TL;DR Instead of asking ‘Whom do we sell to?’ we’d better ask, “Who gladly buys from us?”
The question “Whom do you sell to?” resulted in a valuable discussion in the monthly case-study track of our B2B SaaS CEO Mastermind this Thursday.
Our guest responded like this:
“Something I learned over time and was a big mistake of ours is that we never really chose who our customer is. We were always like, yeah, b2c, b2b, freelancer, agency lawyer – it doesn’t matter – we built our product for everyone.
Last year, we said, okay, B2C, no, let’s go B2B. And then, within b2b, let’s focus on digital agencies, and from there, we slowly, but steadily, figured out our core segment.”
My immediate response to that was: “What happened?”
“Short term, our revenues shrank. But……then, slowly but steadily, more quality revenue started to come in. Retention started to grow. We saw better expansion, and lifetime value grew as a consequence. So, short-term pain for long-term gain.
Here’s the thing
There’s good customer revenue and bad customer revenue.
Just because your functionality (the What) meets the requirements of a particular customer doesn’t make them an ambassador.
For that to happen, it’s critical to mix in ‘the How.’
No single solution is built equal – which makes a big difference in what happens next.
The consequence: to one type of customer, you have to sell like your life depends on it, whereas the other kind of customer will buy from you and gladly pay a premium.
To experience that is a choice. And only you can make that choice
Question for you to reflect upon
What characterizes the customers that buy from you no matter what?
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