Sound evolution
Having the best quality is only half the battle. Making sure you have identified the right markets and utilized the best cosmetic design for the product is the other half.
Remember the old stereo speakers that looked like wooden crates that you could barely lift? Those would hardly sell in today’s market, where small and sleek rules. Technology has pushed high-end audio to computers, handheld digital music players and televisions.
Klipsch’s challenge is to stay on top of trends in technology to make sure his products are available to a wide variety of audio possibilities and in styles that match what consumers want.
“It’s just a more complex marketplace, (and) lifestyle is a big driver in all of this,” says Klipsch. “You see the traditional box speakers that people use for their stereo systems, and then those speaker systems evolve to include center channels, rear channels and powered subwoofers for home theater. And then (the consumer) decided they like distributed sound, so they put speakers in the ceiling and in the walls that don’t show up, so as you walk through the house, you can have music throughout the house.
“Go outside, and on the patio (you can) be entertaining, and you want the same music coming through on speakers outside. … All of that drives different requirements for sound.
“Innovation is actually the lifeblood of the company. If we were still manufacturing large wood box speakers the size of the ones we bought in 1989, I suspect we wouldn’t be in business today.”
Klipsch breaks innovation into two categories, performance and lifestyle. Performance is the quality of the speakers and the sound they generate.
“The second part of innovation that’s critical is the lifestyle — the environment in which these loudspeakers find themselves. We have a new line of product that matches up to plasma TVs so it’s very narrow and not very deep, can be put on the wall next to the plasma screen and look like part of that plasma screen operation. I talked about distributed sound systems and outdoor sound with speakers that are in the wall or in the ceiling and not visible at all, but the sound is still high-performance, best-in-class sound.
“So innovation to us is first on the performance level and second upon the packaging cosmetics lifestyle side of what we do, and those two issues are critical.”
Klipsch has a team of professional industrial designers on staff, and the company consults with experts in color and style in other industries as well to stay on top of design trends and make sure the speakers have a unique look. Demographic information is collected through warranty cards and industry groups to identify key market segments and the types and styles of products they are interested in.
The company also collects unfiltered feedback from the retail and custom installation marketplace to hear what customers want and don’t want. Everyone is involved in innovation.
“We solicit feedback from all employees,” says Klipsch. “You never know where the next great idea is coming from. We do have a solid product development department that is charged with keeping ahead of trends, watching the competition and determining the direction of our products. We have a series of steps a product concept must pass through before we begin production.
“First is a business case. Where will it be sold, what will the profit be and how many pieces can go through the channel? But gut also plays a role. We have a very seasoned team, and they have learned through the years what will work.”
The popularity of iPods is a good example. Klipsch created a docking station for the iPod that provides great audio.
“With the headset, you can get some great sound,” says Klipsch. “But when you finally get home or get to your office, to be able to take that iPod and dock it in a station that’s connected to a couple of great loudspeakers and have even better sound, that’s the kind of innovation we’re looking at. And last year, I think there were 15 million iPods sold, and you know, ideally we’d like everybody to have a Klipsch iFi system to dock it in.”
Evolving to meet new consumer demands is vital to Klipsch’s success.
“We all are listening to music in so many different ways today, and every time you figure out a way to listen to music, we’re going to figure out a way to get you a pair of loudspeakers to make it sound better,” Klipsch says.
And to stay on top of the audio world, the reputation for quality has to continue. Without it, Klipsch speakers risk falling into the commodity category, something Fred Klipsch knows he has to avoid.
The beauty of a product may lie in the eye of the beholder, but it’s the ear that ultimately sells a Klipsch speaker and creates customer loyalty.
“There is a moment of truth at the demonstration point — a qualitative moment of truth,” says Klipsch. “Klipsch has a fanatical following of consumers, people who actually travel to our factory and headquarters every summer on their own dime to meet the people behind the products. This type of dedication and community atmosphere continues because Klipsch overdelivers on its promise of best-of-class products.”
HOW TO REACH: Klipsch Audio Technologies, (317) 860-8100
Kelly Kagamas Tomkies contributed to this story.