Businesses Buy Differently

My post on Why Nobody Can Copy Apple has become one of the most read posts I’ve ever written (thanks @gruber). Many commenters are asking me “Can you describe more what the behaviors are that are different when building for business vs. consumers?” There are many, but central is the sales motion: the approach and process an organization uses to sell product. The sales motion for businesses is diametrically different than the sales motion for consumers.

One of my favorite truisms is

“People don’t buy things, people are sold things.”

Businesses buy products differently than consumers. But, just like consumers, they only really buy things that are sold to them:

“Businesses don’t buy things, businesses are sold things.”

How do businesses buy things differently? I love this answer by Steve Jobs from an interview he did in 2010 (emphasis mine):

“What I love about the consumer market, that I always hated about the enterprise market, is that we come up with a product, we try to tell everybody about it, and every person votes for themselves. They go ‘yes’ or ‘no,’ and if enough of them say ‘yes,’ we get to come to work tomorrow. That’s how it works. It’s really simple. With the enterprise market, it’s not so simple. The people that use the products don’t decide for themselves, and the people that make those decisions sometimes are confused. We love just trying to make the best products in the world for people and having them tell us by how they vote with their wallets whether we’re on track or not.” – Steve Jobs, June 1, 2010

A commenter on my Why Nobody Can Copy Apple post did a great job of explaining this in more detail:

“The problem is that the business…are attempting to maximize their profit, so they want to buy bulk, cheap product that fulfills all of the criteria they come up with. And these criteria they come up with are universally profit-driven or simply stupid. They want X features, Y functionality, because they need to do aX and aY with the product. They don’t care about bX and bY, which in this case are the entire experience of the product, because it’s not something that is quantitated in the corporate machine.”

Organizations that build product for businesses must SELL in a way that is compatible with the way the business BUYS. The organization, say Microsoft’s Interactive Entertainment Business (IEB), or Microsoft’s Business Division (MBD), needs a sales motion that fits the customer.

IEB, which makes Xbox, has a sales motion centered around allowing the end-user viscerally engage with the product at retail (fed by ‘air cover’ marketing and advertising) . In MBS’s case, selling, say Microsoft SharePoint, the sales motion is about having an army of Microsoft sales people (literally tens of thousands of employees are salespeople) call on CIOs and other “business decision makers” to convince them the speeds & feeds of the product address some pain point.

These sales motions and the sales force behind them are radically different.

Another of my favorite truisms is

“Ideas are worthless. Execution is everything. But getting people to pay for something is MORE everything.”

To be successful (profitable), an organization that builds something must be driven by how the product is sold. The product managers, designers, engineers, testers, and middle-managers all end up being highly influenced by the sales motion.

Therefore, in an organization focused on the consumer, every single person is attuned to the motion of sales. Which is a consumer focused motion (typically online or retail). If they are asked to focus on business customers at the same time, they lose focus. And a loss of focus creates mediocre products. Likewise, a business product organization that also has to sell to consumers will suffer a lack of focus.

Microsoft has done an admirable job in setting up IEB to be mostly consumer focused. This is why the Xbox and related products are pretty damn good. But IEB’s products are not as consistently excellent because they depend on other parts of Microsoft that are not as consumer focused.

Windows? Not so much. And the reason, at the end of the day is the bifurcation of focus between business customers and consumer customers.

Comments encouraged. Keep ‘em clean.

© Charlie Kindel. All Rights Reserved.