Compelling Customer Action
The output variable of strategy in Martin's updated definition, see Strategy Is Choice. The desired action, stated generically: buy enough of our offering, at sufficient price, often enough, to produce attractive economics over the short and long term.
The desired action, stated generically: buy enough of our offering, at sufficient price, often enough, to produce attractive economics over the short and long term. Quantity and price. Volume at ruinous prices fails; fat margin on negligible volume fails.
A customer is compelled when the cost of choosing you is lower than the cost of not choosing you, where cost includes risk, switching effort, approval burden and trust, not just money.
Four recurring theories of compulsion (each a distinct How to Win family):
1. Superior outcome, using you produces a materially better result
2. Lowest total cost of ownership, the lifecycle cost, not the sticker price
3. Risk elimination, you remove a risk the buyer personally carries
4. Switching-cost inversion, staying compounds in value; leaving becomes re-engineering
All roads terminate here because of The Customer Is the Only Judge.
Our synthesis of Roger Martin’s published work, sources credited. Read the originals: they’re excellent.
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