Unearthing a piece of the 'Profit Code'

With the marketplace bouncing, business owners struggle for answers.

One client nailed it when he confessed, “In the good times Chris, we burned a lot of leads.  You had to be tenacious to even get our attention!  Now we need every enquiry we can get”. 

Times are tougher, but this holds a great opportunity for you.

‘Crack the code’ on how to get leads and sales flowing for your business in the current environment, and own your market at the other end of the tunnel.

Today, I’m going to give you one simple insight that could help you crack part of that code:

Your market doesn’t know what you do, nearly as well as you may think they do.  In fact, they don’t even know that they DON’T know.  And therefore, they don’t care.

OK, you may have heard that before.  But what does it mean for your industry?  It should be a call to action for even the most astute and switched on companies.

Unearthing an opportunity

I canvassed this issue with a client of one of those very switched on companies.  In fact, I workshopped the question with his whole team of some 30 people.  First up, I asked them what the PERCEPTION of their industry was out in the market place.  The industry at large.

The responses came thick and fast as I struggled to keep up writing on the butcher’s paper…

Pushy, untrustworthy, misleading, expensive, nasty surprises, lack of knowledge,  promises that aren’t kept, a nightmare experience, no follow up, unhelpful, disinterested, …

Boy, THIS industry had serious perception problems!  Can you guess the industry?  Actually, it really doesn’t matter.  Do this exercise with ANY industry and chances are you’ll get feedback like this.

But here’s the kicker.  We then did the same exercise on their perception of THEIR company.   Again, the responses came thick and fast, but very different:

We care, ethical, integrity, we listen, team spirit, systemised, deliver on our promises, industry respect, family values, welcoming, professional …

Now, I hasten to add that this company actually DOES deliver on these things.  In fact, part of the reason I agreed to work with them was because they are quite extraordinary in their systems, performance standards, and all those other things.

BUT … and it’s a big but …

I then challenged them with this question:  “YOU know you do these things, and why they’re important … but how much of this does your market know?”

They simply weren’t COMMUNICATING the very things that should set them apart from the ‘chaff’.

Out of that exercise came a whole new strategy.  We’ve now worked with this company  to help them encapsulate their extraordinary story.  To make ‘the invisible visible’. 

Their ‘magic story’ is articulated in every piece of collateral, every letter, every proposal, every brochure, in the way their people position themselves with their clients, in the website, in a corporate video, in new TV commercials …

I can’t stress this enough.  The big thing missing for them, and for almost all potentially great companies, is COMMUNICATION. 

Your collateral has to tell your story in terms that the marketplace understands, and will get excited about, and will rave to others about.  It’s not hard.  It just needs to be done ...

It doesn't matter if you’re a large financial institution, a trade business, a professional adviser, a wholesaler, retailer, butcher, baker or candlestick maker for that matter … IF YOU’RE NOT TELLING YOUR STORY COMPELLINGLY, if you’re assuming your market KNOWS or CARES, you’re losing out on huge sales opportunities.

Finally, let me share an email I received …

This client supplies high end industrial pump solutions … the $5,000 to $50,000 variety … to sewerage works, pump stations, refineries, etc.  We’d helped him articulate his magic story through a series of very specific white papers.

He wrote (paraphrased):

“One of our resellers was having a squabble over pricing of an $8,000 pump with a prospect, and just couldn’t get the sale across the line.  However, then the customer got hold of one of our white papers and liked what he read.  Now he is buying not only pumps, but motors, valves and piping. And here’s the good bit …

- We did not compete against any other supplier. No quotes were called.

- We were past price now, simply providing a solution …”

Your market doesn’t know what you do.  And they don’t know that they don’t know.

12 Golden Rules to Effectively Handling Enquiries

The more I show clients how to handle enquiries from new prospects over the phone, the more I find myself coming back to the same dozen 'sobering' truths … truths that help you understand the mindset of the caller.

These truths may at first appear negative.  They’re not.  They are simply a realisation that everybody – including your prospect - sees life through their own ‘eyes’.  And having an insight into how they ‘see’ (and feel) can help us to better relate to their needs.  So let’s consider the following:

1. The enquirer, regardless of what they say, isn’t just after ‘information’.  They HAVE a problem or a need.  Often a problem/s so complex they don’t fully understand it themselves. They crave to have it solved, and they’re looking for a solution.

2. Just making the phone call can sometimes be a big thing for them, because they have their own uncertainties and insecurities to contend with.  You need to be empathetic and make the process painless.

3. They’ve probably been disappointed by past efforts to find a solution.  So expect them to be distrusting until they know you are ‘real’.

4. They ARE going to buy.  Whether it’s from you, or a competitor, whether it’s today or in six months’ time, they WILL ‘buy’ something. Your task is to educate them to why your solution is best for them  (That is of course, IF your solution is indeed the best one for their particular circumstances.  Otherwise, you should guide them ethically to an alternative.)

5. They will have pre-conceived ideas of what’s ‘expensive’.  BUT on the other hand, when they find their ‘answer’, they will pay whatever it takes.  So it’s your ‘duty of care’ to ensure you ethically educate them to your solution, AND to show that your solution isn’t expensive, but is good VALUE.

6. They will initially have little or no concept of what your business does, and will tend to pigeonhole you with other firms who appear to deliver what you do.

7. They may nod in agreement at things you say in the initial discussion, but in truth, they’ll understand and absorb only a tiny fraction of what you have said.  Which means you need to go slowly, never assume.  And most importantly, through questions, do a regular ‘temperature check’ on their understanding.  CRITICALLY important.

8. When it comes to the Information Pack, brochure, or perhaps even DVD you send them, remember they have no basis for appreciating the VALUE, or of the decades of research and development behind this information. So unless positioned correctly, there is a very real risk it will simply sit unopened for weeks, until they’ve lost interest.   And when you try to follow up after their interest has waned, you become a ‘pushy’ salesperson, not a professional with the answers to their perhaps years of frustration.  What’s the solution?  You must position the value of the pack correctly UP FRONT before you send it.  Again, they won’t give any priority to the pack unless you position it correctly on the phone.

9. Remember that the person who has the information IS IN CONTROL of the transaction.  If you give it (the Pack) over to the prospect prematurely, without first gaining a firm commitment that they’ll review it, you lose the control.

10. Getting that firm commitment means getting their undertaking that they will go through it in a pre-agreed timeframe, in preparation for a follow up discussion.

11. Even after all the above, they’ll often say ‘yes’, but then nothing will happen.  In 95% of cases, you WILL have to follow up.  When you follow up, even after all the great positioning, there’s a chance they’ll say they can’t go ahead ‘just now’, for any number of reasons.  Often these reasons are NOT the real reasons.  You need to get as many of these potential issues on the table and out of the way as possible, before you hand over the information.

12. Remember that none of this is ‘manipulative’ or unethical.  It is simply acknowledging the foibles of human nature, and helping (ethically leading) people to come to an informed outcome.
 
Some of these 'golden rules' may not apply to your transactions with new prospects.  However, that said, I’d be very surprised if you didn’t get some real distinctions out of these 12 points for you and your own frontline people.

Let me know your thoughts …
Chris Newton

If you know anyone who would find value in reading this article, please forward (or tweet) this link on to them.

"To say the meeting got off to a slow start would be an understatement..."

Many years back, I had travelled to Munroe, Wisconsin in the US, to visit the headquarters of The Swiss Colony.  This company is one of the legends of mail order and online catalogue marketing, and still mails tens of millions of catalogues every year.  After some perseverance, I had secured an appointment with the head of marketing and his team to learn how they do what they do, explaining I was researching for a business venture back home.

To say the meeting got off to a slow start would be an understatement.  Perhaps they wondered WHO this guy from the antipodes was, and why they should even give up their valuable time to tell ME their secrets.  And I don’t blame them.

But just when they were glancing at their watches, something changed the whole dynamic of the meeting.  It was a tide-turning ‘event’.

I asked them why they’d dropped a certain feature out of the inside front page of their catalogue.

It’s as if they all froze.  Then the head of marketing turned to me and said, “You know, that has been a subject of heated debate around here.  Some of us battled to keep it, some insisted it had had its day.  But you know, you’re the first person who has picked up on that.  What do YOU think?”

From that point on, they leaned in and asked if I’d mind going through other pages with them. They confided with me on their strategy.  And I was invited to tour closed off areas of their operation. I walked away with far more than I’d ever expected.

The instant change in mood was SO profound, it has stayed with me all these years since.

As far as I can see it, the meeting which they had agreed to, was initially an imposition on their time.  A PR exercise perhaps.  But when I asked a question that got right inside their heads, the walls came crumbling down.  And the more questions I asked, the more we became collaborators with a common purpose.

I fervently believe that business people just don’t ASK enough questions.  Or more to the point, they don’t ask the RIGHT questions.

Asking the right questions might seem simple.  But there’s a trick to it. It’s...

PREPARATION

You see, before I travelled to The Swiss Colony, I had studied their current and back issue catalogues like an archaeologist deciphering the Rosetta Stone.  I had studied what I thought was great about their marketing, and where I felt their weaknesses were.

Which meant, when I got in the room with them, I suspect I knew a lot more about their business than a lot of people they meet who are trying to SELL to them. And they responded positively.

Most businesses just don’t teach their people the awesome power of preparation and of asking questions.  It’s that simple.

How many times have you had someone trying to sell something to you and you know in the back of your mind that they know nothing about your needs? 

Their interest in YOU is superficial.  Their true agenda is to SELL something to you.  Often they don’t ask you questions at all.  Or if they do, they’re not listening, but rather just thinking about what they’re going to say next.

Selling … in ANY form … has to be about asking the right questions, which means diligent preparation before the interaction.

True professional selling is about ‘helping people make informed decisions to buy’.

And that can ONLY occur when you know what they want … and you’ve figured out how you’re going to give it to them.

Sounds ‘motherhood and apple pie’ … but it IS the key to earning more business, at better margins, and building long term business relationships.  Let me say it again …

Most businesses just don’t teach their people the awesome power of preparation and of asking questions. Those who do enjoy the fruits flowing in abundance from the 'cornucopia' of business-waiting-to-be-had.  Yes, especially in the toughest times.

Unitl next time...

Chris Newton

How to Make Sure Your Invoices Get Paid

As the economy continues to splutter, more of your clients are going to struggle to pay your invoices.  No surprise there.

In fact, those who’ve long been in the habit of using YOUR money to run their businesses (or their lifestyle) will stretch things even more now.  Some will default.

This begs the question... 


How do you make sure you get paid in full, on time?

The best solution of course, is to get paid UP FRONT.  And more on that in a moment.

Regardless though of what your payment terms are now, getting to the front of the payment line is a function of how well you’ve set up the expectation of getting paid. ‘Laying the ground rules’ on being paid.

If, at the beginning of the business transaction, your client senses a casual approach to being paid, that’s what you’ll get.  In contrast, by firmly but nurturously explaining your terms BEFORE providing the service, and then following up immediately if the client misses a due date, you have a far higher likelihood of being paid.

‘Laying the ground rules’ on being paid is something many businesses are uncomfortable with.  And they pay the price later in tardy collections, which then create their own cash flow crises.


Why not get paid up front?

Our own invoicing policy is an agreed first monthly instalment paid before we begin a project, and further instalments at the start of each month.  If it’s a ‘lump sum’ project, we require 50% of the funds upfront.

Of course, to be paid up front, clients need to trust your capabilities to ‘deliver’.  And trust that you’ll go all out to give them an amazing result. 


But the key point is this. 

Create the expectation of being paid up front, educate your clients to the value you’ll deliver, and most will accept this graciously.

On the other hand, if you present your product or service merely as a ‘commodity’, something your clients can get anywhere, you’ll simply invite them to shop around for another supplier who will give them 90 days … or 120 days.


Bottom line?

Be passionate about what you ‘deliver’, and about the value you bring to the table … communicating your ‘value package’, your legendary service, your responsive support, your problem solving strengths and so on … and you’ll create the right expectation in your client.  They simply won’t go anywhere else. 

The alternative is to be a commodity.  And that means, getting to the back of the line!

4 things to do immediately when sales start drying up

FOUR things to do immediately when sales start drying up (and a personal invitation from Chris Newton at the end of this email) ...

The current economic conditions are a fact of life.  But it’s no time to curl up in a corner in the foetal position.  

Now is the perfect time to be actively looking at new (or old) ways to turn things around.  Smart players boom in these times.

Let me give you four basic action steps to get sales pumping through your business again.

1. Tighten up your sales processes.

OK, I rant about this regularly.  But I get to look inside lots of businesses, and I have to tell you ... SALES are being lost every day for the want of some simple changes. 

• What about when the phone rings with a request for information?  Realise it’s NOT a request for information!!  It’s someone wanting to BUY.  Organisations are so laid back, they accept sending of a brochure and bland form-letter as handling the ‘sale’.  It’s NOT.  You need an elite team of trained ‘green berets’ hungry for sales, who make sure every possible (ethical) avenue has been covered, systematically and consistently, to get the sale.  And you need to track what’s happening ...

• What’s going on in the business?  In the ‘good times’, it’s so damn easy to ignore things that make you cringe, and be too busy to do anything about it.  Times aren’t ‘good’ right now.  FIX these things internally that eat away at your market share.  What sort of things?  Customer enquiries sitting for days unattended to.  Poorly worded letters going out, often with grammatical or spelling errors.  That square peg in a round hole person who should never be handling sales enquiries, who is still there.  I could go on.

• Sales skills.  Presenting at a conference recently, I invited a gentleman up on the stage.  Like most of the people in the room, he thought he was pretty good at selling.  But about 45 seconds into our role play (with me as the customer), he was stumbling, uncomfortable and disoriented as to how to handle my basic questions on price and why I should buy from him and not his competitor.  To relieve him of his discomfort, I switched roles.  With limited knowledge of his products, I showed him and several hundred other business owners how easy it is to keep control of the sale.  The whole room agreed this change in approach would work for them.  But up until then, almost NONE of them did these things.  Bottom line, if your ‘green berets’ aren’t seriously honed in the skills to handle a prospect’s enquiries, you are losing market share.  And with the “shrinking pie”, that’s a luxury you simply can’t afford.

2. Mass Marketing vs Boutique. 

I’ve talked a great deal in the past about ‘mass marketing’ strategies.  It’s time to think about ‘Boutique Marketing’.  This is awesomely powerful. 

There’s a wonderful story about how David Ogilvy arrived in New York, from the UK as an unknown, and went on to build one of the largest and most successful ad agencies on the planet.  How?  He focused in on exactly which companies he WANTED on his client list. 

He wrote a list of the FIVE ‘blue chip’ companies he wanted to get.  We’re talking Shell, Lever & Kitchen, Rolls Royce.  The big guys. 

He stuck his list of these five giant corporations on his bathroom mirror.  And every day, would not leave that bathroom until he had at least one initiative to get one of those companies one step closer to being a client.  The rest is history.  

He ultimately got all five. 

You see, when you break your market down into small ‘boutique’ numbers of prospects, you can bring enormous focus and energy to bear, just on them!   You can ‘afford’ to stand out and be noticed.

Fed Ex a package to the 5 decision makers, find ways to add value to them, create a dialog with them.

In tough times and in the ‘good times’, almost no one goes to this effort.  If you can be a bright star on the horizon for your prospect list, odds are you will ultimately win the prize.

3. How many ‘dead leads’ do you have? 

Just like some ancient reptile in Jurassic Park waiting to be reawakened, many of your dead leads may not be dead at all.  Chances are, they’re just waiting for someone to come along and poke them into action. 

One business owner said to me the other day that he has 50,000 unconverted leads in his database!  It’s taken the tight times for him to think about re-approaching these people. 

What if he can stir even 2% of them into life and they buy from him?  For his business, the recession would be over!  Do you have leads and past client names that are really just dormant, waiting to get a great offer from you?

4. Remember ‘Shoe Leather’? 

I love this story.  One of our clients is a very successful chiropractor. 
We’ve been writing his ads, supporting collateral and client referral and reactivation pieces on and off for years.  But he has just pulled off a coup of his own.  With ‘shoe leather’ marketing. 

No, he didn’t go door to door in desperation.  He leveraged himself.  He secured an invitation to go to the local gym, and for a nominal fee, offered to give the members a spinal check. 

The result?  Out of ONE visit, he’s gained 25 new clients.  A good morning’s work?  You bet!  His ‘lifetime value’ of a client is worth some $4,000 to him over the next four years. 

That’s $100K in new future business in a morning.  Now that’s inspiring.

What’s the bottom line on all of this?

Tough times are not for sitting in an ivory tower and worrying.  They’re times when different strategies, including well thought through ‘shoe leather’ marketing, can pay massive dividends.  May you boom in the ‘tight times’.  

Personal Invitation from Chris Newton:

Okay, this next bit is an invitation to work with us on your marketing ... if it's appropriate for you right now.  Go to the link below to hear:

www.resultscorporation.com.au/offer.mp3

(If you have trouble with the link above, you can also listen to the offer on YouTube: http://www.youtube.com/watch?v=2agQgmvuGiM&feature=channel_video_title)

Chris Newton

Are your quotes losing you business?

You may have heard me say before: ‘tear up your quote forms!’

Now, that's a fairly provocative statement.  And for many businesses, doing quotes is the only way they get business.  Or that’s what they think.

There is a better way.  Not only that, it will earn better margins, win MORE business, and serve your customers better.  A different positioning in fact, that will leave your lower priced competitors scratching their heads as to how you're winning the business.

First, what does the word quote mean to your prospects?

It means: "Check my competitors. Shop against me. Find the best price."

Think about it.  If that's how you're positioning your business, solely focusing on price, then your business will forever be fighting an uphill battle.  Now more than ever, given the increasing influence of the Internet and the 'global village' market.

Let's re-think the way you position your 'quote'. 

Start by not seeing it as a quote.

See your quote as a job specification, an action plan, a specification sheet...  Call it what you will, but don't call it a quote.  Get that word out of your vocabulary, and the vocabulary of your team.

Second, where do you put the price on your quote now?

Right at the bottom, at the very end?

Hmmm, what does the prospect do when they receive the quote?  They go straight to the very bottom and take a look at the price before they read the details.

So how might you address that?

Think about putting it right up the top.  Thank them for the opportunity to work with you on this project, state that their investment will be x, and then take them through the value they'll receive - list out the benefits.  Like this:

"Based on our discussions and your specifications, your investment will be x dollars.  Let me spell out exactly what you will get for your investment..."

Guess what your prospect is focusing on now?  Suddenly you've turned the whole focus around.  They're focused on the value they'll be receiving.  And the price is out of the way.

And importantly, when you write your proposal, assume that you've got the job.

Now I don't mean you don't have to try.  Instead, have the mindset, the 'belief system' that your solution IS the right one.  And that your prospect would be crazy to go anywhere else.

And in truth, if you've done your fact finding and set up expectations correctly with the client, there's no reason you CAN'T be confident you've got the best price/value solution.

One final point...

Even in a struggling economy, buyers are more concerned with the value of what they're getting than the cost.  There's a bit of wisdom here:

The seller often has more problem with price than the buyer ever will.

Hard to accept but true.

Until next time,

Chris Newton

P.S. If you'd like more help on re-working your 'proposals' or 'job specifications', take a look at this article on our Results Corporation website:

http://www.resultscorporation.com.au/Articles2.html

How to own your market...

Here is a classic example of the power of creating a ‘reason for being’.  This case study is from our archives.  The concepts are as relevant today as then.  The client, of all things, was a grave headstone mason.

He'd approached us with a problem.  His Yellow Pages ad, he felt, did not do justice to his business and his life mission.  His ad was just like all the others ... page after page of sameness in the classification ...  Big logo up the top, the same bullet points as everybody else and a big phone number at the bottom.

It didn’t tell the full story ... his special story.

And when people called, what do you think they focused on?  Not surprisingly they tended to focus on PRICE.  Obvious when you think about it because all the ads were fundamentally the same, so price was the only thing they could focus on ... John Smith (not his real name) was convinced we could help him tell his story so he could break away from the 'price trap'.  And to be honest, the more we probed him about his business, the more fascinating the story became.  Our resulting headline read:

‘When you want a monument to your loved one that’s as special as they were ... speak with John Smith’

This ad created a very special personality around his business.

• It spoke of the fact that his monuments ‘are cut from stone, rather than pre-made blocks’ ...
• That ‘you must be 100% delighted with the finished work or you don’t pay’
• That you get to approve the layout BEFORE work begins ...

Compelling reasons to commission him.

But here’s the interesting part.  Do you think the OTHER stone masons listed in the Yellow Pages cut from stone as opposed to pre-made blocks?  They might …

Do they guarantee their work or does the client take the risk?  Do they let you see the drawings before work begins?  They might …

The point is, their ads DON’T SAY if they do or they don’t!

And what that means ... the one who DOES say these things, ‘owns’ those ‘reasons for being’.  The unique selling proposition of cutting from stone ... and the unique selling proposition of having a 100% delight guarantee.

This ad superbly pre-empted the market ... and positioned this company perfectly in that niche in the market that HE wants to serve.  (Below is a reproduction of the ad.)

 

Two things happened after this ad appeared ... first, the number of calls from the Yellow Pages increased.  Not dramatically, but they did increase.

Second, and FAR more importantly, the people who rang as a result were a different type of person ... they didn’t focus on price.  They simply asked, “When can you start?”.  They had been educated to what this remarkable stonemason is about ... creating beautiful monuments.

Want to 'close' more sales? Try 'opening' with more questions...

Here's an easy test for you to try next time you're in a one-on-one sales situation.  Consciously observe how much you’re TELLING … and how much you’re ASKING.  You may find the results of this experiment very interesting.
 

Unquestionably THE most powerful approach in selling is by asking questions: questions about your prospect, their situation, their needs, and what they're looking for.

The temptation however is to revert to TELL MODE.

A salesperson needs to be like an investigative doctor, asking about the symptoms of a patient to diagnose the problem before prescribing the treatment.  In the case of the doctor, doing it any other way would be professional malpractice.  Not asking questions in selling is malpractice too.

The great thing about asking questions and listening to the prospects answers is that you can then ‘prescribe’ the solution exactly for their needs, and use their language. 

Remember this phrase: “Based on what you've told me, 'X' would be the most appropriate service/product for you.  Remember how you said you are looking for …”

Easy.  Powerful.  And so few salespeople do it effectively.

The Concept of ‘Soft Dollar’

The concept of ‘soft dollar’ is a simple concept. But hardly any businesses harness it effectively. 

It allows you to value add to existing clients. It allows you to develop strategic alliance relationships that get you endorsed into other client databases ... and it gives you the tools to take away the focus from price and minimise the need to discount. 

So what IS ‘soft dollar’? 

In a nutshell, ‘soft dollar’ is something you have, or can create, that has a HIGH PERCEIVED VALUE, but costs little to produce or source. 

Take a pizza store. That’s an obvious one we’re all familiar with. 

The first pizza they sell a customer is encumbered with all the overheads ... wages, rent, power, insurance, advertising, etc. 

However, if they were to offer a SECOND Pizza FREE ... what’s the ‘hard cost’ to provide that second pizza? Some flour, water, cheese and a few extra ingredients. Maybe $3. Yet the perceived value is the same as the first ... Let’s say $12.

This is a classic example. That $3 pizza, positioned as a $12 bonus, can be (and has been) harnessed as a potent marketing tool.

In a similar vein, a beauty salon may offer a $20 hair styling as a gift. Perceived value, $20. Yet, the delivery cost of that service may be $2.

We’ve helped countless clients ... in beauty salons, fitness centres, health care, retail, automotive, financial services, real estate, design and construction, travel ... to rapidly acquire new customers through this concept. It is a concept you must constantly seek to apply. Because it IS so powerful.

Let’s have a look at a few more examples. Take the situation of a professional services provider.

Virtually any professional may use this same strategy. Naturally it has to be ‘packaged’ in a professional and appropriate way, depending on the profession. But the concept is equally as potent.

Take an interior designer. This person may charge out their time at say $150 an hour. It’s VALUED at $150. But it doesn’t cost $150.

The positioning of this offer is critical. If the consultant is seen to be promiscuously giving their time away freely without positioning it correctly, then it loses much of its value.

On the other hand, if this professional ...

• positions the hour as an exploratory consultation, valued at $150 and ...
• dimensionalises the value to the prospect of what they’ll be doing in that hour to analyse, advise and recommend, AND they ...
• give reasons WHY they’re prepared to invest that time with the prospective client, an ‘investment’ in the prospect to that the prospect can fully understand the depth and breadth of the designers services and expertise ...

THEN ... this becomes a classic harnessing of ‘soft dollar’ strategy.   The consultant could launch a whole campaign around this strategy, aimed at highly targeted prospective clients.

Every business can harness this very powerful strategy. Apart from positioning an hour of your time in this way, your ‘soft dollar’ could be: 

•  one of your own low cost high perceived value products that is related to, or enhances your main product offering in some way. An extended warranty perhaps.
• a complementary product you source from someone else. You supply fitness memberships, you ‘package in’ a $55 voucher from a local massage therapist or beauty salon.
• information you ‘package’ into a special report. This one is SO powerful, and so few businesses really harnesses it effectively. (For more great tips, grab a copy of our e-book '21 Tips to Creating an Effective White Paper' ... you'll need to put "21 Tips E-Book" in the comments field)
• an audio tape of a seminar you’ve presented to prospects an interview you’ve scripted to give solutions to hot issues of the moment

The possibilities for ‘soft dollar’ are endless. If you don’t feel you’ve got the expertise to do the packaging, don’t let that be a reason NOT to do it! Find someone who can record a seminar, or a marketing professional who CAN put together a report of packaged information. 

 

Offering packaged information has been recorded to produce up to a 3,000% increase in leads. So it is worth doing.

We'll be really delving into white papers soon, so sign up to this blog to make sure you don't miss that series of blog entries.

Are you looking for sales in all the wrong places?

We're all interested in ways to increase profits. But, all too often, business owners look in the wrong places for the answers while an abundance of extra profit is being lost right under their nose. They just don't see it leaking away, day after day. Let me give you a real life example.

Some time back, a client came to see me with a marketing problem. He was the owner of multiple tile showrooms. He said the market was hardening, his competitors were undercutting his prices, and he was starting to lose market share. "Chris, I want you to come up with a new advertising campaign. Something catchy and gimmicky that will get our sales up, and fast".

My response wasn't what he expected. Instead of talking gimmicky ideas, I quietly asked him: "Alan, what's your sales process? How does business come to you now? How much of your business is 'walk-in' traffic, and how much starts as an enquiry over the phone?"

Perplexed as to why I was going down this line of questioning, he told me that the market is extremely price focused, and people typically shop around for prices over the phone before they go into a tile showroom.

I asked another question "What percentage of those enquiry calls actually convert to a visit to your showrooms?"

Well, that question really set him off! "Twenty percent would be being generous!" Their average conversion rate was a real bone of contention he had with his staff.

"Alan, what's YOUR success rate in converting callers to sales?".

He fired back, "Look, I run a twelve million dollar business with multiple stores. I hope you're not suggesting I answer the phones!" I assured him that this was not my intention. But I still pressed him for what happens when he DOES answer the phone. "Well, I reckon I get about 80% coming in to buy. But I've been in the industry for a long time. I know my products backwards. And no one has my knowledge in that area."

Perhaps you can see where I'm going with this. Here was an experienced and intelligent businessperson who'd come to me convinced he needed a 'catchy' new ad campaign. But he was looking in completely the wrong place for a solution! What he really needed was something different altogether. Look at the numbers.

Alan was getting 80% conversion to a sale over the phone. His people were averaging 20%. His team's conversion to sales was haemorrhaging badly. My next question really blew the lid off his problem for BOTH of us "Alan, how many people across all your stores take these sales enquiry calls?"

"FORTY!", he answered. He had forty people taking his phone enquiries at a devastatingly low 20%. It meant every time someone in his team picked up the phone, he was losing 60% of his potential sales.
And HE thought he needed an ad campaign!

By training his people to convert, not at 80%, but just 40% I showed him that he'd immediately add some FIVE to SIX MILLION DOLLARS to his turnover. Without a cent more on advertising.
No matter what your business, there's an indelible lesson to be had here. Review your advertising by all means for increased profit opportunities. In fact, during this course, we'll be showing you exactly how to do that. But always look at your current sales PROCESS first. As yourself these searching questions:

Do you actually know what your average 'conversion rate' is? I don't mean 'guess it'. Do you accurately measure it? Do you measure it for each individual? There's great wisdom in the saying, "What you don't measure, you can't manage". As well, do you have scripts to maximise the success of your individual team members on the phone, and in face-to-face sales situations?

And do you have a follow up system to follow up sales that didn't happen right away? And a system to develop ongoing communications with your prospects? Do you programmed approach to ethically re-selling existing clients?

In each of these seemingly innocuous questions is hidden the potential for an avalanche of new sales and profits. But it IS hidden. You won't see the opportunities unless you dissect your sales process and identify them!

Get more tips like this one by joining 'Chris Newton's Strategy Brief Marketing Course'.




To contact Chris Newton, the author of this blog, go to www.ResultsCorporation.com.au

Marketing? Where do you start? How does a 72.8% lift in sales sound?

Few businesspeople can actually define what 'marketing' actually is. And the thought of having to do marketing can be daunting. Yet they (and YOU), are already doing marketing every single day, whether you realise it or not.

Marketing is your single most leveraged profit multiplier in your business. You can impact your profit line with just subtle twists on what you're now doing. And here's the really good bit. You only need to focus on 3 areas to get a massive jump in revenue. Those three areas are:
- the size of your client base
- your average value of a sale, and
- the frequency with which clients purchase.

Now just in case you're about to say you've heard this before... here's a critical point.

This blog and the supporting tools I create for small businesses are NOT about 'telling' you the obvious. They're about SHOWING YOU EXACTLY HOW to implement strategies to achieve the outcomes. And helping you set your priorities in an otherwise frantic day. Of course, once you uncover the dynamic behind such a strategy, often it IS obvious! Commonsense.

So what if you set an objective to improve each of the three areas of focus by 20%? You'll lift your revenue by 72.8%! I guarantee you, it IS worth doing. So take some time now for this mini-audit of your current marketing. First up, ask yourself:  

Focus #1 - Increasing the size of your client base

- Do you test different headlines on your ads and measure the outcomes?
- Do you test different offers?
- Do you tell your FULL story on your website and in your literature?
- Do you script the wording and role play how to deal with phone enquiries?
- Do you have a script and a system for generating more referrals?.

In just those five initiatives to increase the size of your client base, the leverage for increasing your profits is breathtaking. Testing headlines can multiply your number of enquiries by twenty times.

Testing offers up to three times. Role-playing how to deal with phone enquiries can DOUBLE your success on the phone. And so on! These are real figures, not theory!

And this is just scratching the surface. Let's look briefly a:

Focus #2 - Increasing the average value of a sale

- Do you articulate the full value of your services and charge what you're worth?
- Do you train all frontline people in professional selling and customer service?
- Do you test packaging products and services together?
- Do you have a SYSTEM for cross selling?

Again, these are just a few of the options open to you to increase your average sale value. Do nothing different than now, and chances are, it is costing you dearly in lost profits.

Finally, how can you increase the frequency of purchase by your client base?

Focus #3 - Increasing the frequency of purchase

- Do you have a 'client communications calendar'?
- Do you find ways to say thank you?
- Do you plan special events and actively create reasons to add value to your clients?


Where to from here?

Start doing 'stuff'. Remember, if you can implement initiatives to lift each of those three areas by 20%, it puts 72.8% on your revenue line. Do the numbers on what that does to your profit line! And work with your accountant too on ways to get your costs down as well, and your profits could well soar by over 100% or much more.

Let me offer you an idea that multiplies your success up to 300%

What idea can I offer you that’ll do that? In a word, it’s your OFFER. Tests have proven time and time again that a compelling offer can generate MORE responses by up to 300%. What constitutes an offer?

Take ‘Buy one, get one free’ and another, ‘50% discount’. Same intrinsic value, but human nature being what it is, the buy-one-get-one-free offer almost consistently outpulls the 50% discount offer by 300%.

Of course, an offer can be a myriad of things… a price reduction, a free sample, a discount coupon, a free information kit, an extra strong guarantee, a free survey or consultation, free seminar, easy payment, free trial, small gift. One swimming pool company offered ‘An extra 5ft of pool FREE if you buy in the off season’. It reportedly worked gangbusters for them.

Just finally, what separates a ‘good’ offer from a poor one is often in the PERCEIVED VALUE built around it. ‘Dimensionalising’ the value. Telling its ‘magic story’.

In some instances, I advocate devoting almost as much space to describing the benefits of the OFFER – (say a free information kit or special report) - as I devote to selling the product itself.

If you'd like more great ideas for maximising your marketing, download our free "Recession Proofing" white paper at ResultsCorporation.com.au

“Please don't hesitate to throw me in the bin”

So you've written an awesome sales letter. Spent hours sweating over every sentence. But does it go out to the prospect with a closing line that says, “Please don't hesitate to throw me in the bin”?

Of course you won't have used those words, but if it says “Please don't hesitate to call me if you have any further questions, or for more information” ... or words to that effect, you may as well have said “throw me in the bin”!

Wherever possible, say something PRO-active like: “Because this is so important for your business and I know you’ll have some questions, I’ll call you in the next four days ...” Then call. Will this make you more sales? You bet!

For more great small business strategies, ideas and tips go to MarketingHelpOnline.com

Bouncing back to even greater profits.

When you have just delivered a product or service to a client, this is the best time to invite them to buy again. For example, someone who has just had a great time at a resort is hot to re-book. Someone who has just bought landscaping supplies is hot to build a barbecue or a pergola.

People are BEGGING to be led, to have someone show they CARE. And inviting them to again enjoy a purchase is a great way to show you care. It can be as simple as a brochure for your next product inserted with the purchase they’ve just made, or a follow up letter or courtesy phone call.

Hard as it is to accept, the most RECENT purchaser is the most likely to buy again.

Sign up to free Marketing Strategy Briefs like this one, or check out my sample Marketing Articles.

The hidden profits in a Multiple Contact Strategy

At one of our ‘boot camp’ workshops, presenter US marketing guru Jay Abraham had the entire audience stand up. Then he said, “Please sit down if you responded to Results Corporation’s FIRST letter inviting you to be here”. Some 15% of the audience sat down. “If you responded to the SECOND communication, please sit”. Another 10% or so sat.

After he’d repeated this several more times, there was still some 35% of the people standing! What he had so graphically demonstrated was that unless you have a MULTIPLE CONTACT STRATEGY, you are going to MISS OUT on a massive amount of sales. Especially if yours is a high ticket item purchase. (Our boot camps were $4,500+)

Also, vary your communications. One might be a letter … another a letter and CD, another an email … You might include a series of testimonials, samples of your product or special report, an ‘act now’ offer … and so on. You can have a lot of fun with this and you’ll boost your campaign results!

For more great gems like this one, sign up to my free bi-monthly strategy briefs at: http://www.marketinghelponline.com.au/enterprise/3-membership-sign-up-options.html

You can also find some great 'sample' articles on my website: www.marketinghelponline.com.au

Improve your business' conversion rates

This riveting interview reveals how one business owner improved his company’s sales conversion rate from 1 in 19 … to 1 in 4 …

The interview is just over 12 mins in duration, and chock full of profit making insights to have you challenging YOUR sales processes.

Click here to hear it now: www.marketinghelponline.com.au/1.mp3 (12 mins 18 secs)

For more great ideas, sign up to my free small business marketing strategy brief emails.

Also check out the great sample articles at my website: www.marketinghelponline.com

What ONE element in your marketing has the potential to multiply your results 300%?

What ONE element in your marketing has the potential to multiply your results 300%? In a word, your OFFER. But what constitutes an offer?

It can be a myriad of things… a price reduction, a free trial, a discount coupon, a free information kit, an extra strong guarantee, a free survey or consultation, free seminar, easy payment, small gift, creative ‘value add’ …

One swimming pool company once offered ‘An extra 5ft of pool if you buy in the off season’ …

You need to test different offers for different markets. But they are an easy and simple way to get up to 300% more of your prospects to ACT NOW.

Compare ‘50% discount’ with ‘Buy one, get one free’. Same intrinsic value, but the ‘Buy one get one free’ proposition has performed better time after time. Yes, by up to 300%.

But there’s a catch. Even with a seemingly good offer, all too often the initiative underperforms. Why might that be?

Typically, it’s because the value of the offer is not developed correctly. Or more accurately, the perception of value isn’t fully ‘dimensionalised’. If the promotion simply states: ‘Send now for a free information kit’ … there’s no perceived value. However, if the promotion explains that this free information kit has 14 little known ‘trade secrets’ revealed by leading experts, or that it reveals the 8 most vital questions you must to ask before making a buying decision … or whatever … THEN it becomes more desirable.

By painting the picture of its usefulness and value, it’ll have highly qualified prospects beating the door down… eagerly giving their name and a whole lot of other vital information to get hold of the offer. Which means you’ve now got a database to nurture into customers.

In summary, what separates a ‘good’ offer from a poor offer has a great deal to do with PERCEIVED VALUE you build around it. In some instances, I advocate devoting almost as much space to describing the benefits of the free information kit as to the product or service itself. One ad we ran for a client was all about the information kit offer, and boosted responses 3,000%.

You can check out my website for some great sample articles at: www.marketinghelponline.com

For more great ideas, sign up to my free small business marketing strategy brief.