Never Need Another Lead
Lesson 6 - Create new offerings based on what you’ve learned
In the last few lessons we discussed the two vital ingredients in creating more value-added product and service offerings to your top customers. Those are: a) the price they’d be willing to pay (or, how much added value they’re looking for you to provide), and b) what sorts of value-added products and services, specifically, would appeal to them.
This is the lesson where we start pulling that information together.
You know your industry better than I do, so I’m going to provide a generic example that I hope will illustrate a principle or technique that you can apply (with slight modifications) to your specific market niche.
Take a company in the cosmetics industry. Your customers are buying makeup that’s better than whatever your competitors are selling. Some of them might spend a lot more if given the chance.
In this case, as you speak to your best customers, you want to get at the deeper reasons why they buy makeup and why specifically they buy it from you. The answers might be something like this:
I buy makeup to look my best because that gives me added confidence.
I use your makeup because it makes me feel relaxed, so it’s like a mini vacation in front of the mirror during an ordinarily stressful week.
What are these customers trying to tell you? One key point is that the makeup is merely a means to an end, to fulfilling a larger goal. And one of those goals is added confidence.
If that’s the case, might there be value in offering some personal coaching services about projecting more confidence at work? Or maybe partnering with a local spa to do a makeup-and-spa day?
There are dozens of possibilities here. But the main point I want to make is that the closer you get to helping a customer achieve a goal or fulfill a dream, the more you can charge because you’re adding more value than simply doing something merely transactional, like selling lipstick and eye liner.
Next, once you’ve thought about some offerings, consider pricing. Use the Pareto principle to get a better idea of what to charge these top customers. Try a few experiments and see what generates added sales. You might just be surprised at the fact you’re able to capture a lot of the possible added revenue you once never knew existed!
One pro tip: Sketch out your most expensive pricing tier first. Don't blush at the price. Just like a $20,000 Prada handbag that few will buy, your goal is to anchor the top value tier in the minds of your customers so they buy the metaphorical $2,000 handbags because they seem like a bargain.
I once read that a very effective salesperson would always tell his clients, "This isn't going to cost you a million dollars." Why did he do that? So the price he did give them would seem cheap by comparison.