Millions of new consumer products are introduced into the global market every year. However, around 95% of them fail to thrive in today’s highly competitive market. The main reason behind it is that they lack innovation. It is a method to solving issues that a lot of consumers face in the modern age.
The reason why a product fails is either it doesn’t provide a solution to the customer’s issue or there could be other products available on the market that address the issue in a better way. In this article, we will dig deeper into product innovation and find its importance in any business.
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What Is The Need For Product Innovation?
Product innovation is essential for any business as it can assist in the creation of new spaces in the crowded market. Identification of the gaps can help a business find its audience as well as refreshingly satisfy the requirements of consumers.
Product innovation doesn’t imply the creation of a brand-new product that deals with a new issue. It could happen when a business releases an improved version of the previous product by adding new features to the existing product.
Furthermore, innovation doesn’t need to be associated with only products, it can also be related to the processes, business models and services, of a company.
What Are The Characteristics Of An Innovative Product?
Any innovative product fulfils the three conditions:
- The product has to be relevant for a substantial set of consumers
- The product has to be better compared to its competitors. This is applicable in terms of its technology, design, useability, and other aspects.
- The product has to have some uniqueness in it that makes it better than its competitors or predecessors.
What Are The Techniques To Measure Innovation?
Various metrics help in the measurement of innovation. Generally, businesses use return on investment metrics to compute the success of any new product. A sale of a product is another great factor that determines the same. Both of these metrics are applicable only when a new product is launched in the market.
A business can measure innovation at the time of developing it or before its launch. Market research is the way that helps a business measure innovation at early stages and ensures a smooth launch of a product.
Data-driven market research and conjoint market surveys help gain an accurate understanding of the market, its competitors, and the consumers. All these techniques will provide a massive advantage in product launches.
Product innovation is a need for any product to become successful in the market. If the company’s product is innovative, then it has a greater chance to survive and succeed in the market. Due to this observation, it becomes essential for every business to make product innovation a part of their execution.