Big changes are constantly making the headlines, from the new ways in which Amazon is delivering products to startups selling systems that pull drinkable water literally out of thin air. With these major innovations in the forefront, big changes can seemingly equal big revenue. So then being perceived as innovative by customers – and executing on that perception – is frequently a priority for companies looking to grow.
However, large-scale change can mean large-scale risk. Having a team develop a game-changing new product or service, test to determine the reception in the market, implement the new product or service, communicate the value to customers, and execute on the promises take time and resource.
Customers aren’t necessarily looking for you to “go big or go home” either. If you look at Apple, one of the paragons of innovation, they have only produced one new product since 2011 – the Apple Watch. Critics think that this innovative brand is no longer holding true to its original value proposition and show that iPhone sales have declined. In spite of this, Apple recently saw record-breaking profits.
How?
Their culture has shifted from risky, large-scale innovation to subtle upgrades. If you look at their iPhone line, they are releasing new features designed to improve user experience with each new model. For example, the latest iteration got rid of the “home” button and includes new facial recognition software. These relatively small feature upgrades have made the iPhone incrementally more valuable to Apple’s core market. This focused approach to improve on what their target market needs has allowed them to retain their innovative image, increase prices, and grow their profits.
This strategy doesn’t just apply to Apple. YourEncore, a community of experts that unlock business potential through innovation, shows that for any company, smaller investments can lead to more steady and profitable growth. However, it can be difficult to determine which direction to take at first. To help you prioritize your small-change strategy, think about collecting feedback from your end users. Here are a few questions to help guide you:
What are your customers’ pain points? Work with customer service to identify themes of frequently addressed issues and prioritize based on frequency. Problem experience, especially unresolved, is strongly correlated with relationship vulnerability. Addressing these problems (or at least parts of them) as part of your innovation process will go a long way toward soothing at-risk customers and migrating them to a more stable relationship with you.
What do your strongest customers value? Is it consistency, speed, quality, service, or something else? Loyal customers that don’t give you the majority of their spend are missed opportunities, and almost every business has a few hiding in their databases. Understand the reasons these customers don’t currently give you more and focus on upgrading your business in these areas. For Amazon, they’re working on new ways to get products to customers faster; for Apple, it’s accessories like wireless headphones and a smartwatch that can stand in for your iPhone if you forget it. Innovating to improve on what your core market wants can increase the value of your product or service to them, as well as to prospects that fit with your model.
What are the gaps customers are currently seeing in the market? Critical for innovations regardless of size, what are the problems your customers are trying to solve but can’t? Ask customers about what is missing currently, but also where the market is going in the next 3-5 years. There might be a few avenues worth pursuing from these ideas to capture more market share in the short term, and a look ahead in the future can help you position your organization more proactively for growth.
These questions are a great way to focus on small updates that can improve both your innovative image and your performance. While they can certainly lead to much bigger design changes down the road, starting small can help you get on the right path more quickly. As you begin to implement new designs, take a look at our blog on communicating your value effectively to customers.