Do your buyers easily understand what you sell? Is your pricing based on value or existing market trends? Do your potential customers pick your product or service over the competition?
We have discussed how to find your target audience, create clear messaging, develop insights so you understand customer’s needs, and now it’s time to deliver. That should be simple since you have all the information required to ensure that your target selects your product or service. Unfortunately, many organizations gloss over the next steps, making it difficult for potential customers to select and ultimately purchase from them.
The next steps required to make it easy for customers to buy cover the 3 P’s – Packaging, Pricing and Positioning. Each component creates a system that ensures potential customers find it easier to purchase from your organization rather than the competition. Plus, this builds upon all the work done prior that ensures the target audience is properly selected, discovered and communicated with in a way that compels them to consider your company. You understand the customer’s decision drivers and want to be in the consideration set to be chosen.
Many organizations do not consider how to package, price and position products and services from the viewpoint of the customer. Too frequently these are done from the organization’s viewpoint, thereby disrupting the customer’s ability to keep the company in his consideration set.
Challenge the Norm: There are three questions you must ask to appropriately set up packaging, pricing and positioning:
- How should I package the product or service so the buyer can easily understand it?
- How should it be priced so the buyer sees value?
- How should the product or service be positioned so the buyer selects it over others?
Every answer must be through the lens of the customer. Then you can begin establishing each component to correctly position your organization.
Begin by understanding how the product or service is purchased. With products, it is important to think beyond the actual package of the product. Remember how customers buy – single or multiple? Do customers frequently buy two products together? Then bundle them. Are different sizes needed in order to accommodate customer needs and buying habits? Create trial sizes to help with promotions.
It is the same with services. How frequently do you offer the service? Is it a one-time purchase or a subscription? Should you bundle it with other services for a more customer friendly package? Can you provide a free service to entice them to purchase more?
Keep in mind that your target audience should drive the packaging. If you are going green, then eco-friendly packaging is a must. If it is a high-end product, then make sure the packaging reflects the luxurious nature of the item.
Regardless of how you decide to package, make sure your online presence reflects the overall packaging of your product or service. Cohesiveness is important to your customers and ensures they recognize your offerings over your competitors.
Choosing cost-based pricing is easier, but not the best way to ensure pricing reflects the needs of your customer. Customers will say that price is the most important thing when you have not fully understood their decision drivers and positioned yourself in their consideration set. Once you are firmly in the consideration set, you are able to effectively close the sale without competing on price. Now you are simply focused on the purchase drivers of your target audience.
With all the information you have at your fingertips, developing a value proposition that ensures your customers are clear on the benefits of your product or service should be easy. Creating clear, concise positioning will cut through all the clutter that your competition throws out. Developing the value proposition also ensures that you are communicating the benefits of your product or service – not the features.
A common mistake is to talk about the features of your products and services. However, the customer is only interested in the benefits – how it helps make his life better. When developing your value proposition, ask yourself this. Is it…
Once you have answered these six questions, you can create a solid value proposition statement that sums up how your customers benefit from your products and services. Keep in mind how your organization is different and most importantly, the target audience.
These 3 P’s will ensure your company’s success in creating and closing sales authentically. Just remember that the customer must be the focal point, and keeping it simple will help that customer decide to purchase from you.