The term ‘under commit – over deliver’ may sound familiar to many of us. Well, according to me, this strategy is being used by many of us in our personal lives too. However, this strategy is actually used by many businesses as a way of acquiring more customer loyalty and profitability. Many well – known companies such as Apple and Zomato have used this particular strategy to grow and develop their businesses further. However, the bigger question here is – should startups also use the under commit and over deliver strategy? Well, some would say yes and some would say no. This is because everything has a positive as well as a negative side.
If we think about the positive side, this particular strategy raises the expectations of the customers as a result of which the business is able to grow and flourish. Well, if you forecast the bottom of a particular range but beat that very number later on then you will definitely be able to earn applauds, as simple as that. This is very much similar to a student forecasting about getting 80% in the exams but end up getting 90%. Sounds great, doesn’t it?
Under committing and over delivering strategy helps in keeping the customers fully satisfied and loyal too. Even if their expectations get high later on, the company can take its own sweet time and deliver the products and services at a normal pace without any hassle or hurry. Reason? Read the first line of the paragraph again!
However, as it has already been mentioned before, everything has a positive as well as a negative side. So, under commit and over deliver strategies have their own disadvantages too. So, the worst part about this strategy is that you have to communicate lower level of product and service benefits as a result of which your business might attract very less customers. Why? This is because they are not aware about your strategy. Well, you can’t keep on telling everyone about your business strategies right? Another disadvantage of this strategy is the higher amount of customer acquisition costs.
Now, coming to the main question whether startups should adopt the under commit and over deliver strategy or not, it will totally depend on their situation and approach towards their businesses. Well, there is no denying about the fact that this strategy may prove to be profitable for some but would incur losses for a few others. So, it is best recommended to go through all the pros and cons of this strategy in order to decide whether it will be profitable in the long run or not.
Startup founders and team members tend to run their business in a careful manner. They are very much conscious about each and every step which they are taking in the course of their business. So, it will not be difficult for them to decide whether they should adopt such a strategy for growing their business or not.