What Is Incremental Innovation?
Incremental innovation refers to a series of small-scale improvements made to an existing product or service to add or sustain value. Rather than introducing a potentially risky brand-new product, this product strategy entails modifying a current product to improve retention, relevance, and longevity, among many other benefits.
Any size company can benefit from bringing incremental innovations to market, which range from adding a new feature to an existing product or developing a line extension. When done well, these low-risk, low-cost modifications can play a powerful role in helping differentiate a company or product from the competition.
By contrast, radical innovation, also called disruptive innovation, refers to introducing a brand-new product or service to replace an existing one. This type of game-changing innovation can significantly impact a market but is more expensive and carries much higher risks.
What Are the 8 Key Benefits of Incremental Innovation?
Incremental innovations enable companies to more quickly and easily differentiate from competitors and maintain— or even improve—their market position.
1. Less Risk
Because incremental innovation tends to carry lower costs and lower risks than bringing a brand-new product or service to market, it
2. Customer Retention
More frequent improvements can improve a product’s visibility and sustain interest with customers.
3. Stronger Customer Relationships
A continued focus on customers’ needs and product use builds trust and cultivates a long view.
4. Continued Relevance
Small product improvements help companies retain market share and stay relevant in a crowded market.
5. Longevity
A product or service’s prolonged life creates greater diversity in a company’s product portfolio and helps ensure company longevity.
6. A Quick Win
Because the product is already on the market, familiarity and trust pave the way to easier acceptance and adoption.
7. Better Products and Services
Small, strategic improvements to an existing product result in better functionality, productivity, development efficiency–and ultimately a better product.
8. Potential for Radical Innovation
Companies can create a lower-cost, lower-risk revenue stream to fund riskier, more expensive radical innovations.
