Value optimization is the buzzword that marketers jump on when it comes to meeting a customer’s needs. And rightly so because the customer is king. And without a king, there is no kingdom – figuratively speaking.
Why would anyone sell a product knowing that no one would want it? That’s crudely put, but it can be observed in many instances, especially in the FBA marketplace. Full disclosure, I made this mistake in the past before doing my MSc in Business, Tech, and Marketing.
I saw a product on Amazon that was selling well. I contacted my manufacturer and asked them if they can provide a similar product for my store. The results weren’t good. And this is the path many people more or less take by not following the three basic steps of marketing.
These steps apply not just in FBA in any sales environment.
Need analysis is just as it sounds. It is all about anticipating the customer’s preferences. But that it doesn’t just include the product features. It includes monetary and non-monetary analysis. Some questions to ask yourself is, why would a customer buy this product? Is the price right for the target customer base? What parts of the product, features, etc, justify the price point?
Here you want to think about the cost. The customer’s cost, that is, what does it cost the customer to obtain this product? What does it cost the customer to access this product, in other words? That includes time. Do they have to drive a long way to get the product? How long do they have to wait for the product? What about the price, is there value in the price, time, making the customer happy?
When all the above have been answered and thoroughly thought out, it’s time to move on to product design. What attributes from needs analysis should your product have to meet the customer’s preferences? What is currently on the market, and what is lacking from the product in the market? Look at the customer reviews, comments, and listen carefully to make your product better for the customer.
When the product has been designed, you want to preview the market to see how the product will perform. Check the attributes and their prospective impact on the customer’s perceptions – pre, during, and post-consumption of the product. Use that data to improve the product.
These three steps when analyzing and choosing a product to sell are essential. The insight that you gather from each step helps in creating value for the customer. And the value proposition perceived by the customer ultimately adds value to your bottom line.