Capabilities vs Value: Simplifying Your Technology's Messaging
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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. Visit http://www.SoCalBMA.org/Events to view our Events Calendar.
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Capabilities vs Value: Simplifying Your Technology's Messaging
- 1. Capabilities vs. Value: Simplifying Your Technology’s Messaging Carla Fitzgerald CMO, Smith Micro @socalbma #socalbma @smithmicro
- 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
- 5. • Features-Benefits • Architecture • Methodology • Industry Standards Typical Technology Messaging #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
- 8. What is VALUE? #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
- 11. Emotion is Alive in the Workplace #socalbma
- 12. Emotion Motivates Action “Why do anything?” “Why do it with you?” “Why do it now?” #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
- 19. VALUE must be easy to recognize. #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
- 29. Capabilities vs Values Simplifying Your Technology’s Messaging #socalbma February 18, 2015
Editor's Notes
- 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?