A software company that provides financial software to small businesses had introduced a new add-on product to the market but despite spending huge amounts of money on advertising, hadnâ€™t been able to penetrate their existing customer base let alone reach new customers. Prospects were complaining that the new product was too expensive or not that important.
In interviewing their customer base, I found a group of customers that were willing to pay double, triple, and even quadruple the current price because the software product gave small business owners part of their life backâ€”it saved them time and freed them up to go bring in more clients, spend time with their new baby, or just kick back and relax. How valuable is that?!
Using this understanding of Customer Purchase Driversâ„¢ we created a decision tree for salespeople to help them combat low price competitive offers that are rampant in the industry. By asking four to five critical and telling questions of prospects, salespeople could determine whether or not it was necessary to meet or beat competitive prices of if the highly differentiated product was going to be valued regardless of the price.
Because so many people valued this particular feature of the product, and there was no where else they could get it from, it made it easier for the salespeople to convey its value and hold firm on the price, thereby avoiding any rampant discounting.
My client told me they expected this small change would grow their revenue by more than $16 million dollars each year.
I’ve been able to help other companies like this enhance the customer experience to garner repeat business by discovering the Customer Purchase Driversâ„¢ or key components that have the greatest positive and negative influence on customer purchase decisions.