Tag Archives: IKEA

How To Create the IKEA Effect

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A Customer Experience That Will Be Appreciated

How To Create The IKEA Effect

GUEST POST from Shep Hyken

When reaching out for customer service and support, most customers still prefer to communicate with a company or brand via the traditional phone call. That said, more and more customers are attracted to and embracing a do-it-yourself customer service experience, known as self-service.

I had a chance to sit down with Venk Korla, the president and CEO of HGS Digital, which recently released its HGS Buyers Insight Report. We talked about investments CX (customer experience) leaders are making into AI and digital self-support and the importance of creating a similar experience for employees, which will get to in a moment. But first, I want to share some comments Korla made about comparing customer service to an IKEA experience.

The IKEA Effect

The IKEA effect was identified and named by Michael I. Norton of Harvard Business School, Daniel Mochon of Yale and Dan Ariely of Duke, who published the results of three studies in 2011. A short description of the IKEA effect is that some customers not only enjoy putting furniture together themselves but also find more value in the experience than if a company delivered pre-assembled furniture.

“It’s the same in the customer service/support world,” Korla said. “Customers who easily resolve their issues or have their questions answered on a brand’s self-service portal, either through traditional FAQ pages on a website or something more advanced, such as AI-powered solutions, will not only be happy with the experience but will also be grateful to the company for providing such an easy, fulfilling experience.”

To support this notion, our customer service research (sponsored by RingCentral) found that even with the phone being the No. 1 way customers like to interact with brands, 26% of customers stopped doing business with a company or brand because self-service options were not provided. (Note: Younger generations prefer self-service solutions more than older generations.) As the self-service experience improves, more will adopt it as their go-to method of getting questions answered and problems resolved.

The Big Bet On AI

In the next 18 months, CX decision-makers are betting big on artificial intelligence. The research behind the HGS Buyers Insight Report found that 37% of the leaders surveyed will deploy customer-facing chatbots, 30% will use generative AI or text-speech solutions to support employees taking care of customers, and 28% will invest in and deploy robotic process automation. All of these investments are meant to improve both the customer and employee experience.

While Spending On CX Is A Top Priority, Spending On Employee Experience (EX) Is Lagging

Korla recognizes the need to support not only customers with AI, but also employees. Companies betting on AI must also consider employees as they invest in technology to support customers. Just as a customer uses an AI-powered chatbot to communicate using natural language, the employee interacting directly with the customer should be able to use similar tools.

Imagine the customer support agent receives a call from a customer with a difficult question. As the customer describes the issue, the agent inputs notes into the computer. Within seconds, the agent has the answer to the question appear on their screen. In addition, the AI tool shares insights about the customer, such as their buying patterns, how long they have been a customer, what they’ve called about in the past and more. At this point, a good agent can interpret the information and communicate it in the style that best suits the customer.

Korla explains that the IKEA effect is just as powerful for employees as it is for customers. When employees are armed with the right tools to do their jobs effectively, allowing them to easily support customers and solve their most difficult problems, they are more fulfilled. In the HGS report, 54% of CX leaders surveyed cited talent attraction and retention as a top investment priority. So, for the company that invests in EX tools—specifically AI and automation—the result translates into lower turnover and more engaged employees.

Korla’s insights highlight the essence of the IKEA effect in creating empowering customer experiences and employee experiences. He reminds us that an amazing CX is supported by an amazing EX. As your company prepares to invest in AI and other self-service tools for your customers, consider an investment in similar tools for your employees.

Download the HGS Buyers Insight Report to find out what CX decision-makers will invest in and focus on for 2024 and beyond.

Image Credits: Pixabay
This article originally appeared on Forbes.com

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Designing Products for Longevity and Reuse

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Designing Products for Longevity and Reuse

GUEST POST from Chateau G Pato

The modern economy is rapidly evolving towards sustainability, and businesses are shifting their focus to designing products that do more than just meet immediate needs. The principles of circular economy — reusability, reparability, and longevity — are becoming integral to product design strategies. As a human-centered change & innovation thought leader, I am constantly exploring ways in which companies can embrace these principles to not only cultivate consumer loyalty but to also play a vital role in ecological stewardship.

In this article, we delve into how designing products for longevity and reuse can offer substantial benefits both for companies and the environment. Furthermore, I will highlight two case studies of organizations that have successfully implemented these principles.

The Importance of Longevity and Reuse

Designing for longevity and reuse involves creating products that are durable, easily repairable, and adaptable. This approach not only reduces waste but also conserves resources by extending the product’s lifecycle. In turn, consumers benefit from products that offer better value over time, increasing brand loyalty and trust.

Companies adopting these strategies are not just future-proofing their business; they are responding to a growing consumer demand for sustainable products. As awareness around environmental issues increases, consumers are more inclined to support brands that are committed to sustainability.

Case Study 1: Patagonia

Company Overview

Patagonia, an outdoor clothing and gear company, is a pioneer in the sustainability movement. Their business model integrates environmentally friendly practices at every level of their operations.

Longevity and Reuse Strategies

Patagonia emphasizes product durability and offers an ironclad guarantee to repair or replace damaged products. Their “Worn Wear” program encourages customers to trade in used gear for store credit, which is then refurbished and resold. This initiative not only extends the life of their products but also reduces the volume of textile waste.

Impact and Results

Patagonia’s commitment to longevity and reuse has reinforced its brand image as a leader in sustainability. The Worn Wear program has successfully diverted thousands of garments from landfills, and it fosters consumer loyalty by aligning with their environmentally conscious values.

Case Study 2: IKEA

Company Overview

IKEA is one of the largest home furnishing retailers in the world, known for its affordable and innovative design.

Longevity and Reuse Strategies

IKEA’s circularity transformation includes creating products that are easier to take apart and recycle. Their “Circular Hub” offers customers the opportunity to return used furniture in exchange for vouchers, supporting a secondary market for their products.

Impact and Results

IKEA’s focus on designing for longevity and reuse has redefined their product lifecycle management. The Circular Hub not only mitigates waste but also maximizes resource efficiency. Additionally, these initiatives have enhanced IKEA’s reputation as a forward-thinking, sustainable brand.

Key Takeaways for Designing Long-Lasting Products

Organizations can incorporate several strategies to ensure their products are designed for longevity and reuse:

  • Durability: Invest in quality materials and rigorous testing to enhance product lifespan.
  • Modularity: Design products that are easy to repair and upgrade to adapt to changing needs.
  • Incentives for Returns: Encourage customers to return unwanted products for upgrading or recycling.
  • Education: Inform consumers about maintaining and repairing products.

The Path Forward

As we move towards a more sustainable future, the design of long-lasting, reusable products will become imperative. Companies that adopt these principles will not only reduce their environmental footprint but also thrive in a market increasingly driven by conscious consumerism.

The journey towards sustainability is ongoing, but by embracing innovation—and placing human needs and environmental impact at the heart of product design—we can collectively create a positive impact for society and the planet.

For more insights on sustainable innovation, you can search this web site using the search bar or categories in the sidebar on the right.

Extra Extra: Because innovation is all about change, Braden Kelley’s human-centered change methodology and tools are the best way to plan and execute the changes necessary to support your innovation and transformation efforts — all while literally getting everyone all on the same page for change. Find out more about the methodology and tools, including the book Charting Change by following the link. Be sure and download the TEN FREE TOOLS while you’re here.

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Sustainable Business Practices Require Eco-Innovation

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Sustainable Business Practices Require Eco-Innovation

GUEST POST from Chateau G Pato

In today’s world, the intersection of innovation and sustainability is no longer optional; it is a necessity. Businesses are increasingly expected to adopt eco-friendly practices not just for compliance, but as a core component of their operations. The concept of eco-innovation, which refers to the development of products and processes that contribute to sustainable development, plays a pivotal role in redefining how businesses operate while minimizing their environmental impact. This article delves into the essence of eco-innovation and examines two insightful case studies of companies that have carved out a niche in sustainable business practices.

Understanding Eco-Innovation

Eco-innovation is the amalgamation of new approaches, ideas, products, and services that lead to both improved economic performance and reduced environmental footprint. It involves redesigning traditional business operations, adopting circular economy principles, and leveraging technology to create sustainable solutions. The key to successful eco-innovation lies in embedding sustainability into the very DNA of business strategies, rather than treating it as an add-on.

The Benefits of Eco-Innovation

  • Economic Growth: Eco-innovative companies can tap into new markets and create job opportunities by developing green products and services.
  • Resource Efficiency: By optimizing the use of natural resources, businesses can reduce waste and lower operational costs.
  • Competitive Advantage: Companies that lead in sustainability often enjoy enhanced brand reputation and customer loyalty.
  • Risk Management: Eco-innovation helps in mitigating the risks associated with regulatory changes and resource scarcity.

Case Study 1: Patagonia—Taking the Lead with Responsible Retail

Patagonia, the outdoor apparel company, exemplifies how eco-innovation can be seamlessly integrated into business operations. With a strong commitment to environmental stewardship, Patagonia leads by example in the retail industry, demonstrating that profitability and sustainability can coexist.

Sustainable Practices

  • Worn Wear Program: Patagonia encourages customers to buy used apparel through its Worn Wear program, which promotes recycling and reduces clothing waste. This initiative not only reduces the need for new resources but also strengthens customer relationships by fostering a community focused on sustainability.
  • Material Innovations: The company invests heavily in researching and developing sustainable materials, such as organic cotton and recycled polyester. Patagonia was one of the first to adopt Yulex pure—a sustainable alternative to neoprene—for wetsuits.
  • Supply Chain Transparency: Patagonia maintains a high level of transparency in its supply chain, ensuring fair labor practices and environmental standards. It shares comprehensive details about the factories, materials, and environmental impacts involved in its products.

Impact

Patagonia’s initiatives have significantly reduced its carbon footprint while also inspiring the wider industry to follow suit. It consistently invests 1% of its sales in environmental causes, showcasing a deep commitment to social responsibility. This has resulted in a loyal customer base that values the company’s dedication to making a positive impact on the planet.

Case Study 2: IKEA—Building a Circular Business Model

IKEA’s journey toward sustainability involves rethinking the traditional linear business model in favor of a circular approach. As one of the world’s leading furniture retailers, IKEA has set ambitious goals to embrace eco-innovation and influence consumer behavior globally.

Circular Economy Initiatives

  • Circular Product Design: IKEA designs products with the end in mind, emphasizing durability, reparability, and recyclability. The company’s goal is for all products to be made from renewable or recycled materials by 2030.
  • Take-Back Programs: Through initiatives like the furniture take-back and resell program, IKEA encourages customers to return used furniture. This program aims to extend product life cycles and reduce waste.
  • Sustainable Supply Chain: IKEA has partnered with suppliers to implement sustainable forestry practices and improve raw material sourcing. By adopting responsible sourcing standards, the company ensures that its wood and cotton are sourced sustainably.

Impact

IKEA’s dedication to sustainability has led to significant waste reduction and resource efficiency. The circular strategies have not only decreased the environmental impact but also opened up new revenue streams. By 2025, IKEA aims to become a fully climate-positive company, setting a benchmark for the retail industry.

The Road Ahead

As we witness the rise of eco-innovation, it is crucial for businesses to embrace change and leverage innovation for sustainable development. The transformation requires an organization-wide commitment to rethink business operations and prioritize the planet alongside profits.

Steps to Foster Eco-Innovation:

  • Culture of Innovation: Cultivate an organizational culture that encourages experimentation, sustainability-focused thinking, and cross-functional collaboration.
  • Collaboration with Stakeholders: Partner with suppliers, customers, and communities to co-create sustainable solutions and drive system-wide changes.
  • Investment in R&D: Allocate resources to research and development of sustainable technologies and materials.
  • Commitment to Education: Educate employees, customers, and other stakeholders about the importance of sustainable practices to drive widespread adoption.

In conclusion, eco-innovation is not just about doing less harm; it’s about doing more good. Companies like Patagonia and IKEA demonstrate that sustainable business practices can lead to significant positive impacts for both the environment and the bottom line. As leaders and change-makers, it is our responsibility to champion eco-innovation and pave the way for a sustainable future.

Extra Extra: Because innovation is all about change, Braden Kelley’s human-centered change methodology and tools are the best way to plan and execute the changes necessary to support your innovation and transformation efforts — all while literally getting everyone all on the same page for change. Find out more about the methodology and tools, including the book Charting Change by following the link. Be sure and download the TEN FREE TOOLS while you’re here.

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A Human-Centered Approach to Innovating with Purpose

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A Human-Centered Approach to Innovating with Purpose

GUEST POST from Chateau G Pato

In today’s rapidly changing world, the emphasis on technology and digital transformation is more pronounced than ever. However, successful innovation cannot rely solely on advancements in technology. A human-centered approach is paramount to ensure that innovations do not just exist for the sake of change, but serve a meaningful purpose and positive impact on people’s lives.

Case Study 1: IKEA – Simplifying Sustainable Living

As part of its commitment to sustainability, IKEA launched its “Sustainable Living” initiative. Recognizing that people increasingly want to live sustainably but are often put off by the perceived complexity and cost, IKEA focused on simplifying and demystifying sustainable choices.

Through a human-centered design approach, IKEA engaged with customers around the world to understand their sustainability challenges. The insights gained led to practical solutions such as affordable solar panels, water-saving taps, and energy-efficient lighting, all designed with the customer’s ease of use in mind. This initiative proved to be a success, reflecting in increased customer engagement and loyalty.

For more insights on human-centered design principles and how they can be combined with artificial intelligence, explore Braden Kelley’s article on Artificial Innovation.

Case Study 2: IBM’s Inclusive Design Initiative

IBM has long been a pioneer in leveraging technology for innovation, and its Inclusive Design initiative is a testament to its human-centered approach. Realizing that true innovation must cater to diverse needs, IBM focused on accessibility in their product design and development.

By embedding inclusive practices, IBM worked with both their employees and customers, including individuals with disabilities, to co-create products that are accessible to everyone. This initiative not only improved product accessibility but also drove innovation culture within IBM, setting them apart as a leader in both tech and social responsibility.

If you are interested in how organizations can build innovation capabilities that embrace inclusivity, check out my piece on Building an Innovation Ecosystem: Lessons from Silicon Valley.

The Core Principles of Human-Centered Innovation

Human-centered innovation involves empathizing with and understanding the end-users. Here are core principles to guide innovation teams:

  • Empathy: Truly understanding and empathizing with users’ needs and challenges.
  • Collaboration: Engaging diverse perspectives in the ideation process.
  • Iteration: Prioritizing rapid prototyping and learning from feedback.

By embedding these principles, organizations can ensure their innovations serve the targeted needs of their users while contributing positively to society.

Conclusion

Innovation is not just about generating new ideas but about serving people and improving lives. By adopting a human-centered approach, organizations can develop innovations that are not only effective and efficient but also meaningful and impactful. Join us on this journey towards purposeful innovation—transform aspirations into reality, and make a difference that matters.

Extra Extra: Because innovation is all about change, Braden Kelley’s human-centered change methodology and tools are the best way to plan and execute the changes necessary to support your innovation and transformation efforts — all while literally getting everyone all on the same page for change. Find out more about the methodology and tools, including the book Charting Change by following the link. Be sure and download the TEN FREE TOOLS while you’re here.

Image credit: Unsplash

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Achieving Sustainability Through Design Thinking

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Achieving Sustainability Through Design Thinking

GUEST POST from Chateau G Pato

In a world increasingly mindful of sustainability, Design Thinking emerges as a crucial methodology for fostering sustainable innovation. This human-centered approach not only prioritizes user needs but also embraces systemic thinking to solve complex ecological challenges. Through empathy, creativity, and iteration, Design Thinking paves the path to more sustainable products, services, and systems.

The Essence of Design Thinking

Design Thinking is a process that encompasses understanding users, redefining problems, and creating innovative solutions to prototype and test. Its stages—empathize, define, ideate, prototype, and test—ensure a holistic view that extends beyond immediate user needs to consider environmental and societal impacts.

Case Study 1: IKEA’s Sustainable Design Journey

Creating a Better Everyday Life

IKEA, the global leader in affordable home furnishings, showcases a powerful application of Design Thinking in sustainability. Striving to be “people and planet positive,” IKEA integrates sustainable practices from the drawing board to the delivery process.

By empathizing with environmentally conscious consumers, IKEA revamped its product design to incorporate renewable and recyclable materials. For example, the company replaced traditional foam in its sofas with sustainable materials, reducing both carbon footprint and production costs.

Through iterative prototyping, IKEA explored various configurations to enhance the durability and recyclability of its products. The result is a line of furnishings that cater to eco-savvy consumers while contributing to a sustainable future.

Case Study 2: Patagonia’s Regenerative Organic Certification

A Commitment to Environmental Stewardship

Patagonia, a pioneer in outdoor apparel, exemplifies the fusion of sustainability and design thinking. Known for its commitment to environmental causes, Patagonia took a bold step by introducing Regenerative Organic Certification (ROC) for its products.

Using Design Thinking, Patagonia embarked on a deep-dive empathizing phase with farmers, understanding the intricacies of sustainable agriculture. The company redefined its supply chain challenges, ideating a new framework that prioritizes soil health, animal welfare, and fair trade practices.

The prototyping and testing phase involved collaborative experimentation with farmers to refine agricultural practices that rebuild soil and sequester carbon. The result is a line of clothing that not only meets sustainability criteria but actively contributes to environmental restoration.

Toward a Sustainable Future

Design Thinking provides organizations with the tools to create sustainable innovations that resonate with environmentally conscious consumers. By embracing empathy, iteration, and holistic problem-solving, companies can transform challenges into opportunities for a sustainable future.

As industries continue to grapple with ecological imperatives, the journey to sustainability is not just a strategic choice but a moral compass guiding us toward collective prosperity.

Bottom line: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

Image credit: Pixabay

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Exploring the Impact of Augmented Reality on Everyday Life

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Exploring the Impact of Augmented Reality on Everyday Life

GUEST POST from Chateau G Pato

Augmented reality (AR) is a revolutionary technology that combines the digital and physical worlds, creating an interactive and immersive experience for users. From entertainment and gaming to healthcare and education, AR has begun to impact various aspects of our daily lives. This article will explore the transformative effects of augmented reality through two case study examples.

Case Study 1: Pokémon GO – Revolutionizing Gaming and Social Interaction

When Pokémon GO was released in 2016, it quickly became a global phenomenon, introducing millions of people to the interactive world of augmented reality. The game allowed players to capture virtual Pokémon creatures in real-world locations through their smartphones. By overlaying digital elements onto real environments, Pokémon GO transformed the way people interacted with their surroundings.

One of the most significant impacts of Pokémon GO was its ability to encourage physical activity and outdoor exploration. Players were motivated to walk and explore their neighborhoods, parks, and cities in search of Pokémon. This aspect of the game led to various health benefits, such as increased exercise and improved mental well-being.

Furthermore, Pokémon GO sparked a sense of community and social interaction. Players gathered in designated locations called “Pokéstops” to collect items and battle together. These meetups brought people together, forging new friendships and creating a sense of belonging. Through its blend of augmented reality, gaming, and social interaction, Pokémon GO showcased how AR can enhance our everyday lives.

Case Study 2: IKEA Place – Enhancing Shopping and Interior Design Experience

IKEA Place is an augmented reality app that enables users to virtually place furniture and home décor items in their living spaces. By utilizing the camera on smartphones or tablets, IKEA Place overlays digital representations of furniture onto a real environment, allowing users to see how the items would look in their homes before making a purchase.

This AR solution revolutionizes the way people shop for furniture, improving decision-making and reducing buyer’s remorse. Customers can browse through IKEA’s extensive catalog, select items they are interested in, and visualize how they will fit and complement their existing home decor. Moreover, users can explore different color options and manipulate the furniture’s position, ensuring a perfect fit without any physical effort.

IKEA Place also allows users to capture photos and share them with friends and family, eliciting feedback and opinions. This collaborative aspect enhances the shopping experience and brings people together, even when physically apart. By simplifying and enhancing the furniture buying process, IKEA Place demonstrates the transformative impact AR can have on everyday activities.

Conclusion

These two case study examples illustrate the transformative impact of augmented reality on everyday life. Pokémon GO showcased how AR can revolutionize gaming, encouraging physical activity, fostering social interactions, and creating a sense of community. IKEA Place, on the other hand, demonstrated how AR can enhance the shopping experience, empowering consumers to visualize furniture in their homes and facilitating collaboration with others.

As technology continues to advance, augmented reality is expected to have an increasing influence on various areas of our lives, including education, healthcare, and communication. Whether it is through immersive gaming experiences or interactive shopping tools, AR has the potential to reshape how we interact with our environment and make the most of our everyday experiences.

Bottom line: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

Image credit: Pixabay

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