Jay Abraham's Case Study

Jay Abraham's Case Study #417

From: Ron Dumas
To: Jay Abraham
Sent: Thursday, August 01, 2002 9:14 AM

This is in response to your email requesting stories about the successful use of your marketing ideas. I have used your ideas as a consultant for several years and have increased either/both profits, sales and new clients. Below is several ideas that I used for different clients and the results.

Abraham technique used: Using referrals and personal endorsements.

Hired by a software company who had a superb product however their sales had stagnated.

Customer Problem: After talking to the management and their software engineers I concluded they were selling only the features of the product and not mentioning how the software was solving the specific problems of their customers. They only talked to their customers when their were problems or questions from the customers.

Solution: I contacted many of their happy customers and discussed how they used the software to solve their specific problems. And, I asked each of them if they would be willing to participate in a video stating exactly what they did, what the results were and that they would recommend the software to new customers.

Results: The company's sales increased by over 100% per month in less than 90 days and they continue to rise.

Abraham technique used: Continue using programs that are successful.

Customer Problem: Client was very successful for several years. However, even though success was in their grasp they decided to entirely change their direct mail letters with a new approach recommended by another marketing consultant.

Solution: I was hired to replace another marketing consultant since their new program not only was not increasing their sales it had caused the company's sales to retrace to a level they had not seen for several years. This turned out to be an easy assignment. I went into the firm and reviewed where the company was and where they were before the previous marketing company was hired. I found out that the previous marketing company had convinced management that their successful direct program was out of date and it needed to be 'brought up to date." Management agreed because they personally had seen the same letters going out for several years and were tired of them. They never came to the conclusion that it was only "old" to them but new and exciting to their potential customers. I pointed this out and tried a test case using the old direct mail pieces.

Results: The company's return from the 'old' direct mail letters went back to normal and profits/sales increased. I pointed out the major mistake that was made was two fold: 1) They discarded a perfectly good and successful program for a new program. 2) They failed to test a new program on a small basis before spending a lot of money on an untried idea.

Abraham technique used: Using risk reversal

Customer Problem: New investment management firm having difficulty getting clients to believe they would be successful with their advice. The investment management company was relatively new in the management business and had very few clients. Mainly the clients were relatives and friends of the money managers. They needed new clients in order to grow and they needed customers to refer their friends and relatives.

Solution: The money managers were asked how much they believed in their recommendations. They indicated they had tested their advice with their own money and referred their relatives to their company. However, their fees were structured where they took a percentage of their clients' account each month regardless of how much money they had made or loss for their clients. The money managers were sincerely convinced they methods would continue to be successful. The recommendation was to change their fee schedule to be on an incentive basis. That is, their fees would be totally based on the success or profits they made for their clients.

Results: The fee schedule that was recommended was on that was a progressive basis, i.e., the more profits made for the clients, the larger the incentive fee. This worked so well that the new fee schedule brought in more new clients and higher profits than the original fee schedule. By showing their customers that they were willing to take risk by managing the accounts for free if there were no client profits and higher fees the more profits made for their clients.

Abraham technique used: Using the 'hidden assets' of a company

Customer Problem: Company was over 30 years old with a large customer base that was very seldom contacted. Sales remained constant for several years, but costs and expenses continued to rise and profits continued to decrease. Company had tried many new ideas to increase sales and it appeared that their sales continued, primarily with new customers because the machinery made had a longevity of over 50 years. And, most customers did not need many of their machines.

Solution: Since the company had been in business for over 30 years it was obvious their products were well made and liked by their customers. I contacted many of their customers and found out that they did not know all of the services and other products offered by this company. Since the machines continued to work there was little contact between the manufacturer and the customer. We initiated a new program that periodically informed all of the customers of the additional products and services offered. In addition, we initiated a maintenance program and educational program. This brought in additional revenue and exposed the company's employees to their customers on a regular basis. Also, the educational program showed the customer new and better ways to use their already owned machines. The new uses in many cases encouraged the customers to buy more machines since they now had a new use for equipment they were happy with and familiar.

Results: The company's sales increased and they crested a new revenue source, maintenance and education. They were able to charge $75 to $150 per hour for their employees that serviced their customers. In addition, the employees got the opportunity to get out and do some travel that made their job more interesting. Bottom line, it was a win-win situation for everyone involved.

These are some of the success stories from some of my clients. As a consultant I have been able to use the different ideas I have learned from the books and workshops I attended over the years. Hopefully the above examples will help you in your quest for your new 'book'. I am looking forward to receiving your compilation of other success stories.

Sincerely,

Ron Dumas