Solving the "Customer-In" vs "Vendor-Out" Conundrum
Marketoonist - Tom Fishburne

Solving the "Customer-In" vs "Vendor-Out" Conundrum

Earlier today I had a brief email exchange with my longtime colleague Geoffrey Moore on a question that has not only perplexed me for years but that appears to have become more, rather than less, acute over time. This exchange was occasioned by Geoffrey's latest LinkedIn post on Rethinking the Customer Journey (https://lnkd.in/gkmzuPUW).

In his post, Geoffrey offers a stark reminder that much of the marketing literature today that discusses the customer's buying journey misses the mark, because in many or even most cases, what marketers and sales teams present to prospects and customers is a poorly disguised vendor journey that more often than not will alienate rather than engage the listener.

The question I raised with Geoffrey is this: Why do CEOs, marketers and salespeople find it so hard - even impossible in many cases - to adopt a customer-in perspective in their literature, their sales pitches, and consequently their allocation of resources to close deals, implement their products and services, and ensure that their customers stay with them?

After all, there is an increasingly large body of literature these days preaching about how best to engage customers using customer-in thinking. Geoffrey makes the point that "financial metrics inevitably predispose one to think inside out rather than outside in because everyone is trying to 'make the number'.”? He goes on to say: "This gets particularly strong when either the category is flattening and margins are commoditizing or when the macro economy is flagging and companies are not making plan".

As one who has authored a number of posts in recent years on this broad issue of customer-in marketing, sales, and customer success, and also worked with dozens of client teams to help them improve their effectiveness in engaging target customers, I still find myself struggling with the sheer stubbornness of this challenge.

What I've concluded is best summarized in these three points:

  1. Going a little deeper to try and understand why it is that otherwise smart and dedicated execs cannot bring themselves to adopt a customer-in perspective, train their marketing and sales teams appropriately, fund customer success properly, and so on, I’ve concluded that dislodging a product-centric paradigm is virtually impossible for many tech people.
  2. This is particularly so since tech companies are so heavily staffed by engineers and other technology-focused individuals.? They might acknowledge that a customer-in approach makes sense, but, with few exceptions, they just can’t make the switch toward developing insights about what really drives prospective clients to adopt their technology and staffing their organization accordingly, rather than continuing to build more features.?
  3. At the core, I think for many execs, marketers and sales teams there’s a strong conceptual blockage - an inability to accommodate vendor-out and customer-in thinking at the same time, and to be aware when you are operating in one mode vs the other. It's okay to manage your sales funnel toward closing deals, but it's often futile to do so without first getting a clear understanding of your prospect's buying motivation.

At this point, I haven't managed to crack this problem but would welcome your feedback...


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Ron Wolf

Survivor of Seven Silicon Valley Startups (four monetized)

1 年

I wish there were something new here. But really isn't. Drucker was all about this issue. So what does it take for biz execs to really buy into customer first? My guess, few will regardless of the approach or evidence.

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All good takeaways, Philip. To that I would add the overwhelming desire--and mandate--to "add new stuff" to a product line so as to transform applications to suites; and suites to "platforms" all based on a an assumption that that is what customers want. Some do but others do not. The net effect of all this addition can be, in my view, a subtraction--fundamental value now muddled through myriad capabilities that distract rather than attract a customer looking for an entry point to solving a challenging problem. The marketing messages then amplify this at the risk of further customer confusion rather than clarity.

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Adam Broadway

Equipping developers and agencies to rapidly produce and run enterprise-quality applications and Marketplaces.

1 年
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Philip: I think the problem is caused by the economics of delivering the solution. The key to profitability with SAAS is delivering a standardized product with the least amount of customization possible. CS is trying to streamline implementations, QBRs and moving the customer to buying the next phase. Customization slows this process and requires higher skilled and more expensive resources to deliver...and all of this assumes that the requirements have been properly defined and captured in the first place...which is rarely the case. Sales teams are told "SELL WHAT WE HAVE". There-in lies the drive to pull customers to the solution instead of the solution to the customer. We now go back to the whole "Mass-Customization" thing and the wheel turns once more. These cycles have happened over and over in subtly different ways since enterprise solutions started 50 plus years ago.

Nick Goss

I help software founders turn tech into profit, clarify the offer & get first 5 customers . UK-born Silicon Valley veteran & Premier 100 IT Leader, combining strategy & hands-on execution to protect high-value accounts.

1 年

I think one of the biggest challenges that software companies have when moving to a SaaS model, is that they never really understood the detail of the problem the customers were trying to solve. Software was only one component of the solution. It was the IT department that created a service to address end-user needs, and it’s a steep learning curve for SaaS companies.

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