Fear and the service sale
25 June, 2007
By Robin Robins
Part 1 of 2
You can't see them. You can't touch them. And most of the time, we don't even know if we got a good one when it's delivered. What is it? A service.
Services are invisible, intangible things that we all spend a HUGE amount of money on, both in business and in our private lives.
In this country, there is a revolution going on in the way businesses operate. Almost every single company is now a service based business.
Even traditional manufacturing companies that produce tangible goods are quickly finding out that, in essence, they ARE in the service business after all.
For example, industrial giant General Electric generates over 40% of its revenue from services. Starbucks, presumably a coffee company, does not really make coffee; they only package, brew, and sell it. Starbucks is a service company. Software companies create and sell software, but a critical part of that manufactured product is the services of documentation, training, support, and upgrades.
Computer resellers who focus on product sales are now being FORCED into a service model in order to stay alive. Anybody can buy a computer anywhere. Computer hardware is a commodity, and like all commodities, it's shopped mainly by price. What consumers want now is help choosing the right products to support their core business functions, installation, set up, and maintenance. They want service, and that's what they are willing to pay for.
The problem is, most computer resellers and manufacturers are stuck in a product marketing model because that's all they know.
But marketing a product is far different than marketing a service. A product is tangible. You can see it, touch it, taste it, or smell it. You can highlight its characteristics. You can hear the hum of the engine or see the speed of the machine.
A service is intangible. It doesn't even exist when you buy it.
When you buy a service you are actually buying trust; you trust the company or individual you are hiring will do the right thing and deliver what you are expecting.
That's the single biggest challenge with selling services.
You are trying to convince a person to trust you to deliver some type of work or result sight unseen. As if that isn't hard enough, we live in a world chock full of shady politicians, scams, spin doctors, rip off artists, and bad service companies that only add to the challenge.
That's why most companies choose a computer service provider based on word of mouth referrals. At least if you didn't screw Joe over, maybe there's a good chance you won't screw me.
In addition, your average customer is completely techno-phobic which just adds to their fear and distrust. If you were selling a service they were familiar with and understood like coffee or a cleaning service, they would feel safer.
They could tell whether or not you did a good job. They know what the job entails. Ultimately, they could taste the coffee or see the cleanliness and know whether or not it was up to par.
Trusting someone to do the right thing or to give you the best advice when you haven't a clue what that is becomes an anxiety filled decision.
This all adds up to a very fearful, very timid consumer who doesn't believe a word you say and holds you guilty until proven innocent.
In many cases, the prospect may even feel it's safer to do NOTHING rather that trust your recommendations even when they desperately need the solution you are proposing.
So what is a service company supposed to do? You take the fear out of the buying decision.
More specifically, you have to go to work on building that new prospect's confidence to the point where they feel as though they cannot lose by hiring you.
If you can do this effectively, another really magical thing happens: you can easily charge more for your products and services.
Most customers would be willing to PAY MORE for a service or a product they didn't have to worry about than a cheaper service that they were unsure of. This is true in practically every business or industry.
Robin Robins is President of TechnologyMarketingToolKit.com. With more than 14 years experience in direct sales and marketing, which include business to business and business to consumer sales Robin Robins runs an elite sales and marketing coaching program for computer resellers, solution providers, and technology service companies focused on helping them to significantly increase their revenue and profits while reducing the number of hours they work in their business. Author of the new e-book and marketing system called, "The Technology Marketing Tool Kit", she can be reached at http://www.technologymarketingtoolkit.com or e-mail your questions to ask@technologymarketingtoolkit.com.
Tuesday, June 26, 2007
FEAR AND THE SERVICE SALE
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Labels: internet marketing, home business customer service, marketing, service
Monday, June 25, 2007
Market America Distributor should learn how to use Seach Engine Optimization
SEO Firm to Bring Exposure to Market America-Special Report
ATLANTA, GA (May 31, 2007) -- Market America has been signed to the client roster of Medium Blue Search Engine Marketing, a firm based in Atlanta. Market America is an online retailer of a wide range of goods, from nutritional supplements to pet care products, and also provides opportunities for individuals to participate in its "UnFranchise® Business Development System."
The SEO firm will implement its proven search engine optimization techniques to bring new buyers to the Market America website. In addition, Market America will take advantage of the company's Online PR program, which involves the creation and distribution of targeted articles written by company experts as well as relevant and timely press releases in order to further raise the company's profile.
"We are very confident that we have chosen a solid partner that will help us increase the exposure of Market America, our high-quality products, and our UnFranchise System that is based on our One-to-One Marketing concept," said Marc Ashley, Chief Operating Officer. "We chose Medium Blue based on its respected status in the industry and on the superior customer service that it offers to all of its clients."
"We will be creating a comprehensive program that will not only increase traffic to the Market America site but also bring an influx of targeted buyers as well as people interested in becoming distributors of its line of products," said Scott Buresh, CEO of Medium Blue. "We look forward to enhancing the Market America website and to working with the company’s experts to promote Market America all over the world."
(Taken from Ariel Dumaran's Market America Portal)
http://www.marketamerica.com/xrism
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Labels: internet marketing, home business customer service
Friday, April 27, 2007
Jeff Mowatt's Identifying Customers needs
How not to plan your company's future: 5 common mistakes when identifying customer needs
26 April, 2007By Jeff Mowatt
When managers plan their business strategies, common sense dictates that these game-plans should be in line with customer needs. The first step in planning is therefore to identify customer preferences. Unfortunately, most conventional approaches to determining customer needs are flawed. Here are five of the most common methods used to gather customer opinions along with their drawbacks. Keep these often-made mistakes in mind when planning your business strategy.
Mistake #1 -- counting cash
One way to find out what customers think - indirectly at least - is to look at revenues. The assumption being that if revenues are increasing then customers must be happy. Dangerous. A repeat customer isn't necessarily loyal. Customers may come back more by default than desire. If that's the case, the moment your competitor finds a way to truly satisfy your customers, those repeat customers will abandon you. Or, if your team is providing support services to internal customers, you may be setting yourself up to be outsourced. So, even though your revenues may indicate that you have happy customers, unless you do the research, you are potentially vulnerable. Business leaders whose companies endure are those who do not just assume that customers are happy, they create the right systems to know it.
Mistake #2 -- counting complaints
Some managers assume that if they merely reduce the number of customer complaints, they are satisfying more customers. In reality, fewer complaints often mean that fewer customers are angry enough to complain. It doesn't necessarily mean that they are happy. When it comes to measuring complaints keep in mind your own experience when visiting a restaurant with mediocre service. It wasn't bad enough to complain. But, it wasn't good enough to bring you back. If the restaurant manager was only counting complaints as a measure of customer satisfaction, he or she'd be off track.
Mistake #3 -- trust focus groups
A popular method of collecting customer information is using focus groups. This is where a manager or consultant gathers a group of customers and asks their opinions. Consultants often like focus groups because the information looks scientific and they can charge a fee for conducting them. It's been my experience, however, that focus groups tell you a lot more about group-think than anything else. In virtually every focus group I've been asked to observe, opinion leaders in the group influence the responses of others. That alone renders focus groups practically useless in terms of finding out what individuals really think.
Mistake #4 -- paid phone surveys
The most promising way of identifying preferences is to have a one-on-one conversation with the customer. The problem is that the conventional approach to interviews receives miserably low response rates. Imagine you're at home one evening when the phone rings. An unfamiliar voice on the line says, "Hello Mr. or Mrs. So-and-so, we're conducting a survey on" -- You're thinking, "Not again," and end the conversation -- click.
As an alternative, rather than using standard telephone surveying, the manager of the company uses a resource I often recommend to my clients -- business students. Picture yourself again at home. The phone rings. When you answer, a youthful voice says, "Hi, I'm a business student at the local university. For my marketing class I'm doing a project where I'm conducting a survey on such and such." You find yourself saying, "OK, kid, let's make this quick." Response rates soar. Bonus - students work for the price of Kraft Dinner!
Mistake #5 -- trust high ratings
On a customer survey, you can ask, "Overall, are you satisfied with the service?" And you may get results that show that 96% said, "Yes." But be careful how you interpret those results. This is where many managers assume that they're getting an A+ score. Think of the question again; it asks if overall you are "satisfied." In other words, the survey is asking if the service is adequate. By responding "yes," customers are not saying that they were impressed or even pleased -- merely that they were satisfied. It doesn't mean they feel loyal. Imagine your sweetheart talking to a friend and describing you as being adequate. You'd probably see that as reason for concern! It certainly isn't reason to think you're getting an A+ performance rating. Yet, that's exactly what so many managers think when they see a 96% customer-satisfaction rating.
The lesson is that managers need to stop interpreting high percentages the way we did in high school. If you have a 98% customer-satisfaction rating you may still have serious problems in customer loyalty. According to marketing research expert, Dr. Mike Heffring, "It has been shown that it's the percentage of people who give you excellent or outstanding ratings (e.g., nine or ten on a ten-point scale) who matter. If you increase that percentage, then market share actually moves. If you don't, then you may feel better if the percent satisfied goes up but the impact is insignificant."
Identify what customers really think
In other words, when it comes to planning your corporate strategy, the focus becomes, What do managers need to do to shift customers from being "satisfied" to being "delighted"? Just make sure as you do this, that you also ask yourself if your current information is telling you what your customers really think.
This article is based on the critically acclaimed book, Becoming a Service Icon in 90 Minutes a Month by business strategist and international speaker Jeff Mowatt. To obtain your own copy of his book or to inquire about engaging Jeff for your team, visit www.jeffmowatt.com or call 1-800-JMowatt (566-9288). 26 April, 2007By Jeff Mowatt
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Labels: internet marketing, home business customer service
About Me
- Ariel Dumaran blogger
- Toronto, Ontario, Canada
- Very reserved, passionate, and understanding, and passive. Imaginative, creative,and forgiving
Learning How to Trade in Foreign Exchange (Forex)
FOREX Trading
The word FOREX is derived from the words Foreign Exchange and is the largest financial market in the world. FOREX is the the simultaneous buying of one currency and selling of another. Unlike many markets, the FX market is open 24 hours per day and has an estimated $1.2 trillion in turnover every day. This tremendous turnover is more than the combined turnover of the main worlds' stock markets on any given day. This tends to lead to a very liquid market and thus a desirable market to trade.
Unlike many other securities (any financial instrument that can be traded) the FX market does not have a fixed exchange. It is primarily traded through banks, brokers, dealers, financial institutions and private individuals.
Trades are executed through phone and increasingly through the Internet. It is only in the last few years that the smaller investor has been able to gain access to this market. Previously the large amounts of deposits required precluded the smaller investors. With the advent of the Internet and growing competition it is now easily within the reach of most investors.
Online Forex Trading
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