SWTE’s failure came down to a failure of ours, to communicate. You cannot communicate the value proposition of an offer until you know who you’re communicating with, who gets the most value from it, and why?
We got it wrong,
… knowing who that consumer was and what was in their mind.
How to position the SWTE software in it (their mind). Our mistake with SWTE was that our marketing (and advertising) strategy targeted the wrong consumer.
(campus accommodation managers)
This decision came about because the Australian Student Accommodation Associations president was on our board of directors.
Our strategy was to position the product as an alternative to existing campus accommodation management software, with the one “game changer” module.
(a module that was to be our unique selling proposition)
"SWTE Rewards"
A student rewards program that issued points to students who cleaned their own common areas, within accommodation campuses. Points they could “cash-in” for discounts nationally (from retailers targeting the student market), using their “SWTE Rewards” card.
What we “didn’t” account for, although accommodation campus managers decided what management software to use, was that it was staff who used it day-to-day.
That lowly paid staff comfortable on $45,000 dollars per year, would resist such a “big” change to their daily routines the way they did. Implementing our software system and campus cleaning program in trials was a pain in their arse for what?
We had thought long & hard how to position our brand into the mind of a campus manager, and students. But not the administration staff who had relationships with cleaning staff, whose jobs were at risk should our new program succeeded.
What we learned (after it was too late) was that staff support for such a big change in software was paramount to the campus manager's decision. If staff are not 100% behind it, the
manager will not adopt it.
Our advertising strategy (as good as the creative was) positioned our product incorrectly, into the minds of the wrong consumer.
It didn’t matter how good our advertising strategy was or that we were first to market with a new and innovative idea and product.
Our positioning strategy was “WRONG”.
This “start-up” was never going to fly high.
With the benefit of hindsight and many hours of contemplation since, this is how we should have positioned this brand:
“SWTE Rewards”
Frequent Fliers for House Proud Students
Our software “should-not” have had any accommodation management modules. Our marketing strategy “should-have” been to focus on a “student cleaning rewards” program. Our target market should have been students (only).
Had SWTE.com been positioned as a web application “for-students”, one that easily plugged into existing student accommodation management software.
If our advertising strategy to students was on the money, student demand would have carried us into different student accommodation properties throughout the world. Halls of residence on campus and private sector lodgings.
Administration staff would have little say in the matter because it would not have effected them.
1. Students wanting the right to clean shared living common areas for reward points ($$) would sell it. We would not have needed a sales team.
What accommodation manager or landlord is going to say no to their lodgers wanting to clean their asset for them, if they didn’t have to pay for it?
2. Local businesses would have funded the reward points currency through advertising.
What local business owner would not offer students a discount in return for getting their message into the middle of a university campus?
3. This was a proven model because it was already working locally in Sleeping With The Enemies business with 500 lodgers.
SWTE Limited would be worth 9 figures today had our team of expensive hot shots not screwed up our positioning strategy.
Next weeks [SMARTER] strategies eMail is all about positioning!
Be interested. Not interesting!
Simon U Ford
Engage Smarter
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