Faster, higher & stronger, are you winning “Gold” in your market?
In 1894, Pierre de Coubertin proposed the slogan Faster, Higher, Stronger as communicating the ideals of the Olympics. In 2017, businesses face increasing competition to survive in their market and there is room for but a few.
In this article, we’ll share five ways you can win gold in your marketplace.
If you are consistently and sustainably better about the things your clients care about and they pay a premium for it, you will smash the competition.
1. Know what they value.
To be valuable, you have to know what is valued, and the only way to know this is to be close to your target audience or individual customer. It may seem obvious to say, but to know what someone values and providing that to a high level, is a secret to success.
We did some research recently for a company and found a disconnect between what the sales staff “thought” the customers valued and what they “did” value. In finding out where they could add value, the firm was able to change focus from pricing to other strategies. And they added 50 per cent to their net profit as a result!
2. Deliver on your promises of value.
There is no coming back from the situation where you overpromise and under deliver. Make sure you can deliver on or even exceed the level or value you have promised.
3. Think beyond price.
There are many factors that go into purchase decisions. Price is only one of these factors. Yet, so many businesses focus on the fact that there is a cheaper competitor out there that they must match to win business.
You might be able to deliver your product faster to your customers because you keep stock. Or your candles might burn for twice as long, so deserve to be more expensive than the cheap option from the supermarket.
One of the best examples of this I ever heard was a company who developed a valve seal for a market that lasted twice as long as the competition. Each normal valve seal cost 20 cents, so you would think they were justified in charging 40 cents for their new model. In fact, they charged $40 000 for each valve seal because they found that every time a company needed to stop their production facility to change out these valves, the cost in lost production was over $1 000 000 to the organisation. They priced their product on cost savings not on the product.
Can your product or service be priced in a different way based on the total value to your client?
4. Test different value propositions.
Over the past two decades we’ve seen so many variations in what customers value that it is clear the product itself is only part of the equation.
You should regularly test new value propositions with your clients:
- What if you offered product in bulk with less packaging?
- What would clients pay if you visited them instead of making them visit you?
- What if you added 10 per cent extra in your product – could you get more sales, at very little added cost of goods?
- What premium would clients pay for overnight delivery instead of your usual (and market standard 3 days)?
What added products or services that don’t cost you much could be bundled with the base product to add profits, margin or market share?
5. Be helpful.
If you are a good observer of client behaviours and attitudes, you will notice areas of their business outside of the specific use of your product or service where there are opportunities for you to add value. You might know of another company that could solve a business problem for the customer. You might have a new process that saves them money or time or frustration. Don’t narrowly think of the transaction and use of your product or service.
Help your customers out with other advice, assistance, referrals and so forth and the extent to which they value you as part of their trusted inner circle or even ‘family/friend’ network could barricade your product/service relationship against any competition – no matter what price or value they offer in comparison.
We hope these five areas and tips on value will help you win “Gold” in your market and help you go faster, higher or stronger than your competition.
About the contributor:
Hunter Leonard is The Marketing Chef. His passion for the past 25 years has been to help business owners find their sweetspot and build a better marketing strategy. Hunter has benchmarked over 1200 business owners to understand their needs and wants in regards to marketing. He has won six major marketing awards for effectiveness, contributed to over $2b in sales growth for his clients, and consulted directly to more than fifty companies in 20 different industries. Website:http://bluefrog.rapidmarketingcentre.com.au