Trust is built over repeated interactions between people. If your business requires long term relationships then you have to make sure that investments in automation are not deployed in a way that undercut your ability to have real conversations. Unfortunately, some uses of email automation tools are pushing sales conversations into the “Uncanny Valley” because they strive to simulate–but miss–a genuine personalized touch.
Q: We have a product for bloggers but I am having a lot of trouble getting leads. I have met bloggers from popular media companies at events, I have cold called them, e-mailed them, and e-mailed to on-line groups that I am a member of. None of this has worked. How do I interest people in my product?
I have a couple of suggestions:
I remember first learning the principle “leaders eat last” from John K. Russell, an advisor on a summer Presbyterian workcamp in Westpoint Mississippi. He had been an officer in the Army and talked about how the officers had nicer silverware and napkins but it was the same food and they ate after the enlisted men. Simon Sinek uses that principle as a point of departure–leadership as a combination of higher status and service. His description of leadership reminded of Goethe’s maxim “A man is really alive only when he delights in the good-will of others.”
Here are some of my key take-aways from this talk:
Customer discovery interviews are essential to testing key B2B product hypotheses and understanding your target customers’ needs. Broadly there are five ways that you can reach out to potential customers to have a discovery conversation. All of them assume that you have a clear picture of who your target is and a few key questions that they will be willing and able to answer that will indicate they have a problem or need your solution may address.
I signed up for a mailing list a while ago from a reasonably famous entrepreneur and he sent me this mass email in late November promising to share “Silicon Valley Secrets.” I don’t know if it’s because I have worked in Silicon Valley for more than three decades but I found the whole thing kind of sad (of course, he’s probably laughing all the way to the bank).
Michael Fern, Edith Harbaugh, Steve Hogan, and Sean Murphy discuss the Innovator’s DNA experimenting skill.
Tristan Kromer joins Steve Hogan and Sean Murphy to discuss networking as a key skill to develop to foster innovation.
Jeff Allison, former VP of Engineering at Cisco Systems joins us to discuss observing.
Sarah Gray, Ethan Thorman, and Mark Cook join Steve Hogan and Sean Murphy to discuss lessons learned asking questions to foster innovation.
Christoph Guetter suggests in “The eye is a window to the brain; but who’s looking?” that the micron scale resolution of optical coherence tomography (OCT) for in vivo cross-sectional imaging of the human retina may allow earlier and more accurate diagnoses of several common neurodegenerative disorders: Multiple Sclerosis (MS), Alzheimer’s disease, Parkinson’s disease, and amyotrophic lateral sclerosis (ALS).
Panel sessions Feb 22, 2012 on Innovator’s DNA Skill #1 Associating. Terry Frazier of Cognovis, Steve Hogan of Tech-Rx, and Sean Murphy of SKMurphy.
Steve Hogan and Sean Murphy walk through a five part webinar series on “The Innovator’s DNA” by Jeff Dyer, Hal Gregersen,and Clayton Christensen. Sean thinks it’s the best book on innovation and entrepreneurship for 2011 and useful for any team that is trying to innovate. Each webinar will be in a roundtable format and include first time entrepreneurs and experienced innovators discussing lessons learned applying the five key discovery skills described in the book.
I caught Interstellar over the weekend and was mesmerized for the entire three hour runtime. Coop the astronaut/farmer falls goes exploring and falls down a series of rabbit holes that take him far from home. It’s a movie that celebrates exploration and continually triggered my sense of wonder if only because none of the protagonists are fearless action heroes but all too human in their desires to return home safely and be re-united with families and loved ones. I don’t want to say too much about the plot not because of all of the twists and turns but I think the movie is best appreciated by not knowing how it’s going to turn out.
Q: Should I ask prospects if they would use my product? How do I interpret “yes”, “no”, and “maybe.”
Q: I struggle with the value proposition for our product. Either I am too abstract “we offer a positive return on time invested” or too vague “help increase your ability to manage critical challenges.” Do you have any suggestions for how to frame or formulate a value proposition?
Here a few questions that a value proposition normally addresses
Entrepreneurial passion has to be based on a desire to create value, to be of service to a set of target customers. There may be many things you are interested in learning and room enough in your life for several hobbies, but pursuing a passion without regard to your ability to provide value in a way that is competitively differentiated is to pursue a hobby.
A documentary on entrepreneurship as a calling that I found very compelling was “The Call of the Entrepreneur” produced by the Acton Institute. It addresses both practical and spiritual aspects of entrepreneurship from the point of view of three very different entrepreneurs:
- Brad Morgan, a dairy farmer in Evart, Michigan who transforms a failing farm into a successful dairy and compost company.
- Frank Hanna, a merchant banker in New York City who explains how entrepreneurship transforms the economy into a positive sum game.
- Jimmy Lai who grew up in Communist China and then Hong Kong, emigrating to New York to found retail and media companies.
Q: What are logos good for?
An image is processed by a different part of the brain than a word or phrase, making it both memorable and evocative in ways that are distinct from the name of your company. Having a logo for your company or product makes it more memorable and allows you to suggest connotations that can be put into words.
I have put together a table of a couple of icons or logos that we used and the word or phrase that the replaced. The first version of the SKMurphy logo was just a text treatment as was the first version of the Bootstrapper Breakfast. You can judge for yourself if adding some simple artwork changed your opinion of what each represents.
These are excerpts from Episode 9 of Outlier on Air: Tristan Kromer, A Lean Approach to Business. They are in the same sequence the took place in the interview but a number of stories and asides have been omitted to focus on what I felt were some extremely valuable insights from Tristan Kromer on clarifying and testing customer and value hypotheses.
Map the customer buying process, needs, and situation before you invest time sending a detailed proposal. A quick request can mean you are column fodder.
Q: We are still trying to close our first paying customer. We have a website up and have talked to a number of people. More or less out of the blue we got a call from someone in a large firm who had looked at our website. They asked a few questions about our product and then said “Great! Send me a detailed proposal including pricing!”
At last a stranger recognizes the brilliance of your solution in just a few minutes of conversation! How often I tell myself that. How rarely it’s true, especially when you are just starting out with a new product or in a new market. You have to ask yourself:
- Do they really know enough about what we do to be able to start a purchase order?
- Do I know enough about their situation to be able to calculate our likely impact on their business and their return on investment?
- How can I justify the price to value in the proposal?
- Have I addressed the critical implementation and proliferation roadblocks we will face from pilot to production use?
You May Be Column Fodder
More often than not you are actually “column fodder” or a makeweight needed so that they can prove to their boss or the purchasing/finance team that they did a thorough job and solicited three bids. Especially if you don’t know much about their situation and they have not asked for a detailed demo you need to proceed a little more slowly.
Map The Customer Buying Process
Before you submit a proposal I would ask your contact these questions to get a better sense of the situation, in particular you need to learn as much as possible about who will make the decision and how they will make it (the customer buying process).
- Can you describe the process for making a decision after we submit this powerpoint proposal, who else is in involved, what questions are they likely to have?
- Who has to make the final decision to actually sign a contract?
- Can you provide an example of a standard contract so we can understand your typical deal structure and terms and conditions.
- Can you give some examples of other deals that your company has done in the last three years that might serve as a model for how our business relationship would work?
Understand Their Needs and Situation
You want to be easy to do business with but that requires that you have a thorough understanding of their needs. I would not send a powerpoint presentation, but ask for time to present it (if only via Webex/GoToMeeting) so that you can answer any questions that they have in the moment. I would also dry run this presentation with your contact if they are open to it. If they just default to “send me a detailed proposal” it’s probably not a real opportunity.