Where Reverse Engineering Fails…
Just like a good cup of coffee, feeling like you are beating the competition in your business’s market is a feeling you want to savor. But what are you competing against?
The typical response is binary. Apple competes against Microsoft. General Motors competes against Toyota. Netflix competes against Hulu.
However, when customers are using your product or service to solve a pain point they are doing so to satisfy a complex set of emotions, moods and attitudes.
There are times when a customer may decide to purchase from you because they want to meet a goal. The steps towards reaching this goal have sub-steps that have to be achieved before reaching the purchase point.
The 3D Sphere Model of Competition
Just the belief that things can get better is a foundation for moving forward. If consumers don’t believe that anything can improve it will be a lot harder of a sell. How does what you sell help your clients make progress in their lives?
The way someone makes progress towards completing a goal is a path that offers many moments for you to solve their pain points. If you have an Ecommerce store selling coffee it would make sense to sell coffee mugs as well right?
Amazon’s suggestions of similar products customer bought after buying what you’re purchasing is responsible for millions of dollars in sales.
But the only way you will be able to even get to this point is if you understand what is competing with your products. Think beyond a linear timeline. Make it more like a 3 dimensional sphere that intersects with other spheres.
If You Were Selling Coffee…
If your product was coffee, the competition you may think is other coffee brands, and tea. However, just like last Tuesday’s blog mentions another source of competition is not buying anything at all.
Netflix CEO Reed Hastings, talking about the competition Netflix faces said:
“Really we compete with video games. We compete with drinking a bottle of wine. That’s a particularly tough one! We compete with other video networks. Playing board games.”
Thinking outside the box of typical market research on the competition, you’ll want to ask, “What do people do instead of drinking coffee?”
Crazy as it seems there are folks who use cold showers to wake up in the morning, or buy really bright lights to turn on in the morning. Workers who work the night shift have their own unique sets of alternatives to coffee which can only last so long before a tolerance is built up.
Energy drinks, Yerba matte, lemon juice and even just water are other sources of competition to coffee. Cigarettes are a replacement for coffee to stimulate the user into being more awake as well as physical exercise.
Using the sphere model of where competition exists for your product, we can see it’s more than tea but also yoga mats and stationary bicycles. What circumstances are people in when they seek coffee?
Students, office workers, teachers, entrepreneurs and many more use coffee to start their day. It’s a popular drink. What aren’t people saying about coffee?
Power of Micro Targeting
Answering these type of questions helps you niche down to a specific market you can micro target and develop a tribe of enthusiastic buyers that will take your company to the next level.
Going with our example of coffee as a sample product you would be selling, we can definitely sub niche down to different categories like:
Social coffee drinkers — they only drink coffee in a coffee shop with friends
Daily coffee drinkers — there are subcategories here as well, the instant coffee drinkers, the pre-ground coffee drinkers, and the whole bean grinders that consider themselves coffee aficionados.
Intermittent coffee drinkers — switching between chai teas, coffee and green teas this group is constantly experimenting with a variety of caffeinated beverages.
How you speak to each member of these groups (which can be subdivided further) will be different.
The marketing messages for an instant coffee drinkers won’t be the same as a coffee aficionado who might only use an Aeropress and burr grinder (this is me — I love making some of the best coffee ever created).
The experiences that each group has inside of specific circumstances will decide how you present your product. Finding out that exercise is a competitor for drinking coffee may make you want to pivot into finding ways to combine both.
Reverse Engineering Vs Story Model
There are certain brands who will never have direct competition because of the immersive experience buying their product creates for customers. Trying to reverse engineer an existing business’s model can only go so far.
Creating your own story that is filled with rich details solving multiple pain points in the customer’s journey is how you stand out from the competition. The truth is most companies don’t go to this level of detail.
Crafting unique rituals specific to your consumer’s demographics, and circumstances surrounding their decision to buy is going to put you leagues ahead in your progress towards becoming the best version of what your business is capable of.
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