Secrets to Marketing New Products and Services
A better customer experience increases the likelihood of a successful new product launch.
You've probably been involved in many marketing efforts to promote and sell new offerings. Keeping those projects in mind, how much easier would they be if your target market actually wanted to try something new from your company? To measure customers' willingness to try new products and services, we created the “Temkin Innovation Equity (TIE) Index.”
The 2014 TIE Index rates 254 companies across 19 industries based on a survey of 10,000 U.S. consumers. We ask customers this question: If [company] announced a new product or service, how likely would you be to try it right away? The TIE Index is the percentage of consumers who say that they're likely to try the new product or service minus the percentage who say that they're unlikely to do so.
Here are some of the results from this year's TIE Index:
Companies with the highest TIE Index. Our research shows that consumers are most willing to try new offerings from Advantage (rental cars), Sony (software), Fujitsu (major appliances), Apple (software), Audi (auto dealership), Lexus (auto dealership), QVC (retailer), Foot Locker (retailer), and Activision (software).
Companies with the lowest TIE Index. Consumers are least willing to try new offerings from HSBC (bank), Fifth Third (bank), Time Warner (Internet service and TV service), Cox Communications (Internet service and TV service), Charter Communications (TV service), Citibank (bank and credit cards), Comcast (TV service), Sun Trust Bank (bank), and Capital One (bank).
Industry average TIE Index. Consumers are most likely to try new offerings from major appliance makers, hotels, software companies, and grocery chains. At the other end of the spectrum, TV service providers, Internet service providers, banks, wireless carriers, and credit card issuers have the lowest average TIE Index.
So what does this have to do with customer experience? A lot. There's a little known secret about customer experience: When customers have a better customer experience, they're more likely to try a company's new offerings.
We compared companies' TIE Index with their “2014 Temkin Experience Ratings.” As the chart shows, companies that have superior customer experiences as compared to their industry peers have an average TIE Index score that's five points higher than those peers. Compare that with the companies that end up in the lowest quintile of customer experience: They have an average TIE Index that is more than three points below their industry.
The bottom line: Improving customer experience will boost new product success.
|Bruce Temkin, managing partner and customer experience transformist at Temkin Group, a customer experience research and consulting company. He is widely viewed as a leading expert in customer experience.|