In today’s ultra-competitive market, it is vital for businesses to distinguish themselves from their rivals. This can be achieved via pricing, product offering, promotions, customer service or more importantly – and yet often forgotten – by innovation.
Innovate to meet customer expectations
Customers nowadays are more savvy than they were a few years ago and expectations are a lot higher. If your product does not satisfy their need effectively and efficiently, the consumer will simply move on to the next company. According to ResearchGate, a survey has shown that a company can significantly increase customer satisfaction and customer loyalty if it continually make innovative products.
Customers are more likely to buy from a company they feel listens to their needs and consistently updates and modernises its products and services. People also buy from companies that they feel they can trust, and highly innovative businesses give people a sense of confidence to buy from them.
Successfully innovative businesses are ones that not only respond to current needs (both customer and organisational), but they anticipate future trends and then develop a solution to meet the demand. This focus on innovation will help your company stay ahead of the competition when technologies, markets or trends shift. It is important to make innovation a vital part of your overall business plan.
According to Harvard Business Review, when producing your innovation strategy, you have a choice regarding how much emphasis to place on technological innovation and business innovation, including how you market the business. There are companies that can help you build a strategy such as Blond Ideas Group. (www.blondideasgroup.com/)
Innovation to create value
However, it is extremely important to understand that innovation needs to create value for both your customers and your business. To create value for your business, innovation could induce potential customers to pay more, resulting in an increase of ROI. If the innovation is very popular, more customers buy into it, resulting in higher returns. To create value for the customer, the innovation might make a product perform better or make it easier or more convenient to use, more reliable or more durable.
Another form of innovation is how your business brings your product or service to market. Are you using innovative marketing channels? Are you on trend when it comes to marketing your product?