Your product's lemming factor: are you following your competitors off a cliff?

I have seen it happen time & time again... and it always reminds me of the psychology of crowds, and how the individuals within the crowds assume their fellow crowd-members know something they don't know. So the individual continues to follow the crowd, all the while not realizing that the crowd is often an amalgam of equally confused individuals...

The Lemming Effect
Ok, enough of the philo-babble. The "lemming effect" as I call it is no doubt present within many organizations, and all of us at one time or another fall into its trap. Its influence within product management & product development is pervasive, frequently resulting in products that get bulkier & costlier over time. But we would be remiss to equate the proliferation of bells, whistles & "performance enhancers" with greater levels of customer value.

There are many drivers of the phenomenon of "Frankensteining" a product, and the lemming effect is at the top of the list. It all starts when we become more focused on our competitors than on our customers. One day Acme, our arch rival, increases the performance of its product or adds a new feature. "Hmmm", we think to ourselves, "What does Acme know that we don't? Are customers demanding greater levels of performance?" And then, voila, with limited thought or analysis we quickly 'upgrade' our product. Acme no doubts catches wind of our "2.0", and the arms race ensues.

All the while, our customers might not even be looking for the increased performance or the new bell or whistle. Perhaps our target customer looks a little different from Acme's target customer, and have somewhat differing needs. Perhaps Acme's reason for making enhancements to its product were ill-conceived or driven by internal factors that are invisible to us. Regardless of the reason, the one thing we have successfully achieved is increasing the cost of both our product as well as Acme's, who will no doubt follow suite with their "3.0". Whether we're able to "pass along" this incremental cost to our customers in the form of higher prices is something we certainly hope we can do.

Never take your eyes off your customers
The moral of the above faux situation, and of the lemming effect in general is to be wary of the moves that your competitors make. Do not assume the moves they are making are the right ones or that they have generated an insight that has given them the secret to building the perfect service for customers. The remedy to the lemming effect is quite straightforward, yet often ignored. Stay abreast of what your competitors are doing, but keep your eye on the ball - aka, your customers! Stay close to your customers. Develop multiple channels & methods for gaining access to the "voices of your customers". Understand their needs, desires, motivations, decision-making processes, changes in their outlooks or needs, etc. If you do these things right, you will be far less vulnerable to the lemming instinct, and far more confident in product decisions that you choose to make.

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Your product's lemming factor: are you following your competitors off a cliff?

I have seen it happen time & time again... and it always reminds me of the psychology of crowds, and how the individuals within the crowds assume their fellow crowd-members know something they don't know. So the individual continues to follow the crowd, all the while not realizing that the crowd is often an amalgam of equally confused individuals...

The Lemming Effect
Ok, enough of the philo-babble. The "lemming effect" as I call it is no doubt present within many organizations, and all of us at one time or another fall into its trap. Its influence within product management & product development is pervasive, frequently resulting in products that get bulkier & costlier over time. But we would be remiss to equate the proliferation of bells, whistles & "performance enhancers" with greater levels of customer value.

There are many drivers of the phenomenon of "Frankensteining" a product, and the lemming effect is at the top of the list. It all starts when we become more focused on our competitors than on our customers. One day Acme, our arch rival, increases the performance of its product or adds a new feature. "Hmmm", we think to ourselves, "What does Acme know that we don't? Are customers demanding greater levels of performance?" And then, voila, with limited thought or analysis we quickly 'upgrade' our product. Acme no doubts catches wind of our "2.0", and the arms race ensues.

All the while, our customers might not even be looking for the increased performance or the new bell or whistle. Perhaps our target customer looks a little different from Acme's target customer, and have somewhat differing needs. Perhaps Acme's reason for making enhancements to its product were ill-conceived or driven by internal factors that are invisible to us. Regardless of the reason, the one thing we have successfully achieved is increasing the cost of both our product as well as Acme's, who will no doubt follow suite with their "3.0". Whether we're able to "pass along" this incremental cost to our customers in the form of higher prices is something we certainly hope we can do.

Never take your eyes off your customers
The moral of the above faux situation, and of the lemming effect in general is to be wary of the moves that your competitors make. Do not assume the moves they are making are the right ones or that they have generated an insight that has given them the secret to building the perfect service for customers. The remedy to the lemming effect is quite straightforward, yet often ignored. Stay abreast of what your competitors are doing, but keep your eye on the ball - aka, your customers! Stay close to your customers. Develop multiple channels & methods for gaining access to the "voices of your customers". Understand their needs, desires, motivations, decision-making processes, changes in their outlooks or needs, etc. If you do these things right, you will be far less vulnerable to the lemming instinct, and far more confident in product decisions that you choose to make.

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How watching Seinfeld can help you become more innovative

"Did you ever wonder why...?"

The above phrase captures the thematic brilliance of Seinfeld, both the show as well as the comedian. In addition to providing a foundation for Seinfeld's comedy, it also serves as a framework for exploring the world with more innovative eyes.

One of the core premises of this famous "Seinfeldian" phrase is the idea that not everything that is necessarily makes sense or should be. Most people, being extremely busy and having grown up in an environment in which "it has always been this way", are less likely to notice "the absurd" in everyday life.

Taking the time out to put on the "Seinfeld glasses" allows you to take a step back and make the types of observations that can lead to major innovations for products, services & processes. As I have written about in prior posts, becoming a more mindful marketer is the name of the game, and Seinfeld's mindfulness is one such variation on the theme.

So the next time your thinking about a product, a service, a process, or what have you, take a 60-second timeout out and ask yourself, "What about this do I find annoying? What irritates me or seems unnecessary, silly, or overly cumbersome?"

After you have discovered these irritants or apparent absurdities, challenge yourself to come up with solutions, knowing that they are waiting to be discovered.

read more

How watching Seinfeld can help you become more innovative

"Did you ever wonder why...?"

The above phrase captures the thematic brilliance of Seinfeld, both the show as well as the comedian. In addition to providing a foundation for Seinfeld's comedy, it also serves as a framework for exploring the world with more innovative eyes.

One of the core premises of this famous "Seinfeldian" phrase is the idea that not everything that is necessarily makes sense or should be. Most people, being extremely busy and having grown up in an environment in which "it has always been this way", are less likely to notice "the absurd" in everyday life.

Taking the time out to put on the "Seinfeld glasses" allows you to take a step back and make the types of observations that can lead to major innovations for products, services & processes. As I have written about in prior posts, becoming a more mindful marketer is the name of the game, and Seinfeld's mindfulness is one such variation on the theme.

So the next time your thinking about a product, a service, a process, or what have you, take a 60-second timeout out and ask yourself, "What about this do I find annoying? What irritates me or seems unnecessary, silly, or overly cumbersome?"

After you have discovered these irritants or apparent absurdities, challenge yourself to come up with solutions, knowing that they are waiting to be discovered.

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How to spur innovation using Maslow's hierarchy of needs

Abraham Maslow, the psychologist from Brooklyn who is famous for his 'hierarchy of human needs' has contributed more to the discipline of marketing than he ever would have probably imagined. Mind you, Maslow probably spent little if any time contemplating marketing so he likely would have been ambivalent towards his contribution.

Regardless of Maslow's intentions when he devised his famed hierarchy of needs, his pyramid provides us with some extremely powerful innovation exercises for business, particularly with respect to products & marketing.

One such exercise that I run through frequently is to explore how I might inject one or more of Maslow's needs into an existing product or service to help differentiate it. For example, meditating on the esteem need begs the question of how I might make my customers feel extra special, important, and worthwhile.

With respect to the need for self-actualization, which is strongly associated with giving to others, I am led to think about giving a share of profits to charities selected by my customers. As a purely hypothetical example, let's say for every $100 car insurance premium paid by a customer, $2 will be given to a charity of the customer's choice, which she gets to select while paying her premium online.

In using Maslow's hierarchy as a potential playing field for innovation, it is critical to first identify the core benefits provided by the product you're looking to innovate around - whether it be security, guidance, hope, pleasure, saving time or money, etc. Only once you have a clear grasp of the core benefit of your product will certain needs within the hierarchy begin to resonate, and will opportunities for innovation in your marketing or the product itself begin to "pop".

More to come on innovating around Maslow's hierarchy in future posts - I have some neat frameworks & tools for you to use which will beef-up your Maslow-muscle. As always, feel free to contact me with any of your questions, comments or thoughts.

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Other posts on Maslow:

• Injecting some Maslow into your marketing
  

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