How to Disrupt Your Industry Using Factorial Thinking

Many businesses focus on creating products that fit into the market.  Finding comfort zones of price and features relative to other alternatives in the market.  This approach might make you feel good because you are conceptually hitting the largest possible number of potential current customers, but it forces you to compete on price, a losing business model.  If you want to truly disrupt your industry and build something great, you must change your thinking.

In the book Zero to One, Peter Thiel describes meaningful innovation as being a “10x solution” or a solution that is 10 times better than the next available alternative.  As the founder of PayPal, Thiel intended to “create the world’s first digital currency.”  He failed at that initial goal but because he thought factorially instead of incrementally he still created one of the first billion-dollar digital companies. 

Incremental vs. Factorial Thinking

Innovative thinking happens from outside of the bell curve and moves in – that is starting with factorial thinking and moving towards the middle of the bell curve.  Innovation rarely happens with an incremental idea and moves outward.

Incremental thinking is weak thinking.  Incremental thinking would be a slight improvement or differentiation in the market.  An easy way to tell if your idea is incremental is if it can be easily or quickly copied by a competitor without much change to their infrastructure. Simple examples of incremental ideas would be things like having a sale, giving quantity discounts or offering free shipping.

Factorial Thinking is innovative thinking.  A good factorial idea is one that you are not sure how you can pull off.  Perhaps the idea is so far outside of the market that it is impossible or near impossible, such as Thiel’s digital currency.  This means you are on the right track.  Now, envision your organization operating under the constraint of this idea.  How might you engineer a new business model with this idea?  How might you monetize it?  If you ask these questions you will likely end up with an idea that falls in what we call the “innovation zone.”  It isn’t quite what you set out to accomplish but it led to an idea that allowed you to truly innovate.


All markets and industries operate relative to each other in the kinds of products and services they provide, prices, level of customer service, speed and all types of other attributes.  Each of these attributes have their own bell curve.  A bell curve for price, for example, might look like this if you are a SAAS (Software As A Service) company that charges per month, per seat for a software product.

So, for instance let’s say your company sells a software program for $50 per month, per user and the average of your competitors is also $50 per month, per user.  The fact that you are aligned with the market mean price point should naturally give you comfort but that comfort just means you will blend in with the rest of the alternatives in the market.

Force yourself to consider the far left of the bell curve and ask yourself, “if my product was $0 per month how might I monetize my product?  Could I do a freemium model and put pressure on my competition by eliminating a barrier to entry?  Can I charge through a channel partner or can I monetize the data I collect?  If your industry is charging for a product that can be monetized creatively in another way you can disrupt your industry.

On the other extreme, if my product was $500 month per seat what value would we have to provide to get someone to actually buy and justify that premium?  Maybe we fly out to our customers and train their team on site.  Or maybe we fly them to us to get trained?  Can we create a strategic partnership with a supplier or vendor to create a truly amazing experience?

In either case, you may not be able to achieve either extreme of the bell curve but the ideation process you think through will inevitably create an innovative idea where you might find a new monetization strategy (on the left extreme) or create a new feature in your industry (on the right extreme), both of which can be viable, actionable competitive advantages that allow you to disrupt your industry.

Ask yourself, are you thinking incrementally or factorially?  Remember, the farther you stretch your mind on either side of the bell curve, the more innovative you will become. Conversely, the closer you are to the middle of your industry bell curve, the more you will disappear and blend in with your competitors.

Marketing Math: The Odds of Getting Your Campaign Right

With the seemingly unlimited places to spend your marketing dollars, clients ask us if we can nail down three things in almost every study we do:

  1. What is the right message to win over customers?
  2. Which customer segments should I be targeting?
  3. Which mediums should I be using to maximize ROI?

And they should be asking these three questions if they want to close more business.  Just getting close on any one of these can be a game changer for any business.  But when we start down this path with clients we typically find that they really don’t understand the magnitude of variables involved in their marketing campaigns.

Well, lucky for you the nerds at PROOF have done the math and will explain it in simple, relatable terms.

Most marketing campaigns involve making decisions in 6 stages; product, target market, messages, mediums, investment and measurement.  Here is a simple example of a typical campaign cycle (Not necessarily in chronological order) to illustrate the variables associated with the process.

  1. Product: Select a product or service that you want to promote.  Let’s say for the sake of simplicity that you only have 3 products or service offerings.  In reality I know you likely have many more.
  2. Target: How many target market segments do you have?  This can vary widely depending on your business but let’s say you have only 10 possible targets segments (note: if you only have 10 target segments you better be incredibly specialized or you likely aren’t segmenting your customers effectively).
  3. Message: The actual number of possible messages you can communicate is infinite but typically marketing and leadership get together and make a short list and pick one or two to roll with.  Let’s say that list only has 20 options and you pick 2 you think might work well.
  4. Medium: The number of marketing mediums are really countless, anything from a simple email drip campaign to Snapchatting and running Facebook Live while giving hot air balloon rides at an industry convention.  Not all of them are applicable to every business so let’s say you are reasonably considering only 20 options and selecting 2 to invest in.
  5. Invest & Execute: Once you and your team have selected which product, target market, message and medium you are going to use all you have to do is organize, invest and execute your campaign.  No problem, this is what you pay them for.
  6. Measure: Now let’s hope you have you have taken the proper steps to create your funnel and measure the effectiveness of this campaign.  The overall campaign will look something like the chart below.  Now it’s time to cross our fingers and pray for positive ROI…

The actual number of possible combinations of this wildly simplified example is….


So that’s 1 in 1,083,000.  Basically, you would have a better chance of being struck by lightning in the next 12 months (1 in 960,000) or being crushed by a meteorite (1 in 700,000).  So, how probable do you think it is that you are getting the best results out of your marketing efforts?  If you have been following along and you guessed “about 0%” you would be right – actually its 0.000092336%.

What’s more troublesome is the fact that in the event you DID happen to get one or more of the variables correct there is no way to know.  So, for instance let’s say you got the target market correct based on the product you selected but you got every other variable wrong and your campaign had negative ROI?  Most marketer’s instincts are to try an entirely new set of variables or simply A/B test one variable.  Regardless of what you do or how well you measure behavioral output there is simply no way you could know which parts of this equation you had correct and which you missed on.

What can you do to improve your odds?

  1. Keep Your Campaigns Clear. We see many campaigns that are really creative but they often lack a clear purpose, messaging and goals.  A mentor of mine always said “clarity above cleverness, always.”  Good advice.
  2. Show Discipline. Marketing and advertising has turned into a slippery slope game of tactics and mediums.  Our attention spans are shrinking and so is our patience to see results.  Trying new things can be addicting especially when we don’t see immediate success.  You likely chose your campaign messages and tactics for a reason so stick with it for a bit.
  3. Get Your Blocking and Tackling Nailed Down. Generally, we see that few organizations do any one thing really well on the marketing front while the more successful organizations we see execute one or two tactics incredibly well.  Get really good at a couple of your basics that support your business strategy and align with your customer’s preferences (i.e. email and SEM) and leave the experimental mediums when you are confident and have discretionary funds.

While it is easy to get overwhelmed with the number of possible options of products, targets, messages and mediums available, your best odds to produce positive ROI is to keep it simple and limit experimentation.  If you are ready to experiment beyond your core marketing competencies it might make sense to engage an expert to help you understand the probabilities of success using different mediums to minimize wasted efforts and dollars.

Lucky for you PROOF’s process allows you to isolate all of the variables associated with your different products and services, your different target market segments, value messages and communication mediums.  Instead of guessing, we simple reverse engineer all of these variables and can show you what to say, to which people using what mediums so that you are confident in your strategy and spending and can close more business. 

Click here to contact us to learn more about getting the marketing math right for your campaigns.


My 5 characteristics of a leader…

With a nominated field of 300 talented leaders in Kansas City, I was recently honored to be named one of 25 applicants to receive the NextGen Leadership award.

Honestly, it was the first award I have ever submitted for and I didn’t expect to win – at all.  I was nominated and I pretty much wrote it off after I went to the nomination party and met just 100 of the other nominees personally.  Some of them I knew and some of them I had heard of but most of them seemed more qualified than myself.  Some I know had received leadership training and managed large teams at big companies, neither of which I have had the good fortune to experience.  So then how did I win among a group of highly qualified leaders?  I believe many of the most important attributes of a leader can’t be learned in a training session or a book and I compiled a list of what I think are the most important leadership qualities:

1. A leader is someone who isn’t afraid to change the narrative in an industry and champion that narrative

It takes courage to stand up and say something different, especially when it isn’t popular.  THEN you have to convince people that you aren’t a crazy person.  If you can find a weakness in a market – which there are infinite – and not just point it out but try and build a company it takes grit and dedication with a pinch of myopia.  Remember, your brain doesn’t want you to say anything different than what others say, falling into the crowd is safe – albeit, a false security.  A great leader grabs a flag, creates a new message and starts marching in a different direction.  I believe being the flag bearer for your narrative is a keystone of a great leader.

2. A leader stands strong in the face of both criticism and skepticism

If you start becoming successful expect to be met with both criticism and skepticism – it is part of the reason you know you are on the right path.  Criticism and skepticism comes with the territory when you are trying to do something great.  Our brains release dopamine when we criticize things that are different – it views those things as disrupting the status quo and therefore a threat.  Stand strong when you are met with criticism and as long as you provide a combination of emotional and logical support for your narrative you can turn your biggest skeptics into admirers.

3. A leader takes what they do seriously but doesn’t take themselves seriously

Most great leaders have a humble confidence about them that makes them magnetic to others.  This humble confidence is created by having strong presence of self and knowing when it is time for fun and when it is time for business.  These leaders are self-deprecating on the golf course but serious as a heart attack in the board room.  This personality polarization can be natural but is mostly a learned behavior and can be healthy – it creates an internal equilibrium – and is a strong indicator of a great leader.

4. A leader gains perspective

Having perspective and gaining perspective are two different things.  Having perspective is when you come into a company or market with fresh eyes and fresh ideas.  Gaining perspective is an active process that involves removing yourself from the minutia of your business and looking at your message and operation from a customer or outsider’s perspective.  This is a challenging and humbling exercise that involves eliminating  best practices from your mind and looking at your message and business without assumptions about your customer.

5. A leader invests in their community especially when there is no obvious return on their time

We are only as successful as the community that surrounds us.  Your time as a leader is a priority and volunteering in the community sucks that precious commodity away without a financial return.  So many choose not to engage with their community.  This is a mistake.  Immersing yourself in your community provides perspective (see #4) on not only your personal life but your business.  Some of your best ideas will come to you when you are out of your comfort zone and doing something that is completely selfless.

While there are many leadership qualities that are valuable, these are the 5 that I consistently see in great leaders.  I also see that a natural byproduct of a great leader is that they tend to create other leaders – so in the spirit of this I have to ask you…What is the leadership narrative you are championing?

Your Customers Don’t Care About You

It’s true.

The moment you start talking about yourself is the moment you start losing.

Personally, I am just as guilty as the next guy when it comes to this, it’s challenging not to engage in self-gratifying communication.  Like most, I am passionate about what I do and I want the person across from me to be confident that I am able to deliver on our company promise.There is no doubt that as human beings we have a natural affinity to talk about ourselves; self-promotion is hard-wired into our DNA as a survival mechanism.  However, when it comes to our businesses it seems that all we do is talk about ourselves.  At least in most personal conversations there is some give and take. But whether it is on our website, in our client presentations or in a sales pitch all we do is talk about our capabilities, longevity, happy clients, experience with a little bit of the client peppered in so we don’t look too selfish.

We have had several clients ask how much they should be talking about themselves to their customers so we starting digging into our data to find some answers.

For reference, our company, PROOF, uses customer insights and data to help companies identify the most effective messages and communication to differentiate themselves and drive sales.  So we have mountains of data around what kinds of messages are most effective across a litany of industries.

Out of the last 100 studies we have run we tested an average of 15 communication concepts per study. On many of these studies we tested communication concepts that were about the client (i.e.  “We have won several industry awards,” “Our company has worked in your industry for XX years” and “We have a proprietary process that does XYZ”) and then tested how important those communications were when considering whether to hire them.

Here are the 5 most commonly used self-important communications used by companies, what percent of the time we tested those communications and where they ranked (out of 15) in importance to their customers and prospects:

Communication tested % of the time How important (out of 15)
Industry expertise 74 percent 12th
Awards 71 percent 15th
Experience / Other clients 65 percent 9th
Proprietary IP / Method 59 percent 11th
Exclusive partnerships 42 percent 14th

What this means is that there is an average of 11 different communications that are more important to your customers than something about you.

So, if you are talking about yourself you are losing the battle to win over customers and losing big.  Think about your elevator pitch, the content on your website, your collateral, etc. How much of it is about you or your company?

Here is a quick exercise:

  1. Write down 10 things that you think will win over your customers and you can’t talk about yourself.
  2. Which one of those things do you think is most important?
  3. How many times do you talk about that vs. yourself in your communications?

8 key ingredients to a killer pitch

Recently I worked with some startups for LaunchKC and several folks asked me if I had my pitch “system” written down.

But after working with hundreds of inventors and entrepreneurs and sitting in on literally thousands of pitches I have seen some consistencies with those that work and those that don’t.I hadn’t, so I thought it was time I did. To be fair, you will find no shortage of people who will give you advice on your pitch. Nor will you have any particular difficulty finding a book on the subject.

The following is the system that I suggest but is by no means scientifically proven. It is just my preference — but sometimes having a system or a starting point can make all the difference.

Step 1:  Establish passion
Establishing passion means to emotionally communicate — via story — why you are on this entrepreneurial journey.

This could be a crisis you overcame or a tragedy you want to prevent for others. I rarely see people follow this step but it is critical for two reasons. One, it gets the audience emotionally involved in your pitch and on your side. Two, investors look for passion because it can mean that you have a gear that others may not have. It indicates that “giving up” isn’t an option for you.

Chris Goode with Ruby Jeans Juicery does a great job of establishing passion by telling the story about how his grandmother, Ruby Jean, battled health issues and how that is driving his vision.

Step 2:  Establish credibility
Establishing your credibility is how you put your audience at ease that you are not only passionately committed to a successful venture but that you also have the chops to back it up.

This is where you tout your education, professional experience, leadership capabilities and subject matter expertise. Equally important is your ability to convey your leadership abilities.  Investors are not only investing in your idea and your traction but your abilities as a leader to grow the company to a point.

PerfectCube co-founders Mark Calhoun and Jim Starcev have a near perfect example of establishing credibility by touting both their ability to build, grow and sell a software company and their subject matter expertise of owning small retail shops.

Step 3:  Identify the problem and your “why”
Identifying your problem might seem easy but this is where most pitches tank.

The more simply and succinctly your problem is stated, the better off you are and the better your pitch will go. I like to associate problem statement and your company’s “why” because they should go hand-in-hand.

Jason Tatge with local ag tech startup Farmobile killed step 3 with a hyper-simple problem that naturally dovetailed into his “why” by saying that ‘farmers should own their own data.’ It’s supported by him making a case that Farmobile is empowering the little guy: the independent farmer.

Step 4:  Identify the “how”
“How” a company executes on a problem is typically what makes them great. Starbucks doesn’t have great coffee but “how” they execute the coffee experience is what made them great.

Your “how” is generally where your functional or conceptual competitive advantage lies and is therefore where investors get really excited. Blooom has done an amazing job of creating a simple and disruptive “how” by showing people the state of their 401(k) with the simplicity of a flower.

Step 5:  Bullet point your “what”
By this point, if your audience can’t infer what it is you do you screwed up one or both of steps 3 and 4.

When it comes to your pitch nobody really cares “what” it is that you do.  It almost seems illogical, but it’s true. The reason is because what you do doesn’t make you special and won’t communicate your competitive advantage. For this reason, I recommend bullet pointing your what to keep it simple and to the point. It will also force you to simplify what is almost certainly an over-communicated and unexciting element of your pitch.

Step 6: Show off your team
It is a natural tendency to talk about the size and scope of your people because our instincts tell us there is a direct correlation to credibility and the size of our team. This is untrue.

Sometimes the presence of a robust team can do the opposite. Hiring is a challenging and expensive endeavor and smart investors can spot good teams and whether they are the appropriate size based on industry, traction to date and other relevant business factors. Most of the time, less is more. The one time that boasting your team is a smart idea is when they strengthen an area where you have a potential weakness.

Step 7: Talk about your wins
General George S. Patton famously said “America loves winners.”

Investors and bankers aren’t much different. There are some clear rules, however, when discussing your wins. Oren Klaff discusses the law of averages in his book Pitch Anything, which states that the mind averages examples of wins that you state in a pitch.

What this means is that our mind will tend to dilute the perceived value of a win relative to the importance of the others that you mention. For example: If you have a two customers, one large company and one small company, don’t mention the smaller company because it dilutes your big win. This is another example where less is more and quality trumps quantity.

Step 8: End humbly
When it comes to concluding your pitch, I generally see two different endings. I call them the “know it all” ending and the “holy sh*t my presentation is over” ending.

The former is where you simply restate the contents of your presentation, which is what our college professors taught us to do, but is remarkably ineffective. The “holy sh*t my presentation is over” ending is where the presenter looks back at their screen and seem shocked that they have arrived at their “Questions” slide and then proceeds to stumble into the statement “Thank you, I would be happy to answer any questions.” Somehow, this ending tends to be roughly sum up roughly 50% of all presentations and it drives investors nuts.

Instead, I recommend asking a question to end your pitch. It can be as simple as “Thank you for allowing us time to meet with you today, our team is extremely good at what we do but we lack some things we need to turn the corner. We hope that with added strategic partnerships and guidance in acquisitions it will give us the bump we need to disrupt this market.  If there is any advice you could offer us in this area based on your experience we would be glad to learn.”

This kind of ending will accomplish a couple important things. First, being vulnerable and showing you know where your organization is strong and where it needs help will show a humble and teachable nature — a characteristic that is highly desirable to investors. Secondly, you have directed the conversation after your pitch into an area that you want to talk about.

Remember, the most important part of a pitch is what happens in the conversations after it is over.

Your Wimpy Brand Needs to Pick a Fight

Think about your three biggest competitors. … Got ‘em?

Now, what do you say when a potential customer asks you why they should do business with you instead of them?

More often than not your response contains subjective and ineffective language. You say things like “x years in business, trusted leader, great customer service, quality, value, blah, blah, blah.”

Ever stop to think why they ask you that question?

The reason isn’t because they’re challenging you — it’s because they honestly don’t know. They don’t know because you look, sound and smell just like those other three competitors and they have no idea why you are different or why they should hire you.

I know what you’re thinking. “We are not like our competitors. We are much better …”  and you can likely site 5 to 10 real-world examples of how you are better. If this is the case, then why does your pitch sound just like theirs? Why do you copy each other’s brochures? And why do your websites look like clones?

The answer is because you are a wimp.

Probably not you personally, but your company is almost certainly a wimp.

Most people in business are highly competitive by nature, so why aren’t their businesses reflective of that competitive spirit? Most “competitors” act more like 13-year-old best friends who watch the same shows (training); copy each other’s speech (industry lingo); and mimic each other’s behavior (marketing), catchphrases (messaging) and clothes (website) rather than acting like competitive enterprises that are vying for winning business to stay alive.

So how do you escape the homogeneity and not be a wimp? You pick a fight.

Picking a fight forces you to take a position and stick to it.

Picking a fight and owning a position not only shows industry leadership, it shows vision and confidence. You will begin to attract the right people who agree with your position and they will fight vigorously on your side.

Here are five steps on how you pick a fight and WIN:
1. Establish a hypothesis of where your competition is failing its customers.
2. Validate that hypothesis with consumer research and confirm the need.
3. Develop objective language that reinforces the need and back it up with numbers.
4. Solidify your position and create a stark contrast from the rest of your industry by developing expertise and consistency in that position across all of your training, speech, marketing, messaging and packaging.
5. Pick a fight with your competition and call them out.

Demand to be better, have a chip on your shoulder, stand up for yourself and pick a fight with your competitors. If you do, you will earn the respect of your team, your colleagues and start winning over your customers.

But you can’t win if you don’t pick a fight.

Stop Drinking the ‘Competitive Advantage’ Kool-Aid

Your competitive advantage doesn’t exist anymore.

Not only is this true but the whole concept of “competitive advantage” as you understand it likely doesn’t exist either.

What’s taken its place is a cool new thing called “transient advantage.” Transient advantage is what happens when technology exponentially advances to the point that “cutting edge” perpetually becomes “yesterday’s news.” Maintaining long-term profitability based only on a product or service is almost impossible to do.

Transient advantage, by definition, isn’t sustainable.

Previously, established companies had all the advantage when it came to researching, developing and launching a product or service. From market research to parts manufacturing to advertising and supply chain management, you had to have a big budget just to get off the ground.

Now, it’s possible for nearly anyone to enter the marketplace with an idea and be able to realize many of these logistical advantages. For example, suppliers have innovated cost efficiencies that allow them to produce smaller orders for smaller customers, eliminating market barriers to entry.

So if a business is no longer able to sustain true competitive advantage within its product or service deliverable, how can it survive? It’s not easy, but it can be done.

Sustainable competitive advantage may be dead on the production line, but it’s alive and well in the minds of consumers.

Consider how difficult would it be for a competitor to take “greeting cards” away from Hallmark, “low prices” from Walmart, or “search” from Google. The competitive advantages of these brands are predicated on their ability to create and dominate a category in the mind and therefore the marketplace.

These brands have real competitive advantage in the form of mindshare dominance within their respective industries. This dominance allows them to profit from overall growth of the industry. It allows them to set the rules for what the industry’s innovation looks like. It allows them to change the playing field.

The consumer’s mind is theirs to shape because they create and own their respective industries.

Consider the “affordable airline,” Southwest Airlines. Southwest entered the marketplace asserting they have the cheapest available flights. However, even during their inflight introductions, they now boast that the aren’t the most affordable, but that they provide better, no-hassle service at a low cost.

Despite no longer truly having the competitive advantage on being the cheapest, they are one of the few airlines that regularly make a profit while owning that visceral “affordable” position in our minds.

If you are relying on your product’s functionality to build your brand, you are fighting a losing battle.

Here’s what to focus on instead.

  1.    Identify the emotional needs of your customer.
  2.    Figure out how your product is objectively different relative to available alternatives.
  3.    Align No. 1 and No. 2 to narrow your target market to a specific customer.

If you don’t, you will be forced to rely on communicating a functional competitive advantage that lasts only as long as the next new thing — which these days is hardly any time at all.

Narrow Your Focus to Win on an Exit

At the time it wasn’t quite so obvious, but now I realize that I was incredibly fortunate to spend the first part of my career in small-market mergers and acquisitions.

Turns out it’s an arena where one can acquire an incredible depth and breadth of business knowledge. On an almost daily basis, I was learning about the successes and failures of an endless variety of businesses, how they overcame obstacles and ultimately what those businesses were worth and how the transactions were structured.

After assessing and valuing literally hundreds of businesses over a decade, I began to notice an interesting pattern emerge. There was in inverse correlation between a company’s scope — the breadth/focus of what it does — and the multiple of EBITDA used to establish its selling price.

This correlation infers that our instincts as business owners and much of traditional business theory could be doing more harm than good. The customary method of growing our business through diversification in order to mitigate risk is patently false.

To put it more simply, when it comes to your business: The less you do, the more you’re worth.

And here’s why.

These companies that “did less,” or had a very narrow focus, tended to be able to communicate their brand and what they did more simply. As a result, they were generally viewed as experts in their industry. They also tended to grow faster, have less debt and spent less money on marketing. And because they transacted for a higher multiple, the owners had more money in their pockets when the companies sold.

Conversely, those companies that “did more,” or had a very broad focus, generally had higher gross revenue but their profitability was less stable. This was because they had to manage multiple product or service lines, diverse customer segments, multiple sales channels and more complex infrastructures. They were less agile, and when everything was said and done, the ownership generally received a lower net payout when the companies sold.

To be effective, ignore your business survival instincts. Instead of diversifying what you stand for in the market, simplify and narrow your scope. “Do less” in the mind of your consumers and expect a higher return when it comes time to sell.

Is your pitch getting emotional? Because it should be.

When it comes to selling your product or service, the devil truly is in the details.

Despite what bad salesmen might tell you, people don’t buy based on features or price. Decision making is rooted primarily in the part of our brain that controls emotions.

Science shows that regardless of whether we are buying a car, purchasing a pair of jeans or choosing a place to eat lunch, our emotions are making the call and we will oftentimes disregard hard facts to make sure that our emotional brain is satisfied.

Allow me to illustrate by getting a little nerdy. Neurobiologist Antonio Damasio created the Somatic Marker hypothesis.  The hypothesis refutes the old neuroscience that our decision making is rooted in logic. Damazio studied people who had damaged their limbic systems and were unable to produce emotions. He noted that these people were unable to make even the simplest decisions and became paralyzed with endless logical deliberation.

The findings of the study were that our emotions are responsible for decision making. A product’s features justify — in a logical fashion — emotional response.

Features become convenient logical consequences that we are excited to retain or decide to live without based on how we feel about the brand or product. We typically only examine features to logically support the emotional decision that we have already made.

I frequently hear from sales teams that they lose a sale in the features conversation. What they don’t realize is that, without an emotional connection to the product, they never had a chance at the sale in the first place. Features help us rationalize purchases, but emotional connection must come first.

As an example, ever ask someone why they bought the new iPhone? People will tell you things like, “it has a faster processor, a bigger hard drive and a better camera,” which are criteria that multiple products could satisfy, and at a lower cost. Push harder, and you’ll likely get, “I just like it more, alright? Apple is just a better brand!” We are often unable to articulate the emotional — and often subconscious — connections we have brands.

The best way to sell your brand is to emulate the emotional connection first, and sell the emotional benefits to your product or service second.

An indication that you aren’t selling emotion is if you think price is paramount. Any brand, product or service devoid of emotion is forced to compete on price and become a commodity.

A simple exercise to find your product’s emotional connection is to ask yourself what situation(s) must exist for your customer to pay double what they do now. Make a list of your answers. Then triple the price, then quadruple it and so on. Developing a brand around these answers will make your value proposition stronger, and you will likely gain a better understanding of your target market.

Ultimately, we are all at the mercy of our emotions. The moment you start selling on features and ignoring the emotional connection to your brand is the moment you start losing the sale.

Is That a Lion? Yes, and it’s Keeping Your Business from Growing

Ever watch one of those nature shows where you see a herd of gazelle that gets spooked by a lion and they all take off running together?

In the ensuing chaos, the camera always follows that one gazelle that breaks from the pack. Why do they follow that one gazelle? The correct answer is “Good TV.” That gazelle is about to meet the business end of the aforementioned lion. Regardless of what happens to the gazelle, the critical moment is when that one gazelle breaks from the pack, isolated and weak.

These days we don’t run away from predators all that often, but as mammals, we can empathize with the gazelle herd because our brains are hardwired to understand their group dynamic.  Our primal instincts are to stay with the pack, to alleviate risk and to survive.  Our brains actually release a chemical created in the hypothalamus to ensure that we follow this instinct.

At the same time that our brain is creating chemicals encouraging us to follow the herd, our hypothalamus also produces a chemical that will actually slow down our perception of time when it sees something different. I call this our “Lion Recognition” instinct.

Our hypothalamus releases these chemicals in an effort to keep us alive but, ironically, it keeps us from being successful in business.  In business we tend to adopt the herd mentality, mimicking the marketplace with what is known: If someone else is doing it then we know it is safe.

It’s strange how on one hand our brain is telling us, “For God’s sake do the same thing as everyone else or you will die.” And on the other hand, our higher reasoning is saying, “If you don’t do anything different how the hell am I supposed to see you?”  I believe that this fundamental paradox is the root of the reason that many businesses fail.

As a business owner you must realize that in order to be noticed and remembered, you must be the gazelle that breaks from the pack.  The camera will follow.  The only difference is that in business, there is no literal lion.  The only lion is your own fear of doing something different.

Great brands are different. Great brands aren’t afraid to break from the pack. Great brands have realized that the camera’s eye is more important to your business than outrunning imaginary lions.