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Co-Creation: Why Join the Wave?

Due to the invention of the Internet, the traditional communication landscape has changed. The new structures for human interaction are formed such as instant messaging, internet forums and social networking. Because of these revolutionary changes in communication channels, the Internet has become an essential tool for the customers to air their complaints with regards to the product and services. And as consumers become active participants in an open discussion with the companies, the makers are forced to adapt the co-creation concept to create a value that is inclined by their market.

As we all know, co-creation is the co-construction of value with the consumers. Nowadays, the co-creation theory has already took over the business world as it is been widely used by big and small businesses. But, this rationale is already enough to join the wave?

Here are some reasons why co-creation is the strategy that you should be really taking advantage of.

Consumers have hidden talents, which are waiting to be unleashed.

Customers are experts in their own right. Their expertise is based on the experience they have gained by using a certain product. Beneath this product experience lays the consumers’ ingenuity in defining their choice of goods that reflects their preferences. Thus, tapping the consumers’ creativity leads to product and service innovation and improvement.

A cost-effective way to innovate faster.

Co-creation builds an interactive platform for firms and active customers wherein they can share their ideas and renew each other’s resources and capabilities.   The combined thoughts will form a unique value for products and services, which allow the establishments to avoid product and service redundancy. Also, the need for a market research is lessened because companies are interacting directly with their consumers. The entire product and service development process speeds up because companies are innovating in the right direction.

It improves company-consumer relationships.

In the traditional active firm-passive consumer approach, the firm usually acknowledges the grievances of the consumers, but in the co-creation theory, the company also listens and values the markets’ opinion. Co-creation empowers the consumers to share their views in creating and improving products and services. Through this, the interaction between the company and the consumer increases because the communication process becomes direct and the barriers are eliminated. Thus, increased interactions can lead to trust as consumers will feel that their views are being valued by the company. And gaining the consumers’ trust can result to viral marketing through ‘word of mouth.’

It promotes a new type of competitive advantage.

Products and services nowadays, are all being commercialized, and could no longer differentiate from one another. With co-creation, the firm can differentiate itself from its competitors through interaction. As Venkat Ramaswamy said, “The advantage comes from learning faster what customers and stakeholders value. This capability allows you to innovate faster.”

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