What Is Meant By Customer Amnesia? And How Can You Avoid It In Your Business?

Customer Amnesia results in Product Fails

Customer amnesia is very common in companies today. In fact, between 70-90% of new products fail every year. Why is this?

Simple answer: they’ve forgotten how to have routine development conversations with their customers.
Companies who suffer from customer amnesia assume that they know what customers need. The finished product (based on those assumptions) is then shipped as soon as possible.
Companies often rely on technology, but the real success comes from a deep understanding of customer needs and values.

Two critical steps that can help companies to protect against new product failures are:

  1. Find out what problems they can solve for the customer before designing the product.
  2. Get early feedback on product concepts from customers by showing them initial prototypes.

Customer Centred New Product Development focuses on:

  • Finding new ways to solve customer problems.
  • Create more customer-satisfying experience
  • Finding out what customers’ problems were before designing the product or solution

The most successful companies are generally those that:

  • Differentiate themselves from others
  • Solve major customer problems
  • Offer a compelling customer value proposition
  • Engage customers and/or end-users directly

Feasibility studies are critical for all new product ideas. In fact, they are so critical that we offer a preliminary feasibility study free of charge on any NPD project.  This will highlight if additional or a tweaked market research strategy is recommended.

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It is absolutely necessary to know the customer’s needs precisely to avoid failure. The development of new products that will be launched should be conducted a feasibility study first.

This is the very first time I heard or come across of Customer Centred new Product development but I sure love what it entails. Perhaps I have encountered it before but just never knew what it was until now. Sure these concepts by definition at least are cliches but in my eyes this is what business should be. After all it is the consumers that makes it fail or succeed,

You hit the nail on the head with this one. New product development often fails due to the customer being ignored for the most part.

Before embarking on any product design, it’s prudent to get customer feedback. The customer must always be first.

A solution that does not address consumer needs is as good a no solution at all.

Piloting with a few customers during physical product development has proven to be very effective. It helps detects potential problems before the official product roll-out.

I am in total agreement with your write-up. I think every idea generation process needs to directly address customer needs.

If you create ideas and forget about the customer, the idea is bound to fail. The importance of this concept cannot be over-stressed.

I can’t count the number of new product ideas that simply flopped due to customer amnesia. You do raise a very good point.

If a business is able to prevent customer amnesia, even idea commercialisation becomes a walk in the park. The benefits are immense.

I have learned how to prioritise the ideas in my business from this.

Customer amnesia is arguably the biggest hindrance to New product development

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