What happens when people don’t buy? There have been a couple of times during my sales career where I’ve had a great station, a great package and people have been quite interested but they just haven’t signed on the dotted line.
On reflection on the packages that we’re selling, usually, there was a common denominator and that is that there isn’t enough urgency. If you’re finding that people aren’t signing on the dotted line even though they’re showing great interest, or you’re finding that the sales lead time is taking too long, then you should consider creating urgency. If there isn’t urgency to purchase your product they can put it off forever and never get round to it.
There are some tools you can use to create artificial urgency that will help you close more sales:
1.) Creating a deadline
There are two ways you can use a deadline to create urgency. The first is to have an end date for when the package expires – say for instance, at the end of this month this package will no longer be available. The second type of deadline is to offer an incentive with your sales package that expires at a particular time. The offer could be that anyone who signs up in the next fortnight will receive a double pass to Gold Class cinema, or in the case of signing 12 month packages you might be giving away an iPad or an Apple Watch or something similar, but the urgency is in the deadline of when that incentive expires. They might be able to buy that package all year round but just for this short period there is an incentive that is only available now. This will create urgency and help people to sign up.
2.) Limited availability
Another way that you can create urgency is by limiting the number of packages that you have available to say, 20 or something like that, and tell people signing up how many there are left to go. This will do two things: Firstly it will create social proof that other businesses are signing up; and secondly, it will help them to feel a sense of urgency that they might miss out if they don’t act now.
The third way of creating urgency is to limit the number of businesses in a particular category to one or two. Usually you limit it to one and call it exclusivity, which means if any other business in their category comes in they will no longer be able to purchase. Once again, this creates the fear of missing out. This has the added benefit of creating a market just for one particular type of business. They get to own the entire radio station for that particular industry, which is a great value proposition and also, it helps them to want to re-sign. They’ll hold on to their space and sign up again at the end of the contract because otherwise if they let the position go someone else might take over their spot and they might not be able to get back in.
In short, if you’re finding your sales cycle is taking too long or if people are just not getting to the point of making a commitment, then you should consider adding urgency to your packages or to your offers.
In the case of the Club Package that we’ve talked about previously in this series, there is urgency in that there are a limited number of packages and the people who adopt early get more spots than the people who come on late. So if they come onboard early, they can get up to 10 spots a day, which is five times what they pay for, whereas if they sign on late they might only get twice what they pay for.
However you do it, just make sure it’s clearly marked on the package so it’s understood what the urgency is. Often a little tag across the top left-hand corner of the package with the offer/package expiry date will suffice. This small addition can make a real difference to conversion.