To read the first part of this interview, click here.
The surest way to fail is trying to be all things to all people. You can’t stake out your brand with a mish-mash of promises and services.
According to Harry Beckwith, author of Selling the Invisible, and You, Inc, you can only be one thing—and there are eight positions of power an organization can choose from. In this follow-up interview, CZ President Dave Goetz asks Beckwith to differentiate the positions and how to pick one that can work for you:
Brand &Strategy: Are there a limited number of positions your organization can possibly have?
Harry Beckwith: I believe there are eight positions of power in any market—and you start by focusing on one:
- Pioneer/Leader vs. Innovator;
- Premium vs. Discount;
- Specialist vs. Generalist; and,
- Performer vs. Service.
What’s the difference between the Pioneer/Leader and the Innovator?
The industry leader is big and well established, whereas the innovator is small and less established. Industry leaders rely on an established image, like “good,” “solid,” or “consistent.” The innovator, on the other hand, can be riskier. Tired of the old way of doing things, they think and execute outside the box. Apple is an excellent example of this—coming in and going after IBM.
What about the difference between the Premium and Discount position?
It’s based on pricing. It’s the difference between Tiffany’s and Target. Regardless of how you’re positioning, you want to be aware of your pricing and what it communicates. But your pricing, in most cases, doesn’t drive your message.
The premium priced position is desirable in a lot of ways because it communicates your brand quickly. The consumer knows what they’re getting, and even if it’s a lot of money, there’s a sense of security in that.
Why is there security?
No one’s going to fire you for choosing the best. And if you’re the best, you’re the one chosen. Take McKinsey Consulting: They’re master of the universe and will come up with a hell of a solution for you—but it’s going to cost you a lot.
There are also arguments for choosing a low-priced brand: “I’ve only got so much money, but I can’t do it myself.” Or, “Yeah, they’re low priced, but they know more about it than we do. They can help us, and it won’t cost us a fortune.” Let’s face it, there’s always a market for the lowest priced web developer, if all you want is something that runs, and it doesn’t matter what the product looks like.
But generally speaking, the Discount provider is not among those stalwart positions.
Is there also a sense of security when you choose a Specialist over a Generalist?
Yes, because a jack-of-all-trades can’t be a master of one. You want somebody who is highly experienced and highly specialized. All other things being equal, the more they know about something, the more they work with it, the more proficient they probably will be.
If you have a detached retina, you don’t want a general M.D. You want a detached retina specialist! There’s a security that goes with that.
When it comes to choosing a Performance or Service position, what must organizations consider?
The Performer is not concerned about a touchy-feely experience but focused on high levels of performance.
On the other hand, the Service position is client-oriented. They may not offer brilliant solutions, but they provide valuable solutions along with a good experience. When organizations focus on service, clients experience a high degree of comfort.
Why then do people choose the Performer?
Because everybody wants the best. Sometimes all we really want is a positively good outcome.
What if the outcome is great but the experience is terrible?
Some people find that the outcome really wasn’t worth it. I think people consistently underestimate how much we value the experience—and how little we value the performance. Often it’s difficult for us even to tell if it was a great performance.
For example, you hire a contractor to redo your slate in your bathroom. You get six different people in to do it. Now, there could be some real differences, but really I don’t know who does the better job. However, I sure know who I felt better working with. If so-and-so screws up, I like working with him because I can tell him, and he’ll fix it—and fix it properly.
We tend to put on our rational hats that values cost-benefit and performance outcomes. In the process, we lose sight of the fact that we’re human beings who like to be respected, like to feel good, and like working with people we can trust.