A razor and a blade. Amazon eBooks and the Kindle. iPhone and AirPods.
Compliments (ie the blades, the Kindle, and the AirPods) are leveraged by all the top brands to help increase Willingness to Pay, or the price a customer is willing to pay for their product or service. Each of these compliments makes the core product (the razor, the ebook, or the iPhone) more desirable to customers.
In the book "Better Simpler Strategy" author Felix Oberholzer-Gee breaks down a simple framework for Value Based Strategy. In the book, he outlines the value stick, which is comprised of four components: willingness to pay (WTP), price, cost, and willingness to sell (WTS).
Today, I want to talk about my adamant belief that almost every company is sleeping on the complementary value of education.
Simply put educating your buyers can:
- Build customer engagement and trust- increasing customer confidence in working with you
- Generate and convert leads
- Ensure customer loyalty and upsell customers
- Establish industry authority and thought leadership
The goal of a complement is to increase WTP. In a buyer survey, Forrester Research found that the first vendor to succeed in helping chart "a clear path to value” wins the business 74% of the time. Winning sales teams find a way to build buyer confidence in their Value Proposition- and that starts with education.
Be the first company or person to help your customer learn about the problem they are trying to solve. Help them figure out what questions to consider while making a decision. Offer them suggestions and education that help them feel confident in the decision they are making, and the chances of your winning the business are high.
3 Things You Should Be Paying Attention To:
1. Better Simpler Strategy
A strategy doesn't have to be complex to drive results. Felix Oberholzer-Gee joined me for a discussion about his book, Better, Simpler Strategy: A Value-Based Guide to Exceptional Performance. In the interview, we discuss how the principles from his book can be applied to Digital Transformation and when/where to implement technology.
2. Fifteen Ways to Educate
Need help getting started on creating educational content for your customers and prospective customers? Check out this article or take our free Mini- Course on creating an effective content strategy.
3. Anxious but Optimistic
Want a great indication that we have room to improve our educational approach within the insurance industry? Go no further than page 5 of the Cake & Arrow report when they ask, "What is insurance?" and receive responses like, “A scam? Just kidding... but really, it does feel a little bit scammy."
Digging deeper you will find statements like, “When I bought renters insurance I would’ve liked to have someone from the company, not a chatbot, explain it to me. My dad and my brother helped, but they both worked in insurance. Most people don’t have that.”
You have questions, I have answers...
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