Christopher S. Penn – Marketing AI Keynote Speaker

Tag: Sales

The 3 Benefits We Care About
Tony Corinda, the famous magician and mentalist, wrote in his classic textbook 13 Steps to Mentalism that there are three general topics which nearly everyone wants psychic predictions on. Knowing these makes the job of a mentalist on stage incredibly easy, as just providing the hook into any of the topics gets people talking about what they really want.

The three things most people care about and want to know more about?
- Love/Relationships/Sex
- Health
- Money
You could have probably guessed that right off the bat. To no one’s surprise, business is no different. Decision-makers in business – including you, if for no other role than decision-maker of your career – want three general things, too.
- How can I save more money?
- How can I save more time?
- How can I make more money?
Again, no surprise, right?

So why is it that legions of salesmen and saleswomen never actually answer these questions? Take a look at any product spec sheet, from industrial toilets to iPhone apps, and you’ll see features listed by the dozen. This toilet uses 1.4 gallons per flush. This iPhone app can switch between 3G and WiFi seamlessly. This CRM offers RDBMS support for 8 of the most modern RDBMS systems.

So what?

When I talk to vendors, I’m exceptionally blunt. Some appreciate it, some get derailed from their carefully crafted pitch. How will your product save me money? How will your product save me time? How will your product make me more money? If a vendor can answer those questions quickly and intelligently, I’m very likely to just pull the trigger right then and there, as long as their math is sound. If a vendor tries to defer those three questions until later so they can finish their pitch, the phone gets hung up with a polite but curt “not interested but thanks”.

Classic sales books and training materials always advocate answering “What’s in it for me?” as the key question to answer in a sales presentation. Throw those books out, or at least put them back on the shelf. If you can prove a strong case for any one of the three questions – time, money saved, money earned – you’ve answered a core WIIFM question. If you can prove a strong case for more than one of the three questions, prospects will be buying YOU lunch. If you can prove a strong case for all three questions, you can pretty much retire your sales department and just replace them with order takers, because word of mouth alone will be flooding your call center.

Take a look at your own sales and marketing materials today.

Will you save me time?

Will you save me money?

Will you make me more money?

Prove it, and I’m yours.

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February 10, 2010
What casino gambling should teach you about online marketing

I recently had the opportunity to spend a few hours observing (not playing, I know the house odds!) people at a casino during a business conference. What a superb experience – not as a player, but as a marketer, to see how casinos manage the end user experience for maximum profit.

Imagine for a minute that someone put a box in front of you that, on average, will give you 42 cents for every dollar you put in it. No one in their right, rational mind would ever use it. Imagine for a minute that someone built an ATM that gives you exactly 42% of whatever amount you request. That ATM would be torn out of the wall by riotous crowds.

Yet thousands of people a year flock to casinos and use machines and games designed to do exactly that. Why? Because casinos have mastered the user experience.

Let’s take a look at some of the tricks of the trade:

1. No windows or clocks. Time is the enemy for casinos – they want you to spend as much time as possible in the venue (on the premise that you’re not a weirdo like me who just stares at people without spending money) and gamble as much as possible. No cues to show just how much time has elapsed ensure this.

2. Low lighting and lots of ambient sound. Every machine in the room makes noise, and more often than not, even the demo modes have sounds that are pleasant to the ear and evoke video game-like feelings of winning. Why? Low light keeps you relaxed and slightly less aware than harsh, stark light, and lots of ambient amusement sound contributes to the idea that you’re playing games instead of spending money.

3. Play money. I lost count of how many times players referred to their chips as play money, fake money, toy money, or some other proxy by which they completely forgot they were using real currency. At one blackjack table, I saw enough money cross the table back and forth in just a few minutes (table minimum $200, maximum$ 50,000) to buy several cars. Casinos use proxies for money to get you to spend more, because the money doesn’t look or feel like money at all.

4. Leave no dollar behind. Right outside the casino floor was… a Rolex shop. And an art gallery. And a Swarovski crystal shop hawking stocking stuffers starting at $40. Casinos know this above all else: you might win on the floor, but you’re not leaving with your money if at all possible. Every hook imaginable is available to get you to spend anything you didn’t lose to the house.

Now, how does this apply to marketing online? Take a look at your web site. Does it evoke the feelings that you want to elicit from your customers? If your goal is to get customers to spend some time with your content, does the “atmosphere” of your web site – color palette, brightness, tonality, contrast – encourage your visitors to relax, to forget about whatever else they were doing? Look at the patterns of lights and textures in a casino and you see endless repeating patterns that are nearly hypnotic. I’m not saying you should turn your web site into a slot machine’s decor, but think about what decor you do have and what it’s conveying.

Take a look at how you process transactions. Do you make it as easy as possible for visitors to transact with you? Do you use proxies for money like point systems or credits? In a casino, you can slap down a C note on the green velvet and have chips in hand, ready to gamble in less than 10 seconds. How fast can your visitors buy? Does your site let your visitors slap down the plastic and buy immediately? iTunes and Amazon figured this out long ago with 1-click.

Are you leaving money on the table? Are you letting your visitors get away with their wallets intact? What other things can you sell to your visitors as they browse through and leave your site? I’m not saying be obnoxious and run a javascript that forces a visitor through an annoying series of ads, but think about all of the different products or services you have and that you sell via affiliate programs. Are you presenting them as powerfully as the Rolex shop in the casino next to the cashier’s cage?

Casinos make good money because they’ve distilled the user experience for maximum profit. Are you doing the same?

Photo credit: acaben

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November 16, 2009
What World of Warcraft can teach you about gear and skill

If you’ve ever played any character in World of Warcraft, you know about the diminishing returns of gear. If you’ve never played Warcraft, it works something like this: once you’ve reached the top level of growth for your character (currently level 80, soon to be 85), any gains you get to make your character better come not from “leveling up” but from getting better gear, better armor, weapons, etc.

In the beginning of your gear quest, vast improvements in your character’s capabilities are easy. Going from a green “uncommon quality” item to a blue “rare” item can add more power, more strength, more valued attributes to your character in great leaps. Your character can perform far better in the game in these early jumps in equipment.

However, as you keep gearing up, going from blue “rare” items to purple “epic” items, the items get more costly (or more difficult to obtain) for statistical improvements that are orders of magnitude smaller.

After a certain point, you reach diminishing returns, where the gear’s improvements are so small that the comparatively large efforts to get the gear simply isn’t worth it for the average player. Where a blue “rare” item might take half an hour’s worth of work, a top, best-in-game item might take weeks. Granted, it’s a game, so as long as you’re having fun there’s no penalty towards getting that gear, but it’s still significant diminishing returns.

After you reach the point of diminishing returns on gear, the best thing you can do as a Warcraft player is to spend time learning how to play your character’s skills with the gear you’ve got. Gear, after all, merely magnifies your skills. Learning the various ways your character can behave in combat, learning to fine tune your use of the right skill at exactly the right time – these are the things that will not only make the most of the gear you’ve got, but in some cases will negate any gear disadvantages you have. Anyone on a team in the game knows that it’s better to have a slightly undergeared, excellent player leading your team than a highly geared, incompetent buffoon running the team.

So what does all this have to do with anything? Well, life is exactly the same. Take photography – after a certain point, you’re just spending money on lenses and other gadgets with fewer and fewer returns. That first zoom lens makes a big difference in your photography. The jump from a 55-200mm to an 18-200mm isn’t earth shattering, just convenient. Photography gets to diminishing returns VERY quickly – better to learn how to compose and shoot with the gear you have after the entry level improvements. Better pictures come from better skills – gear magnifies skill, but doesn’t improve it. Only learning and practice improves skill. I’ve got a Nikon D90 with a few lenses, and when talking to Marko Kulik (a photography expert), he basically said I’ve got all the gear I could possibly need for years – now I need to learn how to use it well.

Look at marketing. The first analytics software you start using is an incredible leap from no analytics at all, or guesswork based on server logs. After that, you get diminishing returns on the quantity of information you get from web analytics – and the real juice to be had in web analytics is not learning what numbers you have, but what they mean and how you can change your business practices to serve your customers better.

Accounting? Lots of businesses run quite well on Microsoft Excel, not because they don’t want to buy an accounting package, but because their accounting staff is sufficiently skilled enough in Excel that the gear upgrade won’t make a difference in their performance – and might even diminish it.

In the end, gearing up is important only to the point of diminishing returns, whether it’s marketing or Warcraft. The lesson is the same across nearly all professions, trades, and hobbies: gear magnifies skill. Gear up to get past entry level limitations, then focus your time and energy on the skills you need to tap the potential of that gear.

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September 5, 2009
Why do we do these things?

We hate salesmen trying to sell us stuff but we love going to street fairs with lines of merchants wanting to sell us stuff. Why?

We hate high pressure sales but we love going to expos like the Big E where barkers shout out the highest pressure pitches you could possibly ever receive. Why?

We hate advertisements of all kind in our media but we love tuning into the Super Bowl for the ads. Why?

Please leave your answers in the comments.

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July 19, 2009
The Passion Funnel

The passion funnel is much less dirty than it sounds.

For every discussion of monetization in new media, there’s an equal discussion about the amateur, the practitioner who does something for the pure love of it and not for money. However, amateurs can still take a great deal of knowledge from the professional world and apply it to their work to see how successful their efforts are.

Take an average new media sales funnel:

Audience
Prospects
Leads
Conversions
Evangelists

Audience is the potential number of people you can reach in any given medium.

Prospects are the subset of the audience that is likely to be interested in what you have for sale.

Leads are the people who have expressed interest in what you have for sale.

Conversions are the people who commit, who buy what you have for sale.

Evangelists are the people who are so in love with what you’ve got, with what you’ve sold them, that they incite others to become prospects as well.

You can measure each stage, use different tools and talents at each stage, to drive sales.

Audience tools are the channels themselves – Facebook, Twitter, email, etc.

Prospecting uses demographics and databases to figure out who your most likely customers are, based in part on the customers you already have. If I run a Financial Aid Podcast or a Marketing Podcast, I’d better be finding the portion of audience in each channel that’s interested in financial aid or marketing. Tools like Google’s Ad Planner and Facebook’s Media Planner can help with all this.

Leads uses your web site and associated persuasion tools – good copy, calls to action, etc. – to convince the prospects to buy. Analytics tools like Google Analytics, Clickheat, database analysis, and so forth can help you diagnose your lead generation process and figure out where you’re turning people away.

Conversions is your sales engine, your transaction engine.

Evangelism uses your media channels of choice to encourage your customers and fans to spread the word. Note that evangelism is driven by awesomeness. If you have an awesome product or service, if your customers are delighted, the word will spread. You might have to encourage them a little, but sufficient quantities of awesome easily convinces customers by itself to spread the word.

Now, what if you took the money out of this funnel? What’s left?

Pretty much everything except the transaction engine. This is a key point for any amateur: virtually every metric leading up to a sale is the same for amateur and professional. If there’s nothing to buy at the end of the funnel, there is something else that requires a level of commitment that’s non-casual. It might be showing up at a rally or volunteering your time, but it’s something that in a commercial interaction would be the equivalent of putting money on the table.

If you don’t know what is the commitment substitute for commerce in your amateur efforts, you’ll never be able to measure your new media efforts in any meaningful way beyond eyeballs and ears. Decide what’s at the end of your rainbow if not a pot of gold, and then take all the pieces and parts from commercial exchanges and make them work for your passion.

Photo credit: Dairy Cow

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July 18, 2009
Rockstars of conversation

Last night I had the opportunity to attend Radian6’s Rockstars of Social CRM. Interesting event. The panel discussion was mostly on interaction with customers, but all of the side conversations throughout the night made it absolutely epic. Some highlights:

Talking with Olivier Blanchard about the ultimate evolution of social media and speculating what true mastery of communications looks like.

Geeking out with Dan York over yet even more new stuff about Google Wave, including rich media in Waves and Wavelets. Incredible. Stay tuned as he’ll have a video we recorded about what Wave will make possible that’s beyond our ability to grasp yet.

Chris Brogan going gangsta.

Talking with Chris Newton about some of the new back-end features of Radian6’s integration with Salesforce. Honestly, I’m not sure they even fully get what they’ve created, but if they’re both lucky and good, they’re going to manufacture a bucket of money. We’ll see if the idea discussed over dinner can turn them from a million dollar category business to a billion dollar category business. Let’s hope they do.

Hanging out with the Boston social media crowd.

The true power of events like this isn’t even in the entertainment or the presentation, but in putting lots of very smart people in one room and letting the chips fall where they may. Last night, as long as folks were paying attention and studying carefully what was being demo’ed, everyone was dealt a flush hand. If you were there, I hope you took advantage of the amazing conversations and know what the future looks like for the next 12-18 months in social media.

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June 25, 2009
New media has gotten marketing confused

I had an epiphany of sorts in the shower.

What a lot of new media folks talk about – audience building, impressions, and the dreaded M word, monetization – is not marketing.

Marketing is the sharing of ideas.

So what is all the stuff we in new media talk about? Sales. Whether it’s pay per click ads, podcast subscriptions, blog readers, speaking gigs, whatever your metric is around getting someone to take action, that’s sales.

Marketing is the sharing of ideas.

Sales is the conversion of ideas into actions.

It’s the job of marketing to share ideas with the audience, to help them to understand what they’re missing out on, what value is awaiting them. It’s all about the content. Content is king, so the cliche goes.

It’s the job of sales to turn those ideas into actions. Create the path for people to take. Make it easy for people to do what you want them to do. Tell them what you want them to do. Click here. Subscribe now. Call the comment line. Leave a comment on the blog. Upload your webmail contacts. That’s all sales – do, do, do.

Once the sale is over, it’s back to marketing, back to sharing. Marketing takes over and reinforces to the audience that the action they took was the right one. Marketing continues to provide value upon value until the customer is so enamored of what you’re doing that they are compelled to share with their friends – and they become your salesforce and marketing team.

Share. Act. Share. Repeat.

This is especially relevant because in many ways, I think we’re reading the wrong books.

Most of my friends in new media are brilliant people. Smart, insightful, good at creating ideas and sharing them. Most of them also wish to be more, do more, achieve more, and this is where the disconnect is. There’s a gap between sharing and acting. Go to any blog and figure out what the action the blogger wants you to take is, and how easy it is to find. Get out your stopwatch, go to any podcaster’s web site, start the clock, and see how long it takes you to subscribe.

Folks like Seth Godin, Chris Anderson, and the marketing folks are perfectly okay. They’re sharing the ideas, and they’re a source for our own inspiration.

Note, however, when you ask any prominent blogger, podcaster, networker, etc. about their bookshelves, they never mention Tom Hopkins, Zig Ziglar, Ira Hayes, Dan Kennedy, Brian Tracy, etc. They never mention the sales books, the sales guys who can help get you from idea to action. Once the customer knows who you are and is willing to make a commitment, you as the new media outlet have to change gears and guide your customer, your audience, into action.

If you want people to do more with your new media outlet, complement your marketing knowledge with sales knowledge, and you’ll blow past the competition in a heartbeat.

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April 17, 2008

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