Experience - Operational - Tactics - R1

The Experience Tactics of
Ten Types of Innovation
Andreas Bastedo
Entrepreneurship Education, Universitas Ciputra, 2015

Let’s review on what we
learn before…
Universitas Ciputra l 2015 Entrepreneurship Education

Ten Types of Innovation
is a scientific approach of
creating a breakthrough
in innovation in your
business
They focused on 3
things…

Profit
Network Structure Process
Model
CONFIGURATION focusing on the innermost business system
Product Product
Performance System
OFFERING focusing on core product or services
Customer
Service Channel Brand Engagement
EXPERIENCE focusing on more customer facing element

Let’s go a little further
with what inside the
offering tactics

HOW TO SUPPORT AND AMPLIFY THE VALUE OF YOUR
OFFERINGS – ensure & enhance the utility,
performance, and apparent value of an offering.
Common example of service innovations include
product use enhancements, maintenance plans,
customer support, information's and education,
warranties and guarantees.
Profit Product Product Customer

Network Structure Process Performance System
Model
CONFIGURATION OFFERING EXPERIENCE

Customer
Added Value Self-Service
Concierge Superior Service
Guarantee Supplementary Service

Total Experience
Lease or Loan
Management
Loyalty Programs Try Before You Buy
User Communities/ Support
Personalized Service
Systems

01 Added Value Service
• Added Value Service works by including an additional service

or function as part of the base price
Considerations:
• Added service or function is advised not to differ from the
original product/service promise

01 Added Value Service

02 Concierge Service
• Concierge Service works by providing premium service by

taking on tasks for which customers don’t have time.
Considerations:
• Concierge services usually falls under value-driven cost
structure

02 Concierge Service

03 Guarantee Service
• Guarantee Service works by removing customer risk of lost

money or time from product failure / purchase error or pre-
approved condition
Considerations:
• Research pre-approved condition and validate it with your
control customer before officially launched it.

03 Guarantee Service

04 Lease/Loan Service
• Lease/Loan Service works by letting customers pay over time

to lower their upfront costs.
Considerations:
• Leasing is Usually Better Than a Loan

04 Lease/Loan Service

05 Loyalty Program Service
• Loyalty Program Service works by providing benefits and / or

discounts to frequent and high-value customers.
Considerations:
• Startups doesn’t need loyalty program, grow your customer
first

05 Loyalty Program Service

06 Personalized Service
• Personalized Service works by using the customer’s own

information to provide perfectly calibrated service.
• The goal is to create the personal touch. This is engagement
at a higher level
Considerations:
• Personalized service needs qualified dedicated sales force

06 Personalized Service

07 Self Service
• Self Service works by providing users with control over

activities that would otherwise require an intermediary to
complete.

07 Self Service

08 Superior Service
• Superior Service works by providing service(s) of higher

quality, efficacy, or which offer(s) a better experience than
any competitor
Considerations:
• Ensure that customer have a good experience

08 Superior Service

09 Supplementary Service
• Supplementary Service works by offering ancillary services

that fit with your offering
Considerations:

09 Supplementary Service

10 Total Experience Management Service
• Total Experience Management Service works by providing

thoughtful, holistic management of the consumer experience
across an offering’s lifecycle.
• The goal is to optimize interactions from the customer's
perspective and, as a result, foster customer loyalty.
Considerations:
• the six disciplines for great customer experience are strategy,
customer understanding, design, measurement, governance
and culture
10 Total Experience Management Service

11 Try Before You Buy Service
• Try before you buy Service works by letting customers test

and experience an offering before investing in it.
Considerations:
• Research your customer to deliver acceptable terms and
conditions before using the try before you buy service

11 Try Before You Buy Service
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12 User Community/Support Service
• User Community/Support Service works by providing a

communal resource for product and service support, use, and
extension
Considerations:

12 User Community/Support Service

HOW YOU DELIVER YOUR OFFERINGS TO CUSTOMERS
AND USERS – encompass all the ways that you connect
your company’s offering with your customers and user.
Channel innovation are particularly sensitive to
industry context and customer habits. Creating an
extraordinary experience with minimal friction (direct
or indirect selling)

Model

Customer
Context Specific Indirect Distribution
Cross-Selling Multi-Level Marketing
Diversification Non-Traditional Channels
Experience Center On-Demand
Flagship Store Pop-Up Presence
Go Direct

01 Context Specific Channel
• Context Specific Channel works by offering timely access to

offerings that are appropriate for a specific location, occasion,
or situation

01 Context Specific Channel
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02 Cross Selling Channel
• Cross Selling Channel works by offering appealing additional

products, services, or information that will enhance an
experience in situations where customers are likely to want to
buy them.

02 Cross Selling Channel
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03 Diversification Channel
• Diversification Channel works by adding and expanding into

new or different channels

03 Diversification Channel
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04 Experience Center Channel
• Experience Center Channel works by creating space that

encourages your customers to interact with your offerings—
but purchase them through a different (and often lower cost)
channel.

04 Experience Center Channel

05 Flagship Store Channel
• Flagship Store Channel works by creating a retail outlet to

showcase quintessential brand and product attributes.
Considerations:
• Flagship store carries the company brands and its aspiration.
Make sure that the brand and its promise are present

05 Flagship Store Channel

06 Go Direct Channel
• Go Direct Channel works by not using traditional retail

channels and connect directly with customers.
Considerations:
• Going direct can cut significant costs from the system
• tends to alienate wholesalers and retailers

06 Go Direct Channel

07 Indirect Distribution Channel
• Indirect Distribution Channel works by using others as

resellers who take responsibility for delivering an offering to
the final user.
• This model usually has three levels: the producer, the
wholesaler and the retailer
Considerations:
• All parties in the channel tend to protect their own best
interests. Thus, retailers are pitted against wholesalers, and
wholesalers try to best producers

07 Indirect Distribution Channel
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09 Multi Level Marketing Channel
• Multi Level Marketing Channel works by selling bulk or

packaged goods to an affiliated but independent sales force
that turns around and sells it for you.
Considerations:
• MLM system has a bad reputation in some countries and
areas

09 Multi Level Marketing Channel

10 Non-Traditional Channel
• Non-Traditional Channel is when business entity employ

novel and relevant avenues to reach and service customers.
Considerations:
• Non traditional channel boils down to the way the product is
purchased by consumers

10 Non-Traditional Channel

11 On Demand Channel
• On Demand Channel works when business entity deliver

goods in real-time whenever or wherever they are desired.
Considerations:
• Limit the on demand channel to the terms and conditions that
serve the best need and want of the customer first, once you
get the hang of it, then expand

11 On Demand Channel
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12 Pop up Presence Channel
• Pop up Presence Channel works by creating a noteworthy but

temporary environment to showcase and / or sell offerings
• Customers are attracted to exclusivity.
Considerations:
• Pop up presence has this ‘fear of missing out’ quality to them.
• Customer usually looks for unique services/products, localized
assortments, optimal pricing, convenience, and a fun
experience

12 Pop up Presence Channel
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HOW YOU REPRESENT YOUR OFFERINGS AND
BUSINESS – help to ensure that customers and user
recognize, remember, and prefer your offering to those
of competitors or substitutes. Brand innovation its all
about branding your component and making
customers aware of their value can build both
preference and bargaining power.

Model

Customer
Brand Extension Component Branding
Brand Leverage Private Label
Certification Transparency
Co-Branding Values Alignment

01 Brand Extension
• Brand Extension works by offering a new product or service

under the umbrella of an existing brand
Considerations:
• New product or services doesn’t have to be in the same
industry as the original brand, but need to carry the same
ideology to maintain the original brand vision

01 Brand Extension
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02 Brand Leverage
• Brand Leverage works by allowing others to use your brand

name to lend them your credibility and extend your
company’s reach
Considerations:
• Usually works best in services industry

02 Brand Leverage
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03 Certification
• Certification works when business entity develop a brand or

mark that signifies and ensures certain desirable
characteristics in third party offerings

03 Certification

04 Co-Branding
• Co-Branding works when business entity combine brands to

mutually reinforce key attributes or enhance the credibility of
an offering
Considerations:
• Usually being used to raise awareness and generate sales

04 Co-Branding
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05 Component Branding
• Component Branding works when business entity brand a

discrete piece of the offering to make the whole appear more
valuable.

05 Component Branding

06 Private Label
• Private Label works when business entity Provide goods

made by others packaged under its own brand

06 Private Label

07 Transparency
• Transparency works when business entity let customers see

into your operations and participate with your brand and
offerings
Considerations:
• Co-create with community

07 Transparency

08 Value Alignment
• Value Alignment works when business entity make its brand

stand for a big idea or a set of values and express them
consistently in all aspects of your company
Considerations:
• Create an align-community to help the value alignment brand
to existing customers

08 Value Alignment
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HOW YOU FOSTER COMPELING INTERACTIONS –
provide broad avenues for exploration and help people
find ways to make parts of their lives more
memorable, fulfilling, delightful even magical. Even
simple gestures like elegant and intuitive packaging
can extend and elevate the experience customers have
with a company.

Model

Customer
Autonomy and Authority Experience Simplification
Community and Belonging Mastery
Curation Personalization
Experience Automation Status and Recognition
Experience Enabling Whimsy and Personality

01 Autonomy and Authority
• Autonomy and Authority works when company grant users

the power to shape their own experience.
Considerations:
• User can act as your product tester and market validation
indications

01 Autonomy and Authority

02 Community and Belonging
• Community and Belonging works when company facilitate

visceral connections to make people feel they are part of a
group or movement.

02 Community and Belonging

03 Curation
• Community and Belonging works when company create a

distinct point of view to build a strong identity for yourself
and give your followers exactly what they want.

03 Curation

04 Experience Automation
• Experience Automation works when company remove the

burden of repetitive tasks from users to simplify their lives
and make new experiences seem magical

04 Experience Automation

05 Experience Enabling
• Experience Enabling works when company extend the realm

of what’s possible to offer a previously improbable
experience

05 Experience Enabling
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06 Experience Simplification
• Experience Simplification works when company reduce

complexity and focus on delivering specific experiences
exceptionally well

06 Experience Simplification

07 Mastery
• Mastery works when company helps customers to obtain

great skill or deep knowledge of some activity or subject

07 Mastery

08 Personalization
• Personalization works when company alter a standard

offering to allow the projection of the customer’s identity
Considerations:
• Personalization Tactics can be Lookalike-Inspired
Segmentation, Dynamic Content, Time Zone, Segmentation by
Purchase Behavior, or Customer-Specific Needs

08 Personalization

09 Status and Recognition
• Status and Recognition works when company offer cues that

confer meaning, allowing users— and those who interact with
them—to develop and nurture aspects of their identity
Considerations:
• Synchronize status and recognitions attributes to either
international or local norm.

09 Status and Recognition

10 Whimsy and Personality
• Whimsy and Personality works when company humanize

your offering with small flourishes of on-brand, on-message
ways of seeming alive

10 Whimsy and Personality
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Successful Innovator use
many types of innovation

Quiz
In your opinion, which tactics of

innovation suits your business
model better?

Thank You
This module is created for courses in Universitas Ciputra and it is intended

to be used as a teaching material module, any reproduction is not
permitted without authorization
Entrepreneurship Education, Universitas Ciputra, 2015

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The Experience Tactics of

Ten Types of Innovation

Entrepreneurship Education, Universitas Ciputra, 2015

Universitas Ciputra l 2015 Entrepreneurship Education

Universitas Ciputra l 2015 Entrepreneurship Education

CONFIGURATION focusing on the innermost business system

OFFERING focusing on core product or services

EXPERIENCE focusing on more customer facing element

Universitas Ciputra l 2015 Entrepreneurship Education

Universitas Ciputra l 2015 Entrepreneurship Education

Profit Product Product Customer

CONFIGURATION OFFERING EXPERIENCE

Universitas Ciputra l 2015 Entrepreneurship Education

EXPERIENCE focusing on more customer facing element

Added Value Self-Service

Concierge Superior Service

Guarantee Supplementary Service

Universitas Ciputra l 2015 Entrepreneurship Education

• Added Value Service works by including an additional service

Universitas Ciputra l 2015 Entrepreneurship Education

Universitas Ciputra l 2015 Entrepreneurship Education

• Concierge Service works by providing premium service by

Universitas Ciputra l 2015 Entrepreneurship Education

Universitas Ciputra l 2015 Entrepreneurship Education

• Guarantee Service works by removing customer risk of lost

Universitas Ciputra l 2015 Entrepreneurship Education

Universitas Ciputra l 2015 Entrepreneurship Education

• Lease/Loan Service works by letting customers pay over time

Universitas Ciputra l 2015 Entrepreneurship Education

Universitas Ciputra l 2015 Entrepreneurship Education

• Loyalty Program Service works by providing benefits and / or

Universitas Ciputra l 2015 Entrepreneurship Education

Universitas Ciputra l 2015 Entrepreneurship Education

• Personalized Service works by using the customer’s own

Universitas Ciputra l 2015 Entrepreneurship Education

Universitas Ciputra l 2015 Entrepreneurship Education

• Self Service works by providing users with control over

Universitas Ciputra l 2015 Entrepreneurship Education

Universitas Ciputra l 2015 Entrepreneurship Education

• Superior Service works by providing service(s) of higher

Universitas Ciputra l 2015 Entrepreneurship Education

Universitas Ciputra l 2015 Entrepreneurship Education

• Supplementary Service works by offering ancillary services

Universitas Ciputra l 2015 Entrepreneurship Education

Universitas Ciputra l 2015 Entrepreneurship Education

• Total Experience Management Service works by providing

Universitas Ciputra l 2015 Entrepreneurship Education

• Try before you buy Service works by letting customers test

Universitas Ciputra l 2015 Entrepreneurship Education

• User Community/Support Service works by providing a

Universitas Ciputra l 2015 Entrepreneurship Education

Universitas Ciputra l 2015 Entrepreneurship Education

Profit Product Product Customer

CONFIGURATION OFFERING EXPERIENCE

Universitas Ciputra l 2015 Entrepreneurship Education

EXPERIENCE focusing on more customer facing element

Context Specific Indirect Distribution

Cross-Selling Multi-Level Marketing

Diversification Non-Traditional Channels

Experience Center On-Demand

Flagship Store Pop-Up Presence

Universitas Ciputra l 2015 Entrepreneurship Education

• Context Specific Channel works by offering timely access to