Thursday, November 17, 2016

Important test results you should know

While I was driving to the airport a few weeks ago an interesting research report came on the public radio station that could have a profound affect on your business.  

In an effort to get kids to eat healthy they tried two different approaches.  

The first approach was to thoroughly teach the kids why eating healthy was good for them.  They explained all the positive changes in their body that would make them strong.  They even came up with a great slogan "Eat Strong".  This teaching went on every day for an entire week.

At the end of the week there was zero change.  Eighty percent of the kids still chose to eat the unhealthy choices.

The second approach with a new set of kids was to give them a few brief advantages of eathing healthy and offer a small reward if they made the healthy choices.  The reward was a plastic trophy that said "Eat Strong".

At the end of the week 80% of the kids made healthy choices so they could get the reward trophy.  They continued this for a few weeks and the kids continued to make healthy choices and collect their reward.

When they stopped offering the reward the results went back to making unhealthy choices.

The researchers then went into grocery stores.  

The first approach was to educate customers on the importance of eating heathy.  At the end of the test period there was no change in what the shoppers bought.  Eighty percent continued to make the unhealthy food buying choices.

The second approach was to give the shoppers a small cash reward for buying healthy foods.  At the end of the test period, the results were the same as the kids.  Eighty percent made healthy choices so they could get the cash reward.

How does this apply to you?

Let's say you have a restaurant.  You already have the best food, best prices and best service anyone could possibly provide.  However, more customers will come in if you offer them a reward for eating in your restaurant.  For example a coupon that can be applied on their next visit.

How about a retail store?  Customers already expect a guarantee, a fair price and good service.  
I recently needed a new microwave for one of my rental properties.  I searched online and found an incredible price on a Whirlpool, however, the shipping cost made it too expensive.  I printed the online special and took it to the local Metro Appliances where they advertise to match any price.  They did match it and I save over 150 bucks!  From now on, everytime I need something I will find a low price and collect my reward.

What if you are a sales person?  You already have excellent quality, great pricing, and exceptional service.  But so do all your competitors.  For customers to buy, and continue to buy, you have to reward them, not once, but on every visit.  You have to dig deep and make sure you are giving them something of value every week.  Not just low prices, but something that will help their business grow and something interesting to them.  There has to be a reward for them.

I guess this circles back around to the acronym "WIIFM".  Customers want to know:  "What's In It For Me?"  Give them a good answer and they will buy.

Here's "what's in it for you" in my book "Negotiating Your Best Price":  One person sold their company for an additional 7 million dollars after learning just ONE of the techniques in this book.  Another saved over $10,000 on a software program he was investing in, again by using just ONE of these powerful techniques.

click here to see more WIIFM