GHR 022: The 5 Levels of Market Sophisitication

[podcast src=”” width=”100%” height=”90″ scrolling=”no” class=”podcast-class” frameborder=”0″ placement=”top” use_download_link=”use_download_link” download_link_text=”Download Episode” primary_content_url=”” theme=”custom” custom_color=”ed823f” libsyn_item_id=”13093523″ /]It’s not your competition, although that is part of it.

It’s not the return you make in your paid campaigns or the time you put in on “content”.
It’s not the “funnel” or the ads.
It’s this. (especially if you run ads effectively but churn from them)
It’s not knowing your local market’s sophistication level and/or missing it entirely.
If you know your market’s sophistication level you’ll have a much better chance of succeeding in growing and doing it steadily.
By knowing your marketplace’s sophistication level you’ll understand why some claims and promises work while others fall flat.
𝗦𝗼 𝘄𝗵𝗮𝘁 𝗶𝘀 𝗠𝗮𝗿𝗸𝗲𝘁 𝗦𝗼𝗽𝗵𝗶𝘀𝘁𝗶𝗰𝗮𝘁𝗶𝗼𝗻?
I know not everyone has time for video so here is a quick bullet list to summarize and if you want to dive deeper then feel free to watch the video:
𝐋𝐞𝐯𝐞𝐥 𝟏 – Usually reserved for the first mover in a market. You’re a gym and no other gyms exist in the market so your avatar is hardly even problem aware. A claim just needs to be made.
𝐋𝐞𝐯𝐞𝐥 𝟐 – What is it? The avatar is aware that there are multiple servicers for their base problem (getting in shape) but they aren’t sure what the differences in offerings is. The claim needs to be elevated, a bigger promise has to be made, to separate yourself.
𝐋𝐞𝐯𝐞𝐥 𝟑 – This market has heard all the claims and they are knowledgeable on the different promises being made to get them to get fitter. Now it’s about the process and mechanism (type of fitness) and NOT how it’s better, but how it’s DIFFERENT and UNIQUE.
𝐋𝐞𝐯𝐞𝐥 𝟒- At this stage it’s about believability, your competition has caught up. Your competition is bolder, bigger, and more sophisticated and so is your avatar. New and bigger claims are made every day. At this point trust is the issue, and if your business is faceless and doesn’t start to speak directly to their results and the journey it begins to lose traction in this market.
𝐋𝐞𝐯𝐞𝐥 𝟓 – At this point the separation occurs through identity. Buyers in this market have heard it all and they’re looking for belonging because that has more value than the core service itself. They know their is several offering and that almost all of them are good.
….The question they are now asking is “which one fits ME”. You have to become a master and making feel people like you are speaking directly to them while almost speaking enmass. This is where the pros separate themselves and where the weak get eaten.
This is one of the most important strategies you will ever learn. The best way to learn your marketplace’s sophistication is to research.
So where do you start in this process of identifying your markets sophistication level?
Start with competitive analysis, look at the claims your key competitors are making.
Be careful not to get trapped in the “we are better” mindset while doing this.
Second, analyze your avatar or define it if you have not already. What I’ve noticed is most gyms, even successful ones just have the wrong avatar, they THINK they serve this… when they really should be servicing that.
Third, think different and unique in how you speak to your market.
It’s not about logo’s or branding, though can help depending on what your level of market sophistication is.
For a lot of you this is why things that used to work stopped working. It’s not because the thing itself isn’t grounded in something that works.
….It’s just that your market has evolved and your message has not. This is why fad-driven tactic is short lived and principles are paramount.
Because now you can formulate your own tactic as you see your market shift and stay ahead. That’s the game we are playing.
Hope that helps gang and I hope you guys are crushing it in 2020 so far.

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