Why Prospects Don't Buy

 by Rich Harshaw

Marketing & Advertising - 66 Strategies: Y2M TIP 22

Understand "The Educational Spectrum" and You'll Increase Your Sales

 Did you ever notice that when you're in the market to buy a car, you notice almost every advertisement for cars on the TV, on the radio, and in the paper? You even notice all those cars with prices shoe polished on the windshield in supermarket parking lots. You buy Consumer Reports, Auto Trader, and you read classified ads. You become the expert on whatever car it is that you're interested in.

 After you scout the entire marketplace for just the right balance of price, condition, mileage, options, etc., you finally buy the car. And chances are you will be convinced that you got THE BEST DEAL available to mankind. You probably even brag about the deal to your friends. "This baby's only got 17k miles on it...but I picked it up for about what everyone else wanted for the same car with twice as many miles." What a deal.

 What about when you're not in the market to buy a car? You don't notice any of that stuff. Let's assume you're not in the market for a new Hyundai right now. I'll bet you haven't seen or heard a single ad for Hyundai lately. You might not even be aware that Hyundai still sells cars in America! Mentally validate this point: All prospects you contact in your marketing efforts will have different levels of interest and understanding about your product based on their circumstances.

 Don't Fish With A Spear....Fish With A BIG Net!!!

 I was talking to a client several months ago that used telemarketing as a major source of driving in new business. He wanted to increase his telemarketers' closing ratio, so he came to me for ideas. After reviewing the pitch they were using, I concluded that it was fine...no major changes needed to happen. Frustrated, the client threw up his hands and said, "That's it, then? I'm getting all the possible sales? I sure thought that my product had a lot bigger market potential than the results we're seeing now."

 So I asked him the same question I always ask to every client: "What are you doing to follow up on the prospects that 1) don't buy now and 2) those that aren't interested?" The response was equally as familiar. He said that they put those that don't buy now in a database and call them every 30 days for 3 months...at which point they get dropped if they don't buy.

 As for those that just aren't interested..."Nothing. They're not interested! Why would I waste time on them? There's an old saying that you should spend time polishing cherries, not pits!" Let me add one comment: my client's average customer was worth thousands of dollars in profit per transaction. Just improving the telemarketer's pitch was not where the effort needed to be spent.

 What my client needed to understand was why customers were not buying....why they were saying no. The answer is what we call the "educational spectrum." There is an educational process from the moment a prospect begins thinking about buying your product or service to the point when he actually puts out his hard earned cash.

 Most marketers concentrate 99% of their efforts on finding and selling prospects that are at the very end of the spectrum and ready to buy right now. These are what we call ripe cherries (see issue #64). You can attract them to your business by placing ads in places where hot prospects will be going to do their comparison shopping. Just remember that all of your competitors will be there with their buckets looking for big, fat, red cherries too.

 Telemarketing and direct mail are the worst methods of finding hot prospects. It's like fishing with a spear. You look and look and look for that one prospect that just happens to be to the end of the educational spectrum--one who just happens to be ready to buy. Can you imagine trying to sell your car by telemarketing? "Hello, my name is Bob. I've got a beautiful 94' Cadillac STS for sale. Low mileage. Great condition. Only $27,500. Have you been thinking about a Cadillac?" Now that would be an exercise in futility!

 I know what you're thinking now. "But lots of people use telemarketing and direct mail very successfully. It can't be that bad, can it?" I just said it was the worst way to find hot prospects. These two marketing methods are, however, highly recommended for another reason: you can target your market very effectively. In other words, you can choose a list of people or companies that are likely to be current users or potential users of what you're selling.

 Here's how to weave your telemarketers' efforts into a big net - keeping in mind the idea of the educational spectrum. Use this telemarketing pitch (for business to business): "Hi, this is Rich over at Widget & Digits. We've got a special on Widgets this week, but I know you probably hate to talk to telemarketers. So if you don't mind, I'll just fax you over some information real quick so you can get back to what you were doing." Use this pitch to gather the names and fax numbers of every single possible prospect you can think of.

 Now you can monopolize your marketplace. Don't worry about those who aren't interested for now. Your job is to periodically send these people faxes that do what? Educate. Over the course of time, you will get enough fish in your net that you'll find plenty of keepers. The key is to consistently keep feeding them new and relevant information.

 Y2M Quick Tip

 The Master Letter

Did you know that a powerfully written sales letter is your most powerful marketing tool even if you never actually send it out to a single prospect? It will be if you follow a few simple steps to create what we call a Master Letter.

 A Master Letter is a perfectly written letter that contains your most powerful sales pitch - complete with a headline, proposition, supportive information, and price - all compressed into one single page of dynamite. The master letter does everything a good salesperson does - it presents a complete selling proposition and asks for the order (or inquiry). If you mail your master letter to a list of qualified prospects, it will most certainly produce results.

 But, like I said earlier, your master letter is your most powerful sales tool even if you don't send it to anyone! How can this be so? Since the letter contains all the components of a great sales pitch, you can then use the letter to create other types of advertising. For instance, if you want to run a newspaper ad, just condense the master letter into a format appropriate for that medium. The information does not change at all - just the format.

 The master letter is the key to systematizing your marketing because once you have the master letter, you don't have to decide over and over what to put into your advertising. It's already there.

Legal Information Disclaimer | Terms Of Service | Earnings Disclaimer | Privacy Notice