Production through co-creation

Co-creation describes a production process in which the creation of a product is achieved through the cooperation of a company and private individuals. Since consumers are actively involved in the creation of products they also become the producers. Consumers can create products themselves, write reviews for example for hotels, or design products individually (mass customization).


Benefits for Customers and Companies

Users benefit from co-creation through the optimization of the product, more trust and reliability. This can be assured by customer ratings. The companies benefit from improved customer loyalty and simplified customer information as well as reduced costs in the development of new products. This collaboration between customers and companies enables a seamless design of products and services as both are usually wanting the same things. Allowing customers to have a large amount of input benefits companies by having instant market research and the customers benefit from feeling heard and creating a product they actually want. Co-creation will therefore result in more sales due to the market already desiring the product or service.

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Challenges of Co-Creation

Whilst co-creation is beneficial to companies and customers its not free from challenges. A company must be clear on these challenges before entering into any kind of co-creation with their customers. One risk is that by having customers consider current products or methods they may uncover some aspects of the company that seem negative or lesser than. This may make customers lose faith in the company or sour the brand image. Co-creation consists of two main steps: Submissions where customers submit their ideas and selection where the company chooses the best contributions. Unfortunately some the of submissions will often be poor and the company will have to find a way to reject these ideas without upsetting customers. The company will also need to ensure the customers are incentivized, otherwise engagement could be poor.