How to raise your customer billings and keep 'em happy. Possible? Sure.
I've implemented the below to good effect in agencies.
Probably seems like common sense, but few businesses do it well.
Ok. Businesses know exactly what they get when they purchase most supplies. They also know what they pay for them. In other words they can value a service proposition pretty comfortably.
Many businesses don't 'get' IM so its a far more difficult judgement call for them.
The impact is significant-
Clients know exactly what your IM bill is
But can they articulate in $ what value to them you provide?
If you can't articulate it then they will be nervous about knowing what they're paying for. If they don't understand the output then how can they know they're getting a good deal?
An easier narrative focuses on income potential.
So, with this as a backdrop, you could use the SPIN selling method to articulate the value proposition:
Say they currently make $10k a month online. So, if you were confident that you could double their traffic, then charging $3k/mth for that looks a good deal. You can also risk share, which is very powerful, but that's for another time.
So there's the value proposition. They get $7k, you get $3k. Most people will find this an easier proposition than being told they are to pay for a facebook page, canonical URL changes or whatever service you currently provide (and they don't really 'get'). ie sell uplifts not product features.This will reduce their price sensitivity as they have a greater sense of certainty of the proposition.
Unlikely they will share real numbers to begin with, so you'll lead them with examples of how you have increased sales in similar businesses. Manage their expectations correctly and you'll have a long term profitable customer.
note - If they genuinely don't know what their online income is, then you may be looking at a difficult customer relationship from Day 1 anyway. By definition they won't know what value you provide as they can't measure uplift; so they'll always be bill sensitive...
For those that use this, or a variety of it, what have your experiences been?
Anyway, happy Christmas and all that...
Probably seems like common sense, but few businesses do it well.
Ok. Businesses know exactly what they get when they purchase most supplies. They also know what they pay for them. In other words they can value a service proposition pretty comfortably.
Many businesses don't 'get' IM so its a far more difficult judgement call for them.
The impact is significant-
Clients know exactly what your IM bill is
But can they articulate in $ what value to them you provide?
If you can't articulate it then they will be nervous about knowing what they're paying for. If they don't understand the output then how can they know they're getting a good deal?
An easier narrative focuses on income potential.
So, with this as a backdrop, you could use the SPIN selling method to articulate the value proposition:
Say they currently make $10k a month online. So, if you were confident that you could double their traffic, then charging $3k/mth for that looks a good deal. You can also risk share, which is very powerful, but that's for another time.
So there's the value proposition. They get $7k, you get $3k. Most people will find this an easier proposition than being told they are to pay for a facebook page, canonical URL changes or whatever service you currently provide (and they don't really 'get'). ie sell uplifts not product features.This will reduce their price sensitivity as they have a greater sense of certainty of the proposition.
Unlikely they will share real numbers to begin with, so you'll lead them with examples of how you have increased sales in similar businesses. Manage their expectations correctly and you'll have a long term profitable customer.
note - If they genuinely don't know what their online income is, then you may be looking at a difficult customer relationship from Day 1 anyway. By definition they won't know what value you provide as they can't measure uplift; so they'll always be bill sensitive...
For those that use this, or a variety of it, what have your experiences been?
Anyway, happy Christmas and all that...
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Revata Kartawidjaja -
Thanks
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