Don’t judge tomorrow’s consumer proposition by today’s business case.
We help our customers deliver consumer delight and engagement through breakthrough technology.
The consumer product sector is almost perfectly competitive, but there’s plenty of opportunity for new market creation being made possible by lifestyle and behavior change.
How to find and evaluate the new spaces? And what to invest in?
The old competitive benchmarking model doesn’t work anymore. With saturated markets and totally transparent and borderless pricing, it only leads to margin erosion and reliance on SKU rotation for windows to push sales. It’s a sales-oriented mindset and the dominant KPI in that context is sales performance, which is very tangible.
New consumer opportunity spaces don’t resemble those of the past. There’s now a greater focus on consumer behavior change – rather than executing functional tasks alone – as well as leveraging multi-sector synergies. It can be difficult to shape a differentiation proposition and evaluate its impact, especially when leaning on sales data.
Now there’s a need for a new dominant metric: engagement.
How engaged is someone with a product they are using, what are they doing, how are they behaving, how are they interacting with the brand? These softer metrics have obvious relevance in the development process, which means lots of trial and error, iteration and relentless measurement.
With new technology, the measurement increasingly extends into the market and beyond numbers being shifted from shelves – evaluating how people are using a product and what meaning it delivers to their lives. This opens the opportunity to only invest in scale-up when there is a clearly identified take-up of a new proposition; and that includes focusing marcoms on what’s working. It also provides the chance to evolve a solution in the market or learn at scale for new product development.
Technology can facilitate all of that.
Machine vision tech makes it possible to watch for gestures and ultimately, supported by AI, behavior and sentiment. Specifically, there’s gaze tracking for a 'wake gaze', measuring how much people connect with a product through a look. Stitch it all together and you have masses of behavioral data to measure engagement.
It’s vital for consumers to find value. It could come from offering an ultra-relevant service model, helping them change behavior to reach certain goals and learn a new skill, or providing biometric sensing to measure progress and efficacy in reaching a health goal.
Ultimately, perhaps the product manager’s market dashboard can evolve beyond sales metrics to include engagement metrics, giving the insight needed to invest intelligently in market growth, retention, loyalty and much more, all based on real market value.
The context is complex and interconnected, but it’s possible to break down initiatives into practical plans, shaping the solutions I’ve described and bringing stakeholders along with iterative, demonstrable steps. And that’s something I’m always happy to talk through in detail if you’d like to get in touch.