Month: February 2013

Mousetraps and Snow Shovels

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Falling snow can bring all kinds of thoughts to mind: Grandma’s hot apple cider, Saturday morning sledding or tackle football at recess in 4th grade.

Snow always makes me think of opportunity.

You can go to bed on a clear night and wake up with a foot of fresh snow on the ground. Suddenly everyone has an urgent need. Cities and towns that aren’t prepared for it shut down altogether. (No chance of that happening here in Chitown!)

But those who are ready with shovels, plows and rock salt can become neighborhood heroes. Some build businesses specifically for times like these.

My shovel saw action for only the second time this winter on Friday. In honor of my poor, neglected tool, I’m going to contort Quote of the Week 65 as follows:

“If a man can make a better snow shovel, the world will make a beaten path to his door.” (On his freshly shoveled sidewalk, no less.)

As you probably noticed, this statement is no truer than Emerson’s quote about mousetraps.

Here are a few things to think about. No matter how good your shovel is

  • People who live on tropical islands aren’t going to buy from you. Inhabitants of desert-like climates will never be your customers
  • Many people will purchase a snow blower instead of your shovel
  • Those who don’t have sidewalks or driveways won’t be very interested in buying from you

… regardless of how strong your marketing is.

Are you concentrating on creating shovel innovations? Or are you focused on helping people handle their snow problems?

Which do you think is the better path to take?

The only thing that compels people to buy snow shovels is snow. The only people that buy snow shovels are people who know they have or will have snow piling up in their yards.

Strategic Subtlety: A Quick Copywriting Tip

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Blatancy does not command respect.

Over-statement, in reaction, creates commensurate resistance.

   – Lord & Thomas Creed #1

While I’m a big fan of big claims and bold promises, strategic subtlety can be very persuasive, in a stealthy kind of way.

Take a look at an recent example I got in the mail. Here’s an excerpt from Imagine, a quarterly “magazine” from the University of Chicago Medicine.

U of Chicago

Notice how the writer implies that the University has a noteworthy history of “contributions to science and healing” without coming out and saying it. The sentence gently forces you to draw assumptions, subtly prompting your imagination to fill in the blanks.

This is more effective, not to mention easier to consume, than sharing a list of achievements that most readers will probably find boring.

One of the great secrets to persuasion is that people almost never doubt their own conclusions. A simple statement like the example above convinces us that the University of Chicago Medicine has a remarkable past of medical advancements, which makes a promising future seem almost inevitable.

All of that with no apparent effort to “sell” the idea to the reader.

Consider this: if the writer had tried to convince you of all the wonderful things that have been accomplished in the past, how would you have reacted. The mere attempt to convince is a turn-off. As Lord & Thomas Creed #1 says, “Too much effort makes men think that your selling task is hard.”

Strategic subtlety makes the quality of your product, service or brand seem to stand on its own. It’s so good that you don’t even need to explain it.

Where can you use subtlety in your sales copy to improve its persuasive power?

GoDaddy’s Super Bowl Ads Poured at Least $4 Million Down the Toilet

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Advertising during the Super Bowl, GoDaddy “spent at least $660 on each new customer… to get what they hope to add up to $54.30 each by 2015.“

In his Copywriter’s Roundtable today, John Forde wrote:

You remember, I’m sure, that I joined the legions that trashed one of the “GoDaddy” Super Bowl ads.

You know the one, where a computer nerd sucks face with supermodel Bar Refaeli to prove something or other. I hated it. And so did a lot of people.

I praised GoDaddy’s other ad, where an international cabal of disenchanted wives and girlfriends chided their men for not acting on the online ideas that might have made them rich.

This, I thought, communicated the promise.

But ultimately, of course, you’ll also remember that the big question about ALL the ads was whether it was “worth it.”

Well, at least with GoDaddy, now we have some data.

As many wrote in to tell me, it turns out that the day after the Super Bowl, GoDaddy’s new customer sign ups went through the roof.

In a single day, they added approximately 10,000 new customers. That certainly sounds like a coup, yes?

But is it time for me to grab the ketchup and my crow-eating utensils? Maybe not yet.

The folks over at Yahoo Finance did some math. Considering typical domain renewals and other factors, the estimated lifetime value per customer works out to about $54.30.

That means those new Monday sign ups are worth about $540,000 over the next couple years. (Again, an estimate, but a fair one.)

Thing is, each 30-second commercial — not counting any production costs or post-commercial mouthwash for Ms. Refaeli — cost them $3.75 million.

So, to get $540,000 in lifetime value out of those first 10,000 customers… they spent $7.5 million.

Looking at it another way, GoDaddy spent has already spent at least $660 on each new customer… to get what they hope to add up to $54.30 each by 2015.

So, asks Yahoo Finance, what if the smooch-heard-round-the-world lingers a bit longer, with the media coverage and all?

Even if the net result is another 50,000 new customers from the two ads, the same lifetime value puts the cost per new customer at $150.

$150 to get $54.30 in return still isn’t a great deal, any way you slice it. For GoDaddy, that would still add up to a $4.7 million loss.

But hey, at least the actor got to make out with what might be considered a super-babe on national TV, right?

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I highly recommend that you visit John’s website at http://copywritersroundtable.com.

If you sign up for his brilliant weekly newsletter, Copywriter’s Roundtable, you’ll get $78 worth (retail; the actual value is much much higher) of free gifts.

Self-Defense Against Business Hijackers

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Do you own the patent on your product, service or process? If not, you are in danger of being “knocked off” by a competitor at some point. Chances are that they’ll charge less than you for what appears to be a similar offering.

In my January newsletter, I said

“…there’s really no way for products to be truly unique anymore — at least not for more than a few months. Companies that create technological advancements that customers will pay for usually see copycats coming up right behind them.

“So what do you do in an environment where your advantages can be ripped off so quickly?”

Have you seen those SodaStream commercials on the air recently? Seems like a cool product, right? As someone who knows very little about such things, I also thought it was pretty much a one-of-a-kind product.

Well, earlier this month, I saw knock-off Cuisinart version merchandised right next to the “name brand”…on the SodaStream-branded shelf display (complete with SodaStream video playing on a loop) — for $30 less. In a national retail chain.

I wish I could find the picture I snapped.

SodaStream spends $18 million/year in advertising (according to the most recent figure I could find), including buying for premium shelf space and an in-store video player, only to have Cuisinart undercut them on price and hijack customers at the moment of decision.

How do you think customers will react when they see a competitive product, which could be just as good, for nearly a quarter cheaper?

More importantly, can you see how this applies to your own business? Are you facing competitors who charge less than you? Does their mere existence cost you sales?

How can you protect yourself? Here are a few thoughts.

1) Have better, more resonant marketing. When potential customers form an emotional or mental bond with your product, service or more often your brand, they often look for you — not the other guy– when they’re ready to buy.

2) Offer an insane guarantee and/or service after the sale. Think LifeLock. They offer a $1 million guarantee if identity thieves get their hands on your information. (They’re a good example of strong marketing, too. Remember the commercial where the CEO broadcast his social security number?)

Service after the sale can set you apart from all of your peers. It’s a terrific way neutralize the fear that kills so many sales. When customers buy from anyone else, they’ll be all alone, trying to figure out how to set up, maintain and get the most from their purchase. You can make life easy for them by being there for them.

3) Does your product carry prestige, recognition or affiliation with some desirable group? Compare diamonds and moissanite. They look alike; some will even say that moissanite looks better than diamonds. But everyone knows which is a more desirable symbol.

4) Offer a bundle or bonus. The added value can make all the difference when it’s time to buy. Another idea would be to link your offering with a related product that would complement the purchase. Again, you’re making the consumers life better and easier than it would be if they dealt with the competition.

5) Create implicit doubt in the quality of the competitive service. Be sure to do this carefully and with class.

You could say something like this: “Plumbers at Acme are the only ones certified by the Illinois Board of Health for contamination-free work in residential and commercial buildings.” That means anyone else could be leaving dangerous germs all around your house. How much more would homeowners be willing to pay to protect their family’s safety?

Don’t attack anyone when you’re using a tactic like this, and always be 100% honest.

If you need some help crafting and implementing your own uniqueness, USP Made Easy may be exactly what you’re looking for.