When talking to a customer that wants to work with us, I first try to find the answer to the question above. I need to understand why buyers choose them. What can they offer to show their competitive advantage.
If the answer is based on the price, it soon becomes clear that we don’t have much to work with. Our contribution would only make them less competitive. Unless we cut down on their manpower by automating marketing communication and sales process, of course.
Our services are not intended for those who see their existence within the red ocean strategies. If your competitive advantage is based solely on the lowest price, you should concentrate on cutting expenses. This is the only thing that will increase your lifespan. Recommendations and encouraging recommendations should be your only strategy, so invest into great customer service. Grow only as much as you can from recommendations by satisfied customers. Acquiring customers through other means might be more successful, but it increases the cost of acquisition, so you have to figure out if you can afford it.
If your business comes from the fact that you do things that others cannot do, you’re in danger that no one will need your service/product. You will need to invest a lot to create a need for your product. First you need to invest in raising awareness of the problem that your product solves and later in convincing customers that your solution provides a better approach compared to competitive approaches to solving the same problem.The essence of every entrepreneurial initiative is finding a market to create a temporary monopoly. Click To Tweet
If you have a solution for a problem that the market is aware of, yet no one managed to solve it yet, first find investors that will be able to follow your needs for expanding your business. This will be key for your global success. If your opportunity is recognized by competitors whose operations are better prepared to handle it, they will overtake you. It won’t matter that you were the innovators. Followers sometimes overtake those they once followed, because they were better prepared. They are sometimes able to remove obstacles that innovators didn’t recognize or were unable to solve.
The essence of every entrepreneurial initiative is finding a new market for a product and creating a temporary monopoly. Being able to do things that others can’t do. Or at least not as successfully. If that is a good enough reason for buying from you, the challenge that your marketing faces is relatively clear. The challenge that your product development faces is clear as well – you want to extend your temporary monopoly for as long as you can.
The answer to “Why should buyers buy from you?” really is crucial. Click To Tweet
All too often we meet companies that are confused when I ask them “Why should buyers buy from you?” at the beginning of our introductory meeting. I believe that the answer to that question is really crucial if the purpose of your visit is preparing a Customer Engagement Plan. More and more often I realize that our outside perspective can significantly impact the product development and the business model of our customers. If you don’t know exactly why customers should buy from you, you’ve probably found us too late. Not too late for preparing a customer engagement plan, but too late for your product development.