In today’s fast-paced world, businesses that succeed are those that identify and solve customer problems, especially those causing frustration or inconvenience—also known as hassles. The bigger the hassle you solve for your customers, the bigger the reward or premium you earn. This article will guide you through how solving these pain points can position your business to thrive in Australia, using real-life examples and innovative solutions that can transform your business model.
What is Hassle Premium?
A “hassle” is any burning problem or inconvenience faced by your customer. It could be time wasted, excessive effort required, uncertainty, or confusion in the process of purchasing or using a service. The premium refers to the profit gained by resolving that issue—either by charging a higher price for the convenience you offer or by gaining a larger share of the market.
Simply put: The bigger the hassle solved, the bigger the premium you can charge or the larger the market share you can capture.
Let’s explore some common hassles and how you can address them to create value for your business.
1. Takes Too Much Time to Complete a Task
In a world where time is money, customers are increasingly impatient. If buying your product or service takes too long, customers will look for alternatives. By identifying and reducing the time your customer spends in the purchasing process, you create a powerful connection.
Example:
Take real estate. Websites allow potential buyers to filter properties based on size, location, and price within minutes. This saves hours or even days of searching, reducing a significant hassle. Streamlining the customer journey—whether it’s through a streamlined online booking system or automating parts of the sales funnel—can help achieve this.
2. Reduce Your Customer’s Effort
Customers today seek ease of use. If your product or service requires too much effort to access, it becomes less appealing. Your role is to reduce the friction points that cause your customers to put in extra effort.
Example:
Ride-sharing apps transformed the taxi industry by making the process of booking a ride seamless through an app. Instead of standing on the roadside or negotiating prices, customers can now book, track, and pay for their ride effortlessly.
3. Reduce Complexity, Uncertainty, or Confusion
Too many choices or unclear information can paralyse a customer’s decision-making. Simplifying your offering can make your customer’s life easier and build trust.
Example:
Online insurance aggregators provide side-by-side comparisons, allowing customers to easily choose the right plan. Reducing confusion enhances the customer experience and builds confidence in your product.
4. Can You Reduce the Price?
Price sensitivity is a significant factor in many markets, including Australia. If your product is too expensive or doesn’t match its perceived value, customers may turn away. Lowering the price can open the market to a wider audience.
Example:
Some companies capture markets by offering high-specification products at significantly lower prices than competitors. Operational efficiency often enables these savings, allowing businesses to grow their market share.
5. Reduce Uncertainty with Prior Experience
Customers can hesitate to buy when they’re uncertain about what they’re getting. You can reduce that uncertainty by providing a prior experience or demo of your product.
Example:
In Australia’s booming real estate market, virtual reality (VR) is increasingly being used to give prospective buyers a virtual tour of properties. This allows them to visualise their future home and feel more confident in their purchase decision.
6. Focus on Priority
Often, businesses get bogged down in non-core activities, reducing their focus on growth areas. By encouraging your customers to focus on high-growth areas, you add value.
Example:
Many companies outsource manufacturing to focus on innovation and design—areas where they truly excel. By concentrating on strengths, businesses maintain a competitive edge and achieve a premium price point.
7. Finding Special Skilled Services
There are numerous services customers can’t or don’t want to handle themselves, from plumbing to beauty services. Offering a way for customers to access these services easily can be a game-changer.
Example:
Marketplaces for skilled services allow customers to book anything from a haircut to appliance repair from their phone. Creating platforms that connect customers to specialised services increases convenience and trust.
8. Vendor Management Services
Managing multiple vendors is often a hassle for businesses. Simplifying this process can create a valuable solution.
Example:
Platforms in Australia allow users to find, compare, and hire trusted tradespeople. This reduces the hassle of managing various vendors and guarantees a smooth process.
9. Providing Expensive Equipment on Demand
Some projects require specialised equipment that’s too expensive for customers to buy outright. Offering these on a rental basis saves them money and effort.
Example:
For construction projects, renting out machinery like excavators or bulldozers is often a more economical solution than purchasing outright. Businesses that provide this service enjoy steady demand and loyalty from customers.
10. Solving Daily Operational Inconveniences
Day-to-day operations are filled with minor hassles that, when solved, can greatly improve customer satisfaction.
Example:
Changing a bottle design from glass to squeezable plastic can make a significant difference in ease of use. Small innovations like these can result in significant customer satisfaction.
Ready to Solve Big Hassles?
Australian businesses have ample opportunities to identify their customers’ pain points and turn them into growth and profit. Whether it’s streamlining operations, enhancing customer experiences, or introducing innovative solutions, addressing big hassles can lead to big rewards.