In the past weeks, I’ve reflected several times on the essential ingredients for building the perfect Segmentation cocktail. Today I’ll address the final ingredient: What risk do they tolerate?
Naming it – and then acting on it makes all the difference.
Somehow most of the SaaS vendors I see want to sell to the innovators, but in reality, they serve the early and late majority. This mismatch in what they think they are and what they actually are hurts them: in terms of credibility, competitiveness, and performance.
Just because we create value by leveraging technology doesn’t mean it’s always innovative or for the innovators. So the trick is bringing this in balance and being good about it. It can be very lucrative to build for the early/late majority. So let’s stop pretending otherwise.
Each stage of Rogers’ innovation adoption curve comes with a different risk profile, so blending this into your segmentation cocktail helps make it perfect. This way, you can optimize your product experience around it, and build high levels of trust.
- The first step is to clarify their risk attitude: Is your ideal customer risk-averse, risk-neutral, or a risk lover?
- The second step: Can you name the risk specifically? What risk would be non-negotiable, and what’s OK? Be concrete. Often the risk averseness is highly focused on one or two areas. Addressing this – i.e., naming it – helps you become attractive to those customers
Assess how sensitive your customers are to the dozens of risk factors out there:
- Regulatory compliance toward their customers
- Privacy and data security
- Their environmental sustainability profile
- Their credit rating/stock stability
- Brand reputation/market acceptance, and so on
𝗪𝗵𝘆 𝗶𝘀 𝘁𝗵𝗶𝘀 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝘁𝗼 𝗯𝗹𝗲𝗻𝗱 𝗶𝗻𝘁𝗼 𝘆𝗼𝘂𝗿 𝘀𝗲𝗴𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻 𝗰𝗼𝗰𝗸𝘁𝗮𝗶𝗹?
Because this is important to them. It’s what they feel strongly about.
So instead of talking around it – address it upfront. If your ideal customer is one where operational hick-ups are non-negotiable or whose brand reputation needs to be spotless, spell that out. This defines them – so they’ll look for vendors that get that
𝗠𝘆 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝗳𝗼𝗿 𝘆𝗼𝘂 𝘁𝗼 𝗿𝗲𝗳𝗹𝗲𝗰𝘁 𝘂𝗽𝗼𝗻
Are you spelling out the risks your customers are most sensitive about on your homepage? What if you would?