Men try to half-ass this one… [6 of 7]
Grow your business by caring about people.
It sounds like fluffy woo-woo advice. How does “caring” actually boost sales?
Does it really increase the bottom line, or is it just about being a “good guy”?
Don’t get me wrong…I want to help people. I care for them. But I also want to grow my business, and I know you do, too.
And while there’s nothing wrong with being generous, I don’t want to be a sucker.
So when I interviewed an expert on building business relationships through gift-giving, I was a bit skeptical, and I had a lot of questions.
For instance, he helped one of his clients put together a monthly gift-giving program for their top 30 clients, and it resulted in an extra $350,000 proposal.
“[That client] invested $20,000, which is not insignificant, but I think he’s probably spent $20,000 on a trade show and had it produce nothing,” says John Ruhlin, the founder of the Ruhlin Group. “Here at least he’s taking his top 30 relationships…What’s worst case scenario? That they love you a little bit more?”
Okay, so gift-giving. That’s not exactly a new thing you and I have never heard of before. But here’s the REAL secret to why this works so well for John:
“[Gift-giving] is one of those simple things that all business people know, but we view it as a nice-to not a have-to,” says John. “So, we kind of half-ass it at the last minute on December 15th.”
(Let’s be honest, isn’t that the way it usually goes?)
And John says this is especially true for men. “We’re very linear,” he says. “We just want to say, ‘Hey, assistant, how many clients we have? Here’s $10,000, take care of everybody, will you?’”
So, the assistant divides $10,000 by 1,000 clients, and looks for a $10 gift. However, you can bet that a $10 gift will be tossed in the trash.
John says it’s like giving a $100 Fossil watch to a client who wears a Rolex.
Or like opening a nicely wrapped gift from your aunt…and it’s a pair of scratchy socks.
So, tip #1 is to be more thoughtful in your gift-giving. (This doesn’t mean you have to buy everyone a Rolex…more on that in just a minute…)
Then, tip #2: personalize the gift with their name, and NOT with your logo…
“There’s a difference between a gift and a promotional item,” says John. “Most people try to blend the two together. So, they put their logo as big as possible on it and pass it out to as many people as possible. And then they wonder why nobody says thank-you.”
Remember, this should be all about them. It’s not about you or your business. Counterintuitive, I know, but it’s the truth.
Alright, so here’s the BIG question I had for John (and maybe you’re thinking it, too)…
How does a SMALL company afford these fancy gifts? I mean, dropping $20k on clients who wear Rolexes sounds great and all, but frankly, that’s not the reality for most startup founders.
Is there a cheaper way to do this, to give out gifts that are meaningful, but don’t cost $20,000?
“We go as low as probably $40 or $50 per gift and we go as high as $25,000 per gift,” says John. “Our rule of thumb is whatever you’d be willing to spend on a round of golf, a dinner, or a ballgame with a client, you should be willing to spend on something that’s tangible and could last the next 20 or 30 years…whether it’s knives or leather goods or wine openers.”
So…your challenge right now: In your notebook or Google doc, brainstorm about how you could incorporate strategic gift-giving into your sales processes.
Who are your top clients? Which of these would you send gifts to? (Or, if you sell to consumers, who are the top influencers you could send gifts to?)
Now think about each person, and ask yourself – what are some gift ideas that would fit their lifestyle?
Then, think about how to budget for this. Could you redirect some of your budget for travel or entertaining or advertising to the relationships you already have (or the relationships you want to build)?
Take five minutes and write down your answers now, while this gift-giving technique is still fresh on your mind.
Btw, I know how simple this sales strategy seems, but I also know how powerful it is when you’re the recipient…
Because awhile back, a box of knives appeared in the mail.
These were nice Cutco knives, with my name and “Mixergy” engraved on them. They were from Hal Elrod, who I’d just interviewed.
Now, I’d never received a gift for my home from an interviewee. Most guys I interview don’t know anything about the home, and definitely don’t give kitchen gifts. We’re tech guys, we’re always out.
So it really made an impression, on both me AND my wife Olivia. And even today, guests who come over will notice the knives. They stand out because they have my name on them.
That’s how you do generosity in business, without looking like a sucker. :-)
-Andrew
Founder, Mixergy