Tailoring a compelling, and addicting value proposition?

[___David___1]

For instance, Ikea figured out how to get a very pleasurable and addicting experience for mothers and families that keeps them coming to shop. It's very compelling, addicting, and high value for the target audience.

My thinking is to understand the needs of the target audience/customer, and then tailor a value proposition that is addicting, and compelling. Which includes the exactly right experience, the exactly right product, brand, for the right price.

Is a new business essentially tailoring everything in order to suit the needs of their target audience(in a way that is very compelling, addicting, and high value)?

 

[Maxwell83]

Is a new business essentially tailoring everything in order to suit the needs of their target audience(in a way that is very compelling, addicting, and high value)?

It depends. Solicitors, petrol stations, dentists, mechanics and a million more businesses don't attempt to be "addictive" as it would be a waste of money. You use them when your circumstances dictate that you need them, which may be once in a lifetime. So their money is better spent trying highlight that they are the business of choice when you need one. Not trying to get you addicted to what they offer.

 

[Mark T Jones]

Let me simplify your post in plain English


Know who your customer is

Know what they want / are prepared to pay for

Deliver it well

Encourage extra spend

 

[fisicx]

I needed a spare part for my car. Found what I wanted on eBay and it arrived yesterday. I don’t particularly like eBay and I have no idea who the seller was. My needs were met my the availability of the item, nothing compelling or addictive about it.

IKEA isn’t addictive or compelling. It’s a pain in the butt walking all round the store just to get another billy bookcase.

 

[Mark T Jones]

IKEA isn’t addictive or compelling. It’s a pain in the butt walking all round the store just to get another billy bookcase.

You aren't ideas target customer - neither am I, so our views on whether it's good or not are irrelevant.

In fact, learing not to worry about the views of non-target customers is itself a valuable skill. It's a huge part of what got Trump into power

 

[Fagin2021]

Is a new business essentially tailoring everything in order to suit the needs of their target audience(in a way that is very compelling, addicting, and high value)?

Another feather in the cap for Pablo Escobar then ?

 

[AstEver]

My thinking is to understand the needs of the target audience/customer, and then tailor a value proposition that is addicting, and compelling. Which includes the exactly right experience, the exactly right product, brand, for the right price.

This is a market-driven (or customer-driven) approach as opposed to product-driven approach. Whichever approach a business chooses, the customer experience is important as we are increasingly living in experience economy.

 

[fisicx]

Whichever approach a business chooses, the customer experience is important as we are increasingly living in experience economy.

Not sure that’s true. Unless you include things like convenience and price in the definition of experience.

 

[___David___1]

I needed a spare part for my car. Found what I wanted on eBay and it arrived yesterday. I don’t particularly like eBay and I have no idea who the seller was. My needs were met my the availability of the item, nothing compelling or addictive about it.

IKEA isn’t addictive or compelling. It’s a pain in the butt walking all round the store just to get another billy bookcase.

That is true. Many businesses compete on reputation or very slight differentiation because the things customers want are very commodity like. There is only the ability to build up a reputation and product catalog in some businesses. I believe there is a spectrum where some businesses can add a brand image and above that some can tailor a very distinct experience.

In my opinion, Ikea is great for getting kids to be quiet. Some ikeas have free daycares so parents don't have to parent their kids for a while. It's mostly great for families, couples and students I believe. It is pretty much tailored more towards women and their boyfriend or family more than it is for men since most men don't enjoy walking around shopping for house decor.

And, imo a compelling reason to sell to women since they are the ones that consume more products than men, and even shop for men and families in many circumstances as a control mechanism.. which is another story.

 

[___David___1]

This is a market-driven (or customer-driven) approach as opposed to product-driven approach. Whichever approach a business chooses, the customer experience is important as we are increasingly living in experience economy.

with people more accustomed to social media's ultra high level of tailored content it seems like in some businesses the way to innovate, and make a compelling value proposition is tailoring a exceptional customer experience that is pleasurable and rewarding to interact with along with the actual product/service. Especially with local service businesses where there are so many ways to electronically communicate with the client to further create a pleasurable customer experience.

Would the concept be to isolate the product, and experience in order to optimize them both? For example, a premium or luxury brand would make the highest quality product, but also attach a branded experience to it. Would it be accurate to say in many businesses it is not just a product/service, it is in 'equal parts' a product/service, brand, and experience?

 

[AstEver]

Not sure that’s true. Unless you include things like convenience and price in the definition of experience.

I use the word 'experience' very broadly here, to mean the whole customer journey from customer acquisition to post sales.

with people more accustomed to social media's ultra high level of tailored content it seems like in some businesses the way to innovate, and make a compelling value proposition is tailoring a exceptional customer experience that is pleasurable and rewarding to interact with along with the actual product/service

I don't understand your linking social media content creation, innovation and customer experience. I wouldn't link customer experience with innovation here - innovation pertains to product, service or process.

Would it be accurate to say in many businesses it is not just a product/service, it is in 'equal parts' a product/service, brand, and experience?

It is about all of this and more, and ideally, you want to excel in everything but in reality it is impossible, and creating a good customer service, not to mention good customer experience, is expensive and complex.

 

[fisicx]

I use the word 'experience' very broadly here, to mean the whole customer journey from customer acquisition to post sales.

In other words, exactly the same as it's always been. Some have done it better than others but it's been this since Gronk first offered Grunk a hunk of Mastadon.

 

[___David___1]

I don't understand your linking social media content creation, innovation and customer experience. I wouldn't link customer experience with innovation here - innovation pertains to product, service or process.


It is about all of this and more, and ideally, you want to excel in everything but in reality it is impossible, and creating a good customer service, not to mention good customer experience, is expensive and complex.

People have become accustomed to youtube, tiktok, instagram having an algorithm tailor content for the individual's taste. People are accustomed to seeking more and more experiences rather than accept a basic experience in some scenarios.

A business wants to create a good experience, a good product & brand as their value proposition. Then continually improve it bit by bit till it is exceptional rather than just good. Is this a more realistic view of what a business should try to do?

 

[___David___1]

In other words, exactly the same as it's always been. Some have done it better than others but it's been this since Gronk first offered Grunk a hunk of Mastadon.

I believe just like in sport or a craft the overall standards improve over the decades. In certain businesses the standards they are expected to have are multiple payment options, multiple platforms to interact with the customer(website, email, blog, instagram, phone), and the product, brand and marketing is expected to be well tailored(and optimized) to the target audience. Allbirds shoes uses innovative proprietary technology to make their eco-friendly wool trainers. Some independent restaurants make foods that are encouraging for customers to take instagram posts or tiktok videos with. Pizza chains now have the ability to show online if the pizza is still cooking, if it's on route, and what is the estimate time of delivery. There are now lots of different ways now to use tech to improve customer experience, improve marketing/promotion and improve product, and brand image. At least that is what I've personally noticed.

I believe the standards/expectations of customers in SOME industries have changed. Companies big and small in those scenarios are able to use technology to further tailor and optimize their experience, marketing, product and brand more accurately for their customers.

 

[japancool]

People have become accustomed to youtube, tiktok, instagram having an algorithm tailor content for the individual's taste.

Are you comparing YouTube, TikTok etc to buying a screwdriver?

 

[AstEver]

In other words, exactly the same as it's always been.

Not the same because in the experience economy people pay for experience, with the service being a part of the experience, rather than for a service delivered with good experience.

 

[___David___1]

Are you comparing YouTube, TikTok etc to buying a screwdriver?

I hope not. It's not applicable across the board to every single business. In many scenarios the competitors are using tech or tactics to tailor the experience, and product more accurately to the audience's exact needs. Before, restaurants were only about good customer service, and good food. Now there is another tactic available of making food that is interesting enough to share on instagram or tiktok. Also, restaurants can become destination places because of social media, blogs, and other different online platforms. Marketing and promotion on the internet has changed as new social media platform and influencers are created. Everything is starting to become more about experiences.

The tactics available for certain businesses have changed. Businesses should see where they can accurately make improvements to the value proposition for the customer's exact needs. There are many industries where the competition has not made these available improvements which is of course potential innovation/disruption to gain a competitive edge, more exceptional customer experience, and more compelling value proposition. In conclusion, I believe over the last 15 years or so there has been a shift in overall trend for tailored experiences, and more accurately designed products to their needs.

 

[AstEver]

A business wants to create a good experience, a good product & brand as their value proposition. Then continually improve it bit by bit till it is exceptional rather than just good. Is this a more realistic view of what a business should try to do?

Yes provided that this is what the business strategy dictates to do.

 

[___David___1]

Yes provided that this is what the business strategy dictates to do.

This is more inline with the traditional tech startup's approach of constantly iterating/optimizing the product to exactly match the customer's precise needs. The tech startups even optimize their marketing activities in this trial and error method.

Ultimately, is the new approach to business to still do strategy with research, critical thinking, and feedback, but the actual execution is done by only feedback aka relentless trial and error / optimization?

 

[fisicx]

Not the same because in the experience economy people pay for experience, with the service being a part of the experience, rather than for a service delivered with good experience.

Sorry but that just sounds like buzzword bingo. People have always paid for experience where appropriate.

 

[AstEver]

It is difficult today to distinguish between buzzwords, fads, cliches, hype, etc. and something substantial.
We seem to have a trend:
https://www.mckinsey.com/industries...ights/cashing-in-on-the-us-experience-economy

 

[___David___1]

Sorry but that just sounds like buzzword bingo. People have always paid for experience where appropriate.

I am a different person replying. In my opinion, as more and more basic needs in people's lives are fulfilled, luxury, and emotional and aspirational needs are next to be fulfilled. It is also cheaper and easier to improve experience using technology than it was before.

To me it seems businesses are increasing value by serving emotional and aspirational needs in the form of the brand and experience.

 

[Newchodge]

People have become accustomed to youtube, tiktok, instagram having an algorithm tailor content for the individual's taste. People are accustomed to seeking more and more experiences rather than accept a basic experience in some scenarios.

You missed out the word 'Some' before 'People' each time.

 

[JEREMY HAWKE]

Let me simplify your post in plain English


Know who your customer is

Know what they want / are prepared to pay for

Deliver it well

Encourage extra spend

Mothers ! The OP said it could be Mothers and he likes to keep them coming
Hope this helps