What's your ability to attract customers that are prepared to pay a premium?

Yesterday, we focused on this intriguing question in the CMO Mastermind pilot that I recently started. A fascinating discussion followed. And it struck my mind what dust this threw into the air.

First of all: All participants gave themselves a low rating. Honesty matters. It prompts me to raise the question: Why?

What followed was this:

  • The internal fear of segmenting too narrow. We prefer to shoot wide, spreading out a large net, hoping to catch more fish. It leads to one problem: Poor Quality. All it does is make the metrics look good – but it’s super costly for anything that follows.
  • Deliberate vagueness in our messaging. We shy away from being clear, and that’s a problem when you want to attract people that are prepared to pay a premium
  • The internal fear to seen as ‘too expensive.’ Instead, we lure people in and shock them later once they have nowhere to go. Nasty. Remember: Money is a story in the minds of our prospects. It’s about one thing: valuable or not valuable

The reflection led to a couple of interesting takeaways:

  1. First, we need to be OK with scaring people away. Clarity only gives winners. Don’t underestimate the cost of a customer that churns because they feel misled.
  2. Context is everything – tear it apart – and this starts with deeply understanding the pains and challenges of our ideal customer.
  3. Be upfront in managing expectations about the ‘total investment’ to deliver the desired impact. Transparency is king.

 


Question to reflect upon: 

What’s your ability to attract customers that are happy to pay a premium with your B2B SaaS business?


 

Next steps? 

Want to solve the challenge of attracting customers prepared to pay a premium?

The easiest way. Book a free call to explore if there’s a fit to do this together.

Otherwise – here are three other options

 

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About the author

Sales Pitch

Ton Dobbe is a former B2B software product marketer who's on a mission to save mission-driven SaaS CEOs from the stress of 'not enough' traction. He's the author of The Remarkable Effect, the host of the Tech-Entrepreneur on a Mission podcast, and writes a daily newsletter on the secrets to mastering predictable traction.