The post was originally published in Polish on Szymon’s LinkedIn profile. Szymon kindly agreed to republish what we think is of great value to our readers.
A couple of years ago, I had a talk with the owner of a company offering software for e-commerce. Great product, polished features, good customer service. The problem was that sales didn’t grow.
“Our competition has a worse system, but sells better”–I heard.
“And what do they do differently?”
“I don’t know, but we need to have better features to beat them.”
Szymon Janiak, Co-Founder and Managing Partner at Czysta3.VC
A classic mistake.
Companies often assume that customers choose the best product. That if they have more features, better design or more extensive options, sales will increase. And then they are surprised that despite a better product, the competition still wins.
Because customers don’t buy what’s “best”. They buy what they understand best.
The competition may have a worse product, but if it communicates its value better, suppresses doubt faster, and reaches customers at the right time,–it wins.
Instead of obsessively improving the product, it is worth asking oneself: Does the customer really understand what we are selling? Do they see this as the solution to their problem? Is the offer so simple that the choice becomes obvious?
Companies that focus on these issues don’t have to be the “best”. They simply sell better.
The comment section had to add:
I sold various products and services. From heavy mining machinery to silver-plated cutlery, from electrotechnical equipment to rare earths, from consulting services to railway services. Each customer needs to be approached individually, let them get to know and understand the product or service. Above all, you need to gain the TRUST of the customer.
– Bohdan Pecuszok, Professor at Uniwersytet WSB Merito Wrocław
Summing up, the customer buys what he understands, this is the essence of the communication strategy – make communication (not the product) in such a way that the company’s business goals turn into understandable messages that cause customer activation.
– Cezary Zieminski, CPO at WyMy
Szymon Janiak is an investor and a business-driven Managing Director at czysta3.vc, a Venture Capital fund located in Poland. He has over 10 years of experience in the technology sector. Szymon is also a Member of the Supervisory Board at stockbroker Grupa Trinity S.A.
