June 30, 2009

BE DiFFERENT Marketing Practice #1: Create Holistic Value Based Offers

As I explain in the Marketing Section of my book, Customerization is DiFFERENT than traditional marketing: Holistic Offers are created for WHO you have chosen to SERVE rather than flogging products at the masses.

Holistic Offers are created based on what you discover to be the total overall needs, wants and desires of your targeted customer group. Offers reflect a broad customer dimension rather than a narrow thin slice that typifies a product-driven approach.

Holistic Offers pace an organization is the VALUE delivery business and not the product supply business. The Mountain Adventure Package Offer provided by the Fairmont Chateau Whistler in BC, for example, creates an adventure experience for people rather than merely a combination of a hotel room + food + a daily Whistler activity (of which there are well over 30 to choose from).

Holistic Offers are priced to reflect the value supplied; they are not based on discounting the sum of the component parts as is commonly done today in the plethora of Bundles being provided by many companies. As a result, margins are not eroded as in discounted bundling; rather margins are increased if the marketer is astute in the value components being provided.

Holistic Offers have some amazing benefits to organizations that choose this BE DiFFERENT approach:
- They are viewed as creative - looking at the customer as a total entity
- They are viewed as a market leader - few are active in Holistic Offer creation
- Their brand currency goes up - based on innovation and market leadership
- Their customer relevance increases - Offers are based on the specific customers you have chosen to SERVE
- Margins increase - based on premium pricing not discounting

Holistic Offers are not bundles. They are created based on value components discovered to be unique to a specific customer group. They are sold on the basis of a singular value proposition that integrates all Offer components into an expression of value (the Mountain Experience Package). They are priced up based on relevant and compelling value provided.

Bundles are old and tired; everyone uses them under the misguided belief that they create customer stickiness or loyalty. How can that be the case when they are nothing more than price plays and there is a glut of companies in the market that provide them? The argument doesn’t cut it with me.
For a detailed discussion of the topic, refer to my book. Many examples are provided and I show you how to create an Offer for your organization.

Cheers, Roy Osing

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Related Blogs:
Customerize your Marketing
Customerize Practice #2 Institutionalize Customer Learning
Customerize Practice #3 Discover Customer Secrets

Posted 6.30.09 at 06:37 am by Roy Osing | Permalink | Comments (0)

June 25, 2009

BE DiFFERENT: ‘Customerize’ your Marketing

The challenge for Marketing teams these days is to change the rules of the competitive game to an approach that defines their organization as BE DiFFERENT. The common marketing discipline today is what I refer to as product flogging, developing and selling products to mass markets in an effort to maximize marketshare.

The BE DiFFERENT Practice, however, drives to create value-based Holistic Offers targeted to smaller customer groups with the end game of maximizing customer share (or share of wallet). Rather than start the marketing process with the product, BE DiFFERENT starts with the definition of WHO your want to SERVE and then creates multiple Holistic Offers for the chosen customer group in an attempt to get more of their business.

Holistic Offers are defined by a package of value they provide to the targeted customer. Unlike the product flogging approach Offers are driven by very detailed and specific holistic customer requirements. Product flogging promotes features and benefits: Offers promote VALUE. That’s the difference.

Here are the benefits of this BE DiFFERENT Practice:
- It is demonstrated evidence of market innovation
- You are able to build your brand as a market leader
- Offers yield higher margins due to the premium prices (not discounting) that are applied
- You increase your customer relevance since Offers are created in the image of specific customer needs
- And in the end, you distinguish yourself from your competitive floggers

I read recently an article reporting the results of a consumer psychology study that concluded ‘buying experiences, not possessions, leads to greater happiness. Think about it. This has amazing implications for BE DiFFERENT marketers. Essentially the task becomes one of creating unique Experience-based Offers for your chosen customer groups. So, use your primary product or service as the anchor and wrap experience components around it. Look outside your organization to acquire the experience components. Check out what the Fairmont Chateau Whistler is doing.

The Marketing Section of my book has more on this with examples of companies doing it.

Cheers, Roy Osing

Remember to follow me on Twitter

Related Blogs:
Customerize Practice #1 Create Holistic Value Based Offers
Customerize Practice #2 Institutionalize Customer Learning
Customerize Practice #3 Discover Customer Secrets

Posted 6.25.09 at 06:09 am by Roy Osing | Permalink | Comments (0)

June 19, 2009

BE DiFFERENT Company - Apple

I am impressed with the strategy Apple is following in developing the market for their iPhone. The focus on applications is a very creative way to address the wide range of value that people get from their smartphone.

In fact the applications-centric approach places them in the BE DiFFERENT position of creating value-based holistic Offers that I espouse in my book. And, at least at this point in time, they are unmatched by their rivals such as RIM whose porfolio of applications is resricted to few in comparison. And Apple’s distribution plan is right on the money by introducing Apps Stores in 2008 to educate their customers and sell content. Great relationship building marketing! I see the competition is now jumping on the App Store bandwagon. Too late! And remember that fast following doesn’t make you DiFFERENT, it just makes you the same faster.

The latest announcement of the iPhones new operating system, the OS 3.0 progresses the applications value approach even further much to the dismay of their competitors. The OS 3.0 permits a user to transact within the iPhone app itself. This value-added capability builds the relationship with the user who then becomes much more sticky to the iPhone and reluctant to be tempted by competitive alternatives. And, much to the delight of Apple, this transaction-within-an-App functionality produces an ongoing revenue stream rather than a single purchase which is produced by most of the other applications in the smartphone market these days.

So why do I categorize Apple as BE DiFFERENT?
- the APP focus creates value for their customers that is unique
- their new OS 3.0 drives the relationship with the customer deeper making it difficult for their competitor’s to break
- they are changing the rules of the smartphone game by finding a way to generate recurring revenues from APP’s
- finally, they are keeping the application software develops loyal to Apple by creating an ongoing critical role for them in the iPhone Offer

Nicely done Apple!

Cheers, Roy Osing

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Posted 6.19.09 at 03:07 pm by Roy Osing | Permalink | Comments (0)

June 17, 2009

McNally Robinson a BE DiFFERENT Bookseller

I recently did an event at the McNally Robinson store in Don Mills Ontario to promote my book; they clearly understand how to BE DiFFERENT in a very competitive market with heavy weight Chapters/Indigo having extensive coverage throughout the country.

What makes McNally’s DiFFERENT? It starts when you enter the store. The atmosphere is warm. You feel gently surrounded by books of many types each with their own story to tell. People are smiling and friendly; they obviously enjoy what they do. The store layout is easy to navigate with a well thought-out plan that addresses categories that are popular as well as related to one another. Finding what you want is easy and stressless.

McNally’s has a book event every evening of the week featuring new books and their authors. These are informal sessions where I had 20-25 minutes to talk to the audience about my work and answer questions with coffee afterwards. People were interested in my book; McNally’s has created an environment that invites people in to explore new books and get to know new authors. Bravo!

The store has a restaurant (yes, with good Ontario wine) where you can get a full selection of food ranging from snacks to a steak dinner. They use this facility in a BE DiFFERENT way. They package a lunch for example with a well-known author personality who comes in and talks about their work. When I was there for example there was a luncheon event featuring Liberal leader Michael Ignatieff. Brilliant!

The children’s section is a delight to experience. Books and popular toys pervade the area inviting adults to do the right thing for the early readers.

They know how to plan Events as well. My event went off like clockwork and the author is felt important and at home.I had the opportunity to spend the better part of an hour with co-owner Tory McNally to talk about her business and get a feel for the culture they are trying to create.

Bottom line….. a BE DiFFERENT organization with enlightened leadership. I look forward to the day when they open a store in Vancouver.
Cheers, Roy Osing

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Posted 6.17.09 at 03:10 am by Roy Osing | Permalink | Comments (1)