small business

Problem: Some businesses struggle to generate leads and then turn those leads into prospects. Others can get the leads just fine but can't convince the buyers to buy. Businesses may have a large list of people on their contact list but still struggle to turn those prospects into paying customers.

Although there could be other factors at work, part of the problem is the lack of value provided by the business. Simply put, if a business wants to get money from a customer, it needs to prove that the customer is getting something in exchange. That's value.

Solution: Value is created when a product or service solves a customer's problem or fulfill a customer need.

This might be a fairly simply situation. For example a customer wants some chocolate so they buy a chocolate bar. The value they get from that purchase is the fulfillment of their need.

Or, this can be a more complex situation. For example, a customer wants to get from point A to point B so they might need some kind of transportation. But they also need to get there quickly (so the bus is out) and without a lot of effort (so a bicycle is out). That leaves a range of cars or trucks. But they have another need, perhaps one they don't even realize. They want jealous neighbors. So they buy a beautiful high-end sports car to solve all of their needs at once.

Customers only buy to solve problems or fulfill needs, even if they aren't aware of the needs or can't adequately articulate them. Businesses that are successful understand exactly what problems they solve and what needs they fulfill and they target those in their marketing.

Examples: The classic, beloved example of the difference between a product and the value it provides is the drill. A customer does not buy a drill. They buy something to make holes. The business that will sell more drills is the one that can relate to the consumer that their drill makes the best holes (and, perhaps, solves other needs like being low budget or quiet or easy to use or rugged).

Application: So, how can you put this into practice?
1. List all of your products or services, each on their own piece of paper.
2. Create 2 columns on each paper.
3. In the left column, list the problems or needs that your customers have which prompts them to buy your product or service. Don't be afraid to spend a lot of time on this step!
4. Based on the list of problems or needs, create a customer profile of your typical user.
5. In the right column, beside each problem or need, write down how your product or service solves or fulfills each point. Be aware that you might not have a point for each one (and this is the case, it's a clear signal why your buyer is not buying).
6. Based on the list on the right-side column, revisit your marketing, your brand, your pricing structure, your distribution channel, your customer service, and even how your product or service is created, to express how you are able to solve many of their problems or fulfill many of their needs with your solution.