In an aggressive marketplace filled with hungry competitors, demanding customers and too little time, business owners often fall into the habit of overpromising to win new business. And it doesn’t just happen in the small business universe – we all have stories of products and services that simply do not live up to the marketing hype or sales promises, and enterprise suppliers are just as guilty as struggling small business owners.
In the enterprise marketplace, however, corporate legal departments and investors are closely scrutinizing product claims and marketing copy like never before. The threat of litigation and exchange commission violations looms large, especially for big public companies with deep pockets. In the small business market, the threat is considered to be less damaging: private small companies have more operational latitude and don’t report to shareholders. While this flexibility offers small business owners more control over how they choose to run their operations, the issue of unsupported claims has never been more urgent.
In the current economy, buyers of every stripe (consumers, small businesses, large organizations) are paying more attention to the way they acquire products and services. Search engine-based research is enabling more rigorous buying practices and feature/function comparison shopping. When faced with so much online competition, it’s tempting to think that some creative copywriting won’t impact your revenues or your existing customer relationships, right? Wrong. Making unsupported claims might seem innocuous and part of the marketing game, but both consumers and business customers are now demanding complete transparency and full disclosure.
Here are four reasons why you should stick to the rule of making credible claims:
- Winning New Business You Can’t Deliver Does More Harm Than Good – Contrary to what you might think, you can’t appease new customers who have been sold a bill of goods. What’s the point of acquiring business that you know you can’t deliver, or offering products or services that don’t match your purported claims? Customers won’t tolerate it and they’ll be very vocal about sharing their experience through online industry communities. The potential for negative word of mouth is real: you’ll not only lose business from existing customers, you’ll also alienate new prospects in the research phase.
- Credible Claims Build Trust – Think about the value of ongoing client relationships versus making quick, one-off sales. Sales based on exaggerated claims will never translate into repeat purchases. Winning customers based on honesty, transparency and business integrity will appeal to buyers looking for a relationship – not just a product or service. These recurring customer relationships will drive your future sales pipeline far more effectively than a larger volume of one-time purchases.
- Not Every Customer is Obsessed with Features – Your customers are demanding more responsible business relationships, and many will choose suppliers that conduct their businesses ethically and equitably. Putting more energy into the quality of your customer interactions will yield higher returns than duplicitous sales and marketing practices over the long term.
- Referral Business is Vital – Successfully meeting your customers’ expectations based on credible claims has a far more positive influence on your referral business. In a lean economy, buyers place more stock then ever in trusted recommendations and referrals. Failing to deliver on false claims will stop referral momentum in its tracks.