Co-creation is a hot topic these days. Involving customers in the decision flow of a brand/company is one of the cool, new ways of doing marketing. In our research we found that some companies go a few steps further. Some succeed in intergrating the voice of the customer in ALL their decision flows. This paper describes the different steps to evolve from a one time co-creation project to structural collaboration.
Text of From co-creation to collaboration
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...... What to expect from this paper? ...... An inspirational view on structural collaboration between your company and the market, based on 15 interviews with senior executives of (global) brands from different industries. Main reasons why your company should be serious about structural collaboration with your customers. A clear overview of what will be key, in order to succeed with structural collaboration. An overview of some organizational measures your company will need to take when moving from one-off co-creation to structural collaboration.conversationmanagement.biz I @steven_insites I @tomderuyck
...... Definition: what do we mean with structural collaboration? ...... This paper describes the success factors for structural collaboration. When we talk about structural collaboration we mean the integration of the voice of the customer in all decision making flows of your company. In most companies, customers are only allowed to give feedback at the very end of a decision making flow through traditional market research. This paper gives insights on how to involve the customer in every single phase of the decision making flow on an ongoing basis. We acknowledge that collaboration can also be done with employees, but the focus of this paper is on collaboration with the market.conversationmanagement.biz I @steven_insites I @tomderuyck
Part 1conversationmanagement.biz I @steven_insites I @tomderuyck
Part 1 The facts about crowdsourcing, co-creation and collaboration. Co-creation is hot. In recent years, the world has been witness to a whole host of successful co-creation cases. Doritos allowed its fans to develop an advert to be shown during the Superbowl. Lays Crisps asked their customers to help choose a new flavour and snack manufacturer Mora produced a new croquette in collaboration with its consumers. Co-creation and crowd-sourcing are high on the agenda of the majority of todays marketers. It is seen as a quick way to experiment with this new way of working. There is nothing wrong with this, but in most cases it doesnt go any further than being just a trendy marketing campaign. The other problem with all of the examples above: they were all one-offs. There is no long term vision, nor intention to collaborate with the customer in a more structural way. Currently, only 3% of all companies have experience with developing new products and services with their consumers. In most cases1, this collaboration starts with a pilot project. If the test is successful, the collaboration can gradually be built up in a more structural manner. Less than one out of ten companies who co- create with their customers also use this collaboration for the launching of new products. We may say that the focus of co-creation is mainly focused on the initiation of new ideas2. But even if consumers are more or less continually involved in the process of dreaming up new ideas, this is still not enough to be able to speak of structural collaboration. Structural collaboration means that the customer is involved in all aspects of your companys life. 12011, InSites Consulting, Social media integration survey. 22011, Frost & Sullivan, R&D/innovation and product development priorities survey results.conversationmanagement.biz I @steven_insites I @tomderuyck
1. Getting new insights: exploration of the target group. Listen directly on how they perceive the product and service quality to optimize the commercial portfolio. This also implies discovering new market trends and unmet needs from your most relevant customers. 1 2 2. The development of new ideas and fine-tuning Insighting Developing of existing ideas. Create new commercial value together with the customer. By involving them in the product, campaign or brand development flow, you create a sort of self-fulfilling prophecy. The Business most relevant customers decide almost upfront Objectives what they will buy. 3. Key role during implementation. Include customers during the implementation phase to make sure that your interpretation of their ideas is done in a correct way. 4 3 4. Continuous evaluation and optimization. Use Optimizing Implementing the voice of the customer as a continuous flow of information to improve loads of smaller, tactical issues and to re-shape the future of your company with your customer as your primary consultant.conversationmanagement.biz I @steven_insites I @tomderuyck
And it pays off: a recent article in the Harvard Business Review claimed that companies are better able to solve all their main business problems if they collaborate closely with their consumers. 3The good news is that consumers are also willing to help companies out with this: more than half of them4 want to collaborate with one of their favourite brands around one or more of these issues. Moreover, recent research carried out at the University of Wageningen5 has demonstrated that products whose packaging is labelled co-created with consumers will sell significantly better than equivalent products that are not labelled in this way. In other words, consumers have more confidence in each others judgement than in the judgement of professional experts within a company. And they are probably right. In a recent study, we found that new product ideas that were co-developed with consumers score especially higher on being relevant and fulfilling ones needs6. The goal of this paper is to look into the necessary ingredients for a company to structurally get the consumer on board: every single day and for almost all decisions that need to be taken. As a consequence of this intense collaboration between your company and the market, decisions will no longer be imposed from above. And when the majority of your decisions are taken in this manner, following consultation with the market, you may really speak of structural collaboration. The consumer is truly represented in the boardroom. His voice can be heard in every part of your company, a voice that is every bit as loud as the voice of management and staff. You may even want to consider actually appointing a consumer as an honorary member of your board. 32008, Harvard Business Review, The contribution economy, Scott Cook. 42011, InSites Consulting, Social Media around the world study. 52011, MSc thesis: Van Dijk, J. (30 August 2011). The effects of co-creation on brand and product perceptions. Faculty of Social Sciences, Wageningen University, more info: Joycediscovers.wordpress.com 62011, InSites Consulting with Heinz, R&D study.conversationmanagement.biz I @steven_insites I @tomderuyck
Part 2conversationmanagement.biz I @steven_insites I @tomderuyck
Part 2 The objectives of structural collaboration. Companies who are working on structural collaboration with their customers have four clear objectives in mind with this approach: 1. Create better products, improve the customer service and communicate in a more impactful way. This is by far the most important objective for large brands to collaborate with consumers. By succeeding in this objective, the overall performance of the organization will increase. 2. Become more agile. By involving customers in every phase of a decision making chain, things move faster.