Selling Software to Consumers: Five Deadly Sins & How to Overcome Them

Introduction:

The software industry is dominated by B2B sales, but Jordan Scheer argues that selling software directly to consumers is a surprisingly viable – and often overlooked – market. In this insightful video, Scheer dismantles the common misconceptions surrounding consumer software sales, revealing five key challenges and offering actionable strategies to overcome them. This isn’t a quick route to riches; it’s a demanding pursuit requiring a unique understanding of consumer psychology and a commitment to building a loyal, engaged audience.

1. The Challenge of Price Sensitivity:

Consumers are notoriously price-sensitive. Unlike businesses with dedicated budgets, consumers often lack a clear understanding of the value they’re receiving. Scheer points out that the average consumer’s willingness to pay for software is surprisingly low – often just a few dollars – leading to a tight profit margin. The key here is to acknowledge this sensitivity and avoid overly aggressive pricing strategies.

2. The Illusion of a Large Audience:

Successfully reaching consumers requires building a sizable audience, but Scheer cautions that simply having a large user base isn’t enough. The challenge lies in attracting and retaining users who are willing to engage with your product and, crucially, pay for it. This demands strategic marketing efforts focused on understanding and catering to consumer preferences.

3. The Need for Broadcast-Style Marketing:

Given consumer’s lack of awareness of their own problems, Scheer advocates for a “broadcast” marketing approach – similar to traditional advertising. This means leveraging channels like TV, online ads, and social media to expose consumers to the problem your software solves and then position your product as the solution. This requires a focus on creating a compelling narrative and tapping into existing consumer trends.

4. Mastering the “Fuzzy Creature” Consumer:

Consumers are driven by emotion, not logic. Scheer uses the metaphor of “fuzzy creatures” to describe the consumer – they are easily swayed by feelings of comfort, security, and even a sense of belonging. Therefore, your software must not just solve a problem, but also make the user feel good about the purchase. This emphasizes the importance of crafting a user experience that’s intuitive, delightful, and builds a sense of trust.

5. Leveraging Viral Loops & Entertainment:

To combat price sensitivity, Scheer suggests embracing models that encourage viral growth. He references the success of companies like King Digital (Candy Crush) – by integrating elements of entertainment and gamification, they created a self-sustaining ecosystem that attracted new users through social sharing and competition. Automation and robust support are key to managing the larger support burden that comes with a consumer base.

Conclusion:

Selling software to consumers is a challenging yet rewarding endeavor. It demands a fundamental shift in mindset, recognizing the unique dynamics of the consumer market. By understanding the pitfalls—price sensitivity, a lack of awareness, emotional drivers, and the need for virality—and implementing Scheer’s strategies—building a broadcast-style marketing campaign, creating an engaging experience, and fostering a loyal community—you can significantly increase your chances of success. However, be prepared for a significant investment of time and effort, as this market requires a dedicated approach focused on creating products that resonate with consumers on a deeper level.

Note: This summary incorporates the main points, arguments, and tone outlined in the transcript. It’s designed to be informative and engaging for someone looking to learn more about selling software to consumers.