In this article, we’ll cover the definition of an augmented product and its examples. Let’s find out how you can win by offering augmented products to customers.
What is the definition of augment product
To begin with, we can define augmented product as any product with additional items, features, or services. This means that a buyer gets something more than the basic product, without extra pay. So, the customer enjoys the added value and becomes loyal to the brand that sells augmented products.
At the same time, businesses have some other reasons to use this marketing technique. The augmented product concept is based on the theory of 3 versions of any good:
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Core product.
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Actual product.
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Augmented product.
The first one is the good itself, without package, brand, or instruction. The second one is a product with a unique design, branded box, or other elements. These two versions should meet customers’ expectations, while the augmented product exceeds them. It has unexpected or unusual extra features that help to win the competition by offering something special to the customer.
It’s necessary to emphasize that augmented service or product doesn’t change the product itself. But it has a great impact on the audience’s motivation to make a purchase and gives the brand an opportunity to set higher prices.
Benefits of an augmented product
You can find the major characteristics of an augmented product below.
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It helps the product stand out from similar ones by other players on the market.
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Product augmentation doesn’t affect the product itself. On the other hand, it adds specific value to the product that is important to the customer.
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Brands and businesses that give additional services or items for the buyers can sell their products at higher prices.
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It gives brands a competitive advantage that helps businesses to survive and scale on the market.
So, let’s see how it works in practice. Imagine, we’re going to buy a laptop. The core product is a machine that helps me to connect to the Internet, use different programs, type text or code. The actual product is a specific model that has certain characteristics and meets my expectations. For example, MacBook Pro. In this case, product augmentation is the free delivery or the one-year limited warranty. The scheme is a win-win both for the brand and the customer. The thing is that the augmentation costs shouldn’t be more than the unit economics costs.
As you can see, the goal of providing extra value for the customer is both to satisfy the buyer and receive a higher margin or get a bigger market share.
Examples of augmented products
Given the product augmentation strategy is quite fruitful for companies, we can find it in various markets and business domains. Here you can see some examples with descriptions and explanations:
Free delivery
A very simple and popular way of providing augmented items for the target audience. It is widely used by stores that sell expensive goods, like smartphones and computers, household appliances, furniture, or other products by premium brands. Many eCommerce sites or Instagram stores also offer free delivery for those who make a purchase that costs a fixed price or higher. It’s also a trick to stimulate customers to spend more money. At the same time, the territory of free delivery usually isn’t very big and almost never is applicable for buyers that live abroad. It’s limited by city, region, or country.
Product warranty
Also a very common method of giving customers extra value without almost any expenses for the brand. The company makes a promise to fix or exchange the product if it breaks down over one or several years. The period of time is always fixed in the documents. When you buy a laptop or smartphone, or even some accessories for them, you get such an augmented product.
Updates
Companies focused on online services, selling licensed software, or unique content, have a specific type of product augmentation. They make updates for their users for free, which makes the audience brand lovers and stimulates them to continue their subscription or recommend it for family, colleagues, and friends.
Product trials
An effective way to get more clients is to let them try out your service for free. So, many websites and online tools use this method. They ask users to register with their credit card information and start a trial period. It can be an online movie theater, an app for reading books, cycling, or photo editing. After 3, 7, or 10 days of the trial period, the money for the subscription can be charged from the credit card automatically. The fixed time period of free usage can be up to several months, so many people can even forget to turn down the service and unsubscribe. So, you should be attentive to such marketing tricks.
Installation
Many users enjoy the opportunity of free installation services that help to adjust a new Wi-Fi router, computer, or another device. It’s convenient to the customer and doesn’t require super efforts from the companies. The staff can also answer all questions about using a new purchase, its peculiarities, or safety arrangements.
Refund
The most responsible brands and stores offer money refunds for clients that were disappointed by the product after purchase. The refund usually can be provided in a restricted list of cases. It may be full or partial and requires a check or other documents from the customer. Such action on the augmented product level may cause some extra costs for the company but has a very positive impact on its reputation and builds trusting relationships with the target audience.
As for the other ways of creating extra value for the clients, you can notice sweets or branded postcards that are given with a dress or jewelry. Another example is accessories, offered together with a new laptop. The methods of product augmentation could be very creative. They depend on business’s possibilities and the interests of their customers.
