Know-How Exchange : Customer Behavior

Offer two classes of service: (1) digital security, and (2) digital security PLUS physical security. Charge slightly more for the premium service (like +10%). Explain that the [additional] physical security is possible because the data are stored in a secure remote location -- still easily accessed -- so that the likelihood of natural disasters is minimized. Both classes of service offer all the same features/benefits in terms of security, access, etc.

If asked, you can even say that while many of your operating costs are somewhat lower in the remote location(s), that savings, plus more, are reinvested in additional physical security measures -- fences, electronic monitors, physical presence of guards/security staff, etc., and the additional administrative costs.

You can even offer to discount the first year of a multi-year agreement for those who select the premium service at the remote location.

I'm guessing (based on years of consulting on pricing strategy) that once you position the remote storage option as an additional benefit, with a premium price, many of your customers will prefer it.

I've used this "pie a la mode" pricing approach with several clients over the years, and it always seems to work. Pie a la mode is more popular than "plain pie."

You change people's mindset by giving customers exactly what they're asking for: a sort of "You asked, we listened" approach.

You then charge fees accordingly.

You—obviously—want to keep your overheads to a minimum, something that makes perfect sense and a point I agree with you on 100 percent.

Here's the problem with our mutual positioning statement from our point of view as the vendor: our needs do not matter. Were I in your shoes right now, MY needs would not matter either.

But you and I are not the ones buying the service, so what WE think is meaningless.

What REALLY matters is what prospective CUSTOMERS think, and if their marketplace perception is that they need to be able to reach out and touch their data, that's what you need to give them: the assurance that the big building down the street is the data hub they perceive it to be.

It is a waste of time, effort, stomach lining, will power, and marketing rupees to sink money into changing people's minds when those minds are already made up: the view is simply not worth the climb. BUT ... and here's where perception will win you points: by offering what your customers expect, and by phrasing the desired, solidly supported benefits (you mentioned something about pitching ... please, instruct your sales people that henceforth, there will be no pitching) of access to data and the building it's stored in, on demand, THIS then fuels the fires of people's mindset.

Why?

Because the sooner you stop "selling" data services and instead, begin offering peace of mind for a premium, the sooner you'll see your revenue streams increasing. The "offer here works as follows: you offer clients access in their city AS OPPOSED to server centres that are out in the the back of beyond. To people seeking peace of mind and accessibility, the "data centre in the middle of nowhere" scenario is not a solid value proposition they can relate to, but having a centre down the street that they can walk to, and for which they'll pay more for peace of mind, THIS, as odd as this might sound, THIS is the positioning that LEADS to the conditioning.

In short, give people what they're asking for and charge accordingly.

sometimes, seeing is believing. If I were in your shoes, I would offer several versions of a site visit. For example, once a year or once a quarter you could have an open house at your facilities, and invite people to make the expensive trip. Maybe you could even have a sort of a users group during the meeting. Also, take video of the trip, so that other customers can essentially have a virtual tour of your facilities. Try to include useful content, such as demonstrating your hot site capabilities and conducting a test restore of their data. Personally, if I were responsible for data for a large enterprise, I would want to personally meet the people taking care of it.

There is lots to see during a site visit. Is the site physically secure? Are spare parts available? Does the site have a fire suppression system? Is the wiring organized and properly labeled? Are there sufficient facilities in case I need to use the site as a warm site?

Given the choice between two facilities, one of which will allow me to visit and will take me to lunch occasionally, and another which will only e-mail me a PDF, I will go with the more available service every time.

Why would you not want to invite them? Are you ashamed of the facility? Do you have something to hide? Is everything really as you claim?

If I had to guess, I would imagine that your data center is not quite ready for a series of visits. You might need to invest a bit to dress up the place and the people, and you probably need to work a bit to develop an agenda for a series of open houses and train your people about what to say and what not to say during these open houses.

I suggest that you take this market feedback as an opportunity and is a chance to differentiate yourself.