| Is there an easy way to make the
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| | and easy decision process. Once you add a
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| competition irrelevant? In an age with so
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| | fourth element, the customer needs to
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| much access to information, bombarded by
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| | start a deeper level of analytical
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| advertisements and commercials, is it
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| | comparison. If you have too many options
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| possible to keep the attention of your
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| | then the customer will need to spend more
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| potential customers? What is the secret
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| | time to consider the alternatives, and
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| to help customers make an easy decision
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| | while they are weighing your multiple
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| to buy? There is a secret formula that
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| | options they may start to consider the
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| works for e-commerce, retail, bids and
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| | competition as well. Limit your
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| proposals. It is a simple formula that
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| | presentation to three options. If the
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| has worked since the days of bartering
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| | customer makes a specific request for an
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| beads, beans and burrows.
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| | alternative, then provide the alternative
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| Create Differentiation
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| | that the customer has requested, but
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| Create differentiation within your own
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| | avoid introducing too many new variables
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| products or services. If you have an
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| | unless asked. The more factors in a
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| assortment of products or services to
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| | decision, the longer the process and the
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| offer, you may have identified your
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| | more likely to turn your "Moment of
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| differentiation already. Common examples
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| | Truth" into a Lapse into Confusion.
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| of differentiation for products may be
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| | The Value Proposition
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| based on size, speed, color, components,
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| | For each option that you present to the
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| combinations or accessories. Common
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| | potential customer, provide a value
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| examples of differentiation for services
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| | proposition. Your value proposition
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| include speed, performance, quality,
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| | should be something that can be conveyed
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| responsiveness, availability, ease or
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| | in three to five bullet points, three to
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| integration. If you are in the unique
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| | five sentences, or spoken in thirty
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| position of having only one product or
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| | seconds or less. You should be precise
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| service to offer potential customers then
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| | and succinct. Present the value
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| you should consider accessories, partners
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| | proposition from the customer point of
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| or other options to create a variety of
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| | view. For example, rather than say "we
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| levels from the perspective of your
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| | ship in three to five days", you could
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| future customers. If all else fails, you
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| | say "the product will typically arrive at
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| can offer different levels of shipping
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| | your door in three to five days". Rather
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| speed or delivery.
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| | than say "we have the fastest process",
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| Focus on the Moment of Truth
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| | you could say "our process is fast, so
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| Focus on the moment of truth, the place
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| | you get results faster".
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| or position that your products or
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| | A value proposition typically contains
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| services will be offered to the customer.
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| | the essential elements of Feature,
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| In a retail environment this may be the
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| | Advantage, Benefit, Image and Offer. This
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| end-cap, a wall display, shelf space or a
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| | is a reference to a specific important
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| counter display. On the Internet this may
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| | feature of your offer, the advantage as
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| be an on-line store, e-bay or your
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| | compared to the competition, and the
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| personal web site. It may be in a catalog
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| | benefit to the customer. The Image refers
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| or a brochure. It could even be part of
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| | to a photograph or diagram. The Image is
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| an email communication. Occasionally the
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| | an important element of your value
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| moment of truth may be in the form of a
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| | proposition, as people will generally
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| bid or proposal after several months of
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| | remember an image more readily than
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| discussions with a potential client. The
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| | words. Images convey feeling, and
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| moment of truth is the moment that the
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| | typically depict a lifestyle example of
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| customer has a an option to make a
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| | the customer enjoying the benefits of the
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| purchase decision, to buy your products,
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| | feature's advantage. The Offer is a call
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| invest in your services or hire you. This
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| | to action. Give your customer an offer to
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| is the moment that you need to put your
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| | buy, and let them know specifically how
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| good, better and best foot forward.
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| | to conduct the purchase. Examples of the
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| Good, Better and Best
| |
| | order call to action are "buy now",
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| Give your customer three options. Show
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| | "limited time discount" or a number to
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| them something good, show them something
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| | call to place the order by phone.
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| better and show them your best. It is a
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| | An example of the value proposition with
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| simple formula that takes a little care
| |
| | the essential elements is "Call now to
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| and creativity in crafting your message.
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| | order the self-cleaning home brew coffee
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| The three offers should be based on the
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| | maker and start enjoying fresh, hot
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| foundation of a consistent theme, the
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| | coffee with the extra convenience of no
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| single most important underlying reason
| |
| | fuss, no muss and no clean-up. Order
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| to invest in your products or services.
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| | on-line to receive your free sample of
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| The 'good' product or service should be
| |
| | assorted coffees, available while
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| the lowest cost option but still
| |
| | supplies last." All we need to complete
|
| demonstrate your inherent value and
| |
| | this enticing offer is an image of hands
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| differentiation from the competition. You
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| | gently caressing an aromatic steaming cup
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| should be able to clearly define your
| |
| | of coffee, cradled over a saucer.
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| value, the features, advantages and
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| | Plan, Do, Measure and Adjust
|
| benefits of what you have to offer. This
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| | Carefully plan your three offers and the
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| is the customer minimum investment to
| |
| | value proposition for each. Once you
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| buy, and it should be a good one.
| |
| | introduce your three offers, measure the
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| Step up to better. Using the foundation
| |
| | success rate of each option by the
|
| established with your 'good' offer, add
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| | corresponding sales attach rate.
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| something more for a slightly higher
| |
| | Typically the "good" offer should be
|
| price. The customer value should be
| |
| | about 25% of your sales, and the "best"
|
| easily distinguished and highlighted as
| |
| | offer is normally only 15% of your sales.
|
| more significant than the slightly
| |
| | Some customers will want the lowest cost
|
| increased price. Make a clear comparison
| |
| | option, and some will want to be
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| to the "good" product or service. This
| |
| | exclusive and purchase the best option
|
| should be a preferred alternative for the
| |
| | regardless of price. The middle of the
|
| potential customer. The option should be
| |
| | road "better" offer is customarily the
|
| slightly more expensive, but worth it.
| |
| | lion share at 60% of your total sales.
|
| Some examples may include, "with
| |
| | Most customers are willing to pay a
|
| additional 1GB memory", "includes six
| |
| | little more for quality, speed or
|
| months of Satellite Radio", "bundle
| |
| | convenience associated with the "better"
|
| package includes download of 50 songs",
| |
| | offer if presented properly, even if they
|
| "50% faster than the original", and
| |
| | do not want to pay the high price of the
|
| similar comparisons.
| |
| | "best" option. The "better" alternative
|
| Show them your best. The third option
| |
| | gives customers a chance to do a little
|
| should be the best that you have to
| |
| | better than "good", but still feel that
|
| offer, the cream of the crop. This is the
| |
| | they saved money as compared to the
|
| most expensive option and will only be
| |
| | outrageously priced "best" option.
|
| selected by the most exclusive of
| |
| | If you do not experience the desired
|
| customers. It should also have something
| |
| | result in mix of sales then it may be
|
| in common with the original "good" option
| |
| | necessary to adjust your plan or your
|
| and the "better" option, but the third
| |
| | value propositions. In any case, as long
|
| and final option should be recognizable
| |
| | as the customers continue to make a
|
| the best you have to offer. The price may
| |
| | selection between your options, the
|
| be significantly higher than the other
| |
| | competition is irrelevant. Your customers
|
| two options, and that is fine.
| |
| | can get what they want, and they will
|
| Demonstrating a significant leap to a
| |
| | remain your customers.
|
| higher price point for the top of the
| |
| | ________________________________________
|
| line option will help to differentiate
| |
| | _____________
|
| the cost value of the other two options.
| |
| | Words of Wisdom
|
| Do not expect large volume of sales on
| |
| | "No computer network with pretty graphics
|
| the best offer. Rather, use this to
| |
| | can ever replace the salespeople that
|
| demonstrate competitive advantage and
| |
| | make our society work."
|
| differentiation with the "wow" factor.
| |
| | - Clifford Stoll, Silicon Snake Oil, 1995
|
| Even if you have hundreds of customized
| |
| | "You can only cure retail but you can
|
| solutions or products, select and present
| |
| | prevent wholesale."
|
| three options, good, better and best. In
| |
| | - Brock Chisholm
|
| the decision process, human beings can
| |
| | "Give your customer three options that
|
| easily compare and contrast three
| |
| | they can compare without memorization.
|
| options. The mind can juggle three prices
| |
| | Make it quick, make it easy, and add
|
| and three sets of features for a quick
| |
| | value. - Just like that.
|
