Golden Circle: A different approach for a unique value proposition

Written by Claudia Roca

golden circle

Blog » Golden Circle: A different approach for a unique value proposition

One of the most challenging aspects of any business venture is selling a product or service. 

In schools and universities they don’t teach you how to sell and most people tend to have preconceptions about the concept. This is where the golden circle theory comes in.

Simon Sinek is an English author and motivational speaker who realized the bottlenecks that many entrepreneurs have. He realized that entrepreneurs are aware of the product they have and how good it is, but they don’t know why.

Do you want to increase your sales without long sales pitches, do you want to connect better with your audience? If so, the golden circle is for you and we will explain it below:

Table of Content

What is the golden circle?

The golden circle is a theory that has caught on very well in the business world. It is about explaining to a third party, either a partner or an audience, the story behind the product you are trying to sell.

It was developed by Simon Sinek, an author who realized all the problems that organizations have when it comes to selling something. The Englishman says that questions are fundamental, the most common being “How? What? Who?” when selling something.

From his point of view, you are not asking yourself the right question. For him, the key question is: “Why?” In that sense, many organizations and entrepreneurs like you know what they do and know what their products do, but they don’t know why they do it.

Simon presents a new sales approach that provides better results: Why should this consumer buy my product, why does he/she have this pain, why is my product different from others?

This is how the golden circle seeks to differentiate your value proposition by adding a story that connects with the customer’s subconscious. When you put it into practice you will notice the results.

What is the golden circle approach?

The golden circle has this name because the scheme comes precisely from a circle. Its author divides it into three parts, the largest being the “what”, the middle one the “how” and finally and smallest the “why”.

Let’s look at each in more detail:

1. What:

Here the job is to explain what the product does and what its function is. Thus, it does not involve any emotion and goes straight to the rational part of the consumer’s brain. 

At this point, it’s a good idea to highlight the functionality of the product to stand out from the competition.

2. How:

Secondly, you have the how. The idea is to explain how the third party will achieve their goals with that product or project. 

It’s usually applied in business plans, strategies and much more. Like in the previous point it usually involves the rational part of the brain.

3. Why:

This is where the difference is made, so pay close attention. In a nutshell, it explains the company’s motivation for developing the product or service in question, therefore, it bases its speech on the organization’s reason for developing its corporate purpose.

This slight change represents an abysmal transformation that makes it possible to stand out from the competition by appealing to emotions and the desire to make a change in society. 

This explains why brands such as Apple, Real Madrid, Samsung and many others remain in the minds of their consumers and these are able to get up early to buy their products.

Golden circle

What is the goal of the golden circle?

Simon Sinek has a very specific goal with his golden circle: to create value in the product, service or project in question in order to captivate the audience. As a result, you will not only get a new consumer, but something much more powerful.

Brands today are not looking for customers, they are looking for fans. Fans give their all for a theory and we can see it in fields such as religion, sports, politics and much more.

Why? Because they are committed to something beyond the product. They believe in the values and narratives they promote, which causes them to follow them no matter the context and obstacles they face. 

Have you seen how there are fans who travel thousands of kilometers to watch their team without knowing if they will win, have you checked the lines of people waiting in line to buy a new Iphone, what about politicians and their fans?

All this is the product of a well-applied golden circle strategy, focusing on the why of the speech and how to convey something that goes beyond the service or product in question. 

This is the best way to obtain loyal consumers in the long term, being a very profitable business for the owners.

How can I apply the golden circle to my business?

The truth is that the golden circle can be used by both companies and individuals who want to stand out from the rest. However, it is true that brands are the ones that benefit the most from this concept.

How can you apply it? The author points out that your priority should be to convey the essence of the business so that people understand why you do it and not what you do. There must be an emotional connection that binds them together in the long run, and this can only be achieved with the golden circle.

Therefore, if you keep this in mind you will be able to create marketing campaigns that send a more concrete message to the audience. There you will seek to highlight the company’s motivations for existing and the reasons that led them to make such a specific product or service.

Believe us that with this approach you will get out of the mass that seeks to sell its product at any cost and you will increase something that is indispensable for business: loyalty and repeat customers.

This indicator will help you to have a solid and scalable business without having to look for new consumers as a survival tactic.

So now you know, do you want to stand out from the competition? Do you want to be memorable? The golden circle has the answers to this questions, so it’s time to apply it before it’s too late! 

Remember to leave us your opinion in the comments below.

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