BUSINESS VIDEO MASTERCLASS
PART 4 - BUILDING YOUR FUTURE VIDEO PLANS
Trust v Price: A B2B video strategy
Understanding what Customer Uncertainty really means
A video strategy or plan is a series of video modules – or high profile customer touch points if you will – aimed at covering every shade and nuance of Uncertainty your clients may have about buying a solution from you.
Video has the power to resolve all these Uncertainty issues quickly.
I like this Uncertainty word, as the only reason qualified customers don’t buy is Uncertainty. Forget about price or specification and all the other reasons why clients don’t buy.
Just call it Uncertainty, ie, they were more certain about the other company, which is why they didn’t buy from you.
With this in mind, I’d suggest that one major function of using video concerns Resolving Customer Uncertainty.
This applies double if you’re selling high value solutions which many B2B companies are.
By high value solution, I don't just mean an initial high price, like buying a new datacentre.
Even a $150 monthly SAAS subscription is $18,000 when you look at the 5 year customer lifetime picture, and allow that they also refer you to just one other new customer.
Let’s look more closely at high value solution-selling from a few different angles and see where we get:
And let’s start with the cost, because it’s unlikely to be cheap.
Even apparently low cost SAAS monthly subscriptions end up expensive these days, and customers are quite aware how a few dollars every month soon adds up over the year.
Nobody’s quite as fooled that SAAS is cheaper as they used to be.
But it certainly it's often better.
So much so that you can now buy pricey SAAS software to reduce your enterprise's monthly subscription spend 🙂
If money really is the problem, ie, the customer can’t afford you, then there’s little you can do about it.
But more realistically, when money’s a huge issue in a tightly competitive marketplace, then companies often end up giving away big chunks of margin as discount. They feel they have no choice as everyone does it, or the customer expects it.
This makes the case for video even stronger.
It might be cheaper to spend a bit more on video - instead of continually giving away free money as discounts & deals.
Why we discount
While discounting might have its place as a tactical manoeuvre to close an important deal, it isn't really the way forward either, as it becomes too easy to discount yourself out of business
- or teach clients to wait patiently until you have your next discount spree.
Why else do 95% of companies fail in their first 2 years?
They buy customers by discounting at a price they can’t afford or sustain.
I'd take a guess and say more profit is lost through discounting than almost any other source.
For every $10 you discount, you may need another $100 of sales to pay for what you’ve lost.
I'm not saying there aren't good reasons to sometimes discount.
Your marketing agency may also push you to offer discounts.
But it’s easy for them to say this if they're specifically targeted against units sold or new clients gained - rather than profit gained.
YOUR GOAL: TO WIN MORE LEADS FROM YOUR NEXT VIDEO.
Trust is the answer to discount
If a customer has a budget in place, the biggest issue is their Uncertainty over whether your particular solution is the best choice for them to bet the farm on.
So you need to help them - with video.
Video resolves customer uncertainty.
For example. many companies, especially technology or solution-based companies, tell me they see client lack of awareness as one of their main barriers to sales.
I think the awareness issue is true, but I’d also suggest that many clients “do get it”.
They’re just not 100% sure enough about YOU to bet the farm.
Yet Trust is the basis of business.
Trust explains why huge corporations can do deals everyday with little start-up companies.
Because of trust.
If you were trusted, seen as a 100% certainty to quickly improve their bottom line
- then you could win almost every deal, without having to give away all your profit.
If the Trust hasn't been won, then neither has the deal.
Now let's take a look at practical solutions to resolve this trust / uncertainty issue.
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