Making a sale is the crowning moment in any business. Nothing happens in business until the cash register rings.
Ask any business owner and they’ll tell you that sales don’t just magically happen. It takes a combination of several elements to take place at the right time, in the right way to make someone eventually whip out their money and buy your product or service.
Each of the following elements play an important factor in making a sale…
1. Your Prospect Must Know You, Like You, and Trust You
Can you think of the last time you purchased something from a totally new business that you were completely unfamiliar with? Or have you purchased something recently from a business that had previously treated you poorly? Probably not. Most people buy from businesses that they’re familiar with and with which they’ve had a relatively good experience.
Good experiences build trust, which is a key ingredient to getting people to buy from you. A few ways to do this are…
1. Give away something to introduce your product or service.
2. Give full disclosure on your company and its principals.
3. Be easy to contact in order to answer prospect’s questions.
Just this morning I received a call from a would-be online buyer of one my products. He mentioned that he rarely buys online because of all the horror stories and scams he’d heard about, which was the purpose of his call. He just wanted to make sure I was a real person with a real business.
2. The Perceived Value of Your Benefits Must Exceed the PRICE You Are Asking for Your Product or Service
The results from every focus group study I’ve ever done had buyer’s pointing to price as their most important criteria when determining whether to buy a product or service. But when I actually examined people’s purchasing habits, price always came in third or fourth down the criteria list – or even lower!
Why the discrepancy? Because when it comes down to it, people are more interested in getting their needs and wants met, than the price they have to pay. But there is a price/value threshold that if exceeded, sales will be begin to decrease.
As a business owner your responsibility is to increase the perceived benefit of your product or service so that it exceeds the price people have to pay to get it. Some ways to increase the perceived value of your product or service are…
1. Adding low cost high value premiums.
2. Creating a compelling unique selling proposition.
3. Modify your product or service to solve a specific niche problem.
4. Use specific details to explain the value of your benefits.
I often get comments from business managers that say, “Our competitors are undercutting us on price. There’s nothing we can do.” My response to that comment is…it’s your fault! If your prospects are choosing to buy from your competitors then you haven’t done a good enough job establishing the unique value of your product or service.
If you did, they would be buying from YOU regardless of what you competition is doing. Once the perceived value of your product or service exceeds the cost, you’ll get the sale.
3. The Perceived Benefit of Your Product or Service Must Exceed the Perceived RISK of Buying from You
There is always a perceived risk in any product or service that is sold. Consumers often ask themselves questions such as, “How do I know it will work?” or “What happens if I’m not happy with it?” or “What if I’m not getting the best deal?” before they buy.
These are all valid questions that are subconsciously posed in the backs of people’s minds when they consider a purchase and should be addressed in the offer for your product or service before you expect your prospect to buy from you.
The more you reduce the risk in your offer, the more attractive your offer becomes. You can reduce the buying risk to your prospect by…
1. Strengthening your guarantees and warranties.
2. Including testimonials and case studies from people and businesses that have successfully used your product or service.
3. Include a “frequently asked questions” in your marketing materials.
The key is to anticipate possible objections and respond to them in your offer.
4. Follow Up With Your Prospects
Like it or not, no matter how good your offer is, there will be a large percentage of people who will not buy. In many cases, it’s not because they didn’t want your product or service or you didn’t present a compelling offer. The fact is, people are busy. There are lots of things competing for their attention. Don’t take it personally.
When people don’t take advantage of your first offer, it’s important to keep trying. You’d be surprised at how many people respond on the second or third attempt. Perhaps you might even progressively sweeten the offer.
You should also employ a stay-in-contact program. My wife enjoys quilting and each month receives a newsletter from the quilt shop she buys from. The newsletter is fun, educational, newsy, and contains special offers. And as a member of their monthly quilting club, she enjoys special discounts and educational opportunities. It’s no wonder she raves about that quilt shop.
Converting prospects into cash paying customer isn’t always easy, but if you follow the four steps I’ve outlined it will become infinitely easier. In fact, I would dare say that you would be ahead of 95% of your competition.
How to Turn Prospects Into Paying Customers - To learn more about this author, visit David Frey's Website.
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David Frey
(Visit David's Website)
David Frey is the author of the
best-selling manual, "The Small Business
Marketing Bible" and the Senior Editor of
the "Small Business Marketing Best
Practices Newsletter
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Man, do I get tired of the question posed in the title of this post.
