The Innovation Choice Paradox

There are many ways in which to innovate, and many levels of innovation and subsequent impact. This can result in the paradox of choice, or not knowing where to start due to having too many options.

A simple way to approach it can be to think of innovation types in terms of ‘whos’, ‘whats’ and ‘hows’. 

‘Whos’ are the target market. Who are your customers now, and who should they be? What are the opportunities to acquire new customers, and how might they look different demographically to your current customer base?

‘Whats’ are the offers that your current and potential customers experience and desire. These can range from the more micro, such as the types of food and beverage offered, to the macro such as venue concepts. Venue concepts can extend beyond food and beverage environments to include leisure-based facilities ranging from games and recreation to playgrounds, entertainment and contemporary function and event areas — again based on the target audiences and their specific needs.

‘Hows’ are the ways in which you go to market. How can you improve your customers’ experience? This may be operational improvements via technology, or enhancing the mode of service model, through to changing the club’s customer service culture, ambience and/or interior design and layout.
Answering the above and understanding the areas of greatest opportunity often requires research with both your current and your potential customer segments. This is because we typically find that a club’s current customers will focus on what they don’t like about the venue, and operational elements requiring modification. In contrast, potential customers will indicate where the most appealing and likely traffic-driving offers lie.

To paraphrase a recent Oscar-winning film, you can’t innovate everything, everywhere, all at once. So, how do you decide where innovation is most required?

A good place to start is your strategic plan. What are the longer-term goals of the business? These may include increasing footfall and visitation frequency, boosting spend per customer or transaction, or increasing the number of services a customer interacts with in a visit. If you can achieve these goals, will the value of your business be greater than what it is today? Where are the priorities for your human and financial capital to drive growth and an improved EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation)?

The goals of your strategic plan, combined with research into the needs and desires of current and potential customers, should help provide a roadmap for where innovation is most required and will have the most impact.

Begin with the end in mind, as the adage goes¹.

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_{1. Stephen R Covey, ‘The 7 Habits of Highly Effective People’.}