Why 3 in 4 New Products Fail
Surveys may vary. Some have found as many as nine out of ten new products fail. This current one from a “pricing consulting giant” revels in the headline 72 percent of all new products flop. What they all shine a light on though, is how few new product launches succeed.
Reasons are manifold. In this latest case, as the HBR editor mentions herself, there’s hardly shock in a price consultant suggesting pricing decisions are the core component;
Not surprisingly, they advocate bringing marketing and monetizing concerns much further forward in the R&D process.
They feel that companies should bring price into the earliest of stages of product design, hold price as central throughout development and ensure each price element remains in sync right through to launch.
Swap in the word ‘sales’ for the ‘price’ here and you can easily say the same thing about what really makes a difference between hits and misses.
Anything that reinforces the message that new products become winners dependent upon how early those outside the labs bubble get involved – especially sales people and beyond, right into clients – is to be welcomed.
There are many ways you can help ensure your latest ware populates the happy place inside the glorious 28%. Early Sales exposure should definitely be part of your plan. Now, what precise shape that exposure should take, well, that’s a whole new conversation…