Credibility: The Make-or-Break Piece of the Sales-Conversion Puzzle

In the past three eAdvisor issues, we've looked closely at how a neglected sales funnel can cause companies to leak sales leads, leak customers and leak opportunities to upsell to current customers. But perhaps the most damaging of all leaks in a company's sales funnel is that of credibility. In the final article in this series, we examine the importance of credibility in your marketplace as well as ways to gain credibility — and keep it!

Credibility and why it matters
Credibility — the believability of a source or a message — comprises two key components: trustworthiness and expertise. Thus, a company seeking to measure its credibility among current and potential customers should ask these questions:

Do our customers and prospects trust what we're telling them?
Do our customers and prospects see us as experts in our field?

If the answer to either of these questions is ‘no' or even ‘maybe not,' then the company needs to work on boosting its credibility. Why? Consider this:

"A growing body of research has indicated that credibility is one of the most important components of a persuasive message and can often influence the outcome of persuasive messages" (Perloff 1993; Choi and Rifon 2002).

In short, credibility ultimately leads to sales. But how is credibility achieved?

Too often, companies believe they can "buy" credibility through traditional — and typically very expensive — advertising methods. In fact, recent surveys suggest that B2B marketers are spending roughly 60-75 percent of their budget on passive forms of traditional advertising such as trade journals, trade shows, magazine advertising, direct mail or TV (Cahners Advertising Research Reports).

However, expensive doesn't always mean effective. In fact, 75 percent of people don't believe that companies tell the truth in advertisements (Yankelovich). Rather, client testimonials, case studies and "word on the street" are perceived as the three most credible forms of marketing (Odden, 25 Signals of Credibility for Marketing Agencies).

Building credibility, building relationships
It makes sense that people prefer to do business with those they know and trust — those with whom they have a relationship. Thus, building credibility among target audiences means developing relationships with those audiences. Establishing consistent and meaningful communication with customers and prospects can be a giant step toward building a relationship with them.

A professional email newsletter is among the most cost effective relationship-building tools known to modern-day marketers. The eNewsletter serves as a convenient platform for client testimonials and case studies, identified as two of the most credible forms of marketing. It also allows companies to "tell their story" through industry articles, news and event recaps, and letters from the CEO or upper management.

When sent consistently, a well-written, informative company eNewsletter:

brings value to recipients' lives through relevant, timely articles and information
helps puts a "face" with the company's name, allowing recipients to feel connected to the company in a way they may not feel to its competitors
establishes the company as an expert in its field, the go-to source on a topic within its industry
reinforces a company's brand and commitment to communicating with its customers

Understanding the importance of credibility is the first step to gaining it. The second step is to take action — employ marketing tactics that work to establish trust and expertise within your industry.

Learn how a quality email newsletter can be the credibility booster you need to keep your sales funnel thriving. Contact Proven Systems today at (800) 720-5398 or info@provensystems.com.

Get a no-obligation evaluation of your current email newsletter marketing practices.

Contact us by:
Email: info@provensystems.com
Phone: 800.720.5398
Web: www.provensystems.com

Credibility: The Make-or-Break Piece of the Sales-Conversion Puzzle

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