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Marjolein Vugts
Managing director uniting strategy, creativity and culture. Moves brands forward, keeps them on course and helps them grow sustainably.
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In a world full of choices, standing out is already a (not to be underestimated) challenge. But that challenge becomes even greater when you're dealing with a complex product in a saturated market, such as energy or insurance. Take a new energy brand, for example. A report by the ACM reveals that 40% of consumers switch energy providers based on price, while only a small percentage truly understands the technical details or terms. And even if consumers show interest, they often don’t feel like digging deep to fully figure it out. So, how do you make yourself appealing in such a market?
Reducing the complexity by showing understanding
Obtaining a unique position in a highly competitive market requires more than just price and product. After all, everyone claims to be the best choice, so even if you genuinely are, as a newcomer, that alone won’t be enough to win over customers. If you try to explain why you’re the best choice, you’ll likely need to dive into the details, and discuss kWh rates or policy terms. This risks overwhelming your customers with so much information that they become confused and are less likely to view your product as an attractive option.
It's a way better strategy to address this abundance of choice with clear and distinctive communication. By demonstrating that you understand the complexity behind your product and empathise with the challenges your customers are facing, you can quickly build trust. This approach helps you make an essential shift: instead of selling a complex product, you sell manageable and tangible benefits.
Simple, appealing and trustworthy
Research from the Harvard Business Review shows that companies that convey simplicity and trust are 70% more likely to win customer preference. But how do you achieve that? In short (shorter!): simple, appealing, and trustworthy. As a newcomer to the market, a clear message is just the foundation. You also need visibility and credibility. That starts with a strong brand identity and spot-on positioning.
This is how you stand out in the crowd:
1. Focus on one or a few key benefits:
Companies with a clear proposition see an average revenue growth of 15% more than their competitors. Additionally, customer loyalty is higher because customers know exactly why they choose you.
2. Communicate consistently, both visually and in qua tone of voice:
Research shows that consistency in branding can increase revenue by 23%, partly because it helps to build trust.
3. transparency is key:
Ensure your message is clear and provide enough details to prevent your customers from being left with unanswered questions. Avoid using ‘small print’ wherever possible, as this can undermine trust.
4. Know your customer:
Before presenting your product or message, it’s crucial to truly understand your customer. Use tools like a persona canvas to identify your audience’s ‘pains’ and ‘gains.’ For example, concerns about ‘hidden costs’ or a preference to ‘be guided through the process.’ By tailoring your communication specifically to this persona, you make your message more relevant and impactful.
Be the obvious choice
In short, you need to earn trust through the perfect combination of clarity, visibility, consistency, and empathy. Sounds like the perfect partner, doesn’t it? That’s exactly what your customer will think too. No matter how complex your product is, if you combine these elements effectively, your brand won’t be 'just an option'. It will be the most logical choice!
Looking to find the perfect positioning for your product together? Then get in touch with our strategic expert Chantal via chantal@gi.nl.
Marjolein Vugts
Managing Director