Archive for May, 2010
How to raise prices without raising prices
Posted by: | CommentsHow to raise prices without raising prices
In their book, Mass Affluence, Paul Nunes and Brian Johnson identifiy three strategies
their research revealed as viable for helping all marketers capitalize with the
moneyed masses.
And make no mistake, there are moneyed masses – despite what we hear in the news
everyday. All you need to do is employ marketing strategies that give customers
a chance to spend more.
Remember , your customers buy what they want to buy. Your job, as a marketer, is
to make sure you create value they want and are willing to pay for.
So here’s what the research revealed in a nutshell:
1. Give customers the chance to spend more. Offer new premium versions, adding on
product upgrades and differentiated service levels to existing offerings.
2. Honour customers with the recognition they desire. Create status levels that
reward willing-to-spend customers.
3. Offer the right price to the right customer.
For today, let’s focus on the first strategy.
If you are unwilling to raise your prices for your products and/or services, try
creating premium and deluxe versions of the same products and services offered
optionally, at a premium price.
Here’s why:
In almost every case, if a premium or deluxe version of a product or service is
available, no less than 5% to 20% of your existent or traditional customers will
opt for it.
Since the profit margin built into the premium version is usually substantially
greater than in the basic offering, the 5% picking the premium can actually create
a 50% or 100% increase in profits from the same number of units of sale.
Take the “concierge ” floor at a hotel for example. Typically, the rooms may or
may not be slightly larger or better turned out but still, they all have a bed and
a bath and require the same linens, towels, maid service, and electricity; key access
in the elevator (added cost: zero); a lounge with continental breakfast and evening
snacks (cost: a few bucks per guest); and two newspapers outside your door.
The price difference may be anywhere from 20% to 50% of the basic room for those
who want the “special” treatment. But the added cost may be 2% to 5%. That differential
item, the upgrade, carries a much higher markup than does the basic room.
Here’s another example:
Say you’re a business coach. You offer one-on-one coaching sessions for a set fee.
Your client can opt for your basic program or take advantage of your premium membership
coaching program that includes the one-on-one coaching sessions and a monthly group
coaching session via teleseminar featuring a special “guest” coach on a specific
topic followed by a Q&A.
You offer the premium program at an additional 25% markup. The teleseminar cost
is minimal. These days, most attendees expect to pay the LD costs. Your “guest”
will be happy to trade his or services for the exposure to your clients. (cost:
zero)
Presenting to one client or twenty five has a minimal impact on your costs. You
pay for the extra lines but the impact of the 25% price differential makes that
insignificant.
Does your business lend itself to this approach of including premium offerings?
If so, you may be on the verge of discovering a strategy you can use to significantly
boost your profits.
Gerry Black is a marketing writer based in Toronto, Canada who works with clients in Canada and the US.
Use Mind Reading To Attract More Clients
Posted by: | CommentsUse Your “Hidden” Mind Reading Power to Easily Attract More Clients
In marketing, knowing your prospect’s needs, wants, challenges and problems are important keys to selling them.
Now suppose you had a way to know almost exactly what your prospect wants when he or she lands on your web site or reads your email marketing message? Think that would be give you a better chance to make a sale?
OK. Well, the first two things your prospect is looking for are universal and if you aren’t taking them into consideration with all your marketing, start today and watch your sales jump.
Thing 1: People want useful information when they are looking to solve a problem or fulfill a need. Drop the welcome to your site stuff and the here’s a list of all the services and products we offer.
Thing 2: They want information quickly.
So, useful and quick. Understanding and acting upon that alone and will put you so far down the track ahead of most of your competitors.
However, you can leave them in the dust by supercharging your marketing with an understanding of what your prospect is experiencing or thinking at the time they are presented with your marketing message.
While you can’t know exactly what’s on your prospect’s mind, you can make some pretty good guesses based on information you already have. What it comes down to is having a clear understanding of who your ideal client is and why they bought from you.
Something tipped the scales in your favour that made your current clients pick you when it came down to making a buying decision. After all, they probably had many options.
If you aren’t quite sure, start asking. When you have an understanding of why they chose you over your competitors, you’re in a position to develop marketing messages that tap into your prospect’s brain.
And your road in is your prospect’s Reticular Activating System.
The Reticular Activating System (RAS) is the “attention center” of the brain. It works 24/7 and determines what we pay attention to by acting like a filter. It’s impossible for the brain to focus on everything it is exposed to during a day so the RAS keeps your brain on track by allowing it to focus on what’s important to you.
Here’s a common example of your Reticular Activating System in action.
You decide to buy a new car. Let’s say it’s a CHEVY TrailBlazer. From the minute you start looking for a place to buy it, you will see CHEVY TrailBlazers everywhere you look. That’s your Reticular Activating System allowing you to see them.
Now, think of how that can impact your marketing.
Your prospect has needs and wants. And he or she frames up many of those needs and wants in the form of problems that need solutions. By presenting your offering in the form of a solution to a problem, your marketing will tap into what your prospect is thinking -giving them EXACTLY what they want.
If your prospect is looking a service and visits a number of websites which are presenting the same pick-me sales message – here are all the products and services we offer blah blah – think about how you can cobble together a marketing message that immediately shows up on your prospect’s RAS radar because it matches up to what he or she is really searching for – a solution to a problem.
Think that will increase your chances of attracting attention?
You can bet it will! Which is why it’s so important for you to establish your main marketing message – your USP – and make sure you promote it on your website and in all your other marketing as a solution to a need or want your prospect is searching for.
That way, instead of surfing past your message because it looks like so many others, your prospect’s Reticular Activating System will send a message that says, “Hey, stop, that’s what you’re looking for!”
Happy selling.
Gerry Black is a marketing writer based in Canada who works with clients in the US and Canada.
7 Questions Your Home Page Should Answer
Posted by: | Comments7 Questions Your Home Page Should Answer
There’s a time-tested school of thought professional direct mail copywriters draw upon to inspire them to create attention-grabbing and compelling promotions.
It goes like this: Picture your prospect sorting through his or her daily mail standing over a trash bin. The primary objective is simple: dump as much of the stuff as possible.
A typical sort might include the following three categories:
*’forget it, no interest’
*’this is a must keep.’
*’this looks like it could be of interest, I’ll take a closer look.’
A similar approach is used by people looking for products and services on the internet.
Your prospect arrives at your web site with his or her finger on the mouse.
Because they have been conditioned by a seemingly never-ending sea of boring, self-promoting, hard-to-follow web sites, many have very low expectations.
They are LOOKING for a reason to click away – almost as soon as the home page fills the screen. Unfortunately, many marketers make it easy for them to press the button.
The real tragedy is that many of those same marketers have everything the prospect wants. They just don’t know how to communicate online.
Selling is selling. Face to Face. In ads. Via email. And especially on your web site.
You can have all the traffic in the world but if your content doesn’t grab your prospects’ attention and lead them through your sales story, you may end up with very skinny children.
Here are 7 questions your prospect wants answered:
1. What exactly is your service or product and why should I be interested? You have 3 seconds to answer this question. Otherwise, click: lost sales opportunity. Most home pages do a poor job which is why many business owners view their web site as a cost instead of an investment in what should be the most cost-efficient, productive salesperson they could ever hope to find. And make no mistake: it’s the “why should I be interested?’ part of the question you want to focus on. Put another way, they are really asking ‘What makes you different from your competitors?’
2. Will it work for me? The information on your home page must instantly send a compelling message to the prospect that says, “If you have a need for what our product or service does, we GUARANTEE it will work.” I’m not saying you must offer a guarantee but you must provide the kind of details that leave no doubt in your propspects’ minds that you can solve the problem or satisfy the need they’re bringing to you. Remember, you have the upper hand here. The prospect is looking for something. That’s why they came to your site. It’s your job to demonstrate why you have the best solution.
3. What kind of results can I expect? If you have won the “attention and interest battle”, you’re on your way to the front of the stage where you will have an opportunity to continue making your case. Make sure your answer takes the following into consideration: We think in pictures. That is, we “see” how a service or product can improve our lives. Your job, as a marketer, is to paint a picture that will allow the prospect to “see” how your product or service will improve their lives. Once we’ve done an effective job of engaging the prospect emotionally, we need to include logical reasons why this is a sound buying decision. As you know, people buy for emotional reasons (make me look better, feel better etc) first and then back up their emotional decision with logic eg. (these guys have an impressive customer list, the
organization has been in business for 11 years etc).
4. Who else has used this service and what were their results? This is where we need to offer irrefutable, third-party evidence that we can deliver. That means sprinkling compelling and meaningful testimonials around that leave no doubt in the prospect’s mind that they are in good hands. I wrote an article that I give to clients that offers a simple system for getting strong testimonials from your clients and customers. Not the “Mary was so nice and helpful’ blah blah that really does nothing to hammer home the true value you deliver but quantitative feedback you can use to extract winning testimonials. It’s simple to use. If you’re interested, email me and I’ll send you a copy.
5. How exactly do your services work? What’s the process and structure? This is an important part of the process. It demystifies your offering by helping the prospect establish some expectations. It increases the prospects comfort level. Especially if they have to answer to someone else. If you don’t do this, you run the risk that some
prospects will may away. Details sell and bring your offering to life.
6. Are you credible? Do you have the experience to help me? The prospect must be convinced you are the real deal. This is no time to be shy. Get your track record in front of their eyes – on the home page where it can win the day. I often see clients burying credentials in their site. Sadly, the reader never gets that far. That’s the kind of a selling ammunition you need on the front line – your home page. Make sure to highlight an industry awards you’ve received. For some businesses, a client list and numbers of years in business are other facts that can be used to convince the prospect.
7. What do I have to do next to get and use your services? Probably the second biggest mistake (and just as fatal) many web marketers make. They don’t identify the next step in the buying process for the prospect and invite him or her to take it. Huge mistake. And very costly. Prospects are lazy. Complacent. Easily distracted. Not self action-oriented. Guess what they do when we omit this step? Right. They just drift away after all the hard work we did to keep them in front of our message. Missed opportunity. Happens all the time.
Once your home page provides answers to the questions above, your conversion rates – getting your prospect to take the next step in the buying process – will increase.
Gerry Black is a marketing writer based in Toronto, Canada who works with clients in the U.S. and Canada.