[Question 7] Customers incentives

by Yann_Gerardi Sun Oct 25, 2009 11:46 pm

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What kind of incentive can a company applying service-logic innovation use to increase customers participation?

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by florent_lefevre Mon Oct 26, 2009 12:16 pm

When you say participation, do you mean feedback from the customers ? I think feedback is motivated by emotions. If the experience was plain, you will not have a lot of feedback. However, if the experience was cool or catastrophic, there you will have comments. Knowing that they can have an impact, positive or negative, is a nice incentive.

by Janick_Edinger Mon Oct 26, 2009 12:30 pm

The best incentive a company can give, is the satisfaction of a customer's need. If the participation results in a positive outcome for the user, he doesn't need any more incentives. Two examples:

The goal of a YouTube user is to publish his own videos. That is exactly the contribution YouTube wants him to do.

A very simple example, you would usually never think about, is the post or every other shipping company. Sending a letter or a paket is the user's contribution. At the same time his need is satisfied.

Those examples show how to secure sustainability for a company or product.

by karolina_koterbska Mon Oct 26, 2009 1:21 pm

The more company provide smart solutions with frozen knowledge in products the more it can incentive customers increasing their future requirements, so they can be more creative since they know what they need and want.

Can you give some examples of product that already provided you some easy solutions [Question 7] Customers incentives Alien

but it also increased your desire for more solutions?

My EX: is cellphone which i really wanted to be able of life voice to voice translation of ..let's say 50 languages... or being able to have inside small projector so i can see on wall all my stored data without necessity of connecting to any screen..for guyz it might be helpfull if have a built in shaver [Question 7] Customers incentives Icon_rr

for girls paralyser for selfdefence [Question 7] Customers incentives Affraid

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by Doris Yu Mon Oct 26, 2009 3:35 pm

I think the best incentive is giving something that customer will consider it is valuable enough for her to take action to participate.

Beauty products do a lot of "trial" programs in TW to gather general publics testimonials.

Eg. OLAY distributed 1,000 or more jars of new product, not samples but the ready to sell product, to the enrolled and selected target consumers for 1 month trial. There consumers were required to fill a questionnaire to rate how they feel about the product and post an article about how her experience with the new product in her own blog. Then, OLAY used these testimonials as part of the new product campaign, claiming that 98% of users are satisfied with the product.

I think it is tricky that since consumers are given a jar of new product for free, unless the product is really bad, otherwise according to Taiwanese nature, only very few people will feedback "unsatisfied". However, this tricks are still played by many cosmetics brands in TW now.

by karolina_koterbska Mon Oct 26, 2009 3:36 pm

Integration of knowledge resources is great incentive for customers.

If i know that company provide me catalogue of products, im happy to have lots of time to make my choice, its even better when it also provide extensive personal consulting, transportation door-to-door service, and other additional support..the more the better

Anyone of you ever bought product [Question 7] Customers incentives Icon_cheers

because of integrated service solution?

My EX: will be cellphone again, i liked one specific model, but instead of running all arround city, i just ordered it from online store of my network provider, and my decision mostly was based on that i dont even have to go out to buy it or later repair it if i have any problems, because i can always call and order service to my home..

by karolina_koterbska Mon Oct 26, 2009 3:46 pm

Doris Yu wrote: I think it is tricky that since consumers are given a jar of new product for free, unless the product is really bad, otherwise according to Taiwanese nature, only very few people will feedback "unsatisfied". However, this tricks are still played by many cosmetics brands in TW now.

If the product is free of charge under condition that it is good, how greedy customers can give trustfull feedback? [Question 7] Customers incentives Icon_eek

by BartekWu Mon Oct 26, 2009 4:05 pm

I agree with Janick. The main incentive is satisfaction or fulfilment of users needs. Apple's approach was built on that - costumers wanted an alternative and original approach, new product different system - and they got it. Now they can built their own Apple kingdom - computer connected to iTunes connected to TV connected to iPod... As long as they are satisfied - they will keep buying the product.

by BartekWu Mon Oct 26, 2009 4:07 pm

btw Karolina you have a cool ex Razz

by karolina_koterbska Mon Oct 26, 2009 4:23 pm

Besides that products fulfill your needs there can be many subsitutes for it. So nothing incentive costumers like PRICE..because price can convince you which product you want to choose in group of subsitutes, and also can convince you that you need new product which you didnt even consider earlier to buy, so price can creat your new need.
EX. i dont need another 8th handbag..but in taipei sometimes because of price when i really like one i cant help miself from buying it..even if it's the 9th [Question 7] Customers incentives Icon_redface

by shirleyo Mon Oct 26, 2009 4:52 pm

karolina_koterbska wrote:
Doris Yu wrote: I think it is tricky that since consumers are given a jar of new product for free, unless the product is really bad, otherwise according to Taiwanese nature, only very few people will feedback "unsatisfied". However, this tricks are still played by many cosmetics brands in TW now.

If the product is free of charge under condition that it is good, how greedy customers can give trustfull feedback?

For example, telcom company integrates different services, such as fixed line, broadband, and cell phone in one bill is a integrated service. Some might think it is convienient but some might not. Amazon.com also provide integarted services. In the traditional bookstore, we need to buy books in a physical location, but when you buy books on amazon.com, it integrates the searching, odering, and shipping as well as readers feedback at a time.

by Naomi_Karnovsky Mon Oct 26, 2009 5:13 pm

Karolina'a example made me think of the cellphone example - which seems to me as the most integrated offering possible. Who remembers a time when cell phones were only used to make/get calls? (Not to mention a time without cell phones at all [Question 7] Customers incentives Icon_razz

... ) Nowadays, a cell phone is also a camera, an MP3 player, a PDA, etc., and the number of functions and uses only gets bigger. And customers like it. I know many people that just have to have the newest and coolest thing in the market. Do you remember the lines outside Apples' stores when they first launched the iPhone? I guess that's the best example for a "smart offering" that just answers customers' various needs and satifies them not only with the different uses and functions but also with the fashion aspect and social needs.

by Yann_Gerardi Mon Oct 26, 2009 5:20 pm

In other terms, you have to provide an entirely new experience associated with your service-logic innovation. If customers can quickly feel new emotions, new kinds of satisfaction, during the service they will be definitely motivated to participate.

by Vincent_Alliaga Mon Oct 26, 2009 5:52 pm

Yann_Gerardi wrote:In other terms, you have to provide an entirely new experience associated with your service-logic innovation. If customers can quickly feel new emotions, new kinds of satisfaction, during the service they will be definitely motivated to participate.

I'm not sure the experience has to be entirely new. Just entertaining and interesting. Because true originality is very hard to obtain!

by karolina_koterbska Mon Oct 26, 2009 6:39 pm

Vincent_Alliaga wrote:
Yann_Gerardi wrote:In other terms, you have to provide an entirely new experience associated with your service-logic innovation. If customers can quickly feel new emotions, new kinds of satisfaction, during the service they will be definitely motivated to participate.

I'm not sure the experience has to be entirely new. Just entertaining and interesting. Because true originality is very hard to obtain!

If i feel new experience with product, if it meet my needs i might have feel motivation, but besides all incentive methods mentioned above i think that consumer must be clear that his participation is possible and will be accepted by the company. So according to case the role of user can be changed who becomes also producer,participant in value creation together with company.

EX. good example of this is my case from class about HP, which organized "engine room" what is best example of provinding excitement, satisfaction, meeting needs, and give consumer participation in value creation.

by edwige_aoudiani Mon Oct 26, 2009 7:04 pm

I agree with people who says it has to be a brand new experience for the customers. It needs to be attractive, and to give the customer the sensation it will bring something new in his consumer life. Otherwise why should he adopt it, or change his usual way of consumption?
So the way the company will market and advertise its new innovation service is very important and a real determinant of its success: attract the customer by telling him how new it is and how simple and pleasant it is to use it.

by TA_Max_Huang Mon Oct 26, 2009 7:39 pm

We can refer to "Maslow's hierarchy of needs" for the answer. If a company want its customers to form a social group. The products or the services it provides must fulfill their "love and belonging" level of need. The premise is that the products or the services must be good enough for its customers to use.

by chloé_laluc Mon Oct 26, 2009 8:42 pm

I believe that what customers are seeking first is their satisfaction. Based on that statement, I think that the more the customer is involved in value creation the higher his/her satisfaction, and so the higher his/her participation queen

by julie Mon Oct 26, 2009 9:50 pm

Proximity and belonging! The company should be close to her customers if she wants us to participate into this logic. Customers must have the feeling to belong to a group, a family, a tribu...

by soraya_berdeil Mon Oct 26, 2009 11:21 pm

yes,as it is mantionned in the case "there is no distinct separation between production and consumption" customers integrate knowledge resources. The fact that the costumer is included in the process will enhance the feeling the firm is close to them. But i think it is also important that the customer has the feeling the company respond to his or her "personal and unique" need , and doing so it will increase customer's satisfaction

by betul_batik Mon Oct 26, 2009 11:55 pm

As Chloé said, I think that, first of all, people are looking for their own satisfaction. So, in my opinion, personalized services are a key incentive. If people feel involved in the product they purchased, they will be more satisfied because they know better than anyone what they want.

Secondly, people also purchase products because, that way, they feel like part of a group. Actually they need people to recognize them (need for esteem, Maslow's pyramid) so it could be also a clue for companies to increase consumers' participation.

by kathia Morano Tue Oct 27, 2009 12:08 am

Another kind of incentive for customer's participation: In some restaurants, you can eat free if you are a tester (customer who will gives opinion about the meal he just had, he has some criterias to fullfill and should give an objective opinion depending upon settlements given by the restaurant). This kind of incentive can be also used by company which integrated service-logic innovation. The company can present the product, explaining the integrated value and the customer will have some criterias to follow to improve the quality of the product. Thanks to this incentive,customers which are testing for free at the frirst time can be really attracted by the product and finally buy it. Same for other customers who know that the company is testing its products to volonteers => can have a real positive impact on the image of the company; and push the sales even I agree it' s more complicated to have people who tried the product from that kind of company

by taniapaola_gutierrez Tue Oct 27, 2009 1:36 am

Another interesting way of motivating consumers' participation is by identifying the need of the market segment. For example, if the market wants low prices, a good way not to lower prices and apply the service-logic innovation may be to use cupons or discounts for costumers and use these as a trade off so they feel motivated to participate. Sometimes the costumer need to feel that he has gotten something tangible (like a cupon or discount) in order to want to buy a product and keep loyal to the brand. And better if the producer applys service-logic innovation to keep the costumber happy with the full services of the company and not just with the product as exchange of his money.

by karolina_koterbska Tue Oct 27, 2009 2:23 am

Good incentive for customers is convince them that because company understand needs, it also knows price metrics which allow prices to vary automatically with value delivered and so it can keeps all customers within the “Price ≈ Value” range. By this way customer has feeling that he gets what he pays for and choice depends from him so actually he is able to cocreate value.

by karolina_koterbska Tue Oct 27, 2009 2:40 am

EX: once i saw very happy [Question 7] Customers incentives Icon_cheers

excited

lady in supermarket grabbing 2 packs of coffee sticked together with beautifull label PROMOTION with price 400NT..while same coffee was on next shelve for 160NT one separate bag..

Assurement of great deal from producer [Question 7] Customers incentives Lol

can easily disable customers from clear mind and simple calculation [Question 7] Customers incentives Icon_scratch

durring process of buying goods of first need. But when it comes to innovations customers are more demanding and clear about their choice. That is why when changing customers role, the company should provide trustfull, logic and clear information about delivered value.

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