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How Understanding What Your Customers Value is the Key to More Sales

Article Description:
====================

Have you ever had this experience? You work hard on developing an
offer for your product or service. Maybe you even ask a few
people to take a look at your Web page or brochure to make
certain they get your message. Then you send your offer out into
the world. 


Additional Article Information:
===============================

609 Words; formatted to 65 Characters per Line
Distribution Date and Time: 2008-07-15 11:36:00

Written By:     Judy Murdoch
Copyright:      2008
Contact Email:  mailto:[EMAIL PROTECTED]



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How Understanding What Your Customers Value is the Key to More Sales
Copyright (c) 2008 Judy Murdoch
Highly Contagious Marketing
http://www.judymurdoch.com/workbook.htm



Have you ever had this experience? You work hard on developing an
offer for your product or service. Maybe you even ask a few
people to take a look at your Web page or brochure to make
certain they get your message. Then you send your offer out into
the world.

And you get no responses. Or a puny little trickle.

So you send multiple offers out over a couple month's time.
Maybe you sell a few but given the time and money you've
invested, not enough to count.

The Fatal Error

The fatal error that will kill your marketing efforts every time
is failure to understand

value as your customer defines value. Not as YOU define value.

Defining "Value"

Think of customer value as a simple formula:

Cost of Non-action (minus) Cost of action = Value

When Value is positive (meaning, there's more to gain by acting
on your offer, buying your products, taking your class, etc.)
prospects take action.

When Value is zero (meaning they think it will cost about as much
to act as not to act) or negative (meaning there's more cost to
acting than not) it is very likely that they will stick with the
status quo.

To improve your response rate, you need to increase perceived
value.

How to Increase Perceived Value

Looking at it this way, there are two things you can do to your
offer to improve your response rate.

1. Decrease the cost of taking action.

2. Increase the perceived cost of not taking action.

Examples:

Decreasing the Cost of Taking Action

Before we began promoting our Info Product Roadtrip program we
interviewed a variety of small business owners to get their
reactions to our idea. It was a good thing we did. Although most
of the business owners we spoke with loved the idea of passive
revenue, about half were very concerned about the time, effort,
and expense of creating information products.

To make the program more valuable, we decided to focus on a
smaller group: authors and speakers. Why? Because authors and
speakers have existing content. It is far easier (less costly) to
create an information product based on a chapter in a book than
creating it from scratch (which was the challenge for many
entrepreneurs we spoke with.).

Increasing the Perceived Cost of NOT Taking Action

Put simply, this is about "sweetening the deal." Oftentimes,
when customers are slow to respond to an offer our first instinct
is to lower the price. That's a mistake. Yes, money can be a
barrier to purchase but not as much as most people think. In my
experience, if your offer is valuable enough to your prospect,
they'll find the time and money to act.

For example, the author of a book on their great grandmother's
life growing up in the Louisiana Bayou might include some
authentic recipes for gumbo and fried okra as a bonus for buying
her book. Or a realtor giving a presentation on buying vacation
property might offer a no strings attached discount to stay at a
popular resort. When you offer additional value, you are in
effect, increasing the cost of NOT taking action because you are
creating the perception of missing out on something special and
valuable.

Bottom Line

To get people to take action--to sign up for your free teleclass,
or buy your new book, or schedule an appointment, you need to
make sure that the cost to your prospects of not taking action is
higher than the cost of taking action. You can do this by (1.)
lowering the cost of taking action or; (2.) increasing the
perceived cost of not taking action. 




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Judy Murdoch helps small business owners create low-cost, 
effective marketing campaigns using word-of-mouth referrals, 
guerrilla marketing activities, and selected strategic alliances.
To download a free copy of the workbook, "Where Does it Hurt? 
Marketing Solutions to the problems that Drive Your Customers 
Crazy!" go to http://www.judymurdoch.com/workbook.htm 
You can contact Judy at 303-475-2015 or [EMAIL PROTECTED]


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