What is the Day-in-the-Life-Of-a-Customer (DILO) approach?

The DILO methodology is a process of discovery, aimed at defining possible value propositions for an organization. It involves developing a deep understanding of the broad issues faced by your customers or prospects. The process involves observing and interviewing one customer at a time;  this is the "camera" part of the process, where the camera can be metaphoric or real.  It is then followed by an idea generation phase; this is  the "magic wand" part of the process. The DILO methodology provides insights into possible elements of the value proposition, and drives alignment of the organization by creating a common picture of the issues faced by the organization.

Where does DILO come from?

The DILO methodology was originally created by Francis Gouillart in a 1994 Harvard Business Review article entitled "Spend a Day in the Life of Your Customers" (co-authored with Frederick Sturdivant). Since then, many generations of Managers, Academics and Consultants have used this approach. DILO practitioners over the last ten years have increasingly used the video media as part of the approach.

This original DILO article is available from Amazon.com

The DILO approach also utilizes the Lead User Process originally developed by Eric von Hippel at MIT's Sloan School of Management. He has long been a pioneer in identifying the role of "lead users" for product development purposes. Although his primary focus is the product development process, his customer-inspired view of product development is most compelling and broadly applicable to strategy and transformation.

A description of Eric Von Hippel's approach is available at http://www.leaduser.com

What's the difference between DILO and Marketing or Market Research?

The DILO methodology focuses on the development of an innovative value proposition for the organization. It constitutes the upstream part in the development of an organization's strategy. Because of its breadth of investigation, the DILO approach is most helpful when the organization is eager to modify its core offering at a fairly fundamental level.

By contrast, most marketing and market research techniques are aimed at implementing a defined value proposition in operational terms. These techniques typically fit downstream of DILO and strategy development. In most organizations, marketing and market research focus on issues of customer loyalty, branding, channel or advertising effectiveness, or pricing. Marketing and market research techniques all serve a useful purpose when used at the appropriate time.

Who should sponsor DILO programs?

CEOs and general managers often lead the transformation of their organization through this approach. More and more Chief Marketing Officers are making the development of customer insights through DILO one of their key missions, thereby gaining a seat at the strategy table. Heads of strategy or heads of new business development also often play a key role in DILO efforts. Product managers or research and development managers seeking to develop a more strategic view of customer issues also find DILO helpful. Finally, Organization Development or managers of Leadership programs also find it useful to use DILO as the anchor point for their capabilities development programs.

Please address any question on Day-in-the-Life-Of to fgouillart@macpartnership.com.