Mario is the owner of a coffee shop.
They offer excellent product quality, friendly and professional staff, nice atmosphere.
One day his wife convinced him to undertake a new marketing initiative: they joined a project of payment by mobile phone, proposed by a supplier.
It’s a sort of mobile version of the old expensive subscription “every 10 cappuccinos, 1 free”.
Mario, her lady, and the staff set up everything and begin to promote the initiative with enthusiasm.
And the customers accumulate points, points, points, and therefore discounts, discounts, discounts…
The other day, I happen to ask him:
“But how come you don’t have the mobile payment anymore?”
and they explain to me that the supplier would have had to reimburse part of the amounts, but that would not have been the case in the end. So, Mario stopped it all and even paid himself for the discount of his customers.
And he didn’t just lose money…
…what’s worse is that they killed his desire to do marketing.
It seems that Mario said, “That’s enough, never again.”
So, the other day, one supplier came up with an idea that somehow was similar to the previous one, and he was told NO because the other supplier had isolated them.
Moral:
in order to differentiate yourself from the competition, it’s not enough to make customers understand that you do the same thing differently. Especially if you’re in a market that others have screwed up, you’re not advantaged even if you show that you’re serious.
Because customers still homologate you to other vendors, and you’re done for.
Then you have to create “another category” in their head.
How?
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