iPod Cocreators

At first glance, an iPod seems like a product low on cocreation. The model in the minds of many of us is that we buy an iPod and download our favorite songs to it. However, there is a cocreation trend with this product called "Podcasts", in which customers record their own audio shows and make it available to other iPod owners (WSJ, 7/22/05, B1, B5).

It appears that when Apple spotted this trend, it wrapped an experience around it and launched a directory of Podcasts. Apple generates no revenue, but supports the cocreation in order to promote the iPod platform, sell more iPods, and create a crossover effect to its music store.

Customers want a role in cocreating a product experience. Companies can ignore it, let it happen on its own, or step in to embrace it and control the context. Apple's strategy here appears to support the do-it-yourself content creation that continues to make the iPod a winner.

Threats to Do-It-Yourself Real Estate

In my mind, For Sale By Owner has always had connotations of a fly-by-night home buying experience. While I would like to sell my own home (and put the 6% commission in my pocket), the marketplace has developed in such a way whereby the Realtor experience has become associated with trust and convenience. But it is no wonder that in this day and age that discount realtors have come onto the scene to shift some of the work to homeowners in exchange for flat-fee commissions.

Even though discounters push to provide a more viable do-it-yourself model for real estate transactions, the traditional realtors are pushing back hard to defend their turf (WSJ, 7/18/05, A2). They are lobbying to tighten real estate transaction laws and using other tactics to keep out the DIYers. One discount realtor ran an advertisement promoting "self service" transactions -- full service realtors were appalled and, as a block, pressured the newspaper's advertising staff to limit where such ads could appear in the paper's real estate sections.

Building Expertise Through Paid Experts

Pharmaceutical companies have been slowly increasing their usage of doctors to teach other doctors about new products (WSJ, 7/15/05, A1, A2). The performance the companies want is more prescriptions -- and it appears to be working. Through the development of expertise, Merck estimates the return on investment of doctor-to-doctor educational sessions is double that of its own sales force.

Hmmm....Interesting coproduction concept in which customers (doctors) assume the role of employees (salespeople) and become the brand ambassadors.

What other types of companies might benefit from setting up experiences in which customers educate other customers? What might the experience look like?

Punish Me, But Only When I'm Bad

Several car rental firms have enacted new punishments for no-show customers (WSJ, 7/12/05, D4). If you reserve a car, but don't show up or cancel less than 24-hours before pickup, you get spanked with a $10 to $25 penalty.

But Vanguard Car Rental (Alamo and National brands) has added a twist. Customers can earn a 10% discount on car rental fees if they pay in advance. Furthermore, Alamo now allows online check-in -- another way to enhance the committment of customers.

How Vision Aids Customer Performance (for guys anyway)

You must check this out. Seems like the folks in Europe are really trying to modify customer performance with a very innovative solution. See Seth Godin's blog for the photo.

Airport, restaurants, and hotels in Amsterdam have silk-screened a fly in urinal bowls in public rest rooms. The purpose? To improve the aim of gentlemen such that urinals stay clean.

Think of this from the standpoint of a coproduction experience -- in terms of modifying customer performance. The solution is all about VISION -- set the goal (shoot the fly) and provide feedback (the user can see if he is hitting the fly). Customer performance improves and restrooms become cleaner places.

Apple's "Studio" Enhances Expertise

In Apple Computer retail stores, an area called the Studio is enhancing customer expertise (RGJ, 7/10/05, 2D). Staffed by experts in digital media, these walk-up counters offer customers face-to-face support in learning such tasks as ripping CDs, processing digital photos, and editing video.

We've seen this strategy in other retailers. Through the enhancement of customer expertise, the expectation is that customers will learn new skills, tell others about those skills (or show-off the results), and buy more add-ons and accessories.

Color Me Anything

In our book Creating Do-It-Yourself Customers, we talk a bit about the performance aspects of color -- a nuance of a coproduction experience. I came across this company -- ColorCon. It specializes in manufacturing color coating systems for pills, food, and packaging. It seems that they are linking their services to the enhancement of various brands -- through their exclusive Brand Enhancements Services (BEST).

Perhaps they are the ones who helped create those little blue pills :-)

The Blended Coproduction Experience

Charles Schwab Corp. is trying a blended solution for DIY customers (WSJ, 7/5/05, D2). Long known for enabling individual investors to do investing themselves, Schwab over the past few years has pushed the other way -- in terms of offering more financial advisor/money manager services for customers who got tired of doing it themselves.

The service -- aimed at "emerging affluents" -- provides investors a list of "vetted" stocks and mutual funds from which to choose. Customers are still doing do-it-yourself investing, but Schwab is reducing the complexity in terms of investment choices. Advice and counseling is available if the investor desires such services.

An interesting solution in a very complex industry.

Self Checkout Success Stories

Is self-checkout at the grocery store faster? St. Cloud Times reporter Dawn Peakedmp investigated self checkout at local grocery stores. What she found is what the industry is claiming -- decreases transaction time (read "customer time") and enables businesses to retain more customers. Other interesting facts include self-checkout at Home Depot increasing customer satisfaction by 10%. Up to 50% of customers at certain retailers are using self-checkout.

Her other conclusion: self-checkout appeals to the younger, technology-savvy generation.

Think what this generation will expect in ten years.

Self-Check-In Hosptial Style

DIY customers are now finding it easier to check in at hospitals (Orlando Business Journal, 6/28/05). Beth Israel Hospital in Newark has installed MediKiosk systems. These systems enable patients to fill out medical record forms and check-in for their appointments. The hospital says the systems have reduced the time it takes new patients to check-in by 25%, and returning patients by 75%.