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Advisories: These examples contain warnings and advice that should be considered as you are using the approach to cost improvement described below.

Examples: We offer brief write-ups for each method describing a situation where the idea is used or implied. Use these supporting examples in order to expand your range of ideas. These examples are neither mutually exclusive nor collectively exhaustive.

We offer you both a short version and a long version of some of these products and services concepts. We have enough examples of some of these concepts to expand the concept into more specific concepts with their examples. Use the short version to complete your innovation in less time. Use the long version for more in-depth innovation.

Final customer buying from a product producer. Final or end-user customers incur four cost steps in connection with the product sold by a producer.

Use Steps: Use steps include all the customer's value added activities or the consumption of the product itself. These steps include all the costs the customer incurs in employing the product in its intended use.

  1. Knowledge: Add knowledge

    1. Process where product is used – Explain how product can or should operate in customer cost system.

      1. Warnings and advice Examples>>

      2. Acquire Short Examples>> Long Examples>>

      3. Use Short Examples>> Long Examples>>

      4. Maintain Examples>>

      5. Other Examples>>

  2. Resources: Reduce resources required for the use of the product.

    1. Money – Reduce the money the customer uses with the product. For more ideas on using pricing, please see the Improve/Pricing section of StrategyStreet.

      1. Reduce the level of payment for use of the product Short Examples>> Long Examples>>

      2. Reduce the customer's spending on People, Purchases or Capital costs the customer uses with the product itself Short Examples>> Long Examples>>

      3. Reduce the customer's spending on other products used with the product Short Examples>> Long Examples>>

      4. Improve the customer's profits directly Short Examples>> Long Examples>>

    2. Time – Reduce the time the customer must spend with the product.

      1. Reduce steps the customer must use with the product Short Examples>> Long Examples>>

      2. Improve wait times in the process Short Examples>> Long Examples>>

      3. Help customers obtain and use related products Short Examples>> Long Examples>>

      4. Customize the product Functions for the customer's use Examples>>

      5. Enable customer to use product at will rather than on a schedule Examples>>

    3. Energy – Reduce the energy the customer uses with the product.

      1. Effort – Reduce the physical constraints on the customer Short Examples>> Long Examples>>

      2. Health – Reduce the toll the product takes on the customer's health Short Examples>> Long Examples>>

  3. Experience: Enhance the experience the customer has with the product.

    1. Add new appeal to the senses.

      1. Warnings and advice Examples>>

      2. See Short Examples>> Long Examples>>

      3. Touch Examples>>

      4. Smell Examples>>

      5. Hear Examples>>

      6. Taste Short Examples>> Long Examples>>

      7. Multiple Short Examples>> Long Examples>>

    2. Associate the company or the product with an image to increase customer pleasure in using the product.

      1. Warnings and advice Examples>>

      2. Project an image of the or capabilities of the firm Short Examples>> Long Examples>>

      3. Project an image of the values of the firm Short Examples>> Long Examples>>

      4. Suggest personal characteristics of the user of the product Short Examples>> Long Examples>>

    3. Increase the customer's sense of security with the product.

      1. Warnings and advice Examples>>

      2. We can fix problems promptly Examples>>

      3. Your investment is safe Short Examples>> Long Examples>>

      4. Your person is safe Short Examples>> Long Examples>>

    4. Entertain the customer while waiting for or using the product.

      1. Add entertainment as part of the main product Examples>>

      2. Add entertainment as addition to the main product Examples>>

      3. Provide food while customer waits for or uses the product Examples>>

      4. Other Examples>>

Back to Final Customers Purchasing from Product Producer

Basic Strategy Guide Users Go to Step 18

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