Dan Kennedy and Affluent Marketing

In Dan's latest newsletter, NO B.S. Marketing to the Affluent, he outlines the problems of someone selling to the super rich. This person sells a product the rich don't want anyone to know they own.What used to be a symbol that said 'you've made it', now says 'You're living a life of excess'.

He notes the trend in Hermes stores of customers who want their purchases put in unmarked bags. They used to get one request per month for the unmarked shopping bag, and now get 2 requests per day.

It's the climate of fear that has enveloped the rich. They're being demonized and punished for their accomplishments.

The good news is that high net worth buyers are still spending. As a marketer, you will simply have to dig deeper to find these clients....and appeal to them with a message that says, "You have earned this and don't let anybody tell you otherwise".

Always good advice from Dan.

Buying Mindset of Millionaires

This recession has been nothing like past recessions. One big reason why is the the amount of the financial sector that's been effected.

Think of all the high net worth people employed by Lehman, Merrill, JP Morgan, Goldman Sachs, etc.How many are out of work? A lot. And the rest are having government regulators look at their pay.

These wealthy consumers still have money, but they have to be shown a combination of value, price and quality before they'll make a purchase. I read recently that these consumers still want the quality they're accustomed to (think Ritz Carlton), but they want it at a lower price.

Quality must be combined with an effective value proposition to make these buyers feel they're getting a good deal.

They don't want to sacrifice the luxury to which they've become accustomed, but want to feel they got a price break.

Something to keep in mind as you market to the rich.

What's Happening to the Super Rich?

This is an interesting article from the New York Times. How the guy who founded McAfee is almost broke. Well, still having 4 million dollars is hardly broke, but when you had 100 million, being left with 4 is quite a come down.

http://www.nytimes.com/2009/08/21/business/economy/21inequality.html

Internet Marketing to the Affluent

I was on an interesting webinar last week sponsored by Google. The topic was how the affluent use the internet. As many of you know, I've posted on this and am developing a program to help businesses market online to the affluent buyer.

The most interesting statistic from their survey was that millionaire earners are the most prolific shoppers on the internet.

WHY?

Because they have money to spend but very little time. This is a point I make repeatedly with my clients trying to market to the affluent. We know they lead very busy lives and have very little personal time. So, it makes sense that their first stop in any purchase is the internet.

If they don't like what they see of your product or service, then they'll simply move on and eliminate you from consideration.

What were some other salient points from the webinar?

• The affluent believe that a company who is not online has cheapened their brand

• They get annoyed if they can't purchase something online and have to call a store to make a purchase

• Brand awareness isn't enough...you must have data to satisfy the need for due diligence

• TESTIMONIALS ARE KING!!! Those of you who have spoken with me know how strongly I advocate 'peer recommendations' or testimonials.

Google also found that more companies are trying to use the internet because of cost-cutting.

Are you reaching the affluent using the internet?
If not, you should be.
If you are...are you seeing good results?

A little food for thought.



Susan

5 Essential Tips for Networking with the Affluent Buyer

5 Essential Tips for Effective
Networking with the Affluent Buyer

The moment has arrived for you. You’re in a crowd of heavy hitters. You can feel the energy in the room. This could be the tipping point for your business. The problem you have is that you aren’t sure how to approach those who are in the room. After all, nobody here knows who you are, so they’re certainly not going to make you feel welcome and introduce you to those in their group.

I’ve been in many situations similar to the one you may be in. These 5 tips will help you have a successful experience and have some great conversations.

The first thing you should do is be prepared to mingle with people and never talk about what you’re selling. You will quickly become of the ‘pariah of the party’ if you’re perceived as attending the event in order to solicit business. Leave the sales pitch at home. It’s not the time or the place. I attended many company-sponsored events where prospects had been invited. I always made it clear that there would be no sale pitch. If they had specific questions, I encouraged them to speak with those in attendance who were already clients. If they wanted to set up a meeting after the event, I was more than happy to arrange time. If you try to work a room like this with your sales pitch, you might as well go home. Word will quickly spread and no one will talk to you.

Don’t start a conversation saying, ‘What do you do’? It’s tacky. Ask instead about their interest in the charity. A great way to approach is by saying, "Is this your first time attending ________"? If it’s not, ask what their level of involvement is with the group. "Are you a board member? Or, They (the charity) seem to be doing a lot of great work in the community. Are you involved in any of those projects"? If they have a personal involvement in the charity, they’ll be very excited to talk to you about it. Eventually, the conversation will turn to you. Expect them to ask why you’re there, and have a good answer ready. Again, you’re not there to sell anything. You might be volunteering at the event. This is a great way to be in the room without having to pay a dime.

My next suggestion would be to limit your conversations and keep them brief. I was at a breakfast where one gentleman kept talking to a colleague and myself for over an hour. He was talking about watches. There was no good opportunity to escape without being rude. I missed talking to several people I wanted to speak with because this person was monopolizing my time with a discussion on watches.


Have a ‘ready made’ excuse to use in situations like this. For example, "I promised Mr. Smith I’d go over a question he has over breakfast. This has been fascinating, but I really need to spend a few minutes with him before everyone heads out to golf".
Or, if you know someone else in the room who shares an interest in watches, point them out and make the introduction. They can discuss watches, and you can move on to what you need to be doing: networking.

Fourth, as you’re talking to each person in the room, be thinking to yourself, "Is there a way I can help this person"? It’s the law of reciprocation. If you help someone, they’re more likely to do something for you in return. Could be a sale. Could be a referral. There are many ways you can help. You know your business and you know the type of contacts you’re meeting. There may only be one person in the room who fits this profile. It doesn’t matter. One great contact amongst the affluent will lead to many new contacts. After I had spent several years in my sales territory, over 50% of my business came from referrals. And this came from a core group of 8-10 individuals. Don’t worry about quantity, worry about quality. Focus on something you have, or know, that could benefit that person. It could be an introduction to someone else you know.

Last, but definitely not least, make sure you follow up with everyone you said you would call. If they asked for a brochure, send it the very next day. If they asked you to call their Administrative Assistant, do it the next day. If you’ve made a favorable impression, and follow it up with sub par responsiveness, then you’ve wasted your time. You’re being judged early, and often, by this affluent individual, and if you don’t respond in an appropriate way, they’ll be lost to you. Creating a favorable impression is useless, if your follow up is poor. ‘Service’ is exceptionally important to this group, and if you give the impression of poor service, you’ll have a tough time selling them anything.

In summary, getting an opportunity to network with the affluent can take a lot of time, effort and money. Don’t blow it by being an annoying sales person. Find ways to engage those present in conversation without trying to get a sales pitch worked into the conversation. Stay focussed on ways you can be of assistance to those you meet and talk to. Don’t be concerned if you’re not making headway in your first few conversations. You only need one gem to come out of this, not one hundred.





For more information on successfully selling to the affluent, contact me at susan@susanadamshome.com