Jaslyin Qiyu 6/28/24 Jaslyin Qiyu 6/28/24

Are You Selling a Product or a Solution?

Brand purpose and value creation are two things that go hand in hand for a successful and sustainable business. A business does not sustain for long, based purely on the sole purpose of making money, instead of solving problems.

The former can capture a market quickly in the short term to capitalize on a specific trend or lowballing the competition with an attractive pricing or promotional incentive, but the latter will help the business with real customer value creation.

This is easier said than done of course, similar to carving out your brand purpose and why customers should care about you. Actually, they don’t and they don’t have to. They care about themselves and the value you bring to them, which in turn is also why your brand purpose is relevant to their needs and/or wants.

Many brands simply talk too much about themselves and how good they are. This is passe and no one cares, really. Your customers want to know why you are good for them. Period.

Many brands are also simply selling a product and it’s obvious when they just call out the product’s features but not their intrinsic benefits for their customers and how it solves their problems.

E.g. - if you are a tire company:

if you’re selling a product, you might say things like - we sell tires for your cars. Our tires are made of quality rubber made to last. Buy now for xx% discount for a limited time period.
If you’re selling a solution, you might say things like - we are the reason mummy and daddy can drive home safe during wet weather or we can save you up to xx% in annual cost since our wheels are made to last.

The above is just a generic example with the second point highlighting potential customer pain points around:

concerns with road safety and enhanced protection against wet weather road conditions where cars are more likely to skid and get into accidents
concerns with costs in maintaining their cars and saving them the hassle of having to swap out their tires too often

There could be more pain points thus it’s critical to first understand the problem you are trying to solve for on behalf of your target customers. Selling a product means they are solving your problem instead by lining your coffers but you are simply enticing them for the short term to get a quick purchase. It doesn’t always work for the discerning customer and your competition can easily out-do you with a better discount.

When you move on to think about value creation and solution selling, it changes the narrative and you become 100% focused on addressing your customers’ needs. You start thinking broader as well what else you can add to your slew of products and services that can more holistically address their pain points.

It’s not as simply as bundling a bunch of products and calling it a fancy name as that is ultimately still product pushing; worse, it’s pushing a bunch of products now that might not even be what they want or need.

It involves insights from customers and non customers. It includes consumer trends, their purchasing behaviour, feedback and proactive research to really tease out useful insights. It’s not a bunch of your internal stakeholders sitting down and narrating what they think. It requires empathy as well as a genuine interest in consumer behaviour.