Psychological Marketing Insights

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

Posts Tagged ‘prospects’

 

 

Who?

Friday, January 29th, 2010

Matt and I have spoken before about the 3 “M’s” of marketing.

  • Message
  • Market
  • Media (delivery method)

As I have mentioned before, you must have each area, much like a 3 legged stool, or else your marketing won’t stand up.  So, in other words your marketing needs to say the right thing, to the right person, in the right way.

Today, I would like to delve into the market a bit more as I have had several questions about how to craft an effective message to the right person.  So, in honor of the great band about to play the Superbowl half time show, let’s delve into “The Who” of your marketing.

Now, there are a lot of things that go into the make up of your customer database.  I can hear some of you out there right now saying, “Sarah, everyone is my potential customer.”  To those people I say to read my puddle jumping blog post and then come back.  :-)   To everyone else that understands the need for marketing to a niche, let’s start by looking at your average customer.

Your average customer is the type of person that has bought from you most.  Every business has this in some way shape or form, you just have to look at the commonalities.  Maybe all of your customers tend to play golf.  Or maybe they all are females.  There is something out there that will make your customers into a group and show you more of their mindset.  To help clients with this I take them through an exercise called, “Who Are You?”

In this exercise we ask questions about our customers such as:

  1. How old are you?
  2. What gender are you?
  3. What education level do you have?
  4. Are you married?
  5. Do you have children?
  6. Do you have pets?  What type of pets and how many?
  7. Do you own your own home?
  8. What income level are you?
  9. What career are you in?
  10. What type of car do you drive?
  11. What is your favorite kind of restaurant?
  12. What are your hobbies?
  13. What side of town do you live on?

This may seem like overkill to some of you, but let’s think through this.  Would you rather attempt to craft a marketing message to simply females, or would you like to craft a message to:

  • a 31 year old female
  • who is married
  • with 2 young children
  • has a golden retriever named Lilly
  • owns her own home
  • lives on the north side of town
  • graduated from IU (go Hoosiers!)
  • with a degree in accounting
  • makes greater than $40,000/year
  • drives a Toyota Rav4
  • loves eating Italian
  • enjoys running, hiking, and reading

Do you get the point?  It is much easier to write a marketing message when you have more information about the person whom you are writing to.  Otherwise, you are merely shooting in the dark as you try to connect with the core beliefs and values of half the population.

For more on this topic, be looking for our audio series on the 3 “M’s” of marketing.

Happy Marketing!

Sarah

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What is it that you do again?

Saturday, May 30th, 2009

Have you ever had this question?  It usually comes from Aunt Mildred at the family reunion.  And the sad part is, the same conversation has taken place every year.

You sigh in frustration as you once again try to get someone who has absolutely no clue to understand the ins and outs of the widget business.  Ten minutes later Aunt Mildred politely pats your hand and says, “That’s nice, honey.”  She then trudges away, walker in hand to find the dessert table.

What happened?  Is it that Aunt Mildred is just dense and doesn’t understand anything about business?  While that may very well be the case, more than likely you just bored her stiff with all the details of the widget industry and through her boredom she became overwhelmed and didn’t understand a word you said.

Now, let’s change the scenario and the question a bit.

You walk into a networking event.  Right away Joe Salesman walks up and introduces himself.  He then asks, “So, what do you do?”

Now, before you start launching into your 10 minutes shpeel again, let’s think back to Aunt Mildred.  Aunt Mildred loves you dearly and has a reason to listen to you…but you still bored her out of her mind, so maybe we should change the approach, because no offense, but no one really cares what year your company was founded or any of that crap unless they ask.

So, back to the networking scenario…what are you going to say?

Let’s dissect it.

1) What is a common need or pain that the majority of your clients have and that you fulfill?

Now this should be fairly easy.  Just ask yourself why people need your product.  Does it get them out of debt?  Does it provide safety to their family?  What is the pain or fear that drives your customer?  When you discover that you are 9/10 of the way there.

2)  What makes you different than other companies that address the same need?

Okay, before we get into this I need to bring up one of Matt’s biggest pet peeves.  Platitudes.  A platitude is something that should be obvious or expected.  For example, almost every business out there says that they are honest and on time.  Well, I should hope so.  That is like saying, “Congratulations, you didn’t steal from me today.  That means you are a great company in my book!”  Come on!  Really?!? Do you really want your customers saying that about you?  Then don’t put it in their minds!

So, again I pose the question, “What makes you different from other companies?”  Maybe it is that you use only natural materials, that everything is hand made, or that you only use your own staff- not contractors like the rest of your type of companies.  Now, those will set you apart.  Why?  Because by saying these things you have not only stuck out in your customer or prospect’s mind, but you have made it seem as if anyone who doesn’t do it that way is wrong.  So you have set the new buying criteria.

3) Who traditionally buys your product?

This will help you in networking especially, because that person will know who you are looking for.  It will also help in the sales process, because it is a form of “social proof” which will need to be a post in and of itself.  Keep it short and sweet, maybe 1 or 2 different niches.  This will enable the prospect or referral source to remember what you are saying and won’t confuse the message.

4) Now put it all together in 30 seconds or less.

Do you like it when someone stands there and talks at you for 5 minutes?  No!  So don’t do it!  I know you are saying, but what if I am missing an opportunity to sell to this person?  I guarantee you that if you stop talking at people you will increase your sales, not decrease them.

If you just stand there and spill your guts to them for God knows how long, you have done nothing more than talked to a brick wall.  Where if you give them just a few tasty morsels of what you have to offer, they will want more, and they will walk away actually understanding what you do.

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Are you humming your message, or singing it?

Saturday, May 23rd, 2009

Most companies are not very good at explaining what they do in a simple format that is easily understandable.

A good analogy is charades or humming.  Pick a song and then try humming it to a friend.  Sometimes the person can pick it up quickly, and sometimes the person can’t.  Unless you’re humming a song so obvious like the Star Spangled Banner or Happy Birthday people generally struggle.  The same thing can be done with charades.  Sometimes people can tell what you are doing instantly, but often times it takes a bit of work.

Your marketing message needs to communicate and not speak in generalities or buzz words that involve tons of platitudes.  It needs to be very clear.  It needs to be specific, and it needs to “feel right.”  That way when someone sees your message they say (or think) to themselves, “that’s for me!”  Picture a dog whistle when a dog hears it, the dog’s ears instantly perk up.

Why do I bring this up?  Because in your business you have to bridge the gap.  The gap of what you really do and what people think you do. I run into this challenge all the time.

Ask someone what they do and they ramble on for a minute or two and the prospect still can’t explain what he or she just heard.  Then they wonder why nobody buys their product or service — just like the person who is humming the song or doing the charades gets frustrated because the person can’t understand the message he or she is trying to get across.

Does this make sense?  You have got to get the message across clearly.  And even more clearly now than ever before due to more and more information that is being produced on a daily basis.

Yes, YOU (the person who is humming or doing the charades) knows what the message or song you are trying to get across is, but the other person doesn’t.  And how often have you ran out of time in charades and the other person said something like, “Why didn’t you just make this motion.  It would have been soooo obvious.”  And then you think, “dang they are right!”

In other words, it is your fault if you don’t communicate the message correctly, not the prospects.

Now, try to guess this song…

-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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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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Stimulus Response from a Honk and a Wave…

Monday, April 20th, 2009

Let me ask you this:  Have you ever had someone wave or honk at you and start waving and you instantly started waving back thinking to yourself, “Who in the heck is that person waving to me…”  only to look behind you and see someone else waving to them and then looking at you in a weird way.

Well, it has never happened to me….just kidding, it actually has.

Why do I bring this up?  Well, it is interesting to see how we’ve been trained and conditioned to respond to certain situations in life.

Someone waves, we wave back.  Someone puts out their hand for a handshake and we put out ours.

Can you build this automatic responses into your business?

Now you gotta be careful here because it is easy to begin to manipulate people and you should always have their best interests at heart.  Yet you can tape into the brain of people in your marketing messages and your sales processes so that you can know, ahead of time, what someone will say to a statement you make, and then overcome that.

One quick thing you can do, that few people every do, is make a list of all the objections or reasons why people will not buy your product or service.

Now, work on creating a solution to everyone one of those.

Next, depending on the situation you can bring these up in your presentation and answer them first, or you can let the prospect bring these up.   Like I said it does depend, but in my experience most of the time bringing these up yourself is better than letting the prospect bring it up.   Why?   Because the brain looks for things that don’t make sense, so if your prospect brings it up then you have to “overcome the objection” according to traditional sales people.

I would much rather bring up the problems myself and answer them first, that way people don’t get that “a ha!” feeling or “I knew this was too good to be true” feeling.  Furthermore, if you bring them up yourself it lends you credibility because you bringing these potential objections up front.

Like with everything you have to test and track these things to make sure they will work for your business and your situation, but if there is generally always 1 or 2 big objections you get in your sales process then work on this.

It does nobody any good to ignore the elephant in the room, because the elephant ain’t going away and before you know it the elephant will take a big dump and stink up the room — so you might as well acknowledge it.

BEEP BEEP,  (you waving awkwardly…)

-Matt

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Marketing Psychology and Perception vs. Reality…

Monday, April 13th, 2009

Bridging the gap between the outside perception of your company and the reality of who your company is, what they do, and how they run is a constant challenge for most people. Proper marketing can do this.

Now here is a key point. You may think your prospects and customers understand what you do, but you’d be surprised how many times they don’t understand what you do.

I see this all the time when working with people. The mis-communication is incredible. But there is a ton of “mutual mystification”. Both parties in a business discussion don’t know what the other one is really talking about.

So how do you get the reality of what you do to be accurate as the outside perception?

A lot of work, of course, but begin with by refining your value propositions, marketing materials, and sales pitches down to very simple concepts. Can people easily understand them? Can you make it into an analogy?

That is step #1. Step #2 is to look at the platitudes in your marketing pieces, because if you are using them they are not generating the effect that you think they are.

Example: Service is #1 with us. My response, “I would hope so…”

Quality is our priority. My response, “Yup, everyone else says this…”

Platitudes are abundant in marketing. The goal is to educate people on this question:

Why should you do business with me versus everyone else?

Tomorrow I’ll go into more on how you build the answer to this question.

-Matt

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Are you standing out and catching attention?

Saturday, April 11th, 2009

Are you standing out? Now please understand this. Just because your situation or business or life is not located in Vegas, doesn’t mean your clients, prospects, and network isn’t distracted.

Vegas Skyline

-Matt

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Are your customers thinking of you?

Tuesday, April 7th, 2009

Do you think your customers are thinking of you? Unless they are in severe pain the answer is no. Let’s look at this a bit more closely. Did you make any purchases today? Did you buy food at a store?

How much did you think of that place after you left?

Did YOU go on a sales appointment today. Is that person still thinking of you? The answer is, probably not.

If there is any doubt just listen to all the noise that is surrounding you currently. Is there a fan on? A television, a computer? Is there someone talking in the background?

The ultimate issue is that most people are completely and totally overwhelmed with information so that they are unable to process it clearly.

You need a way to break through the clutter and to overcome this.

Oh, and if that was not bad enough does your “to do list” have any of the following on it?

Change oil in car
get prescription
exercise
do laundry
get groceries
go to store
drop off kids
return library book
order books
pay credit card bill
go to bank
meet so and so for lunch
return wedding invitation
get birthday present
clean garage
wash windows

Do you get the idea? If you think you yourself are busy, just remember that your prospects and customers are also busy.

-Matt

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