Thursday, December 10, 2009

What Good Doctors Can Teach You About Sales

A couple of days in hospital makes you very aware of who is looking after you.

As I lay on my hospital bed during a brief stint last week, I was reminded of an excerpt from Malcolm Gladwell's 2005 work, Blink, in which he poses the question: "Why are some Doctors more likely to get sued than are others?"


Gladwell, author of other well known social commentaries such as the Tipping Point and Outliers, thinks he has the answer.

He cites research by Professor Wendy Levinson, of the University of Toronto, that recorded hundreds of conversations between a group of physicians and their patients.

In one corner, were surgeons with a black mark against their names; these were people who had been sued at least two times.

In the other, were those with a clean slate. For one reason or another, none of their patients had decided to take them to court.

Significantly, Levinson found no difference in the quality, and quantity, of the information that the two groups of doctors delivered to their respective patients. In other words, both groups were essentially delivering the same message.

Where the second group showed themselves to be different however, lay in the way they talked to the patients. In short, group number two gave the impression they CARED…which seems to have been a determining factor when patients decided whether they would sue, or not.

So how did the Doctors with the unblemished record do this?

Three ways…

Firstly, they consulted with their patients for an extra three minutes (on average).

Secondly, they were more likely to use orientating comments designed to give patients a certain amount of control over the diagnostic process. For example, a Doctor might tell a patient up front: “First I’ll examine you, and then we will talk the problem over”. Or he or she might seek permission from the patient to tell him more: “Go on, tell me more about that”.

Finally, they were far more likely to inject humor during a visit.

On their own, these differences might not seem like much. Collectively however, the extra time, the delicate “framing” of procedures, and the capacity to generate a smile, obviously went a long way toward creating the impression, that these Doctors CARED…

When you think about it, the traits that these doctors exhibited toward their patients, are not dissimilar to what is required in effective selling.

Just like patients, consumers often need their problems diagnosed. And just like patients, it’s likely that they too, may be wary, of giving too much away to the wrong person.

Finally, consumers, like patients, probably want to do business with someone they like.

Which makes Levinson’s research about the doctors who don’t get sued…

Very INTERESTING…

The next time you interact with a customer, try to:

1. Allocate more time

2. Give more assurance when “diagnosing the problem” and to

3. Have more fun …

Then sit back…

And see if your sales don’t improve.

Wednesday, December 2, 2009

A Surefire Tactic to Increase Your Sales

I bought a book the other day from Angus and Robertson, the Australian book retailer.

As I handed over my credit card, the shop assistant informed me that because I was spending more than $20.00, I was entitled to choose from a selection of items at the discounted price of $12.00 each.

As the guy told me this, I went through an interesting experience.

Even though I knew that he was engaging me in what is commonly called a “cross-sell” in marketing circles (think software packages, which are often offered on top of the new computer, and you’ll get the idea), I felt quite powerless not to have a look.

And the more I thought about this afterwards, the more I realized the truth behind the theory that a little compliance goes a long way in sales.

In other words, because I had already said “yes” once and opened my wallet… I was that much closer to saying “yes” again.

Renowned social psychologist Robert Cialdini, of the University of Arizona, has coined a name for this phenomenon.

He calls it the “Law of Commitment and Consistency”, which is basically the desire of people to be consistent with what they have already done.

From a sales point-of-view, this law, if used wisely, can result in a lot more dollars in your pocket.

All you have to do is ask yourself: “What incentives can I offer at the time of purchase to increase the amount that the consumer spends with me?”

And then make that part of your sales process.

On-line you see this happen all the time.

Savvy Companies will often try to upgrade your purchase in the form of access to extra reports, upgrades to a superior version of the product, or if you are purchasing software, access to it in a more tangible form such as a disc.

Off-line this is the reason why McDonald's and Burger King employees ask whether you’d like to upgrade your purchase to a bigger size, and why your local car dealer asks whether you’d like leather seats included as the part of the package in the purchase of a new car.

The point is, these people ask these questions at the point-of-sale for a reason.

They know your first “yes” is likely to influence a second…which makes this a worthwhile tactic to consider if you’re looking to increase your sales.

Incidentally, despite the offer, I didn’t buy the extra book.

I know though, that provided the shop assistant continued to make the additional offer to every customer who broke through the $20.00 barrier, Angus and Robertson would have been very happy with extra profit at the end of the day.

Tuesday, December 1, 2009

All Words Were Not Created Equal

All words were not created equal.

Some look flat and sound flat.

Think of the word "nice" and you'll get where I'm coming from.

While others demand attention.

Not only is there an edge to the way they look and sound, they defy anyone to not be affected by them,  EMOTIONALLY.

I came across one of those words the other day.

The person who used it was describing the impact another person had on the rest of the group.

Want to know what the word was?

Toxic.

Now that's a word that well and truly fights above its weight division.

Monday, November 30, 2009

Some Pictures are Worth More Than a Thousand Words

They say a picture tells a 1000 words.

And it does.

But according to advertising legend, David Ogilvy, some pictures are more powerful than others.

As a case in point, in his 1963 work, Confessions of an Advertising Man, Ogilvy cited an example of a campaign his firm had been asked to create for the Dutch airline, KLM, in which they split test two advertisements, each with the same copy, but with different photographs.

In the first run, Ogilvy's company used photographs of planes to support the copy.    

In the second run, the destinations where the planes took KLM passengers were the "star" of the show. 

Care to guess which run generated more enquiry?

If this was a test run about copywriting only, I'd opt for the destinations.

That's because there's an old adage in copywriting: "Sell the sizzle, not the steak", or in layman's terms, focus on the benefit, not the feature.

Having said that, I wasn't so sure with the photographs.

Did the same fundamental apply?

As it turns out, I need not have worried.

The "sizzle" not only trumped the "steak" again this time...it did so by a whopping 2 to 1.

So how applicable are Ogilvy's findings from 1963 to the world of 2009?

Very.

It might not be the steadfast rule it was 46 years ago (that's because companies like Apple through innovative design have made features very important to consumers), but it's still a very good guide as to what sort of image should accompany your copy, the next time you decide to create an advertisement.

 

Friday, November 27, 2009

The Power of a Great Story in Direct Response

Last week, I watched a documentary called the Secrets of the Great Plague.

Even though I didn’t quite see the start of the programme, it really sucked me in…

Especially the part when the narrator posed a question: “Why did the Great Plague of the 1660s kill one third of the population of London, but spare two thirds?”

The more I watched this show, the more I recognised the power of the story telling behind it.

And as I thought some more, I realised that the content in this documentary had the makings of great copy.

The reason?

The story.

Perhaps the most famous contemporary example of the use of story in sales copy is the one attributed to American copywriter legend, John Carlton in creating his famous "one-legged gofer" ad.

Apparently, Carlton was conducting preliminary research on the item he was asked to write copy for, a golfing instructional video, when the pro behind the product “happened” to tell him about a one-legged golfer who was driving the golf ball a very long way. According to Carlton, when the pro saw how well this one-legged guy could strike the ball, he figured he must be doing something right, and so based his teachings in the video on that guy's swing.   

The interesting thing is that according to Carlton, this little “nugget” of gold was offered in passing by the pro, not in the actual interview. In other words, the guy didn’t recognise the power of this story in selling the product.

Fortunately, Carlton was looking for a “hook” such as this that he could “hang” his copy on...Something so extraordinary that it would be difficult for any self-respecting golfing “wannabe” to ignore.

And so, out of that story in passing, the following headline was born:

“Amazing Secret Discovered By
One-Legged Golfer
Adds 50 Yards to Your Drives,
Eliminates Hooks and Slices ...
and Can Slash Up to 10 Strokes From Your Game
Almost Overnight”

It was a headline to a direct piece that ran for over 12 years in a variety of print formats as well as on the web.

This was a successful ad.

So why did this ad work?

Carlton is convinced it was the hook. As he explained: "People, are never bored by unusual stories. The skinny kid who discovered a fast way to pack on muscle. The business owner who turned disaster into riches. The ancient doctor who stumbled on a way to add ten super-healthy years to your life."

And as for the mystery as to how two thirds of the people of London survived the Great Plague?

See if you can work out the answer by studying this headline I crafted based on a product designed to help sufferers of AIDS in 2009. (Note: As I understand it, such a product is purely hypothetical at this stage).

Attention HIV Sufferers 
“Newly Discovered Gene
That Saved Millions in the Great Plague
Can Now Save You Too”


Wednesday, November 25, 2009

Has LG Gone Purple?

I was watching TV last night when an ad got my attention.

It was about the new LG Borderless TV, a television which, as the name suggests, has no border lining the screen.

Ordinarily, I probably wouldn’t have taken much notice of this ad.

But because I’ve just finished reading Purple Cow, the landmark work by American marketing guru, Seth Godin, the fact that LG was pushing the viewing area to the edge of the screen struck a chord with me.

For those of you who are unfamiliar with Godin’s insights, he is generally worth a read.

And without giving too much away, the message of Purple Cow (published six years ago) is essentially this…

If you want to be successful in business, find a unique selling proposition (USP) in the field you operate in (nothing new there) that is truly….

REMARKABLE.

Something that gets your market so enthusiastic about your product...

That they can’t help but talk about it.

So how do you do this?

Godin suggests you look “to the edges” of your industry for inspiration (hence the “aha” moment for me when I saw the LG ad).

Ask yourself lots of “what if” questions (start with the five P’s – product, price, promotion, positioning and packaging)…

And see what you spit out.

Did the people at LG read Purple Cow?

I don’t know.

What I do know is that in order to have made the decision to remove the borders on a TV screen, they must have at some point asked the question: “What if?”

If you’d like to know more about creating your own “purple cow”, I suggest you read Godin’s book.

Alternatively, you can follow Godin on-line here.

Tuesday, November 24, 2009

Morello's Win a Win for the "Customer"

Twenty-three year-old Andrew "Morello", the “boy from Moonee Ponds”, is the first winner of the Australian version of The Apprentice.

He will join Mark Bouris, the man behind Wizard Home Loans, in heading up a brand new national venture.

Though Morello had lots of virtues, I think the main reason he took out the title was his commitment to customer service…

And I’m not talking about the kind most people associate with the term.

What I am talking about is the kind that goes on behind closed doors...

In the workplace.

Between employer and employee.

Most people don’t see employees as “customers”.

But Morello did (or at least appeared to).

More than once during the series, Morello outlined his belief that people rise to the occasion when you entrust them with responsibility.

Rather than dictate. He guided. And rather than have his team mates report in, he empowered them.

It was a model of leadership that contrasted markedly with that of his opponent in the final, 31 year-old mother from Perth, Heather...who, though hardly "Hitler", was far more focused on getting the job done, than in building relationships with her teammates.

In the end, I think this focus on results over relationships cost Heather the job.

What about the organization you work for?

If it were in the running for a new apprentice, how would Morello and Heather have been split?