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  • What is Outside Innovation?
    It’s when customers lead the design of your business processes, products, services, and business models. It’s when customers roll up their sleeves to co-design their products and your business. It’s when customers attract other customers to build a vital customer-centric ecosystem around your products and services. The good news is that customer-led innovation is one of the most predictably successful innovation processes. The bad news is that many managers and executives don’t yet believe in it. Today, that’s their loss. Ultimately, it may be their downfall.

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      Observations

      • LEAD USERS
        Eric von Hippel coined the term "lead users" to describe a group of both customers and non-customers who are passionate about getting certain things accomplished. They may not know or care about the products or services you offer. But they do care about their project or need. Lead users have already explored innovative ways to get things done. They're usually willing to share their approaches with others.
      • LEAD CUSTOMERS
        I use the term "lead customers" to describe the small percentage of your current customers who are truly innovative. These may not be your most vocal customers, your most profitable customers, or your largest customers. But they are the customers who care deeply about the way in which your products or services could help them achieve something they care about.
      • LEAD CUSTOMERS AND LEAD USERS
        We’ve spent the last 25 years identifying, interviewing, selecting, and grouping customers together to participate in our Customer Scenario® Mapping sessions. Over the years, we’ve learned how to identify the people who will contribute the most to a customer co-design session. These are the same kinds of people you should be recruiting when you set out to harness customer-led innovation.
      • HOW DO YOU WIN IN INNOVATION?
        You no longer win by having the smartest engineers and scientists; you win by having the smartest customers!
      • CUSTOMER CO-DESIGN
        In more than 25 years of business strategy consulting, we’ve found that customer co-design is a woefully under-used capability.
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      April 15, 2008

      “Anticipate” Customers’ Questions; Answer Them Completely

      No matter how good a job you do in Web site design and navigation, and in trying to anticipate customers’ questions by proactively offering the right Q&A and links in the right places on your Web pages, customers either don’t see those links or they still have questions. Those questions may be specific to that customer’s account (What’s the balance on my credit card? What’s the schedule for my courses for next semester?). The customers’ questions may be semi-generic (How is a credit rating calculated and how can I improve mine?). Or the questions may be very generic. For example, customers ask “What kinds of credit cards do you offer?” over 13,000 different ways in different places on the TD Canada Trust site. TD Canada Trust knows this because they use a SaaS offering from IntelliResponse Systems, a Toronto-based software supplier. IntelliResponse provides tools that let you instrument your Web site to capture all the searches people are doing in context and to help you tailor answers to these questions with a single, comprehensive, and satisfying response, rather than to provide a list of search results or to dump you into an FAQ. I’ve heard FAQs referred to as “Find a Question”—pretty apt! People don’t want to go to a list of questions; they want a single, relevant answer!Intelliresponse_result_page_wwwtdca

      The “here’s a list of places you can find answers to your questions” approach annoys customers because it provides possible places they could click to maybe find the answer they want. Instead, for each “informational” question that customers ask, IntelliResponse search returns a single search result. That’s right. A single result. Not a list of hundreds, or thousands, of documents or a Web page worth of FAQs, but a single, one- to five-sentence response that answers the customer’s question 80 percent to 90 percent of the time.

      Intelliresponse_result_page_wwwpsue Sometimes, the answer may be self-contained. “Our admissions office is open from 9 to 5 pm Monday through Saturday at this address. The nearest subway stop is X, the nearest bus stop is Y. There is free parking behind the building.” Other times, you provide the answer and a quick link: “Here’s our credit card finder: see a list, compare offerings, select the one that’s right for you, see which ones you qualify for.”

      TD Canada Trust and Penn State University are two of the over 90 companies that are currently using IntelliResponse’s software service to provide one-stop answers to customers’ open-ended questions. This week, Mitch Kramer provides a detailed analysis and evaluation of IntelliResponse 5.6. I was pleased to see that, although this software is provided as a service, Mitch included a list of the open source and licensed software modules that the small development team uses in crafting this solution, as well as a list of the dozen Web services APIs that you can use for integration with your other software tools. We believe that this level of architectural disclosure and transparency is important. Even if you’re buying software as a service, you still care about what’s inside the “black box,” and you need to know how easy it is to integrate this hosted service with other hosted services and with your internally-deployed applications.

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