8 steps to creating demand for your business
Creating demand is a key step towards creating a monopoly. How do businesses create demand, following business 8 steps may suggest just few of the ways.
1. Create artificial scarcity or create an environment where people may have a fear of missing out on the offer or the price or some aspect of the offering that they may be worse off if they do not act in time. Apple benefitted very well with the hype when the news channels showing long queues in conjunction with Apple suggesting limited stock availability.
2. Get users to create their own content and contribute: Consumer become the part of the business and have skin in the game. Many businesses get customers or their kids to color a picture and post it on their wall. Kids love it, they want to take their whole family to shop where their paining is placed on the wall. As a collateral they get repeat business and get to know the whole family. Family restaurants are quite famous for that. In lot of physical stores as well as online stores the members who sign up get a discount, free delivery or the like. The reciprocal advantage is that once a user signs up the loyalty data, feedbacks and any posted pictures on social media, act as endorsements and help in attracting other customers.
3. Exclusivity I am sure you have come across scenario where designers produce only limited number of designs or pieces of handbags, clothes or shoes and are exclusive[1] to a territory. There is a race among the customers to get in first to get their hands on their preferred item. LV is so famous for creating exclusivity that it destroys the product ranges that customers have not bought at the premium cost it has offered, instead of discounting them. Early release or new season products follows the same pattern. In addition, they exploit the higher willingness to pay early on to appropriate greater returns.
4. Impact on life: - Better or cheaper or faster. Amazon stores now allow you to walk in and walk out of its new stores. Reducing the friction allows customers to easily walk through. Plus, any combination of better, cheaper and faster allows differentiation. If you want it easy, think lazy.
5. Brand association - Using Rockstar as role model users creates a natural attraction form many to be like their idols.
6. Newness paradigm - Some customers want to stay ahead of the game, they are early adopters, risk takers. Seth Godin calls them sneezers[2]. This is also discussed in book Crossing the Chasm[3] . People try and keep up with various versions of iPhone just to look cool and with the market. For many not upgrading will mean not changing with the times.
7. Emotive appeal - “Oh what a feeling, Toyota!” it is no longer about the product but what it brings. Nike is tapping into the emotion of “greatness”. Once the user’s mind is associated with the key word that the business is using any occurrence of that word reminds them of the brand or product. If I say, don’t think about the pink elephant. I wonder what you were thinking about. Well you may want to have a look at Purple cow by Seth Godin[4] too.
8. Creating commitment: Remember the competitions where one describes in X words or less and you get a reward. Well you do get a reward in exchange of convincing yourself why should you buy/use/travel/expresses interest in something offered. It is going to stay with you for the rest of your life as you have just managed to convince yourself[5]. As a business, this requires initial cost outlay but is a good brand building strategy.
References:
1 Exclusivity is another secret to the success of the brand. Louis Vuitton has always tried to counter mass production with short term limited edition series. This means that not everyone will own the same bags and means that those who do get their hands on a limited-edition bag, get fantastic exclusivity. When products come out in small numbers, a buzz is created instantly, and people crave the latest style of bag. Because of this scarcity, waiting lists become longer and longer and the products even more desirable.
Source: Catawiki.com
2 Unleashing the ideavirus, Seth Godin, 2000, Seth Godin
3 Crossing the Chasm, Geoffrey A. Moore, 2009, Harper Collins
4 Purple Cow, Seth Godin,2005
5 Influence, Robert B. Cialdini, 1988
Disclaimer: Above is for informational purposes only. Author is not responsible for any loss or damage, incidental or consequential by using above information. Please discuss with your advisor based on your specific situation or circumstance.