When a technologist or developer looks at customers using their products, they recognized the commonality between the customers based on the features of the product that are being used, however, the customer values the product based on the Problem that it solves for them and their company.
Why is this important?
Technical startups are founded around a technology that offers a set of features to solve a problem for an early customer or set of customers. The focus of the founding group is on developing and delivering those features to satisfy those customers. Their customer’s decision to purchase the product is based on the value delivered by the product to solve a problem for the customer. This is where the transition from product focus (features) to market focus(problem) is critical and is most often ignored.
Think about it from the customers perspective:
When you are evaluating a new product or service, do you want the representative to list off all of the features of their offering so that you can figure out how or if it solves your problem? Or do you want them to talk to you in the language of your business? This is the definition of ‘personalization’. The vendor’s representative understands my business and my problems and is describing their product within that context. They are telling me how their product may offer benefits to my job and company.
So What?
Development costs increase based on a growing set of product features required to satisfy different customer problems being solved. These features are different analytics, different integrations, or more significant feature enhancements. However, the real cost is associated with outbound marketing and customer engagement. First, prospects will not be interested in reading or learning more about a features list, no matter how extensive. Fintech companies do not care about Healthcare problems solved or Manufacturing problems solved. Second, everyone is busy and inundated with new cool offerings. The challenge and opportunity are to communicate a ‘personalized’ message to the key contact about how our product may solve a problem for them in their business using their industry, business terms to describe the problem, and solution offered. If I am in the Healthcare industry, do I want to hear about speeds and feeds enabled by features, or would I rather hear about how shorter benefits processing speeds up payment and cash flows to my business?
Recommendation:
If you do not have these skills internally or connections to people with these skills, then try to find them or contact us. Two common high-risk strategies are 1) hire full-time expertise 2) engage a marketing agency. The skillset required is the combination of marketing and sales to identify a market segment that can meet the short-term ARR requirements of the company based on the product capabilities that are deliverable today. Separating this into marketing and sales most often results in long timelines and missed ARR results, wasted time, money, and potentially the market window.
About us:
Part of our social mission is to mentor and guide Technology Startups in this journey. As investors, Board members, Entrepreneurs, and Operational Executives, we understand the challenges facing Founding Teams and are committed to helping them succeed. Please feel free to contact us with any questions.