Are you a car chasing dog?

Entry: December 27, 2017

Sitting in a coffeeshop, sipping on a green tea, I was writing about sales conversions when someone  interrupted my thoughts.

Excuse me, do you remember me?
Not sure, where do I know you from?

From a marketing class you did in June. Can I ask you a question?
Sure, what's up?

I'm having a hard time converting clients into my 12 session packages.
Refresh my memory on your product.

It's a service based product that I charge $85/hour for consultation. I'm trying to get those early purchasers to convert onto an annual package.

Have you converted anyone yet?
No

Did your client pay a fee for the first session.
Yes.

Good, that means you got them to open their wallet. That is one of the hardest steps in the sales cycle.
So why can't I get them to buy future sessions. Dentists get their customers to book right away after their initial session.

Be careful of your thoughts
What?

Dentists sell preventative maintenance contracts. A patient calls for one thing, maybe a sore tooth. The dentist pulls the tooth and explains why the patient may want to buy into their maintenance contract to not get more sore teeth. It's really fear based marketing. Many people walk into a dentist office to get the problem fixed never to come back until the next problem arises.

But the dentist really wants the customer to come back every six months right?
Of course. That's as close to guaranteed sales as anyone can get.

So how do I make my business more like a preventative maintenance contract?
It starts with your approach.

How much money are you spending on marketing?
None, I do the free stuff like Facebook, Facebook Live and Instagram.

What are your results?
I got three clients from it.

And once those three clients experienced your service, what happened next?
I offered them my 12 session package at a discount, but no one took it.

Based on what you told me, that's not what dentists do.
Yes they do. You said it yourself, they get you into the preventative maintenance contract.

No. Dentists get you to agree to another session. - One at a time. Slowly but surely.
Yeah, but once you're in, they've got you.

Not necessarily. Let me explain in a different way. Are you married or in a serious relationship?
Yes, I've been dating the same girl for 2 years.

How did you meet?
On Tinder.

Ok, so when you met your girlfriend on Tinder, did you ask her to sign up for a 12 month relationship package?
No, that would've been weird.

Why?
For two reasons, I don't know if I like her yet. And even if I did,  I wouldn't want to scare her away by being too....

Aggressive?
Oh my!

You're trying to marry your customers on the first date. Stop that right now.
So you're saying, my main goal after the first date is to get a second date???

Use your first session as a "getting to know you" opportunity. Just like in dating, if you don't think you can help, or if you don't want to help,  don't offer a second session.

But I'm leaving an opportunity off the table. Isn't that bad sales?
Not really. If you're not going to be able to help them because of their poor attitude, they're going to be more harm than good through negative referrals. They will bring you down and your ability to help someone more worthy of your talents.

But money is money. And if they've got it, shouldn't I want it?
Business isn't linear that way. If you think like that, you'll be chasing cars your whole life not understanding why no one is stopping for you.

You've lost me again.
Who chases cars?

Uh, dogs?
Exactly, and if you chase cars, then you're just another dog. Imagine you own a retail store on one of the busiest streets in your city. There are five equally competent competitors selling relatively the same thing within a mile of your store. To convince people you are the best choice, you've invested in the biggest, brightest sign. People notice you and inevitably, they stop in to find out your product is below their expectations and your service is worse. Will they be back?

No, but my product won't suck and my service will be the best.
Says all of your competitors.

But it will.
You don't get to decide that. The person walking through the door makes those decisions for themselves.

What does this have to do with chasing cars?
The amount of cars going by your store doesn't diminish. However, what happens is that the traffic inside your store does. Over time, those cars don't stop anymore. And all of your marketing efforts in your signage and your high priced rent is useless.

But someone will like what I offer, right?
Yes, but your adrenaline addiction for "traffic" and "opened wallets" will tantalize you with destructive behaviours like price discounting.

You've lost me.
If you chase money, it will always elude you.

So what do I have to do differently?
That's a conversation for another time. I'm late for my lunch rush. Here's my card, call me tomorrow to set up our next meeting. My hourly rate is $150.

Do you offer a discount?
Nope, and you should've picked up from our conversation that is the wrong question.

But I'm new at this entrepreneurship stuff and I don't have any money.
I get it. Would it make you feel better if I give you my consulting for free?

Yep.
But it won't help either of us because you won't take me serious.

Of course I will, I think you have a lot to offer me.
Let's step back for a minute. Think about everything I've already shared with you.

Chasing cars, discounting and relationships, I get it...
Well if I was chasing your car, I jump into the free advice, hoping that you'd like me enough to get into a relationship with me. Then when you were making money, you'd start paying me.

Exactly. I'll take care of you if you take care of me.
Wrong. You take care of me, because that's what you do. The customer relationship is based on you taking care of the customer.

But if I paid you, I'm your customer. Not the other way around.
That's what I mean by business not being linear. Customers are suppliers, consultants, street sweepers, people buying your product, people seeing your product. Any interaction with your brand creates a potential customer. Your role in your business is to create and keep as many positive customers as you can. Although you would be paying me, I'm still one of your customers. I help your business succeed. And you'd be my customer.

So will you help me?
I'm not chasing cars. I need a few more dates to figure that out. But the next date is not on my dime. If you're not willing to pay my hourly fee in advance to our next meeting, then I can refer you to someone else.

I will call you tomorrow.
Ok. If you don't, can you do me a favour?

Sure, what?
Throw out my card.

I've never met anyone like you. Are you serious?
If you can't keep a simple promise like calling me, throwing out my card releases me from having to tell you I can't work with you.