The big takeaway<\/b><\/p>\n
Your customers will respond to offerings that are genuinely useful and helpful to them, even in an economic downturn. The key is\u00a0investing\u00a0in innovation that adds value, rather than chasing what\u2019s trendy.<\/span><\/p>\n Need proof?\u00a0<\/b><\/p>\n Beauty giant L\u2019Oreal has invested more in research and development every year, even in tough times. That approach has helped the company\u00a0transform into a tech-driven beauty innovator, and\u00a0outperform the global beauty market.\u00a0<\/span><\/p>\n \u201cWhen there are challenges, that\u2019s the most important time to innovate, because that\u2019s when customers expect new, value-added experiences. They have a different view of normal and how to use your products and services,\u201d said Guive Balooch, global VP of L\u2019Oreal\u2019s technology incubator.\u00a0<\/span><\/p>\n Why now?<\/b><\/p>\n Here\u2019s how you can succeed by focusing intently on customer needs, useful innovation, and driving quick wins.\u00a0<\/span><\/p>\n Businesses should invest in technology that actually fills a customer need<\/b><\/p>\n It sounds simple, but knowing what your customers need is a key to delivering value.\u00a0<\/span><\/p>\n Case in point is CarMax, the nation\u2019s largest used car retailer and the original disruptor of the used car industry. The challenge for CarMax now is that there are a number of competitors who are showing up and trying to disrupt the industry in their own ways, according to Patrick George, editorial director, The Drive.\u00a0<\/span><\/p>\n To stay ahead, continue disrupting the market, and deliver real value to its customers, Carmax talked to customers to discover what they needed. The answer: they need to envision themselves, and their lives, in the car without actually being in the car.\u00a0<\/span><\/p>\n The digital merchandising team set about\u00a0creating an immersive experience. They photographed cars from all interior angles (with suitcases, kayaks, drywall, mannequins, and more) to illustrate cargo and passenger capacity. They also added drag-and-drop tabs so customers could better understand the car\u2019s features and how they work.\u00a0<\/span><\/p>\n Get executive buy-in<\/b><\/p>\n L\u2019Oreal\u2019s Balooch\u00a0said\u00a0he\u2019s lucky to have the support of senior leaders in funding the incubator\u2019s ideas. How can you gain that kind of support?\u00a0<\/span><\/p>\n \u201cThe best way to get executives on board is to test [the technology] and show them it actually works,\u201d he said. \u201cThe strategy should come after you make the technology happen.\u201d<\/span><\/p>\n For those not as lucky as Balooch, Gartner in December 2022 laid out\u00a0four steps for building a solid business case:\u00a0<\/span><\/p>\n Think like an entrepreneur<\/b><\/p>\n Balooch stressed the importance of maintaining a beginner\u2019s mindset, even in a company as big and sprawling as L\u2019Oreal. Don\u2019t fall into the trap of believing an idea won\u2019t work because you\u2019ve already tried it and failed.<\/span><\/p>\n For example, its\u00a0Rouge Sur Mesure, an app-powered device that uses AI to enable users to create their own custom lipstick shades. The system uses three creation modes, including Shade Match which matches a lipstick shade to a photo of any uploaded photo item, and\u00a0Shade Stylist, which uses an algorithm to suggest coordinating lipstick colors based on your outfit.\u00a0<\/span><\/p>\n Balooch said the company tried to bring it to market a few years ago, but augmented reality and market trends were not mature enough to support it. Rather than shelve the project entirely, L\u2019Oreal waited for the next iteration of technology and until macro trends indicated demand. It\u2019s been a success,\u00a0described\u00a0by reviewers as \u201ca whole new chapter in personalized beauty\u201d and \u201cclever and functional.\u201d\u00a0\u00a0<\/span><\/p>\n \u201cThat reminds me to have a beginner\u2019s mindset,\u201d said Balooch.\u00a0<\/span><\/p>\n Invest in technology that delivers quick wins<\/b><\/p>\n CarMax\u2019s rich car content is an example of something relatively simple, but high-value.\u00a0<\/span><\/p>\n \u201cWe don\u2019t want to over-engineer something that ultimately provides no value,\u201d said Ann Yauger, AVP of product management. \u201cWe figure out the cheapest minimum viable product that\u2019s as lean as possible.\u201d\u00a0<\/span><\/p>\n The team gave itself three months to add this content to 15% of its cars, after which they tested customer engagement levels for two months. They found that pages with the new content led to an increase in sales leads.\u00a0<\/span><\/p>\n \u201cWe are focused on bringing new experiences to market fast,\u201d said Jim Lyski, executive vice president and Chief Marketing Officer. \u201cWe are on the cusp of changing the industry again, raising the bar of what it takes to compete in this industry.\u201d\u00a0<\/span><\/p>\n While the company invests in long-term projects, it is constantly experimenting with shorter-term initiatives that drive value more quickly, which it says gives it a higher chance of success.\u00a0<\/span><\/p>\n Don\u2019t become obsessed with goals that will take years to achieve, if ever. Stay flexible by constantly experimenting for short-term wins. The trick, as CarMax and L\u2019Oreal have found, is to identify areas that deliver true value.\u00a0<\/span><\/p>\n \u201cThere\u2019s so much we can do, even if small, to bring value to people\u2019s lives,\u201d said Balooch.\u00a0<\/span><\/p>\n <\/p>\n Blog sourced from Salesforce.<\/em>[\/vc_column_text][\/vc_column][\/vc_row][vc_row rt_row_background_width=”default” rt_row_style=”default-style” rt_row_borders=”” rt_row_paddings=”true” rt_bg_effect=”classic” rt_bg_image_repeat=”repeat” rt_bg_size=”cover” rt_bg_position=”right top” rt_bg_attachment=”scroll” rt_bg_video_format=”self-hosted”][vc_column rt_wrp_col_paddings=”false” rt_border_top=”” rt_border_bottom=”” rt_border_left=”” rt_border_right=”” rt_border_top_mobile=”” rt_border_bottom_mobile=”” rt_border_left_mobile=”” rt_border_right_mobile=”” rt_bg_image_repeat=”repeat” rt_bg_size=”auto auto” rt_bg_position=”right top” rt_bg_attachment=”scroll” rt_padding_top=”30px” rt_padding_bottom=”30px” rt_padding_left=”30px” rt_padding_right=”30px” rt_bg_color=”#0099df”][vc_column_text]\n\n
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