Creating value for consumers in CE: Tools as a service

The circular economy (CE) focuses on keeping materials in use for as long as possible and also to preserve, or even upgrade, their value by creating added value through services and smart solutions. To succeed in this, instead of selling products, companies should move to retain ownership and sell their solutions as a service. Yet, mainstream consumers are still used to owning many products, such as tools, clothes, furniture, and domestic appliances. To attract consumers to choose a service instead of product ownership, the service offering needs to provide superior value. We explored the customer value journey regarding a tool rental service called Liiteri. On the journey the benefits were related to, for example, better quality and no need for storage and maintenance. On the other hand, the sacrifices were realised in the pick-up and return steps, which were regarded as more laborious if the tool was rented.