Category: Business

Remember those GIGANTIC boxes that computer games used to come in?

Anyone who played games back in the day (I’m talking 80’s, 90’s) will probably remember them.

If you don’t know what I’m talking about then here’s a little history lesson.

In those days games came in massive boxes instead of the slim plastic cases you get today. These boxes would contain the game along with a bunch of other stuff. This other stuff would usually include manuals, maps, bits of paper, maybe a T-Shirt and so on. Back then people would often wonder about these boxes. Why put something as tiny as a CD-ROM or floppy disk in a huge cardboard box?

The reason why was simple:

You see, these boxes were really a brilliant piece of marketing psychology.

If I only sell you a CD…well…there’s a good chance you may feel disappointed.

On the other hand, by placing that product in a box you feel as if you’re getting MORE.  

Basically it was all about increasing the perceived value of the product.

The point is this:

Try to avoid delivering your product alone.

Always include other little bits and bobs.

This is why info products often come with a bunch of bonuses and other things.

Whether that’s extra videos, audios, manuals, cheat sheets, or whatever.

The bottom line is this:

Increasing the amount of “stuff” your buyers get massively increases their happiness…

…and therefore their satisfaction with your product.

Something to think about.

Cheers,

Alastair Walton

How many of you remember “New Coke?”

IMHO this was one of the most brilliant marketing campaigns ever created.

In case you’re too young to know about this here’s what happened:

All the way back in in 1985, Coco-Cola was gradually losing market share. To counter this they launched a top secret project known as “Project Kansas.” What this discovered – after a great deal of surveys and focus groups – was that Coke wasn’t “sweet enough.”

With this information a bold new plan was decided upon…

The Coco-Cola company would change their decades old formula and introduce “New Coke.”

As it turned this was a wild success and dramatically boosted sales.

But that wasn’t the end of the story…

You see, what eventually happened was that New Coke caused a massive consumer backlash. In fact, the company received more than 40,000 complaints and at one stage over 1,500 calls per day to their consumer hotline. This resulted in them returning to the original formula in only 77 days.

Now, to the untrained observer this may seem like failure but…

…I guarantee you this was all done by design.

You see, the introduction of New Coke performed several important marketing functions.

First of all, it provided massive publicity for the company.

Second, it resulted in a huge sales bump.

(Think about it, this is a no brainer: who wouldn’t try New Coke?).

Third, what you have to understand is that of course this was going to cause a backlash.

Coca-Cola is a deeply rooted piece of Americana.

This is why people got so upset and wanted the old formula back.

It’s also why the public returned in droves when “old” Coke came back.

(Causing another nice sales bump).

Ultimately, what this did was root Coke even more firmly in the minds of the public.

This is best expressed by Coke’s marketing vice president Sergio Zyman…

…the guy who came up with New Coke.

“Yes, it infuriated the public, cost us a ton of money and lasted for only 77 days before we reintroduced Coca-Cola classic. Still, New Coke was a success because it revitalized the brand and reattached the public to Coke.”

Enough said.

Cheers,

Alastair Walton

P.S. How can you create your own New Coke? Basically by experimenting with your product. If sales are dwindling then try reworking things. BTW, this is why copywriters are always describing products as “New and improved.”

Success in business is far simpler than most people think:

All you really have to do is find a red hot market and sell to them over and over again.

One way to do this is with the 80/20 rule.

You see, in 1906 Italian economist Vilfredo Pareto discovered something astounding.

What he found was that 80% of the land in Italy was owned by 20% of the population.

He called this the 80/20 rule and it’s something that is replicated in almost all aspects of life.

A good example is business.

If you look at your business, you’ll probably find that 20% of your customers account for 80% of your revenues. Within this 20% the rule also exists i.e. 20% of that group will represent 80% of your sales. If you do the math, this means that 4% of your customers are responsible for an incredible 64% of all sales.

So what’s the point?

The point is that if you want to dramatically raise your profits…

…you need to laser target this top 4% and also find more people who fit into this category.

One way you can do this is by looking at what characteristics this group shares.

What do they have in common in terms of age, location, education, or hobbies? Also look at things like the types of products or services they’re interested in, and how they found you or what advertising channel they came in from.

Once you have this information your job is to find similar people…

…and sell to them like crazy.

More tomorrow.

Cheers,

Alastair Walton

With a killer lead magnet it’s possible to build your list in no time at all.

On the other hand, a poor lead magnet can result in a conversion rate of zero…

…plus a whole lot of wasted time and effort.

This is why you need to think hard before doing anything. To get you started, here are three steps for strategically creating a lead magnet that converts visitors into customers.

1. Pinpoint your target audience

Who exactly are you trying to attract?

The answer shouldn’t be, “everyone.”

You want to choose a specific market and then laser target that market. Think of it this way: like a real magnet, your lead magnet should both attract and repel. This means you want to focus on your ideal customer, not just anyone. After all, trying to sell someone who isn’t qualified is almost pointless.  

2. Come up with an ultra-compelling offer

You need to come up with an offer that your prospect absolutely cannot refuse.

It should be so compelling that they immediately enter their email address.

What’s more, most people know that if they sign up you’re going to send them marketing messages. This often puts them off (even if they can unsubscribe). This means your offer has to be compelling enough to overcome this objection. A good way to do this is to think of something that helps to solve the prospects problems. You can also write down a list of common customer questions, then brainstorm ideas for a lead magnet that answers those questions.

3. Have your follow up sequence in place

Your lead magnet is only one half of the equation.

Your follow up sequence is the other.

Remember, most people won’t buy the first time they encounter your product. This means you need to have a follow up sequence. Ultimately your lead magnet should guide people toward the product or service you’re selling. At the same time you need to educate customers, provide the information needed to buy, and take into account where they are in the buying journey.

More tomorrow:

Cheers,

Alastair Walton