What is Hassle Premium?

“Hassle Premium” refers to the concept of addressing significant pain points or problems faced by customers and reaping substantial gains or profits from solving those issues. The term “hassle” signifies the difficulties or challenges experienced by customers, while “premium” denotes the benefits or profits obtained from resolving those customer pain points.

The larger the hassle that is successfully resolved, the greater the premium that can be achieved. To implement this concept, it is important to first identify an unresolved hassle in the market and recognize the specific customer problem it presents. Once the hassle is identified, the next step involves devising strategies and techniques that compel customers to rely on your solution for addressing their problem.

Takes too Much Time to Complete

Is your customer spending an excessive amount of time in the process of purchasing your product or service? If so, it’s crucial to identify the specific stages in their buying journey where delays occur and work on streamlining the process to minimize the time required for purchase. By effectively reducing the time it takes for your customer to complete a purchase, you can enhance their overall experience and strengthen their connection with your brand.

For instance, online platforms such as magicbricks.com and 99acres.com have revolutionized the property buying process, enabling users to conduct nearly 95% of the property filtering and selection online. Prospective buyers can now customize their property search based on parameters like size, location, and price within a mere 10-15 minutes, significantly expediting the initial stages of the buying process. Following this, a physical visit to the chosen property is the only step left before making the purchase.

Another example is lenskart.com, which offers a convenient home service for eye testing. Their representative will visit your home or office to conduct the eye examination, present a variety of spectacle designs for you to choose from, and subsequently deliver the selected spectacles to your doorstep the very next day. This personalized and efficient service eliminates the need for customers to visit a physical store for their eyewear needs, saving them valuable time and effort.

Reduce Your Customer Effort

Efforts to reduce customer effort should be a top priority for any business. When customers face unnecessary obstacles when trying to purchase a product or service, it can lead to frustration and dissatisfaction. By identifying and addressing these pain points, businesses can significantly improve the overall customer experience.

For instance, consider the case of the IRCTC Ticket Booking System. Previously, individuals had to endure long, tiring queues at railway stations to secure a ticket. However, with the introduction of online ticketing by IRCTC, the process of booking a ticket has been transformed into a quick and convenient task. Customers can now easily book tickets online or through the IRCTC mobile app, eliminating the need to physically visit a station.

Similarly, in the taxi service industry, customers used to encounter various challenges when trying to hire a taxi. Limited availability of taxis and arbitrary pricing by cab drivers often resulted in inconvenience and financial strain for customers. The entry of OLA and UBER revolutionized the taxi booking process, making it fast, easy, and comfortable. This not only improved the customer experience but also led to a significant increase in the number of people opting for car travel.

By examining these examples, businesses can gain valuable insights into the importance of minimizing customer effort and the positive impact it can have on customer satisfaction and business growth.

Reduce the Complexity, Uncertainty or Confusion

The wide range of available products and services has led to increased confusion and uncertainty among consumers. For example, prior to the existence of Policy Bazaar, people struggled to determine which insurance policy best suited their needs and budget. Additionally, purchasing an insurance product required complex financial calculations that many consumers found daunting. However, Policy Bazaar addressed these challenges by providing a platform for neutral comparison of all insurance policies. This not only eliminated confusion and uncertainty but also made the process of purchasing insurance more convenient for consumers.

Can You Reduce Price too Much

When considering the possibility of reducing the price of a product, it’s important to recognize the potential impact on market size. Lowering the price of a product that was previously priced high can lead to an expansion of the customer base.

For instance, Xiaomi strategically addressed the price sensitivity of the Indian market by offering high-quality specifications at a lower price point. This approach enabled Xiaomi to secure the largest market share in India, a feat that its competitors were unable to replicate.

Similarly, OYO Hotels disrupted the hospitality industry by providing a 4-star hotel experience at the price point of 1-star and 2-star accommodations. This means that consumers could access hotel rooms valued at Rs 4000 for only Rs 1800-2000, effectively delivering luxury at an affordable price.

Reduce Uncertainty with the Prior Experience

To alleviate customer uncertainty, providing prior experience of your product or service can be highly effective. For instance, when engaging a wedding organizer, they may offer a virtual reality experience of the planned wedding, showcasing the decorations, stage setup, lighting, and more. This immersive experience can eliminate any doubts or uncertainties the customer may have about the event. Similarly, in the real estate industry, builders now utilize virtual reality or 3D animation to offer potential buyers a realistic experience of their future flat, helping them visualize the space and make confident purchasing decisions.

Focus on Priority

It’s important to keep in mind that your customer may have numerous priorities, which may be divided into smaller tasks due to their workload. You should encourage your customer to focus on activities that contribute the most to their growth. By doing so, you are essentially helping them avoid non-growth activities.

For instance, let’s take Apple Inc. as an example. Instead of manufacturing its own mobile devices, Apple has chosen to outsource this aspect of its business to the Chinese company Foxconn. This strategic decision allows Apple to direct all its efforts towards research and development, marketing, sales, design, and innovation. By focusing on these areas, Apple is able to achieve significant growth and success.

Finding Special Skilled Service

There are numerous skilled services that customers may require but are unable to perform themselves. These services encompass a wide range of tasks such as carpentry, plumbing, electrical work, and beauty services, among others. Bridging this gap and assisting customers in finding specialized skilled services can alleviate a significant hassle.

For instance, Urban Clap, which is India’s largest service marketplace, has emerged as a comprehensive solution for all such skilled services. It has notably simplified the lives of people by offering a one-stop platform for accessing these services. Upon requesting a specific service, customers can expect to have skilled professionals arrive at their doorstep within 2 hours, eliminating any potential inconvenience.

Vendor Management Services

Vendor management services are essential for businesses looking to find reliable vendors for various needs such as air conditioner fitment, photo frames, furniture, and more. Despite being experts in their respective fields, businesses often struggle to find suitable Business to Business (B2B) vendors. To address this challenge, companies like Justdial, Sulekha.com, Indiamart, and tradeindia.com have emerged as key players in providing B2B services. These companies have developed platforms that serve as comprehensive marketplaces, allowing businesses to easily discover and connect with a wide range of vendors. As a result, they have effectively streamlined the process of vendor management, providing convenience and efficiency for businesses seeking reliable B2B services.

Required Expensive Equipment or Specialized Resources

When considering project requirements, it’s important to take into account the need for expensive equipment or specialized resources. Investing in highly expensive machinery for a small project or a short-term endeavor may not be feasible. For instance, construction projects such as building a house often require the use of costly equipment like Earth Movers, Road Rollers, Backhoe Loaders, and Excavators. Recognizing this challenge, as a business owner, you decided to offer a ‘Specialized Equipment Rental Service’ to provide customers with access to these resources without the burden of upfront costs. This initiative successfully alleviated a major concern for your customers.

Furthermore, instead of expending valuable time and resources on the arduous tasks of recruiting and training temporary staff, you opted to engage the services of a Recruitment Agency to hire contractual manpower for short-term assignments. This strategic decision not only saved time but also ensured that the required skills and expertise were readily available when needed.

Daily Operational Convenience

The concept of daily operational convenience involves recognizing and addressing the specific challenges and difficulties faced by customers in their everyday lives. For example, women often encounter inconvenience when using public toilets at locations such as railway stations. To tackle this issue, a group of students at IIT Delhi developed a Stand and Pee device priced at just Rs 10, providing a practical solution to a common problem. Another instance is the redesign of the Heinz Tomato Ketchup bottle to make it easier to dispense the sauce. This redesign led to the creation of the Pichkoo Sauce, which offered a more convenient application method. By identifying and resolving such inconveniences, businesses have the potential to capture a larger market share or command a premium price for their products. The degree of inconvenience directly correlates with the potential for a higher premium or a larger market share.