Starbucks is best known for its exceptional coffee and roastery stockpile, but the quintessential Starbucks experience doesn’t end there. As the brand itself states, “It’s more than just coffee,” Starbucks offers a range of enhanced products, including free WiFi access, a relaxing atmosphere, great music, charging sockets and comfortable lounge furniture.
In fact, customers may simply visit a nearby Starbucks to enjoy value-added amenities and not necessarily purchase coffee, the company’s flagship product.
So what exactly is an extension product? why is that important? And how will it help your business?
What is an extension product?
An extension product is an extension offering that contributes to the definition of the perceived value of an existing product, goods, or service.
These enhanced features can come in the form of discount offers, product warranties, refunds, free shipping, free samples, and more.
Simply put, it is the benefits that customers receive that add value to their purchases. For example, when a customer buys a laptop, they get a free laptop carry bag. This “add-on” isn’t essential to the laptop’s primary benefits, but it can help customers easily carry their laptop around, further increasing the value of their purchase.
Importance of extended products
Enhanced products play a key role in achieving customer satisfaction and loyalty. The right mix of core and extension products allows companies to differentiate their products from their competitors.
For example, in a market where all airlines offer the same core service, which is transportation from one point to another, enhanced services such as in-flight dining and entertainment can help airlines differentiate themselves and attract more customers. Helps attract.
Extended product example
Businesses can improve their customers’ buying experience by offering innovative products. Here are some examples that illustrate the same.
Spotify
Spotify’s core product is a music streaming service, but the company is adding additional features to its service to set it apart from its competitors. As Spotify Wrapped, we provide an end-of-year review of your listening history. In addition to this, we also have Instagram partnerships and podcasts that form part of our extended offering.
apple iphone
The Apple iPhone is a good example of an extended product. Apple’s main product is its iconic smartphone, but it adds many features to differentiate it from other players in the market. This includes features such as iCloud, Face ID and 3D Touch, making the customer experience unique.
Extension product type
There are many ways to enhance your offering. The most common types of product augmentation are:
- brand name: A successful brand image easily differentiates your business from the competition. For example, if customers are asked to choose between ripped jeans from Zara and ripped jeans from a smaller, newer brand, they are more likely to choose Zara. That’s because Zara is recognized worldwide for low cost, fast and high quality fashion. The brand lives up to its title of ‘affordable luxury’ and has established itself as a reliable and customer-oriented business among its target audience.
- Product warranty: This offering generally applies to electronics and gadgets. Companies use this product extension to assure the purchaser that the product is of high quality and commit to correcting any issues according to the specified warranty terms.
- Free delivery: Brands in various industries use this service. For example, food delivery apps and restaurant chains offer free delivery when customers meet or exceed a minimum order value.
- Installation and configuration: Companies may offer to provide technicians who can install or configure their products for free. For example, a company that sells electronics can send a technician to install a new TV or air conditioner for a customer.
- update: Businesses need to continuously upgrade their existing products to delight and surprise their users. For example, Apple is constantly upgrading existing iPhone models in terms of shape, size, color, software updates, camera quality, and more.
- Refund: The company also offers a “refund option” if the client is not satisfied with the purchase. This further helps build trust and customer loyalty.
- Free samples: Cosmetic stores often offer free samples when they pay a certain amount, adding value to their clients’ purchases. You can also offer free samples of your products as they are released to attract buyers’ attention and increase sales.
- Free trial: Many online streaming services, such as Amazon Prime Video, Hulu, and Apple TV Plus, offer free trial periods that let customers know if the provider offers everything they’re looking for before spending a cent. can be confirmed.
Advantages of extended products
The purpose of providing added value is to benefit both the seller and the buyer. Focusing on the latter, here’s how companies can benefit from product expansion.
increase revenue streams
Product enhancements allow a company or business to expand and grow. For example, Nike’s remarkable success in the footwear industry allowed the company to incorporate athleisure and sporting goods, further expanding its business.
Build customer loyalty
Brands must constantly upgrade their existing products so that their clients always feel valued. Satisfied customers are more likely to purchase or recommend your product to others. Loyal customers also personally champion the brand’s reputation and may choose to become lifelong customers, further enhancing the brand’s image.
growing demand
Loyal customers are more likely to recommend you to family and friends based on their personal experience, thus helping drive more business and generate more leads.
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Avid reader, full-time writer, and all things purple enthusiast. Riya is steeped in her entrepreneurial spirit and forays into the startup industry through her expressive writing. When she’s not working, she tunes in to music, watches historical dramas, eats sushi, and strokes her cat.