Many analysts predict a gloom and doom scenario. They believe that JCP’s products are too generic and homogeneous for customers to buy the new pricing concept and that JCP lacks the value proposition and true differentiation required to make an impact with this. However, this and other changes Johnson has suggested are based on prior experiences and insight from similar experiments at Target and Apple. The market may not be satisfied with the short-term loss in customer base and early drop in revenue, but the goal is not to play market gains for the daily trader. The goal is to rebrand the company with innovative ideas based on experience and followed by measurable action. JCP now has a new logo, new pricing, new store layout, new products, and new marketing campaigns—all in two months! These are bold moves, backed by insightful analysis and an understanding of consumer behavior.
Bold Experimentation with Continuous Inspection
Having the guts to explore new business models or perform new experiments is a compelling argument these days. Technological innovations and rapid globalization of the economy have made it easier to conduct quick trials (A/B Testing, Usability Testing, etc.) to do customer validation of new ideas and concepts, early and often. Without a few bold changes, one can never truly find out what works and what doesn't. However, not having the organizational intelligence to comprehend properly the outputs from these trials and take appropriate actions could have serious consequences to the bottom line. There is an urgent need for product managers to balance the bold experiments with key insights into market trends and customer needs as they cater to varied business and customer demands. As we continue to operate in a global, hyper-competitive world, it’s imperative that we balance our experiments with the insight to make sense of them.