Report: Innovation Equity Quotient

We just published a new Temkin Group report, Innovation Equity Quotient. Here’s the executive summary:

Companies focus on innovating new products and services, but how willing are consumers to accept these offerings? The Innovation Equity Quotient measures the readiness of consumers to try something new from a company. Led by Hershey and Kraft Foods, six consumer packaged goods (CPG) firms came out at the top of the ratings. In some head-to-head comparisons, Google leads technology companies, Coke beats Pepsi, and Walgreen’s beats CVS. We also examined the data across age, income, gender, and ethnic groups. Income levels appear to have the least impact on the Innovation Equity Quotient, but there were considerable gaps in the other areas. Nintendo and Google have the largest age gaps, Revlon and L’Oreal have the largest gender gaps, Apple has the largest income gap, and Nike has the largest ethnicity gap.

Download report for $195

To understand this demand-side component of innovation, we created the Innovation Equity Quotient (IEQ) that gauges consumers’ openness to trying new products and services. IEQ is based on a simple question: “If <COMPANY> announced a new product or service, how likely would you be try it right away?” We asked this question to 5,000 US consumers and calculated IEQ for Forbes 50 most valuable brands. Here’s how they fared:

The report includes data charts that highlight the 25 brands with the largest IEQ gaps across age groups, ethnic groups, gender, and income levels.

Download report for $195

The bottom line: Innovation is more successful when customers want to try new offerings

Congrats To Groundswell Award Winners

For those of you who don’t know, Forrester analysts Josh Bernoff and Charlene Li (she’s no longer with Forrester) published a great book on social computing called Groundswell. In conjunction with that book, Forrester created the Groundswell Awards to recognize firms that accomplish business goals with social applications. Well, the 2008 award winners were just announced and here are this year’s winners across eight categories:

  • Embracing: MyStarbucksIdea.com by Starbucks
  • Energizing: Hershey’s Bliss House Party by House Party
  • Listening: Mattel’s “The Playground” Community by Communispace
  • Managing: Borderless Workplace by Accenture
  • Social Impact: Artshare, Click Exposition, and Posse by Brooklyn Museum
  • Supporting: Nerd Network by National Instruments
  • Talking: Young & Free Alberta by Common Wealth Credit Union
  • Company transformation: Intuit

My take: First of all, congratulations to all of the winners! My research into voice of the customer best practices has pushed me to increasingly look at social technologies. While many of these activities are currently isolated inside of companies and are considered standalone “social computing” activities, I see them getting blended into more comprehensive voice of the customer (VoC) and voice of the employee (VoE) programs. This will become even more important as firms adopt the new management imperative to make listening an enterprisewide skill

The bottom line: Companies should resist being anti-social.

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