July 2014 – Can Customers Like You Too Much?
Can Customers Like You Too Much?
Not all customers are good for your company. There is a specific class of customers that could actually signal that a new product will fail.
A recent study from the Kellogg School of Management at Northwestern University describes these “harbingers of failure”. These customers tend to have unique tastes, they buy your product when no one else does, and they buy it repeatedly. But because this very small segment buys your product when mainstream customers do not, you will probably not sell enough to sustain the product.
Check that your new innovations, whether products or services, appeal to customer segments that will actually help you meet your business goals, not just give you false confidence.