A Surprising Way to Achieve Price Competitiveness

How can a company liberate itself from the death spiral of product commoditization?

Executive Summary

Competing on price is generally a losing proposition—and a very exhausting way to run a business. But when a market matures and customers start focusing on price, what's a business to do? The answer, as counterintuitive as it may seem, is to deliver a better customer experience, says Watermark Consulting's Jon Picoult. Here Picoult urges insurers to follow the examples of Nike, Starbucks and Apple—companies that broke free from the commodity quicksand by creating an experience their target market was willing to pay more for.

Competing on price is generally a losing proposition—and a very exhausting way to run a business. But when a market matures and customers start focusing on price, what’s a business to do? Executive SummaryCompeting on price is generally a losing proposition—and a very exhausting way to run a business. But when a market matures and customers start focusing on price, what’s a business to do? The answer, as counterintuitive as it may seem, is to deliver a better customer experience, says Watermark Consulting’s Jon Picoult.

Here Picoult urges insurers to follow the examples of Nike, Starbucks and Apple—companies that broke free from the commodity quicksand by creating an experience their target market was willing to pay more for.