Customer profit as proof claim

We continue the section on proof claims, which are pieces of evidence you include in your prospecting conversations to demonstrate results in an attempt to convince prospects of the value of your products.

Probably the best proof claim to support the argument to sell your product or service is showing the performance benefits of your customers. Our customers have 20%, 30%, 50% ROA. The higher the number, the better.

Now, this is, of course, important, but profitability ratios are misleading indicators to use in your prospecting messages. I have seen companies manipulatively using these indicators many times.

Reverse causation makes profitability indicators irrelevant and potentially misleading. As usual, correlation does not mean causation. What if you are selected by profitable companies because unprofitable companies do not have the discretionary budget to purchase your services? If companies struggle to make money, it is unlikely they can find the budget to purchase your services, while profitable companies are in a position to allocate more budget to the activities you provide, thereby explaining why the companies you serve are profitable.

I give you an example. Companies often sell their personal development training services, claiming that the companies they serve experience high profitability. But when profitability is low, companies rarely allocate budget to personal development training. It is when companies are profitable that HR departments get funding they can utilize for the personal development of their employees. So, you are not causing the profitability. Profitable companies choose your services.

Even in this case, the solution is to show improvement in profitability. Companies double their profits after using our services. Now, this indicator is still not immune to limitations, but at least it helps create a better link between company success and your services.

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