The value of the intangible
Have you ever wondered why some brands are more successful than others even when the products and services they offer are comparable in quality? Beyond the type of messages that the most recognized brand builds, its success is most likely due to the fact that they know how to recognize the value of the intangibles it offers, something that is clearly reflected in the way it communicates.
Initially, the concept of intangibles may be a little fuzzy when you first hear it, but any doubts will be clarified in the following paragraphs.
Let's imagine that, in the shopping mall you frequent, two new establishments offering yogurt ice cream open, both of which give their customers the possibility of customizing their ice cream, from the flavor to the toppings. Both establishments operate during the same hours and provide spectacular service, always friendly and with a smile. However, there is one big difference that makes one of the establishments a customer favorite.
No, it is not the concept of the place that is more successful, nor the flavor of the ice cream, it simply happens that one of the establishments has a free wifi network through which, with the use of a wifi marketing tool, they have created a campaign with which it is possible to give personalized coupons to their most loyal customers, give them news about new flavors and promotions and even make personalized recommendations according to the products they consume most frequently. Customers now associate the brand with innovation, practicality and discounts that reinforce the ice cream shop's institutional identity.
It emphasizes intangibles as much as it does the product; it involves generating meaningful relationships with customers, beyond the direct benefits provided by what we offer. It's about telling stories through every interaction with the consumer, whether in our physical store or via email. It is not for nothing that when we see ads and billboards of the brands we love, there is an association with their intangibles rather than directly with their products and services. Theodore Levitt (1981) explains it simple, as intangible refers to our product´s the capibility of creating an experience in advance of consumption.
Every time we see the box of our Apple device in the corner of a room, we do not think about the advantages of it, but it comes to mind how comfortable it makes our work, the elegance and even the inherent status of the brand. Just as we see the Domino's logo everywhere, the pizza takes a back seat when we think of its 30-minute guarantee. Experiences are at the core of a successful business practice, and that's why hundreds of companies stop to analyze the value of the intangible.
Get to know your valuable intangibles now.
Levitt, T. (1981) Marketing Intangible Products and Product Intangibles in https://hbr.org/1981/05/marketing-intangible-products-and-product-intangibles