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”
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.
- 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?