One valuable trait of a product manager is being a visionary. They are able to redefine situations, find ways to improve their products that go beyond the norm and think about how they can adjust to keep themselves afloat in an everchanging market. It is evident that Augustin is a visionary. However, his extreme focus on his own vision failed because he forgot to align his vision with the vision of his consumers.
Hablar claro had a clear goal: to dismantle the discount and sale oriented pricing system that Emilia is known for. Critical of its deceptive tactics, Augustin wanted to create a culture of directness and transparency. However, here Augustin is simply projecting his own hatred of the “games” played by retailers on to his customers. He fails to think about whether consumers actually want to participate in a retail environment with sales. Discounts have the ability to provide a rush for consumers. They make buyers feel as if they made a wise decision with their money, allowing them to feel confident with their purchase. Considering that the majority of Emilia’s customers were price-conscious middle-aged women, these discounts and sales providing a thrilling and reward experience. Completely abandoning the discount model meant that he was abandoning the needs and desires of his customers: the thrill of saving money. Although Emilia would still have low prices, there was no sensation of saving, pushing his consumers away.
Testing one’s assumptions about customers before imposing shifts within a market strategy is important because it makes sure that the values that you impose are in line with your customers values. If there is any misalignment, customers are encouraged to break off ties in search for a company that will suit their needs. Here, Augustin would have learned that his old customers desired the rush of discounts, and the abandonment of this pricing makes his older customers feel as if they don’t provide any value to the company.
If I were advising Augustin, I would tell him to hold on to his vision. However, his current proposal of a four year plan doesn’t have any steps that will help Emilia’s thrive day to day. He must revisit his goals and think about what he can do within the next weeks or months to improve the customer satisfaction and retention. Furthermore, I would encourage him to test his assumptions before blindly projecting his values onto his customers. It is possible that his customers may want to shop in an environment that doesn’t have discounts and sales. However, he must test under what conditions this assumption would be true. What else do his customers value that may help differentiate Emilia’s from its competitors while it steers away from this pricing model? If discounts and sales aren’t what brings his old customers to the store, what value can they provide?
nice!