The Edge by Mark Dresner

This video is a short case study of why it’s so important (especially today) to use
personalized marketing messages to help build strong customer relationship.

Ignoring this is sure to cost you sales!

Rock beats scissors … scissors beat paper … paper beats rock.

Remember this game? It’s like flipping a coin except with decisions and strategy.

This game decided many important issues in our family. For example, which team batted first, who sat in the front seat or what TV show we watched.

This seemed fair to me … at least half the time. The other half I wasn’t happy with the outcome.

Why? Because I lost.

We want to win, ALL the time.

Human nature is such that we always want to win. Right?

Here’s what I want.

I’d like to get my hands on a powerful weapon that virtually guarantees victory. Sorta like using a Nuke in the Rock, Paper, Scissors game.

Of course it has to be something my competitors don’t know about or think to use.

Good news … I’ve got just the thing … and will reveal it in just a moment.

But first, let me ask this.

Do you drop your drawers (not literally) for customers?

Is your “go-to” tool the same as many of your competitors?

It’s likely the same tactic I often used when selling multi-million dollar computer systems, years ago. Know what I did?

At the blink of an eye I would cut my price in the face of competition.

And I’m not alone. Price chopping seems to be the number one competitor-beating strategy companies use.

What’s the problem with dropping prices?

Nothing. If it’s part of a well thought out marketing strategy.

Otherwise, it could hurt the perceived value of your products and … splash red ink generously over your bottom line.

I’m NOT trying to be overly dramatic here. Just trying to make a point.

However …

There is a dark side to price cuts.

Face it, the likely reason you’re dropping prices is to attract new customers and drive new business. On the surface that seems to make sense, but …

However there may be some unexpected results too:

• You attract sale-hounds not customers. These folks ONLY shop price and will shop elsewhere for the smallest price difference. They are also the most difficult type of customer to please.
• Competitors lower prices too, so you no longer have a price advantage. If this happens you may never see the customer traffic you expected. You may even be seduced into a price war and lose big money on the whole deal.
• Customers and potential buyers become trained to look for your price reductions before considering a purchase. This sticks you into a downward spiral of continually lowering prices to attract customers.

How many of these gotcha’s have you experienced?

Okay, so what’s the alternative?

How to satisfy customers and earn more than ever before.

Simple. Give them what they REALLY want.

People often fool themselves into believing what they really want is the lowest price.

Not true.

What we all really want most is maximum VALUE.

Value is when you feel you’ve gotten a fair deal on a transaction. You exchange your money (or time or effort) and receive something of equal worth in return.

You see it’s not just about getting the lowest price.

What’s BETTER than getting value?

Getting a better (or best) value, of course. This occurs when you get something worth more or MUCH more than you’ve paid for it.

We’re talking about shopper Nirvana!

Value is a very relative measurement. And what’s good value to one person may be of little value to another.

This is where choice comes into play.

Would you like the Platinum, Gold or Silver model?

How many times have you been presented with this type of choice?

For me the answer is, “every time I walk in to a car dealer to buy a new car.”

Sure I may start out with the entry-level (silver level) car, but I never leave with it.

Why?

Because, if my salesperson is doing his or her job right, they’ll demonstrate the added value of the model one level up. Or even two levels up (Gold or Platinum).

They’ll skillfully explain all the benefits I get (comfort, safety, and higher resale value) of the “better” models. Furthermore the few dollars more per month is insignificant compared with the many benefits I’ll enjoy.

Plus they’ll also throw in free oil changes for life.

Wow. Now I’m sold.

But it doesn’t end there. After I’ve committed to buying the more expensive (I mean value-laden) car I’m presented with dealer-installed options.

If I choose I can FURTHER enhance the value of my purchase. Perhaps with a better stereo or a GPS system…

Here’s my point.

• Don’t compete solely on price. Instead compete on value.
• Give people choices: entry-level (few bells and whistles), mid-level (more bells and whistles) or premium-level (the whole enchilada).
• Understand clients’ real needs to guide them towards suitable alternatives. Then, let them choose the price point and associated value that best matches their needs.

Use this strategy to attract new customers. Then delight them with choices that meet their financial, emotional and practical needs.

Give real value and you’ll keep customers coming back again and again. Plus you’ll keep your own bottom line healthy too!

Let the other guys lose their shirts by continually cutting prices … Right?

Selling technology services is no picnic.

Actually, selling ANY service is tough.

Though, in my book, technology services are the toughest.

After all, they’re complex, confusing and generally difficult to present to clients. And like all intangibles, services don’t really exist at all.

At least not in the literal sense, like a “thing.” Instead, services exist solely in the imaginations – and written contracts – of their creators.

Ahhh, but products…

Products on the other hand, have substance and form. They can be seen, touched, and held. With products, little is left to the imagination.

Because of this products far easier and less risky than services to present, sell and buy.

Services vs. Product Paradox

For many technology companies services deliver greater profits than products.

But they’re tough to sell.

Products are easy to sell … but they’re less profitable.

What a dilemma.

But what if …

What if it were somehow possible to transform a service into a product? Then you’d have the best of both worlds.

You’d have something highly profitable AND easy to sell!

Well, in fact, it is possible to productize any service. And I’ll show you exactly how to do it. In essence we’ll transform our intangible service into something tangible, real, and easy for clients to buy.

One everyday example of a productized service

We’re all familiar with insurance.

A life insurance policy, for example, is a service product. The agent delivers your policy documents in an elaborate presentation case with the policyholder’s name inscribed on the cover. The overall presentation reinforces the sale and adds genuine value and confidence in the mind of the buyer.

Generally, the more tangible you make a service offering (the more product-like), the easier it is for both salespeople to sell and customers to buy.

Clients want to know exactly what they’ll receive when they buy your service. Plus they need to recognize the value of the service deliverables to their business.

Until you’ve demonstrated these two things your client won’t commit to buying your service.

3 Steps to productize any service

Turning any service into an easy-to-sell product really comes down to these three steps.

Step 1: Determine what problem your service REALLY solves. Be very specific here. Make sure you’re solving a problem that your clients really care about.

This is also really a benefit statement of how you will help the client. Think how you’ll make his or her life easier, save/make money or improve business operations, etc.

And this is no time to fool yourself with “faux benefits” that aren’t really benefits at all. Your list of benefits should embody the ultimate value the client can hope to receive by buying and using your service.

Now is also the time to think about what makes your service unique. In other words, how does your service/product solve the client’s problem better than any competitive one?

A Unique Selling Proposition (USP) can be proprietary delivery methods or methodologies, proprietary software or tools or highly trained personnel.

Step 2: What will the clients get from your service? What are the specific and tangible deliverables?

Every service has a deliverable, right? When packaging a service into a product the deliverable should ideally be tangible. The more tangible you make the service and the deliverables the easier it will be to sell.

Examples of tangible service deliverables include: printed findings reports, documentation, Audios and video, websites, analyses and recommendations.

The goal is to be able to leave something behind as evidence that something was done and that the client received value.

In my experience printed reports are excellent “service delivery artifacts.” Here’s why.

People will often leave them on their desk for a long time. So as a side-benefit you also end up with an advertising billboard for your service.

Step 3: Create marketing, sales and training materials. These materials serve two purposes. They give additional substance to your service product, making it “feel” tangible. Part of these materials should be pricing guidelines for the main product as well as any add-ons.

Your materials are also tools for your sales force to present the product and ultimately close business.

Effective marketing materials are brochures, Service Product Descriptions, websites and samples of any physical deliverables.

One hidden benefit of productizing services

Try this if you’ve ever pondered whether a new service will be successful.

Prototype the new service on paper first. Here’s what I mean.

Go through the process we just discussed above with the service your contemplating. In every step PRETEND the product is real and available now.

At the end of the process you’ll have materials to test the viability of the service.

Just create a direct mail letter to existing customers and prospects announcing a new service to be available very soon. Feedback from the mailings should help determine if the service makes sense to proceed with.

This approach is clearly less risky than taking a “build it and they will come” approach. Agreed?

Summary:

Turning your technology (or any other) service into an easy to sell product takes only 3 steps. And this process also serves as a risk-free testing group for services you consider to offer too.

Using this process could be your secret weapon to services selling success.

Treasure trove of recession-defying selling secrets
discovered in Saturday morning cartoon show

As a kid Saturday mornings had a very strict ritual – a cartoon ritual.

From 6 o’clock in the morning to noon, my brother and I sat hypnotized in front of the TV. And we were only barely aware that anything existed beyond the glow of the gigantic 19-inch black and white tube.

Of course we each had our favorites. Mine were Rocky and Bullwinkle, Mr. Peabody and Sherman and – my most favorite – Aesop and Son.

Little did I know that I was actually getting sales training each Saturday morning throughout these formative years.

Subliminal sales training?

I mention one of my favorites cartoons was Aesop and Son. It was an adaptation of classic Aesop’s Fables except it always had a comical twist.

Each story takes a kids-eye view of one of Aesop’s famous fables, including the moral at the end. What a sneaky way for our parents to tech us values!

Much later in life I rediscovered these lost classics (the fables, not the cartoons) and recognized their value in selling.

Here’s what I mean.

The Fable Factor: Become a philosopher salesman

Aesop is about as deep into philosophy as I can go. Each of his fables is pretty short with a really hard-hitting moral at the end.

My most valuable discovery was the realization that Aesop’s fables could actually improve my selling. Dramatically!

These are just a few of the selling benefits bestowed upon me:

Five specific examples of Aesop’s selling genius

Aesop compiled hundreds of fables. I’ll spare the actual fable and pick a few morals and show how I’ve applied them to my selling.

Of course you may take away something different for a given moral – and that is okay.

1.  A person is known by the company he keeps, or - (Birds of a feather flock together). It’s important to work for a company with integrity and a good reputation – and to maintain your own good reputation. Do not compromise yourself for any one sale – it’s not worth it in the long run.

2.  Promises may get friends, but it’s performances that keep them. Aesop said this in a couple of different ways. Essentially I take this to mean “Talk is Cheap, Walk the Walk, etc).Often we want please a client and so we tell him/her what we think they want to hear. However, if we can’t deliver the client becomes angry or disappointed and we become just another salesperson.Don’t unrealistically oversell yourself, your product or your company – ever.

3.  Do not count your chickens before they are hatched. It’s not a sale until you get an order AND the client has paid his bill. Do not ever let up on the project or the client until the project is over.Meaning, make sure that the customer is delighted and the bills get paid. After all, you do earn a commission, right?

4.  We may view ourselves of more consequence than others view us. Loving your product is a must – if you don’t believe in what you’re selling it’s really hard – to be successful.But remember to sell the benefits of the product in terms of the customers’ needs. It’s gotta pass the “so what” test. After you’re done presenting, if the customer says (out loud or to himself) “so what” – you’re sunk.This may mean you’ve sold features rather than the benefits. So get back in there!

5.  Those who seek to please everybody please nobody. Figure out your niche or specialization – for yourself and your product – and become an expert. Niche specialists and niche product (the more tightly focused the better) sell for higher margins and have less price sensitivity.

The moral of THIS Story …

There are valuable sales, business and life lessons to be learned in unexpected places. All that is required is an open mind and a desire to learn.

In a recession businesspeople still NEED to buy things. Though WHAT and HOW they buy changes.

Here’s what I mean.

Throughout the recession of the 1980′s I was a salesperson at the #2 computer maker in the world. It was a time when businesses were buying fewer large computer systems.

One day the VP of Sales revealed the secret to beating the sales doldrums in a recession. He told us to start selling our customers belts and ties.

Belts and ties?

He went on to explain…

In lean times people cut back on spending for business wardrobes. Instead of buying new suits they’re forced to make do with what they already owned.

But they still had to look good when they calling on customers.

The solution: buy new belts and ties (or scarves). These accessories make their older suits appear like completely new outfits.

This story is just a metaphor of course.

He went on to explain that “belt and ties” in the technology industry were add-ons and upgrades.

Can’t sell a new computer system? Then sell more memory, a CPU upgrade or additional storage. Or better yet, offer new services to ease the burden of reduced staff and increased workloads.

The point our Sales VP was making, the world doesn’t stop completely – even in a recession. It does require that we work hard solve the customers problems more creatively.

Helping your clients NOW – in every way possible – will earn you their undisputed loyalty.

And who do you think they’re gonna call when things return to normal?

So what are the belts and ties in your industry? Figure this out and you and your customers will do just fine – even in the downturn.

Happy selling.