A Successful Company Sells Experiences, Not Products

A Successful Company Sells Experiences, Not Products

Ask a car lover about the tyre model they like. Will they talk about things like the chemical composition of the rubber and the price per set? Most likely not…

Sure, they may mention that it’s cheap or even expensive. But they are more likely to talk about how quickly it was delivered when if they bought it online, how good the fitting service was, and how shiny their car looked afterwards. They may even talk about what other people said when they checked out the latest mag wheels.

In these cases they aren’t talking about the product per se. It is all about what they got out of it—their experience.

So what can you actually do about this paradigm shift? How do you sell experiences? Here are some tips to keep in mind:

  • Convince customers you have the best value. This is crucial. You have to make sure that your customers are getting their money’s worth from what you offer. This means that you have to clearly explain what they can get out of it. It’s like selling a vehicle with a powerful engine. You don’t emphasize the torque lb-ft. instead, you point out that your vehicle can carry more passengers and cargo, handle steep inclines, and even tow other heavy vehicles.
  • Don’t start a price war. Many find it easy to slash prices as a way of providing a heady experience for buyers. It makes people feel good when they feel like they paid less than what a product really costs. But getting into a price war can just lower your profits and ultimately sink your business. Instead, you can maintain or even raise prices to emphasise the high quality of your products. This makes people feel like they’re in an exclusive club. It’s this feeling that explains how Starbucks can sell expensive coffee, and it also explains the Apple marketing phenomenon.
  • Better service will make the price worth it. When you just sell products, it’s a simple trade of money for a product. But you’re better off looking at it as serving the needs of your customer. So provide the good service that people will want to experience. Have a customer support department or assistant that can answer questions and handle complaints cheerfully.
  • Be easy to deal with. Don’t make things difficult, as that can just sour the customer’s experience. So your customer support hotline should be available when customers call, and people shouldn’t wait too long before they get to talk to someone. When they need to return a product because it doesn’t work, don’t make them jump through hoops to get a replacement. Businesses who are always available and can replace defective products in a jiffy always get high ratings in customer reviews.
  • Make customers trust you. Don’t lie in ads, and don’t suddenly lower the quality of your items to cut costs hoping the customers won’t notice. Once you earn the customers’ trust, you can then count on their loyalty. They’ll be intrigued by new products, and they’ll feel that any change is an improvement because they trust your brand.

Remember, Starbucks doesn’t just sell high-priced coffee. They sell you the experience of savoring their premium coffee by providing high quality products and equally impressive service. Replicate that in your business, and you’re on your way to success.

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