August 22, 2014 Leave a comment
Our research shows that consumers are most willing to try new offerings from Advantage (rental cars), Sony (software), Fujitsu (major appliances), Apple (software), Audi (auto dealership). Lexus (auto dealership), QVC (retailer), Foot Locker (retailer), and Activision (software).
Consumers are least willing to try new offerings from HSBC (bank), Fifth Third (bank),Time Warner (Internet service and TV service), Cox Communications (Internet service and TV service), Charter Communications (TV service), Citibank (bank and credit cards), Comcast (TV service), Sun Trust Bank (bank), and Capital One (bank).
Which group of companies do you think will fare better if they face innovative competitors?
As part of our ongoing research, we collect data on different types of loyalty. One of the areas we examine is a concept called Innovation Equity, which is the willingness of customers to try a company’s new products and services. You earn (or lose) innovation equity over time based on how customers view your company and its offerings.
Most people don’t talk about this kind of loyalty, but it’s very important. If your customers aren’t willing to try new things, then it’s very hard to expand your business into new areas or to keep up with innovative competitors. To measure Innovation Equity, we created the Temkin Innovation Equity (TIE) Index. Here’s how we calculate the TIE Index:
- We ask customers this question: If <COMPANY> announced a new product or service, how likely would you be to try it right away?
- They select answers between 1 (Extremely unlikely) and 7 (Extremely likely).
- The TIE Index for a company is calculated as the percentage of customers who chose 6 or 7 minus the percentage who chose 1 , 2, or 3.
We calculated the TIE Index for 254 companies across 19 industries based on a survey of 10,000 U.S. consumers in Q1 2014. Here’s some of what we found:
- Major appliance, hotels, and software companies have the highest average TIE Index
- TV service providers, Internet service providers, and banks have the lowest average TIE Index
- Advantage, USAA, MetroPCS, and QVC most outpace their industry average
- RadioShack, Travelers, HSBC, and Fifth Third fall the furthest behind their industry average
Purchase 2014 TIE Index Dataset for $195Download this excel file to see what’s in the dataset
The bottom line: Start building up your Innovation Equity!