World-renowned investor, Charlie Munger, is quoted as saying:
“Show me the incentives and I will show you the outcome.”
Economics is almost entirely based on incentives. You could argue it’s the driving force behind all human behaviour.
Things like profit upside potential or de-risking a decision are examples of financial incentives involved in a purchase decision.
Hiring a “turn-key” solution might feel like the best option for a time-strapped entrepreneur with no bandwidth, even if a better-qualified (but more time consuming option) is out there.
In a lot of B2B purchase decisions, there’s the financial buyer and the consumer of a product or service. Those people may or may not overlap.
For example, the financial buyer (ie. the business owner) often has a different incentive than the marketing manager (i.e. the consumer).
You need to understand those differences if you’re going to sell into an organization.
Whatever you’re selling—be it for you or your clients—the better you understand the incentives of the decision makers and consumers involved, the better you’ll be able to sell and deliver it.
Good marketers are keen observers of incentives.