Business StrategyCompetitionGolden TriadInnovation

4 ways to create a luxurious experience without breaking the bank

Didn’t read the intro article on achieving mass market adoption like Amazon or Google? – check it out here

In life quality is king. If prices didn’t exist no one would choose a Camry over a Cadillac and the company with a better experience usually wins.  This preference for better products is seen vividly in the automobile industry with luxury brands reigning supreme. High quality manufactures like BMW and Mercedes are significantly more valuable than average brands like Ford and GM. This is true even though the mass market brands sell significantly more vehicles!

For young companies seeking Mass Market Adoption they need to emulate these companies and offer a high quality experience. However, unlike Mercedes or BMW, it has to be done while considering price. With this in mind here are 4 strategies companies can use to be high quality without breaking the bank:

  • What is it? Companies can use human psychology and the flexibility of software to make technology feel magical.  When done well (read intuitively or simple) new products seem “better” than more powerful or feature rich systems.
  • When is it used? This principle should be used to make any product simple or intuitive enough that your grandma can use it. It is especially powerful when there is a specific customer or experience that can be optimized for.
  • Examples: Early versions of iOS versus early versions of Android. Airbnb’s platform for rentals versus house listings on Craigslist.

  • What is it? Newer technologies should be built to collaborate with existing software. This strategy enables new products to go after a large existing user base (i.e. Gmail, Salesforce, Quickbooks) with minimal effort. 
  • When is it used? Integrations are ideal when looking to add higher level functions to “basic” services like email or text. Additionally it’s useful when your customers use a popular application that works closely with yours. 
  • Examples: Mixmax is based off Gmail. Facebook links to Eventbrite Tickets

 

  • What is it? Technological progress almost always comes from improving it’s predecessors.  These improvements can result from incremental changes or uses in new ways that create entirely new markets or products.
  • When is it used? It is best used when an existing technology can be adapted for a new use (i.e. Snapchat). Alternatively, it is great when a technology is popular but it’s user experience can still be improved/adapted (iMessage).
  • Examples: Snapchat’s evolution from texting pictures. Slack’s evolution from AIM direct messages.

 

  • What is it? Unlike evolutionary change a rare few technologies are able to combine multiple different pieces together in a wholly unique way. These revolutionary products are so compelling they usually rapidly dominate markets.
  • When is it used? This tactic is best when looking at a stagnant industry or a nagging problem that has high reward but needs radical change. Additionally, revolutionary change is important for companies to attempt regularly. This is shown eloquently by Steve Job’s success at Apple versus holding the status quo and failing like Kodak did with it’s dismissal of digital photography.  
  • Examples: Apple’s iPhone and the SmartPhone, MySpace/Facebook and Social Media, Airbnb and the Sharing Economy.
Until Next Time

By following these tactics any company can work to be better then their competition without breaking the bank. Next time we’ll cover how to be  “faster” than the competition.

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