In 2012, Twinkie fans taught us an important lesson about marketing: When it comes to company valuation, customer loyalty is king.
Good Design = More Profits
With new camera in hand, I stopped by the local Best Buy to purchase a case.
As you can imagine, there are a myriad of choices for camera cases. Neoprene, hard plastic, leather, leatherette (hah!) just to name a few. When I finally made up my mind on which case to buy, the decision was based not so much on the case itself, but on the exceptionally effective packaging.
To see what I mean, take a look at the LowePro Napoli Case. It's a simple thing, really. Slim leather case with a slot for an extra memory card.
What made my decision to purchase this model was the ability to actually touch the product and see if my camera fit inside. Thanks to a clever bit of design, you can lift the plastic shell and open the flap to the case. I stood in the store and tried out the product, determining that yes, indeed, it fit my camera perfectly. I could touch the product, try it out, even get a sense of its use...all without destroying the packaging.
So, how does good design increase profits? Here are just a few ways:
- By providing more compelling, easy-to-use packaging, the manufacturer encouraged me to use and try the LowePro model over competing products at lower price points. I purchased a more expensive product because I knew it was EXACTLY what I needed.
- By ensuring the product was right for me, I saved Best Buy the expense of a return. This saves Best Buy tremendous labor costs - the return clerk; the person who restocks the shelf with the returned item; the person who rings up a sale twice for only one purchase; the manager who might have to approve the return. In addition, fewer returns means less retail infrastructure (shelving, "go back" carts, etc.).
- By designing packaging that allowed me to TEST the product without destroying the packaging, LowePro ensures they don't get a product sent back to them from Best Buy (it's fairly common practice that big box retailers can send back "unsellable" product to manufacturers).
- By providing a "hands on" experience, the retailer can out-compete low-price online competitors. Best Buy can charge more because they are providing a value-added experience that internet retailers can't match.
The next time you go to open one of those plastic, clam-shell packages (you know - the kind that require a special tool to open), think about the costs incurred as a result of this design decision.
Have you been thinking about a new design? We can also help you. Give us a call at 541-482-3600 for a free initial consultation. And of course, you can always visit our Kinesis website for more designs.