Shaking Up The Value Chain

Always wondered how to get your customer in touch with your Brand DNA? Struggling not to tell them again what you stand for but to really let them feel it? Volvo’s marketing department in the Netherlands gives us a clear example how this can be done. Of course there are some down sides on this initiative which I will get to later, but the main idea is clear example of experience co-creation.

Click on the picture for a short animation

Most of the time co-creation is associated with cooperation during the development stage of products and services. Less attention is paid to co-creation in other stages of the value chain such as distribution, marketing and for instance recycling. This is a missed opportunity because once part of the value creation experience, customers would like to stay involved in other phases as long its relevant and has a balanced pay off.

So what’s the deal Volvo is offering? Let’s take out some facts first: in a radio commercial Volvo is offering their C30 for the reduced price of 20.900 Euro. But that’s just one part of the extraordinary deal: in return of this deduction you have to travel to the factory in Sweden to get the car yourself! Of course this trip is a well managed customer journey. You can expect to see Gothenburg, enjoy nice meals and poke around in the Volvo museum. This all comes to a climax in the Volvo Delivery Center, where clients face their brand new car and are instructed by a ‘delivery consultant’. And finally there is the pleasant drive home through Denmark, with your green-conscious mind strengthened knowing just to consume one tank of gasoline.

Wondering what Volvo drives to arrange it this way? Is it really originated by a smart business case? Like ‘We do not have to transport our car to you, so you get in return a better price and a nice experience.’ Unfortunately that’s not the case. If it would be the case, this would be a perfect example of co-creation in distribution, which is the basis of their Swedish blue and yellow neighbor.

Here is the counter side: the C30 isn’t born in Sweden, it actually leaves the assembly-line in a Belgium plant in Gent. The car is shipped to Sweden where it meets its new owner that just flew in and that owner drives back to nearly 100 kilometers of the car’s origin. This routine now catches some media attention because the eco-friendly C30 has an extra eco-footprint even before it is on the road.

You can argue about this eco-aspect of the deal, but for me it is a great example how to connect the customer to your brand DNA. It’s not just the car, it is the complete Swedish experience of quality design, food and service. Those elements become part of the brand image in a natural way because the interested clients want to have that piece of emotion attached to their car. They are searching for more than car functionality.

Volvo is just there. If this initiative would have a matching business case, clients cooperating to reduce transportation movements, helping Volvo to save money and giving them a reduction plus a nice brand journey in return, it would perfect.
 Let’s rethink your business. What elements in the value creation process can be shared with your clients? Are there smart distribution opportunities for your product, while raising the brand experience at the same time? I am sure we have discovered just a small part of all co-creation possibilities. For sure the consumer is ready to participate, so why wait?