changingminds.org

How we change what others think, feel, believe and do

| Menu | Quick | Books | Share | Search | Settings |

Customer Sacrifice

 

DisciplinesMarketing > Understanding Customers > Customer Sacrifice

Description | Example | Discussion | See also

 

Description

Customer sacrifice is the gap between what you deliver and what your customers really want.

A gap of zero means you fully deliver everything they need, with the result that they are completely satisfied.

An infinite gap means you deliver nothing that customers want, and the chance of anyone becoming your customer is very small.

Customer sacrifice gaps may be deliberate or not. Either way, a sacrifice gap is an opportunity for competitors to better satisfy your customers and hence lure them away from you.

Example

A company selling lawn mowers offers no seat adjustment for customers of different height. They do not realize the problems this cause some customers. A competitor offers seat adjustment and hence gains market share.

A microphone is comfortable for most men, but rather large and heavy for some women. The manufacturer realizes this and introduce a lighter, smaller model, hence reducing the sacrifice that women have to make to use the heavier microphone.

A service company makes customers go through a long series of phone button pressing before they reach a customer representative. This saves money but annoys customers. Another company studies this and finds the economic point where the lower sacrifice of one button-press is accepted. They hence gain share by advertising this.

Discussion

Most products and services take time and money to design. To perfectly match all customer needs would require a different offering for each customer. The challenge for product and service designers is hence to identify the range of offerings that will lead to the minimum total customer sacrifice across all customers.

Designs are often strongly influenced by reducing cost of manufacture or operation. While this is certainly important, the loss in sales that this can lead to may well be underestimated. Intelligent design takes account of both cost and revenue impacts.

To reduce sacrifice, you may be able to simply adjust current products and service. Sometimes also a completely new innovation is a better approach.

In early markets, there are often few products and high customer sacrifice gaps. As markets grow, economic segments emerge where profits may be made. To gain customers here, new products are designed to reduce the sacrifice in these segments.

Smart companies are constantly reviewing customer sacrifice and looking for the best competitive point at which to introduce sacrifice-reducing products.

See also

Inbound Marketing

 

Site Menu

| Home | Top | Quick Links | Settings |

Main sections: | Disciplines | Techniques | Principles | Explanations | Theories |

Other sections: | Blog! | Quotes | Guest articles | Analysis | Books | Help |

More pages: | Contact | Caveat | About | Students | Webmasters | Awards | Guestbook | Feedback | Sitemap | Changes |

Settings: | Computer layout | Mobile layout | Small font | Medium font | Large font | Translate |

 

 

Please help and share:

 

Quick links

Disciplines

* Argument
* Brand management
* Change Management
* Coaching
* Communication
* Counseling
* Game Design
* Human Resources
* Job-finding
* Leadership
* Marketing
* Politics
* Propaganda
* Rhetoric
* Negotiation
* Psychoanalysis
* Sales
* Sociology
* Storytelling
* Teaching
* Warfare
* Workplace design

Techniques

* Assertiveness
* Body language
* Change techniques
* Closing techniques
* Conversation
* Confidence tricks
* Conversion
* Creative techniques
* General techniques
* Happiness
* Hypnotism
* Interrogation
* Language
* Listening
* Negotiation tactics
* Objection handling
* Propaganda
* Problem-solving
* Public speaking
* Questioning
* Using repetition
* Resisting persuasion
* Self-development
* Sequential requests
* Storytelling
* Stress Management
* Tipping
* Using humor
* Willpower

Principles

+ Principles

Explanations

* Behaviors
* Beliefs
* Brain stuff
* Conditioning
* Coping Mechanisms
* Critical Theory
* Culture
* Decisions
* Emotions
* Evolution
* Gender
* Games
* Groups
* Habit
* Identity
* Learning
* Meaning
* Memory
* Motivation
* Models
* Needs
* Personality
* Power
* Preferences
* Research
* Relationships
* SIFT Model
* Social Research
* Stress
* Trust
* Values

Theories

* Alphabetic list
* Theory types

And

About
Guest Articles
Blog!
Books
Changes
Contact
Guestbook
Quotes
Students
Webmasters

 

| Home | Top | Menu | Quick Links |

© Changing Works 2002-2016
Massive Content — Maximum Speed