The truth is not all performance predictors are ethical, because not all marketers are ethical.
Like any form of marketing, performance predictors can be manipulated and falsely claimed for the self-serving benefit of the organisation. Whilst I believe performance predictors are one of, if not the most, ethical forms of marketing currently employed, it is sure to be exploited by the dishonest minority.
For performance predictors to be ethical the 'envisioned future' created and subsequently presented to the prospective customer must be representative of common reality; as opposed to an abstract reality based on a perfect one-in-a-million outcome.
For example, a product demonstration proving the effectiveness of a carpet cleaning foam (typically shown on day time infomercials) are ethical where the carpet is standard household carpet and the red wine is, well, red wine. However, if the marketer 'enhanced' the demonstration with synthetic carpet and coloured water, obviously the ethics involved are questionable.
Friday, February 29, 2008
Thursday, February 28, 2008
Developing performance predictors by minimising risks
Grab a blank piece of paper, draw a line down the middle and head the two columns – Potential Benefits and Perceived Risks. Put yourself into your customer’s shoes and fill out the columns.
Next, focus on the perceived risks column, and brainstorm performance predictors that would reduce each of the perceived pre-purchase risks.
To gain maximum effectiveness, aim to generate at least 10 potential performance predictors for each one of the risks. You may be surprised how often it is the last 2 or 3 ideas which are the best.
Next, focus on the perceived risks column, and brainstorm performance predictors that would reduce each of the perceived pre-purchase risks.
To gain maximum effectiveness, aim to generate at least 10 potential performance predictors for each one of the risks. You may be surprised how often it is the last 2 or 3 ideas which are the best.
Fear of the Unknown
As humans, we allow many fears to drive negative behaviours in ourselves, such as inaction, anger, avoidance and anxiety.
For marketers, removing fear of the unknown for prospective customers is critical to ensuring conversion or commitment results.
Performance predictors allow prospective customers to fast-forward themselves into the future to 'experience' the product or service and use the wisdom gained to make an astute purchase decision in the present ... and hence, reduce (or in many cases eliminated) fear of the unknown for prospective customers.
For marketers, removing fear of the unknown for prospective customers is critical to ensuring conversion or commitment results.
Performance predictors allow prospective customers to fast-forward themselves into the future to 'experience' the product or service and use the wisdom gained to make an astute purchase decision in the present ... and hence, reduce (or in many cases eliminated) fear of the unknown for prospective customers.
Wednesday, February 27, 2008
Are performance predictors, points of differentiation?
Consumers do not typically assess an offering in isolation. Instead, they consider an offering in relation to alternatives based on their own predetermined minimum requirements.
Points of parity* are the minimum expectations for a given product or service to be considered within a specific category or industry. Prospective customers require that these points of parity exist in a product or service offering before serious consideration is granted, and it is deemed a legitimate contester for the consumer’s share of wallet.
Failure to ensure your product or service includes your target markets' specific points of parity, is likely to result in your offering not being added to their “short-list” of potential providers.
As an example, you may be planning to introduce a new mobile telephone that includes video conferencing, allowing both callers to see one and another via their mobiles whilst carrying on a conversation (importantly, this is an example of a point of differentiation). Obviously this innovative feature would appeal to a large section of mobile phone users, and result in significant demand.
But, as you can see, this one feature is clearly not enough to ensure widespread consumer take-up. Without critical points of parity such as the ability to send and receive calls, send and receive SMS messages and store contact names and numbers the new product would be unsuccessful.
Importantly however, points of parity alone are not enough. In other words, points of parity are a necessary evil, but are not sufficient for consumers to use as the grounds for a final purchase decision. This is where performance predictors which are also points of differentiation come into the picture.
For example, promoting a client success statistic such as Nicorette's ActiveStop program which claims that smokers are 4 times more likely to quit smoking by using the ActiveStop program than with will power alone^. This success statistic is a point of differentiation for Nicorette (it is also a performance predictor). And if a competitor were to introduce a client success statistic that is perceived to be 'better' by smokers wanting to quit, then Nicorette would need to innovate and improve their results or change their point of differentiation (and performance predictor) to focus on another area.
* The term 'points of parity' is credited to Kevin Lane Keller, Brian Sternthal, and Alice Tybout (2002); cited in "Three Questions You Need to Ask About Your Brand," Harvard Business Review, September, 80 (9), 80-89.
^ Source: www.nicorette.com.au [Accessed 28/02/08]
Points of parity* are the minimum expectations for a given product or service to be considered within a specific category or industry. Prospective customers require that these points of parity exist in a product or service offering before serious consideration is granted, and it is deemed a legitimate contester for the consumer’s share of wallet.
Failure to ensure your product or service includes your target markets' specific points of parity, is likely to result in your offering not being added to their “short-list” of potential providers.
As an example, you may be planning to introduce a new mobile telephone that includes video conferencing, allowing both callers to see one and another via their mobiles whilst carrying on a conversation (importantly, this is an example of a point of differentiation). Obviously this innovative feature would appeal to a large section of mobile phone users, and result in significant demand.
But, as you can see, this one feature is clearly not enough to ensure widespread consumer take-up. Without critical points of parity such as the ability to send and receive calls, send and receive SMS messages and store contact names and numbers the new product would be unsuccessful.
Importantly however, points of parity alone are not enough. In other words, points of parity are a necessary evil, but are not sufficient for consumers to use as the grounds for a final purchase decision. This is where performance predictors which are also points of differentiation come into the picture.
For example, promoting a client success statistic such as Nicorette's ActiveStop program which claims that smokers are 4 times more likely to quit smoking by using the ActiveStop program than with will power alone^. This success statistic is a point of differentiation for Nicorette (it is also a performance predictor). And if a competitor were to introduce a client success statistic that is perceived to be 'better' by smokers wanting to quit, then Nicorette would need to innovate and improve their results or change their point of differentiation (and performance predictor) to focus on another area.
* The term 'points of parity' is credited to Kevin Lane Keller, Brian Sternthal, and Alice Tybout (2002); cited in "Three Questions You Need to Ask About Your Brand," Harvard Business Review, September, 80 (9), 80-89.
^ Source: www.nicorette.com.au [Accessed 28/02/08]
Tuesday, February 26, 2008
Performance Predictors and Open Source Marketing
Open source marketing is concerned with listening intensely to customers and working with them to develop (and re-develop) the products and services they desire. With open source marketing, gone are the days of creating products, experiences and marketing in isolation of customers, and later releasing it onto them. To explore the concept in more detail, see: http://www.changethis.com/14.OpenSourceMktg.
How does open source marketing apply to performance predictors? Well, I previously mentioned that performance predictors should not viewed as an after thought or add-on to the product development process. And the product development process should not be carried out in isolation of customers. So, when the customers are present, co-creating the products and services, they should also co-create the performance predictors.
The line between where the organisation ends and the customer begins is becoming increasingly blurred. Isn't that great?
How does open source marketing apply to performance predictors? Well, I previously mentioned that performance predictors should not viewed as an after thought or add-on to the product development process. And the product development process should not be carried out in isolation of customers. So, when the customers are present, co-creating the products and services, they should also co-create the performance predictors.
The line between where the organisation ends and the customer begins is becoming increasingly blurred. Isn't that great?
Monday, February 25, 2008
Performance Predictors and One-to-One Marketing
In 1993, more than a decade ago, Don Peppers and Martha Rogers penned one of the greatest marketing books ever written, The One to One Future: Building Relationships One Customer at a Time.
At the time, marketers around the world recognised the potential implications for a one-to-one marketing approach, with the first step being to implement a customer relationship management (CRM) system. There were wide ranging challenges which slowed or stopped the successful adoption of CRMs within many organisations, and, in my opinion, the full benefits of one-to-one marketing were never realised.
One-to-one marketing is not about CRM; although CRM is typically required to manage a one-to-one marketing approach. Take the start-up company, Brewtopia* as an example of one-to-one marketing.
Brewtopia (see http://www.brewtopia.com.au/) allows customers to 'brand' their own beer, wine and water. So, you could have your name on your own bottles of beer! This is one-to-one.
How do you merge the concepts of performance predictors and one-to-one marketing? The answer is tailor-making (as opposed to mass offering) your organisation's performance predictors to the requirements of the individual prospective customer.
For example, your organisation could provide a customised guarantee on the part of a product or service which is 'most feared' (i.e. carries the highest perceived risk) to the prospective customer. For one customer this may be lowest price, for another it may be after sales support. Provide a guarantee which is most relevant to the individual customer standing in front of you, rather than generalising based on the entire market.
*The author would like to disclose ownership of Brewtopia shares.
At the time, marketers around the world recognised the potential implications for a one-to-one marketing approach, with the first step being to implement a customer relationship management (CRM) system. There were wide ranging challenges which slowed or stopped the successful adoption of CRMs within many organisations, and, in my opinion, the full benefits of one-to-one marketing were never realised.
One-to-one marketing is not about CRM; although CRM is typically required to manage a one-to-one marketing approach. Take the start-up company, Brewtopia* as an example of one-to-one marketing.
Brewtopia (see http://www.brewtopia.com.au/) allows customers to 'brand' their own beer, wine and water. So, you could have your name on your own bottles of beer! This is one-to-one.
How do you merge the concepts of performance predictors and one-to-one marketing? The answer is tailor-making (as opposed to mass offering) your organisation's performance predictors to the requirements of the individual prospective customer.
For example, your organisation could provide a customised guarantee on the part of a product or service which is 'most feared' (i.e. carries the highest perceived risk) to the prospective customer. For one customer this may be lowest price, for another it may be after sales support. Provide a guarantee which is most relevant to the individual customer standing in front of you, rather than generalising based on the entire market.
*The author would like to disclose ownership of Brewtopia shares.
Sunday, February 24, 2008
Incorporating emotional appeal into performance predictors
Whilst performance predictors are essentially concerned with rational content which appeals to the left side of the brain, they can be incorporated into an emotional message (which have been proven to elicit action).
The current NZ Tourism TVCs are a good example. The scenes presented, of various NZ landscapes, are performance predictors (you can almost feel yourself in the scene!). However, they are presented in an emotional context to encourage action from viewers.
You are also able to 'tail' emotional content with rational performance predictors. For example, the NZ Tourism TVC could finish with, "94% of international visitors to NZ report it is the best destination they have ever visited".
Simply stating the facts and nothing but the facts in a very bland format may not be the best way to promote your performance predictors. Some inspiring content goes a long way to ensuring prospective customers actually receive your performance predictors within the context of a well crafted message.
The current NZ Tourism TVCs are a good example. The scenes presented, of various NZ landscapes, are performance predictors (you can almost feel yourself in the scene!). However, they are presented in an emotional context to encourage action from viewers.
You are also able to 'tail' emotional content with rational performance predictors. For example, the NZ Tourism TVC could finish with, "94% of international visitors to NZ report it is the best destination they have ever visited".
Simply stating the facts and nothing but the facts in a very bland format may not be the best way to promote your performance predictors. Some inspiring content goes a long way to ensuring prospective customers actually receive your performance predictors within the context of a well crafted message.
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