Premium Quality Marketplace

In this market special products and services command premium prices and passionate loyalty.

“High Fidelity” products and services are special. They offer exceptional value and personal identity to a customer. In many ways they are the choices we make that define who we are to others.   Front row game tickets, an elaborate sound system, an exotic vacation, a particularly specialized and well made tool … all represent purchase choices that have significant meaning for a customer.  

People feel passionately about their High Fidelity choices.  They can be extremely loyal and dedicated.  This is because High Fidelity experiences tap a rich palette of emotional and intellectual reactions that go well beyond the basic functionality of the purchase.  

  • Best in class quality / effectiveness
  • Superior reliability
  • Excellent design / Experience of use
  • Rarity and prestige
  • Emotional involvement

High Fidelity products justify paying more and dealing with substantial inconvenience (waiting on line for expensive tickets to a favorite concert).  In fact, these factors often increase the prestige and identify a person gains.   

“High Fidelity” experiences are highly personal, influenced both by who the customer is and what they are doing.   As a result, there can be many different High Fidelity offerings appealing to different niche markets.   This makes it a good strategy for carving out unique parts of the market and establishing a dominant position based on unusual value. 

In contrast “High Convenience”, is often a mass market position.   The “Fidelity – Convenience Tradeoff” claims that while High Fidelity is an excellent strategy, it cannot be combined with “High Convenience” without the danger of slipping into an unexceptional  “Mushy Middle”

Takeaway

Create a profitable niche with passionate loyal customers by offering a deeply meaningful and high quality experience.

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 “Shopportunity” makes the case for premium experiences as a remedy for the mire that many retailers find themselves.    

Brainstorming Questions

  • Is my product/service really … really … really great?  Why?
  • Who loves what we do?  Who feels passion?
  • What can be done to deepen and intensify an exceptional experience?
  • Is there a group who could be even better served?  Can I create a new market niche where I can own the “high fidelity” position?
  • Who  holds the High Fidelity position in this market?  What new technologies could make them seem average?

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