BE DiFFERENT or be dead Blog
June 30, 2009
BE DiFFERENT Marketing Practice #1: Create Holistic Value Based Offers
“Customerization” is DiFFERENT than traditional marketing: Holistic Offers are created for WHO you have chosen to SERVE rather than flogging products to 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