The Secret to Successful Innovation: Understanding the Innovation Empathy Matrix
Key Takeaways
The Innovation Matrix links innovation success to real shopper behavior.
- The best innovation opportunities are in high-interest, low-barrier categories.
- Retailers can focus their efforts where new products are most likely to succeed.
- Category managers get clearer, data-driven guidance for smarter decisions.
- Strategies can be tailored by category, department, or retailer.
- The matrix helps avoid wasted investment in low-yield categories.
Table of Contents
- What is the Innovation Empathy Matrix?
- Case Study: Frozen Snacks
- How Does It Help Retailers?
- How the Innovation Matrix Helps Category Managers
- Conclusion
The Innovation Empathy Matrix helps retailers and category managers answer one crucial question:
“Where should we launch new products to give them the best chance of success?”
It combines 7 different shopper metrics to identify which categories are most open to innovation—and which ones present more resistance. This way, you’re not guessing or blindly launching products across the board. You’re targeting the right places, where shoppers are both interested and receptive.
But how does it work? Let’s break it down.
What Is the Innovation Empathy Matrix?
The Innovation Empathy Matrix works by mapping categories based on two key factors: barriers to innovation (how difficult it is for new products to get noticed) and interest in innovation (how open shoppers are to trying new things). Categories are plotted on a graph, with high interest and low barriers placed in the bottom-right quadrant—this is where innovation is most likely to succeed. The matrix helps identify which categories are ripe for innovation and where efforts might face more resistance.
Case Study: Frozen Snacks
Take frozen snacks as an example. The matrix revealed that this category has:
- 15th in satisfaction and importance—suggesting it plays a meaningful role in the shopper’s routine. Innovation very important to Frozen Snack shoppers Ranks #15 out of 120 categories at Walmart for the importance of innovation
- Low barriers to innovation—shoppers aren’t on autopilot, and they’re open to browsing.
- High interest—people are willing to try new flavors and brands.
That places frozen snacks squarely in the bottom-right quadrant—an ideal environment for launching new ideas.
Other neighboring categories like frozen breakfast and frozen potatoes also showed similar potential, while the frozen department as a whole displayed variability. This highlights an important takeaway: not all innovation opportunities are created equal—even within the same department.
How Does It Help Retailers?
Here’s how the matrix becomes a powerful tool for retail decision-making:
- Prioritize Categories for Innovation
It highlights the categories where innovation is most likely to succeed—those with low barriers and high shopper interest. These are your high-opportunity zones.
- Avoid Wasting Resources
Instead of spreading innovation efforts evenly, the matrix shows where not to invest—categories where shoppers are on autopilot, loyal to specific brands, or simply not looking for something new.
- Tailor Strategies by Category
Not every category needs a flashy new product. Some might benefit more from improving the in-store experience or promotions. The matrix helps tailor the right approach for each type of category.
- Visualize Shopper Behavior
It turns complex shopper data into a simple visual tool, making it easier to align internal teams, explain strategy to stakeholders, or compare performance across departments.
- Retailer-Specific Insights
The matrix can be customized for each retailer (e.g. Walmart, Target), since shopper behavior varies by store. That means decisions are grounded in actual shopper behavior, not assumptions.
How the Innovation Matrix Helps Category Managers
Category managers are responsible for driving growth, managing performance, and making smart decisions about product assortment. The Innovation Matrix is a practical, data-driven tool that helps them do just that—with more confidence and precision.
Here’s how:
- Identifies High-Potential Innovation Opportunities
Not all categories are created equal when it comes to shopper openness. The matrix helps category managers pinpoint where shoppers are actively looking for new products—and where they’re not.
✅ Helps answer:
“Which categories are ripe for something new?”
- Informs Better Product Decisions
Instead of relying on gut feel or supplier enthusiasm, category managers can use the matrix to back innovation decisions with shopper insights. It shows where new products are most likely to get noticed and tried.
✅ Helps answer:
“Will shoppers actually see and try this product if we launch it?”
- Supports Assortment and Merchandising Strategy
By understanding shopper behavior—like whether they’re impulsive or loyal to specific brands—category managers can make smarter decisions about space allocation, signage, and promotional focus.
✅ Helps answer:
“Should we feature innovation front-and-center, or focus more on core items?”
- Avoids Wasted Effort on Low-Yield Categories
Some categories have high barriers to innovation—like heavy pre-planning or strong brand loyalty. The matrix helps category managers steer innovation efforts away from these zones, avoiding wasted resources.
✅ Helps answer:
“Where should we NOT invest in innovation right now?”
- Customizes Strategy by Retailer
Because the matrix is retailer-specific, it helps category managers understand how shoppers behave in different retail environments—whether at Walmart, Target, or another banner.
✅ Helps answer:
“How should my strategy change depending on the retailer?”
- Helps Tell a Clearer Story to Stakeholders
The visual nature of the matrix makes it easier to communicate strategy to leadership, suppliers, and cross-functional teams. It shows the “why” behind decisions in a compelling and easy-to-understand way.
✅ Helps answer:
“How do I get buy-in on where we’re investing in innovation?”
Conclusion
Innovation in retail isn’t just about launching what’s new—it’s about launching what’s right, in the right place, at the right time. The Innovation Empathy Matrix empowers retailers and category managers to do exactly that by grounding innovation strategy in real shopper behavior.
By mapping both the barriers and the appetite for innovation across categories, the matrix transforms decision-making from reactive to strategic. It helps uncover hidden opportunities, avoid common pitfalls, and prioritize resources where they’ll have the greatest impact.
Whether you’re managing a single category or an entire department, the Innovation Empathy Matrix gives you the clarity to spot the signals, not just the noise—so your next innovation doesn’t just launch, it lands.
👉 Want to see how your category stacks up? Contact us to get your own Innovation Empathy Matrix and uncover where your next big opportunity might be.
Or dive into our 2025 Shopper Satisfaction Report for a closer look at the data behind the insights: