Are You Solving the Customer’s Entire Problem?

I can’t prove it, but I believe companies that solve the entire problem a customer has win more deals than companies that only solve part of the problem. It makes sense. If you need a 20-foot bridge, why would you buy a bridge from a company that only makes 16-foot bridges. Now you need to find a 4-foot bridge and someone to hook the two bridges together. It just seems easier to buy a 20-foot bridge. 

"You must fully and completely understand the problem the customer is trying to solve. Not the problem you want to solve and not the problem you think your product solves."

The most influential book I ever read was The Flight of the Buffalo*. One of the lessons I learned was the need to understand the complete problem the customer wants to solve. (Or the complete job they need to get done.) The author tells of being with a small company competing against industry giants to win a multi-million-dollar international government agency contract for electronic document processing. Knowing they could not compete on reputation or price; the CEO asked the agency head what concerned him most about the project. The agency head said he thought all the companies bidding could do the job, but he had no idea how to convert the millions of existing manual documents to electronic documents. Hearing this, the CEO modified his proposal to include services to convert the existing documents to an electronic format and submitted a proposal that was twice the price as his competitors, but that solved the customer’s entire problem**.

In the late 90’s as companies started to install PIN Pads to accept debit cards, I used this insight to compete against larger companies. I would start by drawing the payment processing chain from consumer card to PIN Pad all the way to the consumer’s bank. I would then highlight the changes that needed to be made at each spot in the payment processing chain, followed by circling the ones that my solution would do for them. (All but two minor changes.) I would then ask who else they were looking at and they were always considering either one or both of our larger competitors. I would then tell the customer that those vendors could only solve one of the dozen things needed to accept debit cards. The next question was usually how much and when can we have it? That’s the power of solving the customer’s entire problem.

It is enlightening to talk to the new exhibitors at shows like NRF Big Show and Money 2020. Invariably they have a technology-based solution looking for a problem. Occasionally it solves part of real problem that companies want to solve, but rarely does it solve the entire problem. Established companies also fall into the trap of only solving part of the customer’s problem. It could be they don’t understand the entire problem the customer is trying to solve. It could be they are trying to find new markets for existing solutions, and they are trying to fit the square peg into the round hole. It doesn’t matter because in every case, they are shifting the problem of solving the problem back to the customer. That adds friction to the sales process at best and results in lost sales at worst.

So, what can you do about this? There are several things companies can do both short and longer term.

First, you must fully and completely understand the problem the customer is trying to solve. Not the problem you want to solve and not the problem you think your product solves. I don’t know any way to do this either than talk to your customers and ask questions. Ask the right questions if you want the right answers. Don’t lead customers down a path that ends up with them supporting the decisions you have already made. You must engage in dialog to find and understand their true problems and needs. Ask the right questions and your customers will tell you.

Second you need to make an honest assessment of what problem, or what part of the problem your product solves. I worked for a company that wanted to say we had an omni-channel solution. We did not, in any way have an omni-channel solution. While retailers may define their omni-channel solution in different ways, all we provided was the payments piece of an omni-channel solution. There was much more functionality required for a retailer to implement an omni-channel solution.

Now that you understand the true problem and honestly understand where your product fits into the complete solution, there are three ways to respond:

1.     You could figure out how to solve the entire problem. Using a Gap Analysis, you could develop the missing functionality, license it, or buy it via acquisition. Basic make versus buy/cost versus time to market decisions to decide on your approach.

2.     You could partner with others to offer a full solution to solve the problem. These could be formal partnerships, distribution or resale agreements, or just ad hoc joint proposals. However, you approach it, you are bringing a solution to your customers which solves their entire problem.

3.     The third approach is to at least make it clear to your customer what part of the problem you solve, and what parts your solution doesn’t solve. You could consult on ways to fill the gap, suggest other solution that could work with, or work with them to solve the entire problem. In this approach at least you are adding value to the sales process and helping your customers be successful.

With today’s ever more complex technology solutions, many companies don’t understand the real problem their customers are trying to solve, nor do they acknowledge what portion of the problem their product solves. Unless you have a 100% understanding, you’re pushing a boulder up hill.

For assistance understanding your customers actual problem and true needs, contact Customer Focused Marketing to see how we can help.

* The Flight of the Buffalo by James A. Belasco and Ralph C Stayer

** It’s been 20 years since I read The Flight of the Buffalo, so I am sure I have some of he details of the story wrong, but the lesson learned is crystal-clear.