CO-CREATION OF VALUE - Collaborating with Customers

Mar 14

posted by Dr. Art Weinstein in Customer Value | 13 Comments

Customer focus no longer means just researching current and future needs to design expected or desired goods or services. A rising trend in business today is co-creating value with customers. Value is created when product and buyer come together within a particular use situation. Examples include retailers getting the customer involved in the shopping experience to save time (Home Depot's self-checkout) or costs (IKEA's assembly and delivery by customers), smart phone personalization through app selection, Dell's online built-to-order computers, and management consultants collaborating with clients to add value in research projects.

Co-creation of value can lower costs, increase benefits, and improve the overall service experience for both the organization and the user. Here are six questions to think about as your company ponders the idea of co-creation of value:

1. Do you strive to continually exceed customer expectations?

2. Does your view of value creation go beyond the firm (to include the customer)?

3. Do you actively seek to create an extended community of users?

4. Is personalizing the customer experience a major part of your marketing strategy?

5. Is your marketing team truly obsessed with researching and improving customer experiences?

6. Do you nurture and forge enduring business relationships with customers and collaborators?

Art Weinstein, Ph.D., is Chair and Professor of Marketing at Nova Southeastern University and author of Superior Customer Value – Strategies for Winning and Retaining Customers. He may be reached at art@huizenga.nova.edu or 954-262-5097; visit his website www.artweinstein.com Read More

This entry was posted on March 14, 2013 at 9:54 AM and has received 5771 views. There are currently 13 comments. Print this entry. Download attachment.

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• #1 by hendricks on 3/14/13 - 2:02 PM

  

  I took this course several years ago but I still use some of the tools in my everyday business transactions. Let’s face it; this course has managed to remain current and most importantly, addresses real-live core concepts that are practical and relatable.

• #2 by Art Weinstein on 3/14/13 - 7:19 PM

  

  Glad to hear that. Many of my former students echo your thoughts. As business leaders know, it's all about the customer experience!

• #3 by Joe Lewis on 4/3/13 - 10:24 PM

  

  This is an interesting perspective and it makes good business sense. With the changes in today’s economy, customers’ tastes and preferences are changing; their consumption patterns are changing, and most importantly, the income they have available. These also create changes in demand for goods and services and may lead to businesses falling behind because they are not communicating with customers as to what they now want or demand. Customer may now require different levels of packaging or services and only companies that co-create value with customers by interacting with and integrating customer input into what they do will continue to satisfy customers and stay afloat.

• #4 by Art Weinstein on 4/4/13 - 10:32 AM

  

  Joe, You raise many excellent points - we are definitely on the same wavelength. I might add that technological enhancements and personalization opportunities also support this trend. The big question today may be -- can companies afford not to co-create value with their customers since astute competitors are likely to embrace this strategic direction to become market-driving?

• #5 by Nina Chandler on 4/11/13 - 6:08 PM

  

  I think Dr. Weinstein makes an excellent point with the six questions as it relates to co-creation of value. Value is an important factor of business and to implement value between the customer and the company will create great collaboration of the two with the long-term success of the company. In addition, in order for a company to find out what the customer want or need, the company must first strategize and plan by perhaps implementing surveys and conduct proper research to find out the demand for goods and services.

• #6 by Art Weinstein on 4/12/13 - 10:24 AM

  

  Great marketing is truly a two-way customer-company experience. Subaru's highly successful "love campaign" has emotionally connected with their ever-growing community of highly loyal buyers. Subaru owners feel that their cars are more than dependable transportation and almost family members. Subaru fares quite well on that 6 question co-creation of value quiz. Here's a TV commercial demonstrating how they relate to their customers. http://www.youtube.com/watch?v=KwGRk2t8WFU

• #7 by Ellen Guimaraes on 6/4/13 - 11:00 AM

  

  Exceeding the customers` expectations is the main aim of making the company more successful. Understanding and managing the customers` expectations is extremely essential factors for their risings demands. Customers are considered being the main participants of each company's success and further development. As nowadays, the notion of market became vital for everyday person's activity, after taking the course taught me new strategies about not only about customer value but how to provide customers the "superior" value.

• #8 by Samar Akbarian on 6/4/13 - 11:34 PM

  

  These questions gives the business a new perspective of how to look at the new marketing environment. By co-creation of the value, a company can face their competitors and embrace them. I think Co-creation of value; will create an excellent collaboration between the consumer and the company. It also connect them together emotionally in which will result to customer loyalty.

• #9 by Donnajean Wellington on 6/17/13 - 10:22 PM

  

  Co-creating value with customers is truly a win-win situation. There are collaborative efforts that truly bring value to both parties; Nike ID is a good example. Nike ID allows customers to go on to their website, choose a pair of customizable sneakers and basically design their own color scheme and even personalize it with a name. It's a win for the customer because they have designed their own product and they have the ability to customize it to a level that will ensure that it's a unique product. It's a win for Nike on several different levels; the transaction is done directly with the consumer so there is no distribution costs to eat into the profit margin, the product is made to order so no wasted inventory to sit on shelves that eventually need to be sent to outlets or deeply discounted. Nike can also choose which items to offer these options on, which gives them the flexibility to offer premium shoes that come at a higher price.

• #10 by Art Weinstein on 6/18/13 - 11:04 AM

  

  Great example, Donnajean! In fact, one of our main goals with the Huizenga School Means Business faculty blog is to co-create value with our stakeholders (students and practitioners) by sharing informative, interesting, and relevant content. We thank all of our readers and respondents for participating in this ongoing business dialog.

• #11 by ?????? ?????? on 7/4/14 - 2:37 AM

  

  Interesting read, thanks for your share!

• #12 by Brian on 3/13/15 - 6:48 AM

  

  Nice info on collaborating with customers!

• #13 by mark on 2/2/16 - 5:44 AM

  

  Thanks For Sharing Nice Informations.