Psychological Marketing Insights

Analyzing the Psychology of Business, Marketing, and Sales ...

April, 2009

 

 

A great follow-up tool…

Thursday, April 30th, 2009

Being in the follow-up marketing business, I am often asked what I would recommend as the best tools and media to follow-up with customers.  There are a lot of tools out there and many of them may make more sense than others, depending upon the size of your business.

One of my favorite tools is SendOutCards.  SendOutCards is a web based tool that allows users to send live cards to their customers.  That’s right…a live card, not an e-card, all for less than $1.50!  You can choose from over 10,000 different stock card options, or you can upload your own pictures or logo to the front of the cards.  In addition, you can have your own font and signatures made to make the cards look even more personal.  As if that weren’t enough, you can set cards up in advance, much like an email autoresponder to go out on set dates such as birthdays, anniversaries, holidays, or in a certain sequence such as would be used for a new customer experience.

I have implemented SendOutCards in my business and for my clients in many different aspects.  Some have used it as a referral mining tool while others have used it to showcase testimonials.  Still yet, others have used the SendOutCards gifting program to show appreciation to their clients or referral sources.

Feel free to take it for a test drive at:

SendOutCards

If you already use SendOutCards, you know just how valuable of a tool it can be.  How have you put it into effect in your business?  What types of results have you gotten?

As much as I love SendOutCards, I am continuously looking for new ways to follow-up.  As mentioned in previous posts, though, you should never use just one form of media.  I use a whole host of media to stay in touch with my clients and referral partners. In my next post I will talk about some of my favorite email autoresponder programs and the benefits that each has to offer.

Until then~

Sarah

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How much is one customer worth to you?

Wednesday, April 29th, 2009

How much is one customer worth to you?

Let’s break it down using the example of a realtor. If a realtor gets just one half of the sales commission they will get 3.5%. Let’s be conservative and suppose that a buyer’s realtor sells a house to a young couple for $100,000. So at 3.5% that would be $3,500 in commission.

Now, according to the U.S. Census Bureau, the average person moves 11 times in their life which averages out to every 7 years if a person were to live to their mid seventies. To be conservative we will say that the young couple moved 4 times when they were children, so they have another 7 times to move in their lifetime.

Now, the smart thing for the realtor to do is stay in touch with this young couple on a regular basis. If the realtor does this the couple is that much more likely to use them again. So what if the next time the realtor not only lists the home that the couple is selling but also sells them another home.

If each home was only sold at $100,000 … (which isn’t very likely as most people progressively buy more expensive homes throughout life as they get raises, switch jobs, or both partners begin working, but this makes the math easier)… so if each home was only sold at $100,000 the realtor would get another $3500 for each of the two homes.

So, $3500 x2 would equal $7000 added to the original $3500 for a current lifetime total of $10,500.

If we multiply that $7000 x6 for the remainder of times that the couple moves and add the original $3500 we get a grand lifetime total of $45,000.

That doesn’t even take into account if any of the homes are higher than $100,000 or if the realtor is able to be both the buying and listing agent on any of the sales. That also doesn’t take into account any referrals that the couple might provide. Realistically, the couple could easily be worth well over $60,000 over their entire lifetime.

Granted, there are some expenses in doing this, but it is a heck of a lot easier to keep this person as a customer than it is to continue trying to find new clients constantly. It is just like farming. You have to keep sowing to keep on reaping.

Now think about this. What if the realtor hadn’t continued to follow-up after that first sale? They would be leaving 10’s of thousands of dollars on the table. Are you making this mistake? I know the agent who sold us our first house did send us a thank you card, but that was all. Now, 3 years later we haven’t heard another peep from him. If we go strictly with statistics we will be moving in another 4 years. More likely than not, we will be moving in the next year or two. And we’ve now become friends with someone else that we see and hear from on a regular basis and have begun to send referrals to. We weren’t really friends with our original realtor before, and he hasn’t built a relationship since, so there is no obligation to go with him.

You see the key is to create friendships and how do you do that? Constant communication is essential.

In tomorrow’s post I will tell you how to stay in touch with your clients. There are a lot of different tools and media you can use, and certain ones have more value than others.

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The Psychology of Good Marketing: Referrals, and Getting People That Want Your Service.

Wednesday, April 29th, 2009

When you ask most people what the easiest type of business for them to close is, most people inevitably respond that it is referrals.

Now let’s take a step back and examine why referrals are sometimes the easiest to close.

I think it is because of several main things.

1) Someone recommended you
2) That someone wasn’t you
2) That someone had some level of credibility with another person
4) The person “was looking” or had a need to begin with.

Lets analyze these a bit closer.

1) Someone recommended you – 3rd party endorsement or “social proof”
2) That someone wasn’t you – once again, we tend to doubt people and what they say themselves, but if other people say it (who have nothing to gain) we tend to trust them more.
3) Once again, social proof, and perhaps some authority is involved – the higher the credibility and belief you have of the other person and his or her level of intelligence the more authority they have.
4) NEED – some type of pain was present or identified.

What is the most important thing out of all of these things. Well, I think it is #4. Why? Because no matter how respected so and so is (the person who refers you) if the person being referred isn’t interested or doesn’t perceive a need then the others above don’t really matter.

If someone tells me I need to get my carpets cleaned — that there is the best carpet cleaning company in the state – and that they do a good job — and I really don’t think I need my carpets cleaned – none of that matters. Because the need is not there. Sure, occasionally someone has so much influence that even though someone does not think they need it they will still do as the referrer recommends out of respect, but if #4 is not there, then you have problems.

But, if I think my carpets need cleaned to begin with then #’s 1-3 from above, all can come into play of whom I choose.

So, I think #4 trumps everything. How does this apply to you and your business?

Let me explain.

In proper marketing you are attracting people to your business. Like bees to honey. People know they have a need, then they FIND you. Now don’t lose me here. Most people get this. But then where they screw it up is NOT using #’s 1-2-3 from above to accentuate their marketing. How can this be accomplished?

Case studies. Proof. Testimonials. These can be used to build credibility.

In tomorrow’s post I’ll go more into detail with some examples and the also talk more about #4. I’ll explain why most “marketing” is poor, what it does and doesn’t do, and how you can market properly to attract people to your business.

But ask yourself this. Isn’t it easier to have people coming to you who are presorted and ready to hear what you have to say? It is certainly a lot easier than cold-calling, or even networking.

In the meantime, feel free to subscribe to RSS, send some people this way, or email me some honey (boy I wish we had that attachment system in email :) ) ….oh…and I’ll have the main site setup soon.

-Matt

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HALT! Marketing Psychology and Hungry, Angry, Lonely Tired…and what it means to you…

Tuesday, April 28th, 2009

Today I’d like to share with you something very important about your prospects and potential buyers. This also applies to your life, too, and it effects the mood of everyone you come into contact with.

What is it? HALT. It is an acronym for hungry, angry, lonely, and tired. Now, what does this have to do with your marketing in your business? Well, people are normally put in a poor mood or a less receptive mood – or sometimes an increased mood to your marketing messages — depending on what you are selling. I would also add, ‘hot’ to the acronym.

You see, when someone is in a state of being hungry, angry, lonely, tired (or hot) then they are emotionally more apt to do certain behavior. This is why, from my understanding, AA (alcoholic’s anonymous) tells people to get assistance when they get into one of these moods–because in that case they are more likely to drink because of the negative state of mind and emotions he or she is in. Does this make sense? If you are lonely you are more likely, in general, to turn to alcohol — which is certainly bad for alcoholics.

Now let me ask you this. Are you taking this into account in your business? Are your customers or prospects generally preconditioned to be in one of these frames of mind before you are marketing or selling to them? And, if so, how can you overcome these negative conditions up front. How you pre-position yourself, your company, or your messages is certainly important.

I’d like you to do something very important, if you can. Do some self-monitoring on your mood. I find when I myself am hungry, angry, lonely, or tired my mood shifts and I tend to look at things differently. I believe almost every person is like this. It is “wired” into us. Our chemicals in our brains and bodies shift, and we become more resistant or open to certain ideas and things.

Want an interesting fact? The murder rate goes up when more ice cream is sold. Yup, ice cream equals more murders. Actually, it doesn’t. There is no cause and effect there. What actually happens is that in the summer it is hotter than in the winter, so people have shorter tempers and are more likely to explode in anger. That is one factor, and I imagine also that people are put into situations to where there is more violence. So ice cream sold doesn’t affect more murders, it is just more ice cream is sold in summer when it is hot, instead of when it is cold.

So what can you take from this? Pay attention to what is influencing your customer’s or prospects. Colors, shapes, temperatures, music, sound effects etc. There is a reason why movies spend a lot of money on the soundtrack to accompany the movie. It’s because without that soundtrack the movie, generally, would be a whole lot less stimulating.

Just one little nuance sometimes can throw off your customer’s minds from buying your product or service. And, here’s the thing. And lots of times great businesses are built upon shifting the customers emotions to a desired state.

Disney provides imagination, joy, and excitement.
FedEx provides relief from anxiety
McDonald’s (yes, McDonald’s) provides instant gratification and consitency
Staples has tried to produce, “That was easy.”

So stop, analyze your current customers, and figure out the moods people are put in before they come to your business. If you are a mechanic it will be sometimes fear of being ripped off (especially for women.) If you are an attorney it might be intimidation. The same goes for accountants, at times.

And remember, monitor yourself when you are hot, hungry, angry, lonely, or tired. See how this effects you. Because if it effecting you — it is probably effecting your customers too.

-Matt

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Psychological Marketing: How quiet elevators apply to your business…seriously.

Sunday, April 26th, 2009

Sure, we’ve all done this before. We’ve been walking in a hotel or in a building having a great conversation.

And then we get on an elevator.

And this elevator has other people on it.

And a lot of times the conversation stops — either from you, or from the people who were having a conversation between themselves.

And it’s kind of awkward, isn’t it?

Now has this ever happened to you? And you go up the floors, 3-4-5-6-7-8-9-10-11-12-14 (some skip 13 due to superstitions) and then you get out, and the conversation begins again.

Why does this happen, and what in the %$&@ does this have to do with your business?

Well, first the environment we are exposed to sets the tone for how a marketing or sales message is delivered and received. The environment is so important and yet often times overlooked. And a little, tiny, itsy bitsy mistake can cost you thousands. So, just as in the elevator a conversation is stopped, the wrong environment can kill your marketing message or business.

Second, what are the expectations of the people who are going to receive the marketing message or sales presentation? These expectations, or beliefs, or prejudices, or feelings about you ahead of time also govern the experience.

So, how does this apply to you. Well, you have to stop and think several steps ahead before you make a sales presentation or deploy a marketing piece. Is the environment appropriate? Is it preparing people for your message?

Here’s a perfect example. If you have an “in-bound” business what can you do ahead of time to prepare people for the sales presentation.

What can you do to open them up, to help them relax, to build your credibility, to build your authority?

In some scenarios a book of happy customers that have written letters about you can be very powerful.

In other scenarios photos of your happy customers can also work very well.

What does this do? It shows people you are a nice person (hopefully) and that you have helped some people before.

Will this be “enough” to persuade people to buy what you are selling ahead of time? Maybe, maybe not. But, if done correctly, it can certainly help tip the scales in your favor.

This is part of what psychological marketing is about. Tapping into the minds of your prospects, and answering the unasked questions. Creating a scenario or a condition ahead of time to prepare people for the sale. Reverse engineering your processes so it is like a greased slide when you talk to them.

So next time when you get on the elevator remember this automatic process. It just kinds of “happens” without you consciously deciding it.

-Matt

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What does personality have to do with it?

Saturday, April 25th, 2009

When was the last time you read a marketing piece all the way through?

What was it about that piece that made you keep reading?  I would wager that it might have something to do with 1 of 2 things.  Either, a) you found what the author said to be interesting, or b) you connected with the author.  They had personality.  Your high school English teacher would call this their “voice.”

Personality should be intertwined throughout every aspect of your business, especially in your marketing pieces.  Your customers buy from you for numerous reasons, but statistics show that they are more likely to buy from you if they like you.  That means that they like your personality…which means you should be using more of your personality.

What are some ways that you can include personality in your business strategy?

1) Include personal stories in newsletters, letters, greeting cards, emails

2) Post pictures of family, friends, vacations, etc. on websites/blogs, newsletters, cards, etc.

3) Talk about your likes, your dislikes, your dreams, your hobbies, favorite music or food, etc.

4)Don’t forget about your client’s personality: Ask customers to tell you about themselves as well…people love to talk about themselves and love to feel that someone knows them for who they are…then include customer profiles in your newsletter so that others can know them

I think you get the picture.  Reveal tidbits of information about yourself in any way that you can and encourage your customers to do the same and they are more likely to enjoy reading what you put in front of them and are more likely to feel connected to you.

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The Psychology of Marketing: Are you confused about your marketing?

Saturday, April 25th, 2009

Many times when working with clients or people in marketing I hear this:

“I’d never respond to this marketing piece.”

Here is something important you need to realize. You are not necessarily your buyer.

This means that your buyers or prospects will respond differently to your marketing pieces than you might.

Here are some examples of what I am talking about.

Sometimes people say I’d never respond to direct mail, so I don’t see the point of using that in my business. But your buyers might respond. Now don’t get me wrong. I’m not saying you should blindly use direct mail, but don’t instantly discount it because you don’t respond to it.

Do some market research. If you have received multiple direct mail packages from the same company unless they are being subsidized by something then they are making money using it. So somebody is responding. Dozens of huge companies use it profitably and successfully for years.

The same goes for other types of marketing media. I have never bought anything off of QVC or the Home Shopping Network. QVC was founded in 1986 and is in multiple countries.

Home Shopping Network was founded in 1982. So these companies have been around and making money for 20-25 years.

So what does this mean: Perform marketing research on your target market. And then look at what other forms of marketing media or marketing tactics you can utilize for your business.

Test, test, test, and continue to test. Get into the psychology of your buyers.

Want another example? Walk into a book store. There are hundreds of categories or niches that I never look at or I am not interested in. But the stores have it.

So what I am saying is this: People make marketing (and other ) decision based upon their viewpoint of what does and doesn’t work. And often times this viewpoint is small because they have not taken the time to really think about it and research their market.

Don’t immediately discount an idea because you don’t respond to that type of marketing media. You may be giving away a lot of money.

In the next post I’ll share with you some steps and ways for you to be able to be able to get new ideas for your marketing for your prospects.

-Matt

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Do you know the difference between email & direct mail?

Friday, April 24th, 2009

What is the difference between email and direct mail?  A click.

A click?  Why a click you ask?  All that a person has to do to forget about your email message is click on delete.

Now, to be fair, all a person has to do to forget about your direct mail message is drop it in the mail without opening it. However, they still have to walk over to the trash can, so you have a bit longer to get their attention.

The key in both forms of media is in the headline or the attention grabber.  Check out this great blog on building a great attention grabbing headline: How to Get the Attention of Your Potential Clients .  The author has several posts on headlines that I have found very useful in my marketing pieces.

Till later,

~Sarah

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Marketing Psychology: Are you using testimonials effectively?

Friday, April 24th, 2009

Are you using testimonials effectively in your business? If not, here’s some things you can do immediately.

Most people are not using testimonials effectively. Why are testimonials important? Because if someone else says it it is more “true” than if you say it. Robert Cialdini illustrates this perfectly in his book “Influence, the Psychology of Persuasion.” If you haven’t read that book I highly recommend you read that book.

But most people cannot translate those concepts into usable tactics that you can implement easily. Here are some ideas.

One, if you have a room in your business to where people wait before you meet with them to give a sales presentation you could have the following

1) letters form happy customers on the wall, (or in a book)
2) pictures of these customers and their families on the wall (or in a book)
3) a “testimonials book” that the person can review before you meet with them

What does this do? It “prepares” someone else for the sales presentation.

You can then refer to these happy customers constantly.

Now, the next question you might have is this: How many testimonials should I have?

Answer: As long as they are professional, quality, and are true — as many as possible. As many as possible. As many as possible. How much? As many as possible.

Why? Well because some testimonials will resonate better with some people than other testimonials.

Testimonials are also used to overcome objections. They need to display the initial skepticism or objections someone had to buying your product or service before they bought it. What it did for them. Remember that most of the time people are thinking that whatever you are selling won’t work for them — they are somehow different and you must overcome their lack of confidence.

Does this make sense?

Other things to include with the testimonial.

As much information as possible. Their location, job title, what you have done for them, why they chose you versus someone else, and more.

Then you can ultimately say something like this, “If you have any questions about what I am selling feel free to call any of these people.” (of course, make sure you have permission from these people). Generally your clients will be glad to do this. They want to help you if you have taken care of them.

Remember, your goal is to build a case that proves your value proposition. And if you were on trial facing the electric chair for 8 years (crispy!) or 80 years with Bubba in a 8×8 cell, wouldn’t you want your defense team to present as much proof as possible in your defense?

That is the same idea. And remember many formats can work. Print, audio, video, anything and everything can work for testimonials. Make sure they are high quality.

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Anchors away! Do you know how to “anchor” your marketing to your customers?

Thursday, April 23rd, 2009

Do you know what an anchor is? Of course you do. It holds a boat somewhere in the water and keeps it from moving around. And if you fall asleep and the anchor doesn’t do its job you could easily be swept into a storm and your boat can sink.

But do you know what an “emotional anchor” is? This is a term used in NLP (and NLP Neuro-Linguistic Programming). Now to have full disclosure here there are debates on to how well NLP works in terms of therapy. But the idea of an “anchor” is and has been known and utilized for a long time.

Anchors really are signals or triggers used in “conditioning experiments.” For example when Pavlov rang the bell for dogs in his famous experiment he linked the bell to the idea of eating time and the dogs would drool upon hearing the sound of the bells. There would not need to be any more food, just the ringing of the bells.

Anchors can be used this way in marketing. Not to get too “political” but politicians also use these extremely well when talking about various scenarios. But how does this relate to marketing?

It relates a lot. When making a presentation certain key words will drum up certain emotions for different people. Just like when the National Anthem is sung at sporting events it brings tears to certain people’s eyes.

Now the key here to realize is that the situation is almost automatic — if not automatic. Nobody hears the National Anthem and then thinks, “hmm, I think I will cry.” No, it is stimulus > response. It is automatic without conscious thought (almost 100% of the time)

What are some examples, you say?

Well, the word “system” in the business word can be a very positive anchor for the right people. Because the word “system” generally means something reliable or automatic.

Certain pictures are symbols (like a country’s flag) can also be anchors. Clothing can be an anchor and even smells can be anchor. Which brings up a great point?

Are you using aroma’s in your business? The sense of smell is the strongest link to memory. And hardly any businesses out there that are NOT a restaurant is using aroma to attract customers.

Sure, you’ll say instantly, “But Matt, this wont’ work for me…my customers are different.” To which my response is, “Maybe not, but the thing you need to be trying to do is figure out how to make it work.” Because if you can innovate that much, you’re competition will be even further behind.

Because anybody can figure out reasons why it won’t. And those are the people who have to worry about their boat sinking (bet yah forget about that analogy from the beginning, didn’t yah? :) )

-Matt

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