‘You can’t be seen, until you learn to see’ — marketing whiz, Seth Godin.
Is “How can we reach more customers?” the first question to ask? Or, should one start by asking, “Which small group of customers can we understand so well that we become their obvious choice?” Is it true that “No business plan survives first contact with customers?” Are managers best described as: predicably irrational? And, does organisation change often start with just one person?
Focus on a minimum viable marketSeth Godin argues that instead of trying to appeal to everyone, enterprises should identify the smallest market that can sustain their business and serve it exceptionally well.
Best way to do this is start with a specific group of people who share a common problem, identity, or aspiration. For instance, those on a lower income who need affordable quality health care, with a stress on prevention and wellness. Or, residents on the coast who need a short-term loan, but want to avoid the high interest rates of log book lenders.
Next step is to continually polish the product, offering to have a ‘wow’ factor.
Fancy term for this is having a product market fit. Meaning you create such remarkable value so that customers enthusiastically recommend you to others. Nothing persuades like word of mouth recommendations. Focus should be on building trust and belonging, not just transaction volumes and profitability. Then, wait to become indispensable to your loyal client niche before expanding.
Remember we make purchases based on how we want to feel. Our often-irrational emotions drive us. To begin with a minimum viable market approach helps to ask questions like, for instance: Who is it for? What change are you helping them make? Why will they tell others? Stress is not on the maximum reach, but more on building the relationship, based on being the most relevant.
In rolling out a minimum viable market approach start with filling in a three-sentence marketing promise.
1) My product is for people who believe …
2) I will focus on people who want …
3) I promise that engaging with what I make will help you get …
Marketing has shifted, from the days of almost industrial hype, scams and pressure which doesn’t work in the long run. Today, the focus is trying to make a difference by seeing and understanding the customers you seek to influence. All of which starts with a conversation.
Predictably irrational
Research by Nobel laureate Daniel Kahneman (along with Amos Tversky), showed people are not fully rational in the traditional economic sense. Instead, at best we are ‘predictably irrational’.
Managers do not make random mistakes. They make systematic errors in judgment and decision-making because our brains rely on mental shortcuts called heuristics. These are the mental shortcuts or ‘rules of thumb’ we use to solve problems, make judgments, and process information quickly.
This ‘default factory setting’ programming allows our brains to bypass time-consuming, complex analysis, conserving mental energy, but can often lead to systematic errors or cognitive biases. An example of this is that when facing uncertainty, managers weigh potential losses far more heavily than equivalent gains. This bias is known as loss aversion.
Businesses frequently frame their products to highlight what consumers might lose if they do not make a purchase. Prime example of this is software companies who offer free access to premium features for a limited time. Once users integrate the software into their daily routines, canceling feels like a loss of utility, greatly increasing the likelihood of an upgrade.
Irrational rules
‘When in doubt, assume that people will act accordingly to their current irrational urges, ignoring information that runs counter to their beliefs, trading long-term for short short-term benefits and most of all, being influenced by the culture they identify with’ says Godin.
But how do organisations change for the better? Truth is, companies are constantly in a state of flux, but a shift happens based on one uncomfortable truth.
One driving force
For every company that has made a profound performance shift there is [generally] one person, who made it happen. This is not a politically correct way of looking at organisation ‘transformations’ but there is always someone who acts the mitochondria in the cell that provides the energy to make that needed shift in direction.
‘Every organisation – every project – is influenced by a primary driving force. Some restaurants are chef-driven. Silicon Valley is often tech-driven. Investment firms in New York are money-driven, focused on the share price, or the latest financial manipulation.
The driver, whichever one you choose, is the voice that gets heard the clearest, and the person with that voice is the one who gets to sit at the head of the table’ writes Godin.
What do you see? Can you think of a radical performance improvement in Kenya that did not start with one person as the driving force?