As the CEO of Leadle Consulting, a forward-thinking sales consultancy, I've interacted with numerous entrepreneurs filled with excitement about their software product, each one convinced they're on the brink of disrupting the existing markets. Admittedly, I approach these claims with a mix of skepticism and intrigue, but occasionally, I'm genuinely astonished by the product's potential. With its solution-focused approach, competitive pricing, and in some cases a unique selling proposition (USP) that sets it apart in a crowded market, these products and services seem poised for significant market growth and expansion.
The anticipation builds towards the product launch, a critical moment envisioned to validate the market's demand for such innovations. Entrepreneurs often believe that given the product's intrinsic value and the positive customer feedback during the early stage of development, minimal marketing efforts would be required. After all, how could such a groundbreaking product struggle to attract customers?
However, the reality of the launch day can be starkly different—echoing silence instead of the expected customer interaction and engagement. Despite assurances of efficiency and cost savings, the rush of new clients doesn't materialize. This unexpected turn of events generally sends entrepreneurs into a state of urgency. Yet, with patience and a commitment to understanding consumer behavior, this hurdle is not insurmountable. It requires deploying customer support resources effectively, enhancing the team member's ability to engage proactively with the target audience, and refining the product management processes to align with the customer's expectations.
In analyzing why market-disruptive products often face a challenging start, my experience reveals a few core obstacles:
A) The comfort of the status quo has a potent inertia. The need for a better solution, though clear to us and underscored in our product's design and capabilities, may not be as apparent to the target market.
This misalignment underscores the importance of comprehensive Go-To-Market strategies that are not just about showcasing product features but are deeply ingrained in shifting consumer sentiment and ensuring that the products and services we offer are seen as essential, thus achieving product-market fit.
A prime example of this challenge can be seen in Procter & Gamble's launch of Ariel in the early '90s in India. Despite the product's innovative approach to simplifying laundry—a task universally disliked—there was an initial reluctance to abandon traditional methods. The key learning here is that consumer sentiment analysis is crucial. It revealed that addressing market problems directly through relatable content could pivot the product from being a mere option to a necessity in the consumers' eyes.
The subsequent marketing campaigns for Ariel cleverly tackled this hurdle. They didn't just promote a software business as a mere convenience— they positioned it as a transformative solution that respected traditional values while offering a modern alternative. This strategy exemplifies the essence of effective product marketing campaigns and underlines the necessity of continuously revising and refining marketing and sales strategies based on direct customer feedback and interaction.
You would expect this to work. But it did not.
B) Acknowledging the problem and the need for a solution is a crucial step, yet often, for various reasons, the proposed solution does not immediately resonate as THE solution among target customers. This phase is critical in the journey of achieving product-market fit, particularly for software companies venturing into existing markets with innovative solutions.
In the context mentioned above regarding the detergent scenario, when the marketers at the company undertook consumer sentiment analysis to gauge the target audience's perception of the product, they encountered an interesting dichotomy. Most women recognized it as a valuable software product, appreciating its unique features and the potential to significantly ease their workload. However, when it came to the crux of customer interaction—whether they would switch to this new product—the response was hindered by perceived cost barriers—a common challenge in marketing and sales strategies for disruptive technology sales.
This feedback loop is a critical component of product management for companies, especially startups aiming for rapid market entry and expansion. It highlighted a crucial gap in product pricing strategies that could impede market growth despite having a significant market demand for such innovative solutions.
Armed with this market research, the company, focusing on addressing market problems, realized the necessity to articulate the value proposition more clearly. Ariel's unique selling proposition (USP) was its ability to streamline the washing process, effectively making it a more cost-effective solution. This realization facilitated a shift in marketing strategies aiming at overcoming consumer objections by clearly illustrating how the product's pricing was indeed beneficial in the long term, thus enhancing customer satisfaction.
To communicate this effectively, the brand decided to revamp their product marketing campaigns, centering around the product's features and its comparative cost advantage, addressing an essential aspect of consumer behavior—value perception. These efforts in addressing consumer feedback and adjusting the service offers were pivotal. This not only presented Ariel as an economically viable option but also reinforced the importance of customer support resources in nurturing customer loyalty and trust in the brand.
Their readiness to pivot, backed by a comprehensive understanding of the target market, product features, and effective use of human resources, set a precedent for software product companies. It illustrates the significance of flexible product launch strategies, including product pricing and customer feedback mechanisms, in securing market validation and ultimately, achieving product-market fit.
C) Acknowledging the challenges, especially when the problem and solution are both recognized, is key in the software business. However, due to complexity and the driven milieu, target customers might be unable or unwilling to cross that line and accept your software product. This hurdle can stem from an amalgam of factors and generally presents some of the most difficult customer objections to overcome.
Moving forward with the P&G detergent example as a learning model applicable to software companies in their early stage, another round of market research for disruptive products offered surprising insights. Despite recognizing the software product's innovative potential and acknowledging that it was competitively priced—factors critical in achieving product market fit—the ultimate customers based refusal struck a strong chord.
The primary objection was rooted in how P&G's product marketing campaigns presented their product. Ariel was marketed as a product that drastically cut washing time - a proposition that inadvertently signified a threat to their societal role. This insight underscores the importance of understanding customer behavior and worldviews, a critical factor in tailoring impactful product launch strategies.
Studying this customer feedback, P&G product management team adapted their strategy to overcome consumer objections. They revised their Unique Selling Proposition (USP) to position Ariel as the smart choice that allowed housewives to utilize their time better, catering to their family's needs. Equipped with more sensitive and resonant messaging that considered customer sentiment analysis, Ariel was now seen as a beneficial addition rather than a symbol of disapproval.
Within months following these revisions, Ariel's market demand skyrocketed, validating their market entry and market validation strategies. This example, despite originating from a distinct context at a TIE event, holds valuable insights for software companies and entrepreneurs ready to sell a disruptive product.
For instance, the case study above serves as a stark reminder of the importance of diligent market research, informed Go-To Market strategies, and the relevance of considering societal insights while positioning products and services. An innovative idea or disruptive innovation in the market needs more than just product building and selling efforts—it demands a comprehensive understanding of the target audience's perspective to foster customer satisfaction and loyalty.
Therefore, if you have a great product that's not hitting the expected growth rate, don't get disheartened. It might be an opportunity to invest in a sales consultancy like Leadle Consulting and their market-fit services like SDR Accelerator Program and RevOps, to redefine your entrepreneur sales strategies. Iteratively researching, analyzing, and adjusting your market approach based on customer interaction and responses are as crucial as addressing technical glitches during product creation.
This journey may sound arduous but remember, even the most successful disruptive technology sales started from somewhere. The key is to approach each phase — from product ideation, feature building, to market expansion — with persistence and adaptability.
Are you facing this exact same problem? If yes, drop me an email at harinie@leadle.in. I do not have all the answers, but I am sure we could have an interesting discussion, and you would definitely get on the way to selling better.