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Success
Magazine Online
Use Information Technology to Home In on Hot Prospects
Dan Kennedy says he's found a way to multiply your closing ratio
in face-to-face selling: Instead of carpet-bombing the universe
of possible prospects with telephone calls trying to get an appointment,
use the techniques of direct-response advertising. Generate a response
from those who already need your product. Then home in like a cruise
missile for the close. Kennedy, president of Empire Communications
Corp. in Phoenix, uses direct response to grow his own business
and consults to other companies.
''One of my client companies sells seals for industrial pumps,''
says Kennedy. ''The ordinary seal has to be replaced every 30,000
pumps, taking four hours of downtime. But this company's seal lasts
300,000 pumps and takes only two hours to replace. How would you
sell it? The conventional approach is to send out a rep to each
factory with a bag of seals under one arm and a box of doughnuts
under the other. He'll wait around for an hour waiting to see someone.
That uses up time, and it's also bad positioning.''
Get in Position to Close
Kennedy says that you're in better position to close a sale if
you manage to get the customers who might need your product to come
to you. This is where the direct-response methods come in.
''Suppose you send every prospect a brochure that offers him a
free video showing how to cut his downtime in half when he's servicing
his pump. It's closely related to your business, but it's not about
your company or product.
''Once the guy responds and says, 'I want to see the video,' he
doesn't view you as a pump-parts salesman anymore. His defenses
come down, because he feels as if he's in charge when he says, 'I
think you're the guy who can help me. Tell me how this works.' Now
you're in a good position to tell him about your longer-lasting
seal. If you cold-marketed the same prospect, your results would
not be as good.''
With its free video offer, the client company more than doubled
its closing ratio per 100 prospects from 3 to 7. That opens
the possibility of hiring more reps, who sell more and make more
money. As Kennedy says, ''There's no reason for a sales rep to spend
his time on the phone to narrow his prospect search when a letter
can do it for him.''
The Secret of Baby Steps
Kennedy says the strategy works in any market: Every potential
customer would be grateful for free information on some area of
need, free from a sales pitch. ''Take baby steps with your customer
to build rapport,'' Kennedy says, ''until you're ready for a giant
step like a big-ticket sale. Your free report or video, or
manual should have an exciting title,'' says Kennedy. ''It
should be as good as something you might buy at a bookstore, but
you're giving it to him free.
''Say a computer store wants to sell software, hardware, and Internet
hookups,'' says Kennedy. ''Why not target people with kids, offering
a free report entitled 'How to get your kid into the college of
his and your choice'? Let's say 18 of the 101 tips involve the use
of the computer. At the end of the report, put in another offer:
'Come in to our education fair from March 22 to 24. All of tips
50 to 68 will be on display, with free Internet access and instructors
available.' Have a discount offer that day for software or hardware,
and give away a demo of 'The 5 Greatest Educational Tools for Your
Computer.' These are measures that offer value, cost little, and
generate goodwill and sales.''
The principle of the smart bomb can work even with a presentation
or sales letter, if you are very confident. It's a benefit that
grows out of what Kennedy calls ''the positive power of negative
preparation.'' In presentations, we are accustomed to mentioning
only our strengths, hoping the prospect will forget about the possibility
of weaknesses. Of course he doesn't. All the while, he's trying
to figure out what problems lie between the lines. That tension
is bad, Kennedy says.
''Why not painfully acknowledge all the weaknesses in your case
every one of your flaws?'' he suggests. ''Then, answer these
problems with the best possible responses. You preempt most objections
and show your honesty. Sales managers don't tend to do this,'' he
adds, with considerable understatement.
''But winning sports coaches do. They go through all their plays
and ask themselves, 'What do we do if this goes wrong? Or how about
this?' ''
If you can handle the obstacles without breaking a sweat, it's
easier to get in position to score.
Dan Kennedy teaches his clients the techniques of direct-response
advertising to make face-to-face selling more effective. With a
targeted mailing or a classified ad, eager prospects line up, waiting
to be sold.
By
Duncan Maxwell Anderson
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