Shocking Discoveries continued from page 5 >>>
experience to race with other drivers. Each step is another paid option that increases the lifetime value (and satisfaction) of every Ferrari buyer who comes into the brand. It’s also how Ferrari is making one sale that equals four sales! It’s why they are one of the richest car brands in the world without having to sell millions of cars. They get a lot of money from a few people by staging more frequent sales. Smart.
A classic error I see time and time again in many businesses is the driving of leads into short promotions, like a feeder program, yet after initial purchase, there is no long-tail on the backside where the customer is sold something that is the next logical and appealing step. And then the next. And so forth. Which means there is no upsell, no upgrade options, and no ascension ladder directly connected to initial promotion. It’s wasted money, wasted opportunity. Look at this article (reprinted with highlights) about what Ferrari is doing to create more than a car sale and how they’re doing it. Considering how much a Ferrari costs, they decided that one sale of a Ferrari was not enough for the brand. So, what did they do?
What does this mean for your business?
If you know the data that 5–20 percent will say yes to the upgrade or upsell or agree to keep going along the “next path” or ascend every time, in every situation, then you simply have to have a process to ask and offer!
As the business owner, you have one responsibility above all others: Focus on profit.
Without profit, you cannot pay yourself, let alone others, and you cannot grow your vision to serve more people. Simple as that.
Don’t be lured into the thinking that “we simply serve.” Yes, of course we do, but without a constant vigilance for profit and a constant development for a deeper business model, your business dries up, and you serve no one. I’ve also witnessed many businesses that look healthy on the outside, but the owners are barely paying themselves. If you want results, you must manage for and by results, and not by anything else. If you want results, you must manage for and by creating ascension for your best customers so they can have the experience they truly want — as long as you have the courage to lay it in front of them and ask for the sale. Too many business owners are too often trying to add more (advertising, media, customers, salespeople) rather than focusing on doing more with the assets they already have. In most businesses, there is as much harvest being uncollected as there is being collected. Why add more water to a leaking bucket?
A.) Not allow the sale right out of the gate. First, you must lease a pre-owned and find the “right one” for you. (This is tantamount to a promotional offer for Ferrari. )
B.) Join the Tailor Made program, which allows customization of your car. (This is an upgrade option for Ferarri.)
C.) Ask what the real motivation for their customer is — learning how to drive a Ferrari on a race track. So they created an upsell where a Ferrari owner can experience Ferrari driving school. (This is the next logical step in their sales process.)
D.) Ask what the next appealing step is. Why, of course they want to compete in a Ferrari racetrack with other drivers. So they offer the
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Published by The Newsletter Pro • www.NewsletterPro.com
Vito Lafata • www.vitolafata.com
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