As a standalone medium, traditional advertising has had its day.
Not because the media has changed, but because the way consumers purchase has changed dramatically over the last ten years. Because of the advent of 4G, mobiles, tablets, Google and Facebook, people are now searching for, discussing and researching products and services way before they are ready to buy. Traditional advertising was all about preaching to the converted. In this modern social-digital world consumers are preaching and converting themselves!
The Behavioural Selling Model™ we implement for Clients aligns with the paradigm shift in consumer buying habits…
Supporting our model are a number of key human and behavioural triggers that, when implemented, can have a major difference to the returns you will see from your marketing activity. The ones that have the biggest impact we call Performance Enhancers. Some of our favourites are below –
FREEMIUM: Give your product or service away for FREE
Marketing is simply about relationship development and building trust in your product or service to the extent that your customer is comfortable enough to swap their hard-earned cash for them. The quickest way to do this is via sampling opportunities where you take all the initial risk.
Some of the biggest barriers to purchase include fear of loss, mistake making, security, and change itself. By adding a ‘free’ element to your initial customer offering, you will see up to a 5X increase in the number of potential customers you can generate.
COMPOUND SELLING: Only ever analyse your ROI by marginal net worth
Welcome to the bigger picture. Your marketing spend must always be evaluated based upon the initial revenue generated AND the potential income during the purchasing lifetime of your customer; Marginal Net Worth. Just like with compound interest on savings the real profit is in the back end. Emotional triggers such as procrastination, consistency bias and a desire for self-belonging means customers are likely to return over and over again if you can meet their emotional needs.
Consider acquiring customers initially at break-even or even at a loss! Understanding marginal net worth allows you to out-market, outperform and outsell your competitors.
MEMBERSHIP ECONOMY: Create ‘repeat buying’ platforms within your business
Your perfect customer evolution should be to convert a prospect to a customer, through to a fan, and finally to a ‘member’: someone who spends a set amount with you, repeatedly, over and over again. ‘Membership’ / Repeat Payment Platforms will allow your business to scale quickly across all your customer demographics and additionally tap into the millennial mind set.
To understand the full economics of a Repeat Payment Platform, think Amazon Prime, Denplan, gym membership, Netflix and Spotify.
PREMIUM PRICING: Add layered pricing strategies across your business
All customers are not created equal. Marketed to correctly, 10%-20% of your existing customers will be more than happy to purchase from you at up to 25% of your current pricing. Between 1-5% would gladly spend up to 10 times what they are currently spending. Premium pricing is about understanding the value in a purchase, it’s not about the product itself – it’s about the status it provides, and the emotional attachment made to it.
Think the hotel penthouse and Virgin’s Upper Class.
RISK REVERSAL: Eliminate all barriers to purchase
Fear is the biggest obstacle your customers face when looking to purchase from you: fear of appearing foolish, fear of making a mistake, fear of wasting money. Remove these fears and your sales will escalate immediately. There are four key risk reversal strategies that you can choose from that can be implemented in your business almost immediately.
Harness the power of Behavioural Selling Strategies™
If you’d like to discuss further how you could blend a mix of behavioural psychology, digital marketing strategy and software technology to deliver similar results for your business we’d love to talk…