What can a McDonald's thickshake teach us about customer-focused innovation? 🥤
Years ago, McDonald's embarked on a quest to boost the sales of their low-cost, high-margin thickshakes. They invested in new machines and launched a marketing campaign, but there was no increase in thickshake sales.
Perplexed, McDonald's sought the guidance of Harvard innovation guru Clayton Christensen, not content to crunch numbers, he took a customer focused approach.
Christensen's team went to McDonalds stores in the north east US to observe customers. On day 1, they observed three interesting things.
Observation 1: Half of the daily Thickshake sales happened by 8:30 AM.
Observation 2: Men overwhelmingly dominated these purchases.
Observation 3: Thickshakes were the solitary item these customers bought.
Day 2 brought enlightening interviews with these early morning customers, revealing insights that even McDonald's management didn't fathom:
🚗 They were commuters with 25-40 minute drives to work.
🍳 Breakfast wasn't on their agenda, but a 'tide-over' until their mid-morning break was.
🚗 Easy consumption on-the-go was a must.
⏳ Slow enjoyment was key; it provided companionship and couldn't be gobbled down like a banana.
McDonald's had been oblivious to this customer persona, but armed with this newfound knowledge, they pivoted their marketing strategy. The result? A jaw-dropping 700% surge in thickshake sales.
The takeaway? True innovation often begins with truly understanding your customers—their unspoken needs, routines, and desires. Christensen's approach is a testament to the power of customer-focused innovation, where insights can lead to transformative success. 🚀💡 #CustomerInsights #InnovationSuccess #KnowYourCustomer
See the video link in the comments to hear Christensen talk about this interesting case.
Many of the students and grads we support who are pursuing a career in food & beverage processing want to shake things up, in a good way! We support Beth's mission! 😍