High Convenience products and services are “good enough”and so are selected based on cost and convenience.
“High Convenience” products and services are not supposed to be special. They are the things we need each day. The Customer gets little joy from the purchase … it is just something they need. Most of our routine purchases fall in this category.
We do not define ourselves by these purchases. Instead we seek the lowest total cost to ourselves. Note that this does not necessarily mean cheap. There are multiple sources of cost:
- Time – make it quicker
- Simpler – make it easier to do
- Cheaper – make it cost less
The basic strategy is to make sure the product is “good enough” to meet the needs of the buyer and then drive one or more of the costs down.
Mass market leaders like Walmart are masters of this. In fact this is a particularly good strategy for reaching large markets. The downside is that with a near commodity product and constant pressure to be faster, easier, cheaper, margins are low. In addition, there is little reason for a customer to remain loyal if you fail to remain in front of the High Convenience race.
Avoid the temptation to capture the High Convenience position in a market while also seeking a premium marketing position. The “Fidelity – Convenience Tradeoff” claims that “High Fidelity” products cannot be combined with a “High Convenience” strategy without the danger of slipping into an unexceptional “Mushy Middle”
Compete in large mass markets by offering an acceptable product with exceptional convenienc.
A Good Read
Multiple authors make this point. My favorite is “Trade Off – Why some things catch on, and other don’t” by Kevin Maney. Xxxx in “Treasure Hunt” sings the praises of low cost, bare bones, retailing as a viable and important market strategy.
- Is my product/service really … really … really Accessible? Simple? Cheap?
- Who finds this product/service good enough? Do they feel the convenience?
- What can be done to make the product / service more accessible / simpler / cheaper?
- Can we sustain this position? Will others eventually have a strategic advantage in scale or market power that makes their product more accessible / simpler / cheaper?
- Are proposed ideas for the service driving forward Convenience or being distracted by trying to add “Excess Value”?