It is a common mistake to believe that the best product wins. History tells us that is not true. In fact, it is RARELY true.
Do you remember the “New Coke” fiasco? Blind taste tests ‘prove’ that more people enjoy Pepsi than Coke. With Coke losing ground to Pepsi at an alarming rate, Coke executives created a formulation that beat Pepsi (by a large margin) in taste tests.
When they made the switch to New Coke the public outrage was so intense and widespread they quickly replaced it with the classic formula.
This means that the market leader in Colas (Coca-Cola) is no better than third ‘best’ according to blind taste tests!
We could cite example after example but the REASON this happens is because “best” is more a function of perception, not objectivity.
‘Perception’ happens in the mind.
Many entrepreneurs have crashed and burned by the belief that building something better or having ‘the best’ will give them the greatest chance of success.
The ability to create and manage perceptions is what gives you the best chance of winning. (Of course, you have to have decent quality as well or you will create Detractors who will limit your growth and make you vulnerable, “Case Study: Using the Net Promoter Score to Boost Sales and Lower Attrition Rates.”
How? Here are 5 ways to help control perceptions:
1. Develop a Core Message and Stick to It. By constantly hammering your unique point of differentiation in all communications in the marketplace you will put yourself in prime position to attract the prospects most likely to become customers. Knowing your core message also allows you to more thoroughly target the prospects who need it. If done right, you should have almost no direct competitors. Most companies should look like “almost what I need but not quite” vendors. To read more about this read “To Sell More, Focus and Diverge.”
2. Leverage Social Proof to Sell More. People are busy so they use Social Proof to help them decide quickly (or narrow their choices to a more manageable level). If their “tribe” thinks it is a good idea then it creates the perception that it must be good for them. FreshBooks has a great use of social proof on their website. They display the following graphic prominently on the right side of their web page. The sheer number is a great sign. I think they can make it better by giving the exact number… perhaps even making it a live counter.
FreshBooks' Use of Social Proof and Credibility Indicators
3. Use Credibility Indicators to Dissipate Friction. Most people have a natural friction or sales resistance. A believable credibility indicator can help alleviate that friction and make selling more of your company’s product easier. An example of a Credibility Indicator is the Testimonial. If you have strong testimonials from customers just like them it goes a long way. Almost all companies use testimonials (though very few use them effectively) but very, very few use another version that can be even more powerful… the endorsement from more well-known and trusted companies, advisors or category celebrities. The ‘Watch an interview with FreshBooks on Fox Business News’ provides the perception that this is not some fly-by-night website… getting an interview on Fox Business News puts you in the big leagues. I’d see about using the Fox Business News logo underneath it to give it even more impact.
4. Use Social Media to quickly nip competing perceptions in the bud. With Social Media and tools like FiltrBox it is much easier to keep a pulse on market conversations around your product/service. Joining in the conversation while it is still ongoing will allow you to tighten the feedback loop and improve any areas that are causing the negative perceptions. Conversely, you can monitor market conversations around competitors.
5. Use the Strategy of Preeminence. Become a Trusted Advisor to your client in the category of your solution. If you sell Time Management software, you should seek to educate your clients all about Time Management. If you give, give and give so well that even people who DO NOT purchase your solution are getting value and passing your information along then you will go viral. It must be all about them. They should become better at time management just by reading your sales material! This is such a different outlook but if you “get it” you will have to do a lot less “selling” to boost sales. The following quote is from marketing genius Jay Abraham from his article “The Strategy of Preeminence (Secrets to Market Domination in Your Industry)”:
The strategy of preeminence simply means that you will not let your clients buy more or less than they need to get the results they seek. It’s a powerful yet simple strategy that can transform your business.
I’m always amazed at how many business people will say and do whatever it takes to make a one time sales rather than taking time to understand the client’s desired outcome.
And then having the courage and moral obligation to tell the client what they really need.
Sure, you may end up with a smaller initial sale, but you will have made a new friend. And they will buy again and again and send you referrals.
You must set the strategy of preeminence at the beginning of your relationship before someone buys from you. You can do this by becoming a trusted friend or advisor- so this needs to be a part of your presentation.
How many of these are you doing?
Jason Bedunah