As Imagined by Schumpeter…
It’s easy for tech startups to forget what really matters in driving growth: communicating a compelling narrative your customers will derive from your solution. Utility, satisfaction and value are associated with the economics of buyer behaviour and decision-making. These concepts were developed by three economists: Adam Smith, Jeremy Bentham and Alfred Marshall. Although Joseph Schumpeter might not have been linked to the three or written marketing manuals, his economic theories offer plenty of wisdom for tech marketers and founders trying to crack the code of their audience. His views on innovation and entrepreneurship can be applied directly to a tech startup’s brand messaging within the context of utility, satisfaction and value.
The Messaging Triangle
Utility: Function Over Fanfare
Utility refers to a product being fit for purpose, and the emotional connection, or pleasure, a buyer gets from matching their need with a well-judged purchase. Schumpeter once noted that innovation “incessantly revolutionises the economic structure from within, incessantly destroying the old one, incessantly creating a new one.” While he was referring to the economy, B2B tech startups can learn from this statement when considering utility in their marketing strategy. Customers want tools that make their lives easier, even if that means disrupting the status quo.
The biggest mistake many startups make is overselling flashy features and underdelivering on what truly matters. Marketers must always remember to focus on the key problem(s) the solution solves for a customer. When crafting messaging, instead of chasing the next buzzword, focus on the core utility of your solution. For example, if your software streamlines project management, make sure your message is clear about how it saves time and reduces headaches. Let’s be honest, nobody cares if your cloud solution “leverages blockchain AI” unless it delivers a faster, more secure service at a competitive price.
Satisfaction: It’s All About the People
If utility and value are the steak and potatoes of B2B tech marketing, satisfaction is the warm dessert that keeps customers coming back. This is the fulfilment of a customer need and is the aggregated outcome of every human touch point with your company and product. As much as we’d love to have Schumpeter weigh in on this, he was more of a creative destruction kind of guy. Yet even he would agree that the customer experience plays a pivotal role in success. Marketers often overlook satisfaction because, let’s be honest, it’s the least sexy of the three. But satisfaction isn’t about relentless customer surveys or endless feedback loops, though they do help. This is about tapping into the personal motivations of the people on the buying team and making sure they are all catered to appropriately. Every touchpoint in your customer journey must feel seamless and pleasant, from first contact to renewal or upgrade.
For example, imagine you’ve built the perfect software that delivers on utility and value, but when a customer has an issue and contacts support, they’re met with endless wait times and generic replies. Guess what? Satisfaction just tanked in exchange for frustration. If your marketing team doesn’t consider this when messaging and building brand stories, even the best product will leave a bitter aftertaste. Satisfaction is all about understanding the customer and being easy to do business with. It is the difference that makes a customer happy to be associated with your company. When you achieve satisfaction, customers are more than just users of your solution; they will be advocates of your company and will refer you to other businesses.
Value: More Than Just Price
Value is how much a customer is willing to pay based on the utility they expect to receive. When Schumpeter analysed entrepreneurship, he emphasised the role of value creation through innovation. While innovation is key, value isn’t limited to the newest, shiniest technology. For B2B tech marketers, value is what your product offers in return for the investment, and that value needs to be clearly communicated.
Imagine you’re selling a CRM platform. Sure, it’s got all the bells and whistles, but the prospect needs to understand what they will be able to do tomorrow that they couldn’t do yesterday and how your product gets them closer to their business goals faster than your competition. If your pricing is more complicated than an IKEA instruction manual, you’ve lost the plot. Customers must be able to immediately grasp what they’re getting and why it’s worth every penny. Explain how your product or service offers long-term cost savings, efficiency improvements, risk reduction or even intangible benefits like peace of mind. Here’s where Schumpeter’s entrepreneurial vision comes in. He believed that value isn’t stagnant; it evolves. As a marketer, you must continually reassess your value proposition to ensure it stays relevant.
How to Integrate Utility, Satisfaction and Value into Your Marketing
So how do you integrate these three into your marketing strategy? First start with storytelling. As Schumpeter might say if he were forced to moonlight as a tech marketer, “Every product is part of an evolving story, and it’s your job to make customers feel like the hero.” Many mistakenly believe there is no emotional connection regarding tech solutions purchased by organisations, they’re probably the ones that have never had to sell anything.
1. Build Stories Around Utility
Create case studies that demonstrate real-world applications of your solution. Show how your product made a significant difference in a company’s operation, referencing quantifiable as well as anecdotal improvements. Keep it straightforward; there is no need to confuse potential customers with technical jargon. They need to understand how they can also benefit from your product’s utility. For example, instead of bragging about your innovative algorithm, focus on how it saved a client 30 hours a week in data processing.
2. Make Satisfaction a Core Message
Your happiest customers must be front and centre in your marketing strategy. Nothing builds trust faster than hearing directly from those who have found satisfaction using your product. Whether through testimonials, reviews or user-generated content, ensure you’re showcasing genuine customer satisfaction. This does not mean plastering your website with generic five-star reviews. Go deeper and get personal stories of how your product impacted a business. Make it about real satisfaction, not vanity metrics.
3. Communicate Value Honestly and Transparently
Customers appreciate transparency, especially when it comes to cost. Schumpeter’s entrepreneurs were disruptive, but they also had to prove their value. Similarly, B2B tech marketers need to emphasise value in clear, relatable terms. Avoid the trap of trying to be the cheapest option, because value is about what you offer, not how little it costs. A more effective tactic is to illustrate the long-term value of your product or service, highlighting ROI and customer success stories.
Schumpeter’s Value Destroyer
Schumpeter saw innovation as having the potential to be both a creator of new value and a destroyer of the status quo, which tech startups do well. If you focus solely on innovation and neglect utility, satisfaction and value, you may struggle to build the attention your tech solution deserves. Keep your brand messaging clear, rooted in utility, backed by satisfaction and focused on customer value. And for the love of Schumpeter, stay humble. Tech founders driving a Tesla in their branded hoodies may think they’re cool, but business customers couldn’t care less and prefer companies that talk their language and deliver. B2B marketers who create brand stories that embrace utility, satisfaction and value will make a difference by truly connecting with their customers.
You may want to read: “Why B2B Tech Startups Must Invest in Marketing.”
