The Tale Of Two Horses

Now that we’ve covered the basic principle that underlines the idea of “lead conversion” (when a lead makes the decision to become a customer), being time - and making the cognitive decision to accept that fact, and building systems around that, we can then move to the next principle.

Again, the idea of leads taking time to finally decide to become a customer will always be there.

Human beings need to take time to think about things.

To consider alternatives.

Etc.

So that’s why we build good follow up systems to stay in touch with those folks, so when they decide they are ready to move forward, we’re top of mind.

The next principle revolves around the idea of giving your leads a “reason why” they should consider moving forward.

Something that makes them think…

“Oh wow. This is a no-brainer.”

Now, please understand, implementing this principle into your business is not a necessity (like I would consider follow up to be), but I do believe it can help.

You could simply implement a strong follow up system in your business, and simply invite your leads to the next step of the process (meeting with your team, making the purchase, scheduling a call, etc), and be totally fine.

But I do think it helps when you can layer on the additional principle of giving them a “reason why” they should take the next step.

One of the reasons that leads are hesitant about moving forward (there are many more reasons than this, by the way) is because of fear.

What if the product they purchase doesn’t do what it says?

What if they invest in your service at significant expense, and it doesn’t work out?

What if they’re not 100% sure that your product or service is even what they need altogether?

Some common thoughts they might have, right?

And I’m sure these are thoughts that we’ve all had as well when it came to making a buying decision - big or small.

So, our goal with the “reason why” principle is to remove that fear all together.

There are “levels” to this principle by the way.

And many you are already familiar with.

Here’s one of the most basic “levels”:

The money back guarantee.

Don’t like the product or service?

We’ll give you your money back.

7 day guarantee.

30 day guarantee.

You name it, but the principle is the same.

Buy the product/service, see how you like it.

If you don't, we'll give you your money back.

That’s one type of a “reason why” offer that can help your business.

For example, we had a guarantee for a photography business that I ran with my wife that basically said….

“We promise this will be the best photography session you’ve ever had, leaving you feeling totally comfortable and not awkward in front of the camera, absolutely loving the photos from your session, or your session is totally free, no questions asked”.

And you know what?

It helped.

Did it change everything for us?

No, but it certainly helped the folks that were nervous about investing in a photography session when they weren’t 100% confident the photos would come out looking like they really wanted them to.

And if you’re wondering how many people ended up getting a free session…

Around 10 or less (from the top of my head) out of over 1,500 customers.

So, right around 0.6%

Now, of course, we always would have refunded customers that were not happy with their session, but I think it can sometimes help to make it really clear on the front end for them.

We have to think of it from their point of view.

They are many times making a big investment in our services or products.

An investment that they (and/or their team) have worked hard for.

And we have to respect that.

And we should (if we can) give them a reason why they should have peace or mind moving forward, knowing that we are willing to fully protect that investment.

Again, even if that investment is “small”.

We're trying to think about what’s best for them.

We’re trying to put the risk on ourselves, and take it away from them.

And of course, you might think…

“Well if I create some sort of guarantee like that, won’t my customers take advantage of it?”

And sure, some will.

But most won't.

And the net increase in potential customers you might get from having a clear guarantee would (more than likely) outweigh the customers that do decide to get their investment back.

And by the way, if the customer didn’t get the result they were looking for, wouldn’t we want to give them their money back anyway?

That’s why I think it could help to put a guarantee in place (again, if you can).

For some businesses, it may be difficult to guarantee some sort of outcome.

And I totally get that.

But for many, it’s absolutely worth exploring.

Going up one more “level” on the “reason why” offer staircase, we get to a concept like….

Try Now, Pay Later

Instead of guaranteeing a result on the front end, having them pay first, and then providing the product or service, you would do the reverse.

Provide them with the service/product FIRST, and then have them pay after a certain period of time, or when the result has been reached.

If you can’t guarantee a result on the front end, could you provide them with the goods and services to try for themselves, and have them pay if they decide they are happy with the result?

Sure, being “happy” can absolutely be subjective, but if you are confident (in some way) that the client will (more than likely) be happy with the final result, resulting in new revenue for your business, would it be worth offering?

And I totally get that there is a cost associated with this type of offer.

You are coming out of pocket on the front end, with no guarantee for revenue on the back end.

But how many more opportunities would you give your business if you were able to make an offer like that?

Attracting a flood of new customers that you may otherwise never have attracted.

Possibly (assuming your product/service/offer is rock solid) leaving you with net/net more customers and revenue, even when you factor in the opportunities that didn’t lead to a sale.

Again, not a necessity, and may not be relevant to your business, but it is an interesting concept.

Here’s an example from Claude Hopkins: (and here’s where the “tale of two horses comes from)

He goes on to say…

“One great advertising man stated the difference [between a general guarantee and a try now, pay later promise] this way” ‘Two men came to me, each offering a horse.

Both made equal claims. They were good horses, kind and gentle. A child could drive them.

One man said, ‘Try the horse for a week. If my claims are not true, come back for your money.’

The other man said, ‘Try the horse for a week’. But he added, ‘Come and pay me then.’

I naturally bought the second man’s horse.”

And in another chapter he says…

“The maker of an electric sewing machine found advertising difficult. So, on good advice, he ceased soliciting a purchase.

He offered to send to any home, through any dealer, a motor for one week’s use. With it would come a man to show how to operate.

‘Let us help you for a week without cost or obligation,’ said the ad.

Such an offer was resistless and about nine in ten of the trials led to sales.”

Powerful.

Taking all of the “risk”.

Letting the customer try it first, and pay later - if they were happy with the product or the result.

Again, these are just a few concepts around the “reason why” principle that can help encourage your leads to become customers, but I think this is a good thought experiment to use for your own business.

Without trying to “twist someone's arm”, and without using what we would consider “cringeworthy marketing tactics”, what can we present to our leads that is both honest, ethical and transparent that would give them a good “reason why” to decide to move forward with our business/service/product.

It could also be things like discounts, bundle offers, deadlines (if they are authentic), etc

But having a good “reason why” can help.

Again, not a necessity, but something that could be useful for your business - AND for your potential customers.

Might be worth giving it a shot and testing some “reason why” offers out and see which ones drive the most results (and happiness) for your leads and customers.

Hope this was helpful!

Until next time,
Colin