24H of Innovation - 1/2 Time Pep Talk for 2009
2009 has been a very interesting year, to say the least. However I firmly believe we are on the verge of something great as it relates to Innovation and how business is done. I believe that although there are many technical innovations that will take place in 2009, my excitement is for the innovation and movement that is taking place regarding customers and how we interact with them.
I believe that one of the fundamental issues many companies have historically had is that customer acquisition and retention was viewed as “steps in the process”. Often the interactions with prospects and customers only started to come into play once a product or service had been developed and delivered. Once initial sales of the product or service were delivered, then the only interactions with the customers were for technical support cases or in rare cases a company would choose a “select few” to participate in formal events like customer advisory boards, etc.
I have seen the world change in 2009 as it relates to this, and I see the second half changing more as people begin to truly understand the importance of involving customers and potential customers into all aspects of their business. By taking a collaborative approach to working with customers it can have a positive impact on all parts of your business:
- Concept Validation: If you have an idea for a new product or service. Get out and talk to your target market. There is no greater risk then spending months or years developing a solution that people do not need, and not willing to pay for. Here is a great video from Eric Ries at Lessons Learned. Eric is a supporter and promoter for the Lean Startup methodology.
- Development: Look up some information on Steve Blank who is not only a successful entrepreneur but also taught the Entrepreneurship courses at UC Berkley. He wrote a book The Four Steps to Epiphany which is a must read for anyone looking to start a technology company. He talks about the importance of customer development in parallel with product or service development.
- Marketing: How can you repeat something that you do not understand. The best way to replicate your success is to get out and talk with customers to find out why they bought from you in the first place. Take this information and repeat it to put more opportunities into your sales funnel.
- Sales: The world of sales has changed. No longer do companies and people rely upon the salesperson to be their main source of information. Google, Yahoo, and the internet as a whole mean that customers do their homework and make many of their decisions well before even making contact with you. So find ways to engage with customers early and to build the relationships with them.
- Post-Sales: Stay close to your customers. If your strategy is to only contact them when you have a new product/service or when it is time for them to upgrade....then you may find your sales falling. Customers have limited budgets and they are going to spend it on companies that they know and trust. If you do not have that relationship and trust with them....you have missed a huge opportunity.
So my message to you as you read this....get out and talk to customers. Do it often...do it early. Take the time to truly understand their world and what they face as challenges on a daily basis. Develop solutions that solve problems and satisfy needs....not just for the sake of innovation. How can we not succeed when companies and individuals are focused on solving true customer issues and making the lives of their customers better?