Are the Benefits worth Paying for?

When developing a new product or service, are you product- or customer-focused? If you are product-focused, you will devote time to tweaking and refining the product so it works, can be manufactured cost effectively, and outperforms its competitors. If you are customer-focused, you will think about who will use the product, how the user will interact with your product, and what problems the product will solve.

There are hundreds of gadgets or service programs available in the marketplace. The true measure of success for a new product launch is: Does it sell? The only way a product or service will sell is if it benefits the user in concrete, measurable ways and if the product's pricing can be justified. That is, the price needs to make sense to the purchaser, considering what she is gaining, and what she is giving up.

I've been thinking about what a new condominium elevator building is truly selling. On the face, these condominiums offer purchasers the opportunity to:

• Simplify their lifestyle (buyers want to start over, often after a life change) Benefit = Fresh Start without old baggage
• Downsize (buyers want to avoid lawn maintenance & house chores) Benefit = Less Work and Worry
• Freely travel (buyers can lock up and leave) Benefit = Freedom

Now, I translate these opportunities into measurable lifestyle benefits:

• For the Simplifier, the old choice had a monthly cost (principal + interest + property taxes + insurance) which was paid to the bank; there was also an emotional cost associated with it. Ask, 'How much does a Fresh Start cost?'
• For the Downsizer, home maintenance costs time, money, and effort--either the effort to do the work, or the effort to manage the household. Again, the cost is measured financially and emotionally.
• For the Traveler, the old choice (probably a single family residence) hindered the owner's ability to travel or visit family and friends. This is an opportunity cost that is difficult to measure. Freedom is priceless!

During the product development phase, it is important to keep customer-focused. With Customer Driven Design, a product evolves as a response to a stated or silent customer need. As marketers, it is our job to discover what really makes our customers tick. What really matters to them. When we understand this, and the value they attach to these issues, we are able to create solutions that enhance lives.

Have you discovered a silent customer need? In what ways have your products or services enhanced lives? Share it on the blog!