With more and more companies turning to co-creation as a means of innovating with their customers, it is time to also look at the possible negative effects of these initiatives. HBR identifies three potential areas of risk, in the form of brand reputation, demand uncertainty and the number of initiatives. The article is a bit short but it’s a nice starting point for a discussion on why co-creation is not always the answer.
The rise of social media has generated tremendous opportunities for companies to engage with customers. Many allow customers to participate in value-creating activities, such as brainstorming advertising taglines or product ideas—a process often referred to as co-creation. These activities not only help companies innovate at low cost but also engage customers—every marketer’s dream.
In practice, however, these programs are hard to run. Some customers “hijack” them—instead of offering real ideas, they seize the chance to ridicule the company. Such hijacking is one of the biggest challenges companies face. Prior research suggests that about half of co-creation campaigns fail.