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Consequences Sell!
There are several very good axioms in marketing, some of which
you already know, some of which I am betting that you don’t.
And there are some axioms you know which are just flat wrong.
It is misknowledge. You have heard of misinformation; well, this is misknowledge. Kind of like, at one time everyone believed
that the earth was flat. It was not flat, of course, but everyone had
some misknowledge. Even today, there are people who
believe that going out without a coat in the winter time will
give you a cold. Even though it has been proven over and
over in medical study after medical study that all you get is
chilly, people still believe that you can catch a cold be being
cold. It is just not the case.
The same is true of
marketing
and advertising. Such as: "The customer is always right."
No one is always right. Sometimes customers can be
completely unreasonable, which does not put them on the side of
being right one hundred percent of the time. I think you
probably already know these, so allow me to use those quick
examples to set up this axiom. Consequences Sell!
Always sell consequences over savings! Customers will
always choose to not lose something rather than to save
something. This is an important marketing principal and
one that is very frequently misunderstood.
Marketing the consequence of not using your product or service,
will in the long run, bring in significantly more business than
emphasizing the savings of using your products. Here are a
couple of real world examples of what I am talking about.
Both of these were the subjects of some intense marketing
studies and proved this little known principle.
A
storm windows company launched two rather remarkable marketing
campaigns, featuring the exact same products, but under
different brand names.
The first campaign was the traditional:
Save $2.00 a day on your energy
bills by installing our double pane energy efficient windows in
your home. They had modest returns on their effort.
The second campaign, which ran almost
simultaneously with the first one but under a different brand
name, offered the following consequence type approach:
Stop wasting $730.00 a year
of your hard earned money! Install our energy efficient
windows today and keep your money in your pocket!
Sales with this approach nearly tripled what the traditional
‘Save’ campaign did.
Remember I said a few moments ago, that customers will always
choose to not lose something rather than to save something.
A big reason this is true is because customers are, for the most
part, savvy enough to realize that in order to save money they
have to spend money first. Such as: "Save $3 when you buy
today!" Or "Save 10%!" Yes, you can save money, but
you have to spend money first, and that is an option that the
customer has, whether to spend $25, in order to save $2.50.
But with consequence selling, you are simply pointing out that
the customer is already spending the money, they will simply be
spending less once they buy your product.
Every benefit of every product can be shown with a dollar amount
loss, or the consequence of going without the solutions that you
offer. It is always more effective to show the customer
the consequence of going without, than trying to show the
savings.
And lastly, always price to value. Customer do not buy
products, they buy the benefits they get from the products.
So make sure to price your product or service to the value received.
Remember the story of Senor Picasso doing the drawing for the
woman at the side walk café in Paris? He priced to value.
After all, he was selling a genuine Picasso. Not some
street artist here. It is the same with you and your
products. Price to value and be sure the value meets the
price when marketing the consequence and you will get far
greater results. |