I have noticed many startups designing a sales pitch or a marketing campaign, often tend to communicate all the good features the product offers. Or they go a step further and bundle it with how those features can benefit the consumer. So, far so good. But I think here’s where many startups miss an important point – we buy something only when we see/perceive that the potential value/utility/help/satisfaction that we will get from that product is much more than what we’re spending for it (the spending can be in terms of money or time).
Think of why high discount sales are successful. Because they hit our psyche that we’ll be getting much more than what we’ll be paying for. To add to this, we also associate this slash in price with the higher price we were earlier required to pay. Or for that matter, why those late night infomercials are able to convince people to buy stuff that otherwise (before hearing their pitch) they would have definitely denied to buy. That’s the power of communication.
I think a startup along with communicating the features and benefits of the product, should also clearly communicate that the value/satisfaction that the product offers is much more than the price the customer will pay for it. Make this communication more evident. For instance, if a startup communicates that their product makes consumers productive, that’s good. Next time, try and tell potential users that with their product, users can save more than 10 hours per month and at an average rate of $10 per hour, users will save at least $100 a month. And the company is asking to pay just $5 for this product. Now, that’s a strong pitch because the mind then quickly starts to calculate – $5 spent versus benefit of $100.
Do an A/B test with this pitch once and see if your conversion rates increase.