This week I discovered (and became a little obsessed with) a marketing genius called Rory Sutherland.
He’s not your typical marketer, and focuses more on the psychology of marketing rather than the “DO {THIS} TO GET {RESULT}” approach.
I ended up listening to 10 hours worth of Rory Sutherland podcasts and have already started implementing some of his suggestions.
I think a lot of his advice is really helpful to solo-founders so in today’s post, I’m sharing 7 of his most important ideas.
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1. The Power of Perception
Value is often created in the mind rather than in physical reality.
People value things based on what they mean, not just what they are.
This concept suggests that businesses can create significant value by enhancing how people perceive their products or services, without necessarily changing the products themselves.
And it’s real value, not fake value.
In a restaurant, once you reach a certain level of food quality, what makes the experience truly great are often factors tangential to the food itself.
The ambiance, the theater of service, even who the other diners are can significantly impact the perceived value of the dining experience.
A perfectly prepared meal might be less enjoyable in a restaurant with poor atmosphere or service.
Conversely, average food can be elevated by exceptional surroundings and service.
These psychological factors are legitimate value to the customer.
Takeaway
Focus on how your product or service enhances the user's lifestyle, not just its functional benefits.
2. Psychological Solutions vs. Technological Ones
"Psychological moonshots" can be more effective than technological ones.
Understanding human psychology can lead to innovative, cost-effective solutions that address underlying needs and concerns, often more efficiently than complex technological solutions.
Uber's map feature doesn't reduce actual waiting time but significantly reduces the stress of waiting by providing visibility of the driver's location.
What bothers people about waiting for a taxi isn't actually the duration, but the uncertainty.
By showing the taxi's location on a map, the waiting experience transforms from stressful to relaxed, without changing the actual wait time.
For train journeys, instead of focusing solely on making trains faster (a technological solution), making the journey more enjoyable (a psychological solution) through better Wi-Fi, improved food service, or other amenities can enhance the travel experience more effectively.
Takeaway
Identify and address the emotional or mental challenges your target audience faces, not just the practical ones.
Implement features that make intangible benefits more visible and concrete for users.
3. The Importance of Framing
Framing can dramatically change perceptions.
This technique can turn potential negatives into selling points by altering the context in which they're presented.
Tesla's use of "vegan leather" for their car seats reframes what might have been perceived as plastic seats in the past into an environmentally friendly, ethical choice.
This reframing turns a potential drawback into a selling point, appealing to environmentally conscious consumers.
"Pick-your-own" strawberries versus "cheap" strawberries illustrate another aspect of framing.
Both are less expensive than regular store-bought strawberries, but "pick-your-own" creates a narrative of freshness, fun, and connection to the source of food.
This framing transforms a potentially negative aspect (doing the labor of picking) into a desirable experience, justifying the lower price in a way that doesn't diminish the perceived value of the product.
Takeaway
Choose language and positioning that elevates your offering beyond its basic function.
Frame your pricing in terms of value and investment, not just cost.
4. Counter-Signaling
In branding and personal presentation, "counter-signaling" involves demonstrating confidence through understated behavior or appearance, rather than obvious displays of status.
This subtle approach can be more effective in conveying competence and security than overt shows of success.
In academia, an aspiring professor might dress formally in a suit when trying to secure a named professorship or tenure.
However, a tenured professor, secure in their position, might dress more casually.
This casual approach signals such a high level of competence and security that they don't need to try to impress through their appearance.
In the business world, successful tech CEOs often wear simple, casual clothing to high-profile events.
People who play in very fashionable bands can afford to be extraordinarily scruffy, because their presence in the band renders them so cool and desirable that they don't need to make an effort on the sartorial front.
This counter-signaling demonstrates a level of success and confidence that transcends the need for obvious status symbols.
Takeaway
Consider how your branding can stand out by being understated or authentic, rather than flashy.
Align your brand's appearance with the core values and benefits you offer.
5. Storytelling in Business
Stories are highly effective formats for conveying ideas and information, making complex concepts more accessible and memorable.
They can create emotional connections with audiences, enhancing engagement and recall.
Rory calls stories "the PDF files of human information."
They are universal formats for storing and sharing information effectively.
For instance, the story of Colonel Sanders founding KFC at the age of 65 adds depth and interest to the brand's narrative.
It transforms KFC from just another fast-food chain into a tale of perseverance and late-life success.
This story makes the brand more relatable and memorable, potentially influencing consumer perception and loyalty.
Takeaway
Develop a compelling narrative around why your startup exists and the problem it's solving.
Regularly share customer success stories that highlight the broader impact of your product or service.
6. Balancing Brand and Performance Marketing
While data-driven performance marketing is important, brand building shouldn't be neglected.
A rough 60/40 split in favor of brand marketing is suggested by industry research.
This balance ensures both short-term results and long-term brand health.
American Express provides a compelling example of this balance.
When they invested in mass media advertising (brand marketing), the response rates to their direct mail campaigns (performance marketing) increased significantly.
This demonstrates how brand building can enhance the effectiveness of targeted, performance-driven campaigns.
The brand awareness created through mass media made consumers more receptive to direct marketing efforts, illustrating the synergy between these two approaches.
Takeaway
Balance targeted, performance-based marketing with broader brand-building efforts.
Create content that positions your startup as a thought leader in your industry.
7. The Critical Skill of Communication
Effective communication is vital for business success.
Many great ideas fail to gain traction simply because they aren't communicated compellingly.
The ability to articulate concepts clearly and persuasively can be as important as the quality of the ideas themselves.
This principle is vividly illustrated in the context of shows like Dragon's Den (or Shark Tank in the US).
Many contestants on these shows fail not because their ideas are bad, but because they can't communicate them effectively.
A potentially great product or business concept might be overlooked if the entrepreneur can't articulate its value proposition clearly and engagingly.
This underscores the importance of developing strong communication skills alongside technical or business acumen.
Takeaway
Craft a clear, concise value proposition that encapsulates your unique offering.
Ensure all customer touchpoints use language that is engaging, clear, and aligned with your brand voice.
If you found these ideas intriguing, search for Rory Sutherland for more ideas like these, or I would recommend this podcast appearance as a good starting point.
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Great write up and practical examples from a legendary marketer.