Innovate with Your Customers: The Key to Continuous Improvement and Market Leadership

Key Takeaways

• Tailor your product with the customers’ needs: Customer feedback can be used to tailor products and stay competitive
• Enhanced innovation and efficiency: Involving consumers early in the innovation journey can optimise resource allocation
• Keeping a positive perception for your brand: Customer-centric innovation builds consumer trust and loyalty

‍

Innovation isn't just an option—it's a necessity in the modern business landscape today. Among the many ways to innovate, co-creating with customers one of the most effective ways to develop an innovative product.

Co-creation, in the business context, refers to an activity where customers are included in the ideation, design, and/or development process of products. 

There are varying levels of co-creation, from listening to your consumers to brainstorming alongside them. In this three-part series, we’ll show you the three tiers of co-creation, each with increasing levels of interaction between the company and their customers.

1. Level 1: Customer-centric innovation
   Companies collect customer feedback and refine products based on the feedback received. Customers play a passive role in overall product development.
   ‍
2. Level 2: Prototype refinement
   Companies engage customers to improve product prototypes via beta testing, etc. Customers’ early feedback shape the product during its development phase, though initial ideation still falls primarily on the shoulders of the company.
   ‍
3. Level 3: Direct customer involvement
   Companies directly collaborate with customers from the start of the product development process. This means customers work alongside company staff to ideate, design and develop the product through brainstorming and hands-on workshops.

This article focuses on Level 1: Customer-centric innovation and showcases how Unilever utilises customer-centric innovation to develop its products, and the benefits it reaps from working with its customers.

Utilising customer-centric innovation, companies like Unilever seek feedback directly from consumers to develop products that meet their needs. What might we learn from Unilever to become a forward-thinking, customer-centric company?

Unilever’s customer-centric innovation approach

Unilever, known for its vast product range across personal care and food, has successfully embedded customer-centric innovation into its business. By consistently gathering consumer insights through various feedback channels, Unilever tailors its products to meet evolving customer demands.

Here’s how:

• Crowd sourcing platforms: Platform to gather consumer ideas and feedback, shaping new products and services based on real consumer needs.‍
• The Unilever Foundry: Programme connects Unilever brands with startups to create new products and services, exploring innovative solutions and new business models.

‍

Example of Cif Eco Refill: A Crowdsourcing-Driven Innovation for Sustainability‍

Unilever identified the growing consumer demand for more sustainable and refillable options through surveys and reports. Surveys conducted in the UK indicated that 62% of consumers found reusing packaging more important than recycling, and 83% wanted better access to refillable products. This reflects a strong consumer preference for reducing plastic waste and promoting sustainability.

In response, Unilever launched the Cif Eco Refill, which focuses on reducing plastic use by:‍

• Refill Existing Bottles: Consumers can reuse their original Cif spray bottles by refilling them with a concentrated version of Cif and then diluting it with water
• Concentrated Formula in Smaller Sachets: Refills come in ultra-concentrated sachets, which use 75% less plastic compared to traditional packaging

‍

These initiatives showcase the core pillars of Unilever's agile and focused innovation process. By addressing both the need to reuse bottles and reduce plastic through the use of concentrated refills, Unilever used insights gained to innovate and deliver a more sustainable and cost-saving products.

‍

‍Why you need customer-centric innovation:

• Sustainable Success: The integration of consumer feedback not only drives innovation but also ensures long-term success by building a product portfolio that meets evolving consumer demands
  ‍
• Enhancing Consumer Perception: Customer-centric innovation changes consumer perception by fostering a sense of involvement and responsiveness. When customers see their feedback implemented, it strengthens their trust and loyalty towards the brand
  ‍
• Staying Ahead of the Curve: By continuously innovating based on consumer insights, businesses ensure they remains at the forefront of the industry, capable of quickly adapting to market change

Customer-centric innovation is key to driving innovation and strengthening your brand. By listening to your customers and acting on their insights, you will be able to build stronger relationships, boost loyalty, and create solutions that truly meet their needs. This approach not only enhances satisfaction but also positions your business for long-term success. Look out for our next article as we explore Level 2: Product refinement!

‍

At Binomial Consulting, we specialize in strategies that help companies utilise customer feedback to innovate and drive sustainable, long-term growth—just like Unilever’s success stories. Work with us to shape innovative solutions that truly resonate with your market, reduce waste, and build a future-ready brand. Contact Binomial today to redefine innovation together.

Source: Unilever Consumer Customer centric innovation, CIF Customer centric innovation, Unilever newsletter, Unilever Foundry, Unilever crowdsourcing platform