Most consumers view most technology as commodities.
An HDTV is an HDTV, and most people will try to buy the cheapest one possible. A Windows laptop is a Windows laptop. Who cares about megahertz, or these days, even megabytes anymore?
This point-and-shoot digital camera is just like that camera. They’re both 12 megapixels and have 3-x optical zoom. This one costs $150 and that one is just $120. Guess which one people will buy?
When your devices are perceived as commodities — as most of your products are — it’s almost impossible to attain any sort of competitive advantage besides price. Features don’t matter because people perceive them to be the same as others’. It’s all made in China anyway. It all comes from the same factories.
When you’re a commodity, people aren’t listening to you. They’ve tuned you out. They think they get it — they understand your product and what it does and they know what it costs. And that’s all that matters. In these cases (which, I repeat is most cases) your brand doesn’t matter, your marketing doesn’t matter, and your messaging doesn’t matter. The only thing that matters is your retail availability. But once you’ve joined the commodity masses, there’s little you can do to influence a purchasing decision besides lower your price.
Sorry, but that’s how it is.
Guess which companies aren’t perceived as a commodities?
Apple.
RIM too.
Google.
TiVo used to fly outside of the commodity label, but cable company’s DVRs have pulled it back in. Which means it’s possible to break out of the the commodity
Not a commodity: The Flip digital camcorder. Commodity: Nearly every other camcorder.
Not a commodity: The iPod. Commodity: All other MP3 players.
So what’s the secret?
Consumer evangelists.
Passionate consumers who love your company and your products. They tell everyone they know about you. They’re also hearing about you from their friends and family. And they’re seeing your devices. At the airport. On the plane. At their friend’s home. At the restaurant. If you make a mistake, it’s an accident, an oversight, never intentional.
Evangelists are extremely difficult to attain, and also rather difficult to lose.
But make no mistake: you can attain them and you can lose them, and you can take concrete steps to make either one occur.
It’s your choice: do you want to have commodities, or evangelists?
Because they are mutually exclusive.
Evangelists kill commodities.