There are a lot of reasons why this may be the case - a poor product, high competition, mixed messaging, no market, the crap economy - all the excuses we tell ourselves when something doesn't go as planned.
One of the biggest reasons stuff that is new, improved and offers 'more value' rarely takes off is that there is no scale. What is it better than? Is it better than something I even care about? If it's improved, what does that even mean? Does the improvement relate to me and how I use your product?
Roger Dooley wrote a great article in Neuromarketing about the need for consumers to be able to compare and relate. This is less about choice (which is often debated as a consumer purchase trigger) and more about scale. If I know that x service gives most of what I need and costs me y, and x2 service gives me all of what I
Roger uses the case study of the The Economist, which was trying to sell combined print and online subscriptions. Here are the results:
$59 - Internet Only Subscription (68 chose)
$125 - Internet and Print Subscription (32 chose)
Predicted Revenue - $8,012
$59 - Internet Only Subscription (16 chose)
$125 - Print Only Subscription (0 chose)
$125 - Internet and Print Subscription (84 chose)
Predicted Revenue - $11,444Crazy. No logical difference between offers. The only difference - Offer B gives me more information to judge my decision. Not just that, Offer B actually persuades me to spend more on what I want rather than what I need. Classic decoy marketing. Often misused and overlooked in advertising and product launch marketing.
- We focus too much on the story we want to tell and to little on the story the consumer wants to be told.
- Consumers aren't logical, so don't market as if they are.
- The success of a new product has far less to do with the new benefit, and for more to do with how that benefit relates to your consumers view of your existing benefits.
- Usually the last thing on a marketer or product/service managers mind - sometimes targeting the low hanging fruit is just better. This is about raising the floor instead of just focusing on raising the ceiling.