In a world filled with opportunities, the fear of missing out (FOMO) has firmly entrenched itself in the realm of business strategy. Concerns about potentially missing out on opportunities may sometimes influence decisions that marketing and sales make. And the results are rarely to their advantage. So how exactly does FOMO work in a business setting, and what are the consequences?
In an interview with Erik Annerberg, a seasoned ABM advisor at InZynk, he shares his insights on this topic and sheds light on a phenomenon that often goes unnoticed, yet profoundly impacts strategic direction and business success.
How did this topic come about?
– The concept of FOMO has been brought to my attention, time and time again, after being in numerous dialogues with different companies who struggle to pick out a selected number of accounts to target, as a part of their ABM marketing strategy. They simply had to go broad—direct orders from top management. To me, this is a red flag; not knowing who your best and most important customers are. Instead, they typically feel the need to go for as many targets as possible, in fear of missing out. The literal antithesis of working account based.
Based on your observations and experiences, who are these companies that are inclined to pursue this broader approach rather than focusing on a more targeted one?
– A lot of companies, large and small, seem to opt for a wider marketing approach. This makes me think they’re overconfident in thinking that everyone wants what they’re selling. So, they focus on being visible on platforms like Google, hoping customers will just flock to them. But this skips the step of really understanding the market.
Other than FOMO, are there other reasons why companies choose to cast a wide net instead of focusing on a limited set of target accounts?
– I believe it’s also a sentiment that’s rooted in traditional approaches to customer acquisition. Many companies haven’t fully embraced newer perspectives on marketing and sales and perceive marketing exclusively as a tool for acquiring new customers, rather than nurturing relationships with existing ones.
So, what are the potential consequences?
– It makes it next to impossible to stick to a plan. This lack of focus not only undermines your ability to execute a cohesive strategy but also clouds your understanding of your customer base. Without a clear sense of which customers offer the most growth potential or are the most profitable, companies end up spreading themselves too thin, chasing after every opportunity. Ultimately the opposite effect is what you get—it hampers growth, profitability, and overall effectiveness. This type of presence also requires a hefty marketing budget and reliable measurement tools to track its impact.
Additionally, you risk being perceived as somewhat flaky—a company trying to please everyone ends up helping no one. Without a clear sense of your own strengths, weaknesses, and target audience, you risk becoming lost in the noise of the market. In contrast, specialisation allows you to focus on what you do best and become known for it.
And lastly, while companies might think that having a wide presence boosts their success rates, the truth is often different. Just being part of many conversations doesn’t guarantee success. They’re only touching the surface, and competitors who truly understand their customers are the ones who end up sealing the deals.
What's the fix for business-related FOMO?
– Focusing on the companies and deals you know will bring in both turnover and results comes a long way. It lets you really focus on what each customer needs, showing them exactly how you can help in a way that hits home. Sure, it might sometimes mean putting in some extra effort, but the payoff is definitely worth it. Not only do you increase your chances of winning more deals, but you also gain a lot of insights. Insights that will be invaluable for future, similar deals and helps you figure out exactly when and where to invest your time and resources for the best results.
What would be a simple entry point to approach this more targeted approach?
– Start by grading your customers. Identify your largest or most profitable customers and businesses over the past two years. Is there more potential to tap into with these customers? Are there similar companies you could target? You won’t have thousands of top-tier customers, nor will you find many companies identical to them. However, among these select few, there’s likely untapped potential. If you’re looking to expand your business, focusing on these existing relationships is a great place to start. You already have insights from previous dealings with these customers, and the support from the salespeople who were involved in those deals. Utilize existing sales materials and insights, or consider reaching out directly to your current customers to understand what drove their purchasing decisions.
As you navigate strategies to overcome FOMO and adopt a more targeted approach, there’s lots of options to explore, and plenty of solutions out there. In our upcoming article, we’ll delve further into effective ways of working, providing practical guidance for success. Make sure to also explore how innovative solutions, like those embraced by InZynk, can empower your journey towards targeted growth.
