Thoughts
VALUE PERCEPTION
Dear Growth Partners,
People don’t buy products or services, they buy what those products or services do for them! Being top of mind when the need is felt while maximising value perception will be key to success!
Remember? About 80% of companies believe their core product or service is unique or differentiated? And remember that about 8% of customers agreed?
The opportunity cost of not allocating your capital, time and energy to value perception contributors is high, unbearably high.
What about you? Are you diluting your capital, time and energy in product, service or brand attributes that do not matter to consumers? If so, I hope it is based on fundamental values you want to stand for, and then I say bravo, if not you’re probably part of the majority that is simply not conscious of the spillover. So, except If you have the brand power and guts (or arrogance) that would allow you not to, listen, please listen authentically…
LISTEN... TO THE MARKET, TO YOUR MARKET, TO YOUR SEGMENT, TO YOUR COMPETITORS
What is true for product / service development is also true for communication. Whether you are launching or growing, understanding your prospects, customers and / or recurring customers is critical. Treating them differently in terms of messaging is as critical! (A recurring customer does not need to be told you exist or what you do as if he did not know, he knows, he needs to be reminded thereof, or updated, with the proper tone of voice). Awareness is too broad, as is positioning. What type of awareness, what type of positioning, go granular, go really granular.
The objective is simple: gaining or keeping ’top of mind’ status, and not settling for less! Whether proactive (activating or reactivating that need your customer did not know he had) or reactive (being available when in your absence the customer identified a need and linked it to your value proposition), you want to be there with him / her, right when the need is felt.
When your brand, product, service or experience awareness has been well dealt with, we can assume that value perception will be aligned. This makes it much easier to define the competitive level of pricing depending on where you are in your tiering strategy – mass / mid / premium / luxury (you know how much I don’t like the ‘I am am everything for everyone’ mid market approach 🙂 ).
An oldie but great example of the importance of excellence in execution, pricing and value proposition, across the value chain, no complacency for weak links! |
From the Southwest Airlines internal company newsletter: “How important is every customer to our future? Our Finance Department reports that our break-even customers per flight was 74.5, which means that, on average, only when customer #75 came on board did a flight become profitable! Furthermore, when you divide our annual profit ($179 million) by total flights flown (624,000), you get profit per flight ($287). Then, divide the profit per flight by our average one way fare ($58), and you find that only five customers per flight accounted for our total annual profit. In other words, just five customers per flight meant the difference between profit and loss for our entire airline. That’s how valuable each customer is to Southwest and you!”
Be amazing, be rigorous, be conscious! And don’t forget: Enjoy!
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