INDEX OF ALL THE REPORTS

CHAPTER 10

THE NATURE OF THE CUSTOMER

Understanding your customer can help you make more money.

This chapter will help you to understand what people have in

common, and also what makes us unique individuals. From the

basic urges of sex, gluttony and avarice, to the man-made

desires for money, better ad response, and a quicker way to

open an envelope, the mail order market is driven by your

customers' minds.

For any given market, try to understand what that market

buys and why. Answer the "Why buy?" question in your head

for each of these top mail order sellers.

- get-rich quick plans

- advertising

- books and reports about making money

- mailing lists

- subscriptions

- printing

- postage stamps

- condoms

Postage stamps and printing are easy enough - they're

absolute necessities. And since people have been convinced

that advertising (paid advertising), mailing lists and print

& mail are also absolute necessities, they sell as if they

were necessary (sometimes they are). Condoms? That's easy -

you don't have to look a cashier in the face when you buy

them by mail, which saves some people from embarrassment.

Get-rich-quick schemes are bought because people are blinded

to logic as a result of our society's money addiction,

(which is the sole reason for the inner circle's existence).

As you become acquainted with the mail order industry,

remember to always ask yourself why consumers buy the way

they do. It will make your success easier and faster.

PROVE THAT YOU'RE A REAL LIVE PERSON

Unless you meet them in person or at least talk to them on

the phone, all of your associates, customers and prospects

will think of you as just an idea, not a real person. When

you can convince the prospect that you are a real person,

you increase the chances of making a sale. Become real to

your prospects and customers by always listing phone numbers

with your address and making note of the fact that they are

encouraged to call any time, for any reason. If you have

your own publication, put your photograph in it somewhere.

Even a publisher's notes column in your own adsheet or

tabloid can do the trick by adding a personal touch.

If you have opinions, state them. Try to come across as

someone with a personality and well-formed opinions. You

can't bond with your customers if you come across as just

one more salesperson who's too afraid to say anything

controversial or personal.

ELIMINATE TIME AND SPACE BETWEEN

YOU AND YOUR CUSTOMER

Have you ever noticed how you can be utterly captivated by a

salesletter but save your money and not respond simply by

putting it down and forgetting about it? Well think about it

because this is exactly what your customers are doing! Phone

calls put more pressure on people. Before you call, your

customer is aware of you only as pieces of paper, but after

you call you are a real live person, with at least a voice

if not a face. A customer can throw your salesletter down

but when you are talking to them they are forced to respond,

and response is what direct marketing is all about (in fact

some call it direct response marketing!). Phone calls are

expensive, so at first limit them to calling to confirm

people's orders as you receive them and telemarketing only

to past customers. Building up your reality in their minds

will make future purchases more likely.

PUT TIME AND SPACE BETWEEN YOUR

CUSTOMER AND HIS PAYMENT

With cash and money order payments, your customer acutely

feels the loss of money as he pays you. A check is a little

less painful - the money is lost later on - right now all the

customer has to do is sign a little bit of paper; in a few

days a bank somewhere out of sight and mind will

electronically deduct the necessary amount from the customer's

bank account. Credit card payments are even better since

payment is delayed by a month or more, and that's why when you

accept credit cards you usually increase business by 50% or

more. It's also important to remember that with a credit

card, your customer can spend money he doesn't even have. The

customer doesn't feel the loss of money as acutely, since when

it comes time to pay off the credit card each month, his

purchase from you is mixed in with car payments, clothes,

dining out, and so on.

The more you allow your customer to put time and space

between himself and his payment to you, the more often, and

the higher, those payments will be. Therefore, it is

important to take very seriously the advice in chapter 13

regarding payment options.

WAKE UP THE CUSTOMER

Think of how you buy. Do you respond to ads the first time

you see them? Probably not. So I hope you don't expect

anyone to respond to your ads the first time they see them.

When a company's advertising is very frequent and you've

seen it for several months, are you more likely to respond

to it? Probably.

Think of your prospect as being comatose. It's all too

common for a marketer to tap him lightly on the shoulder

then quickly dance away, saying "Well, I guess he won't be

buying anything from me". The smart marketer approaches the

prospect with ringing cymbals and blaring horns, sits down

and makes himself at home. He is not afraid to tell anyone

and everyone that they have a world of trouble and that he

has the solution to it. He'll pour some coffee over the

comatose prospect's head, then some down his throat, and

communicate the fact that he is a problem solver for as many

months as it takes for the prospect to fully awaken. No new

advice for you here; this is just a reminder of the over and

over and over and over marketing principle discussed in

chapter 6.

FOUR THINGS YOU NEED TO KNOW

ABOUT CUSTOMER PSYCHOLOGY

What follows is a discussion of some human psychological

characteristics which relate to marketing. Before launching

into this, I must tell you why I'm telling you all this (ie.

"what is this doing in a mail order how-to book?"). Three

reasons:

1) sometimes your customer or prospect will act (write,

talk) in such an extreme fashion that he immediately exposes

his personality characteristics. You may be able to

understand him or her better, and be able to respond

appropriately, by reading the information below. This is

never easy, and you may only find it worthwhile to evaluate

and respond to individual personalities when you're engaging

in very important correspondence that can mean a lot of

money in the long run.

2) you may, from now on, wish to create your sales materials

to appeal to a wider cross-section of personalities, to

attract and persuade as many people as possible.

3) to clarify and confirm ideas put forth elsewhere in this

book, and further urge you to immediately make the necessary

changes in your marketing plans.

I - RAPPORT

In your business career, there will be some people that grow

to like you after first contact, for one of 2 reasons:

- you are like them (and therefore they are like you), or

- they want to be like you.

In other words, they experience "rapport" (a comfortableness

and willingness to communicate; a feeling of similarity)

based either on reality (being like you) or fantasy

(imagining being like you). One way to "be like" somebody

else (and therefore to create rapport) is to mimic them.

When in the other's presence, this means matching the tone

of their voice, key words and expressions, amount of eye

contact, etc. If you mirror the other accurately enough, you

will actually create a close approximation of their mental

experiences. What better way to understand what the customer

needs and therefore be able to make an appropriate sale than

to experience what he's experiencing? Sound mystical or

unbelievable? It's nothing of the kind! Let me explain. All

human beings are basically the same. Everyone's brain is

built the same way. What creates different belief systems,

different personalities, different levels of success, is the

way that brain has been programmed, by genetic makeup, by

ourselves and by our lifetime experiences. A good analogy is

that two different musical tapes can have completely

different types of music on them, but appear to be exactly

alike on the outside.

To illustrate rapport building: Suppose you're rich and

confident, and you're talking to a poor embarrased beginner

who can't seem to sell anything. You want to sell him your

book on marketing so that he can get out of his rut, but

first you're going to want to get inside his head. So you

mimic his actions and voice, words and phrases, etc. (Don't

worry about people noticing that you're doing this on

purpose. Believe me, they never notice). In mimicking him,

you notice yourself feeling a little embarrassed yourself.

You're remembering what it was like to be in his position,

because COPYING THE BEHAVIOUR PRODUCED BY SOMEONE ELSE'S

STATE OF MIND, WILL ALLOW YOU TO EXPERIENCE THEIR STATE OF

MIND.

Now you have established rapport with the potential

customer. In mimicking his behaviour, you notice yourself

feeling the way he does. In turn, the prospect is noticing

that you're not so different from him after all. And he buys

your book from you, or your service or widget. Or, if he

cannot afford what you sell now, he will certainly come to

you in future.

II - GET A COMMITMENT FROM YOUR CUSTOMER

Many successful world figures knew something crucial about

the masses. Get a big group of people to do something,

anything, and they will believe in you. Billy Graham asks

audience members to walk down the aisles towards him - walk

now, believe later. But walk NOW. Hitler convinced millions

of his countrymen to wear uniforms, parade around in the

freezing cold, fight a war, and commit countless atrocities.

As the Germans went on year after year behaving like this,

the Nazi belief system grew stronger and stronger.

Graham and Hitler are opposite in personality and intention,

but they were both held in awe by millions for the same

reason. But what did they both know about people that

resulted in their mass popularity? It is simply this: get a

commitment from people, and you will dramatically boost

their respect for you.

The common belief about attitudes and behaviour is that a

person's attitude determines their behaviour. What is not so

commonly known is that you can change a person's attitude by

getting a behaviour out of them (that is, by getting them to

do some specific thing). Once you've elicited the action you

want out of them, their attitude will automatically adjust

to justify their actions. We all know that happiness will

make you smile. But did you know that forcing yourself to

smile will actually make you happy? To my mind this is one

of the most significant discoveries ever made in psychology.

A teenager who doesn't want to drink or smoke may start

anyway because her peers pressured her to act that way. But

once the drinking or smoking begins, she will trick herself

into believing that she wanted to do it, and that drinking

and smoking are enjoyable. This is how behaviour can affect

attitudes. If attitudes always determined behaviour, she

wouldn't have started drinking or smoking in the first

place.

What behaviour are you going to get from your target group

of potential customers, which will cause them to form a

positive opinion of you? It is just this: get them to

respond to your advertising, your press releases, and your

articles. Let them come to you. Having produced this action,

your prospects will form or strengthen the attitude that you

are trustworthy and sell good stuff. They will do this

because the only alternative is to believe that they have

just stupidly wasted time sending an inquiry or order to an

untrustworthy dealer selling shoddy merchandise.

Nobody but nobody tells themself that they have just done

something stupid (unless it's undeniably true). By putting

him or her self on your list, the prospect/customer is

probably forcing him or her self to believe that you are

well worth doing business with. That is the simple reason

why it makes more sense to advertise than to direct market

to uninterested targets. A mailing list is more powerful if

it consists of people who have come to you - it puts you in

a position of greater control, so that you don't look like a

dog begging for a bone.

III - CLASSICAL CONDITIONING - HOW

ADVERTISING WORKS

A good TV advertisement requires something which creates a

strong and automatic positive emotional state. Some

examples:

- a delusional fantasy (the Marlboro man riding off into the

sunset on his horse),

- a popular musician,

- half naked women

The product being sold is then closely associated with the

resulting emotion - lust, high adventure, greed, aesthetic

pleasure, etc. Just like Pavlov's dogs over 70 years ago,

people are then conditioned to react to the product in a

favourable manner. People will react positively to thoughts

of the product, because they have learned to associate it

with the thrill of fantasy, or music, or sex. It might be a

little hard to convince an extraterrestrial that you could

really sell fabric softener or beer this way, but you see it

for yourself every day. Believe it. It works. As further

proof that the average person leads a rich fantasy life,

consider the fact that millions of teenage girls nearly

commit suicide when their favourite rock stars get married.

Think about it.

The only similarity between mail order and television is the

visual aspect. Television includes motion and sound, as

well. This makes it a lot easier for a television commercial

to create an involuntary emotional response - to hit the

prospect where he lives. Some are becoming downright

pornographic. Some beer commercials are beneath contempt.

But never mind them; what can the direct marketer do to

arouse emotion?

It takes a lot of practice to be able to write sales

materials that actually arouse a prospect's emotions. Yet

that is exactly what marketing experts tell us to do with

our mail order sales pieces - create emotional response. And

it is what you must do! This is why in chapters 6 and 7 I

tell you to list benefits, not features or pointless

chatter, in your sales material. By telling a person that

what you are offering is not really a money game, book,

mailing list, 1-800#, insurance policy or fishing lure, but

a way to have a better life, you are cutting straight to his

or her basic instinctual, illogical emotional side. That

always means more sales.

IV - UNDERSTAND YOUR CUSTOMER'S PERSONALITY

A) THE PLEASURE SEEKERS VERSUS THE PAIN AVOIDERS

There are hundreds of ways to divide up human behaviours.

Here is just one of them: behaviours that GAIN PLEASURE and

behaviours that AVOID PAIN. Ask a person why they want

money, and their response will either be a "moving away"

response (avoiding pain) or a "striving towards" response

(gaining pleasure). Note the world of difference between "I

want financial independence because I hate working for other

people" and "I want money because then I'll be able to

afford a Cadillac".

Some marketing experts advise to emphasize to people what

they have to lose by not buying your product. Emphasize the

negatives in their life, and how the negatives will stay

until they solve their problem (by purchasing something from

you, of course).

There's also the gaining pleasure approach (an approach

which is, to my mind, grossly overemphasized), where the

marketer emphasizes pie-in-the-sky fantasies of getting

women, land, cars, and making everyone jealous.

When you aim your advertising at one group of people (either

pain avoiders or pleasure seekers), you'll generally miss

the other group altogether. My advice here is to mix the two

in your advertising. (Another perfectly acceptable

alternative is to "specialize" in either selling to the pain

avoiders or the pleasure seekers - but not both). Don't just

tell a person that you can get them out of debt - tell them

that you'll also help them raise $200,000 in 1 day. This is

a good combination of pain avoidance and pleasure seeking.

Emphasize all the pains to be avoided with your product or

service, then list all the pleasures to be gained.

B) MATCHER VERSUS MISMATCHER PERSONALITIES

The best way to tell a matcher from a mismatcher is to ask

someone: "Are this nickel and this penny alike?". The

matcher will say yes - they're both small round metallic

currency. The mismatcher will say no - they're different

sized objects made of different materials and worth

different amounts. We've all met an extreme mismatcher or

two in our lifetimes. The bitter, grouchy person who

responds to such comments as "Have a nice day" and "This

glass is half full" by immediately replying "I don't have to

have a nice day" and "No it isn't, it's half empty". Such

people are thankfully few and far between but you will

encounter them during your career as a businessperson. The

simple rule of thumb here is to make sure the person takes

as little of your time as possible, since he'll be too busy

criticizing you to ever buy anything from you.

To teach a mismatcher that your product is worthwhile, tell

him about its superiority based on its differences from less

satisfactory products or services. To teach a matcher that

your product is worthwhile, tell him about its similarities

to other existing products.

Most people, when it comes to matcher-mismatcher

orientation, are what's called "sameness with exception"

people. These people need to be told that your product has

basically the same benefits as others of its kind, but is

better because of some additional characteristic.

C) INTERNAL VERSUS EXTERNAL FRAME OF REFERENCE

A person with an internal frame of reference (what I like to

call an "instinctual" frame of reference) will know he's

succeeded by how he feels about what he is doing. It is an

automatic response which tells him "I've accomplished

something good for myself". For this type of person, the

best selling approach is "I don't know what's right for you,

but I'm sure you do, so I'll ask you just one question: "Is

there anything specific about mailorder you need to know?".

If the individual has an internal frame of reference he will

immediately have questions for you; if not, there will be an

awkward hesitation, which you should break by saying "If you

don't have any specific questions yet, I'll just give you a

basic idea of what I can do for you ...".

A person with an external frame of reference is the sort of

person who is destined to work in the middle of a busy

office for the rest of his or her life. They're somewhat

like mirrors - they are a reflection of other people's ideas

about them, and don't know they've done something right

until somebody tells them. Note the dramatic difference

there from the internally-referenced person, who forms his

own opinion about himself.

With the externally-referenced person, you just tell them

what they want, and they'll want it. Tell them enough times,

and they'll buy it from you.

D) MORE MODALITIES = MORE SALES

The word "modalities" as I use it here means the different

communication channels you can use to try to sell to a

prospect. There are five communication modalities for humans

- tactile (touch), smell, taste, hearing and sight.

In selling by mail, contact is often limited to sight - the

material your prospects and customers receive in the mail

from you. This is unfortunate, because some prospects will

respond more readily to sound or some other modality. Some

people naturally prefer to engage in visual communications

such as reading your salesletter. Others may be especially

susceptible to experiences of smell, taste or touch - which

makes it doubtful that you'll be able to target their

vulnerabilities with a direct mailing piece!

The preferred line of communication will also be the KEY YOU

WILL SOMETIMES USE TO BOOST SALES. A person's preferred

communication style tells you what it takes to convince them

- to affect their perception of your product or service, by

appealing directly to their unique personality. A visual

person needs to be convinced visually. An auditory person is

better convinced with a telephone call.

If someone calls you, don't brush them off and tell them

you'll write them a letter of response. Instead, stay on the

phone with them, which is what they want - and which is what

will allow you to get what you want from them - a sale.

When someone uses the words "see", "looks", "picture" etc.

in written correspondence to you, use those same words right

back. Re-read the rapport section above if necessary to

understand why.

Mail order is primarily a visual medium. But you can

introduce the auditory component by talking to people on the

phone. When I started mail order I often had trouble taking

it seriously. Then a well-established dealer called me on

the phone from Missouri. From that day forward, mail order

became more real to me, and I make excuses to phone people,

especially if they are quite far away, to remind myself that

I am networking with real people all across North America,

not just with names on paper. It turned out that this simple

fact of hearing human voices was necessary to make me feel

that my participation in the mail order industry was

complete!

So put a phone number on your sales material, to allow

reluctant readers to switch to the auditory channel of

communicating with you. And give an address on your

recorded phone messages and audiotapes, to allow reluctant

listeners to switch to the visual channel of communicating

with you (by mail). If you're selling subscriptions to

chocolate-of-the-month club, sending chocolate-scented

salesletters would make a world of difference. In selling

information products, you can cover the range of both visual

and auditory modalities by producing both a paper and ink

version, and a version on audiocassette. Consider the fact

that people will pay $100 for audiotapes instead of buying

the same material in a book for $20. People will pay

handsomely to be able to absorb information the way that's

easiest for them. A valuable lesson for people selling

information by mail.

INDEX OF ALL THE REPORTS