It was a lousy day on the golf course. The 3 wood went everywhere except the fairway and the putter spun out of control. I probably lost 13 strokes between the two clubs. So what would you do? Get rid of the clubs? Surely it can’t be me, so it must certainly be the club.
I left the golf course and went straight to my favorite store in Plano, Texas-Clubfinders. Why is it my favorite store? Because I can trade in my old clubs and get 2 almost new ones for an incredible deal. What a deal to get 2 golf clubs that I’m passionate about for such a great price! I expect great results of them. That’s why I call it the irresistible offer.
A new putter and a new Adam’s 3 wood for $105, yet valued at $350! I didn’t even test them out – I was finished with my old club’s performance. I’m sure you’ve experienced the something similar at some point, whether it’s buying a car, a computer or even a house.
Mark Joyner wrote the book “The Irresistible Offer” where he discusses the 3 key components of an offer. They are
- High ROI (Return on Investment),
- Touchstone and
I’d like to focus and synthesize his point on a High ROI.
Mark explains that a High ROI is 90% of the game. Most people will only buy when they see that the perceived value of the product or service outweighs the cost. As a sales professional, the question is whether you can articulate to your customer what that value is and will they see it as you see it? This is often where a disconnect occurs. What you see and present as the perceived value is not always in line with what the customer believes. Why?
More often than not, sales professionals convey value based on past experiences with prior customers who have been their strongest advocates. However, new prospects don’t automatically see it the same because they have no bias or experience with your offerings. It’s vital that your High ROI is obvious or can easily be conveyed. It also needs to be measurable, specific and bounded by a timeframe.
I bought my 2 golf clubs at 1/3 the retail cost and saw a quick return in the investment 5 days later when I played my next round of golf. If you buy a software package that’s supposed to cut your time in half for performing a specific task for you, what is the return? If you buy a new hybrid car that gets 50 miles per gallon, what is the ROI for gas savings? These are measurable and will help you make the decision to purchase.
I recommend using this formula to calculate the return on investment: Value = Benefit/Cost. When your customer sees a benefit in a specified period of time that greatly outweighs the cost, the value is clear to see.
Customers that can’t connect to the tangible and intangible benefits will delay the decision, or they will think of other alternatives where their investment might bring a greater return. You probably do the same with your everyday purchases. Should you buy the new laptop or spend the money on a new pool pump? For example, my laptop might last another 4-6 months where the pain I have is limited to the operating speed and the failure of the battery. A new pool pump will save me $750 a year on our electric bill. Do the calculations to determine which one to invest in. I’m leaning towards the pool pump.
I agree with Mark Joyner. Clearly articulate the ROI to your prospects and customers based on their needs and you will have a compelling reason for them to buy your solution.
And, in case you’re wondering – using the new clubs, I took 9 shots off of my game. Now that’s an ROI I can live with!