Why testing ideas early and often can protect your investments and improve success rates.
Innovation is often seen as the lifeblood of business growth. Whether it’s launching a new product, tweaking a service, or testing a bold new brand direction, innovation can open the door to market share, consumer loyalty, and long-term success.
According to Statistics Canada’s Survey of Innovation and Business Strategy (2020–2022), 71.9% of Canadian businesses introduced innovations during that period, ranging from new products and services to internal process changes. But as common as innovation is, it remains risky: over 28% of businesses reported uncertainty and risk as one of their top obstacles to innovation.
That risk can be costly. A misstep in product design, positioning, or delivery can result in wasted resources, reputational harm, or missed opportunities. So, the question becomes: does innovation really have to be that risky?
The Short Answer: No. Not if you do your homework.
At Canadian Viewpoint, we believe that innovation doesn’t have to rely on guesswork. With the right consumer research, you can make bold decisions with more confidence and clarity.
Think of it as pre-qualifying your ideas. Before making major investments in production, creative, or media spend, a well-designed study helps you answer essential questions like:
- Do people understand the new concept?
- Does it solve a real need or pain point?
- How does it compare to competitors?
- Would your target audience actually buy it?
Real Consumer Feedback = Real Risk Reduction
We’ve seen firsthand how research can steer innovation toward success. In a recent blog post, we talked about how brands that listen early and often are better positioned to evolve with their audiences. Whether you’re testing a product prototype, an ad campaign, or a new service model, feedback from your core users gives you a reality check, before it’s too late to course-correct.
It’s not just about validation either. Research can uncover what isn’t working, identify blind spots, and even reveal opportunities you hadn’t considered.
Stats That Support Smarter Innovation
Here’s why data-driven innovation matters:
- While 46.6% of Canadian firms introduced product innovations, over 50% reported at least one obstacle to innovation, with uncertainty and risk being among the most common.
- Among businesses that improved internal processes, 41.1% reported measurable cost savings, particularly in production and operations.
- 38.4% of firms that launched product innovations protected their ideas with patents or trademarks, proof that these decisions carry long-term strategic weight.
Innovation doesn’t just reduce risk—it delivers real business results.
A recent evaluation of Canada’s Regional Economic Growth through Innovation (REGI) program showed that firms receiving support through the Business Scale-Up and Productivity (BSP) stream experienced an average of 18.3% higher revenue growth between 2018 and 2021, compared to similar businesses that did not receive support. This federally funded program helps Canadian companies scale operations, adopt new technologies, and commercialize innovative products. The findings come from an official program impact assessment, highlighting how structured innovation efforts can produce real financial outcomes.
And it’s not just public programs pointing to this connection. In global research by McKinsey & Company, companies identified as “innovative growers” were found to generate twice the excess revenue growth of their peers, both within their core business and when expanding into adjacent markets. These high-performing innovators consistently outperform because they align product development with unmet customer needs and invest in forward-thinking strategies.
In fact, one-third of global executives surveyed by McKinsey expect more than 25% of their future revenue to come from products and services that don’t yet exist. Further proof that innovation isn’t optional; it’s foundational to long-term growth.
How We Help You Test Smarter
Canadian Viewpoint offers flexible and fast-turn consumer research solutions that support every stage of the innovation cycle:
- Concept Testing: Gauge consumer response to product, service, or creative ideas early in development.
- Sensory Testing: Understand how consumers react to product attributes (taste, texture, scent, etc.) to refine formulations before launch.
- Package & Design Testing: Ensure that your packaging communicates effectively and stands out on the shelf.
- Pricing Research: Identify the sweet spot where perceived value and willingness to pay align.
- Usage & Attitude Studies: Get a deeper understanding of consumer needs, habits, and unmet expectations to guide innovation strategy.
- Post-Launch Evaluation: Measure the real-world impact of your launch and identify areas for optimization.
To test a new feature or upgrades, you can use approaches such as IN-HOME USAGE TESTS (IHUTs), in-person product testing, and shelf testing. These methodologies are designed to evaluate consumer reactions and preferences regarding your new features or packaging options.
If you’re getting ready to run an IHUT using panel data, now’s a great time to download our Plain Language Guide to Product and Package Tests
Our team loves talking about innovation. Do you have a question about de-risking your next big idea? contact us at info@canview.com or call 1-888-770-1770. We’re here to help!
The Bottom Line
Yes, innovation involves risk. But that doesn’t mean flying blind. With the right research partner, you can reduce uncertainty, validate ideas, and increase your odds of success.
Let us help you test, refine, and launch smarter.
Get in touch to talk about how we can support your next innovation.
