Presenting offers in three stages helps buyers make decisions. Always offer a good basic solution, a better solution and the best solution. When presented as 'Good-Better-Best' offers, behavioral studies show that buyers discount 'good' solutions as likely missing important value. The risk of loss is one of the most powerful influencers on buying decisions. The 'best' solutions are seen as more than what is needed and often viewed as wasteful. This mental calculus most often results in clients choosing the ‘better’ solution.
Monday, July 27, 2015
Monday, July 20, 2015
Business people evaluate decisions based on the return on investment. Showing an ROI requires you to monetize the value of the benefit. But sometimes the benefit is the avoidance of problems. How can you monetize the value of something that has not happened?
Use a dummy, made up situation to make your point. The process of walking through the potential savings helps prove the negative. If the likelihood of the situation occurring is strong, it will not be a stretch to get a client to assign a monetary value to that situation. For instance, if you charge $25,000 to develop an employee manual, you should be able to make up a reasonable story of a situation that could go wrong. Use this example to demonstrate how the training and policies developed in the manual can avoid the potential costs associated with not having the manual.
Monday, July 13, 2015
Promote yourself sparingly. Be real and genuine. Make sure the achievement you are promoting is significant and adds value to your client relationships. Don’t embellish. Strike the balance between sharing your accomplishments that clients should be interested in with 'wearing out your welcome' by adopting the client's point of view when deciding whether or not to promote an accomplishment. Do this by asking yourself, 'What value, benefit or new capabilities does this accomplishment convey to my clients?'. If you cannot come up with one way in which a client would benefit from this information, it is most likely just empty self promotion. In this case, think hard about what impression this creates among the recipients. If you find one, make sure you include an explanation of the benefit to your clients in your announcement.
Monday, July 6, 2015
It's tempting to open a conversation with a prospective client with a tale of your epic vacation to Tahiti. You had a wonderful time, the weather was beautiful and Tahiti is an exotic place few people get to enjoy. Who wouldn't enjoy hearing about your epic vacation?
It turns out, you will feel worse off after having told the story because people will feel less like you. I've noticed this phenomenon in my own sales presentations but didn't understand why this occurred. Epic tales (a large purchase or exotic vacation, for instance) are extraordinary. To be extraordinary is to be different, and social interaction is grounded in similarities. It runs counter to what you would expect, but social research backs this idea up. Participants in a recent study thought that sharing their extraordinary experiences would make for an engaging conversation. But in fact, the opposite happened as the people being told the extraordinary story felt more distant and less able to relate to them.