The Commoditisation Trap
Probably within a few years from now, we will know people who watch “How to” videos on YouTube and then decide to remove their own tonsils, as opposed to paying a doctor for the service. Let’s face it – every business is at risk of becoming a commodity, thanks to the speed of information delivery, consumer empowering technologies, and media outlets that tell consumers that the economy is too fragile for them to be spending money.
So how is it that travel agents still thrive after the advent of Priceline and Travelocity? Why do some companies maintain premium pricing while similar businesses have to resort to discounting to attract price sensitive consumers? And the most important question of all, how can YOU assure that YOUR business doesn’t fall into the commoditisation trap?
The recent recession has only reinforced the economic truth that brands that “wow” customers thrive and survive. Conversely, brands that simply satisfy consumers are at the risk of extinction.
Many companies have found ways to not only satisfy customers but also emotionally engage consumers through “MUST HAVE” experiences. What is the secret?
cultural enhancement – happy employees are key! Work made fun gets done!
strengthening the platform of streamlined service delivery – consumer loyalty is built on the relentless pursuit of perfect, quick, and effortless service.
making personal connections. Organisational development guru, Charles Handy says, “The companies that survive longest are the ones that work out what they can uniquely give the world – not just growth or money – but their excellence, their respect for others, or their ability to make people happy. Some may call those things a soul.”
Discuss some of these points with your team and ensure you move from the threat of commoditisation to ‘beloved brand’ status.
What strengths do you have to reduce your risk of commoditisation?