Most durable goods have improved in product quality to a greater extent than consumer perceptions give them credit for. Roughly half the brands in the automobile business have higher perceived product quality gap relative to the market leaders than their actual product quality gap. Sadly, too little is being done to close gaps in quality perception. Fortunately, many cost-effective solutions are available. The objective of this paper is to look at various efforts at demonstrating product quality across a number of durable goods companies, and then suggest some best practices in this area.
The Enormous Importance of Product Quality Perceptions
In its Avoider study, J.D. Power and Associates asks vehicle purchases why they didn’t by a similar product. The product quality of the brand is frequently cited. Brands like Hyundai and Jaguar went through dramatic improvements in product quality and have sustained that high quality for many years, yet these brands are still frequently avoided on the basis of product quality.
Understanding that product quality means different things to different people and that their perceptions of product quality are probably not based on anything like a scientific standard is a good first step. Even absent of any objective standards consumers are going to have product quality perceptions that impact their buying. Marketing and sales across both manufacturer and retailer must work in concert to demonstrate product quality throughout the shopping process.
Manufacture Demonstrations Online
Product quality is largely a function of engineering, components, and production process. Since 2005, I have been calling for online demonstrations of superior engineering, components, and processes in the automobile industry. While manufacturers generally agree with the concept far too little has been done.
If ever a brand needed to demonstrate product quality it is Maytag. For years the Maytag name was synonymous with quality, and then it all fell apart. Maytag is not going to get back its old customers or its premium margins unless it demonstrates that its products have improved, yet there is very little on their website that speaks to this. The shopper can “look inside a Maytag” (Home > Products > Laundry > Look Inside the Performance Series Washer by Maytag) and find that the washer belt is the widest in the industry and has 8 grooves to prevent slippage. That’s great for the slippage issue, but how long before it breaks? Are there any special designs or compounds that extend belt life?
Maytag is thrilled to tell me that their ¾ horsepower motor will go 1,000 RPM, but I have no idea why I should care. How long will it last? Are the engineering, components, and production processes in place to assure a longer lasting motor? Is it engineered to run cooler for longer wear? Is there some miracle graphite that reduces friction? Why in the world should consumers believe that Maytag quality once again lives up to the Maytag name?
Harley-Davidson has a brand image that most marketers and sales people would love to work with, but its reputation for quality suffers. One might think that they would demonstrate their improved product on their website, especially with respect to touring bikes. Touring bikes are made for long distance and many years of reliable use. Yet all Harley-Davidson could think to say about their newly designed frame’s contribution to quality was, “The new frame has 50 percent fewer parts and 60 percent fewer welds, providing rigidity and more cargo capacity.”
Are you kidding me? Fewer connections mean fewer possibilities of a disconnection. A more rigid frame means that everything bolted onto it is jiggling less; everything is less likely to come loose; everything experiences less stress. I’m a marketing person, not on engineer, but I am sure there is a credible quality story in here somewhere. Instead of eliminating shopper doubts about quality Harley-Davidson focuses on performance, image, and cleavage on their website.
Some will say that it is best to focus exclusively on the positive aspects of your product and not bring attention to the things your brand has a negative reputation for. If a shopper has bought into your brand image deep enough to ignore your poor brand image for quality, then you don’t have much of a sales challenge in front of you. Shouldn’t your shopping site be designed to meet the information needs of every shopper considering your product? You are likely to find that your brand evangelists are extremely grateful to hear about your quality improvements, especially if they have been apologists for your poor quality in the past. This kind of information empowers brand evangelists.
DeWALT addresses the issue of durability head on with a video demonstration for their battery powered drills. The video demonstration compares the shifting ring of the DeWALT to the Makita. It speaks to the difference in components and takes advantage of video’s site, sound, and motion to convincingly demonstrate that their shifting ring is more ridged than the competition.
Makita has no video, and no mention of durability. It offers the classic text description of their product as well as spec sheets on each product. I have no idea, why I should care that the 18V ½” LXT Lithium-ion Hammer Driver-Drill Kit Model BHP451 has a Blows/Min (BPM) of 0-25,500 in the high range. This is exactly the kind of crud you get when marketers simply take the information engineers give them and barf it all over the shopper. Are you trying to sell the product or not? DeWALT puts far more effort into selling $200 drill motors than Makita does their drill motors or even their most expensive generator.
Briggs & Stratton’s micro site, www.enginesmatter.com uses a video under the Longer Life section of the Ride Engines tab. The video explains the importance of a well designed lubrication system to engine durability. Then it goes on to show all four of its lubrication systems and demonstrates the superiority of its pressure system. What Briggs & Stratton is doing here is not comparing their engine to competitor engines. They already have a great reputation for quality and their video implies that their market leading position is a result of their legendary quality. But the video does much more; it tries to up-sell the shopper to their best motor.
If I’m selling riding mowers, I want nearly every consumer and every salesperson to see this video. The mowers with the best engines are the ones with the most goodies and the highest prices, and customers will be more apt to spend the extra money if they think the product is going to last longer. If I’m a manufacturer of riding mowers, I want this video on my site, in my dealer’s stores, in every sales training program, and in front of the consumer. Now how likely am I to drop Briggs & Stratton and start putting cheaper engines in my mowers? I have no idea why companies like Snapper and Murray do not avail themselves of any of this for their mowers that feature a Briggs & Stratton engine.
Impacting Store Traffic, Close Rates, and Gross Margins
Whether you are demonstrating superior components like DeWALT or superior engineering like Briggs & Stratton, the net result is a more confident consumer. Empowering the consumer with product information related to quality, durability, and reliability not only helps them feel confident they are making the right choice; it helps them confidently engage a salesperson. Many consumers fear salespeople and worry that a salesperson could steer them in the wrong direction. Product knowledge may be the difference between a ready-to-buy shopper in a store and a would-have-been shopper still trying to get by with the product they have.
Automobile manufacturers have the largest advertising budgets of any durable goods manufacturer, yet very little effort is put into demonstrations of product quality, durability, or reliability. Ford has done a good job demonstrating its F-150 pickup trucks, but there is precious little else that deserves even mentioning. Even in bankruptcy, Dodge spends a fortune on 30-second ads talking about their Ram Tough trucks, but there is nothing of substance on the Dodge website to backup the claims made on television.
For online product quality demonstrations to have their full impact sales people must be knowledgeable of these same facts. Otherwise, this becomes another consumer frustration where they feel they understand the product better than the person selling it to them. It does not have to be this way. Today, e-learning programs can be created at low cost and deliver real results. At a minimum, sales professions should be required by their managers to view the online demonstrations that manufacturers make available to consumers.
The end results can be fantastic:
1. More effective marketing brings more shoppers into the store.
2. More effective selling results in high close rates across the larger traffic base.
3. Greater understanding of why your product should not just be considered but be demanded contributes to better gross margins.
I look forward to your thoughts, lessons learned, and additional best practices.
