Today I was asked an important question that challenges most businesses - What makes a great product?
I propose the answer to this simple but elegant question is the synergy between Consumer Value, Company Value and the Creation Process. Because the right balance of these 3 areas produces a quality product, outstanding value for consumers and excellent financial returns for the company.
Consumer Value
From a consumer perspective the product must have the following elements;
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The most compelling value proposition in its market or segment – great products impel the target audience to buy them because the design, features, functionality and benefits are irresistible, compulsive and seductive so customers cannot resist.
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Make a meaningful difference in customer’s lives – great products solve consumer’s unresolved problems by tapping into relevant desired needs and this creates added value.
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Be easy for the buyer to understand and use – a product with clear, simple and transparent functionality with no complex manuals or terms and conditions.
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Establish an authentic and emotional connection with the user – great products allow you to personalize features to your individual tastes, they are accessible with an easy online interface and they enhance people’s lifestyles. When this happens products will establish emotional connections so users purchase more and recommend the product to their family or friends.
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Have a great customer experience across the life-cycle – the buying process, fulfillment, customer service, website, and ongoing communications are deliberate and compliment the product. Batteries are included!
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The purchase price maximizes consumer utility – great products are priced correctly so that the rational value, emotional benefits and satisfaction derived are greater than the asking price.
Company Value
These are the key elements of a great product from the company perspective;
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The product is number No.1 or No.2 in its market or segment – the GE strategy that being the No.1 or No.2 player generates significant cost, quality and production advantages over the competition.
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Delivers the company above-average profit margins – because this allows the company to reinvest in growth and product improvements.
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Builds on the core assets of the firm – great products utilize the company brand, technology, customer service, and design or production capabilities. This creates a powerful force when aligned with the organizations business model.
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Designed for a clearly defined market segment – the product provides an easy solution for a unique problem experienced by a large number of consumers. This problem cannot be readily solved by another substitute product.
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The ability to expand from the core business – great product can be extended into new customer segments, new geographies or new markets.
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Easy to advertise and communicate - great products sell themselves since celebrities and early opinion formers endorse product. As the product is rapidly adopted the customer experience generates advocacy and an army of supporters create buzz, excitement and free PR via word-of-mouth. The result is lower marketing and advertising costs.
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Complimentary to your product line strategy – the product has to make sense to customers, your employees and sales teams, and it must fit with your brand and the other products you sell. This limits cannibalization of your other products and makes marketing easier.
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A clear product strategy – products that try to be everything to everyone will fail because they confuse the market and potential buyers. Thus products should compete on price, significant differentiation of features and benefits, or serve a niche customer segment.
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The product is designed to drive ongoing usage, engagement and repeat purchase behaviour – the best brands know a product is more than design and packaging but includes the actual customer experience that surrounds it. When the product experience exceeds customer expectations, and surprises and delights, customers will return for more.
Creation Process
The most commercially successful products use a structured creative process with 2 key ingredients. OK - some products like the Post-it Note were accidents but they still need to get to market through;
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A talented team of diverse experts - Thomas Edison said “success is 10% inspiration and 90% perspiration” but from my experience creating a new product is down to the blood, sweat and tears of individual champions and cross-functional experts in the team.
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A deliberate innovation process for new product development - this creation process starts with a maniacal customer focus to uncover unmet needs, then structured idea generation to harness creativity. Next energy and passion to create a competitive strategy, with a winning product concept and customer experience. Lastly, flawless execution focused on product design, testing, quality and performance.
