The Case For Bait Marketing Using Your MVP
Implement Bait Marketing using your monetized value proposition (MVP) to grow your technology company at scale and maximize your exit valuation.
Technology is good: The value of technology to improve company fortunes, to improve revenue and eliminate waste, cost and expense, is why the market demand for technology products and service is so great! The market demand for technology will only increase as buyers begin to understand the value or “goodness” of technology to improve their company and improve their bottom line! This “goodness” is the monetized value proposition (MVP), technology companies bring to their prospects in solutions.
A company’s motivation to purchase technology is found generally in 3 areas:
- Want: the product or service allows the prospect to exploit advantages in the market
- Need: the product or service allows the prospect to reduce cost or increase efficiencies
- Required: compliance is required to remain in business
Despite the company’s motivation, the difficulty in selling technology is that most technology buyers are non-technical buyers, which are over 90% of the market, and are unsure of where and how to apply technology to improve their business, don’t know what clarifying questions to ask, and often don’t understand the answers their given.
Non-technical buyers operate in 3 areas and are only slightly aware of the value of technology to improve their business:
- Looking: for tactical solutions
- Listening: to leaders
- Learning: interested in strategic impact
Prospects need to know what the technology product or service will do for their business first (your monetized value proposition – MVP) before they care how your company operates or how your services are designed.
Technology companies should not explain how their technology works, but rather show the monetized value proposition of their service or products to improve their prospect’s company, and by how much, giving the prospect a reason to care!
Nothing happens until a sale is made. New sales are the lifeblood of every technology company. And every technology company should prioritize new customer acquisition if they want to grow at scale and maximize their exit.
Too many technology companies don’t know how to consistently attract new customers to their products or services. These companies should implement Bait Marketing, using their monetized value proposition (MVP) as their bait to grow their company at scale and maximize their exit.
What is Bait Marketing? How do you catch something you can’t see? Bait Marketing is a “pull” marketing strategy that combines the lure of lucrative personal and company information as bait that motivates the prospect and gives him reason to call.
Bait Marketing hits on all 3 non-technical buyer areas:
- As a tangible number
- Provides leadership insights before engagement
- Has strategic financial impact as its main goal
What is MVP and why is it the perfect bait? Your MVP is your monetized value proposition and represents the most good you can do for your prospect’s business to increase their revenue, reduce their cost, or both, by implementing your technology products or service to do so.
Tangible benefits of Bait Marketing:
- Provides hot leads that buy sooner and more often
- Prequalifies prospects by showing them a predetermined value
- Merchandizes your bait by presenting samples, examples, demonstrations, and results
- Hits on all 3 buying areas: as a tactical expression, leadership insights, and makes a financial impact
- Is independent, nonintrusive, scales, is personal and persistent
- Differentiates you from competitors without a demonstrable value proposition
- Is much more efficient and affordable than direct prospecting and sales
Why direct prospecting and sales won’t grow your technology company:
Smart buyers are insulted by direct tactics they see as a nuisance and manipulation of their time and attention. Moreover, besides being statistically unsuccessful, direct prospecting is expensive in the long sales process and unsuccessful sales representative turnover and training and repeat process.
There isn’t enough differentiation in technology services, or the prospect’s understanding of them, to create demand at scale using direct prospecting sales, as evidenced by the fact that nearly 50% of all Sales Executives fail in 10 months or less.
Conclusion: To grow your business at scale, implement Bait Marketing using your monetized value proposition to consistently grow new customers and maximize your exit value.
“Nothing happens until a sale is made.” Thomas Watson, Sr., President of IBM from 1914 to 1956, coined this expression. He knew what he was talking about. Selling technology in the first half of the twentieth century, before the moon landing in 1969, was not an easy sale to make. Companies then, like many still today, did not understand the transformational power of technology to reshape industry and company fortunes.
What is a “sale” and how is it made? A sale is made when a buyer and seller agree to exchange values. The customer’s value is revenue, but what is your value to the customer? It’s not your price.
New sales are the lifeblood of every business, but not every business knows that yet. Without predictable new sales year over year, no matter how well intended a company’s mission or goals, the company will suffer with limited growth. New sales breathe life into all other company possibilities.
How to attract new customers year over year is the seminal question every business must solve first if it wants to maximize its value proposition and reach its potential.
Technology companies must monetize their value proposition to make more business. A company’s value proposition is the monetized value of its service or product to the customer - “your value.” If you don’t know the monetized value of your value proposition to your prospect, neither does he.
Sales are the problem, sales are the answer, sales are the point. Monetize your value proposition to make more sales and grow your business at scale.
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