6 Lessons I Learned About Marketing This Holiday Season.Dec 21, 2020
This Holiday Season brings back memories of a class I took in graduate school about business management. I don’t remember the professor’s name or title of the class After all, it’s been 30 years. I do remember a piece of wisdom the professor shared with us. He’d always tell us that there are lessons we can learn about business wherever we look. So true! Particularly, this Holiday Season.
This Hanukah my wife I decided to give each other the gift of health by buying ourselves an exercise bike. The first brand that came to mind was Peloton. We heard many positive things about Peloton. I admire that it is offered as a subscription service and that they have been able to build a very devoted base of raving fan customers. Many of my friends own one. I also learned from an episode of the Future of Field Service that field service is a key strategic differentiator for Peloton.
Naturally, I was swayed toward Peloton. My wife, always in search of the best deal, suggested we do further research. We found that there are several other brands on the market. One that caught our attention is a relatively new brand, the MYX Fitness Plus. Through our research, we found several things we liked about MYX. Namely, it was less money than the Peloton and included features that were not in the Peloton such as a swivel touch screen monitor and a broad array of virtual training classes (e.g., spinning, yoga, kick-boxing, etc.). Also, they didn’t offer only a bike, but a home fitness gym experience. Dumbbells, kettle bars, a range of virtual fitness classes, and other accessories are bundled into product purchases. Most importantly, the company provides home delivery, onsite service, and an app subscription that includes virtual spinning classes just like Peloton.
Sure, there are some trade-offs between MYX and Peloton. For example, Peloton’s virtual classes are targeted to competitive spinners whereas MYX does not. The Peloton can also support a higher level of resistance which is important for spinners who want an “extreme” workout experience. Since neither of these factors is important to us, we chose the MYX.
Here’s where the lessons begin. MYX won our business because it followed several best practices:
- Define Your Niche and Know Your Customers – MYX realized that there is a segment that wants to create a low cost, home gym experience on Day 1. They also understand that these customers are willing to trade-off the “extreme” workout mystic of the Peloton app and community for a better deal.
- Add More Value than Anyone Else - Peloton has gained a competitive advantage in the market through its community and app. However, MYX is winning market share by adding value in the form of bundling other home fitness products into the product purchase and by offering a broader array of virtual fitness classes in its membership.
- Compete on Value Not Price - MYX can very easily compete only on price. However, some buyers might view it as an inferior product because of the lower price. Instead, MYX is competing on value through a diverse array of virtual fitness classes, bundling the home fitness accessories with the basic product, and offering a similar level of customer service.
- Remember it is the Small Things that Count: One of the biggest advantages, yet smallest differences, I found in the product is the swivel touchscreen monitor. Some brands don’t include a monitor. Others include one that does not move. The swivel monitor feature will come in handy as participate in virtual fitness classes like Yoga and High-Intensity Interval (HIIT) training. I can go right from the bike to the mat.
- Scarcity Creates Demand: MYX had two compelling selling points on their website. First, there is a 3 to 5 week waiting period for MYX Fitness Plus which encouraged us to order it sooner rather than later. Also, MYX was offering a bonus in the form of a price discount and other gifts (e.g., water bottle, etc.) if we purchased before December 17th. MYX was using time as a form of scarcity.
- Be Seen Everywhere: Like most marketers, MYX relied on Facebook retargeting adds to get my attention. I could not open Facebook without seeing their advertisement and bonus. This is important to consider. Sometimes you must get in people’s faces enough times before you get their attention or influence them to act. Sure some, people may complain about the frequency. However, those that complain are often not your customer anyway. Those who don't complain are more likely to be grateful for your persistence.
As we all know, both Peloton and MYX are have embraced Servitization through a subscription-based service offering. Hopefully, the lessons I shared with you can apply to your service business too. How will you add more value than anyone else? Can you build scarcity into your sales proposition? Do you want to be seen everywhere? These are questions to contemplate as you wind down the year and look to 2021 for a year of growth and prosperity.
On half of Blumberg Advisory Group, I wish you and your family a Joyous Holiday Season and Happy New Year!
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