Managing the Operational Behavior of Customers

5 important questions on Managing the Operational Behavior of Customers

In which 3 steps can managers plan their actions carefully to attempt to influence customers' behavior?

  1. Diagnose the problem
  2. Design a mutually beneficial operations role for customers
  3. Test and improve the solution

Wherefrom can the operational problems caused by customers' discretionary behavior range?

From seemingly minor to issues that can have a large impact on profitability.

Which set of questions can guide the creation of value for both parties?

  • What do customers gain from their new role? Are they better off than before? Are they still better off than they would be in the hands of competitors?
  • What does the company gain from customers’ new role? What is the intended impact of their new behavior on the company’s performance?
  • Is it realistic that customers will behave the way the company wants them to? What assumptions are managers making about human motivation?
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What is the difficulty in creating value for customers?

It often comes from untested assumptions about their behavior and perceptions.

What are the tree most common mistakes of testing the solution?

  1. Creating testing environments that are substantially different from the real environment.
  2. Creating incentives - whether implicit or explicit - for the test to have a positive outcome.
  3. Designing a test that has no controls.

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