Customer Experience Innovation: As Simple As 1-2-3

I just published a research report called “Customer Experience Innovation In Three Steps” which describes the following three-step process for creating breakthrough customer experience innovations:

  1. Uncover the needs. Let’s start with an assertion: In every industry, customers have a lot of unmet needs. Why else would digital video recorders (DVRs) like TiVo gain momentum when there was no shortage of mature VCR options? The first step in the customer experience innovation process is to understand exactly what current and potential customers really need through end user research like ethnography.
  2. Design a disruptive strategy. After understanding what customers really want, firms need to define potential offerings. Although ideas for new products and services can come from anywhere, firms should consider designing solutions based on one or more of Forrester’s five disruptive customer experience strategies.
  3. Evaluate the opportunity. Not all innovations are worthy of investment. To decide which ones make sense to fund, firms can use the R-W-W (real-win-worth it) framework. How does this work? Only go ahead with proposals if you can answer “yes” to all three of the following questions: Is the opportunity real? Can you win? Is it worth doing?

The bottom line: Make sure that innovation is on your agenda.

Written by 

I'm an experience (XM) management catalyst; helping organizations improve results by engaging the hearts and minds of their employees, customers, and partners. I enjoy researching and speaking about leading-edge XM topics. I lead the Qualtrics XM Institute, which is the world's best job. We're igniting a global community of XM Professionals who are inspired and empowered to radically improve the human experience. To achieve this goal, my team focuses on thought leadership, training, and community building. My work is driven by a set of fundamental beliefs: 1) Everything starts and ends with human beings, so you need to understand how people think, feel, and behave; 2) XM is a discipline that needs to be woven throughout an organization's entire operating fabric; and 3) Building the XM discipline requires a combination of culture, competency, and technology.

4 thoughts on “Customer Experience Innovation: As Simple As 1-2-3”

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.