Marketing Insights

1. Noble: The Key to Speeding Up Recovery, Part I. Greatness is not measured by what we do in good times, but by how we respond to challenging times. You can tell the size of your organization by comparing your actions in the toughest economy in 70 years with the basic elements of an economic recovery. Very large companies will lead the boom and enjoy huge advantages over their competitors in the years to come. Likes: Tariff socialization. Narrow their focus. Stimulating job growth through innovation In this three-part series, we will discuss these key elements of the economic recovery. How is your organization measured? We'll see.

2. Rate spread It is often misunderstood that buyers become more price sensitive in difficult economic times. Indeed, that belief becomes a self-fulfilling prophecy. Executives expect buyers to become more affordable to abandon their offerings to keep their customers in business. Voila! Buyers focus on price is increasing. Imagine. This is counter-intuitive, but buyers are becoming more value-oriented in a declining economy. Here is a simple example to demonstrate my thesis. You're at the grocery store in the cannery section. When you reach for your green bean brand, you find that the store brand costs 40 cents less. You think, "Hey, times are tough, I'll try." Here's how to get a store can of green beans and corn. Customer Experience Insights The same night, serve green beans and find that they are mushy and tender. Most of them end up in the trash. What will you buy the next time you are in business? Brand name. Store brands are more expensive, although they are lower in price. Reluctantly served corn the next night. To your surprise, it's as good as your brand. Who will you buy next Store brand. The quality is as good as the brand name and the price is cheaper. Both decisions are value decisions. The only solution for the price is to try the store brand first. Then you have returned to the value. Sellers who understand this simple concept and actually offer more value than their competitors can lose a lot of sales as buyers try to choose lower-priced alternatives, but the business will return quickly if buyers see the difference. If you're thinking, "That wasn't my experience." Then there are some explanations for your experience: Your suggestion isn't really any better.

3. In my 20+ years of helping customers raise their prices, I've rarely found that they overestimate their offerings. In fact, the reverse is generally true; they tend to devalue their suggestions. While this isn't a possible explanation why customers don't return after trying cheap alternatives, it's still worth exploring. It's possible that your quality and outstanding service has gone downhill and you didn't notice it. After all, many shoppers just walk away rather than complain. They can even use the award as an excuse not to let you know you're dropping the ball. Your policy-making process may not be able to predict the impact this policy will have on your customer experience. More aggressive debt collection or credit taking policies can cause displeasure among customers and turn them off. I almost left my credit card company when they unilaterally decided I needed an "upgrade" card which simply didn't have the benefits I wanted. The key to measuring the prominence of your offering is to look through the eyes of your customers. No other perspective matters. Great, but worthless A more likely explanation for why buyers won't return is that even if your offer is better, your customers don't appreciate the added benefits you offer. I learned this lesson from a printer who asked me, "Do customers who come to my print shop want a good print job or a good print job?" "Nice print job!" I answered. He smiled one of those "understood" smiles and said, "Most people can't tell the difference between a good print job and a good print job, and a good print job is much more expensive." My clients want a great print job because they're not prepared to pay for something they can't see. " What about your suggestions? Have you improved quality/service above your customer value? If so, maybe that's why they don't come back after trying cheap alternatives.