Seymourpowell design director Ed Hebblethwaite questions the role of the consumer insight in the design and innovation process.

1. Is the customer
always right?

2. Is the customer
always right?
Ed Hebblethwaite
Director of Strategy at Seymourpowell
In a word – no. But ultimately, yes. That might sound like passing the credentials test, a subsequent
brief and our response to it, then a presentation.
confusing political hedging, so let me explain our point What became obvious at the presentation phase
of view. Is the customer always right? Well it depends on was a fundamental and irreconcilable difference
the question you ask them, and when as well as how in our approach to innovation compared to theirs.
And this, we have noted in recent months, is not
you ask it. If you ask them to imagine what they might an isolated incident. It is becoming standard
like or need in the future, their answer may be interesting practice in many FMCG brand innovation projects.
Our brewery friends looked at us aghast and said
and creative,but it will generally be ill-informed. “You can’t innovate without a consumer insight!”
Well actually you can…and really you should.
Consumers won’t have studied what is they don’t see a real need or benefit from the Innovation isn’t a clean, linear process from
technically possible in your industry. They don’t product they simply won’t be prepared to pay consumer insight through technical feasibility to
know what is commercially viable and where for it. That means the customer can be both an prototype, business model and launch. It would
the world is moving in legislation, economics or initial irrelevance and the sole arbiter of truth in be a lot easier if it was that logical, but it isn’t!
demographics. So their answers are often the innovation process. Ultimately we need to find the consumer benefit;
the insight into why they find something logical,
interesting, occasionally brilliant but often irrelevant. The key to this conundrum of consumer lovely, irresistible or just plain better. But ordinarily
However, if you ask the customer (or even better sovereignty is when and how to raise the we can’t just look or ask for the consumer
show a new product or let them try a new service) question. Recently Seymourpowell was insight. Instead we need to tease it out from
you will be able to learn how they perceive it, asked to pitch on some innovation work many different angles. Why? Because
for an international brewery company. The consumers don’t necessarily know what is
use it and even value it. In that sense the
pitch process took a familiar routine: a nice possible and what will be lovely until they see
customer is ultimately always right, because if
phone call out of the blue, an invitation to pitch, it, touch it, experience it for themselves. As
Confidential. © Seymour Powell Limited, 2012. All rights reserved.

3. and providing us with insights as to how to
improve product and service experience. But
it isn’t the only path to innovation. And if all you
base your innovation strategy on is consumer
insights or responses to logical questions,
your pipeline is not going to be as robust as it
should be. To quote an old adage ‘If your only
tool is a hammer, every problem looks like a nail’.
So what’s the answer - how should you innovate?
Brands need to explore various paths before
finding key routes to a differentiated, better
and commercially viable solution. It’s not just
about opportunities, it’s also about restrictions
– perversely, these too can be fundamental to
innovation. Another old adage, ‘War is the
mother of invention’ is also quite apt. Invention
or innovation can often be spawned from adversity
or restriction. Just look at the proliferation of
Japanese low-malt beers like Suntory Pilsner.
These were not born of a consumer insight ‘I
would really like less malt in my beer’ or ‘my
current beer doesn’t satisfy me anymore’ or even
the economic insight that ‘people want to pay
the classic Steve Jobs quote goes, ‘It isn’t test) for potential appeal. We try to prove a less for beer’. Instead the real trigger was quite
the consumer’s job to know what they want.’ concept by asking a lot of rational questions to a mundane financial fact: Japan has a tax on
human beings (who are fundamentally irrational) malt and malt content. Companies trying to find
Sometimes you need to show people what the a loophole to pay less tax decided to try producing
and then, unsurprisingly, a lot of these ideas fail.
future might look, smell, feel, taste and sound a cheaper beer (that delivers more profit) which
like so they can give a more natural and realistic Subsequently a lot of people on the client side was a commercial success, resulting in a whole
response. The ‘Holy Grail of the Consumer change roles internally and their senior directors new beer category.
Insight’ seems to have overshadowed all other question why they never seem to get any break-
paths to innovation. It has become a panacea through innovations: ‘Where’s my iPod, my If you’re going to start an innovation project
for all innovation ills and we believe it’s time for Nespresso, my Actimel?’ The answer is those you should be considering all of these paths:
a different, more flexible and informed approach kinds of innovations often don’t come from
1. CONSUMER INSIGHTS
to be taken. customer insights. Consumers might not even
Do some ethnographic research into what
have known they wanted them until the products
The standard methodology these days appears people actually do, not just what they say they
were gleaming on shelf.
to be to do some consumer observation, co- do. How are people really using your product
creation, some trends and a workshop to Don’t get me wrong, we love consumer insight or service? Where are there points of pain and
develop some ‘innovation platforms’. These and we believe in it totally. We have a fantastic, pleasure in the purchase experience, opening
platforms are then distilled down into two-line world-class ethnography team who are and closing the product, right through to
concept territories and screened (on-line quant dedicated to observing real consumer behaviour disposing of empty packaging? Base this
Confidential. © Seymour Powell Limited, 2012. All rights reserved.

4. ‘If your
on observed behaviour, not memory of a predicted direction back, where do we need to
rationalised behaviour. (Don’t do groups be moving? What is your plan B?
yet, they won’t help you see a future, just
understand the present or past)
only tool is 7. TECHNICAL AUDIT
What new formats, innovations and
a hammer
1. TRENDS manufacturing techniques can your R&D and
What are the key social, lifestyle, technological production teams deliver today? What’s on the
and demographic trends that are relevant to horizon? What are the technical constraints and
your brand? How should or could your brand
take advantage of these? What is the design
language that will stay true to your brand, and
...every payback profile? What is in scope and what will
require a slightly different business model?
move it forward relevantly?
problem 8. BRAND
What does your brand mean currently? Where
looks like
3. COMPETITOR ACTIVITY does it need to move to maintain or improve
Analyse what the competitive landscape looks saliency, and what can we do to ensure that
like; what are the different games the competition our brand reality or experience is true to our
are playing and why? How does this affect you
strategically? Have you got some clear space for
credible, profitable differentiation? Do you want
a nail!’ brand promise?
What’s more, you need to look down all these
paths at the same time and bring home all the
to be a fast-follower?
nuggets of truth and opportunity that you can
4. STAKEHOLDER PERSPECTIVES find. The spark of brilliance that eventually leads
Who is funding this project, and what does to your Next Big Thing™ might come from any
success look like? What has worked and one of them. You then need to share these with
what hasn’t worked in the past - and why? other people from inside and outside your
Customers and suppliers are stakeholders too: business who can also look at your brand
what do they want, what can they contribute? and the opportunities from different angles.
You need to share the opportunities and
5. SUSTAINABILITY restrictions and build some hypothetical
We all know we need to get more from less, solutions that buyers can respond to. You need
but what does sustainability really mean in your to get real: quickly build prototypes, wire frames,
sector and region? Look at adjacencies, who service scenarios and interfaces so potential
is doing it well? Sustainability can be a positive buyers can experience what you’re offering as
point of difference, not just corporate governance realistically as possible when you test it. You
compliance. But it definitely makes most impact need consumers to respond in as natural a
when woven in at the start of the innovation way as possible to give you the confidence to
process, rather than tagged on at the end as proceed and the directions to improve. And
an after-thought! yes, this takes time, effort and budget…and
no this probably isn’t achievable in a two-line
6. LEGISLATIVE
summary on an internet-based quant screener.
What can or can’t you do? What opportunities
does a shifting regulatory environment Some of these innovation paths will be more
provide? Look laterally; work from the fruitful and important to you than others so no
Confidential. © Seymour Powell Limited, 2012. All rights reserved.

5. two companies or projects are the same. So if The route to successful brand innovation has Ed Hebblethwaite
an innovation company comes to you and says many paths and consumer insights certainly Director of Strategy at Seymourpowell
‘It’s all about consumer insight or consumer play their part. Consumers and their insights Ed is a highly experienced planner, having worked
in the industry for over 20 years, including stints as
centric design or business modelling or may or may not be the most crucial trigger to planning director at Interbrand, Fitch, Identica and
technology’ at least you know they’ve got launching a new service or product. But let’s VCCP. His projects range across a broad spectrum
part of the answer. But equally you know you’ll not limit ourselves into thinking a positive brand of disciplines – advertising, direct marketing, graphic
design, retail, corporate and product design – and his
need to look elsewhere for the rest of the shift and a healthy profit increase always has drive is to use new ideas and stimuli to unlock the
questions, the answers and even ultimately, to start from the same place. potential of brands. Think...the agency he founded
the real blessed consumer insight. in 2003, was sold to Seymourpowell’s (then) parent
To find out more please contact: company Loewy in 2006. He is a vboard director at
Tim Duncan – tim.duncan@seymourpowell.com Seymourpowell, heading up Seymourpowell Strategy,
the consultancy’s trends, ethnography and strategy unit.
Confidential. © Seymour Powell Limited, 2012. All rights reserved.