Description
Chapter 2, Slashing Your Customers' Costs and Risks (22 pages), explains how downstream strategy is based on broad innovation that starts with identifying the customer's costs and risks involved in the purchase decision. He presents examples of companies that have developed successful downstream innovations, such as Premier Auto Group, MasterBuilders, and Hyundai, and considers how a company could systemize the downstream tilt process. He lists questions that a company should ask about customer behavior as well as questions that their customer's might be asking of themselves. He outlines an inventory of customer touch points: pre-purchase, purchase, usage, maintenance, and disposal. He discusses two approaches to solving issues of customer costs and risks: operational and informational.