In every business, there are things we need and things we want. There’s nothing special about that – until your software product is the subject of choice.
In business software, we categorize things we need as ‘a cost of doing business.’ Just think about accounting software, CRM, order management, procurement, and so on.
The problem offering a solution that’s perceived as a ‘cost of doing business’ is in your ability to determine the price. The fact your customer perceives you as a ‘cost’ means they seek to pay less, not more – not good for your negotiation position, not good for your margin.
Now, why does your customer continues to behave like this? It’s because no one tells them differently. And that’s your opportunity.
To break the virtuous cycle of racing to the bottom, you have to change – not your customer, not by creating a different solution, but by finding a way to change your customers’ perception effectively.
Once they start seeing your solution as an investment rather than a cost, everything changes. Suddenly there’s a desire and preparedness to pay a premium, rather than asking for the easy discount.
Remarkable software businesses master this like an art. They change perception by selling the idea, not the product. They understand their ideal customer inside out and know what they aspire to become.
And that’s what they pinpoint as the red thread throughout their communication.
Instead of talking about all their cool features, they prioritize telling stories about the transformation this facilitates. Stories about creating a position of advantage for their customers.
Doing so establishes a critical connection between them and their sweet spot market, and that accelerates everything.
If your customers continue to see you as a cost of doing business, I can help. Send me a DM.