Every start up company faces the challenge of winning that first customer. The typical strategy is to pursue as many customer leads as possible in a mass marketing campaign. The logic is that if you call upon 100 customers one will say “yes!”
It has been my experience this mass sales outreach strategy is flawed and rarely produces satisfactory results. This is especially dangerous for a start up company with limited funding. Image the cost impact of making 100 sales call including the cost of designing such a sales campaign, the creation of a 100 sales packages, the actual cost of executing a 100 sales presentations, then the follow up cost as some customers ask for more information and then most crushing, the potential that no orders are signed.
The sales path that I coach start up companies on is based upon Geoffrey Moore’s pioneering success selling new technologies solutions. This sales strategy is built upon identifying targeted customers that are in such extreme pain that your sales proposal looks like the fire extinguisher to their burning platform.
Geoffrey Moore is a thought-leader on technology change and serves as advisor to Mohr Davidow, one of Silicon Valley’s most successful venture capital firms. Moore’s book Crossing The Chasm pioneered best practices for generating new technology market success that is widely followed among IT companies. His newest book, Escape Velocity, moves his research onto the question of how companies and emerging technologies interact to institute change. This new book’s focus is on freeing “your company’s future from the pull of the past.”
This video interview with Geoffrey Moore outlines his insights on how new technologies and new businesses can be successfully marketed. It is a must watch for every green business owner.
Bill Roth is the founder of Earth 2017, a company that connects businesses with customers who are seeking smart, healthy and green solutions. His book, The Secret Green Sauce, profiles businesses and their best practices in pricing, marketing and branding for making money going green.