MISTAKE #29: You ignore the laws of diminishing innovation
Computer graphs went through explosive improvement as gaming systems evolved from the early '90s 2D experience of Nintendo and Super Mario Bros to the 21st century's experience of amazingly realistic, internet-connected 3D games built on exceptional physics engines.
But few games in 2015 will focus on graphics as the primary point of difference or reason to buy because further improvements deliver limited incremental benefit.
It was easy to see that the iPhone and iPad were not just innovative products, but revolutionary when they launched. The retina display was a significant improvement that came a few years later.
It is now much harder to make a convincing argument that trimming off a few more millimeters of thickness, slightly improving the camera, and adding another hour of battery life can also be labeled as innovation. And it is harder for shoppers to use these changes to justify the purchase of the newest model.
Both dedicated gaming consoles, high-end games, and Apple are experiencing the laws of diminishing innovation as sales are starting to decline.
The current iPhone and iPad and PlayStation 3 and Xbox are certainly the best each company has ever offered for sale, but the marginal improvement from prior models is becoming less and less.
BETTER MIGHT NOT BE GOOD ENOUGH
The same problem occurs when your product has gotten old and you start talking about a packaging refresh along with a new scent or flavor or color as meaningful innovation.
While Apple products are most likely much more expensive and have a much longer purchase cycle than your product, the same dynamics play out. These incremental changes aren’t necessarily a compelling reason to purchase.
It is important to remember that different isn’t necessarily better. And better isn’t necessarily enough to prompt a purchase.
Apple is addressing this by going beyond the hardware of each product and focusing on the user experience. They have gone beyond focusing on what they put in a box.
While few categories have the versatility of smartphones or tablets, there are several lessons that can be learned from how Apple is handling its maturing market:
Consider new usage occasions: Apple Pay is potentially a huge new source of revenue for Apple. The combination of a simple user experience, hacker-proof security, and using its size to develop retailer support has allowed Apple to begin disrupting yet another industry. Apple has found another way to use its product to address dissatisfaction with an existing service. The HealthKit is potentially the start of another disruption to another industry.
What related services or habits or unmet needs could your product be positioned to address even if they don’t directly tie to the features of your product?
Deliver to the point that competitive superiority claims no longer matter: The Apple Retina display served this purpose as a category killer for smaller displays. Other mobile device companies now have a much more difficult time convincing shoppers of the special value of their higher resolution displays or that it is a reason to buy their product over an Apple product. The Retina branding of Apple’s display has helped further reinforce the perception of Apple’s superiority despite competitive products offering even higher pixel density. And it has allowed Apple to get shoppers to focus on other product aspects.
How can you do a better job branding or owning perceived superiority related to core product features in your category? Could you make a competitive product’s superiority claims irrelevant?
Focus on the overall user experience: Apple’s ‘walled garden’ closed ecosystem that ensures it can optimize both the hardware and software has been a key element to its success. Launching new operating systems and creating features like continuity are designed to further reinforce the value of this model and provide more tangible evidence to users that they want to continue living in Apple’s world. Because very few products are used in complete isolation, you almost certainly have opportunities to find ways to improve the overall user experience that surrounds your product.
Remember that great content can be as compelling of a reason to buy as actual product features. And how the user experience is shaped or how expectations are set can dramatically change the perception of the experience...even when there really isn't a difference.
Make a new feature matter: It should be no surprise that iPhones and iPads have been gateway products to get more people to buy Mac computers. Knowing this, Apple has been busy creating new features that reinforce the synergy of Apple product ownership. Through the introduction of numerous Continuity features like Handoff, Instant Hotspots, and AirDrop, Apple is creating new reasons to buy a Mac. When so many other aspects are fairly commoditized across computer brands, enough of these little features can add up to tipping more purchase decisions toward the Mac.
What new or different features can you elevate into influencing the overall purchase decision? Can you make a variety of small features matter as much as one big feature?
STOP INCHING INCREMENTALISM ALONG
Lots of categories face this issue of diminishing innovation. Unfortunately, many of the companies in these categories won’t acknowledge it.
They would rather utilize a very generous definition for the term ‘innovation’ and push for more incremental improvements on the same features as long as possible.
They make the paper substrate 2% stronger
They add another blade to the razor's head
They create yet another version of mint-flavored toothpaste
If this appears to be the playbook in your category, consider how you can change the game. What happens when you leapfrog the competition by capturing new consumption occasions, silencing the superiority claims of others, creating a completely new (and improved!) experience that actually is, or elevates the importance of a new feature?