Category Archives: Customer Acquisition

Don’t Just Sell to the CEO!

Originally posted as a Twitter thread on January 13, 2018


There are a broad range of products/services that you CANNOT sell to the CEO or senior exec of a company — too irrelevant to them. You either need to figure out how to position your service against EXISTING top priority to CEO, or you are better off selling “lower” in org

But sell too low, and at a company where the principal-agent problem is at its peak (employees are agents, corporation is the principal), and “saving the company money” or “making the company money” are totally irrelevant.

So for most products and services, you need to find somebody in the “middle” and figure out how to make the agent, not just the ethereal principal, win.

Some of the most valuable companies operate in the “zone of irrelevance” because there is no impetus to switch them out (think: payroll, janitorial services, etc) and costs are not SO high, so not as much margin/competitive pressure

In many cases you need to wait for a fundamental shift to challenge one of these companies, or get very, very creative (and very determined) selling into “the middle.” But it’s ironically much stickier to be in the “zone of irrelevance, yet necessary” for clients

Push v Pull

What makes email, Facebook, and Google so valuable? Answer: Visiting them is largely unprompted, notwithstanding the synapses that fire in your brain that make you check your email, your Facebook feed, or decide to research something on Google. In other words, people pull content themselves, rather than having that content be pushed — or foisted — upon them.

The best way of looking at consumer web applications is as a complex stack of “pulls” and “pushes.” Lest these terms be confused with an earlier generation of push: a “pull” is an unsolicited action by a consumer, whereas a “push” is a solicitation by a seller/producer.  The consumer ultimately “pulls” from a mobile phone or computer. Everything else is “pushed” to the consumer, through ads, e-mails or other marketing efforts from companies eager to get business and traffic.

The greatest trick that Facebook ever “pulled” was transforming itself from a push platform (dependent on email to woo users back) into a de facto pull platform.  Facebook touts that 50%+ of its users log-in every day, and my guess is that the vast majority do so with no prompting. Push is still valuable but simply complements the massive pull that Facebook has developed.

Why is Pull so essential for a web company? The intersecting forces of human psychology and economics.

First, psychology: consider how most people hate being “sold” to. “Being sold to” is a form of push. Consumers get hundreds of unsolicited offers and emails pushed to them every week. They learn to tune these solicitations out, especially if they are not in a buying mindset. Relevance is a function of offer-consumer fit paramaterized by time.

Second, economics: A pull platform doesn’t need to spend any money to reach or acquire customers; a push platform does. Facebook’s marketing spend per user has to be the lowest of any company known to man. Granted, Facebook is intrinsically viral and laden with network effects, but the unprompted pull phenomenon has been crucial to Facebook’s dominance.

The value of pull is not just for consumer companies. Any Business-to-Business company knows the value of “demand generation”: catalyzing a “pull” by customers. The quickest and cheapest sales cycles start with a pull by the prospective customer.

For any web company, fostering Pull is essential to creating value and engagement.  There is no shortage of great applications and amazing technologies which stagnate due to a lack of pull.  But the greatest economic achievement of being a “pull” platform is in becoming the mechanism by which “push” companies must engage with audiences, paying handsomely to do so. This expectation is why a company like Twitter can be valued in the billions with minimal revenue.

Here are some ways of thinking about fostering pull:

Plan Around Events

Groupon Now is Groupon’s attempt to add Pull to its traditionally Push service. I want to eat, where do I go? Groupon. Every human desire has a natural pull tendency. Being the “first responder” to a human desire is incredibly valuable.

Find Offline Analogies

Most forms of pull fit a predefined social pattern, per the comment on “human desire” above. Before Google, people used phone books (unprompted) to find services. Before email, people would check their postal mailbox, generally at a given time (after the mail was delivered).

Answer Recurring Questions

There are certain types of content that consumers will invariably pull (or want pushed to them). These types of content generally answer recurring questions of a consumer. How much did I spend Receipts, bank websites)?  Where am I going (Google Maps)?  How do I get there (Kayak)? What’s wrong with me (webMD)?

Build Brand and Familiarity

Once one of the above is satisfied, brand and credential storage foster pull. A frictionless and “known” experience catalyze pull for transactional activities. While Amazon, as the largest spender on Google, does a fair amount of push, they also benefit from a tremendous amount of pull when consumers decide to shop. This is a combination of the brand but also their accumulation of user/payment credentials.

There is no substitute for pull in establishing success for a web company; the key is producing something sufficiently valuable in repeat interactions. Reid Hoffman has notedthat “social networks do best when they tap into one of the seven deadly sins.” It’s no coincidence that people have, unprompted, “pulled” those sins since the dawn of humanity.