subject: Co-Creation, The Bottom Up Approach [print this page] Co-Creation, The Bottom Up Approach Co-Creation, The Bottom Up Approach
The concept of co-creation has been around for many years, but what is it exactly and how many companies actually utilise it to understand their customers better? There is a lot to learn from this innovative approach, and one must remember that without a carefully laid out plan, all could go pear shaped. The good news is, when done right, co-creation has many benefits for both the company and the customer.
Co-creation is a way of doing business that creates value between companies and their consumers because they have an opportunity to share, combine and rekindle their resources.
Why customers like it.
Customers want to be heard and are more likely to buy from those who are willing to lend a listening ear. Co-creation empowers them and provides a more personalised and unique experience. They enjoy a more genuine interaction with companies and it strengthens the company/consumer relationship.
The benefits for companies.
It also adds a new dynamic to the customer relationship, as they are involved in the process and this allows them to feel part of the company. As well as this, it also;
Makes sure that a company's products and services are still relevant in today's rapidly changing world.
Decreases the costs of market research
Increases customer loyalty
Allows companies to bring new products to the market faster. There's no need to wait for the lengthy process of market research.
Many companies have experienced huge success from co-creation.
There are some great examples out there on how companies have harvested the benefits of co-creation to grow their businesses.
IKEA - A successful company who have built their whole business around the concept of co-creation. They encourage their customers to provide their own transportation service and assemble their products themselves. In exchange, Ikea offer lower prices.
Nike - Customers are able to design their own sneakers online.
Lego - Kids design new Lego models using online tools and submit them for a competition. This provides the company with their primary source of new ideas for Lego.
Co-creation requires a co-operative win-win' relationship.
There's no point in using co-creation just because'. It has to be able to assist the company in moving forward with their mission and vision. Use co-creation when there are clear shared goals and a win-win' outcome can be achieved.
What are the risks?
There ARE risks involved with co-creating and companies must be prepared.
Privacy Be aware of privacy laws. Companies shouldn't sell or share information without gaining consent of the owners first.
Legal Be aware of legal implications. Content submissions must not infringe on any copyrights, intellectual property rights or libel laws. For companies who rely on customers for content, make sure that you are submitting content that is verified.
Brand Whilst you may be able to build brand value very quickly using co-creation, you can just as easily destroy it. Make sure you align your content with the messages your company wants to send its customers. Be transparent and make sure you monitor your content to ensure quality.
Use co-creation as an avenue to improve your understanding of your customers needs and desires. Keeping in mind the risks and working towards a shared purpose, your business will achieve tomorrow what it could be missing out on today.
