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