Nobody Cares About Your Product
Mark Stiving, Ph.D.
I help investors convince their portfolio companies to raise prices ... more | Founder @ Impact Pricing | Author, Speaker, Pricing Expert
One sales manager told me,?“Our salespeople show up and throw up.”??What he was saying is their salespeople have the product pitch down.?They know the company and the products well.?Yet talking about the company and the product isn’t enough to win deals.
The sad truth is?nobody cares?about your product.?Your buyers and customers care about what your product can?do?for them.?What problems will it help them solve??What results might they achieve?
This distinction is clearest when differentiating experts from non-experts.?Experts buy?features?because they can translate features into expected benefits.?Non-experts buy?benefits.?For example, you’re likely an expert at buying computers.?You’ve probably bought several, used one almost every day of your life.?You know quite a bit. When you go to the computer store to buy a new one, what would you think if the salesperson said to you, “This one does email really well and holds all of your pictures.”?You’d be thinking this salesperson is an idiot.?You want to know the amount of memory, the size of the hard disk, the speed of the processor.?Because of your experience with computers, you know intuitively what these features mean in terms of performance.
Now imagine you’ve never used a computer in your life.?You walk into the computer store and the salesperson says, “This one has a terabyte of SSD, Quad Intel processors running at one gigahertz, and a fourteen-inch display.”?You’d be thinking, “What????”?Instead, you want someone to tell you what you can?do?with it.?What problems will it solve??What results you should expect.
Here’s the difference.?Experts can see a list of product features and translate them into value?on their own.?Non-experts can’t.?Non-experts rely on?someone else?to help them translate features into benefits.?That’s where salespeople come in.
Now for a very important question:??Are your buyers experts or non-experts?
They’re probably non-experts.?After all, if your buyers were already experts, then what service do you provide as a salesperson??They can read the spec sheet without you.
A salesperson’s most important role is to help non-experts understand the value their product provides.
Forrester tells us, “Sixty-two percent of vendor salespeople are knowledgeable about their company and its products, but only 22% understand the buyers’ business issues and where they can help.”?This means your salespeople probably know your products, but they aren’t selling value.
I was guilty of this as well. Many years ago, when I was in sales, my sales technique was listing a bunch of our capabilities to a potential buyer and watching their eyes, just hoping that something I said would resonate.?I hoped they would stop me and say, “That’s really important to me.”?Yet it rarely happened.?If your technique is even close to mine, we’re?showing up and throwing up.?We’re talking about our products.?We’re hoping the buyer can translate our features into their value.
Great, caring, consultative salespeople take the time to help the client determine the value their product can provide.?Buyers don’t care about your product.?They care about what problems you solve and what results they might expect.??
What’s your experience??And does this post have anything to do with pricing???
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Now, go make an impact!
Chief Marketing & Customer Experience Officer | Business Leader | Communications Specialist | Pricing Professional
1 年Mark - It has EVERYTHING to do with pricing. An interesting question is if the experts will value (pay more for) features or the non-experts will value (pay more for) benefits. My experience is that the non-expert WTP is typically higher on balance. But, I imagine it is worth analysis for each of our specific businesses.
Simply creating $MM's of profit and $B's of equity with 80/20
1 年Exercise the Platinum Rule, not the Golden Rule.?The Golden Rule says do unto others as you would have unto you, but the Platinum Rule is about doing unto others as they prefer.?Oftentimes what we think is a logically compelling pitch (based on our product knowledge) is meaningless to the customer.?My Dad taught me this on a fishing trip to the river.?You don’t bait the hook with what you like, but what the fish like.??
Engineer High-ROI Growth & Brand Loyalty | ??Consumer Journey Insights for CPG & Electronics | Founder @ Khatanalytics | Ex-VP, Samsung, Unilever, Nielsen
1 年Thanks Mark, great perspective on selling using Benefits vs Features based on the expertise of the buyer. ? At the end of the day, everyone is ultimately buying for the "benefit" a product provides, but what drives confidence in what is actually beneficial will indeed vary based on their personal expertise (and you share some great examples). ? In my experience, when selling a more technical product to Consumers at retail … the messaging at shelf (whether physical or digital)?should ideally provide both … but in a certain order: 1?? talk first about the Benefit or what the Consumer actually gets, and 2?? then underscore (sub-bullet) it with the Features / specs that enable it (these are proof points) ? ?? Your question on what does this have to do with pricing? ?? The higher the perceived benefit, the higher you should be able to charge … right? Thanks for sharing!
Finance:Management Accounting:Product Costing
1 年Nice piece Mark! "Experts" and "non experts", very interesting to learn how we make buying decisions
Pricing & Revenue Management
1 年Thanks for the article! I think it also reflects how critical segmentation is.