Howard
J. Sewell
Learn to Sell the
Offer, Not the Product
(DM News, November 9, 1998)
There's a growing trend in consumer marketing, and high-tech
marketers would be wise to take note. An offshoot of
the general movement towards "one-to-one marketing,"
examples can be seen selling high-priced products ranging
from sport utility vehicles to fine jewelry. Look beyond
the products themselves, and you'll find a strategy
that can easily be applied to high-priced, high tech
solutions from web servers to enterprise application
software.
I call the strategy "Sell the offer, not the product."
To illustrate the concept, let's explore two ads by
Tiffany and Merrill Lynch.
Known for their distinctive blue boxes and for a particular
Audrey Hepburn movie, Tiffany & Co. sells high-priced,
high-quality jewelry and gift items (my positioning,
not theirs). Their ads are what you'd expect: simple
and classy. In a recent small-space ad promoting their
line of engagement rings, Tiffany featured not a diamond
solitaire, but a booklet entitled How to Buy
a Diamond.
Now, Tiffany could easily fill an ad with all the wonderful
qualities that make a Tiffany diamond ring special.
But they know something that probably hasn't occurred
to other diamond merchants: that selling $10,000 diamond
rings through direct advertising is a tough proposition
at best. An engagement ring is a considered decision,
after all.
So Tiffany got smart. Let's not try to sell the ring,
they decided. Let's simply try to identify people
who are thinking about buying a diamond ring and get
them to call us - classic database marketing
strategy. Follow up with respondents, get them into
the store, and let the sales consultants do the selling.
Merrill Lynch is just as smart. Sure, they could litter
their ads with five-year performance figures like the
rest of the pack, but they know that well-heeled consumers
don't base investment decisions on advertising alone.
So in a recent ad headlined, "How Are Taxes Affecting
Your Investments Today?" they feature a photo of a book
called 98 Tax-Planning Ideas for Investors. "Call
for our free 77-page book," the ad exclaims, "before
making any important decisions about reallocating your
investment portfolio."
By placing offer first and product second, Merrill Lynch
achieves two things. One, they stand out from the crowd.
Two, they attract a much larger pool of potential customers.
The company captures not only investors who are currently
reallocating their portfolio (and who offer immediate
sales potential), but also other, more long term prospects
who are at minimum looking for ways to decrease their
tax liability.
So what the heck does this have to do with high-tech,
you may ask? Lots. Take the buyer of a $100,000 enterprise
sales automation solution. Is a VP of Sales going to
look at an ad or read a direct mail piece, no matter
how effective, and immediately offer you his or her
Visa card? I think not. Yet this is precisely the assumption
high-tech marketers make when they spend millions of
dollars on direct marketing campaigns that are little
more than product brochures in sheep's clothing.
Rather than carrying on about your product ad nauseam,
wouldn't it be better to offer a compelling, informative
booklet entitled, say, How to Increase Sales Productivity
in Today's Global Market, or even Seven Key Issues
in Selecting a Sales Automation System? The VP of
Sales already shopping for a SFA system will respond
automatically. But in addition (and here's the key),
the vendor will also attract executives who at minimum
are dissatisfied with their current levels of sales
productivity. And what software sales rep wouldn't jump
at the chance to talk to a prospect with the problem
that his/her product can solve?
What makes this strategy so ideal for the high-tech
marketer is that high-priced technology is not a commodity
product. If you're dissatisfied with the performance
of your investment portfolio, you go shopping for a
better mutual fund. If you're not meeting your sales
quota, do you automatically go shopping for a $100,000
piece of software? I don't think so. In fact, most managers
are probably hostile to the notion of solving problems
by buying high-priced technology.
Solution: don't talk about the technology. Or talk about
it, but don't try to convince someone in the space of
an ad or direct mail piece that your product is the
best thing since Windows. Use your campaign to simply
identify someone with the problem your product can solve,
then let your sales force do the selling. After all,
isn't that what they're paid to do?