Small Business Marketing Solution For Getting Attention by Using Fear

As Seth Godin points out, “Fear is a powerful driver of decisions. Without fear, no one would use seatbelts… you don’t use them because they’re fun, you use them because you worry about what would happen if you crashed without them.”

As numerous studies have shown, “pain” (which leverages the fear factor) out pulls “gain” (the benefits that someone will get by doing something) by a wide margin.

Obviously fear is easy to overdue, with the result being that one sounds like a deranged Chicken Little. However when you are preparing your sales letters or marketing emails and you are debating on whether to be the Sounder-Of-Good-News or the Deliverer-Of-Dire-Warnings, you’re going to get a far better response if you dawn the cloak of the Grim Reaper.

But you probably heard about fear as a motivator before. What I really wanted to write about today is how FEAR turns otherwise confident business owners and consultants into incredibly wimps when it comes to marketing.

And what made me think about this was an article I read recently about poker. Now in all candor, I’m not a big poker follower, but the interview with Annie Duke who apparently is both a good poker player and astute business person (got to the finals in one of Donald Trump’s Apprentice programs if that’s any sort of criteria) made a comment that really resonated with me.

“People want to be right. They are afraid of being wrong. It’s not about being right; it’s about being right often enough. If you make a $ 1000 investment and the return is $ 10,000 you need only be right 10% of the time. Shrug your shoulders when you are wrong. Great players free themselves from the worry about being wrong.”

I think you get the lesson, but in case you don’t allow me the opportunity to hammer the obvious stake into the already dead cow.

I talked with a fellow I’ll call Sam. I have these conversations a lot. A new client for him is worth about $ 25,000 in profit in the first 30 days. I suggested some ways he could get some more new clients that would cost him about $ 600. Pretty good return.

But, Sam wanted to know…needed to know…was desperate to know…was would what I suggested he do work? “Who else has done it?” “What returns did they get?” “How quickly did they see results?”

Nothing inherently wrong with the questions, but they underscore Sam’s complete inability to accept risk. Making prudent decisions is one thing…doing your due diligence can never be faulted…however, that’s different than not taking action unless the results are guaranteed.

And a lot of business owners and consultants never take action on implementing a marketing system because they’re afraid. “It might not work, so I’m better off doing nothing.”

The reality is that if that is your attitude you’re only going to travel down the well-trod road, and the rewards aren’t there.

In fact that’s precisely why most of your marketing doesn’t work. It’s been done before. Lots of times. So by the time you finally decide that it’s “safe” enough to do something, guess what? Your market isn’t interested in that approach/message anymore.

But you try anyway with the “proven” system. The one that everyone else has used. And guess what? You don’t get the response you wanted. Which (in your mind) reinforces the concept that marketing is too risky and doesn’t work. But you miss the real lesson.

It’s not that it doesn’t work. It’s that you waited too long. And decided just to repeat something that’s already had its day in the proverbial sun.

Rather than trying something new. Perhaps a marketing approach that works really well in another industry but hasn’t yet reached your niche.

But that requires COURAGE. Something that’s in short supply for a lot of business owners.

Here are three things that you can do right now starting today:

1. Sell more to your existing customers. It’s the fastest way to increase your sales! They already know who you are, where you are and the quality of your goods and services. So, set aside an hour to make 2 minute F.O.R.D. follow-up calls to your top 20 customers. Ask about their: Family? Organization? (company, church, school, etc) Recreation? (vacation plans, sports, etc.) and Dreams? Then ask: What can we do to help you? Listen to what your Customers are telling you! Take notes, they will tell you want you need to improve. Finally ask them for a referral, recommendation or testimonial. Statistics show that 40-50% of the people they refer will take action and contact you. Half (or 20-25% of referrals) will buy from you. Also start spending 25-33% of your Advertising budget on promotions/coupons for existing Customers.

2. Return to your Core Business. Cut your losses by eliminating under-performing projects and re-focus on your core business.

3. Look for new opportunities in counter-cyclical markets. What other “up” markets could you offer your core services in (e.g. Foreclosures, Healthcare, Green Industries)? Or are there any upscale or down scale markets where you could offer your services?

What are some examples of what Small Businesses have done to grow in down markets? I was recently interviewed by the Wall Street Journal to explain what three Businesses had done to “Re-tool their businesses to thrive in a Recessionary Economy”:

1. Fitness Company/Personal Trainer-switched from Private to Group Training to lower Customer cost.

2. Commercial Real Estate Property Manager- started offering their services to mortgage companies to rent out foreclosed homes.

3. Swimming pool business- moved up from economy market to luxury pool, waterfall and spa market. Here are three examples of what my Small Business clients have done:

1. New Home Cleaning business-set-up a new website and expanded the business into cleaning Used homes.

2. Automotive Repair shop- updated website, started Pay Per Click advertising, added Customer Appreciation events and Frequent Shopper programs-Results: traffic up 400%, more customers and sales.

3. Small Law firm- changed Internet Marketing strategy and website content increasing visitors by 300%.

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