Five Keys to Personalizing the Customer Experience

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Five Keys to Personalizing the Customer Experience

GUEST POST from Shep Hyken

Earlier this year, we surveyed more than 1,000 consumers in the U.S. for our 2024 State of Customer Service and Customer Experience (CX) Study. We asked about the importance of a personalized experience. We found that 81% of customers prefer companies that offer a personalized experience, and 70% say a personalized experience in which the employee knows who they are and their history with the company (past purchases, buying patterns, support calls and more) is important. They also want the experience to go beyond people and include the platforms where they prefer to do business.

For a recent episode of Amazing Business Radio, I talked with Elizabeth Tobey, head of Marketing, Digital & AI of NICE, which helps companies apply AI to manage customer experience. The focus of the discussion was personalization. Here are some of the highlights from the interview:

1. Channel of Choice: This is where the modern-day concept of personalization begins. Tobey said, “In a world where people carry computers in their pockets (also known as mobile phones), it’s important to meet your customers when and where they want to be met.” Customers used to have two main choices when communicating with a brand. They could either walk into a store or call on the phone. Today, there are multiple channels and platforms. They can still visit in person or call, but they can also go to a website with self-service options, visit a social channel like Facebook, conduct business using an app, communicate with a brand’s chatbot and more. Customers want convenience, and part of that is being able to connect with a brand the way they want to connect. Some companies and brands do that better than others. The ones that get it right have educated customers on what they should expect, in effect raising the bar for all others who haven’t yet recognized the importance of communication.

2. Communicate on the Customer’s Terms: Tobey shared a frustrating personal experience that illustrated how some customers like to communicate but a brand falls short. Tobey was getting home late from an event. She contacted a company through its support channel on its website and was communicating with a customer support agent via chat. It was late, and she said, “I have to go to sleep,” expecting she could continue the chat the next morning with another agent. But, when she went to resume the conversation, she was forced to restart the process. She logged back into the website and repeated the authentication process, which was expected, but what she didn’t expect was having to start over with a new agent, repeating her conversation from the beginning as if she had never called before. Tobey made a case for technology that allows for asynchronous conversations on the customer’s timeline, eliminating the need for “over-authentication” and forcing the customer to start over, wasting time and creating an experience marred with friction.

3. Eliminate Friction: How could an interview with an executive at a technology company like NICE not bring up the topic of AI? In the story Tobey told about having to start over with a new agent, going through the authentication process again and repeating her issue, there is a clear message, which is to eliminate unnecessary steps. I shared an experience about visiting a doctor’s office where I had to fill out numerous forms with repeat information: name, address, date of birth, etc. Why should any patient have to fill in the same information more than once? The answer to the question, according to Tobey, is AI. She says, “Take all data that’s coming in from a customer journey and feed it into our AI so that the engine is continuously learning, growing and getting smarter. That means for every customer interaction, the automation and self-service can evolve.” In other words, once AI has the customer’s information, it should be used appropriately to eliminate needless steps (also known as friction) to give the customer the easiest and most convenient experience.

4. It’s Not Just About the Customer: In addition to AI supporting the customer’s self-service and automated experience, any data that is picked up in the customer’s journey can be fed to customer support agents, supervisors and CX leaders, changing how they work and making them more agile with the ability to make decisions faster. Agents get information about the customer, enabling them to provide the personalized experience customers desire. Tobey says, “Agents get a co-pilot or collaborator who listens to every interaction, offers them the best information they need and gives them suggestions.” For supervisors and CX leaders, they get information that makes them more agile and helps them make decisions faster.

5. Knowledge Management: To wrap up our interview, Tobey said, “AI management is knowledge management. Your AI is only as good as your data and knowledge. If you put garbage in, you might get garbage out.” AI should constantly learn and communicate the best information and data, allowing customers, agents and CX leaders to access the right information quickly and create a better and more efficient experience for all.

This article originally appeared on Forbes.com

Image Credits: Unsplash

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Nine Actions for Building a Great Team

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Which Resonates with You?

Nine Actions for Building a Great Team

GUEST POST from Stefan Lindegaard

Building a strong team is a multifaceted journey, and there are several key actions that can contribute to the growth and success of a team.

Reflecting on the nine actions for building a great team, which ones do you find your team focuses on the most?

Would you say it is:

1. Cultivating a growth mindset?

2. Enhancing psychological safety?

3. Mapping and engaging stakeholders?

4. Mastering difficult conversations?

5. Improving feedback processes?

6. Addressing individual motivations?

7. Injecting fun into your work environment?

8. Developing networking and learning opportunities?

9. Identifying trust drivers and barriers?

Share your experiences and let’s inspire each other on actions that can shape the dynamics and achievements of your team!

Team Building Stefan Lindegaard

Image Credit: Pexels, Stefan Lindegaard

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Breaking Free From Stagnation

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Breaking Free From Stagnation

GUEST POST from Robyn Bolton

As a leader in your organization, you’re under tremendous stress. Not only do you need to deliver against a “growth strategy” that demands constant increases in revenue and profit, but you also need to cut costs and support employees who are more disengaged and burned out than ever before.  If it feels like you’re working harder and running faster than ever to maintain the status quo, then I have good and bad news for you.

Bad news: You’re right. 

The feeling of working harder or moving faster simply to stay in the same place is called the Red Queen effect or hypothesis.  The hypothesis asserts “that species must constantly adapt, evolve, and proliferate in order to survive while pitted against ever-evolving opposing species.”  Its name is inspired by the Red Queen in Lewis Carroll’s Through the Looking Glass, who explains to Alice, “here, you see, it takes all the running you can do, to keep in the same place.”

You probably feel the same need to adapt to survive “while pitted against ever-evolving opposing species” every time you see new technologies, read about another new management framework, or hear news from your competitors. You also understand that your organization needs to grow and often hear that it needs to do so at all costs, so you buckle down, work hard, and pull off quarterly miracles.

Good for you! You’re reward?  You get to do it all over again, and faster, this quarter.  And, to add insult to injury, all that growth you’re working harder and harder to achieve is a mirage.

75% of companies do not grow.

HBS professor Gary P. Pisano examined the growth rate of 10,897 publicly held US companies between 1976 and 2019.  When adjusted for inflation, the top quartile grew 11.8% yearly, but the other 75% showed little to negative growth. 

Being in that top quartile was no guarantee of success, as only 15% (3% of the total sample) were able to sustain a growth rate of 0.3%+ for 30 years. In fact, only SEVEN companies—Walmart, UPS, Southwest, Publix, Johnson & Johnson, Danaher, and Berkshire Hathaway—were top-quartile growth companies throughout the thirty years studied.

If you worked at one of those 7 companies, congrats!  Your hard work delivered real and repeatable growth.  If you worked at any of the other 10,890, I hope they offer great benefits?

We know why.

Every good academic knows you can’t just throw out some data without trying to find a causal link, and Professor Pisano is a good academic

“I have found that while the usual explanations for slow or minimal growth—market forces and technological changes such as disruptive innovation—play a role, many companies’ growth problems are self-inflicted. Specifically, firms approach growth in a highly reactive, opportunistic manner. When market demand is booming, they go on hiring binges, throw resources at developing new capacity, and build out organizational infrastructure without thinking through the implications… In the process of chasing growth, companies can easily destroy the things that made them successful in the first place, such as their capacity for innovation, their agility, their great customer service, or their unique cultures. When demand slows, pressures to maintain historical growth rates can lead to quick-fix solutions such as costly acquisitions or drastic cuts in R&D, other capabilities, and training. The damage caused by these moves only exacerbates the growth problems.”

(Bold text added by me)

Good news: You Can Do Something About It

In fact, as a leader in your organization, you’re among the few who have any prayer of pulling your organization out of the Red Queen’s race and putting it on track to real and sustainable growth. Achieving this incredible success requires you (and your colleagues) to decide three things:

  1. How fast to grow (target rate of growth)
  2. Where to find sources of new demand (direction of growth)
  3. How to assemble the resources required to grow (method of growth)

Together, these three decisions comprise your growth strategy and enable your organization to achieve the “delicate balance” between demand and supply required to sustain profitable growth.

Getting to these decisions isn’t easy, but neither is slaying the Jabberwocky.  So, as this brief rest stop in your race comes to an end, who do you choose to be – Alice, who works hard and deals with a bit of nonsense to progress, or the Red Queen, content to work harder to stay in the same place?

Image credit: Unsplash

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Only One Type of Innovation Will Win the Future

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Only One Type of Innovation Will Win the Future

GUEST POST from Greg Satell

Very few businesses last. While we like to think we live in a particularly disruptive era, this has always been true. Entrepreneurs start businesses because they see opportunity and build skills, practices and processes to leverage it. Yet as the world changes, these strengths often become vulnerabilities.

The problem is that the past is not always a good guide to the future. Business models, even the successful ones, are designed for inertia. They are great for leveraging past insights, but are often resistant to change. Success does not, in fact, always breed more success, sometimes it breeds failure.

That’s why every business needs to innovate. Yet innovation is not, as some would have us believe, just about moving fast and breaking things. It’s about solving the problems you need to create a better future. What most fail to grasp is that a key factor of success is how you source problems, build a pipeline and, ultimately, choose which ones you will work on.

1. Getting Better At What You Already Do

Every year, Apple comes up with a new iPhone. That’s not as exciting as it used to be, but it’s still key to the company maintaining its competitive edge. Every model is a bit faster, more secure and has new features that make it more capable. It’s still an iPhone, but better.

Some self-appointed ‘innovation gurus” often scoff at this type of innovation as “incremental” and favor new technologies that are more “radical” or “disruptive,” but the truth is that this is where you derive the most value from innovation — getting better at what you already do and selling to customers what you already know.

So the first line of defense against irrelevance is to identify ways to improve performance in current practices and processes. The challenge, of course, with this type of innovation is that your competitors will be working on the same problems you are and it takes no small amount of agility and iteration to stay ahead. Even then, any victory is short-lived.

Still, most technologies can be improved for a long time. Moore’s Law, for example, has been around for almost 50 years and is just ending now.

2. Applying What You’re Already Good At To A Different Context

Amazon started out selling books online. It then applied its approach to other categories, such as electronics and toys. That took enormous investments in technology, which it then used to create new businesses, such as Amazon Web Services (AWS), Kindle tablets and its Echo line of smart speakers.

In each case, the company took what it already did well and expanded to an adjacent set of markets or capabilities, often with great success. The Kindle helped the company dominate e-books and strengthened its core business. AWS is far more profitable than online retail and accounts for virtually all of Amazon’s operating income.

Still, adjacent opportunities are can be risky. Amazon, despite its huge successes, has had its share of flops too. Whenever you go into a new business you are, to a greater or lesser extent, charting a course into the unknown. So you need to proceed with some caution. When you launch a new business into an adjacency, you are basically launching a startup and most of those fail.

3. Finding A Completely New Problem To Solve

Besides getting better at what you already do and applying things you already know to a different market or capability, you can also look for a new problem to solve. Clearly, this the most uncertain type of opportunity, because no one knows what a good solution will look like.

To return to the Moore’s law example, everybody knows what a 20% performance improvement in computer chips looks like. Metrics for speed and power consumption have long been established, so there is little ambiguity around what would constitute success. Customers will instantly recognize the improvement as having a specific market value.

On the other hand, no one knows what the value of a quantum computer will be. It’s a fundamentally new kind of technology that will solve new types of problems. So customers will have to explore the technology and figure out how to use it to create better products and services.

Despite the uncertainty though, I found in the research that led to my book, Mapping Innovation, that this type of exploration is probably the closest thing to a sure bet that you’re going to find. Every single organization I studied that invested in exploration found that it paid off big, with extremely high returns even accounting for the inevitable wrong turns and blind alleys.

The 70-20-10 Rule

Go to any innovation conference and you will find no shortage of debates about what type of approach creates the most value, usually ending with no satisfying conclusion. The truth is that every organization needs to improve what they already do, search for opportunities in adjacencies and explore new problems. The key is how you manage resources.

One popular approach is the 70-20-10 rule, which prescribes investing 70% of your innovation resources in improving existing technologies, 20% in adjacent markets and capabilities and 10% in markets and capabilities that don’t exist yet. That’s more of a rule of thumb than a physical law and should be taken with a grain of salt, but it’s a good guide.

Practically speaking, however, I have found that the exploration piece is the most neglected. All too often, in our over-optimized business environment, any business opportunity that can’t be immediately quantified in considered a non-starter. So we fail to begin to explore new problems until their market value has been unlocked by someone else. By that point, we are already behind the curve.

Make no mistake. The next big thing always starts out looking like nothing at all. Things that change the world always arrive out of context for the simple reason that the world hasn’t changed yet. But if you do not explore, you will not discover. If you do not discover, you will not invent. And if you do not invent, you will be disrupted. It’s just a matter of time.

— Article courtesy of the Digital Tonto blog and previously appeared on Inc.com
— Image credits: Pixabay

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Are We Doing Social Innovation Wrong?

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Are We Doing Social Innovation Wrong?

GUEST POST from Geoffrey A. Moore

The Volume Operations business model kicks in when you have hundreds of thousands of users and goes up from there. 100,000, for those of us who are not math majors, is 10 to the power of 5. Uber-successful volume ops businesses operate at 10 to the power of 9 and up—millions of users or customers. But if you are a start-up, you are looking at 10 or maybe 100. How do you get from here to there?

The key thought to keep in mind is the old chestnut “what got you here won’t get you there.” That is, whatever operating model you have, keep in mind it can scale to two exponents but never to three. That means for every two exponents you have to change operating models, which likely means you have to change executive leadership in order to go forward.

To illustrate this idea, I’d like to focus on the non-profit sector and ask the question, what would it take to really solve for any widespread social problem? Homelessness was the first one that came to mind, but hunger is another obvious one, drug addiction a second, street crime a third. They are all seemingly intractable issues that, despite the best intentions of a whole raft of people, and regardless of how much funding is supplied, stubbornly resist any sustainable improvement.

The question I want to address is not what programs would work—because I actually think a whole lot of programs would work—but rather, how could we organize to deploy these programs successfully at scale.

Following our principle of what got you here won’t get you there, we need a ladder of operating models that can take us, exponent by exponent, from 10 to the power of 1 to, say, 10 to the power of 7. What might that look like?

Scaling Social Innovation

Consider this a straw man, a place to start, something to edit. It conveys a key lesson from the high-tech sector, namely that the fastest way to kill a disruptive innovation is to race to scale by skipping over one or more of these “exponential steps.” It just doesn’t work. There are too many emergent factors at each new level you must learn to cope with in order to succeed. The only reliable way to scale is to ratchet your way up this staircase, adapting your systems and operations as you go.

Unfortunately, that’s not what politicians do. They want to make a big impact right away. That means they start everything on one of the upper stairs. Driven by impatience, they ignore the dynamics of adoption and demand mass deployment from the get-go. They think the problem is simply one of getting enough funding. It’s not. It’s one of operational innovation. Scaling prematurely simply wastes the funding. And then when programs do flounder, as they inevitably will, they blame it on execution when in reality they simply did not do the hard, time-consuming work of building up their foundation step by step from below.

One of the implications of this framework is that social services should be incubated in the private sector where freedom from regulatory constraints supports agile innovation. But as they scale, the importance of regulatory oversight increases and more communal engagement is required. The goal should be to keep this oversight as local as possible as long as possible, doing as much as we can to empower the people delivering the service itself. Once that operating model solidifies, then, and only then, is there a proper foundation for scaling to state and federal programs.

Today, we do not lack the empathy to support social services. Nor do we lack the funding. But we are failing nonetheless. We can do better. We need to do better.

That’s what I think. What do you think?

Image Credit: Pexels

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50% Off of Charting Change This Weekend Only

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50% Off of Charting Change This Weekend Only

Wow! Exciting news!

My publisher is having a 24 hour flash sale that will allow you to get the hardcover or the digital version (eBook) of my latest best-selling book Charting Change for 50% off!

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– Phil McKinney, retired CTO for Hewlett-Packard and author of Beyond the Obvious
Daniel H Pink “There’s no denying it: Change is scary. But it’s also inevitable. In Charting Change, Braden Kelley gives you a toolkit and a blueprint for initiating and managing change in your organization, no matter what form it takes.”
– Daniel H. Pink, author of Drive and To Sell is Human
Marshall Goldsmith “Higher employee retention? Increased revenue? Process enhancements? Whatever your change goal, Charting Change is full of bright ideas and invaluable visual guides to walk you through change in any area where your organization needs it.”
– Marshall Goldsmith is the #1 New York Times bestselling author of Triggers, MOJO and What Got You Here Won’t Get You There

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Top 10 Human-Centered Change & Innovation Articles of July 2024

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Top 10 Human-Centered Change & Innovation Articles of July 2024Drum roll please…

At the beginning of each month, we will profile the ten articles from the previous month that generated the most traffic to Human-Centered Change & Innovation. Did your favorite make the cut?

But enough delay, here are July’s ten most popular innovation posts:

  1. Organizational Debt Syndrome Poses a Threat — by Stefan Lindegaard
  2. Do Nothing More Often — by Robyn Bolton
  3. Is Disruption About to Claim a New Victim? — by Robyn Bolton
  4. What Top Innovators Do Differently — by Greg Satell
  5. Four Hidden Secrets of Innovation — by Greg Gatell
  6. Rise of the Atomic Consultant — by Braden Kelley
  7. Do You Bring Your Whole Self to Work? — by Mike Shipulski
  8. Giving Your Team a Sense of Shared Purpose — by David Burkus
  9. Creating Effective Digital Teams — by Howard Tiersky
  10. Smarter Risk Taking — by Janet Sernack

BONUS – Here are five more strong articles published in June that continue to resonate with people:

If you’re not familiar with Human-Centered Change & Innovation, we publish 4-7 new articles every week built around innovation and transformation insights from our roster of contributing authors and ad hoc submissions from community members. Get the articles right in your Facebook, Twitter or Linkedin feeds too!

Have something to contribute?

Human-Centered Change & Innovation is open to contributions from any and all innovation and transformation professionals out there (practitioners, professors, researchers, consultants, authors, etc.) who have valuable human-centered change and innovation insights to share with everyone for the greater good. If you’d like to contribute, please contact me.

P.S. Here are our Top 40 Innovation Bloggers lists from the last four years:

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Important Words to Consider

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Important Words to Consider

GUEST POST from Mike Shipulski

What people think about you is none of your business.

If you’re afraid to be wrong, you shouldn’t be setting direction.

Think the better of people, as they’ll be better for it.

When you find yourself striving, pull the emergency brake and figure out how to start thriving.

If you want the credit, you don’t want to make a difference.

If you’re afraid to use your best judgment, find a mentor.

Family first, no exceptions.

When you hold a mirror to the organization, you demonstrate that you care.

If you want to grow people and you invest less than 30% of your time, you don’t want to grow them.

When someone gives you an arbitrary completion date, they don’t know what they’re doing.

When the Vice President wants to argue with the physics, let them.

When all else fails, use your best judgment.

If it’s not okay to tell the truth, work for someone else.

The best way to make money is not the best way to live.

When someone yells at you, that says everything about them and nothing about you.

Trust is a result. Think about that.

When you ask for the impossible, all the answers will be irrational.

No one can diminish you without your consent.

If you don’t have what you want, why not try to want what you have?

When you want to control things, you limit the growth of everyone else.

People can tell when you’re telling the truth, so tell them.

If you find yourself watching the clock, find yourself another place to work.

When someone does a great job, tell them.

If you have to choose between employment and enjoyment, choose the latter.

If you’re focused on cost reduction, you’re in a race to the bottom.

The best way to help people grow is to let them do it wrong (safely).

When you hold up a mirror to the organization, no one will believe what they see.

If you’re not growing your replacement, what are you doing?

If you’re not listening, you’re not learning.

When someone asks for help, help them.

If you think you know the right answer, you’re the problem.

When someone wants to try something new, help them.

Whatever the situation, tell the truth, and love everyone.

Image credit: Pexels

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Satisfied Customers Could Ruin Your Business

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Satisfied Customers Could Ruin Your Business

GUEST POST from Shep Hyken

What if I told you that satisfied customers could ruin your business? Most people think satisfied customers are happy and will come back. At least, it appears that way.

Many years ago, I used to begin my customer service keynote speeches with a question:

By a show of hands, how many of you believe it’s important to satisfy your customers?

As you might imagine, just about everyone raised their hand. Then, I shared the findings from a study by Vanderbilt University professors Anthony J. Zohorik and Roland T. Rust. They found that up to 40% of satisfied customers don’t come back – even though they are satisfied! And the reason is that they are just satisfied. The experience was average – not bad, but not great either.

In the competitive world we are in, this makes sense. So many companies and brands are trying to win customers over by delivering a better service experience. It makes sense that “average” or “satisfactory” doesn’t cut it.

In my recent customer service and CX research (sponsored by RingCentral), I included a question that would give us an updated number for this concept. We asked:

If you were to rate a customer experience on a scale of 1 to 5 – where 1 is bad, 2 is fair, 3 is average or satisfactory, 4 is good, and 5 is excellent – how likely are you to return to this company or brand if you rated them a 3?

There were five possible answers: Never, Not Likely, Not Sure, Likely, and Very Likely.

The survey results are worth paying close attention to. In 2024, almost one in four American consumers (23%) will not likely or never return if the experience is just satisfactory.

If you search synonyms for satisfactory, you’ll find words like acceptable, adequate, bearable, and more. By today’s standards, satisfactory is mediocre. And most customers won’t put up with a mediocre experience.

I’ve said this many times before. Our customers are smarter than ever when it comes to customer service and experience. They have learned from the best. Companies like Amazon, Chick-fil-A, Apple, and other customer experience luminaries promise great service, deliver on their promises, and set the bar higher for others.

You don’t have to be an Amazon or an Apple to deliver amazing service. But you do have to meet expectations. If you do that consistently, customers will positively describe their experience with you. They will say your people are always helpful, friendly and knowledgeable. None of that is over the top, but when you put the word always in front of those words, you’re operating at a level beyond average or satisfactory. That’s a big part of what gets your customers to say, “I’ll be back!”

(To get the full report, download The 2024 State of Customer Service and CX Research.)

Image Credits: Pexels, Shep Hyken

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Finding Innovation in the Humble Garbage Can

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Finding Innovation in the Humble Garbage Can

GUEST POST from Howard Tiersky

Uber has taught us that even the most commonplace products and services are ripe with innovation. They’ve re-invented the taxi experience, and many people would agree that, given a choice, they’d never go back to the old way.
Today, I want to give a shout out to another company, one that’s doing amazing things with garbage cans: simplehuman.

Simplehuman, founded in 2000 by Frank Yang, is a great case study in terms of product innovation, as well as business model. It had one simple mission: make a better trash can. For the last year, I’ve had a simplyhuman garbage can in my kitchen, so I can attest. It is a better trash can.

Before we switched to simplehuman, this is the kind of trash can we had in the kitchen:

And this is the simplehuman can that’s in my kitchen today:

Two features of this product make it a real game-changer. The lesser of these was the rim around the top that completely hides the edges of the plastic bag that peek over the edge most cans. I didn’t realize how ugly this was until it was gone. (insert sigh of relief here)

But the real hero is the built-in garbage bag dispenser. As you can see from the image below (pulled directly from simplehuman’s website), a dispenser for new garbage bags is built right into the body of the can, saving me from having to walk across the room to get a new bag from the box under the kitchen sink when I need a replacement. Yes, this is a seemingly small inconvenience, but once it’s removed, it seems a silly waste of effort that you ever had to walk across the room in the first place.

While they may not be solving world hunger, these two improvements are enough for me to never want to go back.

Simplehuman: Our new stainless steel rectangular step can features an innovative ‘liner pocket’ that stores and dispenses liners from inside the can for a faster liner change.

But from a business perspective, here’s where it gets interesting. In order to have garbage bags that fit both the dispenser and perfectly around the rim (so that no “spillover” bag is showing,) I need to use their custom-fitted bags. These bags are sized specifically for this can and come in little boxes perfectly sized to fit the built-in dispenser.

So where does one get these magical bags? Well, when you buy the can, there’s an insert that directs you to download simplehuman’s app. In the app, you can “manage your supplies,” by ordering garbage bags or, even better, setting up a subscription, which is what I did.

What do these garbage bags cost? A 100-count box of simplehuman garbage bags is about $25. That doesn’t break the bank, but as it turns out, it’s about twice what Hefty and Glad bags cost. Besides that, the garbage can itself is about $100, compared with less than half of that for one of their less innovative competitor’s stainless steel kitchen garbage cans. Again, not outrageous, but still a substantial premium. So what’s innovation worth to simplehuman? About double. And it’s worth it to me to pay it to solve problems, even if I never realized there were problems until simplehuman’s solution brought them to my attention.

Coming up with these types of innovations for your business starts with finding painpoints. What is your customer’s equivalent of having to walk across the room to get a garbage bag from under the sink? It doesn’t have to be pain that drives them crazy. Solving just a small irritation can turn out to be a highly appreciated innovation. And what about aesthetic gaps in your products that nobody focuses on, but would be obvious once gone (the way Steve Jobs showed us how ugly PCs were by creating the iMac)?

Finding these types of unmet points of pain can be achieved through ethnography and other research techniques that create customer empathy. Techniques like these can generate profound insights with relatively minimal effort, and at FROM, we utilize them on nearly every project. The majority of the time, the most winning features of the new digital products we create come from solving problems generated by these insights. The ideas may not come from the customers (in fact, they probably won’t) but the pain insights do. Once you have those, it can open up new doors, and allow your team to come up with many new solutions.

Additionally, innovation is often not just about the product, but also the business model. Achieving simplehuman’s innovation required custom-fit garbage bags. I’d imagine that, at one point before launching this product, simplehuman realized it would be difficult to get every grocery store in America to carry these bags, especially before their product achieved critical mass. That logistical problem could have killed the whole concept. But instead of working within the existing ecosystem, where can-sellers have to align to a few non-tailored garbage bag sizes, they shifted their business model to app-based subscription. This allowed them not only to deliver the innovation, but also to double the price of their bags (probably without customers even noticing, since their bags aren’t sold side-by-side with mainstream brands), and to realize 100% of the revenue via direct sales, rather than splitting with a retailer and distributor.

So I say Bravo!, simplehuman. Great innovation, great business, and thanks for making my life a little bit better — I’m happy to pay you more for it. Now imagine what I’d be willing to pay if you could figure out how to get the can to take the full garbage bag outside!

This article originally appeared on the Howard Tiersky blog
Image Credits: Pixabay

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