Why is your company/product chosen?
Think about why customers choose your product/service: What are the benefits? What convinces customers?
MORGEN Impuls
Jede Woche eine Frage rund um die Themen Geschäftsmodell , Nachhaltigkeit , Pricing , Wert oder Kundenfokus.
Explanation
As part of my presentation at the UFIS Upper Franconia Innovation Summit, this week is all about ice cream parlors. I'm taking the standard example from many business administration lectures and discussing it this week in the impulse (Customer acquisition for ice cream parlors), in the lecture (Business model of ice cream parlors) and in the blog (How can ice cream parlors revise their price structure?).
Ice cream parlors, especially in good locations, are heavily dependent on walk-in customers. As an assumption, I assume that over 80% of most ice cream parlors in this location are visited by walk-in customers/tourists. Competition is fierce and demand is usually at peak times. So why do customers choose a particular ice cream parlor?
- Location (e.g. the ice cream parlor is right where I am)
- Demand (e.g. there are people waiting in line, but not too many)
- Range of services (e.g. what varieties are available)
- Presentation (e.g. how good does the ice cream look)
- Price (e.g. cheaper than the competition)
In most cases, price is unlikely to be a decisive factor for walk-in customers. Ice cream parlors do not usually compete on price and the differentiation is also minimal. It is therefore particularly important to ask this question and identify the specific factors that make customers choose a particular ice cream parlor. This is probably primarily about location and presentation of the offer. Based on this assumption, we can examine what influence quality has on visitors. Presumably, the better the location of the ice cream parlor, the less relevant the quality of the ice cream. This is in line with what most ice cream parlors in Germany offer. Instead of high-quality "gelato" with exquisite ingredients, we get ready-made raw ice cream mixed with fructose-glucose syrup and nature-identical flavors, packaged under the guise of "ice cream from our own production".
Follow-up questions
- What aspects of your company or product do you think attract customers?
- How do you differentiate your offering from the competition?
- How important is the location for your company and why?
- What role does the selection and presentation of your services play?
- How could you improve the quality of your services, even if they seem less relevant?
- If you had the opportunity to change one element of your business to attract more customers, what would it be?
- How could you better understand your customers and better meet their needs?
What place does your company have in the world of TOMORROW?
MORGEN helps managing directors with the right questions to transform their companies.
We ask the right questions
Our workshop card set includes a selection of around 50 cards with impulse questions on the topics of sustainability, digitalization, values and customer centricity, which you can use to work on new business models. You can find more impulse questions in our digitalization tool MORGEN People.