jim.shamlin.com

7: Becoming Magnetic

The author speaks of magnetic attraction as being "a gentle and irresistible tug" that beckons people toward a person, that make you a "go-to guy" when they need the products and services you can offer them.

In his own research, he found that affluent people place great importance in other people they know as resources to which they turn. Again, they do not let others make decisions for them, but they respect a trustworthy source of information.

And moreover, you will know that you are achieving success in selling to the affluent, or any group, when they begin to see you as that trustworthy source, and turn to you for information of their own choice. But earning that level of trust takes time.

Attracting Affluent Prospects

The affluent customer is more likely than other market segments to seek out a vendor, but given the competitive nature of business and the growing number of firms seeking to capture this market segment, waiting for them to come to you is inadvisable. You have to attract them.

Some tips:

• Appealing to the affluent is an ongoing effort. You won't succeed if you periodically attempt to "drum up" business in short order.
• Prospecting is a planned activity. Each week, you should consider which prospects to touch base with and whether to reach out to new prospects
• Traditional advertising channels are far less effective for this market segment. Referrals and word-of-mouth are the most effective.
• Word-of-mouth is also regarded as the most credible, more so than advertising or the Internet.
• Affluent people can afford to wait and are resistant to (and repelled by) sales pressure. They strongly dislike being hassled and pestered.

The author identifies "six areas of dissatisfaction" (EN: Only the last two are really about dissatisfaction, and the first three are overlapping and/or redundant, but a describe a person who is in a position to make a buying decision).

1. They have "unfilled goals and aspirations" they wish to fulfill
2. They have a problem they want to solve
3. They have an opportunity they want to pursue
4. They are early adopters who like to be among the first to try something new.
5. The products/services they regularly use are not meeting their needs or delivering a desired level of quality
6. A company, brand, or salesman they once trusted is no longer meeting their needs or desired level of quality

The last two areas refer to dissatisfaction that occurs following a purchase. This may be common buyers' remorse about a given product in general, or it may pertain to a specific product. It also makes it less likely they will purchase from the same source again if other options area available, and more likely they will make negative remarks to others about their experience. (EN: I recall reading elsewhere that influential consumers, including the affluent, are less likely than others to spread bad word-of-mouth. To express dissatisfaction is to admit they made a bad decision.)

Of note, there are a few areas that can mitigate and even overcome buyers' remorse: first, whether any problems of dissatisfactions were resolved promptly, easily, and effectively; and second, whether they received good service/support after the sale. For the affluent customer, the post-purchase experience is very significant.

Setting realistic expectations can be helpful, and is the opposite of the kind of hype that is often used to convince customers to purchase. You should ensure the buyer understands the features of a product, how it compares with alternative offerings, what specific solutions the product provides, and support claims with evidence.

Affluent people do not look to salespeople to act as advisors, only sources of information - and again, last the last possible source of information. They rely on people they know to make suggestions, and do independent research and evaluation (increasingly online) to gather information. They also consider the reputation of the firm/brand/salesman in deciding to proceed.

The author finally returns to the topic of how to attract them, and has little to offer. You must "[place] yourself in their path" by getting people they know to mention you, then provide supporting information they can find when they are gathering information on their own.

Introductions And Referrals

All people of affluence have money to spend and may be able to afford your product, but only those who fall into one of the areas of dissatisfaction, described above, are likely to consider buying. So while it's good to get your name out to people who might eventually buy, it's more profitable to be introduced or referred to those who are likely to buy soon. And for the affluent, their consideration of a vendor begins with an introduction or referral.

(EN: The author doesn't distinguish between the two. My sense is that an introduction is done with you present, and a referral is done in your absence.)

The most credible referrals come from individuals with first-hand experience with you. These carry more weight than "friend of a friend" references. And this is where it's important to be active in organizations: it puts you in direct contact with people you have done business with, in direct contact with people they know who may want to buy, and in situations where one may introduce you directly to the other.

Getting referrals an introductions begins with the question: Do you know of anyone who might be interested in [the benefits you can provide]? Because "interested in" may seem vague, you can suggest a reason they might be interested: Do you know someone who ...

• Is eager to accomplish something your product would help
• Is having problems of a nature your product will solve
• Would want to be the first in line to use your product
• Is dissatisfied with a competing vendor or solution

Then, consider some of the following:

• Is there any way we could arrange a convenient introduction?
• May I use your name when I call for an appointment?
• Would you be willing to contact them to let them know you've given me their name?

This technique enables you to gain introductions in a manner in which you put the person who will make the referral/introduction to do a favor for someone they know by mentioning or introducing you.

Seminars And Workshops

Another marketing technique the offer mentions is offering free seminars and workshops. People have some apprehension, as this is usually a dodge to get people to come to a sales presentation, but the technique has not been thoroughly poisoned.

One example provided is an estate attorney who conduct seminars that discuss the basics of estate planning, but does not sell his services or address any individual's concerns. It is simply "education" done out of benevolence to the community, but some in attendance will call for additional help, as paying customers. In the example provided, the attorney in question does no other form of marketing to the public, but still wins ample clients.

In addition to reaching the audience, you also reach other people they know: as they will speak about attending your event, and mention you when they relate what they have learned to others.

The caution is that you will need to be able to deliver a seminar that provides valuable information to an interested audience that is largely free of any sales pitch at all.

It will still be effective as a marketing tool because, as the presenter, you will gain an air of authority that will cause people to seek you out - dispensing little useful information while pushing sales will undermine the trust you might have gained. This will also enable you to get in front of people in venues where salesmen are not welcome: you may be able to offer a presentation at a college, a civic event, or even to members of an organization.

Detecting Buying Signals

The author lists a number of "buying signals" that seem a bit facile, but likely worth noting:

• The prospect expresses agreement (nods and gives positive responses)
• The tone of their voice is relaxed
• They lean forward
• They express strong preferences among alternatives
• They ask questions about cost and delivery
• They show an interest in promotional materials
• They ask questions about specific details

If you are getting these kinds of signals, then the prospect is receptive and you can move forward, defining a solution that will meet a need, and ultimately to getting them to consent to purchase.

Closing The Sale

The author refers to "some studies" that indicate that 50% to 62% of salesmen fail to ask a prospect for their business. OF those that do, about 35% will accept the first "excuse" the prospect offers for not buying at this time and never ask again. While affluent customers do not respond to sales pressure, they will not close themselves.

An affluent prospect must agree to three things in order to close a sale:

• They must accept the solution (including all options). Review what has been discussed, all elements of the package, and make sure it accurately describes what they are expecting.
• They must accept the cost (their fully-loaded costs, not the nominal price) Give them the total cost, an itemization, and explain payment terms. Again, make sure they agree to the details.
• They must indicate a willingness to close now (not open-ended). Review the sales agreement and get a signature.

Contracts are important to affluent customers: they will not be convinced that they have entered into any sort of agreement until they have made "a mental and physical commitment" by the act of signing.

The author describes some of the kinds of resistance in the closing:

Objections to the solution are fairly easily overcome: return to negotiations and working with them to define a solution that meets their needs.

Cost is not often a valid objection for an affluent customer: they can afford to pay the cost, but are doubtful of the value they are getting.

Other objections can be overcome by asking specific questions - whether there are issues with the solution, offering to define a better package, etc.

So long as you are getting the "buying signals" above, you can keep the conversation going to discover what they find lacking and addressing it to get them to commit.