What’s a Pain Point? A Guide for Startups

What’s the pain point? That’s a question we end up asking all the time during the first month of mentoring at StartupYard. And this round is no exception.

Every year, we begin the first month of the StartupYard program working on Product Positioning and buy personas. An essential element of this is “the problem” that the startup is solving. That problem can be surprisingly tricky to identify.

Here, I’ll talk about identifying problems, or “pain points,” and how to think more deeply about them.

What is a Pain Point?

At the root, a pain point is something that a customer is aware of (if you’re lucky), and which bothers them. It’s a problem waiting for a solution. “I can’t do X,” or “X is stopping me from doing Y.” Pain is something you react to- it’s something you try to stop happening.

Pain points can be big or small. If the customer base is big enough, and the technology simple enough to use, the pain point can be very simple. If the customer base is smaller, and the pain point much bigger, the technology to solve it can be more complex.

Anything from: “It takes too long to order a pizza,” to “I can’t accurately predict machinery failures in airplane engines.” StartupYard has accelerated startups working on both those pain points. One is a simple problem everyone has, and one is a complex problem only a few people have.

Addressing the Real Pain

One of the most common issues with startups’ early attempts at positioning, is making the “problem” too self-serving. For example, if you’re making compression software, then the problem would be: “people don’t have good compression software.”

But that ignores the fact that people already use other solutions, and getting them to switch would involve solving a still deeper problem. What about their current solution is bothersome enough to change? The first round of positioning often breaks down to: “this product is for people who don’t have this product.” True, no doubt, but also not very compelling.

Pain points can be tricky to identify, because they don’t always reflect exactly what the startup thinks of itself as doing. The above example is useful: a company that is working on compression may see themselves as “providing compression software.” But the customer may not be looking for compression software. The problem isn’t “I need compression software,” but rather, “I need to send files faster,” or “I need a better storage system.”

pain point, startups

One of the exercises I do with startups is to ask them to imagine positioning for basic tools everyone is familiar with. What is the positioning for a drill? It becomes obvious that “this drill is for people who need drills,” is not complete enough. In fact it misses the point entirely. “This drill is for people who need to make holes,” is better. Better still might be: “this is for people who can’t make many holes quickly and easily.”

This process forces the startup to stop thinking in their terms, and start thinking in end-user terms. Founders think about market opportunity, about technology, and about finding efficiencies– as well they should. Still, the question of what pain point they address must be raised. “I can’t technology,” is not a pain point. Nobody sits down and googles: “how to find efficiencies.”

Ok, maybe they do, but it probably doesn’t lead to a lot of sales. A startup can do a lot of cool and far out things with technology, but if it doesn’t solve a clear pain point -the instantly identifiable reason why the customer needs the product- then it won’t get very far.

Cost is Not Everything

A favorite mentor at StartupYard, Ondrej Krajicek, says that he wants to hear one of two things from every startup he meets: “can you save me time?” or “Can you save me money?” In a word, this is “cost.” Every second of every day costs you something, either in time, or in money.

Initially, it’s typical for a startup to begin with the assumption that the pain point is cost of some kind. Every company, and every consumer, wants to save cost. But there’s something incomplete about this as a starting point.

There are many, many ways to save time and money. The very specific reasons why a company or a person would want to save time on one particular activity, or save money on one particular cost are very important. Nobody sets out at the beginning of the day to “save time and money,” even though that imperative may drive many of their individual decisions.

The customer always has other goals in mind. And higher costs can be justified if they help meet some of those goals. If there’s a thing most customers, consumer or corporate, hate just as much as high costs, it’s missed opportunities. A tech startup can focus on either cost or opportunity, or both.

Cost is always material to new technologies. Either the pain they solve is great enough to justify spending more, or the customer is willing to endure a particular pain, because the solution is not yet worth the cost. But here lies an important point: costs do not always have to go down. Particularly with new technologies that create new value and opportunities, the attraction may be great enough to justify higher costs, either in time or money.

Everybody Hurts

pain point, startups, StartupYard

Identifying pain points is not just about semantics- it’s not just rephrasing the problem to make it sound like something a customer cares about. The customer has to actually care, and you have to show them empathy. And pain points are unique to each customer- you have to find ways of helping customers to see how a product solves their own pain points, and not just the broad ones you claim to fix.

And there’s only really one way of doing that- it’s shutting up and listening to the customer. As the folks over at Gong have shown with real data, more sales happen when the prospect, and not the salesperson, does the majority of the talking.

This is because a salesperson is limited in that they don’t know what’s most important to a particular customer until the customer identifies that problem themselves. This can only be encouraged by asking questions that reveal sources of pain for the customer.

Think back on that example about pizza delivery. You could explain to an office manager about how DameJidlo (our alum), or FoodPanda, or Deliveroo works, along with all the many benefits. But that office manager might never have a need for food delivery in the first place. Or they might feel perfectly happy with their go-to delivery options.

It’s only by talking through the customer’s routines, and their current outcomes, that you might reveal pains they aren’t considering. Maybe people complain that the delivery isn’t fast enough. Maybe it’s too expensive. Maybe the variety is lacking, and there have been complaints. Your product, in this case a food ordering and delivery platform, solves many pain points aside from the ones you assume are most important.

We actually practice this kind of selling on a regular basis, even if we don’t realize it. Have you ever explained to a friend or family member about how awesome a new technology really is, only to hear the response: “yeah, well I just prefer what I have right now.” Frustrating! But that’s not because they’re stupid or because they don’t listen. It’s because they haven’t heard anything that speaks to a real, urgent need from their side.

You can practice this kind of thinking by asking the person how they use the current solution they have. You’ll find, as they talk more, that there are indeed things that bother them, and things that could use improvement. Put enough of those together, and the new solution starts to look more attractive.

Shut up and Listen

Everybody Hurts, as the song goes. The question is how, and why. You have to talk to your customers to find out. There is no shortcut.

Try some of these open questions, starting with “how” or “what”:

what are you trying to accomplish?

What’s the core issue here?

How does that affect things?

What’s the biggest challenge you face?

How does this fit into what the objective is?

How does this affect the rest of the team?

What do your colleagues see as their main challenges in this area?

What happens if you do nothing?

What does doing nothing cost you?

You’ll find, most likely, that the customer knows very well what his or her problems and pain points are- although they may not think of them as problems. A problem that doesn’t seem to have a solution isn’t a problem at all- it’s just an aggravation. So showing a customer that a problem exists means getting them to acknowledge pain, and then to understand the solution.

Listen, and most of the time, the customer will tell you.