We all want to increase sales, but getting new customers can be a challenge. In fact, this was the number 1 challenge readers of this newsletter listed.
And it’s no wonder, according to a Marketing Sherpa study if you have 100 opportunities only 4 are likely to move from “sales ready lead” to “qualified prospect” to an actual customer.
And those numbers are based on “averages”. If you have a more technical sale (which many of you do) requiring a higher quantity of information transfer where the quality of that information, the timing of the delivery and the method/quality of that delivery can all cause your actual average to be lower.
But there is some good news. One proven way to increase conversion rates is to get the prospect to seek YOU out.
How much do you love it when a customer or prospect comes to you with what basically amounts to “I need help…”? If you’re like me, you LOVE it LOVE it LOVE it!
WHY do we love it?
Because if they were willing to ask for our help:
- They know enough about what we do that they think we have the expertise to help; and
- That they, at some level, already trust us.
Which means the normal conversion rates don’t apply — we have a much higher likelihood of winning this business.
- If you didn’t trust someone, would you ask them for help?
- If you didn’t think someone could help you, or thought they were an idiot, would you ask them for help?
No! So if someone does ask you for help. This is a really good thing.
Here’s the formula we’ve been using to elicit the “I need help” response:
- Shine a light on the problem. (there needs to be a message to market match)
- Verify or validate the problem.
- Show that it’s even worse than that. (don’t exaggerate, be truthful in all of this)
- Provide the light at the end of the tunnel.
And yes, for the Theory of Constraints fans out there you’ll notice that this is based partially on the TOC Buy-in process. Step one would be equivalent to “Agree on the Problem” and step four would be equivalent to “Agree on the Direction of the Solution”.
Let’s go through this with an example. Let’s say that I sell tooling for machine shops. And shops that use my tooling can reduce their setup times typically by 25%.
- What problems do your customers or prospects have, that are significant, but that you can help solve?
They have long setup times. So long that a fair amount of their production capacity is spent setting up machines. Capacity that could be used for shipping more jobs.
- How can you verify or validate this problem?
The National Institute of Standards and Technology (NIST.gov) reports that US manufacturers waste 25% to 65% of their capacity being “ineffective” . That’s a large portion of US manufacturing capacity that is not productive.
[side note: I had to go find this statistic, but it wasn’t hard to do. And look at the power of having a government agency showing that what I’m writing about is important.]
- How is it even worse than that for your particular target market? And custom machine shops are undoubtedly at the highest end of that spectrum. Machine shops rarely have the luxury of staying in one setup for any length of time. The nature of a custom business is small runs that don’t often repeat.
- What kind of hope is there for solving this problem?
But, a number of custom machine shops are turning these statistics around using tooling that’s designed for quick set ups. This tooling costs the same as traditional tooling, the only catch is that you will need to do a little up front work with your tooling supplier.
Now, I do not sell tooling. But if I did, I could use this information in my marketing to get existing customers and prospects to respond and fairly quickly ask for help designing tooling that will reduce their setups. Will everyone? No, of course not. But the best ones will (the ones that really relate to the problem) and they are much more likely to turn into a sale.
The response you’re after could be to get them to download a report on using tooling to reduce step up times or to sign up for a webinar or to sign up for a consultation with you (depends on your sales process and what you’re selling).
We are closing over 79% of the people who contact us from this type of marketing. That means 79 sales out of 100 instead of 4. And selling Velocity Scheduling System, Velocity Pricing System, and Mafia Offer Boot Camp is not only a technical sale, it’s a counter intuitive one. So before you go dismissing this technique, convinced it won’t work for you – I suggest you give it a try.
If YOU generated your marketing materials or wrote your newsletter and articles with the objective of getting prospects to ask for help – would you get a few more quality leads?
If you wanted help applying this concept to your business — getting more customers and prospects to contact YOU – wouldn’t you contact me? ?
Wishing you success,