If you’re still structuring your offerings as “Good, Better, Best,” it’s time to rethink your productization approach. That method worked in the past, but it’s not as effective today, and it could be the reason you’re not converting as much business as you should.
Today’s buyers expect more than a basic triage of cookie-cutter options. They want personalization and custom solutions. You’re not selling snacks from a vending machine, you’re providing value. You offers should not be based on pricing. Buyers want alignment, not generic options. That’s true whether you are selling services, products, or a combination of both.
And when there is quality in an offering, the price is much less of an issue. Think about the last time you bought something that was more expensive than you thought it would have been. Why did you decide to pay the higher price? Was it the value and quality involved?
When you offer good, better, and best options, you create the impression that your business is price-focused, and you are not a value-provider or trusted partner. Worse yet, you are limiting your recurring revenue opportunities to those clients who want to upgrade. If someone has already purchased your “best” offer, why would they come back in the future? Wouldn’t they believe they’ve already seen your best? And there are other reasons to stop this practice too – all of which have an impact on your brand and revenue potential. Here are two more of those reasons:
- When customers choose based on tiers, they experience your business only at the level they purchased.
Those drawn to your lowest tier rarely return for more, while others will question whether your higher levels are worth the price. The end result is you’ll sell more of your lowest price offerings and that will limit your revenue growth. And your brand will get the reputation of being a low-priced option.
- As I alluded to earlier, Good, Better, and Best do not respect the modern buyer’s journey.
People don’t want to feel they have sacrificed quality for price when they make their first purchase, or feel they need to come back and upgrade later. That may encourage them to find a solution from a competitor. And if you are in an industry like construction or remodeling, you know that the inconvenience is unappealing, and the thought of repeating it could cost you the customer.
So, how should you create your offerings? Instead of tiering by price, organize your offers around outcomes, or the levels of support they target, such as Launch, Growth, and Scale. Each should deliver full value, but for different goals or maturity levels.
If you’re curious how this could look in your business, let’s talk. I’ll show you examples of how other companies have restructured their offers to improve conversion and client loyalty.
