Monday, June 06, 2005

How to tell your customers what they need!

It's true. Sometimes we have to help our customers understand what it is they want. Nobody should be better at this than young entrepreneurs: naturally enthusiastic and having the fervor of a revival of religion when it comes to their businesses. But just in case the idea is new to you, here are some hints to guide you as you guide them.
  1. They don't want to buy things. They want to buy the services performed by things. Of course there are exceptions, such as (non-reference) books.
  2. They have other things that they value besides money.
  3. They want the need to purchase this particular product or service to go away.
  4. They don't need to become experts in this area.
  5. They have rules they must follow in any purchase.
If you remember their wants and needs, you will be better prepared to help them understand what you are offering. Now, about what to teach them:
  • Show you understand the problem they have that made them seek you out in the first place.
  • Give them the names of impartial third parties who've had similar problems. Even if these parties didn't buy from you. You may know what motivates potential customers to buy from someone else, or not to buy, but it's important that your new potential customers know this too.
  • Show how solving the problem improves the bottom line, especially in the areas they value most -- whether those areas include cost or not.
In short, are they better off taking SOME action than taking NONE? If they must act, are they better off with YOU or someone else? There is a danger that they could choose someone else. But they must have that choice, and it's better that they have it early than late. If they have the choice early, they will begin to trust you as a person who is seeking their best interests rather than a sale. That is how you make repeat customers.

You don't necessarily have to tell them how your competitors are better than you, but if there is any area in which you are not better than the competition, you must not lie about it. They will find out if you do.

Once they decide to buy from you, you still get to teach them:
  • Their responsibility after the purchase, and yours.
  • What to do if (when) something goes wrong.
  • How to find the fastest answers to their questions.
Here they should feel free to contact you. You have invested time and energy in establishing the relationship; even if you have "technical support" or "customer service" functions, let them know that you will be there for them. Again, that's how you win repeat customers. It's not about the one sale. It's about a lifetime worth.

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posted by Ron @ 10:23 AM

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