Most customers are not ready to buy today

A fraction of the total market is ready to purchase, but the rest may be primed.

No matter how desirable a company’s product is, only a tiny percentage of the market will take notice of it at any given time. About three percent in fact. Only another seven percent are even looking for a solution, of which your company may be but one in many available options. Though you blast the remaining 90% with marketing ads, sales pitches, and free samples, they are simply not in the market. They will tune out your ads, avoid your sales pitches, and never pay money for your product because they aren’t looking for an answer.

A startup that targets the small percentage who are immediately interested may get started, but their available customer base is severely limited. A company can wait for the thirty percent–those who aren’t ready yet but know they need a solution–to begin their search for a solution, but this means the company will be pitted against every other google-able competitor. With initiative, however, a company can begin to build relationships with their clients before they’re ready to purchase their product and, when the customer is ready for it, be the first name on the list. Even better, there may never be a list.

This is an enlightening insight that helps explain why a startup with little competition can see a large pool of potential customers and yet be unable to hook the majority of them. It shows the brilliance of companies like Apple who not only solve problems but actually convince people they need the problem solved.

At this stage of my business, the only brand I’ve got is myself. From the very beginning of a startup, building customer trust, even if they’re not ready to buy, will be key to capturing as much of Miller’s triangle (Miller, loc. 1535) as my company and product can.

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