When I created a link to the post on my Facebook page, it started a whole new conversation over there.

Take a look at this exchange between Brett Feinstein of Pound & Feinstein, Dennis Collins of New American Marketplace, Dave Young of Branding Blog, and Tom Wanek of Marketing Beyond Advertising.

Their thoughts on low price, corporate competitors, and value is so good, I wanted to make sure I shared it with you.  Do you have any thoughts you’d like to add about when “low price” is the strategy to try?

“All we are hearing from our retailers is “price, price, price.” Yet we know 75 per cent of the consumers buying (our genre) are women. How can we help them see that price isn’t the issue? We’re all leaving precious margin on the table.”

I can sympathize with my friend’s situation having read recent stories about the flaming online price war between Wal-Mart, Amazon, and Target over upcoming releases like Stephen King’s new book.

When it comes to competition, I could wax on about the importance of retailers creating a remarkable customer experience – and that is becoming more and more important – but it would be preaching to the choir.

The most successful retailers have already instituted an excellent in-store experience. They’re probably also the retailers that have the strongest customer base and biggest profits.

Unfortunately, the rest of the retailer gang doesn’t necessarily “get it.”

The biggest error in retailer judgement today is focusing on PRICE.

There’s no doubt that there are consumers who consider price to be the deciding factor. But I believe it’s a smaller percentage than anyone is willing to admit.

The key is getting retailers to make a subtle shift in perspective.

Instead of price, focus on VALUE.

What is VALUE?

VALUE is simply “perceived price” vs. “actual price.”

If a customer looks at what a product has to offer, guesses a price in her head, then finds out it costs less than what she expected, that’s VALUE. And VALUE sells every time.

So, how do we talk about VALUE?

Well, VALUE wears different clothing, depending on the individual consumer.

For one shopper, VALUE might in fact mean “price.” And you know what to do there.

But for another shopper, VALUE means “extras” – what comes with the [product] that might enhance the personal – perhaps even spiritual – experience?

For another shopper, VALUE could mean portability. “I already have a [product] like this – it was my grandmother’s and I treasure it. But I want one to just throw in my bag and not worry about losing it.”

For yet another shopper, VALUE could mean “connection” – how might this [product] be the best one to give as gift? Or how can it strengthen a relationship?

Are you beginning to see why price alone is dangerous territory? There are too many individual needs and internal value systems to assume that people are solely driven by price.

The price-driven customer market is tiny and finite, and focusing on them does nothing to build customer relationships or loyalty.

They may have turned to you for the lowest price, but that also means they’ll turn away from you (and go to your competition) for the same reason.

Retailers get caught in the trap of short-term sales rather than long-term growth.

If you’re a retailer, take just one of your products and see how many different ways you can place a VALUE on the piece.

Or, if you have a product line, why not have a series of items that does indeed include a lower-priced option, but also offers higher-end items that satisfy other values that different shoppers might have?

If you’re a manufacturer or distributor, create a comprehensive marketing strategy and materials for retailers that would outline the VALUE that each of your product offers. It will increase retailer “buy in,” to such a program, AND will automatically differentiate your product, since you are serving the customer’s needs in ways your competition is not.

It won’t be an easy job, but done right with enough steam behind it, a VALUE plan rather than a PRICE plan will mean long-term growth in profit and customer loyalty.

1. Believe that low, low prices are the most important thing to her.
2. Believe that you’re marketing to her and her alone.

Here are some recent purchases I’ve made:

When Price Didn’t Matter

• Spending $5.03 on a small container of veggies at AJ’s because the deli manager took the time to come out from behind the counter and find me in the store to tell me they were freshly steamed.

• Spending $15 more for a pair of fitness shoes on NB Web Express, because they have a free return policy (they even print out the return slip and place in the box) and they write personal thank you notes to their customers.

• Spending more than you want to know (you’d need smelling salts) on my Fuji road bike because when I was first shopping, the salesman at Bikes Direct spent 20 minutes talking about what my needs were and how I’d be using the bike before he even suggested trying one out.

When You Marketed to Me Through My Husband

• Well, there’s that little story of the kitchen tile…

• Recommending a local chiropractor to no less than three girlfriends because of the excellent experience Husband has had (and I’ve never been to see this doctor myself!)

When I Made Purchasing Decisions That Affected Others:

• Choosing Halloween treats for my WonderBranding class, opting to buy from a store that had listed driving directions on its website.

• Making hotel reservations for friends for the upcoming Wizard Academy reunion – choosing a hotel because I love their beds.

• Recommending my vet to a gal at my gym because of the fantastic experiences I’ve had when taking Penny the WonderDog.

Stop thinking you are marketing directly to women and that you always have to reach out for new customers. Your existing customers are the straightest line to profit and word-of-mouth influence. And don’t think that because you’re talking to man you have to act differently. Remember, he probably has a girlfriend/wife/sister/mother/daughter he’s going to turn to when he has a rotten experience, and that can be the worst kind of marketing-to-women strategy.

This morning, she presented me with a handful of freshly inked business cards and asked that I recommend her service to my neighbors and friends.

I told her that I couldn’t.

It’s not that she doesn’t do a great job – the woman is a cleaning machine.  After a visit from her, every inch of my house sparkles with a Disneyesque twinkle, and I just feel better about life in general.

So why wouldn’t I recommend her to my friends?

Because it would ruin my credibility.

My cleaning lady is undependable, inconsistent at best.

• Cleaning appointments are missed.
• Communication about why is almost non-existent (and no, it’s not a language barrier issue).
• Responsibility is not a high priority.

While I work around these quirks (for now), I couldn’t expect my friends to have the same level of tolerance.

I’d never recommend her to anyone, because her inability to deliver reflects on my credibility as a person with sound judgment.

When businesses strategize about generating word-of-mouth marketing, they stop at the point of figuring out something remarkable to offer. They forget the most important part – how they’re going to offer it on a consistent, dependable basis.

And for women, who are wired for connection and are three times as likely to talk about your product or service, dependability is the key to word-of-mouth.

She’s staking her reputation on what you have to deliver.

God help you if she sends someone your way and you screw it up.

In the last three weeks, I’ve been personally embarrassed by well-meaning recommendations that I made.

A restaurant.

A web designer.

A marketing consultant.

All still good at what they do, but completely unreliable in the dependability department.

Curiosity may have killed the cat, but inconsistency will kill the business every time.

Are you too focused on the sparkle and not enough on consistency?

After writing about the kerfuffle last week, it ocurred to me that if Pepsi had simply created a female version of the app, it could have saved itself a world of hurt AND garnered the attention and love from female customers.

Giving women the same opportunity to categorize men and revel in pick-up lines would have meant wild viral downloading among girlfriends, and friendly, entertaining comparisons with the male version.

As I wrote before, the technology used to create the app was outstanding.  Pepsi just didn’t think the marketing through all the way to the end, and got caught in the trap of linear thinking.

A potentially awesome marketing campaign, kicked to the curb before Pepsi could score.

This morning, I returned the call via her direct line.  The phone rang several times, and I mentally prepared myself to leave a voicemail.

Someone picked up the phone – a man.  “Good Morning – Chase Bank at Pinnacle Peak.”

Thinking I had dialed incorrectly, I asked for Alicia, and was put on hold.

A few seconds later, Alicia came on the line.  When I started to apologize for dialing the wrong number, she stopped me.

“You dialed the right number.  We just don’t have voicemail anymore.”

It turns out that Chase has made a corporation-wide decision to eliminate voicemail systems in all of its branch banks.

Effective this week, my branch has switched over to a new phone system.  During business hours, I will get a live person who has been trained to answer the phone and take detailed messages, if needed.  After business hours, all calls will go into one voicemail box, which will be transcribed and sorted first thing the next day.

Alicia says, “Chase feels that real, live customers deserve real, live customer service.”

This is smart marketing that, for me, just made Chase seem a little less like a corporate behemoth and a little more like “the bank around the corner.”

Have you encountered any positive communication changes with businesses like this lately?  Have you instituted changes within your own business?  Tell me about them!

According to Jackie and Ben, one marketing strategy that many of these companies have in common is the creation of a board of customer evangelists. A solid board of committed customers (with no other investment in your business) can provide you with more business insight and marketing ideas than a dozen demographic studies or focus groups.

Start small for big ideas.

Begin by identifying 4-6 of your most loyal customers, then invite them to join an informal panel of “customer experts.”  Keep the number of participants small – manageability is key in the beginning, both in terms of people skills and to be able to capture the ideas that are generated by the group.

Create a “come-as-you-are” sense of informality.

This is the kind of board that belongs around a dinner table, not a conference table.

Once or twice a year, bring the group together in a luncheon or dinner atmosphere (a private room in a restaurant or at someone’s home is good), and break bread together.  Set the stage for conversation, informality, and sharing.  Eat, drink, and be merry.  Only after getting everyone to relax a bit should you start talking business.

Encourage bad news.

Any good relationship built on trust allows for freedom of communication – the good, the bad, and the ugly.

A successful board of customer evangelists not only tells you what you’re doing right, but what you can improve.  Do you want honest feedback about what you’re doing right and wrong?  These customers will tell you.  Explore how they’re using your product or service.  Are they missing something you assumed they knew how to do?  Are they utilizing what you sell in ways you never dreamed – ways that should be shared with others?

Start the conversation by saying, “I already know that you love our company.  I do want to hear about the things you think we’re doing right, so that we can deliver that experience on a consistent basis.  But, more important, I need to hear where we are missing the mark.  What can we improve?  Where are we inconsistent?  What will make us better as a company and deliver an even greater experience to our customers?”  The feedback you get will be mind-blowing.

Why wouldn’t you try this?  This group of customers loves you for SOME reason – you’ve already won them over.  The trust and love is there – let them help you.

More than ever, customers are dying to have a dialogue with companies.  Be one of the smart companies, and start one with your customers.

Lots of folks are pretty peeved, evidenced by the comments on YouTube and Twitter. And therein lies the beauty of “controversy branding.”  Pepsi’s milquetoast apology a few days ago seems to be its way of saying, “Sorry, suckers – the app is a HUGE hit and getting a lot of attention.  If you think we’re gonna pull it down, you’re crazy.”

A confession: I downloaded Before You Score.  And while I consider it to be on par with the fart machine app, I have to say that the creators did an impressive job with cross-referencing technologies.  If Pepsi was smart, they’d use this expertise to create a kick-ass app that boasts some value power for its female customers.

What do you think of the Before You Score controversy?  It seems to have rung the “get attention” bell for Pepsi.  In the long run, will it be worth it for the company?  Did the company achieve the balance of controversy vs. short-term memory of the consumer?

Think that’s harsh?  Then you ain’t seen nothin’.  Remember:  With four times the connections between hemispheres of the brain, a woman’s human operating system is directly linked to her BS meter.  Hype, bluster, and poor messaging don’t even begin to make it through the purchasing process filter.

Here’s what you can learn from this direct mail example:

1.  Hire a copywriter.

You have about 4 seconds to plant your brand into her right brain.  Poor grammar, bad spelling, and run-on sentences get you immediately kicked to the curb.  Mixed messaging (“best contractor” vs. “need to keep my employees busy”) will also short-circuit the entire sales process.

The tone is also critical.  Overuse of exclamation marks, sensitive language like “come-on,” and pushy phrases such as “Don’t call unless you’re ready to go” are all no-no’s.  You’re trying to persuade her to do business with her, not bully her into it!

2.  Back up your claims with proof.

How can you say you’re the best contractor in the area without facts to back it up? If you don’t have proof, don’t say it. And don’t expect that women are going to go to your website to look for awards or testimonials, because they don’t have the time.

3.  Without a pay-off, your guarantee is worthless.

Saying that you guarantee lowest price means nothing unless, once again, you can back it up.  Receipts and pay stubs won’t be enough here.  You guarantee it or what – you’ll do the job for FREE?  Guarantees without a customer payoff are just empty promises that send the BS meter into the red.

Will this contractor get 5 jobs out of this direct mail piece?  I’m doubtful.  My guess is he’ll try sending this piece out next month, and the month after that, pouring good marketing money down the drain.

I’ve sent the contractor an email offering to help re-write the copy and get him those 5 jobs he’s desperately seeking – we’ll see if he takes me up on it.

What other things do you see on this direct mail piece that raise red flags for you?