MBA1351 Does Your Offer Address the Biggest Pain Point?

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Hey O welcome to the Hundred Dollar MBA show because your business deserves the best. That's why we deliver daily 10 minute business lessons for the real world. I'm your host, your coach, your teacher Omar Zenholm. I'm also the co founder of the Hundred Dollar mba, a complete business training and community online. And in today's episode you will learn does your offer address the biggest pain point? When we present our products and services to our customers on our website or wherever, we often think that the most critical thing is our price point. This could be a big mistake. It's very important for you to discover what's the biggest source of pain for your customer when it comes to your product, your service. Why would they choose your business over the competition? What is the competition not giving them? Why would they switch to your product or service? That's for you to figure out and I'm going to show you how. In today's episode, many people are looking for a particular solution. Whether it's better customer service, whether it's ease of use, whether it's a feature or an option that's just not available with the competition. This can be your differentiator. This could really be something that you can emphasize on your pricing pages and when you make your offer. And it could be the deciding reason why people go with you and not the competition. We'll also talk about why competing on price is a recipe for bankruptcy and why you should never do it. We've got a lot to cover in today's episode. Let's make sure we're addressing the real problem when we make our offer and offer a solution to it. Let's get into it. Let's get down to business. Most people, when they present their offer to their customers on their website, on their pricing page, or otherwise, they think the most important thing is the price. The second thing we assume is the most important thing or the second most important thing in our case is our list of features or benefits or what's included. Yes. When people are shopping around, looking at you, looking at your competitors, they will look at price and they will look at your features or look at what you offer for what price, you know what's included in that price. But what people don't talk about and don't realize is that oftentimes those pieces of information, the price and the feature set is not enough for people to feel convinced or convinced enough to switch off their current provider, switch off their current service, to switch from your competitor to you. What's stopping them from buying if you're claiming a better price and a better service and a better feature set? What's happening here? Well, only you can find out. You need to speak to your customers. And many founders and many business owners really shy away from actually opening up and having a conversation with their customers. We get busy with our to dos, we get busy with our responsibilities and we think, hey, if I build a great product, people will buy it and case closed, I don't need to worry about this. But it's hard to not only create a great product, but to present that product with a great offer. If you don't know what the needs of your customers are, what their pain points are, what's stopping them from buying. This is why it's great to speak to potential customers. Not current customers, but potential customers, people that might be interested in your service, somebody who signed up for your email list, somebody who signed up for a trial, shooting them a quick email and asking them for 15 minutes of their time for quick chat can do wonders for. And let me tell you why, because you're gonna find out from a potential customer what it's gonna take to close the deal. And after a few of these conversations, you're gonna start realizing a common thread and realizing, hey, I need to include this in my offer and it's gonna be a no brainer. This is what you're trying to do in these conversations, find out what you can offer to make this a no brainer decision. Sometimes it's hard for us to figure this out on our own without speaking to our potential customers because we're in the weeds. We've built this product, we've built this service, we've been working with this idea and this business for months, days, years, so we actually know the true value of the product or service, but your potential customer doesn't. Maybe you're not highlighting things that your product does that, that they need to know front and center on your pricing page so it's clear to them. So I'm going to share a set of questions, some questions that you can ask your customers, your potential customers to find out what's stopping them from buying. What would make this a no brainer. You need to kind of find out why they're looking to use your product, what problems are they trying to solve with your solution, how are they going to use your product or service? So what problem are you trying to solve and how will you use this product? These are great questions to start with. You also at the start want to find out what, what they actually do, what's their business, what's their profession. So you have some context, you understand the demographic of your customer. Another great question is what is something that's frustrating about the process of what you're trying to get done? So say for example, you're an email marketing service and your whole software helps people build their email list. What's frustrating about building an email list? Well, they might be saying, well, embedding forms on my site, that's complicated or knowing how to tag people correctly. You want to take down notes here because this is gold. This is what's frustrating to them. This is what makes this process hard. You want to ask also what are they using right now to solve this problem? It could be a competitor, it could be an alternative way to do this. It could be manually with spreadsheets or something. But find out what are they doing now, what's their life look like now to solve, how do they solve this problem so you have something to compare to. The next thing you want to ask is what attracted you to our product, our service, our offer. And if they never heard of you, you're reaching out to somebody who hasn't heard of you. Give them a quick demo, show them around, see what their thoughts are, their impressions. And then lastly, you're going to ask them straight up, why haven't you signed up? What's stopping you from signing up today? You can even ask them what would this offer have to be to be a no brainer for you. And the interesting thing you'll find out is, is most of the time it'll have nothing to do with price, they'll have to do with maybe something they want your product to do or to solve for them. It could be the inconvenience of switching. It could be the learning curve, it could be how it integrates with their current tools. Whatever it is, there's going to be something that's stopping them, that's holding them back from saying, hell yeah, I want to get started with this product or service Now. I'm going to give you an example. I'm going to share a story with you, and I actually want to give a shout out to Dan Martel, our business Coach over at SaaS Academy, and ConvertKit's founder, Nathan Barry. I actually learned this technique and learned some of these questions from Dan Martel, and I actually saw this in action in Nathan Barry's business, Convertkit, which is a email marketing CRM. And in an interview that Dan Martell did with Nathan Barry over on YouTube, he explains that when Nathan was speaking to potential customers, making some quote unquote sales calls, he would always hit this kind of roadblock where people would say, I love ConvertKit, I love your product, but I'm just not ready to switch. I'm just not ready to switch. I'm just not ready to switch. And it became a common theme. And what Nathan started to realize is that it doesn't matter how low their prices are, how long their trial is, or even how fancy their features were, that wasn't getting them over the line. What's really gonna get them over the line is solving this pain, solving this problem where people are resisting to change their CRM, their email marketing service, because they just don't want to switch right now. He dug a little deeper and realized that there is a lot of pain associated with moving over all your email lists and your forms on your website and all the things you have to do to switch from one email marketing service to the next. So Nathan just asked one customer a simple question. What if we did it for you? What if we switched your you over to ConvertKit ourselves? We did all the legwork, all the hard work, moving your forms, moving your lists, setting everything up. Would you join us? And the answer was, well, if you're going to do that, yeah, I never was offered that. And it was like a light bulb moment for Nathan and Convertkit. And now they offered this concierge service and they've been offering this concierge service and it's one of their biggest growth strategies they've ever had because their competitors simply just never thought of it and never ask their customers and they don't do it, or at least of what I'm aware of. So he found really what's causing people not to buy. And it was the switching costs, not the financial costs, but the time and attention costs. So you need to go through this experience to find out what is that thing? What is the reason why people are not buying your product or service, what's holding them back? And then once you do create a solution for it and make it front and center. Make sure it's clear on your pricing page, on your website that you do this, you solve this pain. So when they have that feeling like, oh, this looks great, but you answer that. But now I do want to talk about why competing on price is something you should steer clear from. Unless you're a Walmart, unless you're an Amazon. Competing on price is a race to the bottom. It's a quick way to go bankrupt because you're just never going to win. You need to make sure your prices make sense, that cover your costs, that make you a profit, a healthy profit, so you can be able to reinvest in your business and grow. The other thing that a lot of people don't realize is that when your prices are too low, it's questionable if you can provide great service. It's questionable if your product is world class. Sometimes people price their products so low trying to make it a no brainer. It causes a lot of red flags and question marks. Why is this so cheap? It can't be that good. It doesn't make sense to the customer. And if you're serving businesses, if you're a B2B, other businesses are like, hey, if these prices are this low, there's no way this company is going to sustain itself. It's going to be around the next year. 2, 3, 4. I need to have a relationship with a company that's going to stick around. I don't want to switch later on. They want to see longevity. So low prices can be a red flag in that regard as well.

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Is it time to reimagine your future? The right business skills may make a difference in your career. At Capella University, we offer a relevant education that's designed to focus on what you need to know in the business world. We'll teach professional skills to help you pursue your goals like business management, strategic planning, and effective communication, and you can apply these skills right away. A different future is closer than you think with Capella University. Learn more at capella.edu.

One good exercise to do is to write down the benefits of your product or service. Not the features, not what it includes, not the details. A benefit is like easy to use, fast setup, helpful fast support, free migration or concierge like in Convertkit's situation. Anything that addresses fears, pains, obstacles we use. WebRTC technology is not a benefit, it's a feature or it's a detail. It's a technical detail. Really what your customer cares about is low delay video, fast communication and that's what WebRTC technology delivers. So you get the point. What are the benefits? What are they going to get? What enjoyment? What problems will it solve? That's what you got to highlight. Thank you so much for listening to the $100 NBA show. If you love what you hear, leave us an iTunes rating and review. We'd love to hear from you. What is your favorite episode? What's your favorite takeaway from today's episode? By leaving us on itunes rating and review, you enter our weekly random draw we call Free Ride Friday where we randomly choose somebody who left us a review and give away a free ride to one of our courses. Just listen in on Friday to see if you want. It's that simple. When you leave a review, you enter the draw for every week. It's our way to say thanks for showing us love on itunes. Before I go, I want to leave you with this. One of the things that really hurt you in this process we talked about today is looking at your competitors websites. Often when we try to differentiate we say let's look at our competition. Let's try to do something differently. What happens is that you're influenced by their site, by what you just saw and you're doing your best to compete. Rather than be original and focus on what you can deliver, focus on your unique value, focus on how you solve your problem, customers problems uniquely. Resist that urge. Or you can hire somebody, a va, a research person, somebody on upwork to do a bunch of research and just put it in a spreadsheet rather than actually go to the actual sites so you have facts and data rather than being overwhelmed with the messaging and the branding of those other companies. Thank you so much for listening and I'll check you in tomorrow's episode. I'll see you then. Take care of.

Is it time to reimagine your future? The right business skills may make a difference in your career. At Capella University, we offer a relevant education that's designed to focus on what you need to know in the business world. We'll teach professional skills to help you pursue your goals like business management, strategic planning, and effective communication, and you can apply these skills right away. A different future is closer than you think with Capella University. Learn more at Capella Eduardo.