Melting the “ICE” Out of Price
September 14, 2009 by admin · Leave a Comment
We’re living in challenging economic times, and that is certainly reflected in consumer spending.
It’s not as if there was some surreptitious tightening of the belts across the country; it’s simply an obstacle that everyone is aware of — especially the small business owner.
Now, I’ve said this before — you shouldn’t be positioning yourself solely on price. If your aim is to be the “Walmart” of your niche, then by all means, slash those prices. For the rest of us, we need to take a good hard look at our sales letters, our sell sheets, and our pitches.
Bottom line: your prospect must want your product MORE than they want their money.
What I’d like to do is share with you a few techniques I have used, and share with my clients. This is by no means a comprehensive list, and simply reading the list over is likely to spark a few more ideas of your own. That’s the point — so let’s get started!
- It’s all in the expression. Years ago my father shared this tip with me, and it has always stuck with me. Let’s say for example that you are selling a widget for $1.00. Sales are steady, but not brisk. If you are interested in moving more volume, you could change the way you sell this item to a “buy two, get one free” offer. We would change the individual price to $1.50. You’ll still make the same amount as you would have by selling the same item at $1.00 each — but you’ll move more product as a result of the “free” item.
- Don’t bench the benefits. Many salespeople get this wrong. Instead of focusing on all of the features of an item, zero in on one thing — what will your product DO for the customer? What problem will it solve? Will it make them better looking, wealthier, smarter, or more popular? Consumers will pay for solutions — but they often need you to help them visualize the end result that your product will offer.
- The Rule of Three. This is a very old selling technique, but it is timeless. Offering a product or product mix at three different price points can be very effective. This accomplishes multiple goals for you. First, for the customer who may not be able to afford the high end product, they may instead select the midline product. For those who are inclined to scrutinize and compare packages, this affords you the opportunity to showcase the additional benefits that the higher end product provides. You may also wish to offer some manner of “upgrade” for those who select the midline or economy end packages — this gives you an opportunity to make additional sales after the initial purchase.
- Size Matters. Do you offer a product or service that is offered on an annual basis? If so, why not consider breaking that price down into an almost laughable price (i.e. $.40/day)? This forces the prospect to reconsider the pricing, and will often be the impetus they need to make the purchase. They can easily justify spending forty cents per day — you can’t even buy a can of soda for that price! To really drive this point home, use this technique in conjunction with an example of how much money your product or service could save them (or make for them) during that same one-year timeframe.
We’re all familiar with the sobering statistics of small business success, even in the best of times. Despite this, history has proven that there are some businesses that not only survive, but thrive in tough economic times.
Their success isn’t by chance — it’s by surveying and adapting to the market, and making the necessary adjustments to service their niche. It’s a smart strategy that is worth adopting as your own.
Otherwise, you may well find yourself left out in the cold.
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When my husband leaves for work in the morning, I am seldom awake, let alone coherent.
So, when he returned to the house this morning just moments after heading out to the car to leave for work, I was startled.
Perhaps that’s an understatement. I was scared witless. Think of the “Lost in Space” robot with arms flailing, shouting, “Danger, danger!” — but with half-slit eyes and bedhead.
Not a pretty picture.
After taking a moment to bring my pulse back to a more normal rhythm, I got the details on what had happened. As it turns out, he had mistakenly left our car unlocked overnight — and subsequently, our satellite radio was stolen.
Crappy way to start out a Monday, no matter who you are.
We phoned the police, who quickly arrived and took a report — not that they can really do anything about it. A few minutes later, John headed out for work, minus the musical diversion of Radio Margaritaville.
Here’s where the story gets interesting.
Once he got to work, John phoned SiriusXM radio to report the theft, and have the service cancelled on the radio. He fully expected to have to purchase another radio — and, while not a huge expense, the notion did add a certain amount of insult to injury.
Much to his surprise, SiriusXM offered to replace the radio, at no charge. While I am not sure if this was because we are long-standing customers, or if this is standard procedure — but either way, we were pleasantly surprised — and relieved.
Knowing this, it should come as no surprise to anyone that both John and I tweeted about our experience this morning — sharing our praises of SiriusXM with all of our followers. We were already loyal customers — having purchased radio service for ourselves, and both sets of parents. I think it’s a safe bet that we will be lifelong customers now.
SiriusXM made a smart marketing decision this morning. Regardless of their actual cost on the replacement radio, they scored big with us. We’re happy, and we are keeping our service. But more importantly, happy customers become customer evangelists — a fact that has been multiplied exponentially by social media.
So here’s the takeaway — it is easy to drop the ball on customer service in the frenzied pace in which we live. But make no mistake, those subtle nuances can make a huge difference to your bottom line. It costs less to keep an existing customer happy than it does to find, qualify, and cultivate a relationship with a new one.
Make a customer happy today, and they will become brand evangelists for you tomorrow. I don’t know about you, but that is music to my ears.
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June 30, 2009 by admin · Leave a Comment
A funny thing happened while I was shopping at the mall over the weekend.
John needed to get a couple pairs of blue jeans, so we headed over to JCPenney. They were having a sale on his favorite brand, so we knew exactly where we were headed. I say this only to explain that we weren’t on a typical Traci “let’s look around” kind of mission. We went in with a plan, and we stuck to it.
In the short time between entering and exiting the store, we were greeted by no less than FIVE sales associates. I’m not talking about your standard, “can I help you find something?” that comes off fake and creepy — I’m talking about a genuine, look-you-in-the-eyes-and-smile greeting. There was something immediately different about the way in which they greeted us, and we immediately noticed.
I worked at JCPenney in high school and college — in fact, it was my very first “real job.” This was back in the day when James Cash Penney (for whom the chain is named) appeared in the training videos. Mind you, that has been MANY moons ago, but even so — I knew that there was something different here.
And it was really nice. In the eternal words of the late Billy Mays, “but wait! There’s more!”
We left the store and headed out into the food court for lunch. We decided to grab a quick sandwich at Chick-Fil-A. While placing our order, a food court attendant brushed past us to place a stack of trays on the counter for the CFA folks. The clerk taking our order apologized profusely for “the intrusion.” We laughed, replying that it would take more than that to offend us, and left the counter moments later with our order, and a slight smile still on our faces.
While we were enjoying our lunch, another Chick-Fil-A employee asked if we’d like for her to refill our beverages. Get out of Dodge! I couldn’t believe we were getting that level of service in a crowded mall food court.
Minutes later, we headed out of the mall, but the discussion as we headed to the car was all about the many examples of great service we’d received during our brief visit.
The Takeaways:
In a tough economy, price is often removed from the equation. The huge discount retailers will often match prices on popular items. If the product is identical from multiple retailers, and you’ve removed the price barrier — what’s left? Service. Focus on providing the customer with a better experience, better service, or a better value, and you’ll win their loyalty.
Create a better buying experience, and leave an impression on the customer. In tough times, customers hold tight to the wallet. If they are going to open the wallet to make a purchase, you want them to feel GOOD about it, not experience buyer’s remorse. In each of the examples I noted, we walked away having noted that it was a positive buying experience. We felt good about making the choice we made.
Yes, times are tough, and they may get worse before they get better. But, consumers will still have needs to fill. If you want to be the retailer they choose to fill those needs, start finding ways to make yourself the obvious choice. Offer value-added services. Offer superior service. Create a better experience.
Do that, and your customer walks away happy, comfortable and evangelizing your business. In the end, you’ll get more mileage out of that than a good pair of blue jeans.
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January 22, 2009 by admin · Leave a Comment
Killer sales copy is often the difference between profit and loss, between success and failure. While there is certainly no shortage of opinions as to what constitutes great copywriting, there are a few structural points that remain universal. When used correctly, they can cast a rhythmic spell over the reader, and entice them to make a purchasing decision.
“I Heard He Sang a Good Song, I Heard He Had a Style…”*
Perhaps a prospect has landed on your page because of an advertisement or offer that they have seen. Some may be referred by a friend or colleague. Regardless of what brought them to you, once they have arrived, you have precious little time to gain their attention. Your choice of headline is crucial to the success of your writing. It must grab the attention of the audience, and draw them in. There are various structures you can use to create a winning headline.
“Strumming My Pain With His Fingers…”*
You are offering a product or service to fill a need; that said, you should focus on capitalizing on the prospect’s need for what you have to offer. Are they losing sales? Missing out on finding their soulmate? Shine a bright spotlight on their problem — whatever that may be — then show them how you can solve it. This structure makes your readers believe they are being given access to information that someone is trying to keep from them.
Make sure your first sentence follows on from your headline and doesn’t disappoint your readers. If your headline promises something, make sure your first sentence supports the idea that you are going to deliver on that promise. Once a headline has captured interest, the supporting sentences must build upon that interest.
“Singing My Life With His Words…”*
To create killer copy, you must be able to visualize your audience. Your copy should read as if you are speaking directly to the prospect. To do this, you must zero in on your target customer. How old is your target audience? Are they male or female? What is their average income level and what is their level of intellect likely to be? Speak to them directly, as if they were sitting across from you. Speak to them, not at them. Telling them stories offers an effective way to convey details in a manner that is far more palatable than a blatant sales pitch.
Your readers will make up their minds whether to carry on looking at your webpage in less than ten seconds — use that ten seconds to convey clearly and concisely why they need what you have to offer, and how they will improve their situation as a result of purchasing.
“And There He Was This Young Boy… a Stranger to My Eyes…”*
Customers purchase from people that they know, like and trust. There are a number of elements you can add to your writing to increase its credibility, including the following:
- Testimonials
- Detailed Case Studies
- A Powerful Guarantee
- Free Bonus Material
No matter how well your copy sells your product, your customers will be more convinced by other people’s opinions, real life examples of how the product will work for them, the possibility of getting their money back if they are not satisfied, and the offer of free material.
The Song That Never Ends
Opinions are divided over whether long or short copy is more effective at increasing sales. Both offer some advantages, and which one you opt for may depend on what you are trying to sell. It may be worth testing both long and short versions to see which produces the greatest amount of conversions.
Long copy gives your customer more information and may reduce any anxiety they feel about buying the product. It might also reduce your customer service obligations by giving them the facts upfront. You can use bold phrases with long copy to allow skim reading if your customers don’t want to read the whole page.
Short copy gets your message across quickly without losing the interest of your reader. It keeps your page neat and sleek, without that feeling that it goes on forever. You can include links with additional information for those that want to read more detail. Shorter copy avoids the perception of an overly repetitive and hyped sales pitch.
The things to bear in mind when writing killer product descriptions are your structure, style, length, and grammar. Make sure you are selling directly to your target audience, and that you include some additional elements that will make your customers feel more comfortable about buying from you. Incorporating these tips into your copy will help you turn more prospects into buyers.
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* “Killing Me Softly with His Song” is a 1971 song composed by Charles Fox and Norman Gimbel. Lori Lieberman was the first to record Fox and Gimbel’s song, in 1971, but it became a bigger hit when covered by Roberta Flack in 1973. Her version won three Grammy Awards: Song of the Year, Record of the Year and Best Pop Vocal Performance by a Female Performer and it was number one on the Billboard Hot 100 for 4 weeks.
In 1975, an instrumental version of “Killing Me Softly” served as the main musical theme of the film The Drowning Pool, starring Paul Newman.
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December 16, 2008 by admin · Leave a Comment
The relationship a business has with its customers is its single biggest asset and should be carefully nurtured.
One important secret to business success may involve asking yourself a pivotal question: If your company’s only product were the customer relationship itself, how good would your product be?
Entrepreneurs and business owners have the opportunity to understand, communicate with and relate to their customers as never before. Building the most successful customer relationships calls for effective use of today’s online tools–many of which are geared specifically for small businesses–while also demonstrating business and customer savvy.
Small-business experts from Constant Contact offer some tips on nurturing customer relationships and building a lasting, successful business:
Understand the relationship factor: Recognize that the individual relationship is your single most important asset. Great relationships will change the way your business grows and how many times customers refer you to friends.
Know your customers: Know what your customers want and how they want you to communicate with them. Connect with them using cost-effective and personalized methods. E-mail marketing is one such tool that can help you build stronger relationships with your customers and result in big cost savings.
Ask and listen: Listening is the heart of every successful relationship. Establish an authentic exchange by using tools such as online surveys to stay in touch with customer needs.
Earn and protect customer trust: Above all, people value trust in their relationships. Earn your customer’s trust and keep it by continuously working to maintain the integrity of your customer relationships. Use engaging e-mail newsletters to build familiarity and trust.
Share your expertise: The exchange of knowledge turns trust into loyalty by allowing your customers to tap into your expertise. E-mail marketing campaigns can feature your knowledge and serve as an ongoing resource for your customers.
The secrets to growing great relationships are simple, but the more creative and resourceful you are in applying them, the stronger and more valuable your relationships will become.
To learn more, visit http://www.constantcontact.com/emailmarketing/index.jsp and http://www.constantcontact.com/survey/index.jsp.
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