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Why 80% of product launches fail

How the evaluation of customer feedback could drastically reduce this number.

According to Professor Clayton Christensen (Harvard Business School), more than 30,000 new consumer products are launched each year, but 80% of them fail. There are several reasons for this: the structure of the company, the changing markets, but also the product itself.

Havard Business Review uses the example of Windows Vista to show that it would be better to wait for the launch “until the product is really ready”. But what if companies don’t have the time to wait until the product is really ready? What if product life cycles are shortening and do not allow for extensive development and research?

The phenomenon of “fast fashion” or the computer industry show that the variety of products is increasing and, accordingly, the pressure to produce faster.

So, what can be changed to enable rapid and customer-centric design of products? Customer centricity is definitely a core competence for companies, as confirmed by the Kaizen Institute.

What do customers expect in the future? Certainly not just state-of-the-art design, but personalized and individualized products. For this, companies need to process and understand a lot of feedback on their products and services. It is not enough to describe brand values alone. Product experts, marketers and sales must understand the performance of the individual product.

We believe it’s time for an automated approach to researching and processing customer insights. In addition to traditional customer research, Insaas helps collect customer reviews from different channels and provides insights into features: What did the customer like or dislike about the product? If companies knew what customers expected, they could save time and money in production, and the rate of 80% could also be reduced.

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Dr. Korbinian Spann
15. July 2020