Tuesday, October 23, 2012

Focus groups not always that focused

Definition: focus group

According to Wikipedia " focus group is a form of qualitative research in which a group of people are asked about their perceptions, opinions, beliefs, and attitudes towards a product, service, concept, advertisement, idea, or packaging".

Not all focus groups are equal

Alan Cooper is widely recognised as the Father of Visual Basic. In his book "The inmates are running the asylum" he acknowledges that focus groups may be useful in some industries. However, he is emphatic that they should not be relied on for software user interface.

Take a chance

This leads the most innovative leaders to appear to us as the ultimate risk takers.

Steve Jobs openly admitted that the night before the launch of the iPad that he was petrified of market rejection. Yet, 100m iPads later, the risk taker looks like a genius.

Understand the real risk

So how can we learn to take more risks, but manage the downside? This is something that Google and others understand well in their 20% time model. Employees are encouraged - even required - to spend time innovating in areas that aren't on their ToDo list.

What are the key risks? Well it turns out that during market changes, the key risks are in fact the opposite of what we would expect. Examples that innovators often cite are
  • Not going far enough
  • Not going quickly enough
  • Not trying enough options
All of which in fact translate into too much waste.

How can we Manage risk ...

Fail quickly - Attempt multiple options and evaluate for solution effectiveness

Fail cheap - Create Mockups and evaluate for efficiency at scale

And reward?

Plan the Total experience - Define the total experience from identification to selection, buying, deploying and upgrading.
Ritz-Carlton look for WOW moments to exceed customer expectations. When I went for a run and returned with an empty Gatorade - the next day I found a fresh one in my room.

Define the unstated need - Look under the cover to see what users are really trying to do and why they can't succeed with today's solution.
BMW understood the time and cost associated with owning a car - so they include maintenance for free.

Test. Test. Test. - One size doesn't fit all. Consider discrete market segments and distribution channels. Collect feedback and act on it.
You may only launch into a new market once. Unhappy customer may tell ten others. Define your target audience and stay focused on them to ensure success - and word of mouth references.

Separate innovation organizations - The main organization may consider the innovation a threat. They may take implicit or even explicit action to inhibit a new innovation. Create small focused teams.
IBM separated the PC development team from others at Boca Raton to ensure success.

Are you only listening to existing customers?

What mechanisms do you use to expand feedback beyond existing customer groups. Please share your ideas in the comments.

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