Sell outcomes, not just software: The power of AI startups

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Sep 23, 2023
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Sell outcomes, not just software: The power of AI startups
In the fast-paced world of technology, AI startups are constantly seeking innovative ways to differentiate themselves and gain a competitive edge. One strategy that has been gaining traction is the shift from selling software to selling work and outcomes. This approach opens up new opportunities and allows AI startups to tap into vertical markets that may not have otherwise supported a software company.
When an AI startup sells work, the sales cycle is different compared to selling software. Instead of pitching the software's features and capabilities, the focus shifts to the specific work that the AI solution can perform for the customer. This change in approach allows the startup to showcase the direct value it can bring to the customer's business, rather than selling the promise of increased productivity or efficiency.
Furthermore, selling work is priced relative to the cost of a human performing the same task. This pricing model demonstrates the cost-effectiveness of the AI solution and allows the customer to see the immediate return on investment. By highlighting the financial benefits, AI startups can overcome potential objections related to the upfront cost of implementing AI technology.
In addition, when a startup sells work, the competition shifts. Instead of competing solely against other software companies, the competition now includes outsourced groups internationally. This opens up a whole new landscape of opportunities as AI startups can leverage their own human capital to provide a unique selling proposition. By combining the power of AI technology with the expertise of their team, startups can offer a more comprehensive solution that goes beyond what traditional software companies can provide.
One concept that aligns well with this shift in selling work is the notion of the "interest graph." The interest graph refers to the network of connections formed based on a person's hobbies, preferences, interests, and beliefs. It is essentially a relationship map that connects individuals with products, services, and information that align with their interests. This concept has gained attention in the realms of advertising, e-commerce, and marketing, as it allows businesses to directly target individuals based on their specific interests and preferences.
By leveraging the interest graph, AI startups can further enhance their ability to sell work and outcomes. They can analyze the interest graph of their target customers to gain a deeper understanding of their needs and preferences. This knowledge can then be used to tailor their AI solutions to deliver customized outcomes that align with the customer's interests. This personalized approach not only increases the likelihood of a successful sale but also strengthens the long-term relationship between the startup and the customer.
To effectively sell work and outcomes, AI startups should consider incorporating the following actionable advice:
- 1. Focus on the specific work: Instead of solely promoting the features and capabilities of the AI software, highlight the specific work that the solution can perform for the customer. This helps the customer visualize the direct value and impact of the AI technology on their business.
- 2. Demonstrate cost-effectiveness: Price the work relative to the cost of a human performing the same task. By showcasing the financial benefits and return on investment, startups can overcome objections related to the upfront cost of implementing AI technology.
- 3. Leverage the interest graph: Analyze the interest graph of target customers to gain insights into their needs and preferences. Tailor the AI solutions to deliver customized outcomes that align with the customer's interests, increasing the likelihood of a successful sale and fostering long-term relationships.
In conclusion, AI startups can unlock new opportunities and gain a competitive edge by shifting their focus from selling software to selling work and outcomes. By adopting this approach, startups can differentiate themselves in the market, demonstrate the cost-effectiveness of their solutions, and leverage the power of the interest graph to deliver personalized outcomes. By following the actionable advice outlined above, AI startups can position themselves for success in an ever-evolving technological landscape.
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