The expert named the main reasons for the companies' sales failures
Many companies are looking for problems in marketing and sales, although failure often occurs much earlier — at the level of product compliance with the needs of the audience. Alexander Marfin, a brand strategist and consultant, told Izvestia on November 26 how to find difficulties in business if it seems that "there just aren't enough sales."
The decision—making process is based on simple laws of customer experience: the customer has a need, expectations are formed, and then the person compares the benefits with the costs - monetary, time, emotional, and cognitive. A purchase occurs only when the value of the product is above this cumulative threshold. Value is formed from the rational, emotional and social benefits that a business can manage.
The expert identified four main reasons why customers do not buy. First, companies often appeal to an audience for whom the product is not valuable enough.
"You're reaching out to people for whom your value is too low compared to the cost. Example: a premium food delivery service targets a mass audience — they don't need lunch for 1.2 thousand rubles if they can buy it for 300 rubles near their home," explained Marfin.
Secondly, communication can create incorrect expectations: the product solves the problem, but the customer does not know about it. Thirdly, the value proposition turns out to be too weak against the background of alternatives, as in the case of a store that is no different from a marketplace, but at the same time less convenient. Fourthly, inflated promises undermine confidence: the market quickly notices the discrepancy between reality, the strategist added.
He emphasized that in most cases, the drop in sales is not related to the quality of leads or the work of the sales department, but to gaps in audience, expectations, or the value of the product itself. The expert recommends that companies answer key questions before making changes in marketing or sales: whether the product is really needed by the target audience, whether it fulfills its promise, how to reduce customer costs without discounts, and how to increase perceived benefits.
On November 10, business psychologist and executive coach Victoria Kharitonova told Izvestia how to maintain herself in a world of high business standards. According to her, one should not "go to extremes" in the form of perfectionism or letting go of control. It is important to set one or another "ideal price" without paying more for inflated standards.
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