Selling Something? Proof That Three Options Work Best
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I thought relationship marketing was all about people. Make more acquaintances, build more relationships, sell more. Maybe not.
Let's redefine relationships. Let's say you're selling something. People are interested in buying, but don't really know what to pay or even whether they should buy, or what to buy. You need to help the solve the problem. The first step? Figure out how to give them something - a related product or service - free.
We have been working on this with one of my clients. He sells granite counter tops. To make the hole for the sink, he simply cuts out a bit of the sheet of granite, and, basically, throws it away. We've been talking about something different. Instead of throwing it away, he gives it, after proper edging, free, to his customer. It becomes a freebie. Customer gets a wonderful granite counter top - and a free matching cutting board. The counter top is less likely to become scratched by carving knives, looks better, lasts longer.
Why do this? Well, people ask for a bunch of quotes on counter tops, from all sorts of suppliers. My client has found a way to differentiate himself from the other suppliers. The free cutting board is enough to tip things his way.
What happened here? All things being equal, my client has tipped things his way by making them unequal. Buy from him get not only the best countertop available (I'm convinced - you ought to see his work) but get a free cutting board that matches your kitchen exactly. Who else gives that? And for free, at that.
Customers have choices. They can buy the cheapest option, which, without options, they generally will do. They could buy the most expensive option, something they're less likely to do. But, give them something free, and, amazingly, they're more likely to buy from you.
There're lots of other examples in Ariely's book. Magazine subscriptions. Homes. Basically, he points out why people make choices. If you think about how those choices are made, you can help them buy more of your products or services. Very powerful ideas.
References.
Ariely, Dan. Predictably Irrational. The Hidden Forces That Shape Our Decisions. Harper. 2008.