Chapter 4: Customer Experience and Value Creation Flashcards
the total customer experience is comprised of what three things
1.Purchase Experiences
- Information Gathering
- Prioritizing Needs
- Evaluating Alternatives
- Order Placement & Payment
- Usage Experiences
- Delivery & Installation
- Product Usage
- Product Maintenance
- Product Repair - Replacement Experiences
- Product Upgrades
- Returns and Warranty
- Product Replacement
- Product Disposal
empathetic design
truly understanding and improving customer experiences and needs
- Filming customer product use is one form of the empathic design. It is an observa- tional approach to understanding customer needs and discovering the problems that cus- tomers commonly encounter in acquiring, using, and disposing of a product.
lead users
– Highly knowledgeable
– Push product boundaries
– Provide ideas and insights
**identify key benefits
what is the main advantage of lead users?
they show/identify key benefits
What is the process for leveraging lead user customer experience?
Lead Users
Identify lead users who have extended the use of the product.
Customer Experience
Study how lead users have extended product usage.
New Benefits
Discover how the product could be modified to improve usage.
Product Development
Develop a more complete customer solution or new product
what is the goal of “reverse innovation”?
learn what customers want but cannot get from existing products
what is the reverse innovation/invent to order process?
- LISTEN
Gather lead users and probe for new insights. - IDENTIFY
Determine new product benefits that address unmet customer needs. - CHOOSE
Verify size of opportunity and select the most lucrative opportunities. - DEVELOP
“Invent to Order” with continuous customer involvement and feedback. - LAUNCH
Value proposition built around competitive advantage.
describe FAB
Features
– tangible and intangible characteristics
Advantages
– Performance results
Benefits
– individuals value the advantage provided
– how the product meets the needs
What do customers buy (FAB)?
Benefits
what is reverse innovation usually associated with?
discontinuous innovation
mass collaboration
main purpose is to collaborate with a large group of people who have expertise and diverse perspectives that extend beyond the walls of the organization
what is the main difference between mass collaboration and crowdsourcing
The main differ- ence between crowdsourcing and mass collaboration is the level of multidirectional interac- tion. Through mass collaboration, a business not only solicits the contributions of people all over the globe but collaborates with them on initiatives that add significant value.
what are the four groups that business most frequently involve in mass collaboration?
- prosumers
- consumer product-inventors
- consumers who take product usage beyond its intended capability. They often modify a product in a way that improves performance or serves an altogether new purpose. - professionals or specialists (can be done through partnerships)
- Suppliers
- Using the traditional approach, a company would develop the design specifications for a product and the suppliers would use those specifications in preparing their bids—a process that greatly limited the use of suppliers’ creativity. With mass collaboration, suppliers become part of the design process.
- Channel intermediaries are another group that businesses frequently involve. An inter- mediary that sees customers daily develops a good knowledge of their likes and dislikes, as well as a keen awareness of their needs –> can lead to greater customer value if involved in collaboration - Employees
- A business’s frontline employees are perhaps in the best position to see possibilities for improvements to products and processes. These employees, however, can rarely break through the firewall surrounding the high-level employees who evaluate ideas and take steps to adopt new product benefits and processes. By encouraging employee participa- tion through mass collaboration, a business overcomes the invisible barrier between the front line and the front office.
crowdsourcing
Focused Problem Solving and Product Idea Generation
–> often part of a contest to solve specific problems or solicit ideas
Life cycle cost formula
Life-Cycle Cost = Price Paid + Acquisition Costs + Usage Costs
+ Ownership Costs + Maintenance Costs + Disposal Costs
