To start, I thought I would define FBO one of my TLAs (three letter acronyms). F = Feature
B = Benefit
O = Outcome
When businesses describe their products or service, those are the key elements to communicate to a potential or existing customer. The challenge is to put these elements in a way that make sense to the customer and help them to buy. This next set of Blog Posts will ask a lot of questions about this acronym and see if we can get to a presentation that works.
Let's return to Gleicher's Formula - D * V * F > R (for a fuller description see http://wp.me/p3XVhG-1d). The opening of a presentation needs to identify a "D" or Dissatisfaction. The simpler way to say this is what is the problem that is being addressed. This problem will create some challenge or issue with the customer's business. It might be Higher Costs, Additional Time, Loss of Sales, or whatever. The point of the problem statement is to connect with a customer and make sure that they agree that this is a problem that they need to solve.
Let me stop right there with the first challenge in this kind of approach. When I worked for Red Condor, we made a very good spam filter. We thought it was the best. The challenge was two-fold. Potential customers thought they already had a good enough spam filter. On top of that, the cost of spam filtering was normally low enough that cost was not an issue for a business. So, there was almost no Dissatisfaction to go after. That is why our Sales Team always came back with two times that we could really go after customers: when their contracts were up and they had to renew or if they had fallen victim to a fault in their previous filter.
After Red Condor was bought by Edgewave I was able to start to address on two other bits of Dissatisfaction. First, the SaaS offering was able to offload customer networks with the Spam Traffic. This had the advantage of lowering the bandwidth that a customer saw for their mail service dramatically. We also were able to offer a backup solution for mail server outages - planned or unplanned. This was an incremental service that added value to the solution at virtually no cost to Edgewave. The idea is that there are additional reasons for a customer to choose this spam filter and that they could see that a switch out of their existing solution could save them enough cost to overcome the resistance.
The combination of the old elements and the new have added up to more revenue for the company and product.
While this series will explore this topic in its entirety this is a fine place to stop and make sure that we have clarity.
- Does your product or service fill a real need?
- What type of client is likely to have enough Dissatistfaction to be a good candidate?
- How can you articulate this Dissatisfaction so that a client will identify with it?
Once we have gotten through all of this we THEN can start with FBO...with the ultimate goal of closing around an outcome for the customer that he agrees will improve his business and life.
Jim Sackman Certified Business Coach, FocalPoint Business Coaching http://www.jimsackman.focalpointcoaching.com/ We focus on your business - Time, Team, Money, Exit Coaching, Sales Training, Web Marketing, Behavioral Assessments, Financial Analysis