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The Ten Dumbest Marketing Mishaps - #06
Mishap 6: Failing To Sell & “Educate” Your Way Out of a Business Problem
You can’t just cut the price. Well . . . you can, it’s your company and your money. You can do what you want. But it will cost you — literally.
When I help companies create a campaign to remedy an inventory overstock or to stimulate patronage for some service or product that’s just not selling — my solution is so basic, simple and obvious you’ll laugh: I tell my clients to tell their customers and prospects the truth.
For example, if you have had 9,000 widgets gathering dust in your warehouse for six months, and you have $90,000 tied up in them, but no one’s asking for widgets — design an email campaign, create a webpage, write a letter or display ad, or create a TV/ radio commercial that tells your customers and prospects exactly that:
- you have a huge inventory of widgets
- the widgets are good for such-and-such
- you are interested in selling them retail
- their quality composition/constructive service functions and performance criteria are such-and-such
Then tell people what other retailers or wholesalers would normally offer these or comparable widgets for, and tell them the price you’re willing to sell a widget or a specific quantity of widgets for.
Then tell the prospects why you’re selling the widgets to them so cheaply — the real reason — but with a delightful embellishment.
For example, tell the prospect the truth: that we have 9,000 widgets in our warehouse and the real rush is over until next fall, so we’ll sell them for our actual cost, or even for our cost, less 20%.
But add to that explanation a parenthetic exclusive qualifier like: “But we’re only offering this value to our best customers as a reward for your patronage.”
Or . . . “But we’re only making this offer to new, first-time customers who buy an equal amount of other products or services.”
Or . . . “We’re only making this offer available to people who buy (some other very specific product).”
An important point, in fact, it’s vitally essential, is that your customers won’t understand or appreciate a value, or a bargain, or a service, or a benefit, unless and until, you first educate them to appreciate it.
Merely offering a product or service at a specific price (even the best price) doesn’t compel excitement, or a response, until you tell people what they’re getting, what value it is compared to other products and services, and why you can offer such value.
This applies to any problem.
When your business has a problem (say you’ve taken money or advances for a product or service) and something goes wrong, precluding you from fully or promptly or properly rendering that service, never, ever fail to acknowledge your screw-up.
Failure to tell the truth is a sure way to commit integrity suicide. Be up-front and honest, and call, write or individually approach your customers and apprise them of the problem.
Tell them precisely what you were supposed to do and tell them why you can’t fulfill your obligations. Tell them with certainty when you will be able to perform. And this is the clincher — give them some wonderful consideration to compensate them for being put out.
Give them a small gift that costs you a lot less than the profits you’ll relinquish if you’re forced to return their money.
Or, send them a discount coupon, or rebate a portion of their original purchase price.
Whatever consideration you offer, tell them why you’re doing it, apologize for what went wrong, thank them for their business, and assure them honestly that you can and will rectify the problem.
Let them know that everything will be put right by such-and-such a time or method.
By Walter |
Topics: Client Top Secret, Marketing Mishaps |