Function Wins Every Time!

I like high quality stuff, including clothes. I recently bought a fleece from a well known brand with a very strong international presence.

I bought the fleece over more generic brands as I had an affinity with this brand and I suppose I fell for the “aspirational” advertising. Their marketing really worked!

Around the same time, I also bought a less expensive fleece from a mid-range brand, so that I didn’t wear out the “premium” fleece too much and shorten its lifespan.

After a few weeks, I actually found that I ended up wearing the cheaper fleece more often. Why?

• The less expensive fleece was soft, very soft.

• The less expensive fleece kept me warm when it was cold, and just the right temperature when it was mild.

• The cheaper fleece could fit nicely under a big coat, whereas the more expensive one could not, as it was too bulky to be worn under a coat.

Even though I wore the cheaper fleece about 2x more often, it looked in better condition, whereas the more expensive fleece developed a hole in the right sleeve and looked a bit worn after only a few months. 😫

This caused me to realise the first fleece initially met possibly two of the criteria I feel are super important for a thriving product - namely aspiration and trust, which is why I purchased it in the first place.

After a while of use, I actually began to lose trust in the brand, as the fleece didn’t last as long as I expected, and started to look old before its time. I started asking myself…

• Was the expensive fleece with the nice picture of a guy on a horse worth it?

• Where the materials used in the expensive fleece actually high quality in the first place?

• Were they just using their market position and branding to make higher profit margins with average products?

This caused me to change my buying philosophy.

I still appreciate strong brands you can trust, and like most people, I still enjoy a bit of exclusivity, but what matters most to me is function and reliability.

When it came to the war of the expensive vs the more affordable fleece, the less expensive fleece won hands down as it was much more durable, more functional and could be used in different weather types.

The less expensive fleece had much greater utility!

So, what other products are highly functional and why?

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Electric vehicles:

There was a time when electric vehicles were highly priced compared to their internal combustion engine (ICE) competitors, and therefore considered an expense too far, despite the obvious environmental advantages.

As time elapsed and the cost of EV batteries declined, the total cost of ownership has come down to the point where pure electric vehicles are now increasingly more compelling depending on the brand you choose.

Here are just some advantages that EV’s have over their ICE counterparts:

• Fewer moving parts and therefore can be more reliable, requiring lower maintenance costs and fewer visits to repair centres.

• Better for the environment, so you are contributing towards net zero.

• Electric is usually cheaper than petrol or diesel to fuel your vehicle.

• Charging at home is more convenient than charging at a gas station.

• Vehicle range is increasingly on par with petrol or diesel.

• More of their features can be controlled remotely e.g. over the air updates, which increases convenience and functionality.

Comparison sites: 

Once upon a time if you wanted insurance for your home, car, pet or anything else, you had to search the web and go to individual sites looking for the best deals. This would typically involve entering your details and preferences for every search.

I must admit this seems a distant memory now, but it happened and it wasn’t that long ago.

We now have comparison sites, where you enter your details and preferences once, and it compares across hundreds of different insurance providers, giving you the best deal in one search. It literally saves hours and reduces frustration.

In addition, comparison sites even give you rewards for using their platforms, and as a result, the winners can remain front-of-mind when you need your next insurance quote.

One provider gives me access to a free coffee every week for a whole year by showing my voucher at a participating coffee chain.

This means to enjoy my free beverage, I have to open up the comparison website app each time and retrieve the voucher. A simple task which I’m happy to do for free coffee.

When I come to renew my insurance, I will most likely use the same comparison site, as they’ve given me even more than I expected, and remained front-of-mind due to me having to open the app every week for my regular caffeine fix.

An Apple a Day:

Smartphones are perhaps the epitome of a product with considerable utility, such that users can do away with many gadgets and possibly save money, in spite of the high cost of premium smartphones today.

With the development of the AppStore and other technology breakthroughs, smartphone utility has become almost endless. Here are just a few devices your smartphone now replaces…

• Music player and entire music collection

• Books and your entire library

• Camera and video recorder

• Payment card and wallet

• Mobile gaming device

• Map and GPS device

• Web browser

• Alarm clock

• Calculator

• Flashlight

• Calendar

• Notepad

• Diary

• TV

Lower Recurring Cost: 

When a product reduces ongoing cost whilst giving value in other areas, it becomes a no brainer to keep using it. Certain electric cars a great example, as the total cost of ownership in many cases is now lower than equivalent petrol or diesel variants, whilst having additional utility advantages, making them increasingly more compelling by comparison.

Swiss Army Knife: 

When a product is expensive but only does one thing, it might feel worth it if it does that thing exceptionally well, such as a professional grade camera.

When something does multiple things, all to an acceptable standard, the value it provides can be perceived to be higher. This can give the product developer license to charge a premium, as high utility allows consumers and users to justify the higher price tag.

One smartphone replaces dozens of devices, and therefore can be justified as being worth the expense, when compared to the total value of the products it replaces, in addition to the added convenience of carrying just one device instead of 20+.

Lowering Barrier to Entry: 

High utility products make life easy from the start. The on-ramp is usually relatively seamless and consistently compelling.

A practical example with my fleece was that it felt warm and cosy immediately, so I could wear it outdoors when it was cold, but when spring arrived, I could still wear it, as it felt breathable an adapted to the climate around me. I never wanted to take it off! It was also reasonably affordable.

What About You?

I hope this review helps you and your teams in what you’re building next, so you can think about the features and customer engagement approaches that help make your products as widely adopted as possible, through being aspirational, building trust and high utility!

Tesla’s Model Y meets all 3 criteria of Aspiration, trust and utility, becoming the world’s best selling vehicle.  

Best-Selling Products of all Time

Apple Services: a $100-Billion Business

References and Further Reading

90% of EV owners won’t switch back to petrol or diesel

Eight things that were replaced by smartphones

More from this 3-Part Series

Trust: The Essential Product you can’t See

Aspiration Creates Loyalty

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The Sky is the Limit for Airbnb

When Simplification Wins