5 Things To Learn From Panera Bread About Implementing New Technologies

In most sectors and industries, there will come a time when only the narrowest of margins separates the top competitors. At that time, innovation becomes critical for success, but not all innovation will move the company forward. In some cases, one company’s attempts to innovate can become a huge boon to competitors. In 1985, the Coca-Cola company proudly announced a brand-new product to pull away from increasing competition from Pepsi Cola. The new formula met with such resounding disapproval that fans started hoarding cases of the original product and in some cases selling them on the black market for as much as $30 a case.

Where changes in formulas, menus or products may have been the go-to solution for businesses in the 20th century, businesses in the 21st century are more likely to try and gain a competitive advantage through use of advanced technology. Just like with “new Coke,” however, not all advancements are necessarily good advancements. In a strange twist of irony, “New Coke” may be making a comeback in the 21st century. It is also possible that it may enjoy much greater acceptance in the 21st century than it did in the 20th. The truth is that sometimes the public is simply not ready for drastic changes.

Coming up with new and creative ways of attempting to pull ahead of the competition can backfire if the market it not ready for it. The most successful innovation generally manages to find a way to piggy-back somehow on where the market is already moving. It requires implementing new strategies in such a way as to take advantage of already emerging trends rather than moving against them. In today’s market, most soft drink companies sell many variations on their original formulas, but when Coke released New Coke, it was an unheard-of practice and one the market just wasn’t ready for yet.

Recently, Panera Bread moved ahead of the competition with a bold move into mobile technology. Unlike Coke, however, they succeeded by setting the stage well in advance and taking advantage of already emerging trends in mobile technology. Here are 5 things to learn from Panera Bread about moving your brand into the digital age.

1. Cross-channel implementation

There is no shortage of fast-food chains creating mobile apps or digital loyalty programs. The problem is, these apps and loyalty programs often operate completely independently from the retail store, giving users two completely different experiences. While users can place a mobile order, and pay for it on-the-go, they don’t have the same smooth, seamless experience when they visit the store. Users that enjoy the ease and convenience of ordering with an app are suddenly thrust back into the dark ages of long lines and interminable wait times as soon as they decide to visit the store in person. As early as 2014, however, Panera Bread began installing digital kiosks in their stores to give customers the same seamless experience in their stores as their customers were used to with their app.

2. One step forward, one step back

At the exact same time that Panera Bread was offering a new, modern, digital experience, they were also moving their menu backwards to a simpler time of “cleaner” food. The modern world is always going to present a strange conundrum of values. A constantly shifting juxtaposition of moving towards what is modern while simultaneously moving back into what is more traditional and familiar. Panera Bread embraced this juxtaposition brilliantly by offering modern features where consumers were looking for those features and taking a step back into the more traditional in the areas where that’s what consumers were embracing. Panera Bread did a brilliant job of keeping their finger on the pulse of their consumers, recognizing competing trends and simultaneously taking advantage of both.

3. Listen to your critics

Steve Jobs was infamous for saying that customers don’t know what they want until you show it to them. Unfortunately, too many business leaders grossly misunderstand what that means. Many believe it meant that Steve Jobs simply didn’t listen to his customers, but nothing could be farther from the truth. Rather he understood that finding out what customers really want is more a matter of listening very carefully to what they are complaining about. Really listening deeply and carefully to consumer complaints is difficult for many because complaints only tell you what you’re doing wrong, not what you are doing right. This is hard on the egos of many business leaders, but the ones that are the most successful innovators generally spend far more time listening to complaints than they do praise. There is no doubt that Steve Jobs was a man who was never satisfied with the status quo. He understood that success means constant improvement and constant improvement requires that you never stop looking at what you are getting wrong.

4. Multi-level approach

Any innovation requires preparation on several fronts. Many businesses and companies get so excited about new products or services that they don’t genuinely do their due diligence to determine whether it is an innovation that is desired by their consumers. They also don’t always take the time to ensure their employees are really excited about the changes as well. Too often, companies simply inform their employees about decisions made on high regarding program or product changes. Always remember that your employees (not the executives) are the ones that are boots-on-the-ground interacting with customers and hearing their complaints every single day. Successful innovation requires a multi-level approach that factors in both customer needs and employee concerns. To be a successful innovator also requires a deep understanding of the psychological reaction to change and how to move both customers and employees through various funnels to achieve the desired result.

5. Increase desire while reducing friction

The way that Panera accomplished their two-pronged “one step forward, one step back” campaign was by increasing desire while simultaneously reducing friction. They created greater desire for their product by returning to a clean menu. At the same time, they also made their product easier than ever to order and purchase by investing in new technology solutions. To improve customer experience. To further marry these two campaigns together, they also created a new on-the-go menu to tie in with their new on-the-go ordering experience. To get full value for one of your prongs, you need the other prong to make it profitable.

Imagine you came out with an amazing new product that started flying off the shelves. Everyone wanted it, but the experience of trying to purchase it was brutal. Perhaps the pain is the result of a somewhat byzantine website that is difficult to navigate or an outdated checkout experience. If your product is hard to find in stores or involves a long wait time to check out, you may experience a rush of sales when the product is new and novel, but sales are likely to decline sharply when the novelty wears off and the friction of purchase becomes greater than the joy of ownership. Conversely, the opposite can also be true. You may have implemented a new technology solution that makes ordering or purchasing easier than ever, but without an exciting new offering that draws your consumers into purchasing — thereby experiencing the new frictionless system, you aren’t likely to see much of an increase in sales due to your investment.

Technological solutions abound and almost any company can find creative ways to innovate. Innovation and successful innovation are two completely different things, however. Innovation is only successful if it increases your market share and helps you move ahead of the competition. How you implement new innovations is also as important as what innovations you implement. If you don’t have buy-in from both employees and consumers, your efforts are likely to fall flat and can set you further behind the competition than moving you forward. Successful innovation requires far more than just understanding the latest trends in technology or your industry. At the end of the day, your consumers are people. If you don’t understand how they think, how they operate, what makes them tick and what makes them embrace one change while rebelling against another, you are just as likely to incite rebellion in your most loyal customers than to inspire a greater passion for your brand.