What Problem Do You Solve and Do You Solve it Differently?Posted: March 4, 2013
Last week, a ran a seminar on Building Revenue Models for the community members at 1871, the Chicagoland Entrepreneurial Center’s (CEC) project that supports entrepreneurs on their path to building high-growth, sustainable businesses that serve as platforms for economic development and civic leadership in Chicago. My partner, Steve Baumgartner, and I have been struck by some 1871 entrepreneurs’ inability to clearly state what problem they solve and, more particularly, how they solve it differently. Instead of being able to clearly articulate the problem they solve, some of these entrepreneurs remain fixated on talking about the features and benefits of their solution and, on a few occasions, the needs that their solutions address.
In both circumstances, these entrepreneurs are off target and wasting the sales opportunities they are generating. Whether it’s true or not, few potential customers want to hear them talk about how elegant their product is, or how it provides features and benefits, that they likely do not even think they need. Instead of being sold a solution, or features and benefits, prospects want help solving a problem, and the bigger the problem the better.
If you find yourself in this situation, It’s time for them to take a step back and develop some hypotheses about what problems your products/solutions solve for customers. Dig deeper past the symptoms of customer’s performance problems into how their businesses operate and how your products/services impact their ability to operate more efficiently or effectively. Confirm what problems your products/solutions address better, faster, and cheaper. Then take a close look at the next best alternatives available for your target customers and compare and contrast them to your products/solutions. Push hard to define how your product/service and business model are truly different. It’s no longer sufficient to just be better, faster, or cheaper, customers want to buy solutions that are different and uniquely create value for them or their businesses. Through iterative conversations with customers you can hone and simplify your message and define what truly makes you different.
You will know you’ve got your fly wheel spinning when the sales cycle speeds up and prospects and customers start noting and referencing what makes your solution different with each other.
If you are working on defining what problems you solve and how you solve problems differently, please comment here, or contact us, we would like to hear from you.