National Clothesline

Just as the insurance agent was completing his presentation for the renewal of the client’s business insurance program, he took out a list of what he described as his agency’s “value-added” services. He asked the client to review them and to indicate those that were important to him.

As the business owner went down the list, he concluded that none were of any value. They were little more than “throw-aways.”

For several years, sales presentations were packed with everything extra the customer was getting by signing up for a service or purchasing a product.

Now, it’s all gone.

For the most part, what was touted as “value-added” was little more than smoke and mirrors, a way of making it appear as if customers were getting more than they were paying for. There was only one problem with most value-added posturing — it died because what was being “added” was of no “value” to the customer.

Today, the challenge is quite different. More and more companies recognize that giving is the key to making sales. The race is on to capture attention with significant, measurable value as determined by the customer. While there are many possibilities, here are a few of them:

The power of free. Internet connections are a good example of the power of free. Ask business travelers how they feel about paying for Wi-Fi in an airport. It makes them angry. A seminar speaker asked the participants how they felt about being charged $11.41 a day for an Internet connection at Chicago’s Hyatt Regency Hotel. They were furious!

Without question, Wi-Fi will soon be free everywhere. The tide is turning. It’s close to the tipping point. In fact, the moment of inevitability came the first time it was given away at no charge.

Free makes a difference. Bowers Insurance Agency of Hagerstown, MD, invited a group of clients to attend a financial planning seminar at its offices. While turnout was good, it was lower than expected.

When the next seminar was scheduled, the invitation included a free dinner at a well-known local restaurant. Soon after the invitations were mailed, the agency had a waiting list to attend. The event was so successful that plans were immediately made to hold another seminar with a free dinner.

The power of playing with the merchandise. Handling the merchandise is acceptable and even encouraged in clothing stores. Who doesn’t want to make sure the fit is right? But electronics stores seem to see it differently. Boxes are sealed so all you’re left with is a photo or a damaged demo display. This may help explain why the hundreds of Gateway stores failed. The transparently fake motif was sterile and uncomfortably dull, even with all the black-and-white Gateway “spots.” It was about computers, not people.

Not at Apple stores. The displays are designed to encourage customers to try out desktop and laptop computers, the iPods, the software and everything else. Is it surprising that customers of all ages flock to Apple stores or that store sales amounted to $2 billion in the last year? With the opening of more stores, including the gigantic 24/7 store in New York City, sales figures are expected to climb even higher.

In effect, Apple is saying, “We understand. We like to play with our products, too. So, come on in and have a great time.” Giving permission to try out Apple products helps build a meaningful relationship with the brand. That’s value.

The power of personalized experiences. Value at Starbuck’s isn’t measured by price as it is at most other chain merchandisers; it’s in being able to order “my personal brand.” Stand at a Starbuck’s counter and listen to customer after customer reel off in surprising detail exactly how they want their drinks.

While simplify is the watchword today, complexity is the operative term at every Starbuck’s. According to one report, they offer about 1,500 standard combinations, a daunting roster to say the least. That’s only the beginning, since the 1,500 figure can be expanded to an incredible 23,000 possibilities.

Interestingly enough, this is what makes Starbuck’s “my place.” It’s where my personal expectations are met. That’s value — and it’s why millions of us pay $4.79 for coffee.

Of all the fast food restaurants, Wendy’s is working hard to position itself with “personal preferences.” It offers customers a selection of side order options including chili, two types of salads, French fries, baked potatoes with customized toppings and more. Burger King’s “Have it your way” advertising campaign reached for a similar objective.

In quite a different way, the absence of a personalized experience may suggest why offshore “help desks” meet with so much resistance. The problem may not be the actual service; rather, Americans like to feel that service providers care about them and their problems. When customers sense a lack of empathy, they respond negatively.

The power of enhancing the purchase. The mini-vans with the most cup holders won the sales race. That was Chrysler, and it held the position for many years. Cup holders played a significant role because that’s what mini-van buyers wanted.

Today, in a sluggish real estate market, condo developers are paying closing costs and condo fees to lure buyers. Some particularly perceptive sellers are including 40- and 50-inch wall-mounted plasma TVs, the most-desired home entertainment product of the moment. This is the cup-holder of today’s condo market. Others are including Wi-Fi. Such things as stainless steel appliances and granite countertops aren’t viewed as enhancements; they’re expected.

Enhancing purchases in terms of what the customer values gets buyer attention.

The power of a “second home” experience. When someone caters to us, that makes us feel at home. It’s anything but accidental that some banks, for example, are transforming their branches into comfortable surroundings for customers. The Wall Street Journal reported that Umpqua Bank, which operates in California and Oregon, is putting in couches and offering Internet access. The “teller lines” are coming down. Espresso is beginning to appear at in-branch coffee bars.

Wherever customers can have a “second home” experience, they are more likely to be satisfied.

The power of expressing individuality. Look no further than MySpace.com for confirmation that individuality is a driving force, even to the point where it can be detrimental as employers search the blogs.

According to one report, Seiko offers consumers an unbelievable menu of about 3,000 styles of watches, made possible through the benefits of batch production technology. Why would a manufacturer want to bother with such a gigantic product list? There’s a good reason: so customers can buy the exact watches that match their moods, lifestyle and individuality.

Perhaps more than any other device, the cell phone has given wings to individual expression and instant messaging has taken this to a new level. Whether in class, on the job, at meetings or anywhere else, we are free from restraints.

But when it comes to the ultimate expression of individuality, nothing comes even remotely close to the Apple iPod, which may help explain why it is the most successful new product ever introduced. And it isn’t just about entertainment; it’s about who I am and its genius is it operates intuitively. No buttons, no knobs, no switches.

While other manufacturers try to take iPod market share, nothing works. The iPod defined the market by saying to customers, “Your iPod understands you.”

In effect, individuality is about personal empowerment. Tapping into that theme creates sales.

The message running through these six marketing and sales themes suggests that connecting with customers’ individuality leads to sales. If, for example, you want to attract a latte cohort, understand their lifestyle. Never has the point been made any more than dramatically than with the Apple iPod. Its success comes not from giving customers more technology, but from giving them their freedom.