In some markets, there is a top choice product, one that a large majority of people would agree is the best. It almost defines the market, it’s such a clear #1 choice.
It is the obvious choice.
Hold that word in your head, we’ll come back to it.
Markets without an obvious choice are in price wars. Look at airlines – it’s a commodity offering differentiated only by a loyalty program. There is no #1 brand. Same for hotels. Gas stations. These companies duke it out for tiny market share gains, almost in homeostasis.
But some markets have #1 product/service that forces shoppers into the decision to buy the best or to settle for an alternative. In consumer electronics, its Apple. Their stuff costs more but it lasts and it carries market cachet for its UI and innovation. Buy a Dell, buy a Surface, buy a Pixel and you will have to defend your decision to on-lookers. In trucks, it’s the Ford F150. In streaming music, it’s Spotify.
These markets have an obvious leader and a cohort of followers. The leader takes price and has superior margins to their lesser competition, extending their lead. The followers model themselves after the leader without making up ground. Surface won’t out-tablet iPad.
In B2B, the opportunity for obviousness couldn’t be more ripe. B2B companies don’t think this way, they focus on winning, deal by deal. Which no one can argue. But the real winner is the company who is also a long-term investor. This company complements their intensity in Customer acquisition with intentional focus on being the preferred choice in the market.
This will build a strong tailwind behind your sales force.
Great, but how?
OK, here it is, all of marketing boiled down into 3 words. Here goes.
Familiarity >>> Preference >>> Choice
Familiarity drives preferences drives choice.
Human decision-making shows an outsized impact of familiarity. It’s why you drive past untold restaurants to go to Chipotle. It taps into our innate drive for safety and certainty and risk avoidance.
When familiarity accumulates you will show preference for that product over others. Even when it’s not a product category you have any experience with. Humans look to employ some decision-making rubric, to make sense of an overload of choices. Familiarity neatly provides this.
And when we find ourselves in the market, when we find ourselves having to make a buying choice, the familiarity incumbent enters the consideration with a massive advantage. It becomes the default benchmark for all other options in the market. It’s why 65% of the time, car owners replace the worn-out tires on their car with whatever brand the car came with originally. There will only be 2 maybe 3 times in my life when I need to purchase a central air conditioning unit for my home. The chances that Trane or American Standard wins that business from me is enormous. There are many other brands like Bryant, Rheem, Amana, or Ruud, but I’m already predisposed against them because I’ve barely heard of them.
Your business needs to invest routinely in driving market familiarity with your company. It pays compound interest.
Your business needs to invest routinely in driving market familiarity with your company. It pays compound interest.
Online, vehicle signage, tradeshow presence, direct mail, sponsorships, PR, advertising. Keep your messaging simple and consistent, nothing viewers need to think about it. But keep it going, don’t judge it entirely based on leads generated. We all love leads, but the familiarity that your advertising is generating over time will propel your win rates for years to come.
Note: Google can be a shortcut for you here. Buyers know that ranking on Google is driven by popularity. When buying categories people are unfamiliar with, the search ranking itself suggests which companies/brands the person should investigate. You should worry about your Google search ranking, particularly your organic search results (ie, those you don’t pay for).