In other words:
The focus is not on products, but on the consumers' value -creating processes, where value emerges for consumers, and is perceived by them...the focus of marketing is value creation rather than value distribution.
SDl can help foster demand creation in the market and facilitates a pull marketing approach.
What does this mean for customers?
Consumers purchase based on perceived value and expect to realise a return.
Imagine, instead of being bombarded with advertising impression after impression, you are invited to contribute to the design of the offering you wish to receive from the marketplace. Gosh, that would feel like a breath of fresh air! Customers love this approach because it means they have the opportunity to improve perceived value through value co-creation. It results in much stronger alignment between expectations and reality, and it’s a built-in satisfaction mechanism.
Now, we’re not saying this is an easy practice. Adopting the tenets of SDL requires a significant philosophical change in how business thinks about innovation, commercialisation, and customers. So, what types of businesses are best suited to SDL? The answer is not so clear, but digital first or digitally enabled companies certainly have better access to the type of information and communication networks that help to facilitate the practice.
Thus, we’ll explore the digitisation of services next week!