Product Surround Model
For every product or service there is a core product, the substance of what you offer.
As a rule of thumb the core is normally about 80% of the cost but can sometimes only delivier only 20% of the value to the customer.
It is in the product surround, which typically is at a much lower cost - say 20% - that could contribute 80% of the customer value.
As a rule of thumb the core is normally about 80% of the cost but can sometimes only delivier only 20% of the value to the customer.
It is in the product surround, which typically is at a much lower cost - say 20% - that could contribute 80% of the customer value.
A simple guide to applying the model:
1) Write the Core Offer in the centre of a circle2) Outside the second circle for your ideal csustomer determine the Key Needs and Problems – think beyond core i.e. put yourself in the customer's shoes (as an individual) - what do they face in doing business3) Brainstorm Secondary Services that meet or help solve these needs and problems – either individually or in combination4) Prioritise each Secondary Service based on key decision criteria e.g.:
- Alignment with strategy
- Ability to support differentiation
- Potential to engage clients
- Capability to deliver
- etc.