Introduction
In today's crowded marketplace, standing out from the competition is more challenging than ever. Daniel Priestley's book "Oversubscribed" offers a fresh perspective on how businesses can create such high demand for their products or services that they become oversubscribed – with more customers than they can handle. This approach turns traditional marketing on its head, focusing on creating desire and scarcity rather than simply trying to sell to anyone and everyone.
The book explores various strategies for becoming oversubscribed, from finding niche markets to building strong customer relationships and leveraging the power of social proof. Priestley draws on real-world examples and provides actionable advice for businesses of all sizes looking to increase demand and create a loyal customer base.
The Power of Oversubscription
Priestley begins by explaining the concept of oversubscription and why it's so powerful in today's business landscape. When a company is oversubscribed, it means there's more demand for its products or services than it can supply. This creates a sense of scarcity and exclusivity that can drive even more demand.
The author argues that successful businesses focus on creating demand rather than just meeting existing demand. By doing so, they can control their pricing, choose their ideal customers, and create a sense of excitement around their brand.
One example Priestley uses is Apple's iPhone launches. Every time a new iPhone is released, there are long lines of people waiting to buy it, even before it's available in stores. This isn't a problem for Apple – it's a brilliant marketing strategy. The sight of eager customers camping out for days creates free publicity and reinforces the idea that iPhones are highly desirable products.
However, maintaining oversubscription isn't always easy. Markets can become saturated, and competition can increase. Priestley notes that in the 1980s, plastic surgery was an oversubscribed business with only a handful of doctors charging high fees. But as more doctors entered the field, prices had to be reduced to remain competitive.
Finding Your Niche
To become oversubscribed, Priestley suggests that businesses need to find their niche – a specific market segment where they can excel and build a loyal customer base. He uses the example of Moet & Chandon, makers of Dom Pérignon champagne. While there are many champagne brands, Moet & Chandon have positioned themselves as the ultimate luxury option, appealing to customers who want to impress and are willing to pay a premium.
Finding a niche allows businesses to focus their efforts and become known as the go-to option for a particular type of customer or need. This specialization can lead to higher prices, more loyal customers, and less direct competition.
Disrupting the Market
Priestley outlines three main ways businesses can disrupt their market and become oversubscribed:
Innovation: Creating a truly unique product or service that has no direct competition. The author uses the example of the iPod, which revolutionized the way people listened to music and had no real competitors when it was first released.
Convenience: Making an existing product or service more accessible or easier to use. Amazon is a prime example, offering a vast range of products that can be purchased with just one click and delivered quickly.
Price: Offering a quality product or service at a lower price than competitors. UNIQLO, the global clothing company, achieved this by making exclusive deals with suppliers to buy fabrics at wholesale prices, allowing them to sell quality clothes at lower prices.
Building Strong Customer Relationships
Once a business has found its niche and disrupted the market, Priestley emphasizes the importance of building strong relationships with customers. This can be done through various means, such as:
Contracts: Offering long-term contracts can lock in customers and create a stable relationship. Phone carriers often use this strategy, offering better deals for customers who sign up for longer contracts.
Exclusive experiences: Providing special treatment or unique experiences for customers can make them feel valued and increase loyalty. Priestley uses the example of the Chanel counter at Gallery Lafayette in Paris, where customers wait in line for one-on-one service, creating a sense of exclusivity and specialness.
Gathering and sharing customer stories: Collecting testimonials and success stories from satisfied customers can be a powerful tool for attracting new business. These stories can be shared through social media, videos, or other marketing channels.
Moving Beyond Traditional Marketing
Priestley argues that traditional advertising is becoming less effective in today's digital age. Instead, he suggests focusing on creating products and experiences that people will naturally want to talk about. This word-of-mouth marketing is more powerful and cost-effective than traditional advertising.
The author notes that people are more likely to trust recommendations from friends, family, or even strangers online than they are to believe corporate marketing messages. Therefore, businesses should focus on creating exceptional experiences that customers will want to share with others.
This approach can also help businesses expand into new areas. For example, if a company builds a loyal following for its music blog, it might be able to successfully launch a podcast or YouTube channel, leveraging its existing reputation and audience.
Creating Anticipation and Excitement
One key strategy Priestley discusses is the use of "business-to-customer signaling" to build anticipation and excitement for upcoming products or events. This involves giving customers advance notice of new releases or limited-edition items, creating a sense of exclusivity and urgency.
The Glastonbury Music Festival in England is used as an example of this strategy in action. The festival allows people to sign up for updates and a chance to buy advance tickets. They expertly tease the lineup of musicians throughout the year, building excitement until 350,000 subscribers are competing for just 120,000 early-bird tickets.
This approach not only creates excitement but also helps businesses gauge interest in upcoming products or events. By allowing customers to subscribe to updates for specific items, companies can get valuable insights into which products are likely to be most popular.
Engaging Customers with Valuable Content
Once a business has subscribers or followers, Priestley emphasizes the importance of keeping them engaged with valuable content. This could be in the form of newsletters, blog posts, or social media updates. The key is to provide information that is both entertaining and informative.
The author suggests following the 80-20 rule: 80% of content should be informative or educational, while 20% can be more entertaining or lighthearted. This balance helps maintain a professional image while still keeping customers engaged.
Priestley notes that people often spend significant time researching before making major purchases. By providing valuable information during this research phase, businesses can position themselves as experts and build trust with potential customers.
Practical Strategies for Becoming Oversubscribed
Throughout the book, Priestley offers numerous practical strategies for businesses looking to become oversubscribed. Here are some key tactics:
Focus on innovation: Constantly look for ways to improve your products or services, or create entirely new offerings that solve customer problems in unique ways.
Create scarcity: Limit the availability of your products or services to increase their perceived value and create a sense of urgency among customers.
Offer exceptional customer experiences: Go above and beyond to make your customers feel special and valued. This could involve personalized service, exclusive events, or unexpected perks.
Leverage social proof: Encourage satisfied customers to share their experiences and use their testimonials in your marketing efforts.
Build a community: Create opportunities for your customers to connect with each other, fostering a sense of belonging and loyalty to your brand.
Use content marketing effectively: Provide valuable, informative content that positions your business as an expert in your field and keeps customers engaged.
Create anticipation: Use teaser campaigns and early access offers to build excitement for new products or services.
Focus on a niche: Instead of trying to appeal to everyone, concentrate on becoming the go-to option for a specific type of customer or need.
Continuously gather feedback: Regularly ask for customer input and use it to improve your offerings and customer experience.
Stay adaptable: Be willing to pivot your strategy as market conditions change or new opportunities arise.
Case Studies and Examples
Throughout "Oversubscribed," Priestley uses numerous real-world examples to illustrate his points. Some notable case studies include:
Apple: The tech giant's product launches and ability to create desire for new devices are frequently cited as examples of successful oversubscription.
Moet & Chandon: The champagne maker's positioning as a luxury brand demonstrates the power of finding and dominating a niche market.
Amazon: The e-commerce giant's focus on convenience and customer service has disrupted multiple industries and created a loyal customer base.
UNIQLO: The clothing retailer's strategy of offering quality products at lower prices through strategic supplier relationships shows how price can be a disruptive factor.
Glastonbury Music Festival: The event's expert use of anticipation and scarcity to drive ticket sales illustrates how to create excitement and demand.
Gallery Lafayette's Chanel counter: This example shows how creating an exclusive, personalized experience can drive customer loyalty and word-of-mouth marketing.
These case studies provide concrete examples of the strategies Priestley discusses, helping readers understand how these concepts can be applied in various industries and contexts.
Overcoming Challenges
While the idea of becoming oversubscribed is appealing, Priestley acknowledges that it's not without challenges. He addresses several potential obstacles and how to overcome them:
Market saturation: As more businesses enter a market, it can become harder to stand out. Priestley suggests continual innovation and focusing on building strong customer relationships to maintain an edge.
Changing customer preferences: Tastes and trends can shift quickly. The author emphasizes the importance of staying connected with customers and being willing to adapt.
Scaling issues: As demand increases, businesses may struggle to maintain quality or personal touch. Priestley offers advice on how to scale effectively without losing what makes the business special.
Balancing exclusivity with growth: There's a fine line between creating scarcity and turning away too many potential customers. The book discusses how to strike this balance.
Maintaining excitement: Once a business becomes successful, it can be challenging to keep the same level of buzz and anticipation. Priestley provides strategies for keeping things fresh and exciting for long-term customers.
The Ethics of Oversubscription
Priestley also touches on the ethical considerations of creating artificial scarcity or manipulating demand. He argues that when done ethically, oversubscription can benefit both businesses and customers by ensuring high-quality products and services are available to those who value them most.
However, he cautions against using deceptive practices or creating false scarcity. The goal should be to genuinely create products and services that people desire, not to trick customers into buying something they don't need or want.
Applying Oversubscription to Different Business Models
While many of the examples in the book focus on product-based businesses or events, Priestley also discusses how the principles of oversubscription can be applied to service-based businesses, B2B companies, and even personal branding.
For service businesses, he suggests creating tiered offerings or limited-time packages to create scarcity. For B2B companies, he recommends focusing on becoming the go-to expert in a specific niche and using thought leadership content to build demand.
For individuals looking to boost their personal brand, Priestley advises focusing on developing a unique skill set or perspective and consistently sharing valuable insights with a growing audience.
The Role of Technology in Oversubscription
Throughout the book, Priestley emphasizes the important role that technology plays in modern oversubscription strategies. He discusses how social media, email marketing, customer relationship management (CRM) systems, and other digital tools can be used to:
- Build and maintain relationships with customers
- Create and distribute valuable content
- Generate buzz and anticipation for new offerings
- Gather and analyze customer data
- Facilitate word-of-mouth marketing
- Manage waitlists and exclusive offers
He encourages businesses to embrace these technologies but also warns against relying on them too heavily at the expense of personal touch and genuine human connection.
The Future of Oversubscription
In the final chapters of the book, Priestley looks to the future of business and marketing, predicting that the principles of oversubscription will become increasingly important in a world of abundant choice and information.
He suggests that as artificial intelligence and automation become more prevalent, businesses that can create genuine human connections and evoke real emotions will stand out. The ability to create desire, build anticipation, and deliver exceptional experiences will be key differentiators in an increasingly crowded marketplace.
Priestley also touches on the potential for oversubscription principles to be applied to solving social and environmental problems, suggesting that creating desire for sustainable products or services could have a positive impact beyond just business success.
Conclusion
"Oversubscribed" presents a compelling argument for a new approach to business and marketing. By focusing on creating desire and scarcity rather than simply meeting existing demand, Priestley suggests that businesses can achieve greater success and sustainability.
The book offers a wealth of practical strategies and real-world examples, making it a valuable resource for entrepreneurs, marketers, and business leaders looking to stand out in a crowded marketplace. While becoming oversubscribed may not be easy, Priestley provides a roadmap for businesses willing to innovate, focus on customer relationships, and create genuine value.
Ultimately, "Oversubscribed" is about more than just selling products or services – it's about creating experiences and offerings that people genuinely desire and are willing to wait for. By following the principles outlined in this book, businesses can not only increase their profitability but also build lasting relationships with customers and create a brand that stands the test of time.
As markets continue to evolve and competition intensifies, the ideas presented in "Oversubscribed" offer a fresh perspective on how businesses can thrive by creating their own demand rather than simply competing for existing customers. Whether you're running a small startup or managing a large corporation, the strategies in this book provide food for thought and actionable ideas for becoming the kind of business that customers can't wait to engage with.