Patrick Barwise

I would suggest that the authors of Simply Better described their book best in the Preface. They state:

"The book carries two general themes. First, everything hinges on giving customers what matters most to them, even if that proposition seems less exciting than focusing on novelty, uniqueness, or the latest management or technology fad. Second, what separates winners from losers is usually not their strategies but their differing ability to execute those strategies... While readers may find some of it a little obvious, that is part of our point. As obvious as the Simply Better argument may sound, companies still struggle to focus consistently on customers, especially while simultaneously trying to reduce costs."

The authors spend the next seven chapters reinforcing that companies need to focus on the "generic category benefits" (GCBs) of their product/service.

Chapter 1, "Differentiation that Matters", suggests that "performance on the basics can vary enough between competitors to dominate all other sources of differentiation." They go on to say that companies must not concern themselves with USPs (unique selling propositions) until they have mastered and lead their category on the generic benefits desired by customers. They must be different "but different as in simply better, not as in unique or different for the sake of being different." They reinforce their point by discussing the American Consumer Satisfaction Index and the fact that all of the focus on being "unique" by comparison to competitors has not increased the index at all from Q3 1994 versus Q3 2003. They also give examples of organizations that have taken the right approach: Toyota, Cemex, and Orange.

In the next chapter, "How Customers Really See Your Brand", the authors contend that "often, our biggest mistake as managers is believing that, in general, customers care a lot about our brand. They do not. They care about the benefits our brand and competitors' brands deliver." They also indicate that customers look to the brand that has most consistently delivered the highest level of total benefits. In other words, they want simple choices based on total value. If your brand is the one they think delivers the most benefits (that they value), they are loyal. It's that simple.

The third chapter, "Identifying Generic Category Benefits", explains that you identify the GCBs through three things: (1) direct customer contact: immersion in the market, (2) understanding your competitors, (3) exploring the customer experience, especially dissatisfaction.

Chapter 4, "Challenges of Innovating to Drive the Market", says that "innovation for innovation's sake is nonsense, but relentless innovation to improve performance on the GCBs is an essential element of sustained business success." Innovation is driven through: motivating employees, building the right business system to stay focused on the GCBs, and combining experimentation with clarity (i.e. experiment but in the right areas). This chapter also talks about the role of IT in this strategy.

Chapter 5 discusses how to advertise and get your customers attention despite your lack of a USP. It suggests that your advertising must be attention getting (obviously) and offers a five question process for creating a marketing communications strategy: (1) where are we now? (the brand's market), (2) why are we here? (what are the customers' perceptions that keep us there), (3) where could we be? (what are the communications objectives/what do we want to change), (4) how can we get there? (what is the creative and distinctive campaign to get us there), (5) are we getting there? (measuring performance)

Chapter 6, "Customer-Focused Mindset", describes how some of the most successful companies with GCBs learn about their markets, learn what the customers value, and create customer-focused cultures. Of course it includes the mandatory graphical business models required of a business book.

The final chapter is a review of the key points of the book.

I have thoroughly enjoyed this book. I've read it twice now as I am solidly behind the authors' theory. I believe most businesses do focus too much on making themselves "different for the sake of being different." I believe most people do select a particular brand because it will provide the most overall benefits. I believe most people do ignore the fringe attributes that companies spend so much time developing and promoting. I believe customer satisfaction does have tremendous room for improvement.

The book is easy to dismiss as too simplistic. You’ll either embrace it or think it’s common sense (and then dismiss it). If you think it’s common sense, you’re either already sold on the idea and following their approach or your head is in the sand. Remember, simplicity is the point.

Whether you agree or disagree, the book is well worth the 5 hours or so it will take the authors to present their case. Then you can decide for yourself.… (meer)