“Buyers don’t buy products, they buy the outcomes the products deliver.”
Darrell Amy, Revenue Growth Engine
For those who are obsessed with their products, the superiority of their business, or the beauty of their brand, this statement contains a hard pill to swallow. As great as your products are, as experienced as your team is, and as responsive your customer service may be, that's not what buyers are buying. People do not buy your products, they buy the outcomes your products create.
Bob Moesta explores this principle in Demand-Side Sales 101. He shares the story of how he stopped trying to push his product on customers. Instead, he worked to understand the actual outcomes the customer desired. Then he engineered the buying process to satisfy the customer’s demand.
Buyers have a “job to be done”. That is why they buy a product. Period.
The “Jobs to be Done” theory (pioneered by Moesta and Clayton Christiansen one of my...
Looking for creative ways to keep your ideal clients happy, especially during the frustrating challenges that we currently face, is smart business. According to recent Bain & Company research, increasing customer retention by 5% increases profit by 25% to upwards of 95% depending on your industry.
Wow! That is some compelling data.
In the Bain & Company report, Fred Reichheld says: “Systematically rank all of your customer acquisition campaigns on the basis of their yield of loyal customers. Shift resources towards programs that attract the richest mix of loyal customers.” He goes on to conclude that many firms are wasting half their marketing expenses on disloyal customers who will never stick around long enough to pay back the acquisition investment!
What could you do to increase client loyalty and thus improve your profitability? Here are some ideas to consider.
The first step is to identify your Ideal Clients. As Mike...
The Big Idea: Pay attention to client sacrifice if you want to increase your competitive advantage.
In a tight economy where buyers tend to pay closer attention to where they allocate their budget companies, must consider how they add value. Organizations that get this right differentiate from their competition and build client loyalty, leading to increased revenue and profit.
How do you build your competitive advantage? Typically, we think of our product or service. What features do we offer? What are the advantages of these features? And, how does the client benefit?
While these questions are important, the reality is that product differentiation is at best short-lived. Service differentiation can be a challenge as well, as most companies offer similar types of services.
So where do you go to create a sustainable competitive advantage?
In the book, The Experience Economy: Competing For Customer Time, Attention, and Money, authors Pine and Gilmore assert the next frontier of...
“What makes you different?” Every sales professional and marketer gets confronted with this question multiple times a day. The ability to answer this question well forms the difference between winning and losing, profitability and unprofitability.
Here’s the challenge: you’re not different. Is that a fair statement? Probably not. But in the eyes of your prospects and clients, unless you take intentional action to create differentiation, you are not different.
Without differentiation, the best case scenario is that you win on price. The worst case scenario is the you lose to a competitor that creates differentiation. Even worse, what if you are losing to a competitor that creates differentation and charges more! Talk about salt in a wound.
How can you create differentiation? Let's consider three options that don't work for most companies.
Many companies I serve sell products that they don’t manufacture. From a product...