Archive for May, 2007
How do your customers make decisions?
Posted by: | CommentsLooking on a typical vendor web site, one finds varying levels of product information. Ideally, your potential customers will find the information they need to make a decision—or at least start making a decision. The best web sites combine business results with supporting technical detail to meet the learning needs of different buyer personas. Often those sites also include customer testimonials and quotes but of course, everyone realizes that only the best quotes have been picked. I mean, really, what vendor would include lousy quotes in their web site?
However, those negative impressions generally exist somewhere on the web. Contrast the typical enterprise technology vendor with those for consumer products. A primary difference is that consumer products are more often sold through distribution—and not exclusively. Therefore the seller is more inclined to encourage unbiased commentary than the product vendor. Check out the product information on Amazon or Musicians Friend. These sites are for product distributors rather than product developers. They offer third-party comments from respectable sources and from regular people. I generally find the recommendations helpful—if 9 out of 10 are favorable, I’m inclined to buy. I can quickly dismiss the statistically irrelevant, either pro or con.
On Amazon, you’ll find book blurbs from the publisher followed by commentary and recommendations from customers. Check out the discussion on David Meerman Scott’s book The New Rules of Marketing including my favorable review plus a few others.
On Musicians Friend, hundreds of people report that they have bought and loved the Shure SM58 vocal microphone. Hmm, maybe I’ll get that one since people seem to like it.
Since it’s unlikely you’ll have this unbiased information on your website, where will your customers go to find it? Where are your products being discussed online. And what are they saying about your company and your product? Do a web search for your company and product name and you’ll find out.
The No Guy
Posted by: | CommentsBob reminds us that saying no now means saying yes later. Why is focusing so hard?
Product manager: This product is designed for pharmacies in hospitals with more than 1000 beds.
Sales guy #1: I sold it to a radiology department
Sales guy #2: Oh, can I sell it to urgent care?
Sales guy #3: I have a customer with 500 beds.
Maybe that’s why 28% percent of product managers have the authority to reject contracts.
“But can’t you just say 'Yes' to everything?”
No.
Friday Funny: United’s Red Carpet
Posted by: | CommentsUnited is now offering Red Carpet service at the airport. “Premier” customers go across the red carpet; “regular” customers don’t. Does this seem silly to anyone else? None of the premier customers think it’s special but it’s somewhat likely to offend the regular ones. And it’s so clearly an afterthought because there isn’t adequate room in the gate area for the special aisle.
This is why “user interface” is a phrase that usability experts despise. The implication is that you can slap a UI onto an existing product to make it user-friendly. Did some marketer at United say, "Our customer satisfaction will go up if we throw a red carpet on the floor." The red carpet doesn’t make a better experience and its clearly not integrated with the reality of the gate area.
While I’m on the subject, are your marketing programs in sync with your operational realities? How often does your marketing department have a great idea that can’t be implemented or that generate the wrong results? Do you generate leads even though sales people don't want them?
What’s so frustrating is the silo nature of the typical organization, the disconnect between development, marketing, sales, and others. As a product manager, you should step back from your daily grind at look at the whole product experience through the eyes of buyers and users. Is it integrated? Or merely a disconnected set of parts?
Two upcoming events in Boston
Posted by: | CommentsOur Boston Pragmatic Marketing Network event on June 4th is in conjunction with the Boston Product Management Association. We will be discussing Start with the Ending, how to earn credibility on the product team, how to assess the state of the product, and how to assess the state of you. Discuss what works and what doesn't when your role changes from tactical to strategic.
The BPMA has another event later in the month, on June 21st with Mara Krieps, who will be discussing Play Games With Your Customers to Build Better Products.
on pricing
Posted by: | CommentsI was 20 when my wife & I got married and I used to play guitar for weddings to make a little extra cash. I did the first one for $40–an astronomical sum in those days, at least it was to us. And the bride didn't blink at the price. For the next wedding I changed $60 and the planners accepted immediately. At $80, still no hesitation, nor was there at $100. When I got to $125, I started getting some resistance and at $140, they balked. So I set my price at $125 and lost only a few deals.
It's really hard to ignore your costs in pricing but you should. What's the cost of a couple of hours on a Saturday? $20/hr seems more than enough! But $60+ dollars a hour was even better. My wedding planners weren't really paying for two hours on a Saturday– they were paying for my ten years of experience that created a lifetime memory.
You don't pay a doctor by the hour, why should you pay by the hour for a musician… or a consultant? How many years of experience led to a breakthrough software or software product?
At Pragmatic Marketing, we accelerate product management. We help heads of marketing get their people up to speed quickly so they don't have to do it themselves. More important, we help you deliver products to market faster and with shorter time-to-profit! What's the value of better products faster? What's the value of having standardized business cases and market requirements? What's the value of crisp positioning? What's the value of a standard, repeatable approach to product management?
So what's the value of your offering to the client? That's the question one must answer when pricing a product.








