1. Benefits and Features

2. What is a benefit Benefits are states of being a customer desires to acquire. – Generally described in terms of problems customers seek to solve and experiences they seek to enjoy. – There are often many, many ways in which a customer can acquire the benefits he/she seeks.

3. What is a feature Features are the characteristics of an offer that provide the benefits customers seek. – For each benefit a customer seeks, an offer should contain features that deliver the benefit to the customer. – Example: Moms need to feel secure about their children. This is the benefit. A automatic turn- on device on a “nanny cam” that senses movement in a child’s room is a “feature”.

4. Classifications of Features Basic – They solve the key problem and deliver key experiences Terms of delivery Terms of payment Terms of service – Includes customer service Other features – Building a strong customer relationship – Promotion and sales efforts

5. How can you tell the difference? Benefits describe desired states, usually with an emotional component Benefits can be met through a variety of products and services Features describe the characteristics of a product or service Example – A pet dog, a nanny, and a nanny-cam all help mom feel secure about her children. – A breed of dog known for it’s gentle disposition is a feature of this product that delivers the benefit of security.

6. Importance of the distinction (Part 1) If an essential benefit (deal killer) is ignored, the offer is useless – Example: A particular brand of nanny-cam is made out of materials that can be toxic to children. If a desired benefit (enhancement) is ignored, competitors may provide it and customers will then buy from competitors – Example: The nanny-cam can be operated by remote.

7. Importance of the distinction (Part 1) If features that do not deliver benefits are included in the offer, it is waste. – Example: The nanny-cam is made out of bright, cheerful, colors. Since I will put it into a Teddy Bear, I don’t place much value on this “feature”.

8. Matching features to benefits (Part 1) Need to identify features to satisfy all benefits – Must have all essential (deal killer) benefits covered – Want to have as many other benefits covered as economically possible Want more benefits so customers prefer your business offer over those of the competitors Do not want competitors to be able to provide more benefits – These are the “basic” features

9. Matching features to benefits (Part 2) Make sure you have covered the following features that are essential but people don’t always think about Terms of delivery Terms of payment Terms of service – Includes customer service Other features – Building a strong customer relationship – Promotion and sales efforts Use “The Offering Worksheet” as a guide.