Imagine you have an audience of 350 people. Now imagine you have them captive in a room for several hours. How would you use that time? What if that audience were already your customers? I am guessing that handing out a catalog of random products and serving water in paper cups would not be the first items on your list. Unfortunately, they are the ONLY things United Airlines could come up with.
I pick on United because they kept me sitting on a runway for over 4 hours recently, with a cup of water after 3.5 hours being the only concession. They did actually serve food (liberal interpretation) and show a movie during the 12 hours in the air. But they could have, among other things,
- Sold DVDs or downloads of the movies they were showing
- Sold CDs or downloads of the music they play on various earphone channels
- Surveyed passengers about travel habits, plans, and airline selection criteria. (Fill out a survey, get extra frequent flier miles.)
- Gathered data on behalf of a paying third party.
- Sacrificed one seat in the back to offer in-flight neck or foot massages. I’d pay!
- Sold neck pillows and other travel-specific items
- Offered free informational pod-casts (from sponsoring organizations?) or audio books via the audio system (and then sold the audio and ebooks, of course)
These are all revenue-generating for the airline, and valuable to customers. But they weren’t done. Seems that in a financial crisis, innovation applies only to cost-cutting. Why not focus on revenue sources in stead?
I see many companies passing up opportunities to add value and generate additional revenue. In the course of conducting research for one client, we concluded each customer interview with a very simple question: “What will help you get more value from this product?” Several customers mentioned they wanted our client to offer post-sale services to fine-tune product usage 6 to 12 months after deployment. This discovery was unexpected, unplanned, and pointed to a completely new revenue and relationship-building opportunity. To find it, all we did was ask.
To find those hidden, yet in hindsight obvious, revenue opportunities, look in two places:
- Can you address additional or broader needs for the customers you already serve?
- Can you meet the same needs you address today, but for new audiences or segments?
As a follow-up to the previous post, here are some practical differences to keep in mind when planning for solutions marketing.
Solution marketing differs from traditional product marketing. This is a partial list, of course, but 7 is supposed to be a lucky number, right?
- Solutions marketers understand what motives customers to allocate budget within the broader context for a purchase
- Solutions marketing content is focused on the buyer and their objectives, not the product or its features
- Solutions-oriented value propositions focus in on specific use-cases or situations in which the customer is involved.
- The solutions marketing process and programs provide information or resources that are valuable to the customer
- Thought leadership and value creation are critical components of solutions marketing
- Solutions marketing activity often involves collaboration with other companies (see broader context in #1)
- To ensure that all of the above are truly relevant, current, and valuable to your audience, Solutions Marketing must engage the customer in conversation and dialogue at every available opportunity.
Speaking of dialogues, please add to the list with your comments!
by Lilia Shirman on January 27, 2009
in Solutions
Companies used to selling products struggle to shift to “solution selling”. There are lots of obstacles – product-oriented habits, the never-ending argument of “what’s a solution, anyway?” (more on that in a future post), sales reluctance to adopt new techniques, etc. Before we put the big strategy and sales kickoff program in place to “transform Sales”, however, lets first look upstream at marketing.
As any sales approach, solution selling starts with customer-relevant content, programs, and ultimately (we hope) leads. All supplied by marketing. In this case, by Solution Marketing. Understanding how its different from product marketing can pave the way to a smoother transition and solution selling success.
Solutions Marketing is about shifting your perspective and context. A solutions approach to marketing places your offerings within the context of the customers’ broader situation and needs. It starts with the customer and their desired outcomes, instead of with you and your products. (Note – their objective is NOT to buy a product.) Focusing on the customer’s broader context means solution marketing can encompass aspects of the customer’s needs that your own product or service may not solve. The value prop IS the customer’s desired outcome, not your product’s superiority.
Let’s be really clear – “Solution Selling” and “Solution Marketing” are not the same as actually selling and marketing solutions. They are approaches to how your customers become aware of, learn about, interact with, and commit to your business. They don’t require that you actually offer a complete solution – only that you understand the role you play in helping customers achieve their objectives.
Ultimately, solutions marketing must support solution selling. That means giving sales reps and channel partners the knowledge and tools they need to carry the customer-centric view through the entire sales process and beyond.
