Most have heard the adage ‘Simplicity is the key to success’. Interesting as it appears it is often overlooked when the pressure of business deliverables and launch expectations become critical. Quite often the terms simple versus easy become confused and the resultant consequences potentially deliver very different end-result customer experiences, and therefor financial outcomes.
I have listened to many leaders explain to their colleagues and organisations the importance of simplifying their products and services in an attempt to provide better customer experiences to drive market leadership. Unfortunately, I have also witnessed teams who then enter a state of chaos and have no idea how to simplify the product or service they are accountable for.
The pressure to deliver then drives the launch without the rigorous customer insights necessary to optimise performance.
As a result it is not surprising that 30% to 50% of new product launches fail to achieve targets.
For many firms 86% of their market research investment is undertaken at the embryonic or initial stage of product/service development, the remaining 14% occurs prior to go-to-market and is most often in conjunction with focus groups. A potentially very misleading process. This infers minimal in-depth, or direct one-on-one market testing required to challenge the go-to-market value proposition.
Fully integrated end-to-end market testing.
In fact, these three words simple-easy-complex should be consistently questioned throughout all the development phases, culminating with the final go-to-market research challenging the rigour and accuracy of the process, inclusive of the superiority of the value proposition.
When? Prior to any expenditure on the market launch and final execution. Unfortunately, for many businesses this lack of discipline and consideration means market failure more often than not, with corresponding erosion of brand perception and value.
Why?
Let’s start with the fact that all businesses possess some form of value proposition, yet 34% fail in the first 2 years of existence, after 4 years 46% have failed (US Bureau of statistics (pre GFC data).
The key fundamental reasons for this other than poor economic management are:
…1 Their value propositions are not robust or superior to the competition.
…2 If the value proposition is superior it does not pass the simple-easy-complex customer challenge.
The concept of superior value propositions is discussed under the tab titled ‘Market Focus’ (click here).
At this time I have not witnessed a fully integrated challenge process conducted as a formal component of the final go-to-market business approval.
To gain an understanding of simple-easy-complex let’s refer to an example you will all be able to identify with, the Smart phone.
The advent of the smart phone has witnessed a huge change in consumer behaviour, and the usage of mobile phones once only identified with making calls and sending text. No longer do you need to press the number 2 key three time to create the letter ‘c’. We now have real or virtual QWRTY keys to directly type and enter data. We can access social media, send and receive e-mail, read your favourite news, read a book, check the weather, accesss a plethora of information on the internet, purchase and listen to music, and make a call. All from wherever you are, whenever you want it, at affordable prices.
This resultant change in consumer behaviour has had massive implication on our lifestyles, with corresponding demands on the mobile networks. Why? Because of the ability to provide a superior experience (value proposition) to the end customer at a price they can afford.
This is a classic example of a transitional process moving from complex to easy to simple.
So what is simple?
Simple is all about being intuitive and obvious with no need for directions or instructions regarding ‘how to use’.
A further point of clarification. The more frequently you undertake a complex task over an extended time period, the more it will appear to become easy. Why? Because once you have learnt a difficult task it fits within your acceptance limits and is aligned to your accumulation of knowledge. So if there isn’t any known acceptable alternatives to a complex problem you will persist and learn by default. This then provides an opportunity to exploit a gap.
This article has been built around a technical example, nevertheless, the business rule for simple-easy-complex applies to ALL products, services and channels, retail, manufacturing, FMCG, etc. In fact, any application where a superior value proposition is to be delivered to the end customer.
In other words, successful and therefor profitable superior value propositions delivering the job-to-be-done must be customer centric with an intense focus on simplicity if they are to be universally accepted. For example, MacDonald’s, Tom Tom, Digital cameras, Smart phones, i-Pod, i-Pad, etc
So what is the test?
The answer is in the diagram above. We look forward to your comments and feedback. If you would like to explore Simple, Easy, Complex in more detail, please contact Mind Fusion today. Our role is to assist your business deliver profitable solutions in support of your every day business challenges.