You can look at this diagram from a customer acquisition perspective – how can we get more people to switch to our product? Or you can look at it from a retention perspective – how can we make sure no one switches away? Advertising lets you manipulate these four forces. Specifically you can: 1. Increase the push away: Show how bad their existing product really is. 2. Increase your product magnetism: Promote how well your product solves their problems. 3. Decrease the fear and uncertainty of change: Assure consumers switching is quick and easy. 4. Decrease their attachment to the status quo: Remove consumers’ irrational attachment to their current situation. You might remember an advertising campaign from a few years back that focused exclusively on influencing these four forces. Apple’s “I’m a Mac” campaign was hugely successful. It highlighted the pain points of Windows (1), demonstrated how great a Mac was (2), showed how easy it was to switch (3), and presented those who wouldn’t switch as buffoons, reducing their attachment (4) to old habits. In short, they created an anxiety relievable only by a purchase. The 9X Effect In a widely cited article called Eager Sellers & Stony Buyers, John T. Gourville presented what he calls the “9X Effect”. He argues consumers overvalue what they already have by a factor of three, while companies overvalue their innovations, also by a factor of three. Here’s what it looks like: 21
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