How to Sell More Than a Product - BusinessWeek

How to Sell More Than a Product - BusinessWeek

How to Sell More Than a Product
In a coffee showdown with McDonald's, Starbucks' tried—and—true strategy has a lesson for entrepreneurs: Don't sell products. Sell an "experience"
By Carmine Gallo

Excerpts:

Sell an Experience
Don't sell products. Sell an "experience." One entrepreneur even added the word "experience" to his company's vision. When former Cold Stone Creamery CEO Doug Ducey set a goal to grow the then-fledgling brand from 74 stores to 1,000, he told franchise owners that the world would know the brand as "the ultimate ice cream experience." If you've been to a Cold Stone (KAHL), you may have seen the experience it provides—clerks who sing for tips. If the brand had simply stood for "great ice cream," its founders may have never been open to the shtick that sets Cold Stone apart from thousands of other ice cream shops across the U.S.

The greatest entrepreneurs don't sell products; they sell an experience like fun, happiness, or a comfortable, inviting place to enjoy a cappuccino. What experience does your product offer? If you're an insurance agent, do you sell annuities or "peace of mind"? If you're a financial planner, do you sell mutual funds or "financial freedom"? Think hard about what your brand really stands for—it's not always the product itself.

Odds are there are hundreds, if not thousands, of competitors offering the same type of "product" that your business provides. Stand out by standing for something.


Read full article: http://www.businessweek.com/smallbiz/content/may2009/sb20090519_058809.htm
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This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.