LESS… What Customers Really Want
The Invaluable $1.80 Beer Lesson on Selling Products and Buying Habits
“The great bear experiment
People were offered two beers–a premium one at $2.50 and a bargain beer for $1.80. … About 80 percent chose the more expensive one.
In the next experiment, an even cheaper option joined the first two–a beer for just $1.60. … 80 percent of people nabbed what became the middle option–at $1.80–and the rest bought the $2.50 offering.
Then the third take happened: the $1.60 beer was switched out for one of those ultra-premium offerings at a cool $3.40. … most people chose the $2.50 option, relatively few chose the low-cost $1.80 option, and about 10 percent nabbed the most expensive option.
… Shifting the options influenced buyer behavior. The experiment confirms an old sales heuristic: if you offer different price points, people will choose between the plans rather than whether to buy the product or not. …
… The most obvious application would be to incorporate the three-way price-plan into your product … use the strategy on your friends and colleagues. … say you want to grab lunch with your work BFF but you don’t want to boss them into going to your favorite Cuban place–you’d rather allow them to arrive to that decision on their own.
… suggest three lunch spots: cheap and average Italian, reasonably priced and conveniently located Cuban, or distant and expensive Chinese. So instead of contemplating the worthiness of Cuban in and of itself, your BFF is comparing it to the crap Italian and the too-fancy Chinese, which should tip the lunch-scales in your favor–if that beer experiment was any indication.”
By Douglas Van Praet via Co.Create Article
Research – You’re Doing It Wrong. How Uncovering the Unconscious is Key to Creativity
“Businesses invest billions of dollars annually in market research studies developing and testing new ideas by asking consumers questions they simply can’t answer. Asking consumers what they want, or why they do what they do, is like asking the political affiliation of a tuna fish sandwich. That’s because neuroscience is now telling us that consumers, i.e., humans, make the vast majority of their decisions unconsciously.
Steve Jobs didn’t believe in market research. When a reporter once asked him how much research he conducted to develop the iPad, he quipped, “None. It isn’t the consumers’ job to know what they want.” And according to some measures, the iPad became the most successful consumer product launch ever and Apple went on to become the most valuable company of all-time. …
Einstein once said: “The intuitive mind is a sacred gift and the rational mind is a faithful servant. We have created a society that honors the servant and has forgotten the gift.” Creativity, the indispensable fuel of economic growth, is being killed by a corporate culture of wrongheadedness. It’s time to stop the violence! It’s time to honor the gift of the unconscious mind! …
My frustration with the tools of my trade led me to search for a more enlightening message. ….”
Marketers don’t convince. Engineers convince. Marketers persuade. Persuasion appeals to the emotions and to fear and to the imagination. Convincing requires a spreadsheet or some other rational device.
It’s much easier to persuade someone if they’re already convinced, if they already know the facts. But it’s impossible to change someone’s mind merely byconvincing them of your point.
If you’re spending a lot of your time trying to convince people, it’s no wonder it’s not working.”
By Stephen Shapiro from 24/7 Innovation Blog Article
“Back in 1995 … I traveled the world helping companies downsize. … While working on one particular project, I knew that 10,000 people were going to lose their jobs as a result of our work. Somehow I was able to rationalize away the impact on the lives of so many people.
Three is More than 10,000
That is, until I was watching a television show about three executives from that very company who were laid-off a year earlier. One person cried the entire interview. Another was optimistic even though he had not yet found a suitable job. And the third person committed suicide. The next day, while at the client site, I confirmed that the stories were true. I immediately dismissed myself and never returned to the project. After watching that TV show, I could no longer be a contributor to even one lost job.
Stalin once said, “One death is a tragedy; one million is a statistic.” As I discovered personally, 10,000 lost jobs was a statistic; one lost job was unbearable. …
Big data is driving the decision-making process in many organizations. But numbers cannot address the subtleties of human desire. Statistics only capture what we see on the surface, and can rarely tap into deeper needs.”
7 Things Customers Want Most From You
“1. Independent Thinking Customers want to know that you’ll represent their interests, even it’s not in your own financial interest–and particularly when the proverbial chips are down. …
2. Courage … They expect you to tell them if buying what you’re selling is a mistake, or not truly in their interests. That takes real guts.
3. Pride The best customers don’t want you to truckle and beg. … they want to work with proud, successful people who can handle even the most difficult tasks.
4. Creativity Customers don’t have the time to sit and listen to cookie-cutter sales presentations. … they always have time for somebody who can redefine problems and devise workable solutions.
5. Confidence … They both need and expect you to exude the kind of confidence that assures them you’ll do what it takes to make them happy.
6. Empathy Customers … want you to understand where they are, how their business works, and the challenges that they face–not just intellectually, but in your gut.
7. Honesty Above all, customers want you to be honest with them. In fact, the previous six values are built upon a foundation of honesty. Without honesty, you have absolutely nothing to offer any customer.”