Customers

Marketing

 

Make the Competition Irrelevant

 

John Mehrmann

    

   

  

 

Good, Better and Best

Give your customer three options. Show them something good, show them something better and show them your best. It is a simple formula that takes a little care and creativity in crafting your message. The three offers should be based on the foundation of a consistent theme, the single most important underlying reason to invest in your products or services.

The 'good' product or service should be the lowest cost option but still demonstrate your inherent value and differentiation from the competition. You should be able to clearly define your value, the features, advantages and benefits of what you have to offer. This is the customer minimum investment to buy, and it should be a good one.

Step up to better. Using the foundation established with your 'good' offer, add something more for a slightly higher price. The customer value should be easily distinguished and highlighted as more significant than the slightly increased price. Make a clear comparison to the "good" product or service. This should be a preferred alternative for the potential customer. The option should be slightly more expensive, but worth it. Some examples may include, "with additional 1GB memory", "bundle package includes download of 50 songs", "50% faster than the original", and similar comparisons.

Show them your best. The third option should be the best that you have to offer, the cream of the crop. This is the most expensive option and will only be selected by the most exclusive of customers. It should also have 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 two options, and that is fine. Demonstrating a significant leap to a higher price point for the top of the line option will help to differentiate the cost value of the other two options. Do not expect large volume of sales on the best offer. Rather, use this to demonstrate competitive advantage and differentiation with the "wow" factor.

 

 

 

Even if you have hundreds of customized solutions or products, select and present three options, good, better and best. In the decision process, human beings can easily compare and contrast three options. The mind can juggle three prices and three sets of features for a quick and easy decision process. Once you add a fourth element, the customer needs to start a deeper level of analytical comparison. If you have too many options then the customer will need to spend more time to consider the alternatives, and while they are weighing your multiple options they may start to consider the competition as well. Limit your presentation to three options. If the customer makes a specific request for an alternative, then provide the alternative that the customer has requested, but avoid introducing too many new variables unless asked. The more factors in a decision, the longer the process and the more likely to turn your "Moment of Truth" into a Lapse into Confusion.

    

   

 

Words of Wisdom


"Your love for customers attracts them and differentiates you from less loving competitors." ~ Valim Kotelnikov, Founder of e-Coach & Innompics


"Give your customer three options that they can compare without memorization. Make it quick, make it easy, and add value. Ė Just like that." ~ John Mehrmann


"Donít sell customers goods that they are attracted to; sell them goods that will benefit them." ~ Konosuke Matsushita