Escaping Commoditisation
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www.flickr.com/photos/lobraumeister/3168287411
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Avoid the race to the bottom on price by moving from the customer's thinking from price to value. Transform your business by exiting Level 1 thinking and move the conversation to Level 2 and Level 3 of Perceived value. Lead with your core uniqueness, lead with your people and their passion, not your products.
Transcript of Escaping Commoditisation
www.flickr.com/photos/lobraumeister/3168287411
www.flickr.com/photos/theplanetdotcom/4879425518
“We are different”
www.flickr.com/photos/traftery/4773457853
“We are really different”
Commodity
A race to the bottom
www.flickr.com/photos/left-hand/2922904230
Race to the bottom
Race to the bottom
Race to the bottom
www.flickr.com/photos/carquestguy/4335716783
www.flickr.com/photos/roblee/348548738
Race to the bottom
Price vs Value
www.flickr.com/photos/josephrobertson/419101649
Being commoditised
www.flickr.com/photos/bronv/4412939449
12
View _Allen_'s map
Taken in Paris, Ile-de-France (See more photos or videos here)
48°51' 58" N, 2°19' 30" E48.8660452.32488
Escape the Red Ocean
13
Navigate to Blue Oceans
Creative thinking
www.flickr.com/photos/left-hand/4032334382
www.flickr.com/photos/fotoosvanrobin/2545857883
Transformational thinking
Managing the inevitable
www.flickr.com/photos/vek/4665924239
www.flickr.com/photos/winemegup/3641912321
Get it right
www.flickr.com/photos/roome/3390682853
Get it wrong
OK, but how?
www.flickr.com/photos/ores2k/394359583
the CLOUD It is not about
Technology It is not about
It is not about
It is about
PROBLEMS Tomorrow’s
What is the problem
for which you are the
solution?
The 6M€ Question?
Running shoes
www.flickr.com/photos/evaxebra/5620076409
Feet solutions
www.flickr.com/photos/pmtorrone/4573661684
Technology and innovation
www.flickr.com/photos/rhinoneal/3907394091
Avoid Willy Wonka thinking
www.flickr.com/photos/uaba/2923459060
Think like a Rock Star
www.flickr.com/photos/feiticeira_org/4602640594
Dominate your own category 3
Differentiate at Level 2 and Level 3 2
Competitive separation 1
SalesChannel Europe ©2011 All rights reserved 32
Competitor 2
Competitive Separation
YOU Competitor 1
Competitor 3
Competitive Set
Core
Goal: Use innovation and differentiation to break out of your traditional set of competitors
Unmatchable offer
* Question: Who is your Reference Competitor?
Reference Who is your
Competitor?
Example
Slideshare
Dominate your own category 3
Differentiate at Level 2 and Level 3 2
Competitive separation 1
Avoid looking in
the wrong places
www.flickr.com/photos/sea-turtle/3568062665
Perceived value
www.flickr.com/photos/vox_efx/3767822998
It’s all about the target
SalesChannel Europe ©2011 All rights reserved 40
Basic Product/Service: • Technology • Price performance • Product quality
Enhanced Services: • People • Perceived value • High touch • Exceed customer expectations • Delight and astound customers
Basic Product/Service
Differentiation: 3 Levels of Perceived Value
Enhanced Services 3
1 Basic
Product/Service
Your Hosted
Services
Support Services: • Levels of support • Quality of service • Systems • Processes
2 Support Services
SalesChannel Europe ©2011 All rights reserved 41
Basic Product or
Service Support Enhanced Service
Focus Requirements/Specs Satisfaction Delight
Customer Concern
Does the product/service meet my needs/standards/ expectations?
Is the product/service convenient/efficient/easy to access or use?
How do they make me feel?
Key Elements Technology/Technical expertise
Systems, processes, policies, and structure
Leadership and Culture
Controlled by Technical specialists Management Front line performers
Abilities Needed Industry/Field/Trade/ Clinical Knowledge or Skills
Intellect and Reasoning (IQ)
Emotional Intelligence (EQ)
1 2 3
Differentiation: 3 Levels of Perceived Value*
*www.jimclemmer.com/blog/2011/04/12/the-three-rings-of-perceived-value-an-integrated-customer-focus
Differentiation = your
Inner Advantage
Example
44
How are we difference?
Exercise
SalesChannel Europe ©2011 All rights reserved 46
Differentiation exercise
Are you remarkable?
"...but what really blew me away...” exercise
"I was pleased that we got what we paid for, that the service worked just like it was supposed to, that they honored their contract from start to finish, that the user experience was simple and powerful like they promised, that there have been no glitches, hick-ups, outages or crashes and that all our support issues have been resolved quickly and painlessly. But what really blew me away was ____________"
Dominate your own category 3
Differentiate at Level 2 and Level 3 2
Competitive separation 1
erent f
dif think
Commodity thinking
www.flickr.com/photos/rooreynolds/5848100806
One size fits all thinking
www.flickr.com/photos/marcwathieu/3963792473
Creative thinking
www.flickr.com/photos/vek/5543548284
Structured thinking
www.flickr.com/photos/juhansonin/3703735824
SalesChannel Europe ©2011 All rights reserved 53
Differentiation Mindset
Old Paradigm New Pardigm
Be rational Be passionate
Be cautious Lead, don’t follow
Aim to satisfy Aim to surprise
Be practical Be unreasonable
Innovate when necessary Innovate incessantly
Get it mostly right Sweat the details
Think like an engineer and feel like
an accountant
Think like an engineer and feel like
an artist
www.flickr.com/photos/maestropastelero/258000448
The Difference is YOU!
Examples
Dilemma of choice
Differentiation
Black socks
Pain vs Gain
What is the problem
for which you are the
solution?
The 6M€ Question?
Rackspace
are The DIFFERENCE
SalesChannel Europe ©2011 All rights reserved 63
Basic Product/Service: • Technology • Price performance • Product quality
Enhanced Services: • People • Perceived value • High touch • Exceed customer expectations • Delight and astound customers
Basic Product/Service
Support Services
Enhanced Services
Differentiation: 3 Levels of Perceived Value
1
2
3
Basic Product/Service
Your Hosted
Services
Support Services: • Levels of support • Quality of service • Systems • Processes
Dominate your own category 3
Differentiate at Level 2 and Level 3 2
Competitive separation 1
SalesChannel Europe ©2011 All rights reserved 65
“Genius is one percent inspiration and ninety-nine
percent perspiration.”
- Thomas A. Edison_
it Happen
it Happens
Success:
Think like a Rock Star
www.flickr.com/photos/feiticeira_org/4602640594
Disciplined effort and
resilient thinking
Victory feels like this
www.flickr.com/photos/rhinoneal/2573461339
www.flickr.com/photos/winemegup/3641912321
Get it right
www.flickr.com/photos/littlebabyjesus/123838009
Get it right
www.flickr.com/photos/horacio/3781750
David R Ednie President & CEO
SalesChannel Europe Ph: +33 676 60 09 25 (FR)
Email: [email protected] Website: www.saleschannel-europe.com
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