How well are the price/value ratios of your offerings aligned with your target buyer segments? In other words, are you selling the right offerings to their most likely buyers? Or are you missing this important link?
Quick review: Your buyers fall into segments: Testers, Regulars and Enthusiastic Fans. Each of the buyers gravitates to a particular price/value ratio which is represented by your Common, Uncommon or Exceptional offerings. These relationships are illustrated on the GO Curve.
Your company is most likely to maximize revenue when you align your offerings with the correct buyer segments. This alignment will be reflected in marketing, sales and service.
I see three mistakes that hinder maximizing revenue. Take corrective action immediately.
- Mistake #1: One-size-fits-all marketing distributed exactly the same through all channels. Thus, it’s marketing that doesn’t resonate with any buyers.
Corrective Action: Differentiate marketing according to the price/value ratio preferred by each buyer segment. Your Enthusiastic Fans prefer Exceptional offerings and they’ll be attracted to messages that tap into their emotions and preferences. Marketing messages that resonate with Testers will not resonate with Enthusiastic Fans.
- Mistake #2: Buying experiences that don’t reflect the price/value ratio of the offerings preferred by the aligned buyer segment. The price/value ratio increases as you move up the Go Curve.
Corrective Action: Testers want to buy and go, so if you over-invest in sales efforts you will lose money. Enthusiastic Fans expect their buying experience to fit their higher expectations and accept that a small part of the price covers a buying experience commensurate with the value of the offering.
- Mistake #3: Undifferentiated service before and after the sale. You have one service department and one service policy and all your customer service people are trained to respond to all buyers the same way.
Corrective Action: Service policies that reflect the price/value ratio and the buyer segment. Your Testers typically will accept a basic level of service. Be sure to give it to them. Build more expansive service into your policies for Uncommon and Exceptional offerings.
One Size Does Not Fit All: A Cyber Security Services Firm
Dave, the founder and CEO of a cyber security services firm, promoted a long list of services they could provide to a wide variety of businesses. And he had little success. He was marketing all things to all people and not one of his prospects saw themselves benefiting from any of them.
Dave and I began our Singular FocusSM on maximizing topline revenue by segmenting his prospective buyers. We evaluated every offering in terms of a price/value ratio. We aligned the offerings with the buyer segments and Dave was very clear where each business owner fell on the GO Curve. He honed his marketing about value to fit this alignment. Some of the Testers—mostly business owners who felt they faced little risk–quickly bought one or two offerings. Other prospects who felt they had much greater risks were attracted to the higher value offerings and were willing to pay for them. Over the first 18 months, revenue for Dave’s company grew across all three buyer segments and all three price/value ratios.
Do It For Your Company
Devote as much time as is needed to make the corrective actions that will align your marketing, sales and services with your buyer segments and their preferred price/value ratios.