An example: You are planning a nationwide advertising campaign for a new product. With the help of an excessive advertising campaign, your product is supposed to become well known. Let’s assume you are not following a lean innovation approach and you have 10 million euro at your disposal. What are you thinking of?
- Extensive market research to test the campaign,
- the production of a high-quality TV commercial,
- running an expensive campaign on Facebook,
- high spendings on influencer marketing.
What do you do when your budget is cut by 99%? Instead of 10 million euro you now only have 100,000 euro at your disposal. Now you’re in the same situation as a start-up company. You challenge is to achieve great success with few resources. The solution: Lean innovation approaches.
In an ideation session, you start to think about different forms of growth hacking: the production of unconventional videos that are simple, cheap and effective and spread via YouTube, online images with funny slogans that people pass on, and spectacular PR campaigns. Will you be less successful with the lean innovation approach? Or even more?
The traditional cause-and-effect principle is sometimes completely turned upside down in the process of generating ideas. Usually we are used to achieving an effect X at a cost of Y. If you send 20,000 advertising letters to customers, 500 react at best. If you send 40,000 letters, 1,000 react etc.
Automatically you think: If you increase the budget for a certain measure, you automatically achieve a corresponding effect. With lean innovation approaches, however, it’s the other way around. It may be that a campaign costing 100,000 euro is much more effective than one costing 10 million euro.