Sales

Video Blog 6/14/11: Magic Marketing Formula for Engineers

Discover the “magic” of Marketing in an Engineering Formula. The Dominant Coeffecient might surprise you… it’s what makes a product/service SUCCESSFUL vs. UNSUCCESSFUL.

In case you missed it, the Formula is:
SALES = REVIEW_SCORE * (SUM_OF_OTHER_MARKETING_STUFF_YOU_DO)

This is a true statement for at least the Killer NIC and various iPhone games I’ve worked on.

Is it true for you?

Getting more Twitter Followers does NOT magically lead to sales

So, you have a lot of new Twitter Followers eh? You may have gotten them by running a Karmaback Social Sweepstakes, or maybe you just been collecting them a while? Well, here’s a news-flash, just having twitter followers is NOT enough to get you sales. You have to do something else, 2 things actually, and one of them has to be “extraordinary”.

First, and foremost, you have to offer a product or service that is TRULY valuable to the target market. It won’t have value for everyone.. but to those that it was built for, it has to be THE most valuable solution they can think of. Your product/service has to be “extraordinary” to the target market.

Example: You make Caramel Ice Cream, with Caramel Swirls, and Caramel Candy inside, with Caramel topping. You make the “Quadruple Caramel Ice-cream”. *** THIS is PERFECT for me (Harlan) the target customer and people who: 1.) wants ice-cream, 2.) loves caramel, and 3.) can order the ice-cream (either lives nearby or can get it delivered).

Example 2: You fix Small Business Tax Problems, by training small business owners the “simple steps to managing your books and filing taxes” and provide backup tax help hourly at just $40 per hour. *** THIS is the PERFECT solution for me, and People who: 1.) have a small business, 2.) have tax headaches and fears, 3.) want to do as much as we can ourselves to save money, but 4.) need to have backup ready instantly, and 5.) can order/use the service (either via Web or in the same city).

NOTICE: These examples are VERY specific products, and NOT built for everyone in the whole world. (some fools actually don’t like Caramel!)

Now, you’ve got an EXCEPTIONAL PRODUCT… you’ve got to make an EXCEPTIONAL DEAL to the PEOPLE THAT NEED IT, and then, and only then, will you get sales from Twitter.

EXAMPLE; @QuadrupleCaramelIceCream live in Austin? Try a Quad Caramel Ice-cream from #QCIC for just $2 with this code: bit.ly/34f6

EXAMPLE: @SMBTaxHelp get a $250+ training and tax consultation for just $40 with this code: bit.ly/554d

….

Are you getting it?
To me, (who wants/needs both of those things already)… I’m DEFINITELY going to get the icecream.. and I am GOING to check out SMBTaxHelp and see if it really is $250+ in value.

…
Engineering Formula:
(ExceptionalTargetedProduct + SpecialOffer) * TwitterFollowersThatNeedYourStuff = Win Sales with Twitter

Let Karmaback help you win: http://karmaback.com/platform

*photo from: http://slurplog.blogspot.com/2005/10/food-fanny-ice-cream-vietnam-hcmc.html

Why Selling Products is EASIER than Selling Services.

I’ve sold both products and services. I’ve sold them together, and separately. Without a doubt, no question about it, selling a product is far easier than selling services. Here are some examples of stuff I’ve sold, and why products were easier than services:

At the age of 10, I was the youngest kid in Lima, Ohio (where i grew up) to ever have their own paper route. My job was to deliver papers (the easy part, and fun on my bike), and to “collect” payment… People see newspaper as a service… and collecting that $5 per month was the bane of my existence. People just didn’t want to pay me. “The kid is knocking again” would be their complaint… when I came knocking, door-to-door to collect the monthly fee for the Lima Newspaper. The problem: they weren’t “getting a product” at that moment. Those same houses would gladly fork over $1 for a candy-bar sale, or $5 for a dinner plate…but newspaper service… “ah, come back tomorrow when I’ve got some cash”.

At 16, I went door-to-door selling “Ariel Photography”… it was much easier than selling newspaper service! I could show them a picture of their home… in full color and a huge picture. “Yours right now for $100”, I’d start out. Surprisingly many would say yes! (even though I’d go as low as $25 for the sale). Why? It was a product.. it was done.. it was right there… and I would “fake-walk-away” to close the sale all too often. Don’t get me wrong… walking door-to-door is always hard… but selling a Product was far easier than selling the service. Imagine: “Hi, I’ve got a plane, and would like to fly over your home and take a photo for just $100, can you please pay me now, and then I’ll send you your picture?” —> yah, that wouldn’t work at all!

Selling Killer NICs from my startup Bigfoot Networks was easy too: list the product at the store… tell people it’s there… get some press… watch sales happen.

Same for selling Psyko 5.1 Surround Sound headphones: get listed, get decent reviews, market a little… watch money come in.

Now try selling “social marketing”.. such as I do with Karmaback. Selling it as a product: “click here to setup your sweepstakes now for $49” vs. a service “call us or email us for a free quote in 24 hours”… which do you think is “easier to sell”? The product is easier to sell (as long as it satisfies the needs of the customer)… unfortunately a Sweepstakes alone often doesn’t satisfy… customers often want more… (how to turn it into sales, how to customize how it looks, strategy, iphone apps, coupons, etc. etc.)… these additional needs DO mean additional revenue opportunities. But selling them is harder: figure out needs, work up a proposal, develop a relationship, build a plan, get consensus, get internal acceptance/approval, etc.

So, if you can possibly “productize” your “service offering”.. go for it! Karmaback is sure trying to do just that: stay tuned!

p.s. buy the t-shirt here:

http://www.zazzle.com/lima_ohio_tshirt-235147393084423299

Sales is about People, not Presentations

Your slide deck may be the best in the world. Your pitch smooth as butter. Your suit as fine as none other. Yet, you continue to lose the sale to Alex, who uses no slides at all. You better wise up and realize that sales is about people, not presentations.

Alex understands what sales is… and here is what he knows.

If you can’t engage with the prospect, and get them talking, they will never remember a thing you say.
If you don’t understand the needs of the prospect, both functionally in the business and personally, you will never be able to “show him the solution”.
No matter how much you love your solution and think its the best, there are always alternatives and selling is showing that your option is the one that best solves the prospect’s need.

Where are your slides Alex? I have some, but I’d rather send them to you after our meeting.

Why is that, that is odd? Yes, I hear that, but I would rather spend the time learning about your problems than looking at my pictures… if there is a fit, we’ll find it together and I’ll give you materials you need to sell internally.

Sales is about people. Them not you. Please, please, sales-people, stop with the slides already.

Why Social Marketing Works, and Sometimes Doesn’t…

Did you ever wonder how Papa Johns Pizza got to 1.5MM Fans on Facebook? Do you wonder if they make money on Facebook? Why does Ford run TV commercials pushing people to their Fanpage? Are companies making money with Twitter? The short answer is: Social Marketing pays… usually.

Papa Johns:
They are incredibly consistent on their Facebook and Twitter Pages. 1 Contest or Sweepstakes a week. At least 1 coupon per week… and all involving their fans. As a consumer, it PAYS to follow Papa Johns (discounts/contests/more). This eMarketer.com study shows that 65% of daily followers want Deals and Sales! Papa Johns is capitalizing with REGULAR deals and sales… and it is working.

Ford:
Are 440,000 people following Ford on Facebook to get a deal? Probably not, a cursory glance shows that most engagements on Ford’s Facebook page are questions or comments for Ford. Would Ford’s fans enter a contest to win a Car… probably yes. But Ford doesn’t run such contests very often. If they did, they’d have a lot more fans…. but would they sell more cars? Maybe. But the direct line of sales success from couponing is not there for Ford like it is for Papa Johns. So, is Ford making money on social? Nobody knows… probably not even Ford!

I think companies need to wise up and realize that a small consumer purchase on Facebook (like Pizza) works only because it is measurable by coupons. Cars, B2B, and other big purchases need to figure out a way to see if Social is worthwhile very fast!

Painful/Scratchy Toilet Paper, Reduces Consumption.

I’m not trying to be vulgar, but consider: would you use MORE or LESS Toilet paper when it is painful/scratchy cheap kind vs. the nice soft good stuff? Business owners, consider this a lesson: don’t make it painful/scratchy/awkward! If your sales-people/staff are not friendly, then its painful (less consumption). If your product is ugly, unwieldy, or difficult, then it is painful (less consumption). If your food makes people sick, or your bathrooms are not clean: painful, less consumption. And for goodness sakes, buy the soft TP!

The Socratic Method in the Modern Age

What has changed since Socrates first developed the method of debate known as “The Socratic Method“? Are we more or less patient as a society? Are we more or less narcissistic? Do we even talk face to face with each other at length? Are people more or less willing to engage in debate? Much has changed in 2,400 years, but the Socratic Method can still be an incredibly useful tool in business and in life.

Benjamin Franklin (my hero) first turned me on to the Socratic Method of debate, finding great joy in frustrating his friends with continually asking questions to almost any debate posed. However, even in Ben Franklin’s times, I believe people were more patient, less narcissistic, and engaged in Face-to-face debate far more often.

Here is Harlan’s revised Socratic Method for 2010, based on real world examples:

Find something worth debating. – This can be the hardest step. Time is so precious in our narcissistic fast-paced society, and not everything should be debated.
Find someone worth debating – If the participant is not willing to explore the topic in an open debate forum, and relegate the results to logics fine conclusion, then you are wasting your time. NOTE: They do not have to be willing to engage in Socratic Method. Only that they are open to debate and change.
Set aside a preset time period (at least 30-minutes). – Unlike the days of Socrates, we cannot simply cavort on one topic for an entire day. Our MTV minds are simply not accustomed to such concentration. A preset time period is not so that you can stop when the time is up… it is a minimum for how long you should explore. The temptation is to concede the point after the first hole in logic. This would be a gross error on both parties, regardless of which side you are arguing.
Begin with a statement – just like normal Socratic method, we must choose sides… pick a side and explore with questions… its that easy!
Ask any question but “Why” – Why questions are an example of opinion questions. In the Socratic method we must explore facts, logic, and assumptions (and foundations of all these in society, prejudice, culture, etc.). Avoid Why type questions whenever possible. It is OKAY if you are the only one asking questions. If you are the only one asking questions, you must ask on behalf of BOTH SIDES of the debate.
End with 2 statements – no-one likes to feel as though time was wasted. When the time is up (or when you both agree to stop), both parties should make a summary statement to capture how far (or how close) both parties have come along the path to enlightenment and truth.

Here are some real-world examples I’ve recently engaged in:

Sales Call. I often have sales calls and sales meetings.. and based on one of my favorite sales books, I try hard to use questions to help sell. The hardest part was “opening with a statement”, and then being willing to be “moved from my own position”. Here is what worked:

Statement: “You need Karmaback to help your company grow.”
Sample Questions: “Does your company want to grow?”, “Do you know what Karmaback is?” “Do you believe Karmaback can do what it says?”, etc.
Closing Statements: “COMPANYX needs to grow, and Karmaback can help.” vs. “COMPANYX needs to grow, and has bigger problems than what Karmaback can solve”
My openness… In order for this debate to work, I (as the salesman) had to be open to change… I had to be open to the fact that maybe MY STATEMENT was false.

Family Dispute. My kids are great test subjects. They are active, willing, and can easily handle 30-minutes…. not. (10-minutes was the best I could do. More would have been better)

Statement: “You need to learn to throw the football like a pro.”
Sample Questions: “Do you like football?” “Do you know what football is?” “Do you know what a pro is?” “Can one learn to throw a football?” “Can one learn to throw like a pro?” “Which pro?” “What is a need?”
Closing Statements: “I want you to learn to throw a football so I can play with you and get some exercise.” vs. “Papa wants me to learn to throw a football”
Kids: Sometimes, it’s good enough to get to the “intention” of the idea…

In almost every case I’ve used the Socratic method, it has been helpful.. it usually changes “me” more than “them”. And this is not a bad thing!

The other magical thing. Asking, and being open to being wrong, often wins business!

Giving back. Karma->back: Karmaback now turns points into charity donations!

In Eastern Philosophy, Karma is that earned thing which leads to something you deserve (good or bad). Karma comes full circle when it is shared… it gets amplified back upon itself. It is this “circle of Karma” which my company Karmaback, Inc. now offers to both businesses and end users. We have just announced our “Donate points to charity” program. This program allows users to donate their points to charity, which Karmaback turns into cash donations to that charity. The circle starts with businesses who use Karmaback services. Users interact with those companies, and EARN points (Karma). Then those points can be spent on “stuff“, including Charity, completing a circle of Karma!

To learn more about Karmaback Points for Charity and how to turn your online activity into cash donations or to become a participating charity, please visit karmaback.com/charity.

Non-profits participating in the Karmaback Points for Charity program include:

The Bob Woodruff Foundation: The vision of the Bob Woodruff Foundation is to provide resources and support to injured service members, veterans and their families — building a movement to empower communities nationwide to take action to successfully reintegrate our nation’s injured heroes-especially those who have sustained the Hidden Injuries of War-back into their communities so they may thrive physically, psychologically, socially and economically.
Learn To Be Foundation: Learn To Be was organized on the principle of using the World Wide Web as a medium for people of all ages to grasp their educational potential. The Foundation fosters free online tutoring services that are driven by a community of users dedicated to teaching and mentoring those in need.
Bluebonnet Equine Humane Society: The mission of the Bluebonnet Equine Humane Society is to improve the lives of equines by educating and helping owners, assisting law enforcement agencies, rehabilitating abused and neglected equines, and placing them into safe, permanent homes.

Got a business? Check out our Social Platform to learn how you can get MORE FANS/FOLLOWERS, MORE VIRAL SHARING, and MORE SALES for your business… by giving Karmaback points, running Karmaback Sweepstakes, and Karmaback Coupons and Feedback.

Motivation to “Like” Company or Brand on Facebook
Facebook Motivations	% of Respondents
Receive discounts and promotions	40%
Show support for the company	37
Get a “freebie”	36
Stay informed about company	34
Get updates about products	33
Get updates on upcoming sales	30
Fun and entertainment	29
Access to exclusive content	25
Recommended	22
Learn about company	21
Source: ExactTarget, August 2010

Harlan T Beverly, PhD

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