What QVC Can Teach You About Marketing

What QVC Can Teach You About Marketing

By anyone's standards, the QVC shopping network has been a huge success and offers a prospecting and sales model that real estate agents should pay attention to. By employing a system of authentic and honest storytelling, combined with facts, a sense of urgency, and strong visual and personable components, QVC's consistent process contains lessons that you should pay attention to.

It’s been around nearly 40 years, it’s the butt of many a spoof or joke, and it’s one of the most finely honed selling machines in existence.

What am I talking about? QVC, or course!

I know you’re probably wondering why in the world this Zebra Report would focus on QVC. Well, stay tuned - because I think QVC has a lot to teach us.

First, a little background about QVC, which stands for "Quality | Value | Convenience". At its most basic level, everything about QVC’s message can be stripped down to one of these three issues... and while each host on QVC delivers the message a little differently, they’re all delivering a message about quality, value, and convenience.

QVC has been around since 1986, and is estimated to be the largest of the home shopping networks. The company claims to sell over 800 unique products per week. While they keep sales data pretty close to their chest, QVC did indicate that their record sales occurred on December 2nd of 2001 - when they took over $80 million in orders!

Broadcasting in seven countries, QVC is estimated to reach over 350 million households. You can watch QVC 364 days a year (they take Christmas off!) on television; they also broadcast live at QVC.com, so even households without a television can find them online. About 96% of homes in America have access to QVC!

By anyone’s standards, the show is a huge success. But how has that happened?

In the same way that any business creates success - by arriving at a formula that works.

The QVC Formula

QVC has a finely calibrated sales process, based on a proven formula. Here’s the QVC formula - and it works brilliantly!

1
Master of Ceremonies A host acts as master-of-ceremonies who manages the flow of the discussion with viewers and with anyone else who is live on the segment. This person is responsible for building a relationship with consumers. This is you, the real estate agent.
2
The Featured Expert An expert, or the creator or designer of the product, is often featured. Everyone loves an expert, and experts add credibility. Not only that, they can provide information beyond what an average host would be expected to know. These are your title reps, your lenders, your contractors, your MLS, and other sources that reinforce your message and bring expert facts to the conversation.
3
A Focus on Benefits Conversation by the hosts includes data about the product, but extensive time is spent talking about the benefits of the product. Often this is tied to status enhancement or the wisdom of the purchase. Yes, the QVC hosts might talk about how many carats of jewelry are in a cocktail ring, but you’ll also hear them talk about how much better your life will be if only you can purchase the ring. "Imagine how envious your friends will be!" "Wouldn’t this look stunning on your hand?" As an agent, this is you speaking to the moment of the market and the opportunities at hand, the chance to be in the home they want.
4
Fellow Consumer Testimonials When testimonials are shared, they come from the viewers' peers. QVC uses their huge audience of viewers and purchasers to confirm the purchase decision. Viewers are asked to call in and share their experience - either with the product being sold, or with QVC in general. Hearing others validate a product lowers resistance to purchasing, and increases the odds that viewers will pick up the phone or make a purchase online.
5
Selling to the Senses Hosts on QVC provide a visual and audio experience through-out the presentation. They visually illustrate quality. You’ll never see hosts on QVC selling without having at least one - and often many versions - of the product available. Let’s imagine they’re selling purses. Their team is highly skilled at showing each and every compartment in the purse, showing you the pockets for sunglasses, the top-quality zipper, and discussing the strength of the shoulder straps. In fact, much of their air time is devoted to product shots, rather than focusing on the host and the guest. Like any good host, the focus is on how it benefits the potential client, not how great the host is.
6
A Sense of Urgency Between a countdown clock showing how much time is left in the segment and an inventory count showing rapid sales, QVC is a master at creating the feeling of, "Oh no! I had better hurry up and purchase... or else." These are your market facts and your historical perspective.
7
Proof of Desirability As product is sold viewers are made aware of remaining inventory, which reinforces the idea that they should "hop on the bandwagon." Not only does an inventory count show that your opportunities to get the deal are dwindling, it also reinforces the wisdom of the purchase. Viewers have proof that others have obviously seen the value of the product. Just like a good host, you are informing potential buyers of changing inventory, potential sellers when their property is market-hot and growing in value.
8
The Consequence of Waiting Throughout the segment viewers are regularly reminded that they may miss out if they don’t take action. As an agent, you are keenly aware that markets change and probably even understand some of what change is ahead. Always keep in mind how you can frame today's market as today's opportunity.
9
Connecting With Their Audience QVC works to provide a congenial atmosphere of camaraderie. Viewers are treated as old, treasured friends, and are talked about as part of the, "QVC family." Hosts and expert guests focus on how much they are like their viewers, facing the same challenges - and they talk about how viewers can experience the same benefits if only they could purchase the product.
10
Watch for Cues and Adjust Accordingly Producers are watching QVC sales during segments and are constantly relaying information to hosts. If the hosts says something and sales spike, producers prompt them to repeat the statement. If they don’t properly showcase merchandise, or forget to continue to a discussion that’s rich in benefits, the producers will continue to remind them to do so until sales trend up. Just like a good host, you need to pay attention to both your marketing and what your audience is telling you.
11
The Possibility of Missed Opportunity Hosts don't mention today's opportunity just once during the segment. In a number of ways - some overt, some not - QVC builds pressure and urgency to purchase right here, right now, before it’s, "too late."
12
Value is Proven Viewers are convinced that products are high quality, in demand, and will enrich to their lives. That’s the trifecta for getting a consumer to say, "yes."

You probably wouldn’t be surprised to learn that QVC hosts train for many, many hours before they present products. They know that understanding their formula is critical to their success.

Of course, your business is not running a home shopping channel, but your business also requires a formula for success. Like the team at QVC, you have to rehearse the formula, perfect the formula, and stick to the formula (while watching for cues that you may need to make slight adjustments along the way). You can expect that if you vary from the formula, the level of your success will vary as well.

I’m not suggesting you learn a series of robotic scripts that roll off your tongue. Scripts don’t work; systems and formulas do!

By Denise Lones CSP, CMP, M.I.R.M.
The founding partner of The Lones Group, Denise Lones has over three decades of experience in the real estate industry. With agent/broker coaching, expertise in branding, lead generation, strategic marketing, business analysis, new home project planning, product development and more, Denise is nationally recognized as the source for all things real estate. With a passion for improvement, Denise has helped thousands of real estate agents, brokers, and managers build their business to unprecedented levels of success, while helping them maintain balance and quality of life.