MODULE #5

5 Reasons Why Your Customers Are Buying From Your Competitors (And How To Win Them Back)


Here's an issue that every business owner can relate to: customers who choose to do business with your competitors (rather than you).

It feels like someone is taking money out of your pocket when this happens, especially if you know you have the superior product that will genuinely help the customer.

That's why in this module we'll look at the "N" of The S.P.E.N.D Strategy, which refers to the Negatives that affect your sales.

There are a variety of factors that influence whether your customers buy from you or someone else. We've talked about some of these factors elsewhere in this course (such as building relationships with prospects so that they know, like and trust you).

Now we'll take a look at five other factors that influence the buying decision, and how to make sure your customers buy from you…

Factor #1: Wrong Pricing

One big factor that's going to influence sales is your pricing. Now, a lot of business owners respond to this by lowering their price.

However, if you do that, then you're going to forever be competing on price – and that's not necessarily to your advantage. In fact, higher prices often attract better-quality customers.

So, here's what you might do instead: raise the perceived value of your offer (such as by adding an attractive bonus people can't find anywhere else), and then raise your price too.

Many people associate price with quality, so you may find that simply raising your prices boosts your conversions.

TIP: The only way to know for sure what price delivers the best conversions is to track and test your pricing. You can do a split-test where your sales letters are exactly the same except for pricing, determine which price your audience responds to the best, and then start using the price that delivers the best conversions and most profits.

Let me also suggest a quick variation: You can raise the perceived value of your offer and raise the price as mentioned previously…and then offer a coupon that provides a discount.

When the discount is applied, the customer will be buying at the "original" price, but now they are getting a much better deal.

This should lead to greater conversion. Again, tracking is key to finding out what works best.

Here’s the next factor…

Factor #2: Weak Sales Copy

You can have an awesome product – far superior to anything else on the market – but if your sales letter doesn't convey this awesomeness, then your sales are going to suffer.

As such, if you're not well-versed in the art and science of writing effective, convincing sales copy, then this is one task that you'll want to consider outsourcing.

TIP: Search for a copywriter on Google or post a project on a site like Upwork. Research all prospective copywriters thoroughly to be sure you hire a professional who’ll produce great results for you.

Here's a related factor that influences sales…

Factor #3: No Unique Selling Proposition

When your prospects land on your sales letter (and your website as a whole), they're going to be looking for the answer to this question…

"Why should I buy this offer instead
of the many competing offers available?"

If you don't answer that question for your prospects, they're going to move on. And that's why you need to develop a USP (unique selling proposition or position), which is a succinct statement that tells prospects why your offer is better than the competitors' offers.

What makes your product stand out? Your USP can be based on a variety of factors.

For example:

  • Pricing (high or low).
  • Guarantee.
  • Exceptional customer service.
  • Your product is "first" in some category.
  • Your product was made in a unique way.
  • You are uniquely qualified to offer this product.
  • Your product has something that no other product offers.
  • You offer a unique formula or system in presenting the content.

Here's a real-life USP: Burger King says you can "have it your way." This USP set the fast food joint apart from the other restaurants, where traditionally it seemed like a hassle for the restaurant to prepare something that was customized for buyers.

What you'll want to do is research your competitors to find out what USPs they're using (as you obviously want something unique) and talk to your prospects to determine what factors are important to them. Then select an important factor that your competitors aren't using.

Next…

Factor #4: Poor Customer Service

No matter where someone is in your sales funnel – from brand-new subscriber to repeat buyer – you can destroy the entire relationship with poor customer service.

Even if you have a superior product, your customers will abandon you if you don't offer superior customer service too. That's why you want to make sure you offer prompt, professional and friendly customer service, from pre-sale inquiries to refunds to everything in between.

Factor #5: Lack of Exposure

Still another reason why people don't buy is simply because they don't know about your offers, they've forgotten about them, or they haven't received enough exposure to them in order to make the buying decision.

That's why you'll want to follow up with your prospects and customers at every part of your sales funnel. This includes sending emails to all prospects and customers, as well as promoting your other offers from within your lead magnets and products.

For example, if one of your products is a membership site, then put a "Recommended Resources" section in the site which includes links to your related offers.

TIP: Even if someone has made a purchase, you still need to work on building a relationship (or risk losing them to your competitors). That's why you'll want to be sure to get all customers on a segmented mailing list so that you can send them targeted content (to build relationships) and offers (to win their repeat purchases). You'll learn more about this in Module 7.

Okay let's wrap things up…

Now it's time for you to think about how you can improve upon the five factors discussed above to start winning back customers.

DOWNLOAD YOUR PDF AND WORKSHEET – IT IS NOT CHEAP

Go ahead and complete the brainstorming session with your worksheet and I'll see you in the next module, where we'll talk about creating demand and boosting conversions so your prospects start spending more.