When innovating, customer expectations must be kept in mind. An innovation must meet a particular need and be recognized as such.
Focus on customers is a decisive factor for the success of an innovation. The following points are key:
- Added utility for the customer. When there is no significant difference between your innovation and the competition’s product, you run the risk of being eliminated by the competition.
- Consideration of different categories of demand. Experience shows that customers are prepared to pay a higher price for an innovation that meets their requirements. It is therefore important to develop more than one version with different prices during development of the product or service to reach a larger number of potential customers.
- Does the innovation concept win over the majority? An essential obstacle facing a company on a daily basis is acceptance of innovations by existing customers, who often have expectations, or special requirements of the supplier. The fact is that developing “exotic” products costs more. However, as a small group of customers only guarantees limited sales, these developments are usually not very profitable. This is why subsequent developments must always be subject to market acceptance.
Source: Fraunhofer Institut für Systemtechnik und Innovationsforschung.