Product innovation doesn’t have to be risky.
A sad fact. Consumer packaged goods (CPG) manufacturers spend a lot on product innovation, yet approximately 50% of these new products get taken off the shelf within six months and another 25% — totaling a whopping 75% — in a year’s time. There’s nothing innovative about that. The problem is partly a result of focus groups that simply do not represent a large enough sample. In addition, forecasts have traditionally used systems that include many (inaccurate) assumptions that are not vetted with real customer feedback.
Our SR Product Innovation+ changes all this. We utilize a targeted augmented reality survey to over 100,000 customers — not just 100 people or less as is standard. These customers have been specifically identified as having the right buying behavior to give appropriate feedback. We pose questions such as: Is this product something you would buy? Are the benefits of this new product better than the product you buy today? Where in the store would you expect to find this product? This flips the current “innovation” model from one of making broad, risky assumptions using flawed statistical models to an end-to-end, fact-based process solidly founded on customer input. But we don’t stop there. Next, we run test launches in the store and evaluate the uptake of an item, suggesting ways for improvement as needed. The entire product launch is benchmarked, and we even circle back to customers again to remind them to buy the product they helped design! So, innovate with much less spending, in half the time, with the confidence gained by removing guesswork.
- Users track the end-to-end innovation process, ensuring all goals and milestones planned and effectively managed
- Simple and fast virtual reality product concept testing online enables localization without “being there”
- Maintains a system of records to learn from previous launches, wins and watch outs. Predictive analytics help manufacturers define the right product at the right time
- Support more customer-focused decisions
- CPGs gain real customer insights to validate and identify the customer need and validate the business
- Customer Fact-based decision making for store trails and benchmark roll out
- Better ROI through best-in-class answers
- Test before you invest. Side-by-side virtual testing enables shoppers to tell you what they like best