If your company provides complex technical solutions with million-dollar price tags, then you know the struggle all too well: the long, expensive sales cycles and rapid commoditization.
Capabilities vs Value: Simplifying Your Technology's Messaging
As part of SoCal BMA's "The Leading Edge" executive signature series, this presentation was delivered by Carla Fitzgerald, Chief Marketing Officer, Smith Micro Software on February 18, 2015.
Unfortunately, in the fast and ever-changing tech industry, the innovations we are so proud of are fleeting, and can actually become a deficit for your messaging. Too much focus on advanced technology can cause us to miss the mark and alienate buyers -- like trying to sell “microwaves to cavemen.” We have been conditioned to provide every sort of competitive matrix and standards compliance checklist, only to further drive prospects into a state of analysis paralysis. And then we wonder why it’s taking so long for the customer to make a decision!
As business leaders in tech, we all run the risk of falling into the black hole of technology jargon, placing too much emphasis on architectures and feature sets -- and not enough on what buyers really care about: Value. Ask yourself:
- Does your organization spend hundreds of man-hours on RFIs/RFPs and technical presentations only to learn that your prospect chose an “inferior” competitor?
- How often is your sales team directed to “sell high” -- only to get pushed down by prospects to their technical evaluators?
- Are your website, marketing collateral and presentations focused on what your product does, instead of why it matters?
In her presentation Carla Fitzgerald addressed:
- The perils of getting caught up in the feature-comparison game
- Simple ways to determine if your messaging is overly complex
- The importance of “value” as the driver of both internal and external communications
It’s easy to fall into the technical jargon trap, and critical to avoid it if you want to gain trust and “buy in” from your customers and prospects. Whether you are responsible for message development as a marketing exec, or message delivery as a sales or business executive, this event is for you.
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2. Agenda
• My Background
• The Feature Trap
• What is VALUE?
• 4 Ways to Express VALUE Simply
• War Stories from Tech Warriors
(a.k.a. panel session)
#socalbma
3. • Synergy
• Leverage
• Optimize
• Intelligent
• Industry-leading
• Empower
• Turnkey
• M2M
• IoT
• Big Data
• Paradigm Shift
Just for fun: Buzzword Bingo!
Grab some collateral, find these overused words:
#socalbma
4. Sectors:
• Enterprise IT
• Risk & Compliance
• Search Marketing
• Mobile/Wireless
…and the Scars to Prove It
26 Years in Technology
Roles:
• Technical Support
• Security Administrator
• Systems Engineer
• Product Manager
• Business Development
Manager
• VP Technology Delivery
(Pre/Post-Sales)
• VP Marketing/CMO
for 15 years!!!
#socalbma
6. Problems with Technical Messaging
“It all sounds the
same!”
“Please
complete this
90-page RFP.”
“Let’s have a
BAKE-OFF!”“This is
overwhelming…
we’ll wait and
see…”
#socalbma
7. 4 Hard, Cold Truths
The “BEST” product does not always win.
You can meet all “criteria” and still NOT win.
You can “win” and still not SELL something.
You do not determine your product’s VALUE,
the buyer does.
#socalbma
10. Value is Emotional.
“Positioning in the age of the
empowered consumer has to be
much more emotional, and must
allow the consumer to identify with
and relate to the brand…”
HBR: Beyond the 4Ps: A New Paradigm Emerges
#socalbma
13. “FUD”: Fear, Uncertainty and Doubt
CIO Magazine, 1993
“Never again will
you worry…”
“…complete
peace of mind.”
“So why take
a chance?”
“…make UNIX
safe for you.”
#socalbma
14. FUD - A Timeless Marketing Strategy
Y2K - 1999
SOX - 2002
Data
Tsunami
2011
#socalbma
15. PRIDE - Also a “Winning” Strategy
“Imagine Yourself Running a Global IT Organization…”
CompuerWorld, 1997
#socalbma
16. People Love a HERO
http://carpathia.com/hero/overview
#socalbma
17. VALUE is in the eyes of the beholder. #socalbma
Aligning value with brand strategy
18. Know Your Audience
GRAND IDEA: Reposition from “Application Tools” to
SOX Compliance Solution
#socalbma
20. 4 Ways to Simplify Your Messaging
Lead with the outcome.
Follow the ONE rule.
Keep Asking WHY?
Use metaphors and stories.
#socalbma
21. Lead with the Outcome
“We can help you increase the
percentage of online visitors that
actually complete a purchase by 10
to 15% by making it easier for them to
find what they are looking for.”
“We analyze transactions and clickstreams
and combine that with sentiment analysis and
text analytics to provide you with deep insight
into what your buyers are doing and thinking.”
http://blogs.gartner.com/hank-barnes/2013/08/28/messaging-in-technology-marketing-stinks-but-improvement-is-possible
Predictive Analytics in Retail:
#socalbma
22. Follow the “One” Rule
“Leave the reader with one provocative
thought that he or she didn’t have before.
Not two thoughts, or five—just one.”
—On Writing Well, by William Zinsser
http://www.methodologie.com/one-rule-for-clear-content
#socalbma
23. What’s the ONE important TAKE-AWAY?
Our strong 2007 results
reflect the performance of
a balanced portfolio of
higher-growth, innovation-
driven businesses that
align with current and
emerging customer needs
worldwide.
Our strength is our
balance. A balanced
portfolio helped us
achieve strong results last
year, and by avoiding
exposure to the volatility
of individual markets we
have a solid foundation
for future success.
BEFORE AFTER
#socalbma
24. Use Stories and Metaphors
Explaining the “Higgs Particle”
http://www.ted.com/talks/brian_cox_on_cern_s_supercollider
#socalbma
25. Know WHO, then keep asking WHY
V 1.0
Announcing NetWise Captivate, a
context-based policy platform that
harnesses mobile activities in real time to
provide insights into consumer behavior
and identify the ideal circumstances to
engage consumers.
#socalbma
26. Know WHO, then keep asking WHY
v 7.0
Announcing NetWise Captivate, a new
mobile platform that allows marketers and
wireless service providers to create more
personalized brand experiences for their
customers using smartphones.
#socalbma
27. In Summary: VALUE Trumps Capabilities
VALUE tied to emotion evokes action.
VALUE is in the eyes of the beholder.
VALUE explained SIMPLY is memorable.
#socalbma
28. Carla Fitzgerald
Chief Marketing Officer
Smith Micro Software, Inc.
SmithMicro.com
@smithmicro
@socalbma #socalbma
SoCalBMA.org/Events
B2B Tech Marketing is Complex
Long sales cycles, multiple stakeholders, competitive markets
Technical differentiators are unsustainable
Messaging needs to focus on Value instead of features
Value is not just about money, it is emotional
Tech language is emotionless
Common Messaging Mistakes:
Focusing on HOW instead of WHY
Assuming audience fully understands the problem
Believing market is more mature
Forgetting customer is overwhelmed and has a business to run
3 Key Questions to Answer:
Why do anything, why do it with us, why do it now?
Messaging tips:
Lead with the Outcome
Focus on 1 main idea
Expose the C&I (negative consequences and positive implications)
--
Comments from call:
Terri - Authentic messaging – 1 to many of marketing doesn’t always work well 1 to 1 – sales teams need to understand and make it there own to be authentic; they differentiate by not talking about the technology, otherwise it becomes commodity and price battle on features
Jason – sales people get stuck in their ways, need to think outside box on value and not use same 1 message with every prospect
Katie – customers with websites that don’t talk to the problem or value – difficult for agency to support them
Gary – customers case studies that prove out the marketing value prop are the most effective way to communicate; disruptive technology first requires prospect to recognize they need to change – it’s emotional
Carla to send questions in advance:
- preparing small teams vs. large teams with messaging
What about early companies that don’t have references yet?
The perils of getting caught up in the feature-comparison game
Simple ways to determine if your messaging is overly complex
The importance of “value” as the driver of both internal and external communications
Key Take-aways:
Positioning and messaging start with WHO
WHY is just as important as WHAT
VALUE is emotional
HOW only matters if it adds VALUE
Because tech moves quickly, is highly competitive, and we don’t’ want to be commoditized, we use these things to show how we’re DIFFERENT.
Tell ALL the things my product CAN do..
Since it all sounds the same, I need to compare everyone on a standard scale (RFP)
Since it all LOOKS the same on paper, let’s try it out! (Bake off)
Since I’m not convinced of the value, and everything is changing fast, let’s wait.
Differentiators are unsustainable
Feature-price wars
Microwaves to cavemen
Since our objective is to SELL SOMETHING, complex technical messaging does not help us achieve that goal.
Raise your hand if you have personal experience with these hard, cold truths…
1- Money (Make, Save, Avoid Losing)
2- Time (Save, Reallocate) – Reclaim opportunity cost of spending time elsewhere
3- Peace of Mind (Risk Avoidance) - “Nobody ever got fired for buying IBM”
4- “Winning” (Personal Success) – becoming a hero in the organization, personal aspirations
Avoid Negative Consequences, Achieve Positive Implications (C&I)
https://www.youtube.com/watch?v=ib3Y-Q3QnOk
value [val-yoo], noun
1- relative worth, merit, or importance:
“the value of a college education”
2- estimated or assigned worth:
“a painting with a current value of $500,000”
“Nobody every got fired for buying IBM.”
Why do anything?
Buyer recognized and admits to having a problem/desire.
Buyer believes there is a technology solution.
Buyer believes value of a solution is greater than cost (and opportunity cost).
Why do it with us?
Buy trusts that we can deliver the desired outcome within buyer’s restrictions (budget, timeframe, compliance, etc.)
Why do it now?
There is a significant negative consequence of NOT doing it (business and personal)
There is a significant positive implication (reward) for doing it. (business and personal)
FUD coined by Gene Amdahl, 1975, Amdahl computers, after leaving IBM.
Aspirational
http://carpathia.com/hero/overview
We all want to be loved, and people love a hero.
Helping someone become a HERO in their org is highly valuable!
How many of you think that increasing revenues by $40M over 3 years would be highly valuable to your customer?
Replace homegrown solution: 4X increase in revenues over 3 years, > $40M dollars – NOT INTERESTED! We tried to sell them a better mousetrap: product manager was excited, but his boss’ boss was looking for $100M ideas and ways to reinforce the BRAND message. He wants to be a HERO!
So to get the VALUE message right, you need to Know Your Audience.
You might assume that prevention is better than a cure? Not always!
The SOX audit must take place each year REGARDLESS, and a list of violations that were remedied is just as good preventing them at the source.
Auditors don’t care how the software works – competitive differentiator was meaningless.
Lead with the Outcome
Provide context by introducing how you can deliver the outcome (what you do)
Explain why this is important and something they need to prioritize highly (situation and impact)
Walk them through how you do it —either at a business level, or a technical level–depending on the audience.
Take apart the message and count the ideas
Pick out the main idea
Keep the relevant (i.e. supporting) ideas
Create new messages for other ideas
Many “explainer” videos, but a picture with a metaphor can be just as powerful.
Watch Brian Cox, Particle Physicist giving a TED talk in 2008 asking Margaret Thatcher for funding for the super collider, and he needs to explain what the research is for…
Who is the target audience? A technologist??? Context-based – why does that matter? Real-time? What do you need insights for? Engage consumers???? WHO and WHY SHOULD THEY CARE???
B2B Tech Marketing is Complex
Long sales cycles, multiple stakeholders, competitive markets
Technical differentiators are unsustainable
Messaging needs to focus on Value instead of features
Value is not just about money, it is emotional
Tech language is emotionless
Common Messaging Mistakes:
Focusing on HOW instead of WHY
Assuming audience fully understands the problem
Believing market is more mature
Forgetting customer is overwhelmed and has a business to run
3 Key Questions to Answer:
Why do anything, why do it with us, why do it now?
Messaging tips:
Lead with the Outcome
Focus on 1 main idea
Expose the C&I (negative consequences and positive implications)
--
Comments from call:
Terri - Authentic messaging – 1 to many of marketing doesn’t always work well 1 to 1 – sales teams need to understand and make it there own to be authentic; they differentiate by not talking about the technology, otherwise it becomes commodity and price battle on features
Jason – sales people get stuck in their ways, need to think outside box on value and not use same 1 message with every prospect
Katie – customers with websites that don’t talk to the problem or value – difficult for agency to support them
Gary – customers case studies that prove out the marketing value prop are the most effective way to communicate; disruptive technology first requires prospect to recognize they need to change – it’s emotional
Carla to send questions in advance:
- preparing small teams vs. large teams with messaging
What about early companies that don’t have references yet?