Chapter Chapter 2 2 Case Study #3: Case Study #3: Tesla’s transformative customer experienceTesla’s transformative customer experience TeslaTesla is a greatis a great example example of a ofcompany a company that thathas createdhas created a a trulytruly transformative transformative customer customer experience. experience. After After developing developing its vehicle,its vehicle, Tesla Tesla wrapped wrapped a unique, a unique, personalized personalized buying buying experienceexperience around around its cars. its cars. It allowed It allowed customers customers to schedule to schedule a testa drivetest drive on its on website its website and removedand removed the middleman — the the middleman — the car dealer—bycar dealer—by opening opening up Tesla-runup Tesla-run showrooms, showrooms, similar similar to Apple’sto Apple’s approach approach with with the Applethe Apple Store. Store. It empowered It empowered customerscustomers to create to create and andpurchase purchase its cars its carsonline, online, and andalso also did awaydid away with with haggling haggling by selling by selling every every vehicle vehicle at list at price. list price. The Theafter-sale after-sale experience experience is justis justas tailoredas tailored to the to the requirementsrequirements of ofthe thegreen-conscious, green-conscious, design- design- and and performance-performance- oriented oriented underserved underserved hero. hero. If you If youbuy buya a Tesla,Tesla, the companythe company delivers delivers it directly it directly to you. to you. Should Should you you experienceexperience any problemsany problems with with your your Tesla, Tesla, the company the company will will pick pickit up it and up andleave leave you withyou with a replacement a replacement vehicle. vehicle. You’re You’re also alsoguaranteed guaranteed a resale a resale price. price. The Theradical radical level level of risk of risk reductionreduction to buying to buying an innovative an innovative product product is a key is a aspect key aspect to to manymany transformational transformational category category creators’ creators’ business business models. models. It acceleratesIt accelerates early early adoption adoption and andalso alsobecomes becomes a core a core component of the experience itself.component of the experience itself. Tesla’sTesla’s remarkable remarkable customer customer experience experience was wasessential essential to to accomplishingaccomplishing its mission its mission in a inmarketplace a marketplace where where nearly nearly everyevery other other new, new, independent independent automaker automaker has hasfailed. failed. TeslaTesla started started with with a small a small submarket submarket that thatit could it could own, own, the the high-endhigh-end electric electric sport sport car, car,and anddelivered delivered an exceptional an exceptional customercustomer experience. experience. This Thisgreat great customer customer experience experience gen gen- - eratederated genuine genuine acts actsof advocacy of advocacy for thefor brandthe brand that thatwent went viral.viral. One Oneof my of favoritemy favorite examples examples of this of isthis a videois a video called called “Fireflies.”“Fireflies.” It cost It costTesla Tesla nothing nothing to make — not to make — not a single a single dime. dime. Why?Why? Because Because it was it wascreated created by a bycustomer a customer advocate. advocate. The The advocate’s name is Sam O’Hare, a well-known director. He advocate’s name is Sam O’Hare, a well-known director. He 3030 3030