Rather, how well should you know your customer? A few questions that I've been thinking about lately:
- Product vs. Go-To-Market: How do you balance improving the product technologically vs. being the first mover in a market? Sure, you can have a great product, but it means nothing if you have no customers. A classic example of this is the Betamax vs. VHS standard battle. Along the same lines, is it always best to be the first mover? Say you've got the customers. If you're not as technologically competent, how feasible is it to improve the technology later on?
- Product Launch: How do you determine optimal product launch? When do you know to "let it go?" When do you stop adding features and start beta testing? Would it be bad if initial customer reaction was very negative (how badly does it affect your reputation)?
- Customer Feedback: Sometimes, customers may not know exactly what they want. How do you interpret customer feedback, reiterate, and incorporate that into your product?
technorati tags: customer, product launch, first mover
Comments (3)
I think it is generally best to spend money on marketing rather than technology. If I were creating a product that required an "ecosystem" or depended on the network effect, I would view having a high number of units shipped as a more important strategic goal than having the best product. Thus, I don't think it is as important to be the first mover as it is to be the first heavy marketer. Once consumers have products, a combination of dependency and inertia will often keep them content.
Posted by Adam Powell | January 9, 2007 1:54 PM
There is no thing as perfect product, simply because human is not perfect. However, there are better products than others. Building a product is an iterative process through the feedback from market and customers. A better product or associated brand name is often created in years not in months or days. So the time-to-market is the most critical factor to consider, and most of time the most important objective in building a product. Timing is everything. There are so many smart people out there. There is a saying that what shall be invented may have been invented. If you do not do it, some one else will do it.
Product launch is only the very first step for ultimate product success in the market. It is the beginning of another innovation cycle. Improvement never stops to build a category killer product. Innovation largely comes from customer feedback and real world problems. Visit and listen to customers often. A CEO shall spend at least half of his time with important customers.
Time to market first, and perfect it over time.
Posted by Charles Chen | January 11, 2007 4:55 PM
Adam, that's a very big, silly generalization. "Make the products and the consumer will come" is, to some extent, one of the root causes of the problems the Big 3 have had over the past few years. Talk to their suppliers and you'll hear the resounding message that they think of themselves as gods on high. The inability to foster mutually beneficial relationships with suppliers and a lack of customer focus has hit them, and their suppliers, hard. Apple is an example of customer centricity, which you seem to dislike. Their products are to the last detail extremely focused on usability, and you know what? That's why they're charging $599 for a phone and earning themselves fat margins. They're adding value. They deserve the margin.
And now, perhaps, the cellular handset industry will taste a bit the medicine of a die-hard 'eye on the customer' competitor. Let's see their marketing dollars save them now, right Adam? Status quo and "inertia" work until a competitor comes in with their head on straight.
Just opinions.
Posted by Anon | January 11, 2007 10:03 PM