Turn customer input into innovation.

It's difficult to find a company these days that doesn't strive to be customer-driven. Too bad, then, that most companies go about the process of listening to customers all wrong--so wrong, in fact, that they undermine innovation and, ultimately, the bottom line. What usually happens is this: Companies ask their customers what they want. Customers offer solutions in the form of products or services. Companies then deliver these tangibles, and customers just don't buy. The reason is simple--customers aren't expert or informed enough to come up with solutions. That's what your R&D team is for. Rather, customers should be asked only for outcomes--what they want a new product or service to do for them. The form the solutions take should be up to you, and you alone. Using Cordis Corporation as an example, this article describes, in fine detail, a series of effective steps for capturing, analyzing, and utilizing customer input. First come indepth interviews, in which a moderator works with customers to deconstruct a process or activity in order to unearth "desired outcomes." Addressing participants' comments one at a time, the moderator rephrases them to be both unambiguous and measurable. Once the interviews are complete, researchers then compile a comprehensive list of outcomes that participants rank in order of importance and degree to which they are satisfied by existing products. Finally, using a simple mathematical formula called the "opportunity calculation," researchers can learn the relative attractiveness of key opportunity areas. These data can be used to uncover opportunities for product development, to properly segment markets, and to conduct competitive analysis.