C (15:28)
He's like. He's doing the invitation of the customer. He's like, I'm going to win it this quarter. They win what to Drive customer delight prize from the company. Anyways, so if you have. So this is the thing. It's remarkable to me how often it comes up that we're shying away from saying the thing that we do that is actually really differentiated. We really valuable, but we got this fear. What do the other guys do? Say that. It's like, well, if they say that, let them have it. Okay, second one, your best differentiators are baffling to buyers, even the really technical ones. And this Diane, yesterday she had the messaging talk. Yes, where are you? Hello? She mentioned this yesterday and I was like, oh goody, I'm going to talk about this too. So here's the thing. We sometimes have this thing and you'll see it, especially when companies are selling really, really technical audiences, you'll sometimes have this thing that they'll say, customers are going to come and they're really technical and they've got a checklist of features. And they're going to come and they want to know, do we meet the checklist of features? And so we got to tell them features. And yeah, we can do value, but then we sound like everybody else. And so, you know, we got to just do the feature. But here's the problem. Your best thing, the thing that makes you special and unique is something that other people don't have. So nobody knows why it's important. Customers don't know it. So I'll give you an example. I work with this company and they used to do the feature checklist thing. And one of the things on their feature checklist was think we're the only people on the planet to have fuzzy logic algorithm. Nobody knows what a fuzzy logic algorithm is. We're the only guys that do it. And we're a 12 person company, nobody knows us, nobody knows what fuzzy logic is. And so customers would come. We're selling a data warehouse and they had all these other features on the checklist that we didn't have. And you know why we didn't have it? Because we didn't need it. Because we had a fuzzy logic algorithm. Nobody knows that. So they come in there like, have you got roll up function? No, actually we don't. Do we have a cube function? No, we were eliminated. That's stupid, right? So we had to teach people why a fuzzy logic algorithm worked. It is not our job in marketing and sales to be order takers. That's not what we're here for. We're not here to just take the order. We'll come in, check the box. We're Taking the order, like our best stuff. We actually have to teach the customers why it's important, because even if they're really technical, they don't know what that is. So in my thinking, just my super, super simplified, dumb, dumb thinking on this is, it kind of works like this. I got a feature, and then I got pure, pure marketing, Marketing textbook value. Now here's the problem. Pure, pure marketing textbook value. If we're B2B, we're all the same because we only have two points of value. We're either helping you make money or we're helping you save money. That's it. That's all we got. So if I just put on the website, we're going to help you make money. Everybody's going to be, yeah, us too. We're going to help you save money. Yeah, us too. Us too. Now, the insurance people were here and they'd say, what about risk? I'm like, okay, there's three. But fine, it's mainly just you. And so here's how this works with a feature. So if I tell you my phone has 3,000 megapixels, you know what that means? Because you've been taught and you know that 3,000 megapixels is better than 20. And you know why? You know, because you zoom in and the pictures are going to be really sharp and all that kind of stuff. So if I'm Apple and I'm running an ad, I can just say 3,000 megapixels. And you're like, well, that's good. Why? Because you've been taught. Now if I roll it back 15 years or 20 years or whenever it was that people didn't have digital phones, you couldn't say that. You couldn't say 200 megapixels or a megawatt, what is it? And you had to say, oh, this is why. And so in that case where everybody knows the feature and they know what it is, you can just state the feature. Everybody knows how to translate the feature to value. We all know why it's important. But if you've got a fuzzy logic algorithm or whatever the heck your thing is that makes you special and different, everyone's going to look at you and say, I don't know. Now, here's where it gets really tricky. I can't go all the way to pure value because they sound like everybody else, too. So what I actually got to find is a sweet spot in the middle, which was a little tricky. So what happens is it's like, okay, I got a fuzzy logic algorithm, so What? So I can do a really fast query on a mountain of data without using roll up and cube function. So what? Well, so if a customer calls in and has a question, I can answer it while they're on the phone instead of having to call them back in two days. Ah, now the customer knows how to translate that to value. So I'm looking for this sweet spot point where I maintain my differentiation. So I don't sound like everybody else, but I'm going far enough for the customer to do the leap to make money, save money. That's why this is actually really, really hard. And so a lot of times what you'll get is everyone will say, well, we're just going to talk about the feature. It's a cop out. It's a cop out. It's lazy. We actually have to do this. This is really hard and it sucks, but we have no choice. We really want to be differentiated. We really want to answer the question, not why pick us, but why pick us over the other ways we could solve the problem? You got to nail this, which is differentiated value. Okay, that's number two. Number three, overthinking your market categories, like, actually will kill you. And so this concept of creating a market category, it's less popular now, but a few years ago, people went really nuts on this. And there was this thinking around that there was no way to win a market unless you were the category leader. And so only the category leader is making any money and everybody else is not making any money is simply not true. In fact, I was getting at so much, I was like, is it true? Maybe it is true. Maybe all the companies I worked at that were just working in a sub segment of a really, really big market and made hundreds of millions of dollars, maybe we were all just weirdos. So I went and I did analysis and at the time, I looked at all the companies, tech companies that went public on the nasdaq. So, you know, they're not necessarily big, but big enough to go public. All those companies, how many of those companies had invented a new market category and were playing in this new market category at the time they went public? And 92% were not. So 92% were playing an existing market category and the other 8% had new categories. So it's not like we never do this. Sometimes we do do this. But 92% were playing an existing category, and those were companies like Snowflake, a data warehouse for the cloud. We know what data warehousing is. That's an existing market category for the cloud. Didn't stop them from being the fastest growing tech company ever in the history of the land. Now, if you look what they're doing now, now they're creating market category because they absolutely dominate cloud data warehousing. Now they're trying to create the market category that's different. Right? So sometimes what we have is we don't like the market category we're in because it feels really crowded and we're like, dang, how are we going to win? Cause there's all these big companies. So let me give you an example. This company I worked with and they were in the sales enablement space and so we did this workshop. So we started with, again, if you didn't exist, what would the customer do? So status quo was throw a bunch of stuff on a shared drive, free, easy, whatever. But once the company gets a little bit bigger, really hard to manage, really hard to tell if people are using the right stuff, whatever. Just training material for your salespeople. And then their competitors beyond that were terrifying. So seismic. Who had raised almost a billion high spot, 600 million, they'd raised big tin can. 400 million, they had raised mindsicle, 300 million. They raised little company I'm working with had raised $1 million. What bootstrappers, basically friends and family round. And they're competing with that now. You might look at that and say, well, that's pretty scary. Maybe we don't want to be in that market. But we didn't start with the market category. We're trying to get to differentiated value. Then we're going to make a decision about market category. So we back it up. Who are you competing against? You competing with shared drive or you're competing with these scary dudes? Second, what do we got that they don't have differentiated capability? So the answer in this case was they were the only sales enablement platform built on top of Salesforce. That's the feature. So then you're the customer and you're like, so what? Well, means again, common data platform. So what does that mean? It means you can tie your sales enablement data to your actually sales performance data to answer a question which is like, did the sales enablement work? Did it improve time to first deal? Did it improve time for the salesperson to make quota? That's actually crunchy value. That's actually big deal value. So we got there and it's like, that sounds really compelling. And I'm selling to the head of sales enablement. Like that sounds like something the head of sales enablement cares a lot about. And then we were like, okay, who are we selling to? We're selling to technology companies that hire a lot of salespeople. They're growing really fast. So they have a need to get a lot of salespeople ramped up really quickly. They have the. Have the problem in space or whatever. And we are a really small company, but we've got a good objection handling thing in that if someone says, well, you're really small and it sounds kind of risky. Our big customer was Salesforce.