Benefits messaging
Creating messaging that resonates with your customer’s needs. In new markets, most customers will be coming from old solutions. These customers may not understand your new offering. This means you may need to message a lot of basics. In more mature markets, reduce this messaging and focus on differentiation to gain a competitive advantage.
Minimum offering size
Even the most basic product must solve a problem for a customer. Too little functional depth and they will reject you regardless of price. Imagine buying a fridge that doesn’t cool down properly. Here, we see two features with sufficient functional richness.
Customer’s expectations are also based on the competition. If all competitors offer certain features, these will become expected. Imagine a new car without adjustable seats.
Functional differentiation
Functional differentiators can be
Additional functional depth within a feature (FT2)
Additional feature(s) (FT3)
Traditional competitor analysis focuses on evaluating feature differentiators. The anti-pattern is that customers may not care about these features.
Instead of seeking feature parity, start with the question:
How big a problem does this feature solve?
For even more chance of success, consider:
Is this why your potential customers reject you and go with a competitor?
Types of differentiators
Differentiators can be used to:
Increase sales at the same competitor price point
Justify a higher price
There are many ways you can differentiate:
Functionality
Service quality
Customisation
Usability
Stability
Performance
Security
Price
Market saturation
Commoditisation is when a market and its associated products are so mature there are few real differentiators
Customers will select based on price and trusted brands
Consider differentiating on service quality
Functional depth at this stage is a significant barrier to entry for new companies.
Benefits messaging summary
Create messaging that resonates with your customer’s needs:
Major problems you solve
Differentiators they care about
Focus on explaining your core product where most customers are confused about the type of solution you offer. Imagine the basic messaging required for the first petrol car. This would have been very new to people. Shift more towards differentiator messaging when the market is mature.