A nationally recognized fashion retailer failed to grow sales for five years because they could not anticipate customer expectations accurately.
Think what can happen to a market entrant if it makes similar mistake.
Let’s say you want to sell a weight loss product. Internet-savvy consumers have plenty of options to choose. Why would they buy from you?
To find the best answer to this, you’ve to change your selling mindset.
Consumers will buy from you if you sell them scope for transformation instead of selling a weight loss product.
I learn two business lessons from these companies. I am sure you will also love these success stories.
Tara-Nicholle Nelson Grew MyFitnessPal’s Users By 55 Million With A Remarkable Approach
For your knowledge,
Tara-Nicholle Nelson was the leading mind behind MyFitnessPal’s incredible business growth. Her excellent perspective redefined MyFitnessPal’s marketing and business positioning strategy.
So she writes this insightful Harvard Business Review article and shares a valuable lesson –
To be in a long-term and growing business relationships with customers, we have to accurately anticipate the obstacles that make the customers’ journey challenging and delay goal achievement.
The product should be able to help them overcome those barriers and fasten their progress.
So when Tara-Nicholle Nelson joined MyFitnessPal, she didn’t try to come up with an excellent marketing strategy. Neither she was obsessed with competition profiling.
Instead, she and her team conducted a study on 2,000 consumers.
The objective was to find out the obstacles consumers face during their weight loss journey.
Where consumers get stuck?
Why do they fail to overcome the barriers?
How to help them?
How the successful consumers overcome the weight loss obstacles?
So they designed an app that could ease consumers’ weight loss journey.
The Features in the App help users overcome day to day obstacles.
The bar code scanner in the app indicates the nutritional elements in a packaged food.
It includes social features for support and accountability.
Also, it provides cooking tutorials, recipes for home cooked meals.
MyFitnessPal features success stories through PR campaigns.
Results: Under Tara-Nicholle Nelson’s observation, MyFitnessPal’s user base grew from 45 million to 100 million. And user engagement increased by 25 percent.
Ponder less over creating a product that is better than the competitor’s. Instead, spend time building one that can help consumers reach their goal
Obesity is a lifestyle disease. We can’t lose weight with a weight loss product if we do not embrace a healthy lifestyle.
So MyFitnessPal gave consumers a leading reason to become part of their community. Lose wieght with change of lifestyle. The company sold scope for transformation. They did that by showing how to incorporate a healthy lifestyle and diet.
Consumers loved that and became their loyal fans.
Source: Harvard Business Review
Trader Joe’s Leaves Its Biggest Competitor Behind
Whole Foods Market is a dominant player in the organic grocery segment. But Trader Joe’s is thriving and leaving them behind with their exclusive business positioning strategy.
According to Business Insider, when Whole Foods sells $930 per sq. Ft, Trader Joe’s makes $1,734 per sq. Ft.
TJ (Trader Joe} serves high-quality products to the health and diet conscious shoppers. But their products are not expensive.
TJ’s food products are not available anywhere except the retail chain. Also, they sell them cheap.
Understand how the retail chain makes a difference?
Result: The retail chain plans for expansion. TJ reported opening 38 new stores in 2015.
Standout With a Strong Identity and Cut The Size of Competition Down. Cater to Specific Audience Segment
That way you can focus on a specific market size. You can design a value proposition to serve the exclusive group of consumers in the market and stay ahead in the competition.
These two business lessons are invaluable. Why worry too much about how the competitor is doing?
If you plan to launch a product in the health or personal care segment, it makes sense to focus more on a market culture, audiences’ habits and lifestyle instead.
That way you will be able to accurately address target audiences’ concerns and build a unique value propositioning.
What do you think?