7 Reasons Customers Might Not Buy even though you tested your Value Proposition Canvas

Summary

In this video, Steve Morris discusses seven key reasons why customers might not buy a product despite a strong value proposition. These reasons include the current solution being 'good enough,' the costs and risks associated with change, and the potential threat a new product poses to internal stakeholders. Morris emphasizes the importance of understanding the broader customer context and adjusting your approach, such as educating customers or pivoting to solve more pressing problems. Ultimately, the key to success is ensuring there is a compelling reason for customers to adopt your solution.

Takeaways

• 😀 Understanding the customer's broader context is essential for a successful product solution.
• 😀 Even if your product addresses a pain point better than the current solution, the existing solution may still be 'good enough' for the customer.
• 😀 Change is costly, both in terms of time and effort, which makes customers hesitant to switch from their current solution.
• 😀 Introducing a new solution always carries a risk that it may not perform as expected once the customer starts using it.
• 😀 Customers may be reluctant to purchase from startups due to the uncertainty about the longevity and reliability of the business.
• 😀 If the problem you're solving isn't a top priority for the customer, they are less likely to buy your product.
• 😀 Internal resistance can arise when people feel their job or position may be threatened by the new solution, potentially causing sabotage.
• 😀 A compelling reason to buy must outweigh all the factors that make change difficult, such as risk, cost, and the current solution's adequacy.
• 😀 Understanding what drives the customer's current priorities is crucial. If a more urgent problem arises, consider pivoting your solution to address it.
• 😀 If pivoting isn’t an option, educating the customer on why the problem you solve is important can be a challenging but necessary alternative.
• 😀 When testing your value proposition, ensure you understand the people who may feel threatened by your product and address their concerns proactively.

Q & A

What is the main topic of Steve Morris' video?

The video discusses seven reasons why customers might not buy your product, even after testing your value proposition, and offers strategies to overcome these challenges.

Why might a customer not buy even if your solution is better than the current one?

The current solution may be 'good enough' from the customer's perspective. If they aren’t experiencing significant pain or frustration with their existing solution, they may not feel motivated to change.

What does Steve Morris mean by 'change is costly'?

Switching to a new solution involves various costs, such as the learning curve, the time to adapt to new systems, and figuring out workarounds for any imperfections in the new product. These costs can deter customers from making the change.

How does the 'risk' factor into the customer's decision not to buy?

Even if your solution appears better, customers may perceive it as risky. There’s always the uncertainty that the new solution might not work as well as anticipated once implemented.

Why is buying from a startup seen as risky?

Customers may fear that the startup will not be around in the future, leaving them without support or updates for the product they’ve purchased.

What does it mean when the problem you're solving isn't top of mind for the customer?

It means that, although your solution addresses an important issue, the customer may be facing other, more urgent problems that take priority, thus making your solution less compelling.

How can internal threats influence a customer’s decision to adopt your solution?

Certain individuals in the customer's organization might feel threatened by your solution. For example, they could lose prestige or even their job, leading them to resist or sabotage the adoption of your product.

What is a compelling reason to buy, and why is it important?

A compelling reason to buy is a significant and urgent need that motivates the customer to act, overcoming the costs, risks, and potential threats associated with change. Without this compelling reason, the customer is unlikely to make the purchase.

What is Steve Morris' advice for understanding the broader context of the customer’s situation?

Steve advises that entrepreneurs should not only focus on the specific problem they are solving but also consider the customer's overall situation, including other problems they are facing. This helps prioritize the solution within the customer’s broader context.

What should an entrepreneur do if they discover that a customer’s higher-priority problem is unrelated to their current solution?

If a customer’s higher-priority problem is unrelated to the entrepreneur's current solution, they should consider pivoting to address the more urgent issue. If pivoting isn't feasible, educating the customer on why the current problem is important might be necessary, although this is a harder sell.

What should entrepreneurs do to address internal saboteurs within a company when selling a solution?

Entrepreneurs should proactively identify who might feel threatened by the adoption of their solution and find ways to create a win-win scenario for these individuals. This helps reduce internal resistance and sabotage.