When we think about ROI, KPI, or really any set of initials, it's very easy to forget that the purpose of a business is to connect people with a product or service that they want or need. User-centric processes and innovations are not just good for the consumer, they are good for the business.
When you optimize your behavior to reflect the needs of the consumer, you are organically taking an enormous amount of friction out of the process.
It's through these innovations that you align your practices with buyer behavior to generate more revenue and create a better experience on both ends of the equation. In this article, we take a look at what that looks like in the modern era.
The Power of Alignment
Before we get too into the weeds, let's talk about the value of alignment by imagining a shiny new product. Our shiny new product is expensive and visually appealing. It has a high markup and the potential for great short-term profitability. However, there are several key problems. First, its pricing and presentation do not reflect the experience that it ultimately produces.
We've all been there on the consumer end, right? Something looks good but isn't. The as-seen-on-TV model, if you will.
The other issue is that the funnel is misaligned. There is a lot of money being pumped into exposure, and because this product looks appealing, it does convert at a relatively high rate in the short term. But notice that we keep using the phrase short-term.
That's because when shiny new product gets out into the world, several things happen. One, it's immediately clear that the value it provides is not proportionate to its price, nor is it aligned with the way the product was initially presented.
So immediately, there are a lot of returns, complaints, bad reviews, etc. There's also no natural mechanism for growth.
That's because the funnel is out of whack. Shiny new product got in front of lots of eyes, but they weren't necessarily the right eyes. People bought it, they weren't the right people.
They weren't the people who would recommend it to friends, leave great reviews, maybe buy supporting products, accessories, merchandise, or if relevant, buy shiny new product again.
So this item launched with lots of fanfare but ultimately fizzled and died.
Customer Centric Innovation Inspires Natural Growth
Does this sound familiar? It probably does. You've probably seen things like this happen many times before. Maybe you've even bought your own share of shiny new products, only to exhibit the same negative consumer behavior we just described above.
By contrast, a different company could release a boring new product that is a significantly greater success. Boring new product might not have all the glitz and glam of shiny new product, but it does have several other things going for it.
One, it presents itself accurately, clearly describing its value to the right audience. Two, it's launched with a well-designed funnel, optimized not only for getting sales, but also for developing long-term connections that can spread from one customer to multiple customers by encouraging referrals, recommendations, and repeat sales.
In business, it's very easy to want as many buyers, customers, etc. as possible. What's ultimately much more important, however, is finding the right people—innovating through a user-centric focus.
Business Done Better
Strong business principles should focus on organic growth. This means identifying what role your product satisfies, what demand and need it meets. It also means figuring out how to publicize that fulfillment in the most satisfying and effective way possible.
User centricity can play an important role in that process. Consider, for example, the incredible growth of Zoom. Zoom's story is a favorite among business types because it satisfies so many interesting and unique angles. For one thing, it was a passion product developed by founder Eric Yuan, who wanted a better way to communicate with his long-distance partner.
From there, Zoom struggled out of the gate before the pandemic allowed it to seize upon a huge moment.
Naturally, there are many different video conferencing technologies out there. What set of conditions made it so that Zoom is now a verb?
Well, there are multiple factors at work. One of the most interesting, however, is that Zoom embraced a user-friendly consumer growth model. They made their product free to schools and other service-based organizations. They also prioritized extremely high levels of customer experience. Finally, they employed a business model that encouraged growth primarily through consumer enthusiasm.
What that means in practice is that when one decision-maker within an organization embraces Zoom, it initiates a chain reaction of sorts. Now, anyone that they communicate with remotely also needs to acquire Zoom. This can create a ripple effect both within the organization and within other organizations that they come into contact with.
By landing a few high-profile accounts, products like Zoom can grow exponentially simply by connecting customers with something they want and need in a format that matches the way they use the product.
Now, naturally, not every product is a good fit for consumer-led growth, but it does hint at a wider reality: when you give consumers something they want—complete with the packaging they need—you can have a really big impact on sales.
The Innovation Framework
Typical frameworks for innovation reflect three core concepts: desirability, feasibility, and viability. In other words—do people want this? Can you give it to them? And, if so, will the product grow and exist in a sustainable, scalable fashion?
While there are many components that go into each consideration, you can always begin by focusing first on the consumer. What do they want? How can you give it to them in a way that will scale in a long-term context?
Modern business education focuses enormously on the needs of the consumer. This is thanks largely to our new and ever-increasing access to data. Though, of course, analytics have always played a role in business, we've never had greater access to them.
People currently enrolled in BBA programs are learning with data processing tools that are powered by artificial intelligence, among other technologies. This makes it much easier to analyze different business scenarios and come up with solutions that are focused on both innovation and consumer desires.
It’s never been easier to give consumers what they want, the way they want it. Businesses that grasp this core concept are well-positioned for success.
