“Ruby” Rachael is in the jewelry business and, as we all know, it’s coming up on the holiday season. Although magazine advertising has been very successful, Ruby knows she needs two more marketing and advertising vehicles to compete effectively. She’s thinking about both a new website and a direct mail marketing piece…but, as usual, budget is an issue. Ruby wants this season to be big so she’s hired a business consultant, a marketing guru and a website designer…all to help her make the right decisions on what to say, whom to say it to and how to say it right.
The business consultant says to focus on basic business strategies with a proven track record and to understand the psychology of how and why people buy precious gifts that last a lifetime—like jewelry. The marketing guru says “just make it shiny and pretty” and the rest will take care of itself. The website designer says she can do what the consultant and the marketing guy can do and, with a shopping cart, can do a much better job at creating sales both locally and nationally.
Business Development Principles
The TUB Statement
Trust. To be successful in any sale, we must establish trust early in the conversation with the customer. There are basically three ways to establish trust: time, qualifications and tribe identification.
Uniqueness. Yes, there are a great many products and services offered in our world. On one level, we all like to have our bragging rights about how our lives are somehow unique. We seek products, services and deals that hopefully make us appear smarter or more successful than we fear we are. So, tell your customers and clients how you’re unique in the products you offer, the services you present or the manner in which you generate or create your product or service.
Benefits. As a business consultant, I often tell businesses their customers or clients don’t buy products or services. People don’t buy a drill, they buy the hole; people don’t buy a bed, they buy a good night’s sleep; people don’t buy a diamond ring, they buy the feelings that will hopefully occur.
The sales paradox. A completed sale is based upon disagreement, not agreement. When you sell a pen for $1, the customer is saying the pen is worth more than $1; on the other hand, you as the business owner are saying $1 is worth more than the pen.
Time to dig deeper
Wendy website has stated that a $5,000 website will certainly do the trick with jewelry, especially if Ruby signs up for the extra videos and flash animation. George, the marketing guru, wants to focus on the message with something like, “What else can you buy for $1,000 that will last a lifetime?” The business consultant simply says stay with the basics, show your integrity and professionalism and offer something truly unique to the customer—and they’ll buy year after year. Ruby only has $5,000 for this project and must decide whether to focus on the website, the direct mail or improve business practices via the consultant.
The website will take 30 days to get the first production website brochure going, albeit without a shopping cart on the site—that will take another 30 days. The initial cost for the website in the next 60 days will be $3,000 of the $5,000 being charged. The marketing guru has promised faster results with a direct mail eight-page catalog mailed directly to every household within seven miles at a cost of $3,000, not including postage. He says sales will start with the first customer opening the seasonal catalog and seeing all the pretty jewelry. The business consultant wants the owner to engage in a review of business practices and to start a “blueprint for success” program, guaranteed (100 percent money back) to create sales right away and to affect long-term sales and profitability.
Do You Have the Answers?
1. Which person for which project should Ruby invest the $5,000?
a. The website, since it will give her the greatest long- and short-term impact.
b. The business consultant, since customers retained are the best investment.
c. The marketing guru, since she has to survive the next few months.
2. From a sustainability, “triple bottom line” attitude, which approach is better?
a. The website, since it has the least impact on the environment.
b. The business consultant, since she can develop sustainable business practices.
c. The marketing guru, since she will be using recycled paper.
3. Which investment will yield the greatest ROI?
a. The website, since, once finished, it’s very cost effective to reach new customers.
b. The business consulting, since it affects the business owner between the ears.
c. The direct mail marketing, since it will generate the fastest sales this year.
What do you think will be the fastest and most effective way to market Ruby’s business? Why?
