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Make The Competition Irrelevant

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



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