The Product Innovation Guide of 2024 (+ tools I recommend)

Innovation isn't just a competitive edge — it's a survival strategy. 

Companies ranked in the top quarter for innovation generate 2.4 times higher revenue growth than those in the bottom quarter, as highlighted by a 2023 Boston Consulting Group survey. 

These statistics reveal a critical truth: cutting-edge products aren't the exception — they're the rule. An innovative product is one that introduces significant improvements in functionality, design, user experience, or technology, setting new standards and often disrupting existing markets.

But every year 30,000 new products are introduced and 95 percent fail. This trend reveals that businesses that fail to prioritize innovation risk becoming obsolete, while those that embrace it have the opportunity to lead the market and shape the future (and who doesn’t want that?).

In this article, we'll explore the difference between cutting-edge innovation research and traditional product testing, best practices for developing products in the innovation age as well as solutions to help you create groundbreaking products people love.  

Traditionally, companies focused on making small, incremental improvements and spent a lot of time in extensive testing phases, like in-person focus groups, which was typically slow and quite costly. 

Nowadays, businesses use agile methodologies, online research platforms and rapid prototyping to quickly iterate and improve products based on real-time feedback from their target audience. This more flexible and fast-paced approach helps them respond swiftly to market changes and meet consumer demands more effectively. 

In fact, a PwC report found that companies known for high innovation are 3.6 times more likely to hit their growth targets compared to those that innovate less. 

And audiences typically respond very positively to innovative products, showing greater enthusiasm and engagement compared to conventional offerings. According to a Nielsen survey, 63% of consumers are willing to pay a premium for products they perceive as innovative. Which makes sense, as most of these products naturally capture attention by offering new solutions and unique experiences that address unmet consumer needs.

If you’re looking to start creating game-changing product innovation, there are five best practices to keep top of mind. Here, we’ll talk through each and give examples of solutions that can help you tackle specific areas. 

1. Gather consumer feedback

Get to know your customers inside out. Talk to them, listen to their feedback, and make sure your product meets their needs like a well-tailored suit. 

Start by gathering early consumer feedback through prototype or early-stage testing and user trials to validate assumptions, identify potential issues and make informed decisions early on in the development process.

💡Zappi tip: It’s important you begin with the consumer at the start of every innovation journey. Using screening tools can offer quick reads into your target consumer to help gauge whether an initial idea is worth pursuing.    

I recommend this idea screening tool to start, which will help you survey consumers on your earliest stage ideas before too much time and money has been invested — bringing your best ideas to the forefront from the get-go. 

Zappi’s idea screening tool allows you to run fast, platform-based research that helps you uncover which initial product ideas, designs, flavors, logos or even taglines are worth moving forward, with results in as little as five hours.

Brands like McDonald’s have found great success using this early-stage screening solution to identify two McFlurry flavors that would most appeal to consumers and meet company goals.

Zappi’s idea screening solution helped them to prioritize the right ideas from the start with early testing and gain context to understand which McFlurry concepts met specific consumer needs.

At McDonald’s, Prioritize It [screening tool] has been implemented as a ‘must do’ before an idea can be advanced into development.

- Amanda Harvey, Manager, Front-End Innovation Innovation Consumer Insights, McDonald's

By conducting this research with Zappi’s screening solution, McDonald’s insights team was able to give stakeholders rich but concise detail on each idea and offer recommendations on the two flavors that would most successfully achieve company goals.

2. Embrace agile methodologies 

Today, you have to be ready to pivot on a dime. Agile methods keep you nimble, so you can adjust to changes in the market and keep your product in tune with what your customers want.

That’s why you need to embrace agile processes to enable rapid iteration and flexibility based on feedback. This approach allows for quick adaptation to changing market dynamics and ensures that the product remains aligned with evolving customer needs.

💡Zappi tip: There are so many new technologies out there and even solutions that have greatly improved since the age of traditional research, such as Zappi’s idea screening and heat-mapping pack testing solutions, so don’t be hesitant. Reach out and grab what the new innovation age has to offer!

3. Foster cross-functional collaboration 

Foster collaboration among diverse teams to integrate varied perspectives and expertise. By breaking down silos and encouraging open communication, teams can leverage collective strengths to drive innovation and overcome challenges.

💡Zappi tip: Break down those office walls! If you aren’t already, encourage things like interdepartmental communication by holding regular cross-functional meetings to share insights and progress. Collaboration between different teams brings fresh perspectives and skills to the table, helping you tackle challenges and innovate like never before. 

4. Allow for continuous learning and improvement 

Think of it as a journey, not a destination. Take the time to reflect and research what's working and what isn't, so you can keep improving and growing as a team.

Regular research, retrospectives and knowledge-sharing sessions enable teams to refine processes and learn from past experiences.

💡Zappi tip: Once you’ve screened your initial ideas into a more developed concept, it can be helpful to run more research on what you’re planning to move forward with to see opportunities for optimization. 

Zappi offers an excellent concept testing solution that helps you identify the concepts with the highest potential and shape them to maximize commercial success. 

Zappi’s concept test solutions help you survey your target consumer so you have a better understanding of what they like or don’t like about your product concept, where you can improve, and what they prefer — with results back in your hands in as little as 4 hours.

Zappi’s concept test solutions help you survey your target consumer so you have a better understanding of what they like or don’t like about your product concept, where you can improve, and what they prefer — with results back in your hands in as little as 4 hours.

The concept classification framework will even give you the trial and breakthrough potential of your concept, telling you whether it’s a concept to seed and grow, scale and sustain, prioritize, deprioritize, or if it’s emergent. 

Brands like Walker’s found great success using Zappi’s concept test solution Prioritize It to create their hit product Wotsits Giants. 

By identifying new innovation potential and opportunities for optimization, they were able to produce a new innovation that contributed to growing the brand by 45% and gain significant buzz on X (Twitter) without any ad spend. 

5. Keep your ear to the ground

Finally, it’s important to stay informed about market trends and conduct thorough research to identify opportunities and anticipate shifts in consumer preferences. This proactive approach helps in identifying emerging trends early and staying ahead of the competition.

💡Zappi tip: As we mentioned before, it’s a journey to innovate. Therefore, it can be beneficial to test specific pieces of your innovation, such as the color of the packaging or product name, to identify any trends or opportunities.  

Zappi offers a great solution in its Pack Research tool that helps you find out how to create packaging that stands out on shelf using heat mapping, consumer verbatims, emotional responses and more.  

Zappi’s Pack Research solution allows you to identify the best designs early on with a holistic assessment of in-market success, get rich consumer feedback and clear guidance on what to improve and why with a 360 assessment of the package and even compare your packaging against competitor packages. 

Incorporating these best practices into your product development process can significantly boost your chances of success. By putting customers first, staying agile, fostering cross-department collaboration, embracing continuous learning, and keeping up with market trends and early consumer feedback, you can create innovative products that truly stand out. 

Innovation isn't just an option—it's a must-have. By prioritizing customer needs and prioritizing an innovative culture, businesses can thrive. 

As you move forward, one thing remains certain: Innovation isn't just a tactic; it's the driving force of progress. So embrace these best practices and push the boundaries of what you can create!