Leveraging Customer Referrals

Post Image - Compelling Offers

Written by Stacey McKibbin (staceymckibbin@actioncoach.com)

So you want to write an ad that gets suspected customers to take action to call or come in to your place of business, do you? Not happy with the hundreds or thousands of dollars you’re “investing” in your marketing activities with little to no response? Well, you’ve come to the right place!

As some of you may or may not know, there are 3 steps to creating powerful ads.

Step 1: Identify clearly who your target market is.

Step 2: Create a compelling offer, and

Step 3: Write the copy.

We are going to focus on Step 2 this time, creating a compelling offer.

Before touching on the offer component, I would like to briefly bring our attention back to Step #1…Clearly understanding your target market. This is a very critical step to ensuring your offer is of value. Why? Because different people find value in different things. For instance, Volvo and Mercedes customers are generally not the same. Meaning, they target two different types of drivers. Both sets of customers drive cars, however, the Volvo consumer values safety and security; whereas, the Mercedes consumer values innovation, excellence and automobile styling. You wouldn’t use the same ad to sell both cars…you’d instead have the Volvo ad focus on demonstrating its latest in safety features and you’d have the Mercedes ad tout its latest innovations in styling and gadgetry so as to have the greatest “appeal” to their target market. Make sense? Great…now let’s move on to creating that powerful offer.

After you’ve gotten very clear on WHO your target audience is for this offer, the second thing you need to determine what kind of offer you’d like to make. There are 7 different types to consider:

1. The Added Value with Soft Dollar cost. This means the value is more “perceived” than actual. Another way of saying it, the value is “in the eye of the beholder” rather than being an actual “hard” cost that is added to your expenses. This is referring to products, services or extras that you combine with your regular, standard product to make it more attractive and appealing to your target audience.

2. The Package Offer. Create a unique offering in the marketplace by bundling your products and services together. This will enable you to be able to offer your regular product or service at a higher price because of the additional items included. (This is a great strategy for increasing your average dollar sale too!) A great example of this is when cable companies bundle their services. Buy the cable and internet, get your phone for free or at a discounted rate.

3. Discounts vs Bonus Offers. If there’s one thing we know, it’s that discounting not only erodes your profit margin but also the quality of future shoppers. Once we start the discounting, we begin attracting price sensitive customers who have very little to no loyalty to one vendor. They simply hop around from deal to deal. So rather than attracting that kind of customer, instead offer bonuses. 2 for 1 sales, buy one get one free sales, buy 9 get the 10^th free, spend $100 save $10 on your next purchase. I know you may be thinking this is semantics, and it largely is. But think about it, in the discounting scenario, you are giving money away off of the first and only purchase. In the bonus scenario, you are conditioning them to pay full price to receive their special deal.

4. Valued at Offers. If your offer is to give away a free “consultation” or other free introductory service/product, be sure to add a dollar value amount. For example, come check out our free workshop to learn the top 5 profit strategies to build any business. A $79 value. Or a free 1 hour consultation, valued at $395. The main intent here is to position your time, product and service a much more than a free giveaway. (Be careful with this one, as most consumers have been conditioned to believe that ‘free consultation’ means permission to sell to them for an hour. THIS IS NOT THE CASE! Be sure to use this time to help them solve their problems and then watch as they ask you how to get more involved with your service.)

5. Time Limited Offers. Creating urgency is important to getting people to take action NOW. Not later…NOW. I’m sure you’ve received the offer from your local dentist for a free cleaning that can be used any time this year. You may even hold onto it, but when do you use it? if you’re like most, at the last possible moment! So place a time limit on your offer to increase the immediate response rate. Seats are limited, For a limited time only, While supplies last, and so on.

6. Guarantee Offers. Why offer a guarantee? 2 reasons: 1.) It takes the fear out of buying and 2.) It is a differentiator from your competitors. Not sure what to guarantee? Ask your customers this single question: “What frustrates you most when dealing with my industry?” (Not my company, my industry.) This will tell you what challenges are most frequently experienced so you can write a guarantee to mitigate it. For example, graphic designers have a bad rap for not returning calls and being hard to get a hold of once you’ve started working together. So write the headline, “Tired of your graphic designers always disappearing when you need them most? We guarantee to return all calls within 24hours or we’ll take $100 off your next bill.”

7. Free Offers. I don’t see this strategy utilized all that often, which is a great reason in and of itself to use it. Give something away free of charge with no strings attached. Customers will have to “see it to believe it” and they will tell many other folks about it! Especially if it’s something they really like. This is an awesome offer for restaurants and other businesses who have specialty or custom items that can easily be given away to demonstrate quality. Give away the chocolate éclair that everyone raves about or the dessert pizza that’s to die for. Once they are in the door, turn up the charm and make sure you capture their information so you can invite them back! Surprisingly, this type of offer can dramatically reduce your “cost per lead” because of the effectiveness getting people in the door.

Some examples of strong vs weak offers:

Strong Offers:

Free haircut – for a hair dresser looking to increase his/her database
2 Steak Dinners and 2 Glasses of Wine for $50. – a restaurant recruiting members for their VIP Club
Buy 10 sandwiches, get the 11^th free. – a deli looking to increase the number of times 1 customer comes back to them.
Bring a friend, get $5 towards your next class – a gym or dance studio looking to increase their database
Complimentary Design Consultation – a custom interior designer or custom wood worker looking to increase leads.

Weak Offers:

10% off – this is not enough to compel someone to take action.
Buy 10 get 11^th half off. – not much of an incentive.
90% Off for new Clients – This will alienate your current client base and may cause you churn thru prospects (ie GroupOn)

Once you’ve selected the type of offer you’d like to use, then you can move on to writing the copy of the ad itself. Be sure to test and measure the ad before sending it to print. Share it with clients you trust, strategic partners, your business coach, and any other people you believe are in the target market you’re trying to talk to. Remember, the reason why people come and try your service, is because you are serving a need or want what they have. So speak to the emotion of “what’s in it for THEM” to do business with you.

And remember, a great rule of thumb is the “Would I Respond?” (WIR) question. Ask yourself, would I respond to this offer? If the answer is no, then time to hit the drawing board once again.

Here’s to your success!

Stacey McKibbin

ActionCOACH
The World’s #1 Business Coaching Firm
O: 858.836.1900
M: 619.405.0093
F: 619.342.8556
www.actioncoachsandiego.com

11 Close to Home, but Far from Ordinary Places to Meet with Clients

Meeting clients in business is natural, but where one meets can be, too! Here are some suggestions for getting out of your “space” and into places that allow you and your clients some breathing room.
Give them a Choice
Forget meeting in the office and hiding behind a desk. Instead, offer your clients a choice of unusual meeting places. You might learn something about them in their selection!
1. Let’s Walk
Meeting at a park or lake, or recreation area that has a walking path might be just the place to stretch the minds as well as the legs. It’s outdoors, natural, and doesn’t cost an arm and a leg. If your walk is around water; water is calming and allows you both room to think.
2. Bookstore
Many bookstores have cafes and all bookstores have resources! Talk about a favorite book and let the conversation lead you to a deeper connection. Turn over a new leaf.
3. A Charity Event
Feel good about helping out a charity. Remember, your client is choosing, so if he or she has chosen this venue to meet, it tells you a lot about them, where their heart is, and lets you both do something for the community while working on something together.
4. Golf (or any sporting event, but golf has a quieter arena in which to share ideas than, say, a noisy baseball game)
If you play, great! If you don’t, go along for the ride. Caddy! Get out and exercise your minds while building the relationship.
5. A Health Bar
Pick a natural and healthy setting that reflects your mindset. Health bars often have waterfalls and a calming atmosphere. De-stress while stressing a strong connection.
6. A musical event
If your client chooses this option, you’ll learn a lot about the style of music he or she likes and it will give you something to reflect on at future meetings.
7. A museum
Like a library, a museum has a certain air about it that lends itself to thoughtful contemplation. View the art, express opinions, and lace in business.
8. Fish
Whether the client has fished before or never fished in his or her life, fishing is a great way to relax, get outdoors, and a great place to share ideas. Even if the client is just fishing for compliments, who cares! Have fun. Make it reel.
9. Hike
Tell your client to take a hike – only mean it in a different way. Get out in the woods. Connect with nature. Let ideas run free. You’ve got a captive audience.
10. Library
Shhhh. Guess what. Most libraries have GREAT meeting rooms that are private, quiet, and away from interruptions. Libraries are another great place (besides bookstores) to talk books, resources, and to get down to business.
11. Your place of residence
An invitation to one’s home is very personal and says to the client, I know you, trust you, and like you. The client who accepts or chooses this option feels the same.
Make it Meaningful!
Wherever you and your client decide to meet, meeting outside the office gives you and the client a good look at each other. And with no office distractions, you’ll feel more comfortable and engaged. It is not always possible to meet outside the office—after all, convenience is a temptress—but if and when the opportunity presents itself, get outside your “box” and engage. Make the encounter meaningful for both of you. Important decisions rest on the connection you make. Where you and your client decide to hold the meeting will tell each of you a lot about the other, and isn’t that what building relationships is all about?