The 4R’s innovation framework for post pandemic growth
As we begin to emerge from the pandemic, we've created a simple 4R’s customer-centric framework to help teams optimise their innovation strategies and prioritise their efforts.
The 4R's framework is a customer-centric conversation starter for project teams.
Using current customer insights and analytics, we frame questions around where you are and the actions you need to take —short to medium-term—to be relevant to changing consumer attitudes and behaviours.
The left axis represents how satisfied consumers are—or likely to be—as sectors reopen. The axis along the bottom represents the degree to which the last 12 months has reshaped consumers mindset and expectations.
Let's look at each box, in turn, to see how it works with some examples.
RAPID ACCELERATION
In this quadrant, we have initiatives that have high levels of satisfaction and alignment with current consumer mindsets. The focus of these initiatives is to expand the offer and recruit new unserved consumer segments.
For instance, we've seen the adoption of online streaming services like Netflix and Disney+ become an integral part of our lives. Many people have switched to in-home exercise routines and virtual personal trainers replacing the gym exercise class. Our shopping habits have changed, resulting in an acceleration in e-commerce, local shopping and home delivery subscription models.
The challenge for initiatives in this quadrant to maintain momentum and determine how the business model has to evolve to meet untapped demand.
RE-INVENT
In this quadrant, we have products and services which adapted to changing needs, but will evolve further to capitalise on their appeal.
For example, we've all shifted to remote interactions with our work colleagues and even virtual consultations with healthcare professionals.
Our experiences have demonstrated the benefits and efficiencies of solutions like MS Teams or Zoom to facilitate collaboration and communication, yet they have their limitations and frustrations. Consequently hybrid collaboration models will evolve, and the technologies will improve to remove frustrations and enhance user experiences.
In many consumer sectors such as personal care, health and food we’ve seen changing purchasing habits directly resulting from people being more concerned about health and wellness.
Many of these new habits and adopted products will represent growth potential which requires innovation teams to map out a growth roadmap and multi-generational pipeline of ideas.
RE-ENGAGE
In this quadrant, we have those services and experiences which have been restricted. The emphasis here is how to re-engage people with what they love to do but be mindful of the changes and enhancements customers expect.
People will want to return to normal: social interactions, out-of-home food and drink occasions, visiting entertainment, leisure and sporting venues etc.
In healthcare many services have been restricted, resulting in a backlog of patients requiring critical diagnosis and treatments.
However, people’s perception of what constitutes great service may have changed over the last 12 months. Our learned digital experiences during the pandemic have reshaped our expectations. For example, the ability to click and collect an item in 15 minutes, or book an online virtual consultation with a medical specialist the same day, will raise the game in what we expect from service providers in different sectors.
As sectors open up what needs to change to satisfy your customers?
RE-SHAPE
The focus of this quadrant is how to optimise the core business to address changes in consumer needs.
For instance, more consumers are downtrading due to economic pressures. Other consumer groups have switched to more premium offerings in areas like organics and health products. Time at home has influenced our habits and routines impacting what we buy and use in many categories such as food, personal care and beauty.
Some of these new habits we remain, and others with revert back as normal life returns.
Furthermore, with omnichannel shopping behaviour and a high street that looks different, retailers and brands need to consider how they engage shoppers with memorable experiences.
How does your core business portfolio, product line up, customer experience and assortment need to change to meet current consumer expectations?
This customer-centric framework provides focus and direction for innovation teams, to prioritise their innovation efforts.
This framework can be used in conjunction with our consumer co-creation techniques and innovation sprints to create new and improved products and services.
For more information or help to apply the 4R’s framework to your innovation projects, drop us a line. We’d love to help out.