Why We Consume

Downgrading What Is Free

Garth Beyer

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As unfortunate as it is, some businesses need to downgrade what they give for free.

Let’s stick with the same example from yesterday. Suppose that this bar and grill that gives large and cool designed mugs to those who go there on their birthday had to downgrade. Suppose they have to make cuts in their budget to stay open. They decide to give away the rest of the large and cool mug supply and replace them with small, round cheap mugs that just have their logo on it.

Unlike upgrading what is free, downgrading what is free hurts the customers you haven’t yet gotten.

On the positive side, it makes those who were there to get the free large, cool designed mugs feel even better. However, this has two repercussions.

1. Feeling better about something doesn’t mean they will want to come back again.

2. Giving something awesome for free is as much about optimizing word of mouth marketing as it is about making someone feel good for coming to your bar and grill, and not someone else’s.

The gamut here is that downgrading what is free risks negative word of mouth. Imagine someone who got the large, cool designed mug on their birthday then invites someone else to the same bar and grill in two weeks to celebrate their birthday, only, neither knows that the bar and grill downgraded their birthday mugs.

You can imagine where this leads.

This leaves us with the question of how we can make downgrading what is free, work. After all, while upgrading is always an option, sometimes downgrading is not.

The answer is, when you can’t change the product to make it better (or when you’re forced to downgrade), change the delivery.

People talk more about what they experienced than what they received anyway.

 

Stay Positive & Over, Over, Over Deliver

Garth E. Beyer

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Upgrading What Is Free

Garth Beyer

NittyGritty

There’s a bar and grill in downtown Madison that gives a birthday mug to all those that go there for their birthday. They also fill that mug up with a free drink of your choice if you couldn’t have guessed.

One year they decided to redesign the mug, making it larger and more aesthetically appealing.

It bummed out all those that had gotten the smaller, less good-looking one.

When you upgrade what is free, it is a sign of your business making progress, but you run the risk of hurting your previous customers. It’s never an easy decision to make when you consider that those who have gone to your bar and grill are more likely to return than those who have never been inside.

The first way to fix this is to give the redesigned, larger mug to everyone to begin with. Don’t wait for the profits to do it. We know that people buy into how things make them feel, what also matters, though, is that what the buy continues to make them feel that way. When free things are upgraded, it devalues the feeling of what has already been given away.

I don’t recommend doing it this way.

The second and ultimately beneficial way of fixing the problem is to reach out to those who already received the smaller, less good-looking mug. Suggest that they can come in and swap their mug with a new one. Or state that for the next month, if they come in with their old mug they get a special dessert put inside it, or a discount on their meal, or another free drink.

When you upgrade what is free, you can’t neglect those who already received the smaller, less good-looking thing.

 

Stay Positive & New Customers Is Progress, Old Customers Is Profits

Garth E. Beyer

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Why We Consume

Garth Beyer

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In the early days, we consumed to meet our needs.

Then we consumed to meet our wants.

What most people miss is after we met our wants, we didn’t want more; what we wanted was to feel.

People don’t buy a BMW because it shines. People don’t buy Starbucks because it’s the best tasting coffee. People don’t buy bigger houses because they want more, more, more.

People buy into how items makes them feel.

Businesses have gone from advertising (more, more, more) to marketing (feel, feel, feel). We’ve gone from buying what we want, to buying how we want to feel.

Looking at it this way makes consumption seem more positive. The more you consume the better you feel. But let’s not forget that the less we consume, the more leisure time we will have.

Ask yourself, how would more leisure time make you feel?

 

Stay Positive & Better Than Consuming?

Garth E. Beyer

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