You may have the greatest product or service in the world. You may have compelling sales copy. You may be clearly communicating your offer’s wonderful values and fantastic benefits. Your customer service may be unmatched…
Yet, all this hard work will be for nothing if you aren’t offering your products and services correctly!
Let me explain:
Let’s say that you’ve just got a new visitor to subscribe to your blog or email list. They’ve shown interest in your business and want to know more. If you hit them straight away with your core product, despite how fantastic it is, your message may fall on deaf ears!
This happens for a number of reasons…
1. Your visitor is new to your business and you haven’t proven yourself to them yet.
2. Your visitor has heard of your business, but is not yet ready to fully commit.
It’s likely that your new visitor hasn’t been “warmed up” to your brand and your business. They aren’t fully aware of how you operate and what you have to offer them long term. Maybe they’re new to your product or service as an entirely new industry altogether.
They simply need to spend time learning about how you can help solve their specific needs before they are able to take action.
Let’s break it down in other terms..
Think of selling your product like dating and relationships. You can’t simply propose on the first date! (Although I know it’s worked for some!)
Rather, a much better approach is to wine and dine them. You need to pay it forward and prove to your date your positive qualities and charm. Similarly, you’ll need to show what you have to offer that’s different from anyone else out there. Only once you’ve proven your value to them in their life can you move to the next step.
Let’s say you’ve done all the work to communicate your values and benefits to your visitors. They understand what your business is all about and are ready to commit to a purchase. Now it’s time to present them with your offer.
This step is where many online business owners get it all wrong!
Oftentimes we seen others present their offer to their audience, but no one makes the purchase.
Your Offer May Be These 2 Things
When this happens, we’ve identified a couple of reasons as to why this is the case.
- You may be offering too much all at once or..
- You may be pricing your offer too high
These two points are especially true if your offer is presented to a new visitor.
Let’s quickly consider each point..
1. You’re offering too much at one time
The problem with many offers that we see is too much is being offered at one time.
It may make sense to think that by over delivering value and even throw in the kitchen sink, a customer will simply have to buy it! They’d be stupid not to, right?
Yet, this can oftentimes have an opposite effect on new customers.
For example, if you’re offering a 10-week course or an entire product line to a new visitor, this can oftentimes seem overwhelming. They likely don’t even know what they want from you yet and are not even close to committing the next 2.5 months of their lives to your brand.
We can help solve this.. But, before we do, let’s consider the next problem we’ve seen..
2. You’re pricing too high
Another problem with many core product offers is that they’re priced too high. By pricing your offer too high, you risk scaring new visitors away.
That’s a Mercedes covered in diamonds by the way.. Any takers?
You may think that losing some customers is simply a chance you’re willing to take. You might say, “If they can’t afford my item, then they’re not my target customers anyway.” This is the wrong way to look at it.
Instead of disregarding these new visitors altogether, they may simply need a stepping stone toward your premium offer. They may need a little encouragement or baby steps toward the premium price point.
The question now becomes, “How do you get a person to move from being a new visitor to a customer who purchases your premium offer?”
We can accomplish this through a process we call “Product Fragmentation”
Through this process, you’ll be able to lead your visitors toward your premium offers through a set of baby steps. You’ll find that by moving your visitors “up the value ladder,” you’ll be able to close the sale on your higher priced and more detailed offers.
What is product fragmentation?
Very simply, product fragmentation is the process of breaking down a larger and more comprehensive product into smaller pieces to offer for sale individually.
By fragmenting a premium offer, we’re not removing the offer altogether. Rather, we’re simply taking a piece away and packaging it on its own at a lower price.
This inexpensive and simpler product creates a lower barrier of entry for a new customer. A new customer is much more likely to make a smaller purchase because there is less risk.
By offering the low cost product, you’re essentially turning a cold visitor into a warmed up customer. You’ve helped them complete a step of micro-commitment and transformed them into a buyer. By creating this small additional step, you’ve also primed your new customer toward the decision to purchase your larger products in the future.
Here’s an example..
You will often see an entire series of your favorite TV show split into seasons that are individually packaged and sold.
If you tried to sell a brand new fan of the TV show Friends the entire 10 season box set complete with all the DVD extras and even a signed poster of the cast for over $100.00, you’d bet the new fan would be overwhelmed and unlikely to shell out the cash.
However, if you offered a new fan the first season for $9.99, you’d find that they are far more likely to make that purchase because it’s less risky. In the event that they don’t care for he show, they’re only out $10 bucks, not $100+.
Imagine yourself as one of your customers. If you decided to try a new TV show or new dog food, for example, wouldn’t you simply want to test it out by watching the pilot episode or taking home a sample of food? That way, you’ll know if you are willing to commit to the entire series or the 50lb bag?
So what should you offer these new customers? Consider these two strategies:
- Offer the first part
- Offer the best part
1. Offer the first part
One approach is to offer the first piece of your larger product or service. You can offer the first chapter of your eBook for $5.00. You’ll find that Uber offers their first ride for free to a new customer. You can offer a free estimate on a kitchen remodel.
These are all baby steps toward a larger purchase. These offers allow your customers to take an action with very little risk in both time and money. And in creating these offers, your customers get to know you and your business more. This, in turn primes them toward the next purchase which can be a similar product or an upgraded product.
2. Offer the best part
We’ve seen this as a highly effective strategy as well. By offering your absolute best as its own product, you’ll be far more likely to capture a new visitor.
By putting your best foot forward, you’ll be better able to leave a lasting impression on your new visitor. They’ll get hooked and can say, “Eureka! I’ve finally found the pot of gold at the end of the rainbow!”
You’ll want to strategically select which fragment of your larger product to offer based on that specific part’s performance. There are a number of ways to identify this from surveys to online tools that can help show you the numbers. Take a look at these options and you can strategically select which piece to fragment.
Here’s an example..
Think of the movie trailers that come out nowadays. If it’s an action movie, you bet the 60 second trailer has at least 3 clips of someone running, 2 shootout clips, 1 clip of a car chase, 2 major explosions, and at least one good, “Get the hell outta there!” End scene.
The newest comedies will stuff their trailer with all the best jokes.
Even the movie posters and DVD covers often have the biggest named actors and actresses on the cover. Even if they’re only in one scene!
Here’s Johnny Depp on the cover of an Into the Woods movie poster even though he was only in one scene near the beginning.
As you can see, offering your best content is a proven model of success. This poster was made by Disney and you can bet they’ve crunched the numbers on this one and made a very high level strategic decision in doing so.
The important takeaway is to really follow through on the quality you’ve already offered. You’ll want to be sure to offer a similar quality in your core offer as in your best foot forward fragmented offer so as not to disappoint!
Here are some more examples of fragmented product offers:
- An individual season of a TV series
- Separate tutorials/lessons of a larger online course
- An individual chapter of an eBook
- A single offered individually from a new music album
So, you’ve got an idea for a fragmented product offer figured out. Now, before your implement your offer, consider these 2 beneficial outcomes due to product fragmentation:
- Keeping it fresh
1. Don’t leave me hangin’!
An important thing to remember about your fragmented offer is that it should be incomplete.
These types of offers should provide tons of value, yet should still leave your customer wanting something more. They should be incomplete so that there is an inherent need for your customer to see what’s next.
In order to do this effectively, you should create a transition at the end that suggests next steps. At the end of chapter 1, describe the need for the next chapter and how it will build upon what you’ve just learned and accomplished.
For example, be sure to include a link in your eBook for the next section offered or for the book for sale as a whole. When listing your estimate for a new kitchen remodel, be sure to describe what’s to be expected to happen next.
This will enable your new customer to make their next purchase and not leave them lost in the dark. The goal here is to make that transition as smooth and simple as possible toward your next offer and to clearly provide them a way to do so.
Keep it fresh
Yet another benefit of fragmenting your core product is that it can be repeated. You are able to keep your marketing fresh by continually offering new products. Since you’ve already done the work to build your core product, fragmenting a piece out requires very little effort and boom; you have a brand new product to offer.
You can then send this “new” offer to your email list and other marketing channels while still keeping it fresh. Your viewers won’t be burnt out because you won’t be sending them the same offer over and over again.
So what’s next?
All this talk about product fragmentation makes me think of a little process we cover on our blog, especially step #5.., We describe an absolute vital strategy for success online through our WTC Funnel System. This system focuses mainly on move from turning Traffic into Customers: the T -> C.
This is a huge step for so many website owners out there, but happens to be one of the most difficult steps for many.
Like we discussed in the first paragraph of this post, all our hard work won’t matter unless we can urge our visitors to take action and become real paying customers. That’s what this system is all about.
I think you’re going to love it!