MARKETING STRATEGIES: Problem recognition

Strange as it may seem, customers don’t always know they have a problem or a need. That is, at least, they have yet to be aware they have a problem or need or are unwilling to acknowledge it.

Sometimes this is a genuine lack of knowledge and at other times it is simply a dormant problem waiting to surface.

There are many situations where an individual or firm is not aware of a problem they need to fix. For example, customers are not always aware when regulations change, technologies have changed or that harsh weather or natural disasters may have caused hidden damage to structures. Often we are not aware of medical problems we have until we undergo a diagnostic test or a regular physical checkup.

Then there are times when a need is only recognised when prompted by a feeling, observation, heard message, read content or smell. So for example, we may not realise we want a coffee until we pass a coffee shop or find out we need a new tyre until we see how low the pressure is. We pass a hairdresser and see in the mirror that we need a cut or overhear an advertisement for a new car and remember that we really should book our car in for a service.

Those situations where the trigger clearly identifies the problem and the link between need and solution are well understood, is a relatively easy one for the customer to solve. This is also a situation where the vendor has a well-stated and clearly defined solution to the identified problem of the customer. The task of the vendor is to put the trigger in the right place with the right content so that the customer recognises the problem.

Problem recognition is often caused by recognising the difference between an ideal state and the current experience. A benchmarking program which shows your inventory turn is twice the industry average or your debtors days are 10 days longer than the average, would identify a potential problem. If your car was experiencing 3km/lt and the normal performance was six, you would recognise a need for an inspection.

• What information seen by the customer would lead them directly to identify a problem?
• What keywords would a customer be using to describe their problems?
• What metrics can we offer to define the ideal and average experience of our target situation?
• What ratios, benchmarks, characteristics or symptoms can we use to assist customers to recognise problems?
• How can we help our customers better define their problems?
• What diagnostic tools, surveys and questionnaires can we provide to assist our customers uncover problems?
• Where would we present these for a customer to see them?
• How could we present our solution relative to the problem identified?

In situations where the customer is unsure of the final solution and the vendor is uncertain as to which solution to apply, the customer is very exposed to buying products or services which may not solve their problem. In these situations, the process used by the vendor to assist the customer to uncover the problem is critical in establishing credibility in the eyes of the customer. The efficiency with which the vendor uncovers the ultimate solution will greatly influence the satisfaction of the customer and ultimately their willingness to refer the vendor to another potential customer.

• How can we more efficiently assist the customer to uncover the underlying problem and then provide an appropriate solution?
• How can we reduce the exposure or risk to the customer as they uncover their requirements?
• How can we efficiently identify those situations where we can be of assistance and those where we would be forced to withdraw upon discovering that we could not help with a final solution?

Tom McKaskill is a successful global serial entrepreneur, educator and author who is a world acknowledged authority on exit strategies and the former Richard Pratt Professor of Entrepreneurship, Australian Graduate School of Entrepreneurship, Swinburne University of Technology, Melbourne, Australia. A series of free eBooks for entrepreneurs and angel and VC investors can be found at his site here.