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:
- Find out what problems they can solve for the customer before designing the product.
- 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.