Getting the product right
Main difference between closed and open innovation is that in open innovation customer relationship starts before product design, and in closed it starts only after. By talking to customers earlier companies can make products which match customer needs better.
Empowering customers
Open innovation a powerful sales method because it increased quantity and quality of a customer relationship, giving customer more power and access to the company. Customers will want more and more to influence product design and they will look for companies that provide them this influence.
Reducing churn
Customers’ innovation ideas can reflect smaller frustrations. These frustrations are not big enough to become a complaint but they are still an important symptom of a negative experience. Addressing them reduces churn.
Better customer understanding
When customers share their innovation ideas they are telling customers what their vision of the future is, which is one of the highest priorities for them. Customer innovation data should have equally a high priority in CRM.
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