How to Maximize Revenue from People Who Said No
Let’s face it, you can’t please everyone.
Inevitably, some people don’t want to buy what you’re selling – and that’s okay!
One of the tricks to improving your revenue over the long haul is to learn how to extract maximum value from ‘no’ customers. By implementing a few basic strategies, you can maximize revenue from ‘no’ customers and grow your business.
My man and fellow marketing expert Frank Kern recently discussed the best strategies businesses are using to optimize ‘no’ customers, so I’ll share some of his ideas along with mine on this subject. By collecting email addresses and circling back with a new offer, for example, you can make money even when customers initially rejected you.
Today, we’re highlighting some of the best strategies online and offline businesses can use to maximize revenue from people who said no.
Recognize that Most People Say No
Most customers decline your offer. The vast majority of businesses do not have a conversion rate over 50%. In fact, most businesses aim for a conversion rate of 1% to 10% – or even lower, depending on the niche.
The truth is: most customers will say no. Most people who visit your website are not interested in buying what you have to offer.
However, that’s also why ‘no’ customers are a big opportunity. They represent 90% or more of your website visitors. By ignoring no customers, you’re letting thousands of people slip away.
Get Something Small from ‘No’ Customers – Like an Email Address
You don’t have to immediately convert ‘no’ customers into paying customers. Instead, start by collecting something small.
Many websites request an email address before you leave, for example. When you hover over the ‘X’ or ‘Back’ button, you might see an email submit form. Even if the customer is leaving your website, you can collect one more piece of information from that person.
If that person leaves your website, then they have provided zero value to your business. If you can collect an email address from that person, however, then you expand your email list.
Many ‘no’ customers are interested in your product or service – but they can’t afford your price. By collecting an email from this type of ‘no’ customer, you can send them an alert for a future offer or sale – like a discount coupon code.
Sometimes, all it takes to convert a price-sensitive ‘no’ customer is a 10% coupon code. If you don’t collect an email address from a customer, then you can’t deliver that coupon code.
Create an email submit form on your website and extract value from ‘no’ customers.
Build the Right Type of Funnel
As my bud Frank rightly observes, most people don’t buy a product or service immediately. Only a few will act spontaneously to spend money. They research a product or service, compare options, then buy.
Unfortunately, too many companies miss that point. They create sales funnels that guide people through a series of steps, ultimately pushing them towards a final sale. These sales funnels rarely consider how real people operate. They treat customers like gullible dummies.
Sales funnels work on some customers, but they irritate other customers. Some customers are impulsive and will bounce down your sales funnel willingly, listening to (and believing) everything you say.
Other customers, however, make a more careful decision. They go through a series of “response indicators”. Each response indicator is an action or step the customer takes before making a purchase.
Take Advantage of Response Indicators
Response indicators are crucial for generating conversions. Good marketers understand the response indicators a customer takes before making a purchase.
If you’re buying a TV, for example, then you might visit Best Buy and a local electronics store before checking prices with Amazon or Costco. In this case, comparing prices between companies is the response indicator.
Why is this important?
As a marketer, your goal is to convince a customer to take that first step – that first response indicator.
Imagine that you’re interested in buying a new car, so you stop in at a car dealership. Before buying a car, most customers take a test drive. That’s why many car salespeople push you towards taking a test drive. It’s their first priority because it’s the first step many customers take on the path towards buying a car.
Understand the Value of Customer Response
Using prospect and customer response effectively involves tracking what your prospects are doing in your campaign, and then dynamically sending customized marketing messages to them based on their behavior.
- Customer #1, for example, wants to speak with a salesperson before completing a sale.
- Customer #2, on the other hand, wants to visit a no-nonsense sales page that outlines all pricing and subscription options upfront, making it easy to compare rates in a no-pressure environment.
You don’t want to force Customer #2 to call a salesperson to complete the sale. Customer #2 doesn’t want to speak with another human being in a sales environment. That’s not how Customer #2 does business.
Similarly, you don’t want to force Customer #1 to visit an impersonal sales page. Customer #1 wants the personal touch of a salesperson.
By tracking customer behavior and placing the best offers in front of customers, you can maximize the value of prospect and customer response. You change the message based on how customers respond to current messages.
Recapture Lost Value from ‘No’ Customers Today
Most of your prospects aren’t going to buy right away. Some will never buy. But many of them are qualified and may just be waiting for the right offer or timing. They’re interested in your product or service, but they weren’t ready to buy due to priority, urgency, distraction, or a host of other factors.
Keep following up with them and finding ways to help move them a little closer to what they want until they’re ready to buy.
To request a free consultation from Renew Marketing, contact us today. We’ll explain actionable ways to follow up with and engage your prospects to maximize revenue.
