Thursday, September 21, 2006

Some simple concepts...

Alright, got a few free moments now... it has actually been quite a busy day.

So as a business, what is the number one thing you need to do? Focus on the customer... who they are and what they want. Lets be realistic, if you don't have a product or service that somebody needs or wants you have no place trying to sell it. That is a wheel that has been reinvented a million times and it just doesn't work out. If it's not there, you need to develop it.

Capture your process via blueprint. A blue print is going to allow you insight on where you can improve processes, where your lines of interaction take place, and so on. In the case of IKEA, by examining their strategy and customers expectations they were able to realize the value of using those customers as coproducers. So their product is sent from where it is manufactured in a box, and it is warehoused in a box, and it is sold in the same box. The customer takes part in the process and does a good deal of the manual labor themself. Many other businesses have realized the potential of using the customer as a coproducer (car wash stations, buffets, and so on).

So the question I leave you with tonight (and there will be more tomorrow)... is:

How can you more effectively leverage your customer in the service process to create value for both of you?


Anonymous eggmom said...

And most likely the people who buy at IKEA are happy to put their new article together. It fit into their car without renting a trailer, it wasn't too expensive and it holds what they want it for. And they don't have that much invested in it that they feel guilty about getting new things a few years later if their wallets afford it.

9/23/2006 8:56 AM  
Blogger Justin said...

Good point, it is great that most anything you buy there you can fit into your car and take home. Gone is the concept of purchasing something and having to worry about fitting it into a truck (or having it delivered), banging it up while getting it into the house, etc.

Start customers off young with the $70 dresser, and a couple of years later they will come back for the $200 one. That'll explain why it is always packed!

9/23/2006 9:52 AM  

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