Customers at Work

1
Customers at Work

• Self-service customers can reduce costs and
  become co creators of value.
• By Peter C. Honebein Roy F. Cammarano

2
The Do-It-Yourself Shift

• THEN..
• In the past, customers expected all of the work
  done for them.
• ie They bag our groceries, and walk the cart
  out to our cars. It was a part of costumer
  service.
• NOW
• Customers find that performing these tasks
  themselves is faster and more efficient. It
  creates a larger sense of control and they find
  more value in being able to do it on their own.
• The Future Bank

Through vision, Access, incentive, and
expertise, companies can create a coproduction
experiences that ensure customers are co creators
of value.
3
Benefits Disadvantages of this Shift

• The Good
• Airlines save an estimated
• -3.52 when a customer buys a ticket online
• -2.70 when a customer conducts a self check-in.
• Software companies, banks, and even local cable
  providers can save more than 9 when customers
  manage services and receive support with self
  service websites.
• When Do-it-yourself costumers invest time in
  learning your new products, technology, and
  processes, they tend to come back for more

• The Bad
• If the customer doesnt understand how to use
  the new technology, they probably wont ever
  use it.
• An estimated 91 of costumers with a bad
  experience on a self-service site wont
  return.

4
Roles Customers Play

• Transactional Like to execute everyday business
  themselves. Use self check-out at the grocery
  store, eat at buffets,
• Traditional Favor do-it yourself in terms of
  home improvement, gardening, financial
  management, auto repair.
• Conventional Acquire tangible, self-contained
  products that help them perform tasks
  independently Ex A Snow-blower
• Intentional Engage in coproduction experiences
  to customize goods and services. Ex Build-A-Bear
• Radical Take coproduction experiences to new
  extremes
• Ex A man in California who modified his Toyota
  Prius batteries to achieve 80 miles per gallon.

5
Customer Experiences

• Default Experience-
• Lack of systematic design. The likelihood that a
  customer will fail here is high.
• Failures result from
• The experience isnt written as a script, plan,
  or process
• The experience hasnt been tested
• Employee tasks associated with the experience
  arent covered in training
• No one knows who decided why it should work this
  way???

• Designed Experience- Leaders of coproduction
  experiences take a systematic, multidimensional
  view of the situation.
• They establish internal cross functional teams
• These teams integrate customer information and
  experiences into design process
• Their goal is to truly understand the customer
  perspective.
• Ex Story of Al Yeganeh

6
Coproduction-Experience Model

• Key tactics that can provide insight not only
  into how to asses your customers experience, but
  also how to design them.

• Vision Customers are encouraged to develop a
  vision of how they would use products
• - Articulate goals actions
• - Must balance customer needs and company
  capabilities
• Feedback is crucial
• The closer the feedback is to performance, the
  more likely the goal will be achieved.

We shall not fail or falter we shall not weaken
or tireGive us the tools and we will finish the
job -Winston Churchill
Access Reflects the resources companies supply
so that customers can perform. Consists of
eight critical tactics policies, processes,
procedures, people, tools, interface,
information, and nuances. Ex Subway sandwiches
Its difficult to complain about a sandwich when
you directed the design.
7
Coproduction-Experience Model Continued

• The Incentive
• Incentives can be powerful motivators for
  convincing customers to try new products or stop
  bad behavior.
• Incentive types
• Recognition rewards
• Cash Rewards
• Disincentives

The Expertise The knowledge/skills customers
must retain to execute work required by the
coproduction experience
Home Depot Do-It-Yourself
8
Age of Sophistication

• What we know now
• Do it yourself customers are steadily increasing.
  
• Customers place more value in being a
  Co-creator of the product or experience they
  are buying.
• As a result companies adopting this form of
  service are creating conditions for customers to
  flourish in.