Lessons Learned: Validated learning about customers

The problem stems from selling each customer a custom one-time product. This is the magic of sales: by learning about each customer in-depth, they can convince each of them that this product would solve serious problems. That leads to cashing many checks. Now, in some situations, this over-selling would lead to a secondary problem, namely, that customers would realize they had been duped and refuse to re-subscribe. But here’s where a truly great sales artist comes in. Customers don’t usually mind a bait-and-switch if the switched-to product really does solve an important problem for them. These salesmen used their insight into what their customers really needed to make the sale and then deliver something of even greater value. They are closing orders. They are gaining valuable customer data. They are close to breakeven. What’s the problem?

This approach is fundamentally non-scalable. These founders have not managed, to borrow a phrase from Steve Blank, to create a scalable and repeatable sales process. Every sale requires handholding and personal attention from the founders themselves. This process cannot be delegated, because it’s impossible to explain to a normal person what’s involved in making the sale. The founders have a lethal combination of insight about what potential customers want and in-depth knowledge about what their current product can really deliver. As a result, potential customers are being turned away; they can only afford to engage with the customers that are best qualified.

Another great article from startuplessonslearned.blogspot.com.

The key phrase if "This approach is fundamentally non-scalable."

This reminds of every company I have ever worked at. But, one in particular stands out. If you know what I am talking about, holla!

Posted via web from Structurally Sound Treehouse

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