Question 10 of 100: Have you created value on your way to the hills?
If you are Swedish, there’s a good chance that as I write you are sitting in your car heading for the hills and your annual winter sports break. If so, consider this. Could it be that your car is worth a little bit more this week, when you and your family squeeze in all your skis, ski boots and dreams of a happy week of sun and snow? According to modern marketing theory it is, because value-in-use means value is created by using the car. It stirs themarketing pot.
In our Agency of the Future survey we have tried to understand how CMOs see the future. One aspect I find particularly fascinating is how they think brands will be created in the future.
It seems that just about everyone is convinced that brands will continue to be one of a company’s most important assets. By contrast, there is very little consensus concerning exactly how these brands will be created.
78 percent believe that future brands will be built by co-creation.
One of the concepts we wanted to look more closely at is co-creation. There is no universally accepted definition of co-creation and the border between co-creation and its rival concept, open innovation, is hazy. Despite this lack of clarity, 78 percent of CMOs agree completely or to a great extent that future brands will be “co-created” with their customers. What does this mean?
I am lucky enough to have the fascinating job of developing customer-based business strategies for large corporations. We use co-creation as the business development process where we invite and involve substantial numbers of people. Anything from thousands of customers and employees who come up with their own ideas, then vote and comment on each other’s, to external experts that have the ability to digitize and create new services and customer experiences.
Gone is the old model where innovation was only for the few.
But co-creation is so much more than creating new ideas. We are moving from a product-oriented world to a service-dominated one, where the focus is on intangible resources, co-creation and relationships. Co-creation is also about creating mutual value and customers being co-producers in the creation of value, as in the example of the trip to the hills.
Gone is the old product-centric model.
How will co-creation affect the agency of the future? If you ask me: A great deal.
I don’t want to get bogged down in communication models, but we all surely agree that the communication model of the future has to be interactive. Today the sender/message/receiver model tends largely to be bi-directional, thanks to the hyperconnected customer. Maybe it has always been like that?
That’s why modern marketing campaigns usually have an element of co-creation in them. In its simplest form, co-creation could be a customer interact with a company by sharing a video on YouTube or by writing a review. A more advanced form could be where a company works alongside its customers to create a new customer experience, such as a new personalized, digital service. Think Nike Fuelband and Nike+.
Perhaps co-creation is the communication model of the future. The boundaries between product/service/advertisement are disappearing and surely the old adage that doing is better than saying still applies. And doing things with your customers is maybe the most effective communication of all.
Gone is the traditional agency. The only question is when?
Have a great winter sports break.