The concept of product innovation has become so universal that sometimes it loses its meaning and why it matters. However, it remains a critical part of every business success – the only way to ensure you get and maintain a strong position in your market niche. Product innovation can only be successful if the application involves all the fundamental business concepts like distribution channels, marketing, and new products and services. Failure to adapt to those elements eventually leads to the business enterprise trailing.
The connection between product innovation and market research
Product innovation can be business-oriented or customer-oriented. That means the innovation outcome should positively impact the entire enterprise, from sales and marketing, executive personnel, to customer service. Incorporating innovative approaches also helps you stay relevant in the market and keeps you from fizzling out completely. However, such results are not usually guaranteed, especially if you do the innovation for the wrong reasons.
Despite the promises of success, putting all hope on product innovation can be alarming – mainly if your products or services are performing well currently. In such cases, it may be better to make a few changes without adjusting many features. That approach also comes with potential setbacks because customers expect regular feature adjustments in their products based on frequent breakthroughs in the technological sector. The best solution is to consider the reasons for including product innovation in the business plan. Some of the best reasons are:
Customer retention and acquisition: The innovation should help you retain your current customers and attract new ones. What you are offering should continue to meet their needs.
Business expansion: An innovation can only succeed if it allows subsequent creativity that eventually leads to the evolution of the business.
Top-tier talent acquisition: The best employees prefer to work for companies with opportunities for learning and growth, meaning they look for companies at the forefront of innovation.
Competitive advantage: The product innovation results should boost your revenue and nudge your business in the right direction, which is to be an industry leader.
Importance of product innovation
Consumers continue to get a variety of choices that meet their demands, thanks to the availability of numerous digital platforms that constantly change their expectations. The need for a brand or product personalization is dire, now more than ever. Marketing and advertisement techniques also need to fit individual customer preferences. The market research gives you a deeper understanding of how to utilize product innovation to respond purposely to the pressures of the ever-changing demands rather than to react without certainty.
Getting product innovation right
Two fundamental factors determine the success or failure of product innovation during market research.
Customer-centric approach – Making the needs, preferences, and purchasing habits the focal point of product innovation is critical, but sometimes it does not guarantee success. You require an in-depth insight that unleashes the underlying traits and holistically portrays the customers.
Entrepreneurial mentality – Although product innovation is a continuous process, new ideas have risks and uncertainties. You can counter that challenge by collecting ideas according to customer studies instead of guesswork, testing concepts and validating them to ascertain performance, evaluating the marketing using consumer segmentation, refining the ideas, and creating a prototype before the final product.
If you have any questions regarding product innovation or market research, our team at Product Insights would be happy to help. Contact us today to get started!