Leveraging your customer: the multiple ways your customers can help your business


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  • The topic of this talk is whether companies should listen to their customers when it comes to innovation Let me turn the question on you
  • To begin answering this question, let me look back to the infamous Segway It would be premature to call the most talked about scooter in the history of humankind a huge bust. But the Segway has always been ahead of its time. For a decade, Dean Kamen fiddled and tested and tinkered with his invention, finally stage-managing its public unveiling in December 2001. He figured 2002 would be the year that the Segway Human Transporter launched a transportation revolution.
  • In B2B, for example BASF buys compressors, the salesperson at Atlas Copco needs to consider: The buyer: maybe even centrally located, in Germany The influencer: safety engineer The gatekeeper: production engineer Decider: plant manager In B2C, for example family deciding which movie to go to
  • It’s called the contribution revolution Web 2.0 enables all of us to actively engage
  • The customers are on the verge of defecting: the idea is that you remind them of your existence. Of course, you better have something good to say
  • But look at 2006 through a different lens and you'll see another story, one that isn't about conflict or great men. It's a story about community and collaboration on a scale never seen before. It's about the cosmic compendium of knowledge Wikipedia and the million-channel people's network YouTube and the online metropolis MySpace. The tool that makes this possible is the World Wide Web. Not the Web that Tim Berners-Lee hacked together (15 years ago, according to Wikipedia) as a way for scientists to share research. It's not even the overhyped dotcom Web of the late 1990s. The new Web is a very different thing. It's a tool for bringing together the small contributions of millions of people and making them matter. Silicon Valley consultants call it Web 2.0, as if it were a new version of some old software. But it's really a revolution. Read more: http://www.time.com/time/magazine/article/0,9171,1569514,00.html#ixzz131G7pVBC Read more: http://www.time.com/time/magazine/article/0,9171,1569514,00.html#ixzz131G2nlTN
  • Or to reach new customer segments
  • Or you can create a forum, an outlet where customers can voice their suggestions and ideas Launched in March 2008
  • March 2008 Starbucks launched My Starbucks Idea
  • Launched October 18 2010
  • The value of satisfied company for the growth of the company comes from them: Are more loyal Buying more over time becoming less price sensitive Lower cost to serve (lower complaint numbers) Giving you good WOM  WOM is mostly going to come from Promotors
  • The value of satisfied company for the growth of the company comes from them: Are more loyal Buying more over time becoming less price sensitive Lower cost to serve (lower complaint numbers) Giving you good WOM  WOM is mostly going to come from Promotors
  • How do they do that? Not necessarily directly to you  they do it on twitter and facebook
  • FRED G. MARTIN Associate Professor & Associate Chair, Computer Science In 1989, I was a co-founder of the undergraduate MIT robot design contest, known often by its course number, 6.270. This project, which was the first large-scale autonomous robotics design contest at MIT, inspired many others and helped ignite the current boom in robotics design contests. As part of the 6.270 work, I co-designed a robotics hardware platform and software environment which were open-sourced and are now in use in high schools, colleges, and universities around the country and the rest of the world. (See the Handy Board and Interactive C). In 2001, Prentice-Hall published my textbook Robotic Explorations: A Hands-on Introduction to Engineering. This text synthesizes the practical knowledge needed to run a design-oriented robotics class at the university level, and is being adopted by many faculty who are using mobile robotics as an entry-point to engineering, computer science, and artificial intelligence classes—including our own Prof. Holly Yanco, who introduced it to the UML 91.450 Robotics I class. Beginning in 1987 with my Master's work with Seymour Papert, I developed a series of robotics design environments for kids. Staying at the MIT Media Laboratory after my doctorate, I continued this work as a researcher with Mitchel Resnick's Life-Long Kindergarten group. This work was partly sponsored by the LEGO Group A/S and became the foundation for the successful LEGO Mindstorms Robotics Invention System, which was launched in 1999.  
  • Vb Crackberry.com
  • The first role as resource relates to the customer as source of innovation. The second role as co-creator relates to the customer participation in product development and testing.
  • Granville bikes – a Belgian company using the configurations their customers make online as one of the inputs into NPD, and as a way of spotting trends in the market.
  • The competition began on October 2, 2006. By October 8, a team called WXYZConsulting had already beaten Cinematch's results. [7] By October 15, there were three teams who had beaten Cinematch, one of them by 1.06%, enough to qualify for the annual progress prize. [8] By June 2007 over 20,000 teams had registered for the competition from over 150 countries. 2,000 teams had submitted over 13,000 prediction sets. [2] Online DVD rental pioneer Netflix Inc. wants recommendations on how to improve its movie recommendation system, and is dangling a $1 million reward as an incentive. The prize , offered in a contest beginning Monday, is part of Netflix 's effort to sharpen its competitive edge as it continues a bitter duel with Blockbuster Inc. and prepares for an anticipated onslaught of services that make it easier to download movies onto computer hard drives. By spurring engineers to develop a better way to decipher consumer tastes, Netflix is betting its market-leading DVD service will become more useful to its 5.2 million subscribers and attract new customers. To win the prize , a software program must improve the accuracy of Netflix 's current movie recommendation system by at least 10 percent. The differences will be tracked by a program that quantifies how well the recommendation systems predict which movies will be liked or disliked by a profiled consumer. "Right now, we're driving the Model T version of what is possible," said Netflix CEO Reed Hastings. "We want to build a Ferrari and establishing the Netflix Prize is a first step." Recommendation software is expected to play an increasingly important role in electronic commerce as Internet companies expand their databases of past consumer behavior.
  • Community based business models: Aggregate Provide access Connect peer-to-peer
  • The first role as resource relates to the customer as source of innovation. The second role as co-creator relates to the customer participation in product development and testing.
  • More and more, companies are also using virtual customer environments to get innovation ideas from customers. This is Dell’s ideastorm.
  • This is SWIFT’s Innotribe.
  • Leveraging your customer: the multiple ways your customers can help your business

    2. 2. © Vlerick Business School
    3. 3. © Vlerick Business School
    4. 4. © Vlerick Business School
    5. 5. We need to become more customer centric!© Vlerick Business School
    6. 6. MARKET PERFORMANCE ORIENTATION© Vlerick Business School
    7. 7. VALUE CO-CREATION IS THE NEW PARADIGM Commoditization risk? More products and innovations How to be different? More Information, MARKET Value co-creation more choices Forum of conversations Customers are part of value chain More informed, network between customers, From product-centric to and empowered companies & communities personalize customer customer experiences Word of mouth Peer influence Customers are the best or the worst marketing toolSources: Adapted from Prahalad, C.K, Ramaswamy (2004). The future of Competition: Co-creating Valur with Customers. Harvard Business Review © Vlerick Business School
    8. 8. THE CONTRIBUTION REVOLUTION © Vlerick Business School
    9. 9. FROM WEB1.0 TO WEB 2.0 © Vlerick Business School
    10. 10. © Vlerick Business School
    11. 11. The winners are thosethat are able to connect
    12. 12. Suz01 “I work at home as a remote employee. There have Location been many times that I have wanted to treat a co- Unknown worker to a Starbucks for helping me out on a Member since project, or just to brighten their day. Wouldnt it March 2008 be neat if you could purchase a drink for someone via the Starbucks web site? The recipient gets an email stating, for example, "Suzanne bought you a 4275  drink!" The recipient prints the email (with a barcode) and takes it to their nearest Starbucks to redeem. “© Vlerick Business School
    13. 13. © Vlerick Business School
    14. 14. HOW CAN YOU LEVERAGE YOURCUSTOMER BASE? © Vlerick Business School
    15. 15. PROMOTERS Recommend© Vlerick Business School
    16. 16. NET PROMOTOR SCORE The one key question to ask How likely is it that you would recommend our company to a friend or colleague? © Vlerick Business SchoolSource: Satmetrix.com
    17. 17. NET PROMOTER SCORE Not at all Neutral Extremely likely likely 0 1 2 3 4 5 6 7 8 9 10 Promoto Detractors rsNPS = % Promotors - % Detracto © Vlerick Business School Source: Satmetrix.com
    18. 18. © Vlerick Business School
    19. 19. © Vlerick Business School
    20. 20. CONSULTANTS Give advice and feedback© Vlerick Business School
    21. 21. © Vlerick Business School
    22. 22. LEAD USERS Fabricate solutions to problems they face© Vlerick Business School
    23. 23. © Vlerick Business School
    24. 24. GUIDES Help others and provide support© Vlerick Business School
    25. 25. © Vlerick Business School
    26. 26. CONTRIBUTORS Provide information and knowledge© Vlerick Business School
    27. 27. GRANVILLE © Vlerick Business School
    28. 28. © Vlerick Business School
    29. 29. CROWDSOURCING © Vlerick Business School
    30. 30. THEFOUNDATIONFOR THEBUSINESSMODEL Community-based business models create and© Vlerick Business School leverage the platform to connect
    31. 31. PATIENTS LIKE ME © Vlerick Business School
    32. 32. ZAGAT  Founded by Tim & Nina Zagat in 1979  User-generated content when the word was not even invented  Consumer-provided restaurant reviews  Acquired by Google in September 2011 © Vlerick Business School
    33. 33. IDEAGENERATORS Deliver ideas and participate in co-creation© Vlerick Business School
    34. 34. © Vlerick Business School
    35. 35. © Vlerick Business School
    36. 36. THIS © Vlerick Business School
    37. 37. © Vlerick Business School
    38. 38. © Vlerick Business School
    39. 39. © Vlerick Business School
    40. 40. HOW CAN YOU LEVERAGE YOUR CUSTOMERBASE? © Vlerick Business School
    41. 41. THANK YOU!Prof. dr. ir. Marion DebruyneAssociate Professor & PartnerVlerick Business SchoolContact me:Marion.Debruyne@vlerick.comFollow me: MarionDebruyne © Vlerick Business School
    42. 42. FEEL LIKE SOME MORE?Introduction to Marketing Management (25 April2013)Product Management (7 May 2013)47 © Vlerick Business School #experiencevlerick
    43. 43. THANK YOU!