The 25/200 Rule Of Marketing and Sales

                 
 

Early in my career, I learned a valuable rule that's changed my life. 

"Reduce the time it takes for your prospect to decide on you by 25% and the result will be a 200% increase in sales."  This concept speculates that we lose much of our business in the sales funnel, while the customer is trying to make a decision about your product in the face of competition and objections. 

During this time, new competitors enter the mix or circumstances change - making your product less desirable or unnecessary.  This is why in sales we stress urgency.  This is why in marketing we emphasize branding (as a shortcut to quality).  In my Yahoo career, I witnessed this in the field.  In my speaking career, I see this every day.  

For example, if your book is a smash hit and your name is on everyone's tongues (Consider @Tony's success with Delivering Happiness), then the meeting planner can instantly agree on you, because she knows her boss wants you because he's reading your book and giving it to all his friends.  This is what JIm Collins experienced in 2002 when his speaking business picked up more than five fold!  

So here's the takeaway: Focus efforts every day on reducing the time it takes to say yes to your product.  

1.  Position your product as solving an urgent problem - This way, the prospect doesn't have to work so hard for you, because you are offering something that eliminates a pain point.  Each day she/he thinks about it is a day with more pain.  

2.  Increase your profile, especially in trusted media outlets - Conquering your trade industry publication OR a mainstream major (Wired, Fast Company, Inc.) gives your product "air cover" so there's a "I've heard of that" instant response from the prospect.  In general terms, when someone's heard about your product from three sources, it tips them into buying. 

3.  Improve your proof of value - Develop very specific case studies, so you can tailor-offer one to a prospect.  General quotes (blurbs) are not useful, problem-solution are.  If possible, integrate photo or video components to bring it to life.  Get permission to use full names and companies to add credibility. 

4.  Version your offers to reward faster decisions - This is where the 'today' price drives business.  Make sure that the reason behind deciding today is real:  Production window necessitates, otherwise costs go up, limited inventory or reward for prompt commitment.  

Last but not least, in sales-mode, always encourage a faster decision because it improves your odds. For example, my fave close technique:  Just showed the customer a great demo, the price works and when you go for the close, he says, "I'd like to think about it, if that's OK with you." 

And you respond, "Sure, absolutely!  Quick question: Do you consider yourself a quick or slow thinker?" 

Comments

[Simon @ Leadership Expert]

I agree with your post. The real 'easy sales' are those where the customer almost 'assumes' that your products is the one they should go with. An abstract example for you was when I chose the company that would handle my email marketing. I'd just heard about 'AWeber' so much that I saw it as 'the' email marketing software, and it was just a no-brainer.

As a result, I bought it even before checking any competitor out. So they made an instant sale from me without even having to differentiate from their competition. However I think it's worth noting that the reputation they have was probably from their differentiation in the first place however, so perhaps this isn't as easy win as it first sounds.