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Sales Strategy & Management

10 Ways To Get High-Roller Customers Spending More With You

Trust, consistency, quality and branding are all good ways to court high-end customers.

Eric Siu

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High-quality customers can be defined in several ways. They may be customers eager for your products or services and predisposed to spend as soon as they find your website. They may be wealthy individuals with disposable income and desire for status who crave what you offer.

No matter how you define high quality, these are the customers who arrive at your site, look at your offerings, and say “Yes!” with their shopping carts.

What do high-quality customers want?

The best customers are the right customers. These are the people whose needs align perfectly with the benefits your products offer them.

Such clients want:

  • Products that meet or exceed expectations
  • Products perfectly aligned to their wants, needs and desires
  • Exceptional service at all times
  • Prompt responses to inquiries or questions
  • The feeling of being ‘special’ to your business

When the perceived value of a product or service overwhelmingly exceeds the price tag, high-quality clients will spend money.

Psychological tricks, such as imparting value through uniqueness, as well as focusing on benefits, can help you build sales among these valued customers.

To attract high-end clients, you have to make your business appealing.

Related: You Need To Sell, Be A Salesman, Be A Smous

women-shopping-in-a-clothing-store

The following 10 tips will help you attract the high-end clients in droves.

1Increase your prices

This sounds crazy to some, but think of it this way; your high-end customers are used to higher prices. Although they may like a bargain as much as the next person, higher prices denote luxury and exclusivity as well as value. Try increasing, rather than decreasing, your prices.

2Sell the benefits

A common mistake many business owners make is to sell from the features of a product. Benefits, however, are what sells a product. High-end customers crave products with benefits that perfectly align to their wants, needs, and desires.

Articulate the benefits of your products and services clearly throughout all of your advertising. When the benefits of your product align to what high-end clients want, the products practically sell themselves.

3Leverage the uniqueness factor

Every product or service has some unique feature that can be leveraged in your marketing campaigns. Country of origin, craftsmanship, packaging… each of these features should be detailed after you’ve introduced the product through its benefits.

High-quality customers seek high quality (read: exclusivity) for themselves, and setting your product apart from the others is key.

4Hire carefully

Everyone from ecommerce call centre operators to the salespeople greeting customers in a retail store must exemplify the brand image that high-quality customers want to see.

Hire employees carefully, ensuring that they are both articulate and service-minded. High-quality customers will spend more at shops with great service, but to provide such service you need the right people working for you.

Related: How You Can Make Those Sales When Nobody’s Buying (Yes It’s Do-able)

5Reward good clients

Send handwritten thank-yous to your best clients. Thank customers with cards, gifts and unexpected offers. Reward your best shoppers with incentives to return and shop more.

6Consider your add-on sales

High-quality customers will spend more when the add-on sales to their original purchase make sense and make them feel their shopping is complete. Make sure that add-on sales are part of your merchandising.

7Spend on visual branding

The visual branding for your company is very important to attract high-quality customers who will spend more money. If your company looks high-end, it will attract high-end customers.

A good graphic designer can make your company’s image resonate with your high-end customers so that they love the cachet of shopping with you.

8Focus your marketing with laser-like precision

If you use traditional direct mail marketing, print or radio advertising, focus with precision on the demographics you are trying to reach.

Look for advertising venues that reach the high-end, wealthy customers, such as luxury product magazines or radio stations that reach wealthy zip codes. Use zip-code targeting and census blocks to reach the wealthy at home with direct mail.

Think outside of the internet to reach the wealthy, who may already be bombarded with advertisements and general marketing online.

Related: It’s Sell Or Die Because Sales Are The Lifeblood Of Every Company

9Convey scarcity or urgency

Urgency or scarcity always encourages consumers to spend more. If only five of a specific product were made, be sure to state this clearly. Make it obvious that only a select few have what you are selling.

10Establish trust through consistency

There’s a good reason why many high-end brands are also long-lived brands. Consistency establishes trust. Time is one way to build consistency, with customers returning for the same quality items over and over again.

Tiffany, Saks, Hermes and other high-end retailers build upon this theme of consistency and trust. Even if your company is new, you can also boost trust with your brand through consistent marketing, messaging, and product quality.

High-quality customers who will spend more money with your company are out there. It’s your job to focus your marketing message, define and refine your product and brand strategy, and make continual improvements over time to achieve your goals.

Trust, consistency, quality and branding are all good ways to court high-end customers to your business.

This article was originally posted here on Entrepreneur.com.

Eric Siu is COO of of Single Grain, a digital marketing agency based in San Francisco. He also co-runs Storemapper, a store locator widget for e-commerce stores and other businesses.

Sales Strategy & Management

Five Ways To Stay In Control Of Selling Your Business

Even when you are ready to sell your own business, you need to maximise your benefit by keeping control of the sale process.

Andrew Bahlmann

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Each and every one of the many hundreds of business owners that I have engaged with over the years has always identified immediately with one key business strategy – the need to have control. After all, they became entrepreneurs to have control over their own business and business ideas, to control their cash flow and the growth of their business.

Yet, curiously, they often apply a different set of standards when the moment comes to sell that business. They do not seem to realise how quickly and how dangerously they can lose control.

The all-too-common scenario is that one day, out of the blue, a business owner is contacted by a “would-be” acquirer who is interested in buying the business. It is probably only in hindsight that they would pinpoint this as the moment when entertaining the approach meant that they lost control of the sale process.

From that moment, the potential acquirer will define the hoops through which the seller must jump before a serious offer is put on the table. The acquirer insists, for example, on full due diligence before a detailed offer is submitted. This leaves the business owner feeling overly exposed for an extended period of time.

But worse is often to come. Eventually, at the eleventh hour, the potential acquirer puts a ridiculous offer forward, based on all the “risks” they believe they identified in the due diligence.

The acquirer conveniently concentrates on the negative. They forget about the embedded value and future growth potential that the seller’s business will offer.

Or sometimes, they complete their due diligence and walk away. That leaves a baffled business owner watching them drive away from the premises – and left with nothing to show for the process but raised blood pressure and the haunting question, “WHAT happened there?”

These are unpleasant truths indeed – but ones that you can avoid. Such scenarios underline why keeping control is critical when selling your business.

This control is not about taking ego and arrogance. It is about taking an approach that is calculated and structured. That way you will drive the process on your terms and according to your agenda. And that critically will mean that you will be able to protect your confidential information along the way so you are not left feeling exposed at the end of the process.

Related: Never Lose Control When Selling Your Business

Whether you are approached to sell your business or are proactively going to market to find an acquirer of strategic partner, always protect yourself with these five key tips:

1. Always have a plan

Your plan should encompass: the timeline, the terms and the rules of engagement between the acquirer and yourself moving forward. By putting your plan into place, you take and keep control of the process.

2. Interrogate the acquirer

Make sure that as early as possible in the process, you understand these factors driving the potential acquirer:

  • What is motivating their interest in buying your business?
  • Have they bought a business before?
  • How would they value your business?
  • How would they fund the acquisition?

If your potential acquirer has bought a business before, insist on speaking to the business owners who sold to them so you can find out about their experience of working with the company to complete the sale.

Ensure that a potential acquirer gives you a valuation formula upfront so that you can be sure you are both batting in the same ballpark. If you are able to speak with a previous seller, find out how the deal was valued and structured in that instance.

If your potential acquirer has to raise funding, insist on speaking direct to the funder to make sure they are fully committed – and that their valuation methodologies are aligned with what the acquirer is telling you. If there is a mismatch, it is the funder’s valuation that ultimately counts so you may need to engage with the funder.

3. Secure your offer before due diligence

Always make sure that your potential acquirer puts forward a non-binding offer before commencing with due diligence. Doing this will give you comfort that the acquirer is serious. It will also identify for you where the acquirer sees value in your business and what risks they perceive – and what risks there might be for you.

4. Ensure due-diligence terms are agreed

Always make sure that the terms of the due-diligence process are defined and reconcile back to the offer. Due diligence is another point in the process that confirms where your potential acquirer sees the value of your business and identifies risks. Commercial reality and practicality must drive the sale process so make sure you are not manoeuvred into being bogged down in the due-diligence list, which often consists of hundreds of requirements.

5. Always have a timeline

Your time is valuable so make sure that both you and your potential acquirer realise and respect that. Protect yourself with a timeline – you should define the milestones and deadlines of the sale process for your acquirer.

These five strategies will ensure that you retain control of the sale process, just as you have controlled your business development. That will mean that it is less gruelling for you and that you can be confident about selling on terms that you will look back to happily.

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Sales Strategy & Management

Low-Hanging Fruit: Why You Need To Be Selling To Those Dormant Customers

Remember those customers from the past? They may be willing to buy from you again (and again and again).

Sujan Patel

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When I was a kid, I liked getting new toys. What kid doesn’t, right? And every time I got a new one, it seemed like the only toy in the world. I forgot all about the other toys I already had – I only wanted to play with that one.

The sales world is not that different – because of its focus on acquisition. Everyone wants those new customers, and they put all of their efforts there. But by doing so, they forget all about the customers they already have.

The problem is, you can’t let “new toy syndrome” affect your sales strategy. New customers are great, but you shouldn’t forget that other place where real opportunity lies: with your dormant customers, the ones who have already bought from you in the past.

Acquisition vs. reactivation

Companies spend tons of time and money acquiring new customers. But eventually those new customers become dormant. When that happens, most companies just go out and find more new customers. Yet that’s not really the most profitable approach.

If you have a huge dormant customer base that is being neglected, you’re leaving money on the table. And dormant customers are actually more valuable than you might think. According to research by Invesp:

  • It costs five times more to acquire a new customer than to keep an existing one
  • The probability of selling to an existing customer is 60 percent to 70 percent, while the probability of selling to a new prospect is just 5 percent to 20 percent.
  • Compared to new customers, existing customers are 50 percent more likely to try new products and 31 percent more likely to spend more money
  • When they increase customer retention rates by 5 percent, companies can increase profits by 25 percent to 95 percent.
  • Despite the obvious benefits, Invesp finds that only 40 percent of companies it surveyed had an equal focus on acquisition and retention — and my guess is, even less focus on reactivation.

Related: How To Interview Prospective Customers

The value of dormant customers

There’s so much emphasis these days on leading a customer through the sales funnel and closing the deal; even the term “closing” implies an ending. But the sale shouldn’t be the end of your relationship with your customers.

If a customer has purchased from you in the past, you already know you’ve done something right. This customer already knows and likes your business – enough to have actually bought from you. So, wouldn’t it make sense that he or she would be likely to do so again?

The caveat here is that this willingness may depend on your specific product. If, for instance, you sell wedding products, customers will most likely buy from you for only a limited time. But for other businesses, this won’t be the case. Your products and services can be repurchased, or one purchase may be able to lead to the purchase of another, related product.

Whatever the case, you should find it easy to identify those customers with whom an opportunity lies to sell to them again (and maybe again and again).

A smooth sales process

Selling to dormant customers can actually be easier than selling to new customers. That’s because you’ve already done so much of the legwork already. There’s no need to do any kind of lead generation, for instance, because you already have the lead, along with much of the information you’ll need to sell to these people. That would include:

Contact information: You probably already have their email, phone number and any other information you need to reach out and restart the sales process.

Preferences: Because you’ve worked with them before, you most likely have notes on their preferences or any circumstances that could influence what they buy. Plus, you know what they’ve already bought, which should give you insight into what they might buy now.

Personality: It’s possible you’ve even already developed a relationship with a return customer. Customers like familiarity, and if they know you and have worked with you in the past, they’ll be more likely to take your calls and listen to what you have to say.

Related: 5 Reasons Why Your Business Is Losing Customers

Implementing a reactivation programme

When you’re building out your reactivation program, one of the main things you need to learn is why these customers went dormant. Why did they stop doing business with you? Send surveys or ask directly; this will allow you to shape your strategy going forward.

While new customers are key to business growth, if you want your business to last, you also need loyal customers. One-time buyers aren’t going to be your best advocates. But those customers who keep coming back again and again are going to recommend your business to others and be exponentially valuable.

As a result, your reactivation programme – you have one, don’t you? – will be your first step toward nurturing those customers who may in turn become loyal advocates.

This article was originally posted here on Entrepreneur.com.

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Sales Strategy & Management

After Losing A R280 000 Deal, Here’s What I Changed In My Email Follow-Ups

Looking back, these are the things we could have done differently to win the deal.

Kwesi Sakyi-Gyinae

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A while back, I spoke with a potential customer who had an interest in working with us. We met a few times to review the proposal. We narrowed down the project scope and showed how our team could execute. There was definite interest. If we signed the deal, it would be worth $21 000 (R280 000).

But, there was one challenge: The time was not right. The prospect’s team was restructuring their business. That meant they would only move forward after that was complete. So, I put a note on my calendar to follow up with a call every month.

But, then a few months later when I called him, he said, “Kwesi, we just signed a contract with another vendor. You should have called me earlier.”

“What?” I said. “I had spoken with you a month before.”

“I know, but I didn’t remember,” he said. It was a punch to the gut.

What I learnt from the loss

That loss would become a significant learning for our team. When we reviewed why we lost that potential customer, we realised one thing; the key was in the prospect’s response. He didn’t remember us, even though I had ‘followed up’ a few weeks earlier.

We did not have enough compelling top-of-mind awareness. Yes, we followed up, but we were not sticky enough. We didn’t dominate the prospect’s mind share. If we were going to dominate, we needed to nurture, not just follow up.

Related: How soon should I follow up on a quotation?

Three things we do differently now

professional-email-tricks

1. Make it (feel) personal

If you plug your prospect’s email into a fancy email marketing template, it rarely feels personal. Emails with fancy images and fonts don’t connect on a personal note. Instead, write your emails in plain text. Would you write an email to a friend or colleague using fancy email templates with bright colours? An email that feels personal is trustworthy.

Another smart way to do this is to start your email by referring to an ‘undeniable, confirmable truth.’ Communications strategist Ray Edwards describes why this is important in his book How to Write Copy That Sells: “One of the hurdles we have to overcome is scepticism and the fact that our readers often don’t believe us… or aren’t sure if they believe us.”

When you’re nurturing a prospect, you want to build trust. The more trustworthy you are, the more likely you are to get the deal. For example, we now start our nurture emails with: “Hi Joe — it’s Kwesi here.”

2. Tell a story of value

This is one of the critical email follow-up techniques we developed after losing that deal. Most of our nurturing emails tell a story. We tell stories about new ideas the prospect can use. We tell stories about lessons we’ve learnt from failing. We tell stories about our fears and hopes. Great stories evoke emotions that build trust. Humans have been telling stories for more than 20 000 years.

Researcher Paul J. Zak found that stories with great characters cause the release of oxytocin, the brain’s shortcut to ‘it’s safe to approach others.’ The more oxytocin your prospect’s brain releases, the more willing they’ll be to help.

Discussing his findings in the Harvard Business Review, Zak noted that “character-driven stories with emotional content result in a better understanding of the key points a speaker wishes to make and enable better recall of these points weeks later.” That’s why storytelling is sticky. It makes you more memorable.

Related: How can I manage my email inbox?

3. Be credible

The key to being credible is to show social proof. Nurture the prospect by sharing specific recent results of a similar client. I’m not talking about sending a lazy, generic email about a new client you signed. Craft a thoughtful story about a client’s challenges and how your team helped them.

Your social proof story can include these: What was the specific challenge? What were the emotional effects of the client’s challenge? How did your service or product help solve that challenge? What are the new emotions after the results you helped them get?

These three principles have become the foundation of our follow-up emails. We use them to build a nurturing sequence with prospects who are a fit, but not yet ready to buy.

The point is: Have a system to continue adding value to prospects who say it’s not a good time. You spend enough time to get prospects to meet with you. Put in a little more effort to engage with them with value until they are ready. Invest in your relationships for the long term. That way when they are ready to buy, you’ll be the first who comes to mind.

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