Article 101

If you are marketing intangible services, there are some universal truths that apply.
- Most marketing activities are unsuccessful.
- Most marketing investments are wasted.
- Most services marketers are shooting themselves in the foot.

There are many ways you doom yourself to thinking about what could have been.... rather than calculating the profits of a successful marketing initiative.

Lets focus on four components of a services marketing initiative which I believe accelerate results.

1. Spend money only on those most likely to deliver a positive return on investment.

Notice I didn't refer to response. The critical phrase was "return on investment". Response isn't a complete enough explanation of what you need to make money. You need the right people to "raise their hands".

Example: Many years ago I traveled the country delivering seminars on "Marketing Your Services". Cashflow was initially as follows:

- Generate $15 for every dollar spent marketing to targeted companies with sales
of $2.5 million +.
- Breakeven for every dollar spent to targeted companies with revenue between
$1 million to $2.5 million.
- Lost $20 for every dollar spent marketing to companies with revenues less than
$1 million.

Same marketing.... just different size companies. It took me only 3 seminars, by tracking the cash and the size of companies that purchased to make some obvious strategic decisions. Stop spending money on groups of prospects that don't
deliver a positive return on investment.

Do you.... before you initiate a marketing program... have access to the industry codes, revenue ranges and number of employees of those you market to?

If you don't you are shooting yourself in the foot before you even begin. Even if you created a very successful and potentially very profitable marketing campaign....
you'll never know it.

In the above example 80% of my costs were directed to companies with revenues of less than $1 million. There are far more of them. Because I spent just a few moments ensuring that I would have access to this info, I was able to track, recognize a trend, and STOP SPENDING MONEY ON THOSE I WAS LOSING MY SHIRT ON.

Start by creating a profile of your current and past good clients by seeing what the marketing lists tell you about their industry codes, revenue range, etc. You will notice patterns.

The typical marketer would not have thought ahead and prepared to do that type of analysis and most likely have concluded that they couldn't make any money.

2. Create pre-packaged service offerings with three price points.

Every service business I have introduced this strategy to has seen a quick burst of sales. Typically, most people buy within certain ranges and combinations of our services.

Rather than customize everything, create a pre-packaged offering of your services. Combine units of your time, or a certain deliverable, with follow up consultation, X number of widgets, a guarantee, whatever.... you get the picture.

See when prospects have to think there are always doubts. Doubts sow indecision and that kills sales. Start with a pre-packaged bundle of services and you greatly simplify the sales process. You are saying "Many people do this". This increases the prospects confidence they are doing the right thing. Because you have included everything they need, they have to think less - and that is a good thing. If they want to modify something, you obviously can negotiate, but packages focus the discussion very quickly.

Be sure to include 3 price points options in your packages. Have a low, medium and high price point. It's counter intuitive, but the percent of prospects who buy, and
the average sale, in my experience has always increased when service business start to use pre-packaged offerings.

3. Get those with a need to identify themselves.

Everybody has limited funds. You have to separate those who may buy from you from those who won't, as quickly as possible and at the lowest cost. Let me share a dirty little secret - most people who respond to your inquiry offer don't read, listen to, or really remember what they even requested.

The win for you is when you get the name. All your efforts should be aimed at getting those interested to identify themselves as soon as possible. Now we enter neverland... you have to have an impactful offer with a promise of substantial benefits to your suspect base to get those who may buy to identify themselves - but the reality is most people will ignore what you send them.

Not only that, but what you send them should not be a part of your sales process.... meaning that if you send a CD, don't assume people will listen because they won't. If you send a report, don't assume they will read it, they won't. So don't sweat the length, substance and format of what you send people, just get the name.

4. Respond with proof and clarity.

If there is any doubt in people's mind as to what exactly you can do for them, and you have not provided proof of your claims - you lose. When you respond, don't make the prospect work. Don't assume they will spend time looking through your mish mash of crap to figure out what you can do for them. Present yourself in a logical sequence which draws people along.

Provide proof... testimonials, references to previous projects with results... quotes, quotes, quotes... very powerful.

Ask yourself, how can I prove I am as good and as worthwhile as I claim. Provide that proof. The number of sales and the average order size will shoot up.

Good luck with your marketing.
Scott Channell

copyright 2003-2009 Scott Channell

Article 145	Four Accelerators Of Services Marketing
	by Scott Channell