When the smoke clears, will your reputation?

No one in the Pacific Northwest has to be reminded that this is the worst fire season since 2003.

Depending on what you do a bad fire season could be a boon, a bust or a non-issue to your business. Over the last couple of weeks, we had communications and marketing oriented conversations focused on the folks whose businesses are placed at risk by a bad fire season.

There’s a different kind of business impacted by fires, natural disasters and similar events: those who provide things like tanker trucks, field rations and related convenience items, construction supplies (lumber, drywall, tools etc) and so on.

If a scene like this summer means that you will be extra busy for the next year or so, perhaps more, good for you – particularly if you are a trusted member of your community (business and otherwise).

However obvious this may seem, it needs to be said…

A reputation setting recovery

The way you and your staff serve your clients from now until the recovery is over – regardless of what’s being recovered from – will set the tone for your business’ future.

Some will eventually give you a second chance, but for most, this is the one chance your business will get to show its colors. It will seal the reputation of the business, its owner(s), managers and staff.

Captain Obvious, you say? Perhaps, yet we continue to see examples where businesses have behaved so badly that governments feel obligated to put “no gouging” laws into place.

The thing is, pricing is the least of your problems. People understand that pricing gets a little crazy when resources are constrained. Supplies are often harder to get, and they’re often competing for scarce transportation facilities including berth time at port, dock time at warehouses, much less truck drivers or semi-trailers to haul those supplies. Qualified people are in demand, which tends to create overtime hours.

Do your clients want to wait or pay overtime-related costs? Ask them.

Communicating the challenge

When these situations occur and drive up your costs, communicate the situation as frequently, quickly and clearly as possible. Communicate what you’ve done to try and work around the situation. Ask your clients for ideas and connections in their network that could help you serve them a bit better.

You never know when a client might have access to resources or connections that could solve a problem that’s simply “killing” you – and those things may be out of reach without a little insider help. Even worse, if these clients know what’s blocking your progress and they know their resources / connections could help but you keep telling them you have things under control – how could that damage your relationship / reputation?

It’s OK to ask for help.

Resource problems aside, be sure that any abnormal delivery timeframes, costs, staffing challenges or other potentially damaging issues are communicated well. Transparency works. Small businesses use it as a competitive advantage vs. larger, better funded competitors during good times, why not use it during challenging, resource-constrained times for the same reason?

Call volumes are unexpectedly high, but your call is important to us…” – something you’d never say to a client before putting them on hold. Yet you only get this greeting when reputation damage is most likely to happen.

We don’t remember that the cable internet met their 99.9% uptime goal last year, but we remember each of the 43.8 minutes of downtime per month that this uptime goal allows for – and that the downtimes happened at inopportune times.

We remember when we consistently get a transparent answer or explanation.

The mindset that risks it all

The “they have no choice, I will get (and keep) the business no matter how I act” mindset can infect everything from sales and service to receivables and delivery. Once observed in one part of the business, it’s a matter of time until it crawls elsewhere.

I won’t belabor this, because the kind of business owner or manager who would let this behavior happen wouldn’t likely read my work. Despite that, check out the short 30 seconds it takes Vince Lombardi to describe the obligation that team members have to do their best on every play of every game.

Print readers, see https://www.youtube.com/watch?v=HKN3rvrWyvg&feature=youtu.be&t=0m50s

 

Why do they want to disrupt your market?

The big word in the startup world is disruption, as in “We will disrupt the what-cha-ma-call-it market.” Thinking about last week’s discussion about buying a new vehicle, let’s talk about what disruption is and why “they” want to disrupt our market.

Some examples of disruption

Paypal disrupted the credit card merchant account market. Old news, but it’s a good example. At the time, it was a substantial effort for a small business to get setup so their clients could pay them with a credit card – particularly if there was a web site or phone sales involved. You could do it, but the fees and the startup obstacles put in place by the banks offering merchant accounts were a time-consuming hassle. The assumption was that you weren’t as “real” as a business selling hard goods out of a retail location. Paypal knew better and treated these businesses with honor rather than suspicion and contempt.

Ultimately, Paypal made it easy to get a merchant account. They made it easy by allowing you to manage it online. Finally, they made it more secure by creating a layer between the client and the small business taking the payment. The client gained because they didn’t have to reveal their card number to the small business. The small business gained because the “layer” that kept the card number out of the hands of the small businesses meant Paypal took on the security requirements and many of the risks of card payment fraud. More secure equals less hassle. Easier and less risk for all involved.

You can find many other examples of disruption in the finance-related sector – all of them based on eliminating the annoyances and artificial barriers established by long-term players in that field.

Other examples include Uber (Is the cab business focused on being a high-quality customer-centric experience?) and SpaceX (Is the defense / aerospace business is designed to provide the best bang for the buck?).

Why do they want to disrupt my market?

Simply put, because doing business with you or your peers (or both) is a pain in the keister. When you make it hard to deal with you, you create opportunities for startups that don’t mind doing things differently.

How do they disrupt my business? Mostly by taking the hassle out of it. Those who disrupt your market talk to your clients and identify the things that drive them crazy about working with you. What keeps you from doing that? Nothing other than you being stuck in “We’ve always done it that way” mode.

The real estate market is a great example of how businesses get disrupted. Zillow produced a website that allowed would-be buyers to identify properties for sale before they were ready to contact a Realtor. Will they still have to work with a Realtor at some point? Probably. Before they “get serious”, are they required to deal with the barriers that most real estate firms put in place? Before Zillow and the like, it was all but a necessity. At that point, you did things their way on their terms. Today, you don’t have to engage a Realtor until you’re ready to take some action.

Could Realtors have opened up MLS to web access before Zillow appeared? Yes, but they didn’t. Could they have made it easier to shop before getting signed up with a Realtor? Yes, but they didn’t. Instead, the MLS was used as a wall around the property-for-sale inventory. Until Zillow and similar vendors provided access to this data (or a subset of it), there was little if any pressure on real estate firms to implement such systems or radically improve their processes to make them more client-friendly.

Eventually, they figured it out and created a new Realtor.com that competes with Zillow and similar sites.

Realtors are not the target

These types of problems are not unique to Realtors. They are common to many businesses.

If you look at these disruptive new businesses, they’re usually focused on eliminating the market’s pet peeves.

Referring back to last week’s car lot experience, consider the business model that Vroom.com has put together. It’s not perfect, but it does a nice job of eliminating the horse biscuits from the buying process. And yet, there’s not a single thing they’re doing that local car dealers can’t do.

Will they notice and adopt the best parts?

And in your market, will you?

Take bad competition seriously

I don’t talk much about competitors.

I avoid it for a couple of reasons. First, because you have far more to gain by investing time and effort into improving your own business. Second, worrying about what someone else is doing is usually a waste of time since you have no control over their behavior.

There are a couple of exceptions:

  • When a competitor does something smart.
  • When a competitor repeatedly damages the reputation of your market.

We’re going to spend most of today focused on the worst of these.

When a competitor does something smart

When you do something smart, a competitor will copy what you did – perhaps. Other times, competitors will watch what you did and fail to see value in it, fail to understand it, or decide that it’s not a good fit for their business.

Sometimes, you’re the one watching that happen. You owe it to yourself to pay enough attention so that when a competitor does something smart, you can analyze what your action would be. For example, if you run a high end hotel and the other high end hotel in town adds valet parking,  you’re going to need to think about how to respond.

The key here is not usually the thing being done. It’s seeing the move for what it is. Deciding why it was done and what it accomplishes isn’t always obvious. Consider it carefully.

Competition damaging the market

Usually a competitor who can’t get out of their own way will find a way to go out of business. This allows us to ignore them and let them flame out on their own.

Sometimes we aren’t that lucky. When that happens, what we’ll find is a business (and owner) who damages their own business, but not bad enough to make it fail. You’ll see this in markets with enough demand that even a poorly run business can find a way to make enough to survive.

The problem is that a business run this poorly creates a reputation that can damage every business in the sector. If there’s more than one of them, it’s a matter of time before their combined reputation stains an entire market full of businesses.

Including yours.

Don’t take it.

Are you willing to let your competition destroy the reputation of the market you’re in? Of the business you’ve worked so hard to build?

Think about the effort you invest to market and sell what you’ve worked so hard on. What would it take to accomplish the same thing if your reputation wasn’t what it is right now?

How many times have you heard people discuss putting off a transaction with a vendor because of prior experience with another vendor? You know of markets that already have this problem.

How would you cope with a business or group of businesses that do things to cause the public to think less of the rest of the businesses in your market?

Are you sure they don’t already exist? If not, how do you find them?

Finding bad eggs

Whether these reputation-damaging competition exists or not, you’re likely to find the scoop on the social review networks where your clients report their experiences.

In general, Yelp is the best place to start since their reviews aren’t limited to any single type of business. They do have more restaurants (for example) than many other types of businesses, but their coverage is quite broad.

In some cases, you’ll find more industry focused social review services, such as TripAdvisor. Finally, if your client community includes students, their school / university may have a review service, ombudsman or similar.

You should be reviewing and responding to comments on these services on a regular basis, but in this case, you’re looking for your competition.

If you find consistent patterns of client abuse and reputation damage that span a number of your competitors, you have a decision to make.

What to do

If you can take the guilt-by-association reputation damage, or you don’t think it will affect you, stick to working on your business – but keep an eye on it.

If it’s more than you can take or it gets worse, you have a few choices:

  • Buy them out.
  • Turn up the competitive heat.
  • Decide what you’re willing to do to save your business. Remember, your business and its jobs are at stake.

Are you willing to lose your business because they don’t care about theirs?

Do you value your clientele?

Business demonstrate what they value through their behavior.

Some businesses value what they do, those they work with and most of all, those they serve. They work hard for every lead. Every client. Every order. Every payment.

They work to improve their craft every day. They learn from the best of their peers, while extracting and fine tuning strategies and tactics observed in other industries.

They “over-communicate”. As a result, their clients have no doubt what’s going on during a sales process, an order, a refund, much less construction, manufacturing, delivery, repairs and ongoing maintenance.

When there’s a problem or miscommunication, they pick up the phone, they email or otherwise communicate all the necessary details, then work as a partner with their clients to create a win-win resolution.

When they market, good businesses do their best to create want, evoke need and make an irresistible offer without being slimy. The ones who value their clients most also talk about the importance of the everyday things they do for their clients that other businesses might also do, but never bother to mention (Example: Northern Quest’s housekeeping and security team commercials).

Let’s talk about that for a moment… These businesses set standards for these seemingly mundane details and train their employees so they can attain them every day. Rather than tell us about the food or entertainment, why do they remind us of tasks performed by staff who are all but invisible to some of their guests?

The everyday things that these staffers do may not be what makes you decide to make an initial reservation (or purchase) or choose their resort over another. Even after a visit, you may not remember these details weeks or months later, if you notice them at all. What they might do is make you notice the next time, draw attention to that aspect of your experience with them and/or provoke you to think more about them on your next visit to another facility. These mundane things are often the tipping point between going back to resort A or choosing their down-the-street neighbor, resort B. They’re the kind of things done by businesses who value return clientele.

These business will do any number of things to monitor and improve the things they’ve know will cause their clients to return.

They will systematically call their clients and ask for 20-30 minutes a couple of times a year (at least) to discuss not only how their performance has been, but what the current and upcoming expectations of the client are and what else they could do for that client in the future.

When confronted with a reality check about their service, rather than come back with a confrontational reaction, they ask how they could improve that situation – and others.

These businesses don’t show that they value their clients by thinking that they’re done improving. Instead, they are constantly looking for ways to improve – even if they can’t immediately implement the change.

These businesses don’t focus on the worst of their clientele. In some cases, they fire the worst, in others, they implement programs that raise the worst to a better place. They see it as an investment to help their clientele become better individual clients, whether their clientele consists of consumers, businesses or both.

These businesses invest in education internally and demonstrate the importance of delivering educational value to their market, which not only improves the market, but establishes their position as a leader in that market and builds their credibility.

These businesses don’t have a moral ambiguity about selling. They know that they have an obligation to their business, their employees, their employee families and their communities to make the effort to see that every possible prospect who can benefit from their solutions does so. They understand that this obligation to sell to the best of their ability isn’t just about them, but that it connects to the well-being of their clients’ businesses, their clients’ employees and their families and ultimately, to the communities where those families live. They understand that this obligation does not mean that everyone with a heartbeat is their prospect, so they carefully qualify who does and doesn’t get the opportunity to benefit from their products and solutions.

Do you value your clientele?

Looking to disrupt a market?

2015 is shaping up to be a big year in Montana for Startup Weekend. With the Billings event already under our belt and three more scheduled this year (Great Falls, Bozeman, Butte), lots of people are looking for startup ideas.

One place that gets a lot of interest is “stodgy” established markets that are lucrative but neglected from a modernization and/or innovation perspective.

It’s easy to point out markets whose former leaders felt things were good enough. Those markets now have to compete with Craigslist, Uber, Airbnb, SpaceX, Apple iTunes, Spotify, Netflix, Amazon, Expedia, Kickstarter, Zillow and so on.

Ironically, some of these companies have awakened their markets to the point where they are now being disrupted by startups and in some cases, by the original leader in the market.

Things are as they should be in these markets. We earn the privilege to stay in our market every day. When we don’t, we often expose opportunity we’ve ignored, provoking someone to disrupt a market.

Resting on laurels

It’s easy to look at existing markets for disruption candidate because so many existing businesses invite competition simply by virtue of how they treat their clientele.

For example:

  • Do you work with businesses that take you for granted?
  • Treat you poorly?
  • Treat you with disdain?
  • Treat you like they’re doing you a favor?

dWhen a business leaves you feeling like one or more of those, it’s difficult not to consider what it would take to disrupt them out of the picture.

Want to disrupt a market? Disrupt yourself

Look back at that list. Does your business you make your customers feel that way? If they do, one way to fix it is to disrupt yourself. So where do you start?

Four ways that startups disrupt an existing business (or market) are through speed, improved customer service, decoupling and unbundling. Two of these are forgone conclusions that you simply cannot avoid, speed and improved customer service, while the other two are rapidly becoming assumed competitive angles.

Speed – No one’s resistant to the market’s need for more speed at the same or better level of quality. Conventional wisdom says that it can’t be done – “Pick any two: cheap, fast or good“, but conventional wisdom rarely considers what the startup list at the top of the page not only tried, but accomplished.

Improved customer service – To be sure, there are companies out there that do well both in revenue while treating their clientele poorly, but their days are numbered. One by one, they will be picked off – and I’m happy to help their competition do it.

Unbundling – Unbundling involves separating the sale of an item from the delivery of that item. Expedia is an unbundler. They took services offered by travel service providers and unbundled them from the provider who delivers them, made it easy to buy and search for what travelers needed, sold them and collected their cut. Expedia got substantial market share because they made it easy to find and compare flights without having to deal with each provider’ web site and/or phone tree. Unbundling has somewhat limited scope because it only happens at consumption / purchase time, which is why decoupling businesses started popping up.

Decoupling – A decoupler pulls apart the evaluate-select-purchase process that used to be performed at one established business. Decouplers focus on radical improvement of a single part of the process. For example, retailers face competition from decouplers who might mail samples to someone’s home, allowing them to skip a trip to the mall to decide what they want. Once the mall trip is eliminated, another step in the evaluate, select, purchase process might be removed elsewhere. Any point along the evaluate, select, deliver, purchase process is a candidate for decoupling. While the social aspects of that trip to the mall can’t yet be delivered to your mobile device, there are plenty of other ways to address shoppers’ social needs.

Try Startup Weekend Therapy

Stuck on how to disrupt yourself? Take part in a Startup Weekend. I’d be shocked if a weekend in that environment didn’t provide you with ideas and mindset adjustments to bring back to your business.

Want more? Here are a few links to startup idea resources.

http://ideamarket.com/founders.html

http://www.paulgraham.com/ambitious.html

http://paulgraham.com/startupideas.html

http://www.inc.com/rahul-varshneya/4-places-to-look-for-your-next-startup-idea.html

http://old.ycombinator.com/ideas.html (this list is aging, but they might seed a useful idea)

http://www.ideaswatch.com/

Exhibiting at trade shows – Why do it?

Should we go to every trade show every year? Some of these shows cost us well over $7000. The one show that we want to skip this year is part of an association. They have about 300 members. We know just about all of them and know what they are using. Of course, a bunch of them use our product.

Anyone who has attended a trade show knows why this question is being asked.

Avoid the knee jerk

Our thoughts first jump to the time, trouble and expense of trade show travel, time away from “real work”, conference center shipping and logistics, being on your feet all day for three to five days, skipping meals and sleep as you work 6:00 am to midnight while your friends, family and co-workers think you are “vacationing” in Orlando or Las Vegas, much less the general aggravation of things like paying $300 to rent a 10′ x 10′ piece of cheaply-made, unpadded carpet.

Trade shows can be a hassle. They require a sizable investment in time, money and people to participate, so the natural response might be “Let’s think of reasons not to go.

Don’t do that.

Why go when you own the market?

If you don’t go to a show or association meeting because you feel you own the market, what message does it send?

Here are a few possibilities:

This vendor doesn’t care enough to show up and talk to us.

This vendor only shows up when they think they can close a bunch of deals.

This vendor takes us for granted.

If your competitors are there – these are some of the ways they might position your decision not to attend, or they might simply say “Think about why Company A wouldn’t show up.

Think about the show from the point of view of the attendees who invested in your products and services. Will your absence tell them you’re taking them for granted? Remember, these people helped you gain your dominant market position by investing in what you sell. By attending these events, they’re identifying themselves as the ones who care enough about their business and their industry to step away from the office, learn what’s new, learn what is (and isn’t) working in their industry and brainstorm with peers and vendors about solutions.

Do you prefer to listen to the ones never involve themselves in such things?

Seth calls these people your tribe. Dan calls them your herd. The concepts are different, but their needs are similar. Herds require attention and care. Your clientele does too.

Herds? Really?

I don’t refer to “herd” with the mindset that your clientele is a mindless bunch of cattle. Instead, consider “herd” from the viewpoint of a rancher. How do they attend to their care, oversight and feeding?

Do they let the herd eat what they want? Deal with the weather without concern?  If a predator appears, do they simply let that predator kill off a few of the herd? If someone shows up to rustle part of the herd, do they sit back and let it happen?

Ranchers provide the right forage and plenty of fresh, unfrozen water, while protecting the herd from predators, rustlers and other threats.

They care for the members of the herd because they know each member of the herd is returning a ROI. They know what it costs to lose a head. Do you?

While members of a cattle herd don’t choose to be there, clients can choose to leave, as can tribe members. The care and attention you provide has a great influence on their choices.

What opportunities will exhibiting at a trade show present?

Find out what concerns your market today – from the current perspective of the leaders in your market, rather than from insights and perceptions that may have been formed years ago.

It’s an opportunity to talk with someone who uses another vendor’s product. If they won’t switch to yours – isn’t it important to know why? A face-to-face, eye-to-eye discussion may yield critical insight, or it’ll confirm that those people aren’t your ideal clients. Either way, it’s valuable info.

What will you gain from a stronger relationships with your clients and other vendors in your market?

Trade shows are unique gatherings of the best clients, prospects and vendors. They’re a big opportunity – if you work shows strategically and execute them with a plan.

How to make a good upsell

Thanks to cloud services, my hardware needs have shrunk substantially in recent years. This makes it easy to pace and plan hardware upgrades for what little hardware I have left.

However, reality sometimes gets in the way. Yesterday, my wife’s laptop died so I had to take immediate action.

It was a lesson in fulfillment, point of sale retail and how to make a good upsell, or not.

Bad upsells undermine trust

Every time I update Java, the Oracle-owned technology’s installer offers to install the “Ask Toolbar” as an option.

The default is “Yes, install the Ask Toolbar” and may also ask to change your home page to the Ask search engine page. My guess is that Doug Leeds (CEO of Ask) doesn’t even use Ask as his home page.

According to three different independent references in Wikipedia, the Ask Toolbar is considered malware: “Ask.com is noted for a malware toolbar that can be surreptitiously bundled in with legitimate program installations, and which generally cannot be easily removed from most common browsers once installed.

Every time I update Adobe Flash Player, the Adobe-installer offers to install McAfee anti-virus. Naturally, the default is “Yes, install MacAfee.”

Since Microsoft bought Skype, the Skype installer now asks to switch your default browser, switch your default search engine and install a browser plugin that changes what happens when you click on a phone number. Of course, “Yes, please make all those changes.” is the default.

In all three cases, these defaults are the last thing you want to do.

The point is that these actions give the impression that these companies are willing to damage their reputations (and our computers) and undermine any trust we might have in them by injecting these out-of-context (or damaging) upsells into the process of using their products.

Why bad upsells annoy us

As long as we’re paying attention, these things are easy to bypass and only take a moment to do so. Anytime we’re installing software on a computer, the prudent user should be paying attention. We should not be clicking through the install to “just get it over with”, yet many do exactly that and find themselves victims of these unscrupulous install processes.

They amount to bad upsells.

These situations annoy us because they change our experience with the vendor’s product and make us be on our guard at a time when the vendor’s trust should be assumed – when we allow them to take brief control of our machines so their software can be updated.

It’s the worst possible time to do something to undermine trust, yet that’s exactly what these and other vendors do. It’s the worst kind of upsell, even though we aren’t being asked to open our wallets.

So how does that relate to a new laptop?

Good upsells are helpful

Deciding what to upsell is as important as the act of asking about it. When someone asks me how to make a good upsell, I suggest that they focus on being helpful.

If someone brings a couple of cases of canned drinks to the checkout stand, a helpful suggestion is “Do you need any ice?

If they bring five quarts of motor oil to the checkout, it makes sense to ask about the kind of vehicle they have so you can help them select an oil filter.

Even though we buy gifts for people all year, only jewelry stores tend to ask if if we’d like complimentary gift wrap for a purchase made January through October. Gift wrap is an upsell, even if it’s free.

We get distracted or forgetful in these situations by thinking beyond the moment, so the right kind of upsell can save us time, fuel, frustration and embarrassment by reminding us about important but briefly forgotten items.

As with any marketing, you should test your upsell to see what works so you can stop doing what doesn’t. A better ice question might be “Do you have enough ice to keep these cold all day?“, but you won’t know this unless you test different questions and measure the results.

Does the upsell help the customer remember something that compliments their purchase? Does it help them make the purchase more effective, more productive, more valuable to them?  Does the upsell build trust or undermine it?

Bottom line: Does it help them?

Focused on the holiday, now or the future?

It’s that time of year when business owners are pulled in many directions. The end of the calendar year has a way of doing that.

Some of us are focused on the year we’ve had, some on this month’s performance (which could make or break the year), and some on the future.

While all of those things are important, it’s a good time to remind you of the difference between “working on vs. working in the business” and how important ON vs IN is to getting your business out of what feels like survival mode.

Working IN the business

Almost all of us do this to some extent. What exactly does it mean?

Working IN the business is about taking care of today’s production and quite often, dealing with the crisis of the day – whatever that might be. It’s about making sure clients are happy, products and services are getting delivered – and in some cases, taking part in that creation/delivery.

In short – this is you, the owner/manager, working as an employee of the business. There are times when this is essential and in the smallest of businesses – the solo business owner – it’s how you generate revenue. The thing you need to be cognizant of is making sure working IN time doesn’t become a substantial majority of your work time month-in, month-out, even if you’re the only one there.

If you’re an employee reading this, I hope your employer’s owner and manager(s) spend more time working ON, than IN, but this isn’t always possible. Sometimes, everyone has to knuckle down and get work out the door.

If you’re an employee who thinks they’re doing this – see what you and your peers can do to take even one thing off their plate without being asked. Every little bit helps. If you’re worried about overstepping your bounds, ask.

If nothing else, asking the question should send the message that you have the best interests of the business on your mind.

Working ON the business

Working ON is what allows the business to worry less about what’s happening next month, much less next week or tomorrow.

Why worry less? Because you’re doing enough working ON to be pretty confident that things are booked for that day, week and/or month.

How does a business worry? When you wonder how you’ll make payroll next month, you worry – and it’s reflected in your comments and actions. When employees notice things that tell them money is tight (or really tight), they worry – and it’s reflected in their comments and actions.

These comments and actions reflect on your business. They send a message to your client, your banker, your family (and your staff’s families) and others.

Working ON includes planning and executing, but it’s also very much about communications. Making sure everyone understands what will happen next month and the month after, how those impact the rest of the year’s plans is critical to getting everyone on board.

Are you simply too buried in working IN to work ON this month? If so, take a minute to make an appointment with yourself in your calendar later this month or early next month. Spend that appointment time planning your year so that this time next year, you’re spending more time working ON more so than working IN.

Some examples would be worthwhile, eh?

Since I talk about this fairly often, some examples of “working ON” would be useful.

Spend time on asking yourself these things:

  • What can be systemized?
  • What should never be systemized?
  • What can you do to take the risk of purchase off of your client by providing them with a meaningful, no “but clause” guarantee that they’ll trust?
  • Who are our best clients, how do we keep them, sell more to them, and find more like them?
  • Who are our worst clients and how do we get rid of them? You know who the painful ones are.  Either fix what’s wrong or get rid of them. They can poison your business.
  • How can we avoid having letting the market and your customers beat down what we do into a commodity?
  • What upsells and follow up offers can we make at the time of purchase that make sense based on what the buyer bought. Remember, the hottest buyer in the world is one in front of you. Did you satisfy ALL of their needs and wants?

 

Selling to everyone

Selling isn’t about the shine; it’s about what happens when the shine has worn off.

Will your (or your clients’) management will think positively of you a year from now because of an investment you championed?

They’d better.

Sales calls: How they react

What’s your reaction when a salesperson calls?

Are there any salespeople who stand out from the crowd that you don’t want to talk to? If you’re a salesperson and you don’t get sales calls, ask around your company about the nature of the sales calls your management receives. You could learn a lot about the calls you make.

With a few exceptions, here are the reasons why I react the way I do to your sales call:

  • I don’t know you, even though you act like I do.
  • I still have a bad feeling about our last deal and you act like that didn’t happen.
  • I don’t need anything right now, but I am willing to listen to new stuff – just in case – IF you make an appointment.
  • You don’t have an appointment. Message received = You don’t respect my schedule or my time.
  • I’m the wrong person or we’re have zero need.
  • Last time we talked, you gave a generic presentation suited to all businesses, rather than one fine tuned for my business needs.
  • Your last presentation was like drinking from a firehose.
  • The financials from our last discussion were generic and didn’t identify the payoff period.
  • Your assessment of labor cost savings (despite my objections/feedback) is inaccurate and/or you tend to ignore the additional costs incurred by implementing your solution, such as management costs.
  • You are out of touch with what’s going on with the product side of your business, such as open issues, deliverability delays, implementation costs / timelines.

Sales calls: How they want to react

What people would like to feel when you call is “This person is a champion for our company. They only call when there’s a likely win ready for me, or when I need to know about something new in the industry that might affect our business.

You get to that point in your clients’ minds in part by asking yourself questions like these:

Why am I qualified to propose these solutions?

Do I have testimonials not only for my solution and company, but for the job I’ve done helping my clients?

My prospect / client fits us well because…

We are a good fit for our prospect / client because…

Have you reviewed the alternatives to your solution? If so, what are the pros and cons of each and why is yours the best fit for us?

Is my company a market leader? Not just in revenue, but in vision.

Is my company cranking out the same old thing to milk their cash cow, or are we also thinking about what our clients upcoming needs and producing something to address them?

Can my solution, my company and my proposal help my clients solve problems without causing them to lose momentum?

Selling to everyone means selling to anyone

When you produce financials to sell your deal, you have to do the math and show your work, just like a high school test. Your proposal’s payback, implementation timeline and life cycle must reflect the client’s reality and your company’s ability to deliver.

The challenge is that every department views ROI differently. Today, you’re often selling to everyone in your client’s company.

A proposal citing the accounting and tax benefits will interest Accounting, but will resonate with Manufacturing / Shipping people who are concerned with process efficiency, throughput, MTBF and similar metrics?

Without buy in from everyone involved, your sale will be harder than it has to be.

Everyone involved“? The discussion that sells the CEO and CFO will differ from one that gets Manufacturing on board, much less the one that gives the warehouse manager the tools necessary to get their staff on board.

Why should you care about whether the warehouse is on board?

Because they can kill a purchase, even though you never hear it that way. No CEO will tell you that Margaret in Accounting killed the deal or that the guys in the shop / on the dock thought the solution made no sense.

A final question: “Have you produced in-context materials for the client’s departments that help the client’s management sell the proposal to each department on their own terms?

ROI: Why they don’t take your call

These days, it isn’t about the shine; it’s about what happens when the shine wears off.

Will your business owner clients think positively of you a year from now because of an investment you championed? They’d better. Without buy in from everyone involved, resistance is the best you can expect the next time you visit.

As for this time – If you can’t explain to a random person in the lunch room or the warehouse why their employer should buy your stuff, it’s going to get picked to shreds.

ROI and the Why-To-Buy

The key to being successful is establishing Why-to-Buy in the context of each involved group. The discussion that sells the owner will differ quite a bit from the one that gets the warehouse on board, much less the one that gives the warehouse manager the tools necessary to get their staff on board.

When new purchase discussions do get down to talking about numbers, the ROI discussed is sometimes legitimately unproven and is frequently presented in a way that makes ROI impossible to prove, much less disprove. That’s a fast track to a “no sale”.

What’s your reaction to sales calls?

Ask a few business owners about sales calls. You’ll get a common list of “Why I don’t want to talk to you, sales dude.

  • I don’t know you, even though you act like I do.
  • I still have a bad feeling about our last deal.
  • I don’t need anything right now, but I am willing to listen to new stuff just in case, but you need to make an appointment.
  • You have no appointment.
  • I’m the wrong person.

The last time I had an office on a public street, the front door had a sign that invited two types of salespeople in (Girl Scouts, Boy Scouts) and provided the rest with instructions and a number to call for an appointment.

In seven years, one salesperson called that number to make an appointment. The rest wasted their time because they didn’t respect our time enough to make an appointment. You might think that an aggressive salesperson shouldn’t take no for an answer. When it concerned that office, that was the wrong choice.

Nice Presentation?

Another thing that I see and hear repeatedly is problems with a sales presentation.

These complaints include:

  • A one way conversation – like drinking from a firehose
  • Not customized based on knowledge of your needs
  • Generic financials that don’t identify a payoff period
  • Little consideration for your real situation
  • Inaccurate assessment of labor cost savings
  • Ignore additional costs and management requirements
  • Gaps between the presentation and delivered solution
  • Selling the invisible. Either things that don’t work or things that don’t yet exist – and won’t be delivered for months.

Consider whether your presentations exhibit any of these qualities.

What they want to experience

How would most business owners react when their favorite salesperson calls?

This person…

  • Only calls when there’s a win ready for the business owner to invest in.
  • Shows up with a checklist of qualifications that illustrate why the opportunity fits the business.
  • Shows up with testimonials from similar businesses – complete with contact information, so you’re welcome to call them.
  • Has clearly spent time thinking about why they and the opportunity fits the owner’s business.
  • Brings up alternatives and why they ruled them out.
  • Leads their market – not so much in sales as much as vision, crcitical because it carries with it influence and the reputation of a market leader.
  • Thinks about what challenges you face and what they can do to make it possible to overcome them.
  • Brings opportunities that you can implement  that without losing your existing momentum.

Getting buy-in

Think about how many times you’ve had to deal with the situations I described above – both good and bad. How many times have you done this to a prospect? How much trouble was it to make that deal happen, if it happened?

ROI grows as buy-in expands. Remember that everyone views ROI differently.  Next time, we’ll talk about strategies to involve everyone in that conversation so that the buy-in stretches from the main office to the warehouse dock.

When a business owner sees that sort of widespread buy-in, good outcomes are almost sure to follow.