The opinions expressed by entrepreneur contributors are their own.
With consumers tightening their budgets and talk of a recession, it may seem like now is the time to lower prices and increase efforts to bring in new customers and maximize existing customer revenue. This is the worst thing you can do.
A recent study published by CNBC and Morning Consult found that 92% of Americans are scaling back their spending, and retailers like Walmart, Target, Home Depot and Best Buy are altering strategies to compensate. I advise entrepreneurs to focus on attracting premium customers rather than lowering prices. I believe that no matter the economic situation, you can attract premium customers.
As a seven-figure female Latina founder, I immigrated to the United States in pursuit of the American dream. To date, I have worked with hundreds of fellow entrepreneurs using a unique formula that allows them to be the exception to the rule. Success is not easy, but I believe that by keeping things simple you can ease into success. Instead of doing more work, do even the most difficult work well. You will be successful in reducing.
How does this work? Why does it work? Let’s focus on a simple three-step process that I’m using with my clients right now to get extraordinary results.
1. Increase the quality of customers you attract
In the world of e-commerce marketing, we often hear that we need to speak to the customer’s pain points – to heighten that fear so people are motivated to purchase – but we advise against using this common method. Let’s give. If we’re constantly talking to that confused version of our customer, it takes us longer to grow the business. This means we have to cajole, explain and educate.
Instead, increase the quality of customers you are attracting. Avoid using fear-based marketing to sell. Out of our sample size of over 300 customers across different regions, just changing the language resulted in a 100% improvement in customer quality. The future of marketing is about speaking to the empowered version of your customer because today’s consumer is more sophisticated than ever. When you talk to that customer, you’re attracting customers who are resourceful and willing to bet on themselves and see their value. You will upgrade the type of customers you attract and they will be willing to invest more.
I recently had a client who went from earning $179,000 a year to over $1 million by changing the way he approached clients. It doesn’t take much time to achieve success.
Related: To Get a Premium Price Higher Than Your Customer Expects
2. Value your offer in a premium way
I know many consultants think they have to wait until they have more clients before raising their prices. Instead, I believe you can start premium and stay premium. The coaches I work with are already qualified to charge a premium, but feel they don’t have the experience to prove their worth.
These approaches put a limit on your earning potential. When you factor time into the earnings equation, you always make a loss. Instead of focusing on time, think about value.
Value the services you provide based on the value you bring to the table, especially the lifetime value it will provide to the customer. This changes the way you think about your customers and definitely indicates that it’s time to make a change in raising your rates and lowering them.
Now think about your service. Your customers will see results in a few months or years, but what about 10 years from now? Are they still benefiting from your services? This visual will fill you with the confidence you need to raise your prices.
3. Monetize Your Influence With a Magnetic Message
Your message is important. It defines who talks to you and becomes your customer. If you have 100,000 well-qualified followers, who are ideal followers for your website, and they visit your website, your Page, or your livestream right now, what will they see? A clear message or silly?
Those 100,000 ideal customers won’t respond to you if you don’t know the right words to communicate with them. You must have the right message – one that speaks to value, not a special offer or money-back guarantee.
You may be excellent at what you do, but that doesn’t mean you’ll attract epic customers, customers who won’t be affected by inflationary pressures and will still be willing and able to spend.
Two things attract customers: your energy and the words you use. Words are what trigger the brain to recognize how it can help them or make them better. The brain’s focus is on how to save calories and move forward, looking to solve problems and eliminate threats. The brain files you under a problem that you can help them solve.
You must have a clear message that conveys what value you bring to the table. You need to be able to communicate that value, not just that you’re available or that the services you offer are a great price. For example, here’s a script for non-ideal customers:
“You’ve searched for answers, but you’re still stuck. You wake up feeling the pressure to make money fast. Otherwise, you don’t know if your business will survive in the long run. Want someone who can give you the formula for success so you can guarantee your results. After all, you have invested in programs before and got no results. What’s to say things won’t be the same?”
Related: 8 Ways to Make Your Marketing Message Stand Out
Notice the difference when you use magnetic messaging to attract premium customers based on the value you provide:
“What you do is amazing. Your work changes people’s lives. You know you can probably figure things out without an instructor, but you want to shorten the timeline by having someone in your corner because you Value time more than money. You’ve invested in programs and have been able to get results, but you’re looking for a way to help double your income and attract more premium clients without working more hours. “What we need to do is get individual attention from people who are motivated, willing to invest and work.”
Consider how you can make your message more magnetic. Once you value what you’re offering and make it clear to potential customers what value you bring to them, they’re willing to spend more. If you have a low price on a highly valued service, it shows the customer that you do not value your product or service.
Instead, craft the right message, be confident in the value you provide, and focus your customer’s attention on those most likely to value you, not those looking for the least expensive offer. Are in.