Your ultimate packaging resource
 

Welcome to our packaging Archive. Have fun browsing!

 

Article #6: Make The Competition Irrelevant

(Browse for more articles)

 
Is there an easy way to make the and easy decision process. Once you add a
competition irrelevant? In an age with so fourth element, the customer needs to
much access to information, bombarded by start a deeper level of analytical
advertisements and commercials, is it comparison. If you have too many options
possible to keep the attention of your then the customer will need to spend more
potential customers? What is the secret time to consider the alternatives, and
to help customers make an easy decision while they are weighing your multiple
to buy? There is a secret formula that options they may start to consider the
works for e-commerce, retail, bids and competition as well. Limit your
proposals. It is a simple formula that presentation to three options. If the
has worked since the days of bartering customer makes a specific request for an
beads, beans and burrows. alternative, then provide the alternative
Create Differentiation that the customer has requested, but
Create differentiation within your own avoid introducing too many new variables
products or services. If you have an unless asked. The more factors in a
assortment of products or services to decision, the longer the process and the
offer, you may have identified your more likely to turn your "Moment of
differentiation already. Common examples Truth" into a Lapse into Confusion.
of differentiation for products may be The Value Proposition
based on size, speed, color, components, For each option that you present to the
combinations or accessories. Common potential customer, provide a value
examples of differentiation for services proposition. Your value proposition
include speed, performance, quality, should be something that can be conveyed
responsiveness, availability, ease or in three to five bullet points, three to
integration. If you are in the unique five sentences, or spoken in thirty
position of having only one product or seconds or less. You should be precise
service to offer potential customers then and succinct. Present the value
you should consider accessories, partners proposition from the customer point of
or other options to create a variety of view. For example, rather than say "we
levels from the perspective of your ship in three to five days", you could
future customers. If all else fails, you say "the product will typically arrive at
can offer different levels of shipping your door in three to five days". Rather
speed or delivery. than say "we have the fastest process",
Focus on the Moment of Truth you could say "our process is fast, so
Focus on the moment of truth, the place you get results faster".
or position that your products or A value proposition typically contains
services will be offered to the customer. the essential elements of Feature,
In a retail environment this may be the Advantage, Benefit, Image and Offer. This
end-cap, a wall display, shelf space or a is a reference to a specific important
counter display. On the Internet this may feature of your offer, the advantage as
be an on-line store, e-bay or your compared to the competition, and the
personal web site. It may be in a catalog benefit to the customer. The Image refers
or a brochure. It could even be part of to a photograph or diagram. The Image is
an email communication. Occasionally the an important element of your value
moment of truth may be in the form of a proposition, as people will generally
bid or proposal after several months of remember an image more readily than
discussions with a potential client. The words. Images convey feeling, and
moment of truth is the moment that the typically depict a lifestyle example of
customer has a an option to make a the customer enjoying the benefits of the
purchase decision, to buy your products, feature's advantage. The Offer is a call
invest in your services or hire you. This to action. Give your customer an offer to
is the moment that you need to put your buy, and let them know specifically how
good, better and best foot forward. to conduct the purchase. Examples of the
Good, Better and Best order call to action are "buy now",
Give your customer three options. Show "limited time discount" or a number to
them something good, show them something call to place the order by phone.
better and show them your best. It is a An example of the value proposition with
simple formula that takes a little care the essential elements is "Call now to
and creativity in crafting your message. order the self-cleaning home brew coffee
The three offers should be based on the maker and start enjoying fresh, hot
foundation of a consistent theme, the coffee with the extra convenience of no
single most important underlying reason fuss, no muss and no clean-up. Order
to invest in your products or services. on-line to receive your free sample of
The 'good' product or service should be assorted coffees, available while
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
differentiation from the competition. You gently caressing an aromatic steaming cup
should be able to clearly define your of coffee, cradled over a saucer.
value, the features, advantages and Plan, Do, Measure and Adjust
benefits of what you have to offer. This Carefully plan your three offers and the
is the customer minimum investment to value proposition for each. Once you
buy, and it should be a good one. introduce your three offers, measure the
Step up to better. Using the foundation success rate of each option by the
established with your 'good' offer, add corresponding sales attach rate.
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
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.






1- A- B- 2- 3- 4- 5- 6- 7- 8- 9- 10- 11- 12- 13- 14- 15- 16- 17- 18- 19- 20- 21- 22- 23- 24- 25- 26- 27- 28- 29- 30- 31- 32- 33- 34- 35- 36- 37- 38- 39- 40- 41- 42- 43- 44- 45- 46- 47- 48- 49- 50- 51- 52- 53- 54- 55-