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Hey friends,
We’re back with another installment of our Marketplace series of newsletters.
Series theme: Navigating the smart building technology marketplace
This week’s topic: When “category” comes first
In the smart buildings technology marketplace, there’s a type of buyer I call “Category First” buyers. They start the buying process by assessing a category of technology vendor. And only after validating that the category moves the needle do they engage the marketplace.
Does this category solve the problems in my facilities? Is the juice worth the squeeze? Can we realistically be successful with this? Will my operations staff use this? These are the questions that Category First buyers are asking in our interviews. Until they answer those, they aren’t even talking seriously to vendors.
As an example, there’s a large office portfolio in the United States that has validated the need for one category: energy management software. They’ve piloted many vendors and selected their preferred vendor to roll out more broadly. But that’s where their smart buildings program has ground to a halt. They don’t see how any other categories can “move the needle”. Despite the need to improve operations and decarbonize, they aren’t currently talking to technology vendors in any serious capacity.
What does this mean for Category First buyers? Well, this style of buying will lead to better competition between vendors, making it more likely to select the best in the category. But on the other hand, it also means lots of due diligence work.
What does this mean for the marketplace as a whole? Well, the more work this requires, the slower technology adoption goes. As we discussed in the last edition, these buyers have primary responsibilities that don’t include buying smart building technology. They can be a bottleneck if they’re too busy, confused, or lack understanding.
What does this mean for vendors? Well, if you’re going to win projects with Category First buyers, you need to work together with other vendors in your category to validate the category (terminology, features, users, best practices, value, ROI, etc) before worrying about standing out in it. Your competition is not other vendors—it’s the status quo.
This is why we’re so excited to be at the, ahem, Nexus of the marketplace. We’re helping buyers with category validation and due diligence. We’re helping the best vendors tell their stories better, validate their category, and stand out in it. As a result, we can accelerate the marketplace. The flywheel is just starting to spin.
Are you a buyer engaging the marketplace? A vendor trying to reach buyers?
How’s it going for you? Does this resonate?
Until next week,
—James Dice, Founder and CEO, Nexus Labs
Hey friends,
We’re back with another installment of our Marketplace series of newsletters.
Series theme: Navigating the smart building technology marketplace
This week’s topic: When “category” comes first
In the smart buildings technology marketplace, there’s a type of buyer I call “Category First” buyers. They start the buying process by assessing a category of technology vendor. And only after validating that the category moves the needle do they engage the marketplace.
Does this category solve the problems in my facilities? Is the juice worth the squeeze? Can we realistically be successful with this? Will my operations staff use this? These are the questions that Category First buyers are asking in our interviews. Until they answer those, they aren’t even talking seriously to vendors.
As an example, there’s a large office portfolio in the United States that has validated the need for one category: energy management software. They’ve piloted many vendors and selected their preferred vendor to roll out more broadly. But that’s where their smart buildings program has ground to a halt. They don’t see how any other categories can “move the needle”. Despite the need to improve operations and decarbonize, they aren’t currently talking to technology vendors in any serious capacity.
What does this mean for Category First buyers? Well, this style of buying will lead to better competition between vendors, making it more likely to select the best in the category. But on the other hand, it also means lots of due diligence work.
What does this mean for the marketplace as a whole? Well, the more work this requires, the slower technology adoption goes. As we discussed in the last edition, these buyers have primary responsibilities that don’t include buying smart building technology. They can be a bottleneck if they’re too busy, confused, or lack understanding.
What does this mean for vendors? Well, if you’re going to win projects with Category First buyers, you need to work together with other vendors in your category to validate the category (terminology, features, users, best practices, value, ROI, etc) before worrying about standing out in it. Your competition is not other vendors—it’s the status quo.
This is why we’re so excited to be at the, ahem, Nexus of the marketplace. We’re helping buyers with category validation and due diligence. We’re helping the best vendors tell their stories better, validate their category, and stand out in it. As a result, we can accelerate the marketplace. The flywheel is just starting to spin.
Are you a buyer engaging the marketplace? A vendor trying to reach buyers?
How’s it going for you? Does this resonate?
Until next week,
—James Dice, Founder and CEO, Nexus Labs
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