We live in an Experience Economy. Customers judge us according to the experience of dealing with us, just as we do when we are customers.
Those who have not understood the concept of the Experience Economy often resort to the “commoditization” of their offerings. They have lost sight of anything that makes their offerings different or distinctive, and the only way they can compete is on price. That’s just about the lowest level of marketing.
What do I mean by commodization?
Commodities are the things we get from the natural world – minerals dug from under the ground, the vegetables and fruit we grow from the ground, the animals who feed on the ground. Coal and copper are what they are no matter where they come from. Apples and pears likewise. Beef, pork and chicken meat do not carry passports.
True, there are different levels of quality, but within each level, the product is what it is, wherever it may have originated. Its price is determined by the basic law of demand and supply.
When a business sells its products or services with no added value, it is behaving as though it sells commodities. Imagine having a business directory such as Yellow Pages, in which there are no advertisements, only basic entries, just like a directory of domestic telephone numbers.
If you were looking for a builder, a plumber or a florist, how would you know which one to choose?
That’s the effect of commoditization. It gives customers no reason to choose you, except price. So remember why you are in business, and why people should spend money with you rather than elsewhere. And put that across in every contact with customers and those who should be your customers.