In today's crowded marketplace, it's harder than ever for products and businesses to stand out. Traditional advertising has lost much of its power, and consumers are bombarded with so many marketing messages that most simply tune them out. At the same time, pursuing major technological breakthroughs or innovations is often too expensive and risky for most companies.
So how can businesses capture people's attention and gain a competitive edge? In his book "Free Prize Inside," marketing expert Seth Godin argues that the answer lies in what he calls "soft innovations" - small, clever ideas that make a product or service remarkable without requiring huge investments. Just like the cheap plastic toys that used to come in cereal boxes, these "free prizes" can make an offering irresistible to customers at minimal cost.
This book summary explores Godin's key ideas about how to come up with and implement soft innovations that can take your marketing to the next level. We'll look at why big innovations often fail, how to identify promising small innovations, techniques for generating creative ideas, and strategies for overcoming organizational resistance to change. By the end, you'll have a roadmap for finding your own "free prize" that can make your product or business stand out from the crowd.
The Problem with Traditional Approaches
Advertising Has Lost Its Power
In the past, companies facing stagnant sales or outdated products could often turn things around with a major advertising campaign. By flooding magazines and TV with ads, they could force consumers to pay attention to their offerings. But this approach no longer works in today's media landscape.
There is now so much advertising and content competing for our attention that most of it blends together into white noise. Consumers have become adept at tuning out marketing messages. Even expensive, high-production-value ads often fail to break through the clutter.
Big Innovations Are Too Risky
The other traditional approach companies take when they need a boost is to pursue a major technological innovation or breakthrough product. The logic is that if you can create something truly novel that no one else offers, you can charge premium prices and corner the market - at least until competitors catch up.
To chase these big innovations, companies often pour massive resources into R&D, product development, or technology projects. The potential payoff of creating the next iPod or revolutionary product in your industry is huge. But so is the risk.
These major innovation efforts require enormous upfront investments. A telecommunications company called Iridium learned this the hard way in the late 1990s when it spent $3 billion launching a network of 66 satellites, only to go bankrupt shortly after. When you're spending billions on innovation, you need to make billions just to break even. The more you spend, the higher you raise the bar for success - and the more exposed you are to catastrophic failure.
The Power of Soft Innovation
Small Changes Can Make a Big Difference
So if traditional advertising and major innovations are often dead ends, what's the alternative? Godin argues that the answer lies in what he calls "soft innovations" - smaller-scale, clever ideas that can make a product or service remarkable without requiring huge investments.
These soft innovations are like the toy prizes that used to come in cereal boxes. They may seem insignificant, but they can make a product irresistible to customers. And they cost very little to implement compared to major technological breakthroughs.
Some examples of soft innovations:
- A ski resort adding an amazing on-site Mexican restaurant
- A security company dressing guards in eye-catching uniforms
- A hardware store holding an "all-you-can-carry brick" event
While these may seem trivial, they can be enough to make a business stand out from competitors and get people talking. And that word-of-mouth buzz is far more powerful than traditional advertising in today's market.
The Free Prize
Godin calls these soft innovations "free prizes" because they provide extra value to customers at minimal cost to the business. Like the toy in a cereal box, they aren't strictly necessary for the core product or service. But they make the overall offering more fun, remarkable, and desirable.
For customers, the free prize is an enjoyable bonus feature. For the company, it's an inexpensive way to boost sales and word-of-mouth marketing. While not literally free, it's as close as you can get to a win-win for both sides.
Why Soft Innovations Work
There are a few key reasons why these smaller-scale innovations can be so powerful:
They're achievable. Unlike major technological breakthroughs, soft innovations are within reach of most companies. You don't need a huge R&D budget or cutting-edge technology.
They're low-risk. Since they don't require massive upfront investment, the downside of a failed soft innovation is minimal. You can afford to experiment.
They make products remarkable. Small, clever innovations give people a reason to talk about your offering. They provide that extra spark that turns a boring product into something noteworthy.
They tap into deeper desires. Beyond just fulfilling basic needs, free prizes speak to customers' emotional and aspirational wants. People don't just buy a watch to tell time - they want beauty, status, etc.
They create competitive advantage. A clever soft innovation can set you apart in a crowded market of similar core products or services.
So while "thinking big" is often glorified in business, there's a strong case for thinking smaller when it comes to innovation. The next revolutionary technology may be out of reach, but there are countless opportunities for smaller revolutions in how products and services are packaged, delivered, or experienced.
Finding Your Edge with Edgecraft
The Concept of Edgecraft
So how do you actually come up with soft innovations that can give your business an edge? Godin recommends a technique he calls "edgecraft" - the art of taking your product or service to an extreme in some dimension.
The core idea is to identify an aspect of your offering and push it as far as it can go in a new direction. Don't just make an incremental change - go all the way to the edge of what's possible or expected. This is how you make something truly remarkable that people will talk about.
Some examples of edgecraft in action:
- A restaurant that only hires twins as servers
- A car wash that guarantees your car will be clean for 1,000 miles
- A hotel with themed rooms based on famous movie sets
In each case, a typical feature (staff, cleaning, decor) is taken to an extreme that makes it noteworthy. The goal is to stake out a position on the edge that sets you apart from the sea of boring, average competitors in the middle.
How to Practice Edgecraft
To apply edgecraft to your own business, follow these steps:
Identify different aspects or dimensions of your product/service that could potentially be changed or enhanced.
For each dimension, brainstorm ways to take it to an extreme. Don't hold back - generate wild ideas.
Evaluate which "edges" seem most promising in terms of being remarkable, feasible, and aligned with your brand.
Develop and refine the top ideas into concrete soft innovations you could implement.
The key is to push past your initial, safe ideas and get to the true edge. If your idea doesn't seem at least a little risky or crazy, you probably haven't gone far enough.
Looking Outside Your Industry
One of the best ways to spark edgy ideas is to look outside your own industry for inspiration. Here's a process Godin recommends:
Pick a type of business in a totally different industry from yours.
Find an example of a remarkably successful and edgy player in that industry.
Analyze what makes their edge compelling. What underlying principle or customer desire does it tap into?
Brainstorm ways to adapt that principle to your own business.
For instance, a hardware store owner might look at a popular restaurant's weekly all-you-can-eat chili pepper night. The underlying edge there is "excessiveness" - letting customers indulge without limits. The hardware store could then adapt this into an all-you-can-carry brick event.
By borrowing ideas from unrelated fields, you can find novel ways to differentiate yourself that your direct competitors likely haven't considered.
Types of Edges to Explore
The potential edges you can explore are limited only by your imagination. Almost any attribute or dimension of your product or service could potentially be pushed to an extreme. Here are just a few examples of edge categories to consider:
Visibility vs. Invisibility
Some edges make a previously invisible product or service highly visible. A massage parlor could put its chairs out on the sidewalk for everyone to see. A car like the VW Beetle takes the concept of an automobile and makes it visually distinctive.
The opposite can also work - making a visible product invisible. Think of how clear plastic braces improved on metal ones by being less noticeable.
Variety vs. Simplicity
Offering an extremely wide selection can be an edge, like a Harley-Davidson dealership with every possible motorcycle model. But the opposite - radical simplicity - can also work, like In-N-Out Burger's famously limited menu.
Convenience
Pushing convenience to the extreme can set you apart. Think of Amazon's 1-Click ordering or a 24/7 pharmacy.
Specialization
Becoming the absolute best at one specific thing can be a powerful edge. A restaurant that only serves one dish, but does it perfectly, for instance.
Customization
Offering unprecedented levels of personalization or made-to-order products can be remarkable.
Speed
Being dramatically faster than competitors - in delivery, service, etc. - can be a compelling edge.
Price
Both extreme high-end luxury pricing and rock-bottom discount pricing can work as edges in different markets.
Experience
Creating a uniquely memorable, entertaining, or immersive customer experience can set you apart.
The key is to pick an attribute and take it further than anyone else has. Don't be afraid to be counterintuitive or go against conventional wisdom. Often the most powerful edges are the ones that seem crazy at first.
Overcoming Organizational Resistance
Your Organization is the Obstacle
Once you've come up with a promising soft innovation, the hard part is often getting your organization to embrace and implement it. In most cases, the main obstacles aren't technical or practical - they're human.
Your colleagues are likely to resist your idea, at least initially. This resistance can take many forms:
- Polite skepticism ("That sounds nice, but...")
- Concerns about risk or unintended consequences
- Worries about how customers or investors will react
- General fear of change and the unknown
Don't take this personally or let it discourage you. It's a natural reaction to new ideas. Your job is to overcome this resistance and champion your innovation to fruition.
Building a Fulcrum
To gain leverage within your organization, Godin recommends building a "fulcrum" - a set of persuasive arguments and evidence you can use to move people to your side. This involves addressing a few key questions:
1. Will it work?
Obviously, you want to marshal whatever facts, data, and logical arguments you can in favor of your idea. But recognize that you can never definitively prove an innovative idea will succeed in advance.
Instead, focus on getting colleagues to believe emotionally that it will work. Some strategies:
- Anchor your idea in familiar, proven concepts
- Show how it builds on past successes
- Conduct small tests or pilots to demonstrate potential
- Use storytelling to paint a compelling vision of success
2. Is it worth doing?
Different stakeholders will have different priorities, so tailor your pitch accordingly:
- For engineers, emphasize the technical challenge
- For salespeople, focus on how it will help hit revenue targets
- For executives, highlight the strategic advantage it provides
You can also flip the script on risk-averse colleagues. Point out how not innovating is actually the riskier path in the long run as competitors evolve.
3. Can you pull it off?
The final piece is convincing people that you personally have the leadership skills to make the idea a reality. If you don't have an established track record, you may need to build credibility gradually:
- Start by successfully leading small projects and initiatives
- Volunteer for leadership roles to demonstrate your capabilities
- Project confidence in your presentations and interactions
Remember that you're not just selling the idea - you're selling yourself as its champion.
Bringing Your Free Prize to Life
Start Small and Build Momentum
When it comes time to actually implement your soft innovation, resist the urge to make a huge splash right away. Instead, start small and build momentum gradually:
- Run a limited pilot or test to prove the concept
- Implement the change in one location or department first
- Roll out features incrementally rather than all at once
This approach lets you work out kinks, gather data, and build internal support before a wider launch. It also limits downside risk if things don't go as planned.
Empower Your Team
For your innovation to succeed, you need buy-in and enthusiasm from the people who will be implementing it day-to-day. Some tips:
- Involve front-line employees in refining and customizing the idea
- Provide training and resources to help people adapt
- Celebrate early wins and showcase employee contributions
- Be open to tweaks and improvements based on real-world feedback
The more ownership your team feels, the more likely they are to make the innovation successful.
Stay Agile and Iterate
Even the best soft innovations usually need some fine-tuning once they hit the real world. Be prepared to:
- Closely monitor results and gather customer feedback
- Make quick adjustments based on what you learn
- Test variations to optimize the concept
- Potentially pivot to a modified version of your original idea
The ability to rapidly evolve your innovation is key to long-term success.
Keep Pushing the Edge
Once your first soft innovation takes hold, don't rest on your laurels. The edge that seems remarkable today will become ordinary over time as competitors catch up.
Make edgecraft an ongoing practice in your organization. Keep exploring new dimensions to push and new ways to surprise and delight customers. The most successful companies are those that consistently find new edges to explore.
Conclusion: The Power of Small Ideas
In a business world obsessed with disruption and revolutionary breakthroughs, it's easy to overlook the power of smaller innovations. But as Seth Godin argues in "Free Prize Inside," these soft innovations are often the most realistic and effective way for companies to stand out.
By finding clever ways to push your product or service to the edge, you can make it remarkable without massive investment or risk. These "free prizes" tap into customers' deeper desires and give them a reason to choose you over competitors.
The key is to approach innovation with creativity and an open mind. Look beyond your industry for inspiration. Don't be afraid to be a little crazy or counterintuitive. And focus on changes that will get people talking.
Of course, coming up with innovative ideas is only half the battle. The greater challenge is often convincing your organization to embrace change. But by carefully building your case and your personal credibility, you can champion your innovations to fruition.
In today's crowded marketplace, small edges can make a big difference. So start exploring the edges of your business. What's your free prize waiting to be discovered?
Key Takeaways
Traditional advertising and big technological innovations are often ineffective or too risky for most businesses.
Small-scale "soft innovations" can make products remarkable at low cost and risk.
Use "edgecraft" to push aspects of your offering to extremes that set you apart.
Look outside your industry for inspiration on potential edges to explore.
Overcome organizational resistance by carefully building your case and credibility.
Start small, empower your team, and be ready to iterate as you implement innovations.
Make finding new edges an ongoing practice to stay ahead of competitors.
By mastering the art of soft innovation, you can find the "free prizes" that will take your marketing and your business to the next level. So get out there and start exploring the edges!