Matching Features to Benefits

Worksheet:

The Offering

Use this worksheet to design an offering that will appeal to customers. We do this by making sure that the offering contains features that deliver the benefits that customers seek. (Benefits consist fo the problems they want solved and the experiences they desire.).[1] Thus, the starting point for design of an offering is to list the benefits sought. The next step is to make sure that the offering contains features that deliver these benefits to customers.

MATCHING FEATURES TO BENEFITS

Instructions

This chart will have you identify a feature to include in your offering for each of the benefits your target customers desire. The benefits your customers desire should have been identified in the Customer Profile Worksheet. You will need to take the following steps.

1. In the first row of the first column, describe your customer’s problem.
2. In the remaining rows of the first column, describe your customer’s desired experiences.
3. In the second column, describe the features you intend to include in your offering that will provide your target customers with the benefits that they desire that you have described in the first column
4. The first row of the second column will contain a description of the package of products and services that you will provide to solve your target customers’ problem. This often contains the “basic” features of your offering.
5. The remaining rows of the second column will contain a description of the additional features that you will include in your offering. Since most every competitive offering will solve the customer’s problem (contains “basic” features), the additional features you list here are generally the reasons your target customers prefers your offering to the offerings of the competition.
6. In the third column, if possible, indicate how intensely your target customer will value the feature.

REMAINING FEATURES OF THE OFFERING

In the chart below, add any features that need to be included in the offering that you have not listed above.

1. Make customers aware of the offering
2. Motivate customers to seek out the business and its offering
3. Motivate customers to buy the offering
4. Close and process a sale
5. Motivate customers to return and buy again.

EVALUATION OF THE PRICE TO BE CHARGED FOR AN AVERAGE OFFERING

1. Using the information indicated above, summarize an average offering.[3]

1. Use the table below to estimate the value your target customer will place on your offering.

1. Does the price you intend to charge compare favorably to the price customers would be wiling to pay?
   

1. Does the price you intend to charge compare favorably to the price of competitive offerings, including available substitutes?

COMPETITIVE ASSESSMENT

1. Will target customers perceive that your offering provides more value than competitive offerings, (this includes similar and substitute offerings)?

for the same money….I get a car I can trust and feel good driving….a friend.

1. Will target customers be willing to pay your price for your offering in order to obtain that value?

1. Do you believe you will be able to create your offering at a cost that allows you to enjoy profit margins similar to those of the competition? (Will your business be able to include the features it needs in order to provide the benefits customers desire at little or no additional cost? Or, will your business be able to pass on the cost of these features through premiums in price?)
   bays need to be chosen to cover basic “cash cow” service….ones people wan t consistently and a car needs most.

Manage labor so that customers are spending the time so we can spread the talent of an expert to reduce costs.

Buy parts at a par…..really need to cut a deal with Murrays….perhaps offer introductory visits to their custo9mers as a perk if they will let us buy at a reduced rate.

Will have supplies in form of manual and recipes that will represent the largest cost (don’t have inventory to speak of)

1. Can competitors easily create similar offerings in order to retain their customers?

No….dealerships and chains have too much corporate overhead…..the community factor is what sets us apart.

Frequently Asked Questions

1. What are common terms of delivery?

In many cases, the customer will take possession at the point of sale. This is the case with most retail store and service sales. But, in many cases, your business may need to provide services that allow your target customers to take possession and make effective use of your offering. For example, a furniture store may need to offer to deliver its sales of goods to its customer’s residence.

In examining delivery issues, you will want to consider the following about a location from which you will do business with your customers. (Most of these items apply to Internet as well as brick and mortar businesses.)

• Cost and/or lease terms
• Traffic count / demographics (in terms of target customers)
• Visibility
• Ease of access
• Image
• Interference from competitors, (neighboring businesses)
• Availability labor
• Suitability of space and parking (brick and mortar business)

In many cases, an effective strategy for delivery cannot be found without partnering with an established distribution network. For example, rather than market an offering directly to the consumer, you may need to sell to an established retail outlet. In that case, your customer becomes the retail outlet that in turn sells to your consumer. If this is the case, it will be necessary to prepare a customer profile for both your end consumer as well as your customer. Understanding the wants and needs of both is essential.
Where access to these retail outlets is difficult to achieve, then the Internet accompanied by a mail service might be an alternative. Of course, customers must be driven to your web site as well.

1. What are common terms of payment?
   Customers have come to expect to be able to pay for goods and services by cash, check or credit card. Unfortunately, checks often bounce and credit cards charge merchant substantial fees. In many cases, especially where the price of the item is high, customers will expect to be able to pay for the item over time. In the case of time payments, there is always the risk that the buyer will default and fail to make payments.
   
2. What are common terms of service?
   A customer may need help in understanding how to effectively make use of your offering. This is particularly true if the offering is complex. This need is often met through direct customer training by a qualified agent[4]. Or, the use of the product may be explained by using new technologies and media.[5] In many cases, directions are explained on the packaging[6]. The “terms of service” are often considered part of what is commonly referred to as “customer service”. It includes help with installation, troubleshooting customer problems, warrantees and guarantees among other items.
   
3. What is a strong customer relationship and what should be done to build one?

A business wants to ensure that the customer relationship is nurtured. Every sale that your business makes should be regarded as an opportunity to further your understanding of your customer.. In fact, every contact your business makes with a customer or potential customer is an opportunity to engage in market research. Successful companies realize this and plan for customer feed-back. Many companies make use of e-mails and on-line surveys. Other companies send a post card or other mailing. Still other companies use the monthly billing as a means of soliciting feedback. Your offering should take advantage of any opportunity that may be present to nurture the customer relationship.

1. What types of customer benefits can be met through promotions and sales efforts?
   Promotion and sales efforts are designed to accomplish several things.
2. Make customers aware of the offering
3. Motivate customers to seek out the business and its offering
4. Motivate customers to buy the offering
5. Close and process a sale
6. Motivate customers to return and buy again.

Customers have preferences concerning each stage of this process that vary depending on the type of customer. Since promotions and sales are part of the experience delivered with the offering, it is important that these efforts add features to the offering that deliver the benefits desired by customers as well.

1. How do I know how customers will value my offering?
   How customers value your offering will depend on several things.
   
2. Number of features
3. The pain of going without
4. The ability to pay.
5. Availability of substitute offerings
   

You should have discovered this information when you conducted your primary research in order to understand your customer and complete the Customer Profile Worksheet

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Copyright Business Concept Evaluations, LLC, copyright 2006