Occam’s Razor is an excellent way of cutting through when you’re having trouble marketing a product or service to customers. Often, the simplest explanation is the right one. William of Okham, the friar associated with the concept, would have a field day in today’s business, especially when it comes to why a brand finds its customers never seem happy. We get so tied in knots…… and yet there might be a surprisingly simple reason why it’s not working.
A simple way of thinking about marketing misalignment
When customers are unhappy, it’s often because the product they’ve purchased doesn’t match their expectations. They’re either budget-conscious customers buying a premium product or people looking for a premium experience purchasing a budget product. In the 1984 classic film Ghostbusters, Egon Spengler is clear: don’t cross the streams. He referred to their “proton streams,” but they apply here. I feel a quadrant coming on:
A customer who wants a premium phone will always be happier with a phone equal to a high-end Apple or Samsung phone because saving money in this transaction is lower in their considerations, and considerations like features and status are higher. Part of the psychology of premium products is that paying more for them is part of the experience.
It sounds so obvious and bland, but it’s worth checking ourselves before we wreck ourselves: am I marketing to the right people? Will they be happy with the feature-laden product I am selling for a premium, or will paying too much for them be a sore point?
People are complicated
This may seem simplistic until you realise that a single person may be a budget customer in one category (or when buying a type of product) and a premium customer in another…. and those purchases may be minutes apart. People are complicated.
A personal example: during the pandemic, I spent a month researching the best value-for-money webcam, only to discover that there were no webcams left in the country and only one type available. I paid handsomely for it, and it stares at me expensively, unblinkingly, every day. Meanwhile, when it’s time to upgrade my phone, money is not a significant consideration because I know I’ll hold onto it for three or four years, and I want the best.
Budget customers want budget products.
Budget customers want value—they’re looking for a product that works without unnecessary extras. IKEA is a great example of a brand that understands its budget-conscious audience. Their affordable, functional furniture is designed to meet the needs of customers who prioritise practicality. IKEA’s flat-pack designs and self-assembly approach align perfectly with this demographic.
Imagine an IKEA customer buying a more expensive product. They may experience frustration and regret as they feel they’ve paid for features they don’t need or want.
Premium products without extravagance: Allbirds and Bellroy
Not all premium products are about high fashion and luxury; many “premium customers” seek craftsmanship, sustainability, and thoughtful design. Allbirds, co-founded by New Zealander and ex-All White (that’s the Kiwi national football team) Tim Brown, produces eco-friendly shoes using materials like merino wool and eucalyptus. Their customers are willing to pay more for the brand’s sustainability and comfort, even though it’s not flashy. They’re part of the uniform of Silicon Valley knowledge workers.
Wool customers pay for comfort?
Tim’s early inspiration for Allbirds was getting his footwear as a professional footballer. The shoes were often made entirely of plastic, and growing up in New Zealand, the idea that natural materials were superior was drilled into him.
“Peak sheep in New Zealand was, 1982, I believe, north of 100 million, now there’s less than 25 million, and no one in a generation has grown up wanting to be a farmer. And you understand that really part of the cause of that has been the rise of the synthetic industry. Cheap, materials derived from barrels of oil. I don’t think I understood that at the time, but I knew there was an opportunity in wool.”
Tote-tally sustainable design
Bellroy is another great antipodean business, this time Australian, founded in 2009 by designers Andy Fallshaw and Hadrien Monloup and engineers Lina Calabria and Matt Fallshaw (Andy’s brother). Bellroy offers slim, durable wallets, bags, and accessories that combine smart design with sustainable materials. Their products appeal to premium customers who want function and sustainability without the extravagance of luxury brands. Bellroy’s approach to premium products demonstrates that people are willing to pay more for quality and ethical production.
The founders started a handful of businesses, including Bellroy. As Andy said in the Growth Manifesto podcast, “We could see that there was something very different about Bellroy. We could see that the product-market fit was resonating in a way that was surprisingly powerful.”
I’m a huge fan of both brands. My parents were carpet retailers and I come from a long line of sheep farmers. I’m an ardent believer that wool is a criminally underused resource, especially given the alternative. As for Bellroy, I’m about as prepared for urban life as you can be with multiple Bellroy carry options. My Bellroy backpack is one of my prized possessions.
What happens when brands get it wrong
When companies misalign their products with customer expectations, the results can be disastrous. I won’t point to an Aussie or Kiwi business as an example of this. Instead, a famous example is Abercrombie & Fitch. Once known for its premium exclusivity, the brand shifted towards mass production and discounts to attract a broader audience. This move alienated their core customer base, leading to a sharp decline in sales and brand perception. Their misalignment between product and customer meant severe consequences. This wasn’t the only issue – there were some serious controversies they got embroiled in – but they appear to be on their way back with Gen Z.
Aligning products with customer expectations
Unsurprisingly, we complicate things in marketing, especially in the AI age. Be like Occam. Keep it simple. Be like the Ghostbusters. Don’t cross the streams. As always, it’s not about you – it’s about them.