Pitching Investors VS Pitching Customers: What's the difference?

Any B2B startup should have two pitches in its arsenal: One for investors and one for customers.

But what is the difference between the two?

Although the ultimate goal of a pitch is to get the audience to take action, customers and investors have completely different desires, and if we want to get the "yes" from them, we can't persuade them with the same one.

Understanding the differences between these two ways of doing business will help you get more potential out of your startup. On the one hand, by obtaining clients, you generate greater brand awareness for your venture; on the other, having the help of an investor will give you the necessary power to expand your business to new levels.

If you want to learn how to handle both types of speech, stay reading this article, where we will explain them in detail, give you strategies to address them, and once and for all, you will know the difference between them.

Are you ready to read our pitch? So, let's go straight to the topic!

The Customer Pitch.

While we put "Investors" first on our main title, we want to explain pitching to customers first, as we think once you understand the basis of this, you'll understand the differences better.

In essence, pitching to customers, it's the straightforward marketing process where they need a solution for a problem - that they are aware of or could be missing - and you bring a unique and valuable solution for it. 

Let's take a SaaS business as an example. We're trying to sell CRM software to companies. How should we pitch them?

We can get a template following the storytelling process to create a compelling one that engages them during the sales pitch and then make them take the next through their customer journey.

So how do we create this pitch?

Start with Storytelling, and mix it with "The Problem."

This is like the epilogue or first chapter of your pitch. In this first step, the main goal is to catch their attention so they want to keep listening during the presentation. The first seconds or sentences must be interesting enough so people want to turn their heads to your unique solution.

So, suppose we're selling Customer Relationship Management software. We can first talk about the problem: how to manage your overall marketing interactions with customers in a unique and comfortable platform.

When you start connecting with your audience's problem, you get the first glimpse of attention, as they feel you understand them as a brand. 

Now, it's time to explain why you created this startup and what inspires you to help them.

Your experience as a unique brand and person may differ from others, making it unique for customers. That makes you stand out from competitors, as there could be many CRM software developers, but your experience differs from theirs.

You're ready for the next step once you connect with their feelings and emotions.

The Solution.

In this part, you can already offer your SaaS service as the solution to all these problems and give more detail about your features and benefits for your audience.

When we sell services to direct clients, we can express ourselves more within the Jargon or dialect of our niche since these clients seek a solution to Customer Relationship Management.

In this way, you can express yourself more professionally when offering your services since this will make your customers feel you know what you are talking about. Bottom line: It gives you authority.

Take care of showing your solution dynamically. Although we associate a pitch with an oral presentation before an audience, this customer pitching can be throughout your entire digital customer journey; it's important to segment it well for each stage. For that, you can use images or videos that are much more effective in capturing your audience's attention during their interactions with your brand.

Your solution must be clear and make your entire audience think: Wow, how did we not think of hiring them before?

If you want to create compelling storytelling for your startup, please read this article.

With customers excited, it's now time for the final step in your customer's pitch.

Your Unique Selling Proposition (USP)

In this part, you must exalt that unique characteristic that your startup has over the competition.

What makes this CRM software different from the others?

• Price
• Easy to handle
• Features
• Omnichannel

Before launching a product within any niche, we should remember that this proposition gives us a plus over others. What is that approach that you are doing that others are not? Why so?

If you have managed to wow your audience with the above points, and they are already excited enough for this part of the pitch, your USP will be the final hook for them to decide to choose you over your competitors. From this point, you just need to set up the next steps within their customers' journey to convert and get new customers finally.

Thus, we can see that pitching to customers follows the traditional bases of a standard marketing strategy, but now, how do we sell our startup to an investor?

The Investors Pitch.

Now that we have the pitching customers model, it becomes easier for us to show you why investors are different and why offering the same speech would be a colossal mistake. In a few words, and to make it as straightforward as possible: Investors aren't your target audience.

Investors don't necessarily need your "solution" for their problems. They want to invest in a business that screams "money" for them. When you pitch your startup to these investors, they are decision-makers and financial executives who listen to a bunch of startups offering their storytelling and problem-solution pitch, but this isn't so remarkable for them when pitching. They need other information that makes them engage with your angles.

With investors, you may have only one option to pitch. Thus, it would be best if you had a self-contained presentation that doesn't need any explanation. Adding to this, it's also important to know that this speech could be digital too, as you will only sometimes have the opportunity to speak in front of investors, so you could send an email to get their attention. Because of this digital factor, you should make your pitches as understandable as possible and forget about any jargon, as this could confuse investors if they don't know too much about your business area.

In essence, when pitching to an investor, you should answer a unique question, and that is:

• Why should they invest in your startup?

Taking this question as a base, you could have something built up for your investor's pitching, but we want to give you some other key points you should focus on when pitching to this audience.

Things investors want to see in your Pitch.

Investors tend to check out a bunch of selected startups during the day. So, in the beginning, investors want you to explain your business and what it solves clearly. But then, most importantly, they want to know more about your talent, capabilities, technology and if your target market is rentable for their investment. It is a win-win transaction with investors, so you have to say the correct information about your startup so they see it as a winning option.

For your investor's pitch, try to focus on this.

Your team's capabilities.

What skills does your team have?

Are they committed to your business goals?

Are they able to adapt quickly, make improvements and grow?

Knowing that your team is qualified for their investment is essential for any investor. If we take once again the SaaS service as an example, we have to understand that this is an ever-changing business, where technology keeps changing the way these companies work to be more efficient. In this case, you have to show how prepared your team is and how determined you're to make them improve with a viable plan.

Show a product demo (if possible)

Maybe the fastest way to show your software or product without being too salesy or generic is by offering a live demo of what it does.

In this case, it's a straightforward presentation where investors see the product and its quality in real-time, and if your demo is engaging enough, you'll start getting more of their attention toward your pitch.

Now, we put "if possible" on the subtitle, as we know that sometimes you may have just a prototype or an idea for your startup. Whatever the case, it's always good to give a glimpse of what your product does so that they can see your quality and value. 

Your market opportunities and potential buyers.

This is the part where investors will pay close attention to your pitch. 

In this part, you have to answer:

• Who will use your product?
• How much will they pay? ( A real important answer)

The payment part can be significant, too, as it can show them how profitable your business is or even the lifetime value of your customers. For example, some software services offer a subscription-based model that lets this company and their investors earn the money they want.

For this part, it's good to focus on two things:

• Finances: Talk about your financial projections and what your revenue model will be. Focus on growth goals and customer acquisition.
• Marketing and sales: If you sell a product, show how much it costs and how you can save money as you scale production. Then, for marketing, make sure how you'll make to create awareness around your startup. This is an essential part as marketing is crucial for reaching new customers. If you want more help with your startup, 
  contact us.

It's also important to mention your competitors within your niche, so investors can get more information about what they would be dealing with once they're in, and even more, evaluate more precisely if your startup has the full potential to overcome these competitors.

To differentiate yourself from competitors, you can return to your customer's pitch and reinforce those unique selling propositions that make investors know what makes your startup the right choice.

The future of your business.

Is your business rentable in the long term? 

Do you have any plans to expand your services or upgrade them?

When talking to investors, you have to have these things clear, as they want to know if your business's lifetime value is sustainable. They would also like to see your thirst for growth and long-term innovations for the future, as it makes them feel that you, as a business owner, have a clear view of where you want to go.

The Big Question (How much money do you need?)

This may be a low hit for investors, but it's a question that must be asked. When framing this one, focus on how much money you want. How long will you need financing? How will you allocate the funding? In case you already have investors, mention them.

Choosing your investors wisely.

Now, we said that investors are different from your target audience. Nevertheless, finding one with experience within your industry can be an excellent advantage for your business. You have to know that this person could learn even more about you about your business niche, so it's important to be extra prepared for them.

Source: YouTube.

Pitching Investors VS Pitching Customers: The Difference.

Now that we have arrived at this part of the article, we understand why we should have two pitches for customers and investors. 

In essence, when we go after customers, we know that they're our target audience, and so we study and know their needs and pain points. Persuading them to choose us is more of an emotional and psychological strategy, where we make them feel understood first by letting them know we understand their problems because we might have lived it; then, we offer them a suitable and easy-to-use solution for that problem so that they can see the light at the end of the tunnel in our services. Finally, as they may have heard the same pitch from our competitors, we show why we are different from others by showing that essence, that unique feature we have that no other company could offer.

Investors focus on it's also an emotional strategy, but one that is backed up with facts, statistics and other proof that will make them feel you're the proper startup for them to choose. They could be your audience or not. Whatever the case, you only need to show that your business is both rentable and successful, so they will be willing to spend money on it.

Showing some differences, we can say that:

Pitching Investors	Pitching Customers
This pitch is more for a selected audience of a small group of investors interested in your startup.	It's meant for a wider audience.
You want to ensure that your business is profitable for investors and that they'll earn more money with you.	You want to attract customers and persuade them that you're the best option among competitors.
You must show why your company is amazing and leave storytelling on a second base.	You attract them with good storytelling.
An investor pitch must be specific on every detail. If investors notice something missing, it could be bad for you.	Customers don't care too much about facts and statistics. They want a good and convincing story and a good service experience.

Final thoughts.

If you're a new business founder or have had some time growing your startup, building an excellent presentation for your customer and investment pitch is crucial to take your business to the right people.

To make it more manageable is crucial to understand every audience within your business, including your target audience and investors.

As marketers, we're used to dealing with a wide range of audiences, from small businesses to Series A founders of any type who want to keep reaching professional goals. We do all this with the help of a group of professionals on every digital marketing team and the right technology tools to study all our clients' characteristics. If you want more help with your startup, contact us on Codedesign, as we'll give a personalized treatment for your business.

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