The positive experience of our clients is something basic to know how to differentiate ourselves from the competition. We have to find a way to say: “here I am”, differentiating ourselves by value and setting the price that turns your project or idea into a viable and empathetic business. Daniel Marotte, Agricultural Mailing List director of Hydra Digital, accompanied us on April 6, 2019 at Premarketing Day to tell us how to do it. In this annual event we bring together marketing professionals to talk about Digital Marketing, Branding, social media strategies and sales campaigns, SEO and Online Advertising. Daniel told us how to give the customer experience a twist to work the value business in a presentation loaded with examples and great content. Daniel began his presentation by presenting the case of this renowned coffee brand, which started, like most successful brands, “from the bottom up” and based on a simple idea: selling coffee in bulk. Year 1971. Three friends passionate about coffee decided to open a store to sell in bulk. They admired and respected the origin of each grain. They ground and roasted it so that their customers could prepare delicious coffee at home to their liking. Business was going well… Until a fourth man arrived.
This man revolutionized the business by “taking coffee out to the streets” and making them the largest coffee company in the world through differentiation. Howard Schultz was that fourth man who wanted to sell ready-to-drink coffee in addition to bulk. He dared to break the molds, betting on growing and differentiating himself. The founders did not approve of the idea at first. However, when the company focused on delivering a complete customer experience around the world of coffee… then yes: it succeeded. It is likely that, like any of us, you have also tried one of their famous coffees. Daniel alluded to the Starbucks brand , a great success story thanks to the customer experience it offers to its users. The importance of respecting your brand values 30 years after this refocusing, the coffee shop chain became the largest on the planet , with approximately 29,000 coffee shops in 70 countries. Despite this, the road was not without difficulties, as you can imagine, in fact, in 2007 the chain collapsed in the stock market tremendously. According to Howard, the drop was due to their two most important values being forgotten: Empathy with your employees. Empathy with your customers. To recover what he lost, Howard spent more than 30 years visiting 25 chain stores every week. I wanted to talk with the employees and understand closely the entire process of care, purchase and enjoyment of the product. Gambling Gmail List And that was the key to designing the customer experience that would be the basis for its recovery, growth and expansion. How to grow in the market without lowering prices Daniel was part of the team that launched the brand in Spain and Portugal on a digital level in 2010. And he told us that they encountered a strong barrier to overcome. When it landed in Spain, the brand sold coffee 3 times more expensive than the country’s average. However, instead of choosing the price variable and attacking it – something that was, in addition to being counterproductive, unfeasible – they aimed at a totally opposite strategy. Through customer experience and through a strategy that aimed to pay for the value received — and not for the cost — the brand became a coffee benchmark in Spain and Portugal just one year later. It wasn’t about selling coffee.
It was about selling the experience around the world of coffee – @ daniel_marote #PROmarketingDAY Click To Tweet But, to better understand the situation, let’s see better what this is about the variables price, value and differentiation. digital marketing costs Price and cost VS value and differentiation If 78% of brands disappeared tomorrow, it is likely that nobody would miss them. But if a brand as famous as the one Daniel was telling us disappeared, many people would cry. And I would cry because I would no longer have access to the brand experience it offers. Be different and relevant through the experience you offer your client – @daniel_marote #PROmarketingDAY Click To Tweet You can reach people and get their attention through what they perceive, what they live, and, above all, what you transmit . In other words, it’s not just about the price: it’s about offering different and relevant experiences. How to choose the best strategy for your brand If you look at the history of the coffee brand, the “fourth man” never thought about cost, nor was he limited by the price that already existed in the market. He focused on the value he brought through the user experience. And, most importantly, he knew how to find and communicate why he was different from his competitors.so that they buy from him. Then another does the same. The competition responds by lowering their prices, and so on … until no one wins and all the competitors are “with the water up to their necks.” On the other hand, the differentiation strategy is explained by a statistic that says that 87% of consumers say they are willing to pay more money for a better experience. And the interesting thing is to see that 92% of users are willing to pay more money – in fact, up to 40% more – for a product that generates a positive impact on society. This shows that the important thing is not