By Andy Green (SERIOUS Creative Director).
To succeed you have to make the most of what you have got and explore different ways to create a competitive advantage. One obvious route is to examine any potential economies of scale: how can you focus and use your expertise and specialism to do more of perhaps fewer things at a lower cost than the others. A less obvious strategy is to explore any potential economies of scope. What do we mean by this?
Unlike economies of scale where you look to do one thing very well in large volumes, economies of scope is about doing lots of things under one roof. And for many small to medium businesses and organisations this could actually be the most relevant and profitable way ahead. Whether it is better cross-selling of similar products, to a corner store offering an ATM facility at the heart of this approach is having a relationship with a customer and asking how can you obtain more value from the relationship.
What you are doing for your customer is reducing their total cost of a product or service. They may have a host of different add-on costs: the time and money to search, locate alternatives, purchasing and receiving costs, after sales. By offering an economy of scope you are reducing the total cost to your customer – and that is not just money but also time and reducing stress and anxiety. Offering economies of scope can also make you more valuable to your customer and make them more likely to stay with you.
Now in addition to offering you this insight and knowledge from this article would you be interested in a special, easy-to-do session for your team to train them on this and many other relevant issues relating to you being more innovative, getting better results from your content marketing, or telling your brand story and word of mouth better, or making use of an on-going adviser relationship… (See how it works?)
What economies of scope can you offer your customers? How can you provide a benefit to reduce their total cost in money, time and reduced stress and anxiety?
(Photo: Markus Spiske / www.temporausch.com / CC-BY)