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quit-gym

Gyms are notorious for making it impossible to actually quit. They have an entire system built around not letting you cancel. A new company called ClassPass – allows you to easily go to classes from a bunch of gyms. They are pretty much a gym membership service that allows you to go to other gyms. It is a really cool concept, because it doesn’t tie you down to one gym. The total charge is $79/mo.

I read this Quora post on How Class Pass Retains Its Users, and one thing they do is charge you a reactivation fee, if you cancel and sign up again. This makes the user want to stay to avoid that penalty later on.

Some other thoughts on retention:

  1. HubSpot and Infusionsoft charge a setup and training fee ($3k+) when you sign up. This makes sure you are committed and if you decide to cancel later on it makes you think twice about losing that setup fee.
  2. Only allow canceling over the phone. This gives you the opportunity to figure out what the real problem is and allows you to solve it and keep the customer. Gyms, make you come into the gym to cancel and usually show you the spa and massage chairs to keep you … (totally worked on me unfortunately).
  3. Focus hard on making the customer successful. This is by far the best method. If your customers business is more successful because of you – they will never cancel. This is something Salesforce swears by. Keep investing in the customer until you get an email that says “OMG I Love Your Service and Product”
  4. Take over their main operations so if they remove your software it is really hard for their business to function without you. For example HubSpot takes over your entire website, blogging platform, analytics systems, CRM, and more. Great product and super sticky because of this. Another example is ZenDesk, they take over your entire customer service portal.
  5. Only allow yearly contracts and make it super hard to get out of them. This is something Oracle does well.

Kissmetrics had a really great blog post on SaaS retention: 8 Advanced Tips for Never Losing SaaS Customers.

Disclosure: HubSpot is a Digioh customer and HubSpot, Salesforce, and InfusionSoft are Digioh Technology Partners.

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Objection Based Selling

Hit-me-hard

When I first starting selling Digioh, I would wait until the end of the demo to ask questions like “Do you think you would use this product?” or “Does our price fit your budget?”. Towards the end of the demo the prospect was one of the following:

  • Tired/Distracted (checking email, etc)
  • Already wrote off the product as not something they could use
  • Didn’t see value in it

This sucked! Because I just spent 45 minutes busting my hump giving an amazing demo.

I now have a different method that has been working – I call it Objection Based Selling. I try to get sales objections within the first 10 minutes of the demo. By getting the prospects objection super early while I have their attention, I can overcome it. This keeps the prospect engaged and I can steer the demo towards something they would actually use.

Objection Based Selling Demo

  1. First 10 minutes – Get to know their business (aka look for opportunities where can provide their business 10X value). In most cases the prospect may already know of a way your product can help.
  2. Next 10 minutes – go over a few features and ask “Is this something you could use?”, if they say no ask why, probe deep and make sure they aren’t confused on what the product does.
  3. Next 10 minutes – go over setup and “how it all works”, ask questions like: “Does this make sense to you?”, “Is this something you would want to use?”, if they say no, ask why.
  4. Last 10 minutes – go over pricing and ask “Will this fit your budget?”, if they say no, offer an irresistible offer like a money back guarantee. If they say “I’m not the decision maker.” Find out what price they can easily sign off on (most managers can sign off on a $250/mo charge without having to talk their boss)

I no longer fear objections, I crave them! You can’t sell your service unless you overcome their objections. Checkout this post on 7 Common Sales Objections and how to overcome them.

 

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Good Vs. Great Salespeople

No Sales... - I know that feel bro Meme Generator Captionator 2015-05-01 17-36-20

Good salespeople know their pitch and can easily communicate the product.

Great salespeople talk to the customer and can tailer the pitch based on their needs.

Figure out your customers needs is what really sells your product.

 

Good salespeople will ask for things like a Demo Sheet, Brochure, or other assets.

Great salespeople will ask for more targeted leads.

Understand of which type of customers you can close the fastest.

 

Good salespeople will demand new features in order to close more deals

Great salespeople will demand higher prices in order make more money.

Identify which customers are willing to pay more money for the product as-is.

 

Good salespeople will practice their pitch over and over again.

Great salespeople will practice overcoming common objections.

Most salespeople fail at “Closing the customer”, not the actual pitch. Most prospects will give you at least 2 objections before they buy, practice how to get over those.

 

Lots of great books on this topic. My 2 favorite are “The Closer’s Survival Guide” and “SPIN Selling

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30-day Free Trial or 30-day Money Back Guarantee

30-Day Free Trial, means you collect money after 30 days. This is great if you have a very sticky product or your customer acquisition cost is low. You will for sure get more sign ups because there is very limited barrier to entry. However, the downside is most of the users will not turn into paying customers. So you have to be make sure your product conveys value quickly.

30-Day Money Back Guarantee, means you collect money now! This allows you to collect the cash up front but have to work hard to keep the customer happy (so they don’t cancel next month). You will get less initial sign ups because it requires the customer to take out their billing information. This method is good if you have a sales team and your product is at least $100/mo. This method will require some convincing which can be done in the form of a sales demo.

Both methods look similar but are actually 2 very different strategies. I first learned about the Money Back Guarantee Strategy from Jason Cohen, here is the interview where he talks about it.

 

 

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I thought this email was pretty genius. I signed up for LinkedIn Premium about 2 weeks ago and then I see this email. It pretty much tells me to switch out my personal card and expense it to the company.

LinkedIn Premium Email

This is pretty smart. If I’m paying for this out of pocket, I’m more likely to see and cancel a $50 recurring charge ($50=like 6 Netflix accounts). But, if my boss (or bosses boss) is paying for it, $50 isn’t that big of a deal in the Marketing/Recruiting Budget.

The other really interesting thing is they most of detected that I bought it on my personal credit card by not putting in a “Company Name”. Very clever!

This makes a lot of sense. A product that costs under $50/mo is cheap enough where it makes sense to just sign up with your own credit card especially if it makes you more efficient at your own job. Then, you get an email like this and start thinking “Hey, why not, let me get this expensed”.

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Grabbing Attention with a Sale Sign

IMG_1589

I thought this was really cool. I saw the glass doors and immediately thought “Oh No! Someone graffitied on the nice door!” I then read that it was a sale sign.

IMG_1590
I thought this was a really cool way to grab my attention. A simple sale sign won’t work anymore so you have to draw attention as well.

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Dont Get Stuck in the Follow Up Friendzone

People like you. They are impressed by you. They like your industry knowledge and love your product.
interesting
So, they tell you to follow up with them. Because, they like you and your product.
A few follow up calls go by and they haven’t bought yet.. But you keep having conversations with them because they seem on the verge of buying… You know because they like you.
STOP this right now. Just because they like your product doesn’t mean they are going to hand over their credit card and buy from you. Especially if it is a significant purchase (over $1k).
You must ask them to buy from you at the end of each conversation. Don’t let the conversation drag on for more than 45 minutes without asking them to start doing business with you.

 

Get to the real objections. Find out why they really won’t buy from you. These will only come out when you ask them to pay.

 

friendzone

 

Don’t waste time in the friend zone. Get to the real objections quickly and close the deal.
A NO with legit objections is far more valuable than a prospect on a 10th Follow Up call.

Things to say to get out of the friend zone:

  • What will it take for you to buy this product today?
  • You like our product, right? You like me, right? So, let’s make this official. Can I have your credit card info so we can get this going now?
  • I understand you need to talk to your boss. When you ask him, are you going to tell him you need this product and we should sign up today?
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Sales Has A Bad Rep. Here’s How To Beat It!

Sales has a bad rep. Maybe it is because of how movies depict sales people (think: Wolf of Wall St. or Glen Gary Glen Ross) or because the common consumer only encounters them when they buy a car.

used car salesman

However, in selling software, specifically SaaS (recurring yearly payments), the pushy sleazy stuff just won’t work. This is because the customer will just cancel a few months in making the entire deal completely useless.Therefore it isn’t worth even talking about your product unless you can identify a problem that the customer has that your product can solve for them.

It’s All About Solving Problems

Here is my process:
1. Before I go into a sales demo. I spend some time to analyze their website and look for opportunities.
2. When on the call, I ask specific questions like “what are your marketing goals”, “what is your biggest business problem right now”. This step can take up to 15 minutes and is an eye opening experience. It is also very interesting to hear and learn about other businesses.
3. Once I have clearly identified a problem I can solve, I jump into a demo to show them how Digioh can help.

It’s Also About Honesty

keep calm and be honest

Sometimes in step 2, I discover a few problems that my product can’t solve. This is when I listen, I either refer them to another product or service. This creates goodwill and opens the ability to create a relationship for a future sale. It also makes me look extremely trustworthy and someone that can solve problems.The best sales people are problem solvers!
I would love for you to share your best sales stories in the comments :)
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Selling the Dream – Salesforce’s Dreamware

selling-the-dream

I was speaking to a friend of mine that works at a fortune 500 company. He was telling me how his company is considering adopting a new CRM/ERP system and how Salesforce is very interested in this opportunity. He told me that Salesforce has the most amazing sales presentation. Here is what they do:

Salesforce Sales Process (for Fortune 500 Clients)

  1. Salesforce sales team spends a few days on-site at the clients HQ
  2. Discover any major problems the client has with their existing system
  3. Learn what type of acronyms and buzzwords the client uses
  4. Figure out how Salesforce can solve all their problems
  5. Invite the major decision makers to a “Pitch Meeting”
  6. Present a polished demo of how the client’s company will operate once Salesforce has been fully implemented (they even include the client’s logo inside their Salesforce HQ). The client should feel like all the work is done, and all they have to do is say “Yes!”

Eliminating the “Uggggghhh!!!” reaction

This was one of the most amazing things I have heard. The problem with most software is you always get an “uggghh!!!” reaction from the business owner when selling software, because they know all the headaches required to actually start using it. For example they usually have to get a developer involved, then iron out bugs, and then customize it a little bit for their business.

By eliminating the “Uggghhh!” factor, you get the client excited, and most importantly get to “Yes!” faster. How do you sell the dream – would love any pointers!

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How to Close on a Webinar

close-webinars I’ve done a little over 100 webinars and I would like to share a few of my insights if you are just getting started. Here are my three tips to closing customers on your webinar:

1. Tell them exactly what to do to “Upgrade”

When I say exactly, I mean exactly. Here is the script I use:

In order to get all the features I covered today and this incredible deal, just follow my steps: Step 1: Go to this URL {Insert Your Pricing Page URL}

Step 2: Click on the green “Buy” button

Step 3: Enter in your Credit Card Information.

I even show them a screenshot with an arrow of exactly what to do. Then, I repeat the offer and go through the 3 steps again.  I know this sounds pretty unintuitive, but it works! Tell them exactly how to give you money and they will. When I tell webinar attendees exactly what to do to upgrade, I get a 55% conversion rate. When I leave out the exact steps, my conversion rates drop below 15%. Even if the offer and everything in the webinar stays the same.

2. Create a Time Sensitive Irresistible Offer

One of my biggest mistakes was not offering a discount during the webinar. I thought all the information I provided would be more than enough to get them over the edge. If you want your attendees to pay you today, try offering a time-based discount. I usually say something like this:

“This 20% offer is only going to be available during this webinar, after this webinar is over, this discount will be expired.”

3. PUMP IT UP

I’ve attended a lot of webinars and most of them are BORING snooze fests. Do a webinar, where you can speak LOUDLY, you should be projecting as if you are talking to your grandma and she just lost her hearing aid. Keep things light, fun, and entertaining. Be excited about what you are presenting and your attendees won’t drop off. Here are three things I like to do to pump it up:

1. I like to play Eye of The Tiger before the start of the webinar and I even say “I’m playing my favorite Pump Up song Eye of the Tiger, This should PUMP YOU UP for this amazing webinar we are about to have.”

2. I love what I’m presenting and truly believe in it. Any slides or material that I don’t believe in, I take out immediately.

3. I talk LOUD. My neighbors hate me, but my energy stays high and my webinar attendees love me

What are your webinar secrets? Lets discuss them in the comments below.

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