Sort By Price
I drove into a fuel station last week. Not to feed my car, but to quench my thirst.
It was one of those wet and grumpy days and a coffee felt like a good antidote. As I walked toward a well-known coffee shops next to the station, I glanced at the prices on the forecourt. I shook my head in disbelief as I gazed at the price of fuel. At the time of writing, the price was £1.65 per litre.
Upon entering the coffee shop, a sense of calmness washed over me. That warmth gave instant reassurance, underpinned by a soothing rendition of a song that was suitably atmospheric yet strangely familiar. I could have been in downtown New York. I approached the counter to see the welcoming smiles of the staff, who were accompanied by an irresistible buffet of eats and treats laid out for my delectation. As the rain continued, I felt a sense of homeliness. Thoughts of those crazy fuel prices began to ebb away. And to think, if I were to do a direct comparison with the cost of fuel - like for like - my coffee only cost me £5.27. Oh, hang on. That can't be right. My maths must be wrong. Seriously, who would pay that much for a coffee?. Let me re-run the numbers...
How is it that I am concerned about paying £1.65 for fuel when I am conversely happy to pay (and go to the extent of justifying the equivalent of £5.27) for a coffee? In the UK, we purchase about 120 million litres of fuel a day. Nationally, we consume on average 80 million cup's of coffee... every day. And if we decide it's "don't pick on coffee day", we could apply the same rules elsewhere. A branded bottle of sparkling water is slightly more expensive than fuel. Yes, water can cost more than oil.
Odd really, given that a cup of coffee is just a cup of coffee, right? Water is just water, isn't it? Likewise, a phone is just a phone, isn't it? A pair of trainers is just a pair of trainers?
For those who may view the marketing department as the team responsible for the brochure, the brand guidelines, the almost obsessive focus on fonts and the logo'd stress balls for the giveaways, please read on. This is a shout out to all those marketeers who successfully manage to weave a narrative and an experience that transcends the product itself. The ones who create the story that catapults their organisation ahead of others, without necessarily talking about the product itself. For these geniuses, a cup of coffee is certainly not just a cup of coffee. For these professionals, packaging the price is a big part of the day job. This should also serve as a warning that whilst a race to the lowest price might be tempting, it could create a short-term boost that your brand could pay dearly for in the long term.
What I have just described in terms of my coffee experience is fascinating, as it made little / no, reference to the quality of the coffee itself. I am no aficionado when it comes to coffee but when it comes to the story, the product itself is only one part of it. As an essential ingredient in the marketeers play book, they need to recruit me to their sales team. Not only do they want my loyalty (an increasingly difficult challenge in the modern world) they know I am far more powerful than any advert. My experience is of paramount importance, from the brand recall rate the first impression, to the service, the ambience, the feel. As a customer acquisition tool, this is gold dust. Getting any aspect of that wrong, or missing any attention to detail, could cause an expensive chink in the marketeer’s armour.
The converse is a desire to avoid commoditising your business. Those three little words - "sort by price" - have a lot to answer for. With this option now common place online, the risk is that it drives behaviours. Ironically, although it is deemed to be helpful, you are encouraged to look at - and focus purely on - price, which makes the marketing goal of positive differentiation that much harder. I can’t help thinking that the hospitality industry has fallen victim of this approach. Choose your destination. Sort by price. Book. They are all just hotel rooms, aren't they?
As is my want, when I look at this through the lens of the care sector, the same rules apply. What makes ABC care down the road more appealing than you? Bear in mind too that, like life, it takes two to make it work. In this case, customers and colleagues. Getting just one of those elements right simply isn't enough. Additionally, for all the work of the marketeers, it will all be in vain if that first email, or phone call, isn't answered.Whether you are looking for a service, or a job.
So, just how important is this?
Take a moment to work out the average length of stay of your residents or your homecare customers. Then work out what that means financially. In effect, how much will that person be spending with you. Then imagine you have that money and want to spend it with one organisation. Put yourself in the mindset that this search does not carry an aspirational motive. This is a needs driven purchase, where enquirer ambiguity and emotion often prevail. Finally, ask yourself what you would expect from that organisation. And not just from that initial enquiry, but during the entire experience, to when someone has moved into their new home. Compassion, a desire to take the worry away – to serve and not sell - will always win over a standard form filling system.
Company wise, ask yourself if your systems and processes are in check to enable you to offer that exceptional service from the start and throughout, making sure that the messaging and story reflect the experience to create the desired atmosphere that encourages that first inquiry.
Interestingly, our sector's main comparison site does not have a “sort by price” option. And I think that can only be a good thing.
Create the environment that mirrors your price. Be proud of the service you offer by delivering the best, every day. And do what you can not to take the "P" out of your marketing mix.