Welcome to the series on customer acquisition. Last post we started the series with a general look at the top 3 customer acquisition mistakes that SME startup founders make as they embark on their embark on their entrepreneurial journey. This mistakes most often than not contributes to the reason that most startup fail in the first to five years of operation. This series will take us through four top mistakes (yes, we decided to add one additional mistake) – focusing on features of products and services instead of its benefits, not taking time to identify the ideal customer for your business, ignoring word-of-mouth as an effective marketing tool, and the fourth, neglecting the value of free marketing strategies that the digital space has to offer. We end the series with a call to action, for startup founders to learn from the mistakes of other businesses and how to attract the right customers.
In this post we will delve into the first of our top mistakes which our focus on the features of the products and or services we have to offer our customers. We will briefly look at the differences between benefits and features and highlight why it is important for startups to focus on benefits. The post will end by giving some directions on how to shift focus from features to benefits with a couple of examples. So, let’s dive into it and gain new understanding of customer acquisition strategies.
What are the differences between features and benefits?
As startups we get carried away with listing all the technical details of our products and services during our sales and marketing pitch. As important as these are to our customers, it isn’t what the customer is looking for.
Features: This are the main component or characteristics of the product and services we are selling or marketing to our customers at any point in time. To sum it up, it is the technical detail of our product and services. For example, the features of a Bluetooth wireless headphone can include the distance of reach, or how long the battery would last.
Benefits: This explains to your customer how the features of your product would solve their problems. In essence, it builds that needed emotional connection between the features of your product or services and the positive outcome that it offers to the customer. Using our same example, the benefit could be “no more worries about the need to recharge your headphone every few hours, get days instead of hours” or “enjoy connectivity over the distance, no more break in connection between devices”.
Importance of focusing on benefits
Why do you need to focus on the benefits of your product or service to the customer instead of its features? Here are three top reasons to focus on benefits instead of features when marketing your products and services.
- People actually buy benefits and not features. Your customers are not interested in you listing all the technical features of your product and services. They can easily get that in the user manual or any of the many tiny print papers or files available online or in stores. Your customer cares about how your product or service can solve their problems, making their lives better, easier and more enjoyable.
- Highlighting benefits creates an emotional connection. When you focus on the problem(s) that your products will or can solve or the needs that it is able to fulfil, you are able to connect with your customers on a deeper level. In this way you are able to show your customer that you are not just selling them a product but a solution to a problem they are faced with.
- Focusing on benefits makes your message clearer. When you focus your marketing on the benefits of your product, your ability to craft a more compelling message that will resonate with your customer becomes easier. This way you are able to speak directly to your customers’ needs and desires, which leads you to executing a more effective marketing strategy.
Shifting from Features to Benefits
How then can a startup shift its focus from features to benefits as they develop an effective marketing strategy?
- Start by identifying the key features of your products or services. Make a list of the technical specifications and functionalities that makes them unique and different from the same offering in the marketplace.
- Take your time in identifying the problems your products and services solve or the needs that it meets for your customers.
- Translate these solutions into benefits that would connect with the customer on an emotional level. You need to focus on the positive outcome that your products and services will offer to your customers. The question you will be answering with the benefits is “How will my products and services make the life of my customer easier, better and more fulfilling?”
For example, let’s say you are selling pre-cooked pepper delivery service. You might be able to move from features to benefits using this model.
Features: Pre-cooked packaged pepper
Benefits: Save time sweating over the cooker as you reduce the stress of cooking a full meal.
By focusing on the benefits you offer, you can create marketing messages that are more likely to attract customers who truly need and want what you offer. Remember, you’re not just selling a product; you’re offering a solution that improves your customers’ lives.
Stay tuned for the third post of our Customer Acquisition Mistakes Series, where we’ll delve deeper into specific strategies of targeting the right customer for your business!