In this episode, Jeff Kofman and I discuss his journey from journalism to tech startup CEO. Jeff explains how he came up with the idea for Trint.com, an AI (artificial intelligence) transcription service. He then shares insights into the pricing strategy for their SaaS (software as a service) product.
[Read more…]The Impact of Technology on Value with Joe Woodard – 120
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In this episode, Joe Woodard and I explore the impact technology has on the value you create for your customer. Joe explains why, although you cannot ignore technology, it is only a tool to achieve the desired outcome for your customer. Then, we explore the theme Rise of the Machines for Scaling New Heights 2017.
[Read more…]Pricing, Procurement & the Ad Agency with Tom Lewis – 119
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In this episode, Tom Lewis and I discuss the state of value pricing in advertising in the United Kingdom. Our conversation explores having an effective value conversation with procurement. Then, he shares insights from the keynote speakers at the 2017 IPA conference in London.
[Read more…]Be Nice: The Rules of Customer Service with Lee Cockerell – 109
Lee Cockerell was a guest a previous episode of the Art of Value Show. At the end of that show, Lee suggested we do another interview to discuss the rules of customer services from his book The Customer Rules. While we will not cover all 39 rules, we will cover a dozen or so during this episode.
Lee is a former Senior Vice President of Operations at Walt Disney World Resort. He is the author of three books, with a fourth due in late 2016. He is a teacher at Thrive15 and Sports Mind Institute. His website is LeeCockerell.com.
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Acting Like a Professional
What is the most important thing you can share about pricing?
Is the customer getting good value for the price? When a customer questions Lee's speaking fee, he reminds them: Price is what you pay, value is what you get. Value can be expensive and is worth it. Lee recently experienced great customer service from a flooring contractor at his home.
In The Customer Rules, Lee says he is a student of customer service wherever he goes. He learned the art of great customer service by working at Hilton Hotels, Marriott Hotels and Disney World. Lee shared a story of receiving outstanding service while applying for the SAM program to do business with the federal government.
What did your grandchildren say is the most important rule in customer service?
Lee's 12-year-old granddaughter said, “Be nice.” And his 10-year-old grandson said, “When you serve, you are always the giving one.” Sometimes the simplest answers come from children.
How could the political parties in the United States apply The Customer Rules?
Focus on having integrity by not denigrating the character of others. Your reputation is defined by who you are and what you say. Are you helping people? Are you making a difference? Set an example of high integrity.
What is the significance of Rule #8: Always act like a professional?
At Disney World, Lee told his team, “You don't have to be happy to work at Disney. You have to act happy for 8 hours.” Professionals stay professional. Never raise your voice to a customer or employee. The US military is an outstanding example of being a professional on the job. Being professional is not a title. It is a behavior. Everyone can act professionally.
What is the meaning of Rule #4: Don't get bored with the basics?
The basics are manners, courtesy, honesty, trustworthiness, being a gentleman or a lady. Walt Disney said, “Keep it clean and friendly, and everything will be fine.” No matter how good someone is, how good are they?
What is the significance of Rule #7: Look sharp?
Even though times have changed, there are certain things about your appearance that will either enhance or hurt your income. Human Resources will not tell you, but you will not get promoted. First impressions are everything. If you do not look sharp, you are taking a chance. Your image affects how people perceive your judgment.
Serving Like a Professional
What is the story behind Rule #15: Be like a bee?
A young girl at Disney World once asked Mr. Disney, what do you do? His response was, “I am like a bee. I buzz around the whole company looking for good ideas. When I find one, I share it with another department. I am the pollen and the pollinator. I make sure the best ideas are pollinated around the company.”
What is the significance of Rule #17: Listen up?
Due to our mobile devices, we have lost the ability to concentrate on the current task. Therefore, when we are with people, we have trouble looking them in the eye and paying attention. To listen actively, you must figure out what the customer is not saying. What is the hidden meaning? It is very annoying to the customer when they can tell you are not listening.
What is the meaning of Rule #20: Be a wordsmith?
Think about the words you use. No one likes to be called a subordinate, the girl at the office or my employee. Use “Yes sir,” “Yes ma'am,” “Mister” and “Misses” when appropriate. Avoid profanity in the workplace because it also affects how people perceive your judgment.
What is the story behind Rule #23: If they say they want a horse, give them a motorcar?
Henry Ford said, “If I ask the customer what he wants, he would say a faster horse.” The customer does not always know what the possibilities are. No one knew they wanted an iPhone until Apple created it. No one knew they wanted free transportation from the airport until Disney offered it. In other words, what are you not doing for the customer that you could be doing?
What is the significance of Rule #28: Know the difference between needs and wants?
One person says, “I need a car,” and he wants a Volkswagen. Another person says, “I need a car,” and she wants a Mercedes Ask questions to understand the “why” behind the need/want. The first person wants economical, reliable transportation. The second person wants to portray a successful image.
The restroom is probably the best indicator of the quality of customer service. In fact, when Lee's family goes to a restaurant, his grandson first checks out the restroom and gives it a rating on a scale of 1-10. Bill Marriott, the founder of Marriott Hotels, would first check out the kitchen at a restaurant before agreeing to eat there.
Timing Like a Professional
What is the meaning of Rule #26: Server to WIN?
WIN stands for What's Important Now. You win in life by doing what is important now. If a customer walks in your store, what is important is serving them immediately. Make the customer feel special.
What is the significance of Rule #27: Make ASAP your standard deadline?
Of course, ASAP means As Soon As Possible. In the age of real-time communication–texting, tweeting, chatting–the guest expects a response quickly. Lees says, “You need to get better faster and get faster faster.” Starbucks allows you to order and pay for your coffee from a mobile app. It is ready when you walk in the door. 30 seconds is a long time when you are the customer.
What is one of your favorite rules from The Customer Rules?
Professionalism and personal appearance. Can you image if Cinderella was not dressed properly? What if a policeman showed up at your house with his shirttail out and his hat missing? How you look is part of who you are. If you question their self-judgement, how can you trust them to have good judgment with your customers?
What is one of your best stories about creating value for a customer?
When Lee quotes a speaking fee for an event, it is for the day, not just the speech? He wants to deliver as much value to his customer as possible. He will have lunch with your sponsors or host a break group for VIPs as part of the same fee. He also shows up to the event early to learn about the audience and atmosphere.
About Lee Cockerell
- Website: LeeCockerell.com
- Podcast: Creating Disney Magic
- Book: Career Magic
Align Value with Your Target Market with Aaron Vidas – 108
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Aaron Vidas is the founder of StrategyBox, a marketing consultancy for $50M companies. In this episode, we discuss realigning your value proposition with a new target market. In the first segment, Aaron explains how he realized he was not aligned and the steps he took to change it. In the next segment, we explore how to research a new target market through interviews and conferences. He concludes with a couple of pricing stories from his experience.
Aligning Your Value Proposition
What is the most important thing you can share about pricing?
You have to have alignment with the customer, not simply agreement. Agreement is when someone nods their head during a conversation. Alignment is when they take action to support the course of action to which they agreed.
How did you discover you had an alignment/pricing problem in your business?
During a run, Aaron had a realization that his customers loved the marketing plan he created but they had trouble executing on it. He then asked the question, “Am I doing the right thing for the wrong audience?” He created a new business plan and then interviewed a couple of CEOs in the new target market to verify his hypothesis.
Was the decision process more emotional or analytical?
It was both. From an emotional standpoint, it felt like a monumental decision. It was a slow crescendo in frustration over time. Then the final straw that broke the camel's back.
For the analysis, Aaron asked two questions, “Do I need to create different value for the same customers?” or “Do I need to create the same value for different customers?” Then he went to a cabin for the weekend and crunched the numbers.
His coach helped with the emotional and analytical aspects. The value of an outside perspective is that without objectivity there is no innovation. Aaron suggests the book From Darwin to Monger to learn about cognitive bias in decision-making.
How did you make the shift to serving a different customer?
His first challenge was age-bias. Would the CEO of a $50-million company listen to a twenty-something consultant? Aaron overcame it by interviewing potential customers. He also learned he would have to change the form of the offering.
Next, Aaron took steps to position himself as an authority for his target market. He wrote a couple of white papers and booked speaking opportunities at conferences attended by his new customers.
Researching a New Target Market
How did you overcome the intimidation of interviewing potential customers?
It is OK to be uncomfortable. Have the courage to ask, “Would this be helpful to your company? If not, why not?” Learn who they are and what is the problem you can help solve.
The conversation is not a zero-sum game. Not only do you receive valuable feedback, you can help the interviewee generate new ideas. You serve the customer by asking how to create value for them.
How do you research how the customer creates, captures and communicates value?
Aaron recommends the book The Business Model Canvas. It provides a framework to understand how a business operates. It teaches you how to ask questions to understand the cost of a problem and the value to solve it.
How do you find the conferences your target customers are attending?
Once you have your foot in the door at one conference, it is easier to book the second, third, etc. Use video to prove you can speak with confidence to the event organizer. If you receive a no, ask why it was a no. Positioning yourself as an authority is the foundation of your outreach.
Stories from the Trenches
What did you learn from Thomas Nagle, co-author of The Strategy and Tactics of Pricing?
You can charge for value. You do not have to use cost-plus pricing or match your competitors. There are tools to evaluate the economic benefit of your product or service to the customer.
What is one of your best stories about creating value for a customer?
Aaron is a fan Principles by Ray Dalio. He learned that one of his customers was also a fan. He introduced his customer to a contact of Ray's which led to the customer meeting Ray in person. The customer purchased two around-the-world tickets for Aaron to say thank you.
About Aaron Vidas
- Website – StrategyBox.com
- Sales Strategy Guide – StrategyBox.com/aov
Revenue Generation for Ecommerce with Kurt Elster – 106
Kurt Elster is an e-commerce consultant who specializes in the Shopify platform. He is a founder and partner at EtherCycle, and host of the Unofficial Shopify Podcast. He earned his MBA from Illinois Institute of Technology. Kurt is a newlywed, and the theme for his wedding was “Day of the Dead,” the Mexican version of Halloween.
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Focusing On a Single Product
What is the most important thing you can share about pricing?
Charge more. In the e-commerce space, businesses regularly undercharge and then go straight to discounting to move product. People tend to undervalue themselves and their brand. It is rooted in misunderstanding their value proposition.
Because it is so easy to comparison shop on the internet, price shoppers will usually go directly to Amazon, assuming it is the lowest price. This means customers for smaller brands maybe value, rather than price, shoppers by default.
Who is a customer you have helped develop a premium position?
Everest Bands sells replacement bands for Rolex watches. They incorrectly assumed their customer wanted to customize their Rolex. After conducting a survey, they learned their customers had an active lifestyle and wanted to avoid scratching the original band.
They asked their customer two questions. 1) Would you recommend this product to a friend? 2) To what kind of person would you recommend it and why? Ironically, the customer wound up describing how they see themselves and the reason they bought.
How was Everest Bands able to leverage their premium position?
They changed the message of their marketing to “preserve your Rolex's bracelet by buying an aftermarket one.” The value proposition became an insurance policy for an $8,000 watch. A year later they added a bracelet-preserving case to their products.
What is the most common mistake you see in e-commerce?
Not focusing on a single pain, single product, and single message. When you have a singular focus, you can really understand who the customer is, why they buy and the lifecycle of the product. Then you can scale the product line or move sideways into companion products.
You cannot experiment with your pricing until you understand your positioning. Then you can use anchor pricing and bundling to your advantage.
How did you transition to become an e-commerce consultant?
Ethercycle started by narrowing once, and then again and again. They went from generalist to e-commerce to Shopify to revenue generation for Shopify stores. Kurt asked his best customers what he did best to learn their perspective.
How did you choose the five criteria on your Why Ethercycle page?
Kurt actively disqualifies leads because he only wants to work with his best customers. This allows him to work with customers he really enjoys and quote premium prices. Being picky about your customers allows you to charge more and attract more quality customers.
Focusing On Revenue Generation
What is revenue generation?
The common strategy is conversion rate optimization. Remove the friction in the buying process to increase the percentage of customers who purchase. However, other strategies include increasing customer lifetime value, increasing average order value, or creating subscription revenue.
For example, increasing customer lifetime value. It is easier to sell to the same customer twice than to two different customers once. Kurt worked with a custom mouthguard supplier to create a Facebook campaign to sell the second mouthguard at a 25% discount.
Do you recommend offering options for e-commerce?
Yes. You can do anchor pricing against your own products. Or you can offer a bundle of a product with some accessories. Then you can create a premium bundle. The result is often more revenue than sales of the product alone.
Do you leverage A/B testing with e-commerce stores?
It is difficult for small stores to have a large enough sample size for split testing. However, Kurt does experiment with ideas that have worked for other customers. Customer mindset and tendencies can vary widely by industry.
What is your experience with charm pricing, prices ending in 7 or 9?
Kurt has done some limited experimentation and prices ending in 9 usually sell better. However, this is not a one-size-fits-all rule. You must consider the context of your customer and your value proposition. For example, charm pricing makes very little sense when selling professional services (accounting, legal, etc.).
What other strategies are effective in the e-commerce space?
Part of what the customer is buying when shopping online is convenience–not going to a brick-and-mortar store. Groceries are generally more expensive from Amazon. You can charge slightly more for convenience. This is an example of challenging customer assumptions.
What is your favorite assumption to challenge for your customers?
You are not your customer. Especially if you started your business to solve your own pain. Your positioning is not the same as the reason you started your business.
Focusing On Being Small
How much of your consulting involves Black Friday?
The shopper mindset in the holiday season is different from the rest of the year. How they use your e-commerce site does not change; however, the reasons they buy do change. It is dangerous to base your marketing solely on the fourth quarter. Successful businesses are planning the holiday season at least one quarter in advance.
How can you influence the average order size on an e-commerce site?
Use product upsells. For example, if a customer adds a camera to the shopping cart, display a popup window suggesting a tripod as an accessory. Usually, 40% of customers will take advantage of an upsell with a strong value proposition.
Another way is to use bundles. For example, if you sell a drone on your website, create a starter bundle that includes the drone plus the other accessories the customer will likely need for one price.
How much does Amazon influence the expectations of online shoppers?
Regarding usability, Amazon trains most shoppers what to expect, even if it is not the most user-friendly option. Free two-day shipping was not the standard five years ago. Now, it is.
At the same time, a smaller business can offer a more personal experience than Amazon. For example, you can provide live chat to answer questions, personalized follow-up and exclusive educational content to your customers.
Is productized consulting your only business or a gateway to customized services?
Productized services are the main line of business at Ethercyle. There are several advantages. First, they do not require writing a proposal. Second, the customer already knows the value they will receive before they call. Third, they eliminate the risk of buying because the customer knows the price up front.
What is your most popular productized service?
Website Rescues is conversion rate optimization for an existing Shopify store. For a fixed price, Kurt will go through the website and make the most valuable changes possible, often correcting the result of a DYI deployment.
What is one of your best stories about creating value for a customer?
Kurt created a website, RainyCafe, to play background sounds to help him concentrate while working. It was mentioned on Lifehacker and would up generating enough Google AdSense revenue to pay his rent for several months.
About Kurt Elster
- Website – KurtElster.com
- Twitter – @KurtInc
How to Create Value Through Positioning with Philip Morgan – 084
Philip Morgan helps custom software shops get more leads without hiring a salesperson. He does this by helping refine their positioning and create effective content marketing systems. He is the author of two books, The Positioning Manual for Technical Firms, and The Positioning Strategy Guide. Philip describes himself as an introvert who specializes in marketing for introverts.
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Narrowing Your Focus
- What is the most important thing you can share about pricing?
- The foundation of your ability to increase your prices is your ability to deliver more value to your customers.
- The key to delivering more value is your willingness to restrict or narrow who you serve and what you do for them.
- Narrowing is difficult because it triggers a survival instinct.
- People who are self-employed often did not study business or marketing but are figuring things out as they go.
- They believe they have to be flexible and adaptable to serve multiple markets.
- By narrowing his focus from a generic writer, demand for his services went up and so did his rates.
- What was the inspiration to specialize in positioning?
- Al Ries and Jack Trout wrote Positioning: The Battle for Your Mind and a series of articles in Advertising Age, speaking to Fortune 500 companies.
- “You need to own a word in the mind” is a poetic definition of what it means to market yourself.
- Choose an attribute that potential customers care about (safety) and be the company that provides it (Volvo).
- What is the difference in the mindset of a creative vs. a coder?
- E-myth discusses the differences between the manager, the entrepreneur, and the technician.
- Coders are very creative people, with coders applying their creativity differently in the reality of developing code.
- The idea of voluntarily agreeing to do something boring is terrifying to a creative person.
- Most software developers have above average intelligence and some things come very easily for them (such as the public school system).
- They will hit a ceiling on their business growth, due to underdeveloped marketing skills.
- The technician hits a rate ceiling, because they start to get pushback from their customers since they have focused on their craft, but not their business or marketing.
- How important is technology for a technical consultant?
- Technology is only about 20-30% of the value proposition for technicians.
- Understanding how to solve an expensive problem is the most important thing.
- Imagine you are responsible for P&L at your customer's company, you will have a very different way of looking at the world.
- You will realize that the things important to you (technology) do not matter in the world view of a P&L person.
- Fear is related to having to talk about yourself differently for marketing and sales.
[clickToTweet tweet=”Your ability to increase your prices is your ability to deliver more value to your customers.” quote=”The foundation of your ability to increase your prices is your ability to deliver more value to your customers.”]
Solve the Expensive Problem
- What is an undifferentiated specialist?
- Everyone is an undifferentiated specialist because being a jack-of-all-trades feels secure.
- You offer a weak value proposition when you are an undifferentiated specialist and are seen as a commodity.
- The strongest value propositions speak to a problem that someone has.
- You have to become specific and you force yourself into having to say no.
- Choosing what to focus on is challenging when you are new to the business world.
- Everyone has challenges to get over to make positioning have a benefit for them.
- There are other ways to have a successful freelance business, but positioning helps you deliver more value.
- Luck can take you a certain distance down the road and is not a bad way to get started.
- You can build a business you can retire on better with positioning.
- What is the “third way” to develop business?
- Luck and hustle are the first two ways to business development.
- Positioning is the third way.
- Narrowing your focus will help you understand your customers at a much deeper level.
- It is hard to build up real expertise when you are multi-tasking; you are always on a learning curve if you are a generalist.
- As a specialist, you learn a customer's language, how to help them make more money, and how to help them avoid problems endemic to their business model or their industry.
- When you focus on a specific market, you can identify a customer's preferences (conferences, podcasts, publications) which will let you target them better when your marketing shows up in those places.
- You can create value faster when you are well positioned.
- When you position yourself as an expert, it is easier to move away from the hourly billing model.
- The people who give Ted Talks are specialists.
- What is an expensive problem?
- An expensive problem is why the P&L person is looking for a solution.
- It could keep you up at night, trying to solve it.
- An expensive problem gets the business owner's attention, like getting more leads.
- If you can align your positioning with how to solve expensive problems, it is easier to win a customer.
- What is the economic value of an expensive problem?
- It usually boils down to increasing revenue or profit.
- If someone's value proposition has no impact on revenue or profitability, it is a much harder sale.
- Solving an expensive problem will make more money, will save money, will allow for more profit or has a clear return on investment.
- It is difficult to create something simple; simple is hard.
- Your message about value should be easy to spread through a referral network.
- Solving one problem for one audience helps you be more easily referred.
- Emotional levers are often easier to uncover when they are tied to revenue and profit.
[clickToTweet tweet=”You offer a weak value proposition when you are an undifferentiated specialist.” quote=”You offer a weak value proposition when you are an undifferentiated specialist and are seen as a commodity.”]
The Timeframe to Reposition
- What is the reasonable timeframe to reposition a business?
- Three to six months is what is expected to reposition.
- If a wolf is at the door, you probably need a different approach to achieve faster results.
- The larger your company, the longer the time frame will be.
- You can change your mind overnight, but your position needs to be changed with a concerted effort to marketing (website, social media presence, modifying case studies, refocusing your outbound marketing, etc.)
- You do not want to change your position and then have a potential customer go to your website and see something that does not support the position.
- Do market validation before you invest much time in marketing.
- What are the primary criteria to determine what to sell?
- “Can you sell it?” is the primary criteria.
- Does it get the attention of a large number of potential buyers?
- Is it economically viable?
- Do people want what you are selling?
- Cindy Alvarez wrote Lean Customer Development, which will help with prevalidation of doing what you want to do.
- Ask your previous customers about what you want to do.
- Interview people in your target, without your biases getting in the way.
- Talk to real people in a way that makes it possible for them to give you useful feedback.
- The Positioning Manual for Technical Firms will give you concrete instructions for how to research your market.
- What is your new book?
- The Positioning Strategy Guide talks about how to become a leader in your market.
- Leaders in an industry get free stuff: the lion's share of attention, free publicity, are asked to speak at conferences and asked for quotes from the press.
- The next version of The Positioning Manual will have more of the high-level insight from The Positioning Strategy Guide.
- How you implement the idea is from The Positioning Manual.
- What is one of your best stories about creating value for a customer?
- The Positioning Manual is a $49 book, that provides insights which will provide him an additional $1 million lifetime revenue.
- Sales have gone up 48% at a Member Up after they narrowed their focus.
- “This is by far the most valuable email I have ever received from an email list,” was feedback he received from a free email.
- The reachability and scalability of a book are hard to argue with as some of the best ways to create value.
- Part of his screening process for new customers is to talk about the lifetime value of their customers to make sure they will get ROI.
- Wes Higbee's episode, The Value of the Customer's Customer, speaks to that idea.
About Philip Morgan
- Website: PositioningCrashCourse.com
- Twitter: @Philip_Morgan
Picking Your Value Lane with Jeffrey Shaw – 082
Jeffrey Shaw is the go-to portrait photographer for exclusive clientele. His portraits have been featured on The Oprah Winfrey Show, in O Magazine and People, and on CBS News. He is a business coach who serves massively talented creatives who struggle with the business side. He lives on an island just off Manhattan, New York, and gets to work by cable car.
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Determining Your Lane
- What is the most important thing you can share about pricing?
- Pick a lane.
- Be aligned through your whole process – pricing, brand image, brand value.
- Strategically building a business is based on determining who you are serving first, and then focusing on serving them.
- Most people go in business backwards.
- Misalignment with regard to pricing is common.
- By looking at a brick and mortar business, you can determine whether or not you want to go inside just by looking at it.
- Why are you a photographer?
- Jeffrey went into business as a photographer when he was 20.
- He was not conscious of the business he was building then but seemed to have good business instincts.
- He does not look at what others are doing in his industry because he wants to zag when everyone else is zigging.
- He is out to take photos of “third children” since he does not have any pictures of himself growing up as a third child.
- Once he became conscious of his passion, it was easy to align.
- His 20-year old daughter had to put down her 8-year old horse.
- The man who put down the horse explained that he got into the business because his experience having a horse put down was handled poorly.
- His why made it an honor for Jeffrey's family to pay him.
- There is a true value in explaining your why.
- Why do you offer a performance guarantee?
- If you offer a money back guarantee, you are supporting someone's failure. Jeffrey wants to support someone's success.
- His “I will not let you fail” guarantee promises that if you are not happy, he will work even harder to make it satisfactory.
- The responsibility of success comes back to the entrepreneur.
- If you can look inward at your accountability and determine how you could do it differently, you gain the most control over your business and life.
- Jeffrey will fight harder to make the transformation that his customer is looking for; he will show up deeper.
- He has never returned a dollar in any of his businesses because he always approaches it with a commitment to success.
[clickToTweet tweet=”Building a business is determining who you are serving, and focusing on serving them.” quote=”Building a business is determining who you are serving, and focusing on serving them.”]
Pricing for Your Lane
- How do you price your services to create margin?
- The best thing you can do for your customers is to charge the maximum amount of money and get paid upfront.
- When you know you have margin, you can go the extra mile and the value created for the customer is tremendous.
- If you are paid before the service, you have an energetic level of freedom that empowers a healthier working relationship.
- When you get the money conversation out of the way, it frees you up to do your best work for the customer.
- The experience is different when you are pushed into making a sale.
- What is the typical way to price photography?
- The healthiest way of doing business is when there is a broad price range for people to pick their lane.
- Competition keeps industries healthy.
- One pricing formula is to take costs plus overhead and add your profit margin.
- Another pricing formula is to look at your competition and choose to be higher or lower, based on where you want to position yourself.
- Jeffrey recommends neither formula.
- How do you value the intangible?
- The current economy allows you to sell very intangible things, even if it appears you are selling something tangible.
- For the most part, the best way to sell and find your value is based on the transformation you create for customers.
- How can you put a price tag on the feeling you will have in 20 years when you look at the photo capturing your children, your family, or your wedding?
- For coaching, if you can create a transformation in someone's business by $150K within two years, then why would they not invest $20K?
- The value is in the transformation.
- Step #1 is to own the transformation – can you really transform people's lives?
- Step #2 is to determine the value of that transformation.
- Help people understand and appreciate the value of the transformation you can create for them.
- What questions do you ask to help the customer believe in transformation?
- Entice, compel and walk the customer down the path to their transformation.
- Be bold in stating how you can help transform people.
- Jeffrey's process is through the acronym, IMPACT:
- Invitation to walk someone down the path.
- Motivation, getting people talking about themselves and their dreams.
- Point out your value and talk about the transformation as a fundamental shift until the customer has an ah-ha moment.
- Act on the fundamental shift.
- Call to action is the actual sales process.
- Transformation is the deliverable.
- He has changed the value conversation into a standard process.
- It helps his team not rush the process; they might stay in the “P” stage for 3-4 phone calls.
- The organic part of the process is discovering the transformation.
- He will not take a ‘yes' on the first phone call, to slow down the customer to get them fully committed.
[clickToTweet tweet=”The best thing for your customer is to charge the maximum amount and get paid upfront.” quote=”The best thing for your customer is to charge the maximum amount and get paid upfront.”]
Responsibility for Your Lane
- What innovation in your business has created a pricing opportunity?
- The way his business innovates is based on the principle between what people know to ask for (acknowledged need) vs. what they really want (deeper need).
- Most often people ask for their acknowledged need, but they do not know to ask for their deeper need.
- To be successful, the burden of responsibility is on you to understand the people you serve.
- Since he did not grow up like his wealthy, exclusive clientele, he had to teach himself what the experience should be and what merchandising should look like.
- You can broaden the price range if you deeply understand the people you are going to serve.
- People call and ask for photos, but what they really want is to be responsible.
- When you have “money”, you have the freedom to be responsible.
- Parents with financial means believe their children should all be treated equally.
- Knowing the things that you do that are magical and for which customers do not know to ask, is what creates repeat clientele.
- Pick the lane that is true and authentic to who you are.
- You have to do the job of getting to know who your market is; it does not have to be a reflection of who you are.
- What does “When you know your life's purpose, you can wear many hats and hang them on one hook” mean?
- It is a cornerstone to how he works.
- Forcing creative people to focus on one thing blocks creativity.
- He is a freedom fighter for the creative entrepreneur to become unleashed from traditional business advice which does not work.
- Creative entrepreneurs go beyond artists and photographers.
- The freedom to be a successful creative contradicts a lot of common business advice.
- Asking a creative entrepreneur to pick a niche is too challenging.
- Instead, focus on what you stand for – everything else is a choice of medium.
- If you are in a niche, you might have to pivot.
- A diversified portfolio model is the best way to go.
- There is tremendous diversity even with brands like Apple and Virgin.
- What is one of your best stories about creating value for a customer?
- He delivered portraits one day and the customer was enjoying looking at them.
- She neatly put them on her lap in her Connecticut mansion.
- She said, “Your photography is stunning, but your packaging does not hold up.”
- She suggested he go to Bergdorf Goodman to understand how they package gifts and he took it as an assignment.
- He bought a $20 candle and was shocked at how gracious the salesperson was and then went to get it gift wrapped.
- He asked if he could watch how they wrapped the candle and they explained how and why they did what they did in detail.
- He packages every single portrait the way he was taught that day.
- Take the time to understand what people value, even if you do not come from that lifestyle, to serve them the best.
- The delivery and packaging create a great deal of value for his customers.
About Jeffrey Shaw
- Website: creativewarriorsunite.com
- Podcast: Creative Warriors
- Twitter: @jeffreyshaw1
Creating Value Through Public Relations with Josh Elledge – 077
Josh Elledge is the Founder and Chief Executive Angel at SavingsAngel.com, whose mission is to help families save money and build wealth. He has appeared on radio and TV over 1000 times and has a syndicated news column with 1.5 million readers. As a result of his media experience, he created UpendPR.com where he shares how to use PR to your advantage.
The references in Kirk's intro are:
- Tim Williams: Price Better by 1% and Earn 10% More Profit
- The 1% Windfall by Rafi Mohammed
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Pricing Opportunity in Your Industry
- What is the most important thing you can share about pricing?
- Just because there is an industry standard in pricing does not mean all customers accept it.
- In the PR industry, small business owners and entrepreneurs are rejecting the standard, saying that it does not work for them.
- That is an indication that there is an opportunity for a new pricing model.
- If your audience is asking for something different, are you willing to look at your products and services to better fit the market?
- At least 2-3 times per day, he hears a PR practitioner complaining about customers asking for guarantees and pushing back on pricing.
- If you hear objections consistently, that is an opportunity.
- If you can create something different that the audience is looking for, you put yourself in the drivers seat.
- What is public relations?
- PR is story telling.
- The advantage of traditional PR is that you are telling the story to large audiences in the media.
- There are still lots of very big audiences in traditional media.
- You can be a giver through PR rather than an advertiser.
- You can focus on serving the audience, who will love you for it.
- Large media includes podcasts, blogs, and social media personalities, not just TV and radio.
- Getting on a popular television show can go two ways:
- Hire a PR firm who will prep you and introduce you for a substantial price.
- Earn your way as a small business by getting in front of smaller audiences first and build your credibility.
- One bad guest can lose 10-30 viewers on a show; the producer cannot risk that outcome.
- If you earn your way onto the popular shows, you will get good at doing it, rather than surviving a crash course.
- Become a subject matter expert and avoid just pitching your product.
- What is the ROI from public relations?
- If you have a vested interest in the profits of your company, you are probably following a Michael Gerber philosophy to grow the business: do not work in the business, work on the business.
- To grow the company, you need to:
- Network with lots of influential people
- Tell your story to large audiences
- Getting a 3rd party validation is more powerful than blasting out an ad.
Know, Like Then Trust
- What is the difference between PR and marketing?
- Marketing and advertising, specifically, give you very high control but very low trust in the minds of the audience.
- PR, publicity, and media placement give you lower control over what you like to say, but you can focus on giving huge value to audiences to gain high trust from them.
- Give away your best stuff.
- Blow the socks off the audience so that they believe you are a genius and they are more interested in learning more about what you have to offer.
- People like doing business with people they know, like and trust.
- Third party credibility increases your value.
- How can you create value for the audience through media?
- If you get in front of a large audience, you will not get booked again if you only talk about the product.
- Mentioning the product or service twice in a typical segment is acceptable; three times is too much.
- If you are providing substantial value, do not get in your own way due to bad delivery.
- Understand that your delivery (your presentation) can make the difference between 100 people coming to your website and 10,000 coming.
- Good on-screen chemistry is invaluable.
- Always have good posture.
- Have a smile on your face, unless the topic is serious.
- Express affinity for the host.
- Do not look at the camera or the producer.
- Do not fidget.
- Do not bring a phone, your pen or change in your pocket.
- Just have a conversation with the talent.
- Use the talent's name from time to time.
- Practice by doing YouTube videos or podcasts.
- Invest time in having good energy on TV.
- By starting small and working your way up, you have the opportunity to get feedback and grow.
Tell Your Story
- Is there a difference between PR for business-to-consumer vs. business-to-business?
- You should target the mediums that your target audience frequents.
- Working with podcasters can yield a huge return on investment because you are in front of a specific audience.
- When talking to a general audience, if Jethro from Beverly Hillbillies can understand it, then you are doing good.
- Focus on the media that your customers consume.
- Entrepreneurs are the best people to communicate their story.
- If you hand it off to someone else, it is going to take a lot of time and money to get them up to speed.
- Every business owner should get better at communications and generating buzz.
- Everyone in an organization should be able to communicate the mission and the founder's story.
- If you can tell your story well, it will keep the cash registers ringing.
- How does your media strategy influence pricing?
- Consumers will form an opinion of you within seconds of landing on your website.
- If you can show logos of media outlets on your page, you can provide an implied endorsement.
- You can double your rates with media endorsements.
- You can do this yourself without hiring a PR firm if you invest in learning it.
- Managing relationships is the most expensive part of a traditional PR agency.
- Once you start making connections and consistently deliver value to the media gatekeepers, you develop friendships.
- What is one of your best stories about creating value for a customer?
- Harry Campbell started a blog and podcast, called the Ride-Share Guide.
- Josh suggested Harry become the de facto expert on all things ride-share.
- Harry is working with many media outlets, and as a result, he does not have to spend a dime on advertising.
- Journalists are looking for subject matter experts who are consistent and reliable.
About Josh Elledge
- Website: upendpr.com
- Twitter: @joshelledge
Using Value to Steal the Show with Michael Port – 063
Michael Port is the author of six books and a New York Times best-selling author. The Boston Globe commented, “He is an uncommonly honest author.” He has been called a marketing guru by the Wall Street Journal and a sales guru by The Financial Times. His seventh book, Steal the Show, is due this fall.
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“Book Yourself Solid” Sales System
- What is the most important thing you can share about pricing?
- People buy to express their values.
- If you look at the sum of what we purchase, you get a clear picture of who we are.
- Your price is about the buyer, not you or your services.
- It is about how the purchase of the product or service makes them feel about themselves.
- It gives them an opportunity to express their values, what they want other people to recognize.
- What is the Book Yourself Solid sales system?
- Book Yourself Solid outlines a simple sales system.
- Marketing is not what gets you business; it just gets people aware of you.
- What you do after someone becomes aware of you is what books the business.
- Sales offers should be proportionate to the amount of trust you have earned.
- If you have the sales conversation at the right time, it is easier to book business.
- If you design your sales system properly, you will have no problem making the sale.
- The 4-part sales system asks these questions:
- What does your customer want to achieve?
- Why does the customer want to achieve it?
- Does the customer want help to achieve the goal?
- Would you like me to help you, because you are my ideal customer?
- If the customer finds you, should you assume they want your help?
- There is an implication that they want you if they have sought you out.
- However, it is a good idea to ask them to articulate and confirm it to avoid tire kickers.
- You want to get an intentional yes from the customer.
- If you focus on the customer, you do not have to prove that you can do the work.
- Customers want to know what you stand for and what your philosophy to make a buying decision.
- Control how you are known in the world.
- In Part 3 are you asking, “Is this a problem you want to solve right now?”
- Yes, and it is probably a concept with which people are more familiarity.
- Having different ways to process information helps the audience understand it better.
- Every person should use their own language to convey meaning.
- Having structure gives you a process to follow, without needing a script.
- Understand how the process works, and then determine how it works for the individual.
- Being process-oriented helps you understand the big picture to fill in between the lines.
- Understand how things work from a basic standpoint; then you can geek out on the details.
Improvisation As a Sales Skill
- Why is improvisation an important sales skill?
- If you sell something, things you do not expect are going to happen.
- You need to be able to manage the situation, in the moment.
- The structure allows you to improvise.
- Improvisational comedy structure is based around the concept of “yes, and….”
- Rehearse to prevent being nervous.
- The better prepared you are, the easier it is to improvise.
- You can be free and more authentic if you know the structure well.
- It is a mistake to look too far ahead. Only one link of the chain of destiny can be handled at a time. – Winston Churchill
- Build a strong chain, one link at a time. Then you can have a successful sales conversation.
- Learn how to read what your customer is and is not saying to adapt your conversation.
- The most effective salespeople have sophisticated social intelligence.
- Social intelligence is a skill that you can learn.
- What is the role of emotional and social IQ in sales?
- Emotional IQ is being able to manage yourself and your feelings.
- Social IQ is being able to manage other people‘s feelings in certain situations.
- The way we show up tells the world something about us.
- Be aware of how other people see you.
- Salespeople can get too caught up in trying to make things happen.
- Being self-aware is the first and most important ingredient in self-expression.
- The sales process is artistic, not scientific.
- You can measure what improves conversion online, but it is harder to do so face-to-face.
Learn From Your Pricing Mistakes
- What is one of the biggest pricing mistakes you have made?
- The biggest general mistake was believing that his customers bought based on price.
- He doubled the price for 6 months as a test and had the exact same number of people sign up.
- Another mistake was just following what other people did.
- He offered 3 options for virtual training and figured everyone would go with the second choice because of framing (and they did).
- They ran the program again and just increased all the prices except the most expensive.
- Almost everyone went with the most expensive option the second time, even though the price was the same as before.
- What is one of your best stories about creating value for a customer?
- His master class on public speaking and performance attracts a wide range of people.
- Every now and then, someone comes to feel more confident in themselves.
- A female CPA, Lori, came to one of the events. She was meek, small and shy.
- She just wanted to find her voice – not give speeches.
- She walked to the front quietly with notecards and she started speaking.
- He took away her notecards and he asked her to tell her story.
- Her mother once slapped her and told her “no one wants to hear from you”. It stayed with her for 40 years.
- Lori now helps others find their voices.
About Michael Port
- Website: StealTheShow.com
- Twitter: @MichaelPort