My Amazon Guy

Good Better Best Product Strategy Explained #52

June 17, 2020 Steven Pope Season 1 Episode 52
My Amazon Guy
Good Better Best Product Strategy Explained #52
Chapters
My Amazon Guy
Good Better Best Product Strategy Explained #52
Jun 17, 2020 Season 1 Episode 52
Steven Pope

The Good Better Best product strategy helps improve conversion rates, traffic, margins, and more. It's a core ecommerce strategy - Steven Pope.

How Marcus Lemonis Saved a Dying Business From Its Feuding FoundersHere's how the host of CNBC's The Profit, got failing drums company SJC back in the black
" Diversify the product line.
Instead of making custom drums that only a certain group of consumers could afford, Lemonis implemented a good-better-best product line with three price points: $895, $1,700 and $6,000. "We know the product you make today is awesome, but we're leaving a segment of the market to fend for themselves," Lemonis said during the episode."
https://www.inc.com/graham-winfrey/how-marcus-lemonis-saved-a-dying-business-from-its-feuding-founders.html

"Capitalizing on G-B-B

G-B-B’s benefits come from three approaches: offensive plays aimed at generating new growth and revenue, defensive plays meant to counter or forestall moves by competitors, and behavioral plays that draw on principles of consumer psychology, whatever the competitive landscape.

Going on the offensive.

Offensive plays can help brands grow revenue in at least four ways. First, companies can dramatically lift margins by creating a high-end Best version that persuades existing customers to spend more or attracts a new cohort of high spenders. In my work with companies, managers consistently underestimate customers’ willingness to spend and the number of customers who might upgrade to Best, even at prices that were previously unthinkable. Across a range of industries, it’s not unusual to observe up to 40% of sales landing on the Best option."
https://hbr.org/2018/09/the-good-better-best-approach-to-pricing#:~:text=A%20multitiered%20offering%20can%20use,by%20customers%20who%20want%20more.

Show Notes

The Good Better Best product strategy helps improve conversion rates, traffic, margins, and more. It's a core ecommerce strategy - Steven Pope.

How Marcus Lemonis Saved a Dying Business From Its Feuding FoundersHere's how the host of CNBC's The Profit, got failing drums company SJC back in the black
" Diversify the product line.
Instead of making custom drums that only a certain group of consumers could afford, Lemonis implemented a good-better-best product line with three price points: $895, $1,700 and $6,000. "We know the product you make today is awesome, but we're leaving a segment of the market to fend for themselves," Lemonis said during the episode."
https://www.inc.com/graham-winfrey/how-marcus-lemonis-saved-a-dying-business-from-its-feuding-founders.html

"Capitalizing on G-B-B

G-B-B’s benefits come from three approaches: offensive plays aimed at generating new growth and revenue, defensive plays meant to counter or forestall moves by competitors, and behavioral plays that draw on principles of consumer psychology, whatever the competitive landscape.

Going on the offensive.

Offensive plays can help brands grow revenue in at least four ways. First, companies can dramatically lift margins by creating a high-end Best version that persuades existing customers to spend more or attracts a new cohort of high spenders. In my work with companies, managers consistently underestimate customers’ willingness to spend and the number of customers who might upgrade to Best, even at prices that were previously unthinkable. Across a range of industries, it’s not unusual to observe up to 40% of sales landing on the Best option."
https://hbr.org/2018/09/the-good-better-best-approach-to-pricing#:~:text=A%20multitiered%20offering%20can%20use,by%20customers%20who%20want%20more.