Let’s assume after graduating from BIM we have just begun working at a newly formed Online Marketing Department for an online retailer and our boss wants to use digital analysis to better understand our customers. Secondly, we also want to give back to our customers by correctly interpreting the valuable data they produce for us. Together with their data and our insights, we want to co-create a better shopping experience for our customers.
Imagine you are presented the same product with a price discount of 33.33% or a bonus pack quantity increase of 50%, which would you choose? If you’re like me your gut went with the 50%, but actually the two are economically equivalent – meaning they result in an identical price per unit. We are psychologically programmed to view discounts as a ‘reduction in loss’ and a bonus pack as a ‘gain.’
From the moment a household is connected to the electricity grid consumption data [in the form of energy use] is continuously being produced. For decades energy providers like E.ON had no means of capturing this data on an individual level, let alone in real-time. Frankly, E.ON could not offer its customers an optimal service without deeper insights into their consumption behavior. E.ON first needed a mechanism that would allow for a better understanding of their customer, alongside a value-proposition that would incentivize their customers to participate. The co-creation solution: Smart-Meters. These meters are technology that allow for the collection of energy use in real-time. Let us examine the building blocks of how this value is co-created.
Consumer Value Creation 