Understanding what your customers really need and value is critical to your success
Do you really understand your customers?
It’s often said that when someone buys a drill, they do so because they actually need a hole, not the drill itself. While there will always be exceptions, it is essentially true that we buy a product because of the benefits it offers us, not the features or attributes of the product. I recently received an offer from company X of a new mobile phone with 8k screen resolution: as a consumer I might convince myself that I really need that level of display clarity, while actually my real need is to be seen with the latest technology. The premium price of the product reflects company X’s understanding of the value of meeting that real need. (By the way, I’m not buying the phone)!
Such an understanding of what customers really need, and therefore what they really, really value, is central to marketing success. However, this approach can be challenging for start-up businesses with a strong technology orientation and limited budgets. With many years invested in developing a game-changing technology, it can be difficult to step back and assess how to translate that technology into a highly marketable product that delivers great value to customers. However, it is a vital step to maximise the start-up’s chance of success, whether selling to businesses or consumers.
This understanding of customer needs to be at the heart of your marketing activity. It will help you to determine the best target segments, the appropriate routes to market, the most impactful communications and, very importantly, the pricing approach that best reflects the customer value that you are enabling.
The world is facing the challenges of delivering more energy, to a growing global population, while lowering CO2 emissions. It is vital that new technologies which can really contribute do not fail because of the marketing approach. Getting this right for your offer benefits us all: your business, your customers and broader society.
It doesn’t have to be difficult; you just need to find the right partner. At Catalytica we are highly experienced in successfully commercialising new technologies in the energy sector. Contact us at value@catalyticagroup.com to learn how we can help you to help all of us to a brighter energy future.
