Another article from PersuasionTheory.com. You can find the original article here: The 3 Ways To Increase Revenue In Your Business

You work hard to move a new customer into your pipeline. You network. Maybe you pay for advertising. You work for links to your website. Anything to get those precious people into your sales funnel. Anything to make sales. Anything to give you the opportunity to help your customer and help yourself in the process.

You want to increase revenue without increasing your expenses. There are many tips and tricks you can find online. However, they ultimately fall into one of these three categories. And, as you read through them, you’ll find multiple ways to increase revenue in your business.

Big doors swing on small hinges. When you understand these three principles you’ll realize you’ve only cracked open a very large door and have left a large amount of revenue sitting outside.

1. Increase The Number Of New Customer Sales

Of the three ways to increase revenue, this is the most obvious solution and the one most businesses work to improve.

There are two ways you can increase new customer sales:

• Sell your stuff to more people, or
• Convert more existing prospect to buy your stuff.

These seem the same but they’re two slightly different details. And, they both revolve around your conversion rates.

So, what are your conversion rates? How many people buy who visit your website, walk through your doors, receive your marketing, etc.? If you don’t know your conversion rates then you need to start measuring.

In order to sell your stuff to more people you can increase the traffic to your website or store. This involves more advertising, networking, etc. You’re working around your existing conversion rate and playing the numbers game in sales.

For example, if you have 100 visitors and 5 buy something then your conversion rate is 5%. If you want to double your sales based on this, you’ll need 200 visitors to make 10 sales. Fairly straight forward and simple right?

Your other option is to increase your conversion rate. If you don’t want to work on getting more visitors you can work on increasing your conversion rate from 5% to 10% so you can sell those 10 items.

Increasing conversion rates has become a hot topic recently because of the big impact it can have to increase revenue. For example, if you’re currently converting 50% of your visitors and you increase that to 60% it’s not a 10% increase in revenue. That’s a 20% increase in revenue.

That’s a huge impact!

It’s important you’re measuring these numbers so you can deeply understand the dramatic difference any small changes will make on your bottom line.

2. Increase Your Average Sale Per Customer

Now that you’ve started to convert more visitors into sales, you want to make sure you’re able to get as much money out of each customer as they’re willing to spend.

In most small businesses the sales process is some random series of events. There’s no systematic way to upsell or bundle products and maximize the revenue per customer. Many big chains do it but the mom and pop, main street business, or blogger hasn’t really embraced this. Often there’s the sense of community and a fear of offending your customer (you really won’t but it’s a common fear).

In my first insurance agency, I remember looking at our reports that showed the average auto insurance policy premium of our agency compared with others in our area. Our average premium was $770 for a six month policy and the rest of our district was only $701. We were 10% more per customer.

This additional revenue meant I had to service 10% fewer customers to earn the same income as the other agents. This led to lower staff expenses, time spent on policy changes, etc. It also meant our customers had better protection then the average agent because we were offering more and they were buying. We had a systematic process each agent went through when discussing coverage and options to yield this additional income.

It was critical. It was required!

When you go to almost any fast food franchise you get an upsell via two different processes.

The first thing they do is bundle products together. You probably only want a hamburger and drink. But, for an additional 20 cents you can bundle the fries into your meal. This would save you 90 cents if you bought them separately (it’s on sale so I have to upgrade! Yes?).

Then, after you place your order they ask you if you want to “go large” or “super size.” This is only an additional 24 cents. So, why not take the large? The Illusion of Value has been created and they’ve extracted the additional revenue out of your wallet.

Search through what you offer. What can you offer after the initial sale? What can you bundle? What can you add to existing products/services and create a premium offer (ex. a silver, gold, and platinum level)?

You may not think what you sell could be bundled however, you’ll be surprised how you can bundle many random things and, because it’s a bundled “savings,” you will sell more stuff.

You may not want to do this because you don’t want to offer a discount on a bundled item. You’re making a big mistake. If you weren’t making the additional sale in the first place this discount is found money. Naturally, you want to be profitable so make the numbers work and think…

Where can you create the illusion of value?

3. Increase The Frequency Of Customer Purchases

What are you doing to get customers to buy your products more frequently? Do you mail or email your customer often enough?

I hear you thinking to yourself:

“I don’t want to spam my list!”

Or:

“I don’t want to my customer and prospect list, they may unsubscribe or tell me to stop mailing.”

Okay. Good points.

How about this?

What if you make extra sales from those that stick around? What if you make a lot of extra sales from those that stick around? Would it be worth losing the complaining part of your list if you create a few more happy customers? (I hope you said “Yes!”)

Of the three ways to increase revenue in your business I’ve found this to be the most neglected. I believe it’s mainly because of the fear of pushing too hard or asking too often.

Naturally, you want to provide value so you aren’t seen as a greedy business person. You can offer discounts, coupons, frequent buyer programs, etc. to get customers to come back more often. Repetition of your offer will also increase curiosity and desire in your product. A discount can give them that extra nudge to move ahead and invest in your offer.

You can think of many creative ways to get people to buy more frequently. I love an example in the book Priceless about a movie theater that gave customers a Loyalty Card. The first visit to the theater each month was regular price. Each visit after the first the customer paid less and less. The number of tickets sold to card holders went up 22%. They also earned additional revenue from concessions. This was a win/win for everyone involved.

If you only offer one or two products or services, hw can you increase buyer frequency?

Find similar businesses that support what you do and offer their products or services to your customers for commission. If you’re selling online, look into affiliate marketing. There are many missed opportunities for any business to increase their revenue with the products and services of another’s when you begin to search around.

Where Will You Start?

If you don’t have any statistics for your current conversion rates, average sale per customer, or the frequency of customer purchases you want to start measuring where you’re at now! Then, as you begin to really understand those numbers, dive into each of these three ways to increase revenue.

As I said at the beginning, big doors swing on small hinges. As you work on each of these areas, you’ll realize the enormous door of opportunity has only been cracked open and you’ll be able to swing it wide open.

Image Credit familymwr.

Another article from PersuasionTheory.com. You can find the original article here: You Just Can’t Polish A Turd

When I was younger I ran a car and truck club for a group of guys with lowered trucks and cars. Yes, this was around when Hammer Pants were cool so it was a while ago. However, we loved our trucks and took great pride in customizing them with beautiful paint, solid (loud) sound systems, and custom interiors. We were the guys with the fancy cars booming down the road pissing everyone off at 1 am.

One year we we partnered with another club and put on a local car and truck show. Hundreds of beautiful cars and trucks showed up. They compete in various categories for cars, mini-trucks, full-size trucks, etc. One class of judging was called “under construction.”

The under construction class was for the cars and trucks that weren’t finished. The owner would show it even though it wasn’t completed (painted).

There was one guy who went from show to show in his “under construction” truck. It had dozens of modifications and there was something new welded or fastened on to make it more customized.  Each show there was another change but it still wasn’t painted. And, it kept getting more bizarre looking.

While we were judging it, I commented to another judge that even if it had the best paint job it would still be an ugly truck. He said to me, “So true. You just can’t polish a turd.”

That’s stuck with me ever since and, I think you’ll agree, it applies to so many areas of business and life.

Here are two examples of turds you just can’t polish that I’ve learned to stop letting bother me and let go. It’s made a huge difference in my life and business.

1. The Magical Marketing Wand

When I was in the cemetery business, There was one area of the cemetery where we couldn’t sell the property. They were cremation niches and the location plain sucked. There was a lot of traffic nearby, it was noisy, it was hard to walk to, and it seemed to always be in the sun (In Arizona, that’s a big deal).

We would offer sales on the spaces and lower the price but people always wanted something else. They wanted something in the shade, near the stream, away from traffic, whatever. It had to be somewhere else.

The problem wasn’t the sales message or the marketing. It wasn’t the pricing. The product was a turd and the cemetery will have to live with it.

Every business is overflowing with great ideas. Unfortunately, not all are going to be winners. When that happens, they come to their marketing and sales department. They think we’re Harry Potter and can take our magic wand to turns a pile of crap into a piles of cash.

What happens? No matter how much marketing magic we apply, it’s still a pile of crap that stinks once it’s in the customer’s home. You’ll get a return. You’ll get complaints. You’ll pay for not cutting your losses.

When you run into this problem, let it go and move on. There’s no pride gained in chasing failure.

2. Some People Just Stink

You know that customer from hell? Have you had one of those before? Maybe two?

Maybe you have a friend or coworker that just can’t get it together. All they can do is make big promises and even bigger excuses.

When selling, dealing with customer service problems, or friends, there’s that person who always blames every problem the run into on someone else. A customer expresses interest in your product (or bought it) and makes every excuse why it’s not for them. Or, they can’t figure out how to work it because there’s fighting in the Middle East.

These are they type of people that will apply for jobs but won’t show up for the interview. They talk about all the great things they’re going to do but don’t do them. You try to follow-up after they call and never return your calls. They keep emailing about problems but won’t listen to any advice you want to give them. So, if you’re smart, you call them on their bullshit and they keep leading you on.

You don’t need the stress and anxiety. If you’re a salesperson, stop chasing dead leads. If they’re a customer that gives you headaches, refund their money and ask them to never contact you again.

I’ve spent almost half my life learning how to get people to change behaviors. It can be done. You need to have have enough time and patience. But, why would you spend weeks or months with someone when you can let them go and free up the time and emotional energy so you can take on 2, 3 or 8 other customers that want to work with you?

Clean The Stench From The Air

You can’t polish a turd. It doesn’t matter how much perfume you put on it, it still stinks. If it’s a crappy product, let the learning fertilize your new ideas.

If it’s a crappy prospect or customer, cut them loose and let them fertilize someone else’s problems.

I’ve had to do this with friends. I don’t think they’re bad people they’re just heading in the wrong direction and when someone doesn’t want help, I’m not going along for their tortured ride.

Where in your life can you let these things go?

What difference will it be in your life and business when you do?

Image credit Phil Thirkell at Flickr.

Another article from PersuasionTheory.com. You can find the original article here: Are You Dying To Make More Sales?

I was talking with my good friend Dave yesterday. Dave is a great sales person and an impressive persuader. In his business he sells very small parcels of real estate. They’re about 3.5 feet by 8 feet in size. It’s a small parcel but is landscaped with beautiful green grass. He also sells unique and very expensive parties. Hopefully, when you have the party, hundreds of your friends and family will attend. Have you figured out what he’s selling?

This niche is known as the pre-need cemetery and funeral arrangements. Yes, if you didn’t know, you can actually buy your cemetery and funeral arrangements while you’re still alive. Dave is consistently a leader in total sales for his company month in and out.

This is a funny niche to work. I know from experience because I originally met Dave years ago when he was my sales manager. I often joked with customers that it was my job to put the fun back in funeral.

Dave left management a while back and is selling one-on-one again. Why? Because he’s good. Dave’s the top counselor in his region for his company in both cemetery and funeral sales.

He does things the other pre-need counselors (aka sales people) won’t do. He goes door knocking in neighborhoods to prospect. He looks for people in the cemetery visiting relatives and strikes up conversations that turn into sales (he calls it lawn fishing). He looks through old files to find existing customers that haven’t completed all their arrangements. And, the list goes on.

While we were talking yesterday he mentioned another counselor (Jim) in his office decided to try lawn fishing because of Dave’s success. Jim spoke with two people in the cemetery that just brushed him off. Jim started to get discouraged and decided to talk with one more person. The third person was friendly, open and bought two graves right there on the spot.

The family was thrilled to purchase the spaces next to mom and dad because they thought they were already bought by someone else.(Yes, people actually get happy about buying their graves.)

Then, Dave told me Jim walked in and said, “I just got lucky.” Dave and I both started laughing.

Is it really luck?

The other counselors sit in the office waiting patiently for someone to come in and ask for help. The other counselors will follow up once, maybe twice, with a potential buyer. The other counselors don’t take time to brush up on their persuasion skills.

You’ve probably heard the quote by Seneca:

Luck is what happens when preparation meets opportunity.

If you’re in a sales environment, you can’t wait for things to happen. Do you want better luck?

• Are you willing to make an extra call today? How about 10 extra calls?
• Are you willing to say something that might upset your buyer but they need to hear today?
• Are you willing to put yourself out there and take a risk today?
• Are you willing to do something out of the ordinary today?
• Will you dedicate time to learning so you can improve your ability to understand your buyers and make more sales?

Dave has spent years mastering what he does. He’s learned rapport skills to immediately gain and convey trust. He’s learned to use questions and language in a way that helps the customer understand their situation and figure out if this is something they want to do for their family. He goes to seminars and spends thousands of dollars on education to improve what he does. He’s not afraid to put himself out there and make a sale.

Having worked in the cemetery with Dave years ago I learned one thing that haunts me every day.

Your life will be over quickly. Stop making excuses.

When you make a sale, don’t say it’s luck. Selling, marketing, persuasion is not about luck. It’s about doing things other’s won’t do. It’s about taking risks and learning skills.

Get out there and be the best at what you do. Your life is on the line.

Tell me what you think below.

Photo credit Nicole Shackelford

Another article from PersuasionTheory.com. You can find the original article here: Persuasive Power Of Price

When you’re selling something have you considered the impact your pricing plays in they buyer’s mind?

Price is a fine line to dance across and it hit me (again) the other day when I was filling up my car with gas. I was a little taken back when I saw the prices for gas. The options were:

• Regular Unleaded – $2.19/gallon
• Plus Unleaded – $2.29/gallon
• Super Unleaded – $2.19/gallon

I normally fill up the car with Plus because it’s generally about $.10 less than Super and, well, it’s the middle option. I don’t simply want the cheap stuff.

On that day however, I filled up with Super (the real good stuff, right?) because it was less expensive than the Plus I normally buy. However, as I was leaning up against my car watching the numbers roll by on the pump, the following thoughts kept playing in my head:

• Why are they pricing the premium stuff so low today?
• What’s wrong with this batch? Is it filled with the crud at the bottom of the storage tank?
• Did they really make a price mistake and I’m getting away with something?
• Should I go inside and ask to make it’s not the crud and I don’t hurt my car?
• Why isn’t this advertised on the sign, what’s wrong here?
• Am I the only one seeing this mistake?

Then I realized what I was doing and stepped back to analyze the situation.

Think about it now. What does pricing play when you’re working to sell something? Does it convey “cheap” or “inferior?” Does it convey there could be a problem compared to the other options available? Does it convey “bargain?” Does a higher price imply “quality?”

As I said, this is a fine line and needs to be handled with care. It’s not so easy as to say, “do you present the low price option first and work to up-sell? Do you present the high price option and down-sell if they don’t buy the first option? Do you present multiple options and let the buyer choose the price?”

Each product and situation is different and careful consideration has to be brought to the table when pricing. Often bringing multiple options will confuse the buyer and put them into a state of indecision.

I wish there was a flat answer to these questions to make it simple. However, I’ll be exploring these more in time.

Another article from PersuasionTheory.com. You can find the original article here: It’s Just Like When You Really Want To Persuade Someone

Using a metaphor is one of the best ways to really drive home your message. It’s like greasing the path for your ideas so they slide into your customer more easily and without resistance.

I’m constantly working on my storytelling. It’s an area any persuader should begin mastering. However, not all metaphors need to be long stories.

According to Wikipedia a metaphor is, “language that directly compares seemingly unrelated subjects.” When I first learned about persuasive metaphors I started comparing everything. I highly recommend you start doing this. It is Yoga for your brain.

While I was comparing things I realized I was consistently asking myself, “What’s that like?” From this came what I think is the quickest and easiest way to create powerful metaphors. . .

“It’s just like. . .”

Here are a couple of examples to draw out how you can use this in your persuasion arsenal.

Signing up for X (whatever you’re selling) is just like riding a bike. It was scary at first and you were probably afraid to make a mistake and get hurt. But, as you look back, you did it. You learned how to ride. There was someone to guide you just like with this program. Once you get on and start riding we’ll guide you to stay balanced. If you fall we’ll pick you up, wipe off any dust and get you quickly riding again. It’s a skill you’ll always remember throughout all your life.

Did that start a movie in your mind of someone learning to ride a bike? Did it help you transition the fear of buying into the ease of learning? Here’s another. . .

Persuaders that don’t learn to use metaphors are like unwanted bugs in your home. They’re interesting creatures and sometimes bizarre to look at. Some have a powerful and potentially deadly bite. But, you generally don’t want them in your house and when you do see one your impulse is to immediately kill it.

Simple and to the point, right?

So practice for yourself. What’s the first thing that pops into your mind when you read these?

• What’s your job like?
• What’s a call from your mother like?
• What is the product or service you’re selling like?

Usually the first thing that flashes in your mind is what you should run with. Take that flash of creativity and begin describing it. What are the positive aspects? What are the negatives? Doing this regularly will keep the gears in motion that drive your metaphor creativity.

It’s just like when you were a kid. . .

Another article from PersuasionTheory.com. You can find the original article here: Persuasion Is A Beautiful Art

Persuasion is a beautiful art. It’s one of those things that not everyone can do well. And, those that do it well often do it by accident. It’s an elegant dance that can be learned when you break the individual pieces down and analyze them.

When you think of persuasion, influencing or selling, you probably think of the manipulative used car sales type. We’ve all seen the stereotypical slick salesperson obviously out to part you from as much of your money as possible without considering your desires or providing real value. That’s not what I like or encourage.

I was at my mother’s house today for her 60^th birthday. While watching my son play Wii, another guest mentioned to me he just bought a brand new large TV and entertainment system for their new home. He said, “After I picked what I wanted, the guy helping me asked if I wanted to buy a Wii. I asked how much they were and he told me about $250. So, I said, ‘when they go on special I’ll get one.’ They guy helping me then told me they never go on special and they’re lucky to have them in stock now so if I want one now would be a good time. So, I bought one.”

I noticed a lot in what he said and how easily he was sold. Here are a couple items I quickly picked out:

1. This was a “Would you like fries with that?” up sell. McDonalds makes a ton of money every year with that six word question. Once you get a commitment it’s always easier to get just a little bit more.
2. After purchasing a couple thousand dollar entertainment system a $250 up sell doesn’t seem like as much money. This is a law of contrast. If he was only there buying a $15 music CD a $250 option is a lot of money. Compared to the couple thousand he just spent on the entertainment system a $250 purchase was a very small price.
3. “The guy helping me.” Whether or not the salesperson’s title was actually “salesperson,” the customer did not perceive him as a salesperson. He was “the guy helping me.” He was trusted and providing help. There are many factors to this and I did not learn enough about the event to find out how “the guy helping me” earned that title.
4. “The store was lucky to have them in stock.” There are a few things implied here:
   1. They can’t keep them in stock because they sell so quickly.
   2. You are lucky to be here today so you can buy one. A feeling of good fortune and “specialness” for my friend because he’s there when they’re in stock.
   3. Scarcity gives an added illusion this is something special. If he doesn’t act today he will have to wait until a store has one in stock to buy.
   4. Social proof this is a “hot” buy because they’re selling out so quickly. It’s the “Everyone wants one so it must be good” mentality.

This is not an exhaustive list of the interaction. I’m sure there were many other factors that attributed to his easily saying “Yes!” But, this is what I thought I’d quickly share from the conversation.

Whenever I hear stuff like this I often start thinking:

1. What is the strategy or strategies behind what happened?
2. How can I apply these strategies in my persuasive situations?
3. Where are the key moments of power where one begins to get or lose control of the situation?
4. What can I do to prevent or minimize the points where I could have lost the sale?

You can see the persuasive tactics used here were not manipulative or pushy. The salesman simply asked for the sale and quickly answered a couple of questions with some loaded answers.

Persuasion is a beautiful art.