It's easy to be a differentiator on the high street. Play some loud music, make it smell nice, spend a lot of money on your store design, be the price leader, let customers interact with your products, offer other services along your own, create a venue people want to be in and so on...
When it comes to the online game however, things are a little different. Products are being commodities and people know how to get the best deal. With comparison websites and tools such as google shopping, it makes it increasingly easy to find the best deal, and simply go with it. This current trend is forcing nearly all stores into being price leaders...offer the same product as other people, but just do it that little bit cheaper. There are plenty of drawbacks to this way of trading and competing. Firstly you fail to create that vital relationship with your customer because you are acknowledging that your product is a commodity, and that even you, the retailer, know that in the future the customer will continue to compare to find the cheapest deal. Secondly, you are driving profit margins down, and eventually you will price yourself out the game when you realise you can't compare with the big cost leaders exploiting economies of scale.
But fear not, there is a solution to avoiding commodotisation and the devaluing of your brand. Online differentiation! You don't NEED to be a price leader to be successful. Take John Lewis for example. In the e-shopping arena, John Lewis are by no means the cheapest, one would assume the couldn't compete online, but their sales figures suggest a completely different story. They manage to capitalise on their strengths. Their knowledge of what customers want, why people shop in the John Lewis store, and what customers want from the on line shopping experience. John Lewis have managed to put across their customer service, service quality and brand loyalty across to the customers. They have differentiated by doing this allowing them to maximise their profits.
Online stores should learn a valuable lesson. You can differentiate in other ways than your price. You can offer superior customer service and after sales, you can provide blogs and reviews on products you offer, you can have an innovative and functional website, or even provide some rich content media such as videos and games. Many of these differentiators will not only give you an edge over the competition but further develop your relationship with your customers, increasing loyalty and repeat sales.
What should you take from this blog?
- Yes, people are treating products more like commodities and searching around for the best deal nearly every time they make a purchase online.
- No, you don't always have to be the price leader. The best price isn't always 'the best deal'. You can differentiate in other ways, which will help your profits and customer lifetime.
Dare to be different.
I believe there are 3 simple rules to an effective Facebook strategy for a business/brand/product/service.
- Understand your brand, and the people who relate to it.
- Know the people who are following you, and what they want from you.
- Realise what they find interesting and engage in conversation.
Does this user want entertainment? The likely answer is yes. Although they would not be following brands directly for content it gives them, its likely that decent content will keep them happy and ultimately develop a RELATIONSHIP. This relationship is what brands should be striving for, some level of trust and developed respect for both parties. Its a two way activity. Don't think your followers aren't clever. They don't want to see your promotions straight away, they are in social media spaces to engage in conversation. So give them what they want.
Knowing your target market, and the type of people who follow you on Facebook can allow you to deduce what type of content they would find interesting. For example if we take Natwest Bank again, interesting posts would come in the form of government developments and changes to the way people's money is spent. Basically interesting things in the financial sector. It's pointless for Natwest to be posting about last night's X Factor results. On the other hand, if you're handling the Facebook list for a brand such as an online Bingo brand, it would be in your best interests to post about X Factor or other things you can identify your target market relate to.
There's no rule of thumb, but going into your Facebook strategy gung-ho won't get you anywhere. Think about your brand/product/service and what complimentary industries there are. Think about why prospects and customers are following you in the first place. Think about what they would like to hear about, the stuff they like. Don't expect a Facebook presence to immediately increase your sales, but think of it as an investment into the future relationship you could have with your customers. Don't give them the hard sell and try to push them into parting with their money straight away.
Follow these 3 rules and a relationship will develop, and over time lead to sales and new brand ambassadors, which in my opinion are the most valuable things a business can gain.
The dreaded first blog. Well first blog here...
I guess i should introduce myself :)
I'm marketing student on my fourth year at University and I'm trying to discover myself. Well more where i want to be. The real world is only just round the corner don't you know...
So far I know I want to be involved with digital media and marketing. I'm also into the ethos that keeping your good customers is far more important than acquiring a load of new ones. So i guess that's what I want to focus on. I mean there's no point being too niche too young so I think I need to find my feet in the digital arena before any specialisation is to start.
eCRM
Social Media
Digital PR
Digital Engagement
Creative Solutions
It's all good stuff isn't it...I best get trying to crack the industry.
