Gone are the days when companies would simply create a product or service, market it and hope for a successful, profitable outcome. Products and services are now deeply commoditized and consumers are increasingly fickle and hard to please. People don’t just want something to spend their money on; they want solutions. They want something that can satisfy a specific need in a specific way. It is a must for companies and marketers to understand this basic consumer reality.

Innovative, Indispensible, Inspirational.

Innovative, Indispensible, Inspirational. These are the three I’s of an effective Value Proposition. If you want to make your brand work, you’ve got to cater to your target consumers’ needs. We’re not just talking about basic  needs here. A product or service can also satisfy emotional and perhaps even spiritual needs. It all depends on how you position your offering.

Is it innovative? Does your product bring something new to the table? Have you discovered a need nobody thought they had, or are you riding the bandwagon with a me-too offering? Is your offering truly useful/beneficial over time? That is, does it represent a continuous stream of goodness to its owner?  Does your your brand  inspire action or complacency? By answering these questions, among others, you can pinpoint the ideal way to market your product. The next step is to see if the target audience is going to be receptive to the messages you send.

Know thy customer. It is a crucial commandment that must be heeded, if you want your brand messages to come across positively. We  live in an age where information is easily accessible. Especially information about how your product is doing in multiple dimensions besides “unit sales”. Not too long ago, it wasn’t practical to do intensive consumer research, simply because by the time enough information has already been gathered, it  was already be obsolete and useless for brand-building.

The Internet is a great way to find out about your target market and its specific needs. The rise of social media has made it incredibly easy for companies to connect with consumers and find out their current needs. By becoming receptive to your followers or potential buyers, you can have a greater idea of what makes them tick and translate that into your brand. You can raise the power of I3 with the aid of Internet tools.

While driving to a client meeting I looked at my dashboard and noticed the warning light again. I was about 2,000 miles “over” on getting an oil change.

Now, I have always made a habit of taking great care of my cars and 2,000 miles on an oil change on a well maintained car is not going to kill the car. Why haven’t I done it? It has a lot to do with scheduling and the fact that it is going to take an hour out of my life at a critical juncture when I am working on several key projects. And really I have just not been able to do it or maybe it’s that I have not made it a priority to get it done.

So Commerce Bank opened 7 days a week, with late hours all 7 days. Many banks have had to follow them and not close the teller window at 3pm because of some age old operational constraints that are just not true in our electronic age.

So the lesson here is that you need to really rethink – especially in older type industries- whether or not what you accept as a true limitation is a REAL limitation … or is it just an industry habit. 
Maybe, it was a limitation that was born from boundaries that your industry had from years ago that are no longer valid with newer technologies and processes?

Whether you run a bank or local car dealer or a donut shop – have you looked at your business from the perspective of your customers? And do you do it often?

Notice how many companies claim the same thing? We see lots of websites and marketing materials stating similar value propositions – “best in class”, “unique in our commitment”, “maximize return on investment” and all that “value prop” jargon.

If everyone’s claiming the same thing, then what’s the difference? A value proposition should speak to a product’s or service’s uniqueness (preferably why they are new, useful and ‘wow’), but when everyone’s claiming they’re the best, we think it’s time to rethink and reevaluate propositions.

If you’re a new company just starting out, then take time to write an excellent value proposition using the questions below as a guide. On the other hand, if you’ve been in business for quite a while now, then review this list again and see if you can sharpen and rewrite your value proposition to truly reflect what your business is about.

When trying to define and communicate your value proposition in today’s tough economy, these are some of the most important questions to ask:

• What is the need or problem of the customer that your product or service aims to provide a solution to?
• What are the benefits of using your product or service?
• What do you offer that is not being offered by the competition?

Once you’ve answered these questions, you’re ready to get down to business: write a superior value proposition – one that is truly unique. Here are some tips on developing or updating your value proposition:

• Customize your value proposition according to the specific needs of your prospects/customers. Don’t just write a general statement.

• Value propositions are not static. Just as your customers’ needs change, so should your value propositions, in order to meet their changing needs.

• Watch your competition. They may announce new capabilities, so be prepared to offer newer, better ideas/capabilities too and state that in your proposition.

• Mind your relationships. Someone once said that the greatest value often lies outside the product you are selling, such as the relationships between employees, between customers and employees, between top management and clients. Your company’s reputation, responsiveness and trustworthiness are all a part of your value proposition, so make sure you also emphasize those dimensions as well.

Remember when we were little kids and were often reminded by our parents to say ‘please,’ ‘may I’ and ‘thank you?’ These words are short and simple, but are very powerful nonetheless.

As we grow to be adults and strive to achieve success in our careers, we often forget the power of these words and fail to remember that using them often can go a long way. They can earn us respect, gratitude, admiration and yes, love.

Marketing and salespeople should learn a thing or two from one of kindergarten school’s most valuable lessons: politeness and gratitude.

When was the last time you said thank you to a new or returning customer? Personalized thank you notes are a way to get more business. Check out some sample thank-you notes for sales and you’ll see what we mean.

Saying thank you is one of the most excellent habits to cultivate. Words of gratitude are always wonderful to hear. It does not only make the recipient feel good – it makes YOU, the speaker, feel good as well.

In this buy-and-sell-oriented world, a simple ‘thank you’ means a lot, and it’s also one of the things that make customers, clients and prospects come back. Thank-you notes, whether in physical form or sent via email, are a great opportunity to put your name in front of your customers, strengthen relationships, and help you stand out.
Here are some key opportunities for saying ‘thank you’:

• Getting new business from a person or a team
• Getting a flattering remark or suggestion from a client, customer or even an employee
• Getting referrals from a client or customer
• Getting excellent work done by employees that led to more customers

There are plenty of ways to say thank you. As a marketer or salesperson, get creative. Never underestimate, in particular, the power of a handwritten thank you note. Whether you say these words in person, via email or over the phone, deliver it with much enthusiasm and really mean it. It can make a big difference in the way you do business, and in how the world sees you.

People are wiser nowadays. Naturally, they don’t like to be scammed out of their money. They’re more cautious now, and careful about their dealings with individuals and companies.

Internet technology may be changing the way we see or do things and providing the convenience we used to dream about, but people just won’t click to buy immediately. Why?

Well they obviously don’t like to waste their hard-earned salary on products or services that are not up to par, or those that appear not to be credible. So today’s customer more often than not does his or her homework, through intensive researching online.

Building Trust and Adding Value

We’ve all read about the importance of building trust and adding value for both prospects and customers.

Every sales and marketing expert has spoken about this, but it still bears repeating. Successful online marketing, selling and networking requires mastering the art of giving. It’s simple, really. Before you try to get something from someone, you need to give them a reason to give it to you in the first place.

This goes back to basic human qualities that we all admire – honesty, integrity and trust. People don’t want to be lied to, don’t want to be exploited and abused. Yes, it’s a defense mechanism for people who are fed up with hard-sells and sledgehammer pitches. People’s walls grow stronger because of bad customer service experiences.

Today, there is a need to manage your prospect/customer’s impressions of you. If you find yourself spamming, trying all sorts of tactics without focus, and, well, appearing like a money-hungry marketer, then it’s time to change things up. This time, be a passionate individual/company that loves and enjoys helping people achieve their own goals.

Review your marketing strategy. Are you giving before you get?

Here’s some things you can give to your prospects/customers:

• Valuable, free content.
• Excellent service.
• Freebies.
• Useful tips for their personal lives or business.
• Meaningful interaction.
• Promises you keep.

Remember, you’re selling to people who care about what you can give them. Give unconditionally – no “angle” – just be valuable – and you will be valued!

What are the ways you are ignoring or disrespecting your employees? If you think your clients wouldn’t put up with it, chances are your employees won’t either.

Yes, things can get crazy busy, but in a world where customer service and relationships is top priority, the example you set to your employees in turn influences the way they may treat your customers. So think again before you make your busy schedule or forgetfulness an excuse. Every single day, your employees are working hard to create, collect, and improve revenue for your company. Their satisfaction directly relates to your customers experiences, so be conscious of how you treat them and the example you set.

Do you commit these seemingly minor sins when dealing with your employees?

Situation 1: You called for a meeting or review with one of your employees and while he or she is talking or explaining, you’re working on your laptop or tapping away on your Blackberry or iPhone (is it really that urgent?).

Situation 2: You procrastinate. Your employees often hear you say “Let’s meet tomorrow,” but it never happens because you have somewhere you have to go to or you simply changed your mind. You keep rescheduling meetings with them – to do something you think is more important. Hey, it might be, but if this is a pattern, guess what your team is thinking?

Situation 3: You allow going in and out of the conference room during meetings (beyond “bio breaks” – just fluid attendance). Or worse, you yourself go in and out often to attend to phone calls and/or visitors during meetings.

If you’re guilty of committing one or all of these sins, then think about this: If it was a client you were dealing with, would you do the same? If you’re showing this kind of attitude/behavior towards your employees, they may think this is the company-approved pattern and act the same way towards your clients, too.

Remember leading by example?

To avoid “training” your staff in these bad habits, start by putting your electronic distractions away during a meeting – laptops closed! phones on “stun” or off!. Give your complete (genuine, sincere and focused) attention to your employees during a meeting. Encourage an open-door policy, but be firm and let your staff know that during closed-door meetings, unless it’s absolutely important, it can wait.

Lastly, and most importantly – keep your word, know your schedule and declare these important times a distraction-free zone. Oh – and keep meetings few, short, sweet and to the point, too!

J.C. Penney once said, “The friendly smile, the word of greeting, are certainly something fleeting and seemingly insubstantial. You can’t take them with you. But they work for good beyond your power to measure their influence. It is the service we are not obliged to give that people value most.” Penney pledged to give each customer friendly, reliable service, and guaranteed the same price to everyone.

So what makes happy customers and are your own customers happy? Here are three questions that you, as a business owner need to ask:

Do you know how your employees represent your company?

Think about all the companies, big and small, how many employees they have and how each one of them represents their company every day. Customers may never meet the president of a big company, but they do meet that company’s ‘representatives’ everyday as they do business with them. Remember, customers form an opinion about a company, no matter how big or small, based on their dealings with and the work performance of one of the firm’s hourly employees.

Starbucks baristas are a prime example of employees carrying the brand. You can’t think about your favorite frappuccino without thinking about the smiling green-aproned barista on the counter.

Do your employees exercise responsibility sharing?

Customers are tired of businesses making excuses: “Sorry, I’m new here; That’s not my department; I’m not sure how to do it” are some lines that we hear employees say that make customers cranky. These excuses are one of the reasons why customers hate a particular company. It is the responsibility of every company to hire and train employees and equip them with the tools and answers they need to satisfy their customers. If your employees ever used one of those previous lines on a customer then you’ve wasted their time because you didn’t have the answers they needed!

Are you and your employees kind?

Yes, kindness keeps customers coming back. Kindness means satisfying the customer and never in an egotistical way. It also means never raising your voice. A kind employee doesn’t pre-judge or humiliate customers in any way. When your employees are being understanding, they make customers feel comfortable and taken care of. Which one of your employees would you describe as being kind? Indeed, it is the service we are not obliged to give that many people value the most.

You think those baristas were just hired and given a green apron? If that were the case, Starbucks wouldn’t be … Starbucks. Every barista is trained to make Starbucks’ signature coffee concoctions as well as handle customers in the most accommodating manner before they are put behind the cash register.

Take a few minutes and ask yourself these three questions. And then do the next thing – which is MUCH harder. Ask your customers.

I’ve been asked at times to describe the I3 Principles (innovation, indispensability, and inspiration) for the value propositions for companies that have been in the lead for a long time. That is to say, how can they still be innovative after all these years? How are companies like Southwest or Nordstroms still innovative today? How are some of these other companies innovative in the context of – or in consideration of – the fact that their value proposition has been around for so long?

And so I started thinking about the different structures for mature companies that are clear leaders in their field and who maintain their leadership. I thought about things like  reputation and reliability and the basic continued return on investment for their buyers as possible principles around those value propositions that seem to be perennial. As I thought about it, I realized that innovation maintains its freshness in contrast to the lack of innovation from competitors.

To put it in another way, Apple’s iPod and iPhones were themselves major innovations when they came out. In fact, they were hyper-innovative. Yet in many ways they have been duplicated by competitors (ie: Microsoft Zune and some of the other smaller MP3 devices). But in reality they have not been outclassed or transcended by any other development.

At Southwest (as I have opined in prior blogposts) has dialed into its customer value proposition that makes regular travelers into raving fans. [The Real Thing... The Heart Thing] Yet in spite of the fact that they practically offer a cookie cutter template that competitors can observe – those who have tried to imitate them have failed [see the aforementioned TED and SONG]. So, the reality is that for the market of consumers who fly, or those who buy a musical device, innovation really means a distinct value. Distinct and separate from the rest of the pack. Southwest manitains their distinction, partly because others have failed to duplicate or exceed it – even 20 years later.

Starbucks has myriad imitators, from Seatles Best to Saxby’s to Dunkin Donuts and so on. Starbucks’ own recent growth issues have more to do with pushing growth beyond the saturation point in the marketplace. I mean, even in the middle of a recession they still maintain their first-place position – no one has done better or better enough that they stand out as superior to Starbucks in a way worth switching too. (See Consumerist Post)

So here we have it, if you are a true innovator you help to develop or refine, or define, how a category functions in a new way to your consumers. If your competitors can only come up to a ‘matching you’ perspective you can maintain your first ‘ I ‘ of the I3 Value Proposition. Still, you need to innovate a strong defining point about why your value to your target market still stands out and is still worthy of their continued consideration and patronage. So, another way of saying this is that the innovative portion of I3 is directly supported by the Indespensible nature or your offering. That is, the persistent “goodness” that your value proposition delivers over time to your target market.

The inspirational component may actually wain before the newness or the distinct fact that you stand alone wears off. In that, it is a shorter term, an ‘emotional hit’. Perhaps, inspiration is the weakest of the I3 dimensions for creating a persistent offering. However, one could say that (referring to the previous example) that Apple competes against itself and continues to innovate. So you go from iPod to iPhone and from iPhone to iPad with raving fans more and more excited for each subsequent deliverable from the company.

With Southwest, they responded to competitors charging for luggage and specifically say that they do not charge for luggage. But they do charge for priority queuing. I happily pay for priority queuing because it is reasonably priced and adds value. Although it means a lot to me, it may not mean anything to anyone else. However everybody has to bring luggage, so you can’t help but feel ripped off for that expense. Not everybody needs to board the plane first and ten dollars is a small price to pay for that [Southwest Priority Boarding].

So the message here is to really understand if your offering -or the offering you are thinking about or working on- really does have freshness in the market, long term value, and if you are doing it in any way with grace and “style notes” that make it stand out just on the elegance of how you put it together. This is true, whatever the value chain you’ve strung together to service the needs that you are meeting in your market.

A recent letter from a long time client of mine (in the chemical distribution business) opined that many of his competitors have actually disappeared. For them this means that they have been disintermediated by the manufacturers selling directly through the internet. However, his firm remains stronger than ever because, in his terms, “they want what we got, which is a level of customer service that was new to the market when it was introduced 25 years ago and remains fresh to this day.”

Is your value proposition delivering a Persistent Value?

So here is a recent example of customer service that was not only inadequate but could have been downright dangerous.

A couple of weeks ago I developed pretty severe back pain. I went to the Doctor, who gave me medicine. That night and the next I did not feel that much better. Still in great pain, I called the doctor’s office and asked to speak to him but he was not available.

The receptionist asked “What’s the problem?” I answered, “I saw Dr. so-and-so yesterday and he gave me this pain medication and I need something stronger”.

Her response, without giving another thought to what might be going on in my life and who I was was, was to simply state “oh, there’s nothing stronger”. She added the kind of silence at the end of the statement that clearly indicated, that in her mind, the conversation was over. It was time for me to get off the phone and leave her alone.

Of course I insisted that I talk to the Doctor, which I did a little bit later and we went over some possibilities:

• “…well you could double the dose..” (I did not think I could do that on my own as these were – as the receptionist mentioned – strong medications)
• “… or we can give you a different medicine”

I said “what does that medicine do and why would you consider it, doctor?”
[and here's the kicker] he said, “because it’s stronger”

So a few quick observations:

• First, It struck me when I initially spoke with the receptionist, that it was unlikely the doctor was going to prescribe a medication that - in the entire world of pharmecuticals – was the strongest dosage/medicine known to man. Was that likely? Was that even possible?  For a sore back? As it turned out the doctor doubled my dose and gave me an additional medication, a muscle relaxer, which actually took care of the pain within a day or two.

• Second thought, which really started getting me angry in retrospect, and one of the reasons I am blogging about it now was… What if I had been a senior citizen? Much like my mother would be – a typical stoic from a generation that did not question the doctor or the doctor’s office. She would have quietly hung up, gotten off the phone (ushered off the phone as the receptionist wished her to be) and would have simply suffered in silence with pain that was not resolved by the given medication.

So the moral here is…

Do you know the kind of information – the quality of information and the tenor of the information – being communicated, by ALL your client-facing staff?

This may seem like an obvious “doctor’s story” or healthcare parable, but it is not just a doctor’s story. It’s an e-commerce story, it’s a retail story, it’s a B2B contracts discussions story… It is all of those stories and it is an area that is all too often unobserved, undeveloped and unmeasured in any meaningful way in companies throughout the world.

This is happening all the time, every day.

Is it happening in your company?

Flying to DEMO in Palm Desert with a client. Instead of thinking about the conference and what I will see and who I will meet – I’m wondering, “why doesn’t Southwest fly Philly to Palm Springs?” Really. Because it makes a difference to me. Hmmmm…

Have you ever wondered why Southwest is such a leader in its field?

Perhaps it’s because it offers superior airplanes or it could be because of their hiring process which selects only the very top of the class from the top universities? Or maybe their pilots are better trained or it might be that they use better airport facilities?

Clearly for anyone who has flown Southwest, it is none of the above and in fact it sometimes can be hard to pinpoint what it is about Southwest that makes frequent flyers into raving fans.

Could it be more subtle things like the smile at check out? Is it the simple queuing process by which you line up to get on board? This is done in a very democratic “first come first serve basis”. Or could it be that they will let you pick your favorite seat? Because if I’m at least somewhere before B-50, I have a shot at getting a coveted aisle space. Is it the fact that occasionally, but not always, the flight attendants make sincere and effective stabs at humor?

From a business model point of view- as has been covered in many business journals – is it as simple as treating employees really well? Kindness motivates employees to treat customers well and maybe it is as simple as that. The overall sense from a value delivery point of view – or value creation from the customer’s point of view – is that taken together, all the little pieces make one big puzzle that fits together and works well.

United could not make ‘TED‘ work and Delta likewise could not make their ‘Song‘ work – even with superior resources at the time – because they were imitations or “shadows” of the real thing. They lacked the “heart” of the real thing and so therein lies the crux of the matter.

The heart of the organization – that which matters top to bottom to everyone in a  company – is what will come out as an emergent property of its own. That is, a property that is hard to put your finger on, hard to describe, however, one that is palpable and real to customers. The lesson here for companies big and small is the absolute need to think through the subtleties and even the smallest things you do to enhance even the smallest interactions with customers.

This would be a step in the right direction.

The bigger point with Southwest and their competitors is that simply trying to copy the little things can leave you with but a shadow – as in United and Delta’s case – of the real thing. The real thing has got to be the heart thing – the heart thing means… do you really care about your customers in a way that they can understand? You see, by having that missional vision of what you want customers to take away from interacting with you -as first and foremost on your mind- you are able to look at all the moving parts of your service or your product and challenge it against that vision.

Southwest lives out of their “luv” always asking, “How do we love you? Let us count the ways…”. Corny? As a flyer who only flies Southwest if it is going where I need to go – it’s very real and very true.

How about your company? Are you transmitting what you think about your customers in ways, big and small?

In a recent MSNBC.com article, James McQuivey, principal analyst for Forrester Research, says, “I don’t believe for a second that we’re ‘meh’ on new technology. Instead, we’re very sophisticated in what is going to get our attention. A fancy new device that doesn’t improve on the devices we already have, or a promised service that we can’t go out and buy yet, won’t be able to get our attention.”
[ipad, google buzz, 3D-TV: 'meh'? (Feb. 12th, 2010) by Suzanne Choney]

I couldn’t agree more. In fact, McQuivey is saying that new things entering a market have to be truly new – and not just new, but very useful – and not just very useful, but exciting.

Of course, that’s another way of describing an “I3 value proposition”. I3 means not just clever words spinning a tale, but meaningful words describing a true-truth about your product or service. In increasingly crowded, hyper competitive, and fast-moving markets, you have to think in terms of how your target customer will process your offering in a sea of similar (or similar enough) offerings. Your consumer is probably not as much a student of your market as you are (or should be).

They may see the nuances that excite you as relatively minor feature changes.
Wow! 10% more efficient! – let’s have a parade! >>> your engineers. Ho hum – whatever >>> your customers.

Are there other ways to compete? Certainly there are! Being the low cost provider and having a radically different approach to a problem are competitive levers that companies must consider as they go to the market.

But, the bottom line is, if these distinctions are buried in minutia and are things that mean your customer has to study, or get a new degree, in order to understand the significance of it all – then you’re missing the real opportunity. And that opportunity is to think of something that is not being addressed in some way or something that is not being addressed in the mind, the eye, or the heart of your target customer.

This is true, whether that target customer is a housewife in Peoria, a college student in New York or a corporate executive at the top of the Sears Tower in Chicago.

Find the sweet-spot of frustration – address it – and gain fans, not just customers.

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Knowing who is your ideal target customer focuses all your energies on higher probability prospects and also has the added benefit of optimizing your messaging to that audience.

The alternative has the false attraction of a bigger (and therefore, more bountiful) market.

This, however, is “fool’s gold” for all but the largest companies.

Most organizations simply cannot develop the capabilities to meet the expectations of many markets. Consider the cost of spreading yourself too thin over too many demands and requirements.

The Bottom Line: Really Know Thy Customer… because you are making major investments of time, staff and money to reach them.

Know Thy Customer

1. Know Thy Market
2. Don’t Inside-Out Your Assumptions
3. Know Thy Customers Are… People
4. Know Thy Customers’ Internal Motivations
5. Know Thy Customer’s Requirements
6. Know When to Switch Gears
7. Know Thy Real and Best Customer
8. Know Thy Strengths
9. Sharply Define Your Customer “Starting Block” for Your Go-to-Market Race

Sharply defining your customer is a “starting block” for your go-to-market race.

• How many of them are there?
• What size?
• What is the published market research?
• Are there demographic and market research reports written on your target market?

In today’s sophisticated marketing world, you can’t go after a market without being armed with data – fortunately there’s lots of it.

At this stage of the game, you’re not necessarily looking at the way the market works, but simply defining the kind of company that your product or service most fits. Ultimately, it’s about knowing your customer. In every market segment, there are cultures, commonalities, unspoken rules of the game that exist in enclaves of the high tech, business and manufacturing worlds.

You need to know what these are. If you don’t have a feel for the people you’re selling to, you’re already at risk of falling further behind your competition.

While with a consulting firm focused on smaller business services firms, we worked with a small regional web design company with heavy specialization in user experience and interface design. As is typical for companies this size, they defined their customers primarily by geography – any business in their area needing help with larger web projects. Over a two-year period we helped them refocus on one particular market segment they had past success with – large, socially focused non-for-profit organizations.

While this was a positioning move, it was much deeper than just looking a certain way to a particular market – or choosing which mailing list to use. By focusing on the specific non-for-profit sector, they were able to start understanding the target customer’s culture, eventually adopting the language, pace and unspoken “feel” of the non-for-profit world.

They’re back on track, growing revenues and profits with a dedicated core of clients who view them as their specialist firm for web design and deployment in the non-for-profit field. In the same way, your understanding of your target customer will influence your marketing and the direct sales communication you have with them and the way you interact and serve them.

Adapted from the forthcoming eBook, “Know Thy Customer” by Jose Palomino

What level decision maker can you access?

If you want to sell to a specific type of company, you need to have access to call, talk and meet with the appropriate level of decision maker at that customer – whatever it takes to sell your product to them. Maybe you need to have access to CFOs of financial services organizations to sell your compliance solution.

While you may have many years and dollars worth of experience selling to financial services firms, you might find that you have no way to get your foot in the door of the C-suite, if your company never worked at that level before. That’s not to say that this marketing and sales capability cannot be acquired or developed – just that you need to know where you’re starting from and identify the gap as quickly as possible.

The “access” issue can go the other way, too. In the product development process, larger software developers often end up creating simpler versions that they try to sell “down market” to smaller customers. Yet, they don’t know the smaller customers (SMB) – the way they function, and what’s important to them. They often do not really know how to access this smaller customer (as in the Cisco example above).

It isn’t primarily a product issue – it is simply that a company that has been selling to Fortune 500 companies will face the same challenge connecting with decision makers in a $50 million dollar manufacturing company that a SMB focused company would have calling on GE. Movement – both up or down market – is possible and many companies manage to do it successfully. However, many more have failed or have had to make many learning runs till they got it right (e.g., Microsoft moving up-market in corporate IT with server software).

Access challenges run both ways: smaller companies face challenges selling to bigger ones, but oftentimes, bigger players can’t get small enough to sell to smaller companies or individual buyers.

Adapted from the forthcoming eBook, “Know Thy Customer” by Jose Palomino

Whether you developed your product with a specific customer need in mind, or happened upon a product and want to sell it to someone, you have to start by knowing your customer.

Before the Internet boom, I assembled a group of friends and raised angel capital to start a company to develop a commodity chemical trading system, based on the notion that a hundred pounds of a specific chemical powder was the same as any other hundred pounds of the same chemical powder. It would be a trading system for chemicals – a brilliant idea – or so it seemed.

Along the way, the web “happened”, and it was gaining traction all around us.

Our company’s Chief Technologist developed a side-project to create dynamic websites for small businesses. Back then, things like Facebook and MySpace didn’t exist. It wasn’t easy to create a web presence or an identity on the Internet.

So, the idea was born – instant websites for smaller businesses.

We completely switched gears. While we started with what we thought was a brilliant idea, we came across something in development that we thought was even more valuable. Before we sold the company, we grew to several thousand customers – small change by today’s standards, but an interesting illustration of adaptation.

Adapted from the forthcoming eBook, “Know Thy Customer” by Jose Palomino