Salvi Jansen

Introduction

Whenever we need something new, we are inevitably confronted with the problem of choice. Product A differs from product B, so which one suits my needs? Then again, what are my needs and should I allow some smart sales person to add needs to my list? How much extra could they get me to pay in order to eradicate my choice problem?

Choice

Without sounding too much like I just stepped out of a Matrix movie, I believe the problem is "choice". It is not a privilege, it is a burden. Especially when talking about products that have endured some kind of servitization like phones, computers... We are not picky when it comes to choosing between two bakeries. Their products are easy to compare and do not really differ. You could say commodity products have an easy interface and low risk rate (of buying something that turns out to be a lousy product). We are not afraid of choosing amongst commodity products. After all, it is their intrinsic nature to be as cheap as possible. Products or services that are all about "adding more customer value" can only dream of the amount of trust these commodity products receive.

Identity

The smartest way of alleviating the customer's choice problem is to deny your identity. Apple is world champion when it comes to this strategy. Tired of choosing between PCs? Try an iMac, because it is something "else". Tired of choosing between phones? Try an iPhone, because it is not a mobile phone. Deny your place in a "phone line-up". So except for an iPhone having lots of technological innovation inside, people are paying for customer value created by removing the choice problem.

All servitized products will inevitably converge in this global market. If a company like Apple is able to convince the public that their device has an acceptable workability, durability... therefore checking all boxes inside the customer's brain, people will be more than willing to wave the difficult choice process goodbye, even if that means a higher price.

Learn from IT

Difficult interfaces make it hard for two programs to connect. The same goes for the public and a product. Most people are not interested in the fact that computer X has 53 usb ports, an Intel xx60 superPRO processor (fictional) and so on... It is hard to give meaning to all of those technical specifications. We need to ask sales people to make the choice for us, goodbye control!

One should try to create an easy to understand interface between the product or service and the customer. "Our products are top-notch and durable like a diamond" will sell more than the exact specifications of your products.

Strategic guidelines

All companies involved in servitized product development, in other words products your customers need to rely on for a long period of time, and a world of services binding your customer to the product, should try to:

1. Simplify their product-customer interface;
2. Step away from the product and services, and communicate their mission to alleviate the customer's choice problem;
3. Have the self-confidence to (1) stop competing with others like they "need to", (2) stop promoting the product like they do not believe the product will sell itself.

I would love to hear your replies and additions to this article. This is only a first draft.

When speaking about innovation and new business models, people tend to come up with all sorts of things, not all of them being equally well thought-out. Today I would like to share my thoughts on Flattr.

 

 

People at Flattr are good at identifying the problem, that's for sure. There is a lot of online content, crafted by people who would like to get rewarded in more than a "great job" way. Even I sometimes would like to get a few cents for replies I give on helpdesk boards and such... It would be a great thing if we could - in a way - pay people for things we find to be helpful.

 

Flattr offers you the possibility to donate a small amount to things you like on the web (and have a Flattr button). If you click ten different Flattr buttons, your monthly amount will be spread over these ten authors. Great, not?

Will the system kick off or not?

I - Money in advance

II - Payed according to the users' activity level?

III - There's good and excellent

IV - Take off?

Just my two cents

1. Make people choose the amount when clicking. (Make them choose from a few options, no input field.) This way people can more accurately "rate", and boy do we love rating.
2. No fixed amount a month. If I don't want to spend anything, that should be fine. If I want to spend €200, let me do it, without the hassle. It's voluntary payment, remember? This way, you also pay when you have the feeling of having received something (like having read a great article).