For decades, the most successful businesses thrived on product innovation as the natural strategy to increase revenues, market share, and loyalty. Fast forward to 2014: today’s product innovations, and the growth they create, are often incremental, narrow, and fleeting. Take TVs or PCs–every competitor quickly matches the latest features, speed, brightness. As a result, companies are finding that returns from product efforts are harder to rely on. Among the Global Innovation 1000, R&D spending rose 5.8% last year, yet revenue for those companies increased less than 1%. Global competition and technological diffusion mean that competitors quickly catch up with most improvements, while the transparency of digital and social media also prompts consumers to quickly switch allegiance with each new alluring offer.
Enter: the experience.
