This is the third of several ‘Innovation Perspectives‘ articles we will publish this week from multiple authors to get different perspectives on ‘What do you consider the most important single development in innovation methodology?’. Here is the next perspective in the series:
by Bob Donnelly
Historically, most innovations have come from corporate research labs and entrepreneurs coming up with faster, better or cheaper solutions to consumer’s constantly changing requirements.
However, today the dynamics of innovation have shifted dramatically from these traditional sources of innovation to what is the most important development in innovation methodology ever – the customer. The internet has enabled customers to now dictate to manufacturers what they need and want, and through their social networks share their experiences with others like them in ways that were never before available. The web and e mail have empowered customers with greater latitude over how they interact and on what terms the transaction takes place.
This customer sharing communications platform is expanding with mobile networks and mobile use increasing rapidly. The research firm, International Data, projects that by 2013 1.2 billion people globally will be part of this market of mobile device users.
Savvy marketers are realizing that they have to go to where the customers are and engage them on their own terms. The real value in this sharing of internet shopping experiences by customers is that this wealth of information and innovative suggestions from customers can improve and enhance the total experience on both sides of the transaction. Today’s online customers have an infinite number of choices and helpful user reviews that not only rate the products, but also the ease of the experience.
This abundance of real time customer feedback if dealt with properly can greatly help marketers modify their products and services. While not what is perceived as the typical kind of innovations most managers are familiar with and searching for, this invaluable one-to-one input direct from customers is the most important development in innovation methodology with long term far reaching implications.
Some retailers, like Target, are already taking proactive steps to combine some of this emerging input with their online marketing plans. They are introducing a new fully customizable version of their weekly ads that appear on Target.com, which draws 1.2 million visitors weekly. It also appears in Sunday newspapers where it is also seen by 100 million consumers. This new digital version let’s customers create customized views, as well as establish deal alerts for when their favorite products are on sale.
This new approach is targeted to the currently smaller number of digitally savvy shoppers who according to Target, tend to spend more than their other bricks and mortar customers. This gives the digitally savvy shopper the ability to decide on what they want to know about products that are relevant to them, and allows them to get this information online or on their mobile phones.
Steve Eastman, CEO of Target, says “we’re taking a vehicle that’s been static for years and bringing new innovation to it.” For companies, like Target, who can develop easy to use content-rich sites in real time and communicate across channels will be the winners by using innovation to grow the value of the rapidly growing number of digitally savvy customers.
Obviously, this embryonic development in innovation methodology has far reaching and monumental potential to be the single most important development in innovation for the future. The easier it is for customers to access your product information 24/7 from anywhere will allow you to own a share of their minds, e-wallets or pocketbooks.
To keep up with customers rapidly evolving use of mobile technology, innovative CEOs must be able to serve up their product offerings in a format that is device and customer friendly.
You can check out all of the ‘Innovation Perspectives‘ articles from the different contributing authors on ‘What do you consider the most important single development in innovation methodology?’ by clicking the link in this sentence.
Bob Donnelly is the Editor of the online Entrepreneurial CEO column for Chief Executive magazine. His column is broadcast monthly to thousands of CEOs across the country and read by many more globally.
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