Features, Advantages and Benefits

Hey there,

Why is it that most people in business think that they are going to sell what they have by delivering a list of features along with a few reasons why someone should buy their product?

The truth is that there is a much deeper psychological process behind making a decision to buy something than most business people realize.

When selling to Consumers, the pitch must appeal to a buyer’s emotions or the sale is simply not going to take place. When selling B2B, keep in mind that the buyer is still a human being with needs and a strong desire to succeed – a benefits oriented approach has been proven to be more successful than any other technique we tested during the past 20 years.

If you’re ready to sell something, we are ready to help you create a winning pitch.

The first step is a bit of homework so grab a pencil and some paper and get ready to answer a few questions:

• Write down a list of your competitors and their websites
• Write down what they’re doing, what they’re offering etc.
• List their product’s benefits

Ahh, now we come to the core purpose of this article…

Do you know the difference between features, advantages and benefits?

A feature is what a product has. In essence, the core components of your product or service; sometimes referred to as the bells and whistles or buttons, knobs, levers, switches, format, platform etc.

An advantage is what the product does or how it performs against a competitive product. A vacuum for example, is a product that might have the advantage that it doesn’t need bags. Another advantage would be that it can clean the floor in a room without you being present. In a services business one advantage would be the number of years of experience you bring to the table or your level of certification. Some common advantages include words like fast, easy, simple, cheap and good.

A benefit is what a given feature means to your prospect in terms of emotions and passion. A true benefit goes really deep and says something about how it makes you feel – a really great benefit gets a consumer excited because it means something special to the buyer.

Here’s a good example. One of my Clients sells a facial cream online and she called it something like, microderm abrasion emulsion – essentially it is a cream that helps reduce wrinkles.

On her website she listed several features such as ‘it reduces wrinkles’, ‘it comes in an easy to use home care kit’, ‘it is pH balanced’ etc etc etc.

When she came to me to help increase sales, conversions and traffic… I asked her to:
Take a piece of paper and create three columns.
List as many features as you can in the first column.
In the second column, list what you believe are the top benefits.
She wrote down ‘because it reduces wrinkles, it makes you look younger’ and ‘because it comes in a home care kit, it is easy to use at home’ and the third one was ‘because it is pH balanced, it’s gentle on your skin’.

As politely as possible I let her know that those are really advantages not benefits so we continued the exercise and I asked her to list in the third column what she felt the ultimate end result for her Customer was going to be – in other words, ‘the ultimate benefit’.

Here is what she wrote:
‘If it makes you look younger: then it means you’ll be more attractive, you’ll get that promotion at work, you’ll feel more confident, nobody will know your true age, you’ll fall in love all over again and you’ll be able to attract that person you’ve had your eye on.’

‘Since it’s easy to use at home: you won’t suffer embarrassment by going to a doctor’s office, you don’t have to waste time, it’s like a face lift in a jar in the comfort and privacy of your own home.’

‘Since it’s gentle on your skin: there are no risks, no pain, no healing periods like surgery or those harsh chemical peels people usually buy.’

We had arrived…
These were descriptions of how Customers would feel before, during and after they used the product.

In a very short time she was able to list several of the true benefits her product offers to her Customers. She took this piece of paper and changed her website to reflect the benefits. She also adapted every piece of marketing material including all advertising (online and offline), all landing pages, sales letters and Customer communications and within 2 months her sales doubled. One month later sales doubled again. Then she adapted the packaging to reflect the new text and sales doubled again. Sure we did some work on conversions and 6 months later, she was not able to buy as much traffic as she wanted – not even from Google ,Yahoo and MSN combined… Folks, this stuff really works! I’ll let you guess if I am referring to the creme or the marketing process here.

Remember, real benefits go deep. They live within the emotional and passionate sweet spot of the person wanting or using your product. In order to increase your sales you will need to tap into that sweet spot and then use the real benefits in everything you produce to help sell the product.

The Psychology of Sales

Sure, there are boatloads of books on this topic so I’ll do my best to keep this article brief, helpful and to the point. First, this page is dedicated to the many kind folks I meet each day who really need help selling their products and services.

Products and services are wonderful things from both the perspective of the consumer or Customer and the person or company that is offering or selling the products and services. For starters, the consumer gets some form of benefit from the products or services otherwise there would be little reason to purchase them. The seller, likewise receives a benefit in the form of compensation, usually monetary. The difference is that the consumer gets value whether perceived or real from the transaction or the receipt of the product / service.

How the consumer perceives this value is the topic of this article today.

From here on out when I mention the word ‘products’, please understand that I mean both products and services.

Here are my suggestions when you want to sell a product to a given target market.

1) Know your target market well.

That means that you need to understand who they are, how they tick, what they like and dislike etc. If you have hundreds or thousands of Customers this goes for you too – that is what databases are for!

Let’s start with something basic like Motivation Strategies.
Are your Customers motivated TOWARD something or Motivated AWAY FROM something?
If you were to ask them why they purchased your product, what would they say?
More importantly, what would you learn from their response?

If you were to ask your Customers something neutral such as “What did they do this past weekend?” and then follow up the question with “Why did you do X this past weekend?” Chances are good that you will learn something about their motivation strategy.

If they were to answer that they “went to the mountains to ski” this would indicate that the person is likely to be motivated TOWARD something and thus, they tend to know what they want and they will move toward their goal of getting what they want.

If the response to question 2 were “to get out of the city” then you might guess that this person is motivated AWAY FROM something and this sort of individual knows exactly what they don’t want.

In order to sell to these two very different types of people, you need to be able to identify their motivation strategy quickly and then apply a marketing tactic even quicker. Your first step is to create two sets of marketing tools from business cards and form letters to signs, messages and selling phrases that you will learn by heart. Your purpose is to communicate with your prospect effectively using their choice of motivation strategy so that your message is accepted with gratitude and your offer is given priority consideration.

If you wanted to sell a massage to a person that is motivated AWAY FROM something, your marketing message may be something like:

– Want to relieve stress?
Come visit our Spa on the 3rd floor right now.
(special offer limited to the first 5 people, today only)

– Need to get away from it all?
Experience our 100 minute vacation
(Hurry, we only have 4 slots left)

If you wanted to sell the very same massage to a person that is motivated TOWARD something, your marketing message may be something like:

– Are you ready to relax?
Our experienced massage therapists are waiting for you on the 3rd floor.
(special offer for first time Clients – today only)

– Would you like a treatment that is usually only offered to top athletes?
Sign up for a medical massage on the 3rd floor today – there are only a few slots left.

In addition to knowing your Client’s motivation strategy, learn all you can about them and take notes so that you can communicate in a very personal and meaningful way in the future. For example, if you do not see a Client after several weeks, why not send them a thank you note for their last visit and mention a few personal things in the note that would perhaps encourage them to get back in touch with you. When they contact you, present them an offer that they would find hard to resist.

2) Always, ALWAYS, ALWAYS include a benefit in your marketing message. Just to be clear, I am referring to a benefit that your Customer experiences when they do business with you.

3) Incorporate some form of scarcity in your offer – there may be thousands of X available but to many people, the perception of scarcity is a very powerful magnet.

4) Upsell and Cross Sell at the appropriate moment but do it as often as possible. This is a lesson learned from McDonalds and it pays off royally. Have you ever been to a restaurant where they asked you if you wanted fries with your order? That would be an example of a cross sell. If you heard someone ask a Customer if they wanted a large order of fries for only 20 cents more, that would be an example of an upsell. Do not miss out on this essential element of profit building unless you really want to leave money on the table.

5) Practice each of the above suggestions with Clients, Customers, Prospects, Friends – you have nothing to lose

6) Test variations of the above to improve your results and keep track of what works and what does not work.

7) Reserve time in your schedule for building relationships. Many of our Clients are so busy delivering products that they forget to keep relationships warm. The result is that they have to work extra hard to acquire more new business. It is much easier to keep a Client than it is to find a new one so, spend a few hours each week, keeping tabs on your Customers and going out of your way for the ones you really want to keep. The idea is to grow the business you do with your best Customers in such a way that you build a lifetime of value into the relationship. Build those relationships and they will pay off big time.

Naturally, we offer our Clients courses in the above areas with the implied benefit that knowledge will increase their sales but we do things a bit differently over here. We select our Clients very carefully, only a few applicants are accepted each time we open the doors but those that make it through have a compelling business case and a determined desire to succeed. These are the kind of folks we enjoy helping. We could guarantee that our methods will double your sales or you get your money back but instead, we often opt for a success based fee thus, we only get paid if our efforts deliver results. Have you ever worked with a company like that before? Come on, give it a try and apply for a chance to be one of our top performing, revenue generating Clients today.

Reality vs. Technology Bubble You Decide

This was too entertaining to pass up so I just had to share it with you. Did you ever wonder about all that hype regarding a technology bubble? It seems that companies can create incredibly advanced technology yet, if the market perceives it in any sort of negative way, the product (regardless of how good it is or how many problems it solves) does not stand a chance to succeed. On the other side of the spectrum, you have large multi-national companies that produce less than adequate products (Microsoft Vista is a good example of this) but they manage to push the products into the market and then reap the rewards of success partly due to their talented marketing team’s efforts in self promoting by creating enough buzz to fool the market into believing that the product is a raving success. Amazing, yet scary – all at the same time. If you would like to know more about making your products a raving success, let us know your thoughts.

httpv://www.youtube.com/watch?v=YuAJHaXKgFk

Grow or Die

There is much to be said about the plethora of business models but rather than bore you with details of things that simply don’t work or concepts that have become outdated in the online world of today, I thought I’d present a viewpoint based on innovation and direction.

Each firm we deal with has two possible outcomes in addition to stagnation – to grow or to die. It all depends on the choices made by executive management and their board. Some have said innovate or die but the truth is that innovation in and of itself is not a viable business strategy that delivers profits and thus an opportunity for growth.

I refer to innovation in the sense that you are trying to do something new without reinventing the wheel. When I use the term direction, I am referring to the executive management’s intention decision to move the company toward a specific goal – in a given direction. A dear colleague has provided me with a few graphics so that I don’t have to type 1000 words to present this concept.

Let’s begin with a definition so that you know where I am coming from…
A business model describes the value an organization offers to various Customers and portrays the capabilities and partners required for creating, marketing and delivering this value in addition to relationship capital with the goal of generalizing profitable and sustainable revenue streams. Whew, that is a mouthful! Here is a more visual representation of that text…

So, given that you have your infrastructure in place, a compelling offer with a solid value proposition, a relationship with your Customers either directly or via a partner and a mechanism ready to capture orders and convert them to revenue… you are in business. But is your model optimized for what you want to achieve? Obviously, application infrastructure and IT systems need to support the model on the back end.

But, what about direction? What course was plotted by those in command? There are a few directions to choose from, and at least one will make sense to executives wanting to grow their business – but in what direction might they want to grow? Here is a simple graphic to help understanding the available options.

In each of the four quadrants below there is an opportunity for growth. Each has an unique way to move the company forward so that the business model supports rather than hinders growth. By being innovative in your approach and testing what works on a consistent and frequent basis, you will be able to optimize your model for your market more effectively than 95% of your competitors.

Take a moment and think about the variables that drive your business – for a car it would be the gas pedal. The more pressure you put on the gas pedal, the faster your car is going to travel. You use a speedometer to measure this in your car so how do you measure success in your business? Well, for starters you need to select a variable that drives your business and find a way to measure the performance delta so that you know if putting pressure on this variable delivers a positive outcome or not.

At BoxOnline we have extensive experience in improving online business models and can literally guarantee that your company will increase revenues after you improve your conversion rates.

Most business process consulting firms make promises that they simply can not keep and still manage to invoice their Clients each month for unfulfilled objectives. At BoxOnline, one of our value propositions for helping our Clients increase online revenues is a success driven fee. If you do not succeed – neither do we.

If you need to grow your revenues and agree that an increase in your conversion rate might deliver the results that your board is after, we may be able to provide you with some innovative input that has already delivered results to hundreds of successful online businesses in the past year. What have you got to lose? Contact us right now..

Are you an Entrepreneur?

There is a lot of discussion these days about what defines a true entrepreneur and whether financial success is a pre-requisite of being an entrepreneur. Well, rather than argue moot points, let’s look at this from a practical, self evaluation perspective and see what is revealed. Below I compare and contrast being a freelancer with being an entrepreneur – I can’t wait to read your comments:

1. A freelancer is about the work. An entrepreneur is about the business…
2. A freelancer is a doer. A freelancer knows the tactics. An entrepreneur is a negotiator, a visionary and a thinker. An entrepreneur builds strategy and is constantly testing it.
3. A freelancer thinks the work is the business. An enterpreneur knows the business supports the work.
4. A freelancer is disinterested in ‘business controls and necessities’  – including thinking, budgets, invoices, business plans etc. which all get in the way of the ‘real’ work. An entrepreneur understands that without those ‘business controls and necessities’, it is simply not a business – it’s a job.
5. A freelancer might want to grow a Client base. An entrepreneur knows a business either grows or decays, and is constantly looking for ways to keep the growth managed and within reasonable risk parameters.
6. A freelancer lives in the now with an eye to long term Client relationships that might afford some security. An entreprenuer is looking to a vision of the business, now is a reflection of what the business will be.
7. A freelancer often doesn’t invest in his or her own equipment, training, or help. Many freelancers don’t delegate low-level skills or tasks that they don’t do well, because they think in terms of cost rather than investment and best use of time and resources. An entrepreneur knows that time is money, invests in future development and the business vision. An entrepreneur will pay for skills that he or she doesn’t have knowing that it is money well spent on quality and commitment.
8. A freelancer works from day to day. An entrepreneur has a business plan.