Two different products require two different pitches. For your customer, your product is, well, your product. For an investor, your product is a stake in your business, and the potential returns they’re going to get from it.
The motivation of each ‘customer’ is very different. This means two totally different approaches are required in getting them on board. Let’s explore the differences.
A customer may know much more about your product or service than an investor. They have first-hand experience of the problem they’re hoping your product will solve. An investor may not have experienced this problem. Their interest is purely financially driven. You’ll need to help them understand the problem your customers are having in order to get their buy-in.
On the other hand, a customer has much less interest in the operational workings of your business. They’re only interested in your solution. Your investor pitch needs to cover everything the customer doesn’t need to know - your overheads, your marketing plan, your leadership team, your predictions and forecasts, and so on.
Emotion vs. logic
Motivations for purchase/buy-in will be very different. For customers, products usually come with some degree of emotion built into the purchase. Even utilitarian items like power tools, homeware, and gym equipment play on all kinds of lifestyle, aspiration, memorial, and associative drives. If you can identify and cater to these, you’ll have a relatively easy time pitching to a customer.
Investor decisions are based on cold, hard logic. Your investor is unlikely to have an emotional connection to your offer (except in certain cases like angel investors passionate about your sector or innovation in general). This means you’ll need to be armed to the hilt with answers to every question they might throw at you.
Use of language
Pitching to customers involves emotive, creative language, and in some cases, sector-specific jargon.
When pitching to investors, all of that needs to be cut out. As we mentioned above, investors may not have any real-world experience of your product. You’ll need to use basic language and accurate, easy-to-follow technical descriptions. Investors aren’t afraid to ask questions that might be considered ‘basic’ within your given industry, and you’ll need to be able to respond on that level. The easier you make it for them to understand, the more confidence they’ll have in your operation.
Whether it’s on your campaign page, website, within a direct email, or in-store, your customer gives you less than 30 seconds to make your ‘pitch’. This means your sales and marketing solutions will need to be fast-working and efficient. An investor will likely give you more time depending on the stage of the conversation. If you’ve already managed to secure their interest, 30% of your investor pitching should be reserved for Q&A. If you’re still trying to grab their attention, the first 30 seconds of a 2-minute pitch are crucial.
Finishing with a checklist for what each customer will want to hear:
- How you solve their problem
- How much it costs
- How do they purchase/sign up
- What you do and why it’s unique
- How far along you are in your launch
- How your pricing is structured
- What is the wider market situation?
This is an area we can help you with in greater depth as a listee on the STAX platform. Speak to us here about how we can help.