Conspicuous value makes the cash register ring
When a market segment is flooded with competitors, great customer service or a superior product experience is often the tiebreaker – even at a higher price point.
A product or service doesn’t have to be obviously innovative, either, to separate a consumer from her cash. If the service or product experience approaches flawlessness – relative to the competition – then it will stand out among the clutter.
Take the iPhone, for example. While many owners will complain about a missing feature or dropped calls, most would probably agree that nothing else touches the iPhone’s sleek design, usability and expandability. That’s because Apple took great pains to get it right, to make a great user experience its number-one priority.
Although more mundane, taking your car in for service provides another example where a good customer experience can make the difference. Nobody I know enjoys having a car serviced. In fact, it can be downright painful – right up there next to going to the dentist. But if a mechanic or service department has earned your trust and treats you well, you’re probably more willing to keep the relationship going. Ditto the dentist – well maybe.
The manufacturer or service provider willing to break out of the pack that holds the market on mediocrity stands to win big. But, the risks also are big for falling in love with a good idea and taking it to market before it’s perfected.
Your marketing and development team created a product, built in value, and set a price to capture that value. Your sales department does their best to sell at that price. But what happens over time, as new competitors and technologies come into the market, the value our customers perceive relative to the alternative declines. They become willing to pay less.