of charge on any NPD project.  This will highlight if additional or a tweaked market research strategy is recommended.

Customer amnesia is very common in companies today. In fact, between 70-90% of new products fail every year. Why is this?

Simple answer: they've forgotten how to have routine development conversations with their customers.

Companies who suffer from customer amnesia assume that they know what customers need. The finished product (based on those assumptions) is then shipped as soon as possible.

Companies often rely on technology, but the real success comes from a deep understanding of customer needs and values.

Two critical steps that can help companies to protect against new product failures are:

  1. Find out what problems they can solve for the customer before designing the product.
  2. Get early feedback on product concepts from customers by showing them initial prototypes.

Customer Centred New Product Development focuses on:

  • Finding new ways to solve customer problems.
  • Create more customer-satisfying experience
  • Finding out what customers’ problems were before designing the product or solution

The most successful companies are generally those that:

  • Differentiate themselves from others
  • Solve major customer problems
  • Offer a compelling customer value proposition
  • Engage customers and/or end-users directly

Feasibility studies are critical for all new product ideas. In fact, they are so critical that we offer a preliminary feasibility study free of charge on any NPD project.  This will highlight if additional or a tweaked market research strategy is recommended.

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Farm+Stable is a client of Innovolo, a product development as a service provider offering R&D teams globally extra capacity, capability, and momentum in their product development and obsolescence management projects. As a company that specializes in the development and engineering of products for the agriculture and construction industries, Farm+Stable has benefited from Innovolo's expertise in helping to bring new products to market quickly and efficiently. In particular, Farm+Stable has been able to rely on Innovolo's team of experienced engineers to help with the design and development of a new line of products that are designed to be more durable and longer-lasting than previous models. With Innovolo's help, Farm+Stable has been able to bring these new products to market in a timely manner, and they have been well-received by customers. Thanks to Innovolo's innovative product development solutions, Farm+Stable has been able to stay ahead of the competition and continue to grow their business.
Innovolo is a product development as a service provider. It offers R&D teams globally extra capacity, capability, and momentum in their product development and obsolescence management projects. Its services are used by clients in a variety of industries, including automotive, aerospace, consumer electronics, and medical devices. One of its clients is Kawneer, a leading manufacturer of aluminum products for the architectural and construction industries. Kawneer has been using Innovolo's services to help develop new products and to manage the obsolescence of its existing products. Thanks to Innovolo, Kawneer has been able to speed up its product development cycle and to reduce its costs. As a result, Kawneer has been able to bring new products to market faster and to better meet the needs of its customers.

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