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Michael Schrage - Who Do You Want Your Customers to Become?

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Who do you want your customers to become?

According to MIT innovation expert and thought leader Michael Schrage, if you arent asking this question, your strategic marketing and innovation efforts will fail.

In this latest HBR Single, Schrage provides a powerful new lens for getting more value out of innovation investment. He argues that asking customers to do something different doesnt go far enoughserious marketers and innovators must ask them to become something different instead. Even more, you must invest in their capabilities and competencies to help them become better customers.

Schrages primary insight is that innovation is an investment in your client, not just a transaction with them. To truly innovate today, designing new products or features or services wont get you there. Only by designing new customersthinking of their future state, being the conduit to their evolutionwill you transform your business.

Schrage explains how the above question (what he calls The Ask) will incite you and your team to imagine and design ideal customer outcomes as the way to drive your businesss future. The Single is organized around six key insights and includes practical exercises to help you apply the question to your current situation. Schrage also includes examples from well-known companiesGoogle, Facebook, Disney, Starbucks, Apple, IKEA, Dyson, Ryanair, and othersto illustrate just what is possible when you apply The Ask.

Marketing executives, brand managers, strategic innovators, and entrepreneurs alike should understand how successful innovation rebrands the client and not the product. A requisite question for its time, Who Do You Want Your Customers To Become will liberate you and your team from innovation myopiaand turn your innovation efforts on their head.

HBR Singles provide brief yet potent business ideas, in digital form, for todays thinking professional.

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For Beth Ann With gratitude appreciation and love for becoming a true partner - photo 1

For Beth Ann

With gratitude, appreciation, and love for becoming a true partner

Copyright 2012 Harvard Business School Publishing Corporation

All rights reserved

No part of this publication may be reproduced, stored in or introduced into a retrieval system,or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior permission of the publisher. Requests for permission should be directed to , or mailed to Permissions, Harvard Business School Publishing, 60 Harvard Way, Boston, Massachusetts 02163.

First eBook Edition: August 2012

ISBN: 978-1-4221-8785-2

Apple Computer cofounder Steve Jobs

Former Google Executive (from authors private correspondence)

Ryanair CEO Michael OLeary

Register now to receive book updates and a discount off of any future editions of Who Do You Want Your Customers to Become? which may include your comments if you share them as described below! Registration is available through December 31, 2012 at www.hbr.org/books/schrage .

If youd like to help me continue to shape the ideas in this book, heres how to contribute your feedback, stories, and thoughts:

  • If you have links to a story or examples that should be includedor even just a comment about the contentplease tweet them to @harvardbiz with the hashtag #theask.
  • If your thoughts are too long for Twitter, feel free to send a direct message to our team on Facebook ( http://www.facebook.com/HBR ).
  • I will actively be facilitating contributions and conversations here on my blog at http://blogs.hbr.org/schrage/ .
  • Visit the books web site: http://hbr.org/product/who-do-you-want- your-customers-to-become/an/11245-PDF-ENG

Your comments are essential to evolving and improving this work; if you leave remarks by September 30, 2012, they may well be used in future editions of this HBR Single.

My thanks in advance,

Michael Schrage

This brief book explains how a simple question who do you want your customers to become? transforms strategic, marketing, and innovation insights. This questionwhat Ill call The Asksuccessfully provokes managers and entrepreneurs into reimagining, redefining, and redesigning their customers future. Whether youre in professional services, business-to-business, or consumer products, understanding what innovations ask customers to become fundamentally changes how to invest to create new value.

The Ask is central for any serious business strategist, marketer, or innovator because it acknowledges a fundamental truth: Customers change. Always.

Customers are constantly becoming something else. They adapt. They learn. They grow. Theyre not finicky consumers passively expecting markets to please, satisfy, or delight them; theyre actually dynamic collaborators and authors of their own futures. Theyre not stupid; theyre skeptical. They want to make sure theyre going in the right direction.

This book is about understanding, defining, and influencing where your customers are going and who they want to become when they get there. The Ask offers a lightweight but high-impact methodology for aligning strategic, marketing, brand, and innovation leaderships around customer transformation . That transformation comes from innovatively investing in who you want your customers to become.

The Problem The Ask Solves

You know your customers want more value. You know your firm has talented people and innovation potential. But your market research, branding efforts, and strategic insights feel tired. You seem to have the same innovation conversations over and over again. Youre frustrated. So are your colleagues. You know you need a different perspective and new energy. You know you need radically better insights into who your customers want to become and how your innovations should get them there.

This book gets you to those insights fast. Using case examples and simple self-tests, it helps elicit who you want your customers to become and why. You will rethink how to align key brand, marketing, and innovation investments with your customers future. The result? Your strategic awareness will skyrocket. Youll revitalize your brand positioning. Your customers and prospects alike will look at your marketing efforts with new eyes.

Whether youre a marketing executive, brand manager, entrepreneur, or strategic innovator, you will never look at your innovation effortsor your customers futuresthe same way. You will understand how successful innovation goes beyond sales, marketing, and serving customers better; you will learn how innovation creates better customers.

The Road Map for This Book

This book starts with a detailed description of The Ask and explains why The Ask is one of the most powerful questions you can ask about your business, just as important as Theodore Levitts famous Marketing Myopia question, What business are we in?

One way to appreciate the power of The Ask for your business is to first apply it to yourself. The next section encourages internalizing The Ask by looking at some of the innovations youve adopted recently and thinking about what theyve asked you to become. How have they changed who you are? Do you likeor resentwhat theyve asked you to become?

The core of the book explores six key insights that follow from the question, Who do you want your customers to become? and the practical implications for serious innovators, marketers, and strategists:

  1. Innovation is an investment in human capitalin the capabilities and competencies of your customers. Your future depends on their future.
  2. Innovation is about designing customers, not just new products, new services, and new user experiences.
  3. Customer vision is as important as corporate vision. Your corporate vision and mission statement should respect and reflect your vision of your customers future.
  4. Align customer vision (what you want your customers to become) with user experience (what your innovations ask them to do).
  5. If you cant be your own best beta, find and design the customers who can.
  6. Anticipateand managethe dark side of The Ask.

Examples, key questions, and practical exercises build upon and extend these insights to real-world practice and implementation.

More than a novel intellectual exercise or analytical framework, The Ask offers a fundamentally different question of how organizations canand shouldcreate value.

The AskWho do you want your customers to become?is as important to determining enterprise success as, What business are we in? How do we delight our customers? and What is our brand? The Ask goes beyond entrepreneurial truism and clich. Solutions that merely please, serve, meet the needs/specs, or delight customers dont go far enough. They represent yesterdays marketing and design paradigms. Theyre too rooted in the now. They misunderstand innovations real impacttransforming customers.

Look at the auto industry. Henry Fords mass-produced Model T was a fantastic innovation. But its biggest impact, by far, was turning ordinary people into drivers. Does anyone doubt that Toyotas Prius, Hondas Civic (natural gas) and other automotive greenovations are less tales of technological ingenuity than global initiatives asking drivers to become more environmentally responsible? What is the Priuss innovation ask? That auto owners become as ecologically correct and ingenious as the vehicles they drive. Toyotas Prius literally and figuratively becomes as much a vehicle for eco-transformation as transportation.

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