An organisation's culture is an expression of its identity through the words and actions of its people. That expression, as a continual stream of communication via what we say and what we do, is often a mixed bag of messages therefore making culture a challenging issue to grasp and understand.
Some organisations appear to have similar cultures, especially where culture is viewed by an outsider looking in, however, differences exist due to the unique circumstances of each organisation's history involving current and past members.
Those of us who have worked in several businesses know that each organisation is different, and some of us have found out the hard way that some things we were freely allowed to do in one workplace, were frowned upon in another. Some of our learning about culture comes about by us unintentionally coming up against the usual or acceptable ways of doing things, which we may not have been aware of. For example, some workplaces require you to ask permission prior to making any change to a work process, whereas others encourage attempts at improving how work is accomplished.
Organisational culture is an ongoing process whereby relationships between people at work are formed, enacted and shaped through frequent interaction. The effort people make to get along together at work influences the strength of internal and external relationships thereby impacting on how people feel about the work they do and how they feel about others in the workplace.
This means that we can take steps to improve our work situation by deliberately adding positive energy to our work culture. We can do this by firstly, appreciating that our relationships with other people at work are of value to us; and secondly, to make more of an effort to look after our work relationships. This can be achieved by thinking about what we bring to our relationships and looking for small ways to improve. For example, where we find ourselves saying "no" to an invitation to a social get together with work colleagues, we should stop and ask ourselves, "why am I saying no?" Why not say "yes" and go and have a good time?
By taking responsibility for our relationships at work and by expressing ourselves in positive ways we can build the organisational culture that we desire.
Summary
An organisation's culture is an expression of what the organisation is all about as conveyed by the words and actions of its workforce. The shaping of that expression arises from the continual process of interaction between organisational members within the context of day to day business operations. Improvements in an organisation's culture are possible where people are prepared to take small action steps to communicate more effectively and get along better at work.
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Thursday, March 26, 2009
The Top Ten Marketing Mistakes Small Businesses Make
Marketing is critical to the success of every business. Unfortunately, many businesses discount the effect it can have, and they forgo marketing because they believe they can't afford it or simply don't have the time or energy to create a plan. Perhaps this is why a high percentage of small businesses fail. But you don't have to be a statistic when you approach marketing with the importance it deserves. Below you will find some of the most common marketing mistakes businesses make.
Mistake #1: Not Developing a Marketing Plan
Most entrepreneurs or small companies are understandably eager to see a return on the investment of time and money they have made in their business. Ready to start cashing in, they either hit the pavement running or hire a salesperson to do it for them. But a business trying to sell a service or product, without first creating a marketing plan, is much like a marathon runner with no finish line. At first, you may feel like you are moving forward and passing some of your competitors by, but sooner or later you'll find yourself running in circles; frustrated, exhausted and sadly disillusioned by an idea that not too long ago created the exact opposite effect. What is a marketing plan and why create one? Because it's the foundation of your business and it helps you design your product and service, identify your target audience, and provide a roadmap to head you towards your final destination: Success. But equally important, a marketing plan provides the specific details needed to increase visibility, expand your customer base, and provide quantifiable methods to measure your return on investment (ROI).
Mistake #2: Not Planning a Marketing Budget
Most businesses without a marketing plan also lack a marketing budget. And companies without both have the highest rate of failure. After all, would you run your personal life without a budget? If you said yes, you may be one of the unfortunate souls overextended with credit or on the verge of bankruptcy. If you own a small business, this can be avoided by simply creating and living with a well-conceived marketing budget. From the very beginning, and while you are writing your Marketing Plan, it is important to focus on the financial costs of implementation. A general rule of thumb says that at least 10% of your revenue should be designated for your marketing efforts. That means dollars specifically pinpointed for Web site design and maintenance, logo design and brand development, marketing collateral, both print and electronic, and paying someone, if you don't have the time, skills, or desire to do so, to handle all of your Public Relations needs. But make sure when allocating money for marketing that you also have a means for tracking your ROI. If your ROI is low after several months of trying a particular strategy, go back to your marketing plan and look at trying something different. If your ROI is high, stay with what is working, but go back to your plan and budget and accelerate to the next phase.
Mistake #3: Not Targeting a Specific Target Audience
How does the saying go? "You can't be everything to everyone?" When it comes to sales and marketing nothing could be truer. That's why identifying your target market is critical to your success. It is also critical to choosing the appropriate marketing techniques to reach potential customers. If you are selling a woman's product, be women-centric with your marketing, advertising, and PR campaigns. If you offer a service or product for small businesses, stick to small business publications and mailing lists. Targeting Fortune 500 companies is a waste of time and money. They already have established vendors in place. So, don't try to be everything to everyone.
Mistake #4: Not Developing a Clear and Consistent Marketing Message
Messaging is the careful development of the precise and concise language that quickly conveys the key message(s) you want known about your product or organization. In today's competitive landscape if you can't convey these messages quickly and have them resonate, you'll lose your potential customer to someone else. Make sure your message and images recognize your product, so be consistent. The last thing you want is to confuse a potential customer by losing focus on what is really important.
Mistake #5: Believing Your Product or Service will Sell Itself
Many companies make the mistake of thinking that their product or service is so great and so different that they don't need to market it at all. This may make sense to you, but think of all the products and services you use today. Did any of them just find their way to your door simply because they were perfect for you? The reality is people need to be told why they should buy your product or service. They need to be convinced that they can't live without it. And once they have it, you need to provide them with customer service and personalized attention to ensure they will continue to use it. All of these things require marketing. If you have limited funds, start with business cards, a Web site, informational collateral (print or multimedia), an introduction/sales letter, and a customer service/thank you letter. Once things are moving along you can add direct mail postcards, electronic newsletters, video emails or product/service CD brochures to your marketing toolkit. No matter how great your product, don't forget you still need to market it to get it sold.
Mistake #6: Not Clearly Defining Your Product or Services' Benefits
Today's highly competitive marketplace is constantly changing and often consumers are confused about the products and services they purchase. Educating your customer is critical. Defining your product or service benefits is imperative. If you can't put into writing what makes you different from the competition (i.e. local vs. out of state) or, what makes your product or service different from the competition (i.e. organic vs. processed) how can a potential customer make an informed decision to buy. By defining the unique selling proposition for your product/or service you will help your target audience differentiate you from the competition. Isn't that what you need to do to increase your sales?
Mistake #7: Underestimating the Value of Your Existing Customers Most businesses think that the way to increase sales is to focus primarily on new customer acquisition.
Unfortunately, this often means poor customer service to existing customers who, if serviced well, could provide a strong revenue stream to keep your business healthy and strong. And sadly, the lack of good service and communication with an existing customer often means that customer will go elsewhere to find what they need or want. After all, who wants to be taken for granted? If you want to stay in business and grow, you must be sure to turn existing customers into lifetime customers. Call to say thank you. Check in to see if their needs are being met. You might feel like you're wasting your time, or being a pest, but ask any customer who stays loyal to a particular company and you'll always get the same answer: "Good customer service!, it's why I stay and when I don't have it, it's why I leave." Listen and learn!
Mistake #8: Thinking that Advertising is Marketing
Often small businesses confuse advertising with marketing. Asked how they market their product or service they'll explain how they've spent lots of money on advertising but often the results have been poor. From experience, I can almost bet that these same people have also committed Mistake 1 & 2. Advertising is not marketing! It is a piece of marketing, but only a small piece, and with so many ways to get your product or service out in front of potential customers, advertising should only be considered if 1) You have plenty of disposable money to spend on big ads that can run at least five times to increase your odds of being seen. 2) You are pooling your money together with other companies with limited funds to provide a variety of services or products that work together or draw from the same customer base. This is called cooperative advertising and done well; it is the most effective way to get the biggest bang for your buck. Before you spend a dollar on advertising, spend the time needed on a marketing plan and a marketing budget. Both will provide the roadmap and tools for measurement to ensure that advertising is right for you.
Mistake #9: Ignoring the Benefits of Public Relations
Myth, myth, myth!!! Public relations is the most inexpensive and effective way to get the word out to your target market that you have a product or service they need and want. Open any newspaper or magazine, listen to any TV or radio show and you'll find that without small business stories, the press would have a limited amount of content to cover. So how do you become newsworthy? Develop a good story about your business, yourself, your product or service, a customer or your community involvement, and send it out as a press release to the appropriate editors, writers, or newscasters. You might not get a hit every time, but the more press releases you send (once a month is a good start) the better chance you have for peaking interest and eventually a story will be written. You'll be amazed at how much recognition and business will result from getting your business and face in the press.
Mistake #10: Expecting Too Much, Too Soon
Often, someone just starting a new business will get terribly disappointed because they developed a brochure, ran an ad, attended a networking event, or sent out postcards with little response. They get discouraged and lose sight that marketing is really about developing relationships and, like any new relationship; it takes time to build interest and trust. To turn a potential customer into a new customer, you must reach out to them with consistent marketing messages (at least six times...more if you're selling a high-ticket item) before they feel like they "know" and "trust" your company enough to take the risk of purchasing a product or service from you. Remember to stay the course, follow your marketing plan and talk to other businesses that have been down the same path you are on. You'll find there is no such thing as instant success. And if you are really unsure of what you are doing, find a business mentor or hire a marketing professional. You may find that by avoiding the ten biggest mistakes small businesses make, you are on your way to success!
Mistake #1: Not Developing a Marketing Plan
Most entrepreneurs or small companies are understandably eager to see a return on the investment of time and money they have made in their business. Ready to start cashing in, they either hit the pavement running or hire a salesperson to do it for them. But a business trying to sell a service or product, without first creating a marketing plan, is much like a marathon runner with no finish line. At first, you may feel like you are moving forward and passing some of your competitors by, but sooner or later you'll find yourself running in circles; frustrated, exhausted and sadly disillusioned by an idea that not too long ago created the exact opposite effect. What is a marketing plan and why create one? Because it's the foundation of your business and it helps you design your product and service, identify your target audience, and provide a roadmap to head you towards your final destination: Success. But equally important, a marketing plan provides the specific details needed to increase visibility, expand your customer base, and provide quantifiable methods to measure your return on investment (ROI).
Mistake #2: Not Planning a Marketing Budget
Most businesses without a marketing plan also lack a marketing budget. And companies without both have the highest rate of failure. After all, would you run your personal life without a budget? If you said yes, you may be one of the unfortunate souls overextended with credit or on the verge of bankruptcy. If you own a small business, this can be avoided by simply creating and living with a well-conceived marketing budget. From the very beginning, and while you are writing your Marketing Plan, it is important to focus on the financial costs of implementation. A general rule of thumb says that at least 10% of your revenue should be designated for your marketing efforts. That means dollars specifically pinpointed for Web site design and maintenance, logo design and brand development, marketing collateral, both print and electronic, and paying someone, if you don't have the time, skills, or desire to do so, to handle all of your Public Relations needs. But make sure when allocating money for marketing that you also have a means for tracking your ROI. If your ROI is low after several months of trying a particular strategy, go back to your marketing plan and look at trying something different. If your ROI is high, stay with what is working, but go back to your plan and budget and accelerate to the next phase.
Mistake #3: Not Targeting a Specific Target Audience
How does the saying go? "You can't be everything to everyone?" When it comes to sales and marketing nothing could be truer. That's why identifying your target market is critical to your success. It is also critical to choosing the appropriate marketing techniques to reach potential customers. If you are selling a woman's product, be women-centric with your marketing, advertising, and PR campaigns. If you offer a service or product for small businesses, stick to small business publications and mailing lists. Targeting Fortune 500 companies is a waste of time and money. They already have established vendors in place. So, don't try to be everything to everyone.
Mistake #4: Not Developing a Clear and Consistent Marketing Message
Messaging is the careful development of the precise and concise language that quickly conveys the key message(s) you want known about your product or organization. In today's competitive landscape if you can't convey these messages quickly and have them resonate, you'll lose your potential customer to someone else. Make sure your message and images recognize your product, so be consistent. The last thing you want is to confuse a potential customer by losing focus on what is really important.
Mistake #5: Believing Your Product or Service will Sell Itself
Many companies make the mistake of thinking that their product or service is so great and so different that they don't need to market it at all. This may make sense to you, but think of all the products and services you use today. Did any of them just find their way to your door simply because they were perfect for you? The reality is people need to be told why they should buy your product or service. They need to be convinced that they can't live without it. And once they have it, you need to provide them with customer service and personalized attention to ensure they will continue to use it. All of these things require marketing. If you have limited funds, start with business cards, a Web site, informational collateral (print or multimedia), an introduction/sales letter, and a customer service/thank you letter. Once things are moving along you can add direct mail postcards, electronic newsletters, video emails or product/service CD brochures to your marketing toolkit. No matter how great your product, don't forget you still need to market it to get it sold.
Mistake #6: Not Clearly Defining Your Product or Services' Benefits
Today's highly competitive marketplace is constantly changing and often consumers are confused about the products and services they purchase. Educating your customer is critical. Defining your product or service benefits is imperative. If you can't put into writing what makes you different from the competition (i.e. local vs. out of state) or, what makes your product or service different from the competition (i.e. organic vs. processed) how can a potential customer make an informed decision to buy. By defining the unique selling proposition for your product/or service you will help your target audience differentiate you from the competition. Isn't that what you need to do to increase your sales?
Mistake #7: Underestimating the Value of Your Existing Customers Most businesses think that the way to increase sales is to focus primarily on new customer acquisition.
Unfortunately, this often means poor customer service to existing customers who, if serviced well, could provide a strong revenue stream to keep your business healthy and strong. And sadly, the lack of good service and communication with an existing customer often means that customer will go elsewhere to find what they need or want. After all, who wants to be taken for granted? If you want to stay in business and grow, you must be sure to turn existing customers into lifetime customers. Call to say thank you. Check in to see if their needs are being met. You might feel like you're wasting your time, or being a pest, but ask any customer who stays loyal to a particular company and you'll always get the same answer: "Good customer service!, it's why I stay and when I don't have it, it's why I leave." Listen and learn!
Mistake #8: Thinking that Advertising is Marketing
Often small businesses confuse advertising with marketing. Asked how they market their product or service they'll explain how they've spent lots of money on advertising but often the results have been poor. From experience, I can almost bet that these same people have also committed Mistake 1 & 2. Advertising is not marketing! It is a piece of marketing, but only a small piece, and with so many ways to get your product or service out in front of potential customers, advertising should only be considered if 1) You have plenty of disposable money to spend on big ads that can run at least five times to increase your odds of being seen. 2) You are pooling your money together with other companies with limited funds to provide a variety of services or products that work together or draw from the same customer base. This is called cooperative advertising and done well; it is the most effective way to get the biggest bang for your buck. Before you spend a dollar on advertising, spend the time needed on a marketing plan and a marketing budget. Both will provide the roadmap and tools for measurement to ensure that advertising is right for you.
Mistake #9: Ignoring the Benefits of Public Relations
Myth, myth, myth!!! Public relations is the most inexpensive and effective way to get the word out to your target market that you have a product or service they need and want. Open any newspaper or magazine, listen to any TV or radio show and you'll find that without small business stories, the press would have a limited amount of content to cover. So how do you become newsworthy? Develop a good story about your business, yourself, your product or service, a customer or your community involvement, and send it out as a press release to the appropriate editors, writers, or newscasters. You might not get a hit every time, but the more press releases you send (once a month is a good start) the better chance you have for peaking interest and eventually a story will be written. You'll be amazed at how much recognition and business will result from getting your business and face in the press.
Mistake #10: Expecting Too Much, Too Soon
Often, someone just starting a new business will get terribly disappointed because they developed a brochure, ran an ad, attended a networking event, or sent out postcards with little response. They get discouraged and lose sight that marketing is really about developing relationships and, like any new relationship; it takes time to build interest and trust. To turn a potential customer into a new customer, you must reach out to them with consistent marketing messages (at least six times...more if you're selling a high-ticket item) before they feel like they "know" and "trust" your company enough to take the risk of purchasing a product or service from you. Remember to stay the course, follow your marketing plan and talk to other businesses that have been down the same path you are on. You'll find there is no such thing as instant success. And if you are really unsure of what you are doing, find a business mentor or hire a marketing professional. You may find that by avoiding the ten biggest mistakes small businesses make, you are on your way to success!
Friday, March 20, 2009
Why Use Telemarketing in Your Business?
For sure one of the feared marketing concepts is the one from a telemarketing service. Telemarketing can easily be pictured as a sales representative sitting for a 5-8 hour regimen on a daily basis calling the company owners marketing list of subscribers and exploiting its potential profits to its maximum levels.
In a social spectrum, telemarketing is considered a complete annoyance to many consumers. The realistic fact of having someone interrupt you when you are cooking or eating a meal with your family doesn't ring a nice bell from a customer standpoint. However, from an entrepreneurial point of view, it is one of the important steps once a successful business man has achieved certain levels in his company.
In the 1950's some people believe that DialAmerica Marketing, Inc. became the pioneer leader in inbound and outbound direct sales and services through telephone business offerings with prospects. The company later on was sold by Time, Inc magazine and in 1976 the company became the largest leader in sales and services through marketing by phone.
It is then assumed by those in the know how that the word telemarketing was first established, thanks to the modification and effect prior companies of decades ago brought into history. Telemarketing is still promoted heavily in the United States, Caribbean, and many international countries, and while annoying to many people - it is statistically one of the most effective mechanisms to market and profit.
It is important to note that people selected for such duties today in the 21st century must be adequately trained to perform such duties. People who don't carry above average skills in the sales business are unlikely to achieve great success in telemarketing. A telemarketer not only sells your brand and product, it gives a meaning to your image as a business owner and person. It is very important to only have staff that is entirely competent and trained to perform such selling duties in today's marketing economy.
Without the correct telemarketing agent your business and your finances could take a drastic plunge. Most importantly, being the business owner shouldn't allow you time to induce telemarketing practices. If you are thinking about telemarketing for your company, having your own staff to perform such duties is not only recommended, it is empirical for times' sake.
A business owner and entrepreneur should worry about getting a fresh marketing list of prospects to call and the adequate company to actually purchase the leads. There are usually enough people locally and that can even be outsourced online to perform such telemarketing tasks. One point to consider, if you are not able to find a telemarketing service that satisfies your company's needs, consider investing in a system that teaches you a step by step process on how to build your own profitable list of prospects.
In the meantime, as an entrepreneur, be sure to have a fresh marketing list of prospects to call. Be sure to have the adequate training if you are going to take the step of trying telemarketing to acquire your list of subscribers. But most importantly when it comes to acquiring leads to telemarketing success, make sure you download the correct list of leads and that the company you have in mind actually delivers on your needs.
In a social spectrum, telemarketing is considered a complete annoyance to many consumers. The realistic fact of having someone interrupt you when you are cooking or eating a meal with your family doesn't ring a nice bell from a customer standpoint. However, from an entrepreneurial point of view, it is one of the important steps once a successful business man has achieved certain levels in his company.
In the 1950's some people believe that DialAmerica Marketing, Inc. became the pioneer leader in inbound and outbound direct sales and services through telephone business offerings with prospects. The company later on was sold by Time, Inc magazine and in 1976 the company became the largest leader in sales and services through marketing by phone.
It is then assumed by those in the know how that the word telemarketing was first established, thanks to the modification and effect prior companies of decades ago brought into history. Telemarketing is still promoted heavily in the United States, Caribbean, and many international countries, and while annoying to many people - it is statistically one of the most effective mechanisms to market and profit.
It is important to note that people selected for such duties today in the 21st century must be adequately trained to perform such duties. People who don't carry above average skills in the sales business are unlikely to achieve great success in telemarketing. A telemarketer not only sells your brand and product, it gives a meaning to your image as a business owner and person. It is very important to only have staff that is entirely competent and trained to perform such selling duties in today's marketing economy.
Without the correct telemarketing agent your business and your finances could take a drastic plunge. Most importantly, being the business owner shouldn't allow you time to induce telemarketing practices. If you are thinking about telemarketing for your company, having your own staff to perform such duties is not only recommended, it is empirical for times' sake.
A business owner and entrepreneur should worry about getting a fresh marketing list of prospects to call and the adequate company to actually purchase the leads. There are usually enough people locally and that can even be outsourced online to perform such telemarketing tasks. One point to consider, if you are not able to find a telemarketing service that satisfies your company's needs, consider investing in a system that teaches you a step by step process on how to build your own profitable list of prospects.
In the meantime, as an entrepreneur, be sure to have a fresh marketing list of prospects to call. Be sure to have the adequate training if you are going to take the step of trying telemarketing to acquire your list of subscribers. But most importantly when it comes to acquiring leads to telemarketing success, make sure you download the correct list of leads and that the company you have in mind actually delivers on your needs.
Monday, March 16, 2009
How Group Games Can Help With Team Building
Team building group games are very effective at breaking the ice between new teams, endearing members to each and creating a family unit, and motivating members to give their best efforts for the team.
Games For Large Groups
One team building game for large groups is known as Team Skipping which accommodates large groups, usually twenty or more. The manager splits the group into five or more teams and then gives each team a piece of rope. Each team is given a series of skipping exercises with two team members holding the ripe and other members skipping. Caution should be used in all physical games when planning safety procedures.
Unless your team is directly affiliated with sports however, it's likely that your team building plans will lean towards a more intellectual challenge. Some physical games, even traditional sports like company sponsored baseball, tennis or football games, are effective ways to teach team cooperation and motivation. But word games and logic games not only build team spirit and mutual respect, they can also teach company policy and can be effective activities for managerial study.
An Example Of A Logic Group Game
One easy but fun intellectual challenge is Point and Counterpoint (or called many different things when adapted for circumstances). This is not always labeled as a game though it is a stimulating activity, as motivational as it is fun. In the exercise two teams compete against each other, both teams with a slanted message in direct conflict with the other. The subject could be company or business oriented or could be a funny issue, such as I Hate Christmas and I Love Christmas. After selecting the topic for point and counterpoint, both teams will work together to prepare a case supporting their point; one team would present why Christmas is an awful holiday and the other team would present why it's a great holiday.
Usually the team manager allows the group to organize its own teams, though for strategic purposes he or she might directly assign teams and captains. The larger the group, the more teams are created, possibly under the direction of the lead team who is organizing all of the pros and cons of their point. This game is flexible to practically any situation and offers plenty of interaction. Time limits are set to about 5 to 15 minutes for presentations.
How do you decide the winning team or more important point or counterpoint? Usually a secret ballot works, which produces better results since the votes cannot be changed and remain anonymous. The manager advises teams that the winner should be the team that presented the best arguments supporting their point. It's comparable to a court trial case, and may actually be adapted for use in that context.
Games For Large Groups
One team building game for large groups is known as Team Skipping which accommodates large groups, usually twenty or more. The manager splits the group into five or more teams and then gives each team a piece of rope. Each team is given a series of skipping exercises with two team members holding the ripe and other members skipping. Caution should be used in all physical games when planning safety procedures.
Unless your team is directly affiliated with sports however, it's likely that your team building plans will lean towards a more intellectual challenge. Some physical games, even traditional sports like company sponsored baseball, tennis or football games, are effective ways to teach team cooperation and motivation. But word games and logic games not only build team spirit and mutual respect, they can also teach company policy and can be effective activities for managerial study.
An Example Of A Logic Group Game
One easy but fun intellectual challenge is Point and Counterpoint (or called many different things when adapted for circumstances). This is not always labeled as a game though it is a stimulating activity, as motivational as it is fun. In the exercise two teams compete against each other, both teams with a slanted message in direct conflict with the other. The subject could be company or business oriented or could be a funny issue, such as I Hate Christmas and I Love Christmas. After selecting the topic for point and counterpoint, both teams will work together to prepare a case supporting their point; one team would present why Christmas is an awful holiday and the other team would present why it's a great holiday.
Usually the team manager allows the group to organize its own teams, though for strategic purposes he or she might directly assign teams and captains. The larger the group, the more teams are created, possibly under the direction of the lead team who is organizing all of the pros and cons of their point. This game is flexible to practically any situation and offers plenty of interaction. Time limits are set to about 5 to 15 minutes for presentations.
How do you decide the winning team or more important point or counterpoint? Usually a secret ballot works, which produces better results since the votes cannot be changed and remain anonymous. The manager advises teams that the winner should be the team that presented the best arguments supporting their point. It's comparable to a court trial case, and may actually be adapted for use in that context.
Friday, March 13, 2009
Fail in This Recession
There are not enough best practices on how to compensate sales and business development professionals. Setting effective sales compensation has been a moving target since the first sale of anything ever happened! How do companies balance their need for more sales against the motivations and drivers of their sales and business development people in order to get what everyone wants?
You won't get the silver bullet in this post (because there isn't one), however, here is an approach worth sharing. Part of the problem is that the One-Size-Fits-All-Sales-People Compensation Program that many companies adopt creates that moving target that makes sales managers crazy. If the "one size fits all" doesn't work, then a more flexible structure should be explored. A sales compensation system should be based on two things (HR and accounting folks will cringe because this will require more work for them):
Strengths of each sales/business development professional
The specific business development activities they accomplish Bear with me on this one. This approach is based on the very fact that everyone has both strengths and weaknesses. Some sales and business development people are excellent at building relationships, others at qualifying leads and others at closing the deal. What if a company would pay their sales people to do more of what each sales person is good at?
First look at the many specific activities included in your overall Business Development Function. It's those activities that are needed to complete the "race" to more revenue. Each one of these activities is worth something to an organization. Perhaps the organization places a high value on information and intelligence collected on prospects. The test on how to gauge the value a company places on information is to watch how comfortable or uncomfortable management feels when sales people leave with all the data they collected on prospects while on company time. Most sales managers are angry when their sales people leave with contacts of prospects. That's because that data is worth something.
On the other hand, an organization might not care as much for the contact data or even for relationships that have been built by the sales professionals but just wants the revenue numbers to grow. Period. In every case, the compensation structure for each sales professional could be built around the specifics of what management truly values. Those specifics would then be married to the strengths of their sales force. Different compensation programs for different strengths.
You won't get the silver bullet in this post (because there isn't one), however, here is an approach worth sharing. Part of the problem is that the One-Size-Fits-All-Sales-People Compensation Program that many companies adopt creates that moving target that makes sales managers crazy. If the "one size fits all" doesn't work, then a more flexible structure should be explored. A sales compensation system should be based on two things (HR and accounting folks will cringe because this will require more work for them):
Strengths of each sales/business development professional
The specific business development activities they accomplish Bear with me on this one. This approach is based on the very fact that everyone has both strengths and weaknesses. Some sales and business development people are excellent at building relationships, others at qualifying leads and others at closing the deal. What if a company would pay their sales people to do more of what each sales person is good at?
First look at the many specific activities included in your overall Business Development Function. It's those activities that are needed to complete the "race" to more revenue. Each one of these activities is worth something to an organization. Perhaps the organization places a high value on information and intelligence collected on prospects. The test on how to gauge the value a company places on information is to watch how comfortable or uncomfortable management feels when sales people leave with all the data they collected on prospects while on company time. Most sales managers are angry when their sales people leave with contacts of prospects. That's because that data is worth something.
On the other hand, an organization might not care as much for the contact data or even for relationships that have been built by the sales professionals but just wants the revenue numbers to grow. Period. In every case, the compensation structure for each sales professional could be built around the specifics of what management truly values. Those specifics would then be married to the strengths of their sales force. Different compensation programs for different strengths.
Thursday, March 12, 2009
Are Trade Shows Really Worth It?
I've been hearing some buzz about trade shows lately. I've heard many entrepreneurs and small business people saying they just don't get their money's worth out off the shows they've attended.
They talk about not meeting anyone and about people just grabbing their give-aways' and leaving. They've been talking about prices and traffic.
So the question is: Are trade shows really worth it?
The easy answer is "Sure!" But I think a little explanation is in order. Not every trade show is the right one. There are things to consider when choosing and planning the right show for your business or organization.
I'd like to share with you some best practices I've learned along the way.
• Choose the trade shows that are most likely to help you grow your business. Look at who the other vendors will be. What kind of a crowd is the show going to draw?
If you have some interest, send for information early.
• Read the information you receive for each show carefully. What does the cost include? How large is the venue? Are they offering seminars? If you have questions not addressed in the information given, contact the trade show company to get your questions addressed.
Your budget may limit you to attending only one trade show so choose wisely. Take advantage of early registration discounts.
• Location of your booth is an important strategy to gain high visibility. You want your booth to be in a high traffic area but not where traffic is bottlenecked, such as at the entrance to the facility.
• Plan and practice. If you have a portable trade show backdrop or display, practice setting it up and taking it down a few times before the day of the show. Plan what you will bring to the show and have it ready to go two days in advance. Last minute run around adds anxiety!
• Bring an emergency kit. An extra roil of tape, thumbtacks, tape, scissors, paperclips, elastics, markers and pens are crucial office supplies to remember.
• In addition, don't forget a small first aid kit, antiseptic hand wash, tissues, small sewing kit and an extra pair of panty hose if you're wearing a skirt
• Many exhibitors forget this important pre-show task: Create a press kit and get it to the press department of the show ASAP. Ask in advance for introductions to radio, newspaper and TV representatives.
• Arrive early and get set up. You might be able to lend a hand to someone else who is setting up. Great opportunity to meet someone new and start a conversation!
• Watch your give-always. Some people actually come to trade shows to play "trick or treat". They gather up all the goodies they can and leave.
Save your goodies for true prospects and keep them behind the booth. Put a variety of candy in bowls for the masses.
• Think about distributing postcards instead of brochures. They're cheaper to make and less bulky to carry.
You can either bring a few brochures with you for true prospects, or tell the prospect you'd like to mail them one as soon as you return to the office. This is a perfect way to follow-up with them.
• Be sure you bring at least one additional person with you to the show. You'll need to take turns working the booth and visiting the other exhibitor booths.
• Dress appropriately. I always suggest wearing a suit or pants and a jacket with two pockets. Why two pockets? I put my business cards to give in one pocket and the cards I receive in the other. I then send a personal note to each person whose card I received.
• Make sure the people you bring with you are vivacious, positive, know your product and are comfortable talking to people.
• Bring three times the business cards you think you'll need.
• Plan to attend at least one seminar and any group meas. Many trade shows give a buffet lunch for vendors.
Talk to as many people in seminars and in the food line or vendors lounge as possible. You never know who will turn out to be a great contact.
As well as being hard work, trade shows can be fun. Relax. Smile. Offer information to all that ask. Don't pre-judge. Don't get caught talking to your booth partner while people are visiting your booth. Don't chew gum! Follow up on each card you receive with a personal note within 48 hours.
If you plan well and make a commitment to talk to as many people as possible, you'll find your time well spent. Once you get familiar with how to work a trade show and how to pick a trade show that is appropriate for your business, they will become more worth your time and dollars.
They talk about not meeting anyone and about people just grabbing their give-aways' and leaving. They've been talking about prices and traffic.
So the question is: Are trade shows really worth it?
The easy answer is "Sure!" But I think a little explanation is in order. Not every trade show is the right one. There are things to consider when choosing and planning the right show for your business or organization.
I'd like to share with you some best practices I've learned along the way.
• Choose the trade shows that are most likely to help you grow your business. Look at who the other vendors will be. What kind of a crowd is the show going to draw?
If you have some interest, send for information early.
• Read the information you receive for each show carefully. What does the cost include? How large is the venue? Are they offering seminars? If you have questions not addressed in the information given, contact the trade show company to get your questions addressed.
Your budget may limit you to attending only one trade show so choose wisely. Take advantage of early registration discounts.
• Location of your booth is an important strategy to gain high visibility. You want your booth to be in a high traffic area but not where traffic is bottlenecked, such as at the entrance to the facility.
• Plan and practice. If you have a portable trade show backdrop or display, practice setting it up and taking it down a few times before the day of the show. Plan what you will bring to the show and have it ready to go two days in advance. Last minute run around adds anxiety!
• Bring an emergency kit. An extra roil of tape, thumbtacks, tape, scissors, paperclips, elastics, markers and pens are crucial office supplies to remember.
• In addition, don't forget a small first aid kit, antiseptic hand wash, tissues, small sewing kit and an extra pair of panty hose if you're wearing a skirt
• Many exhibitors forget this important pre-show task: Create a press kit and get it to the press department of the show ASAP. Ask in advance for introductions to radio, newspaper and TV representatives.
• Arrive early and get set up. You might be able to lend a hand to someone else who is setting up. Great opportunity to meet someone new and start a conversation!
• Watch your give-always. Some people actually come to trade shows to play "trick or treat". They gather up all the goodies they can and leave.
Save your goodies for true prospects and keep them behind the booth. Put a variety of candy in bowls for the masses.
• Think about distributing postcards instead of brochures. They're cheaper to make and less bulky to carry.
You can either bring a few brochures with you for true prospects, or tell the prospect you'd like to mail them one as soon as you return to the office. This is a perfect way to follow-up with them.
• Be sure you bring at least one additional person with you to the show. You'll need to take turns working the booth and visiting the other exhibitor booths.
• Dress appropriately. I always suggest wearing a suit or pants and a jacket with two pockets. Why two pockets? I put my business cards to give in one pocket and the cards I receive in the other. I then send a personal note to each person whose card I received.
• Make sure the people you bring with you are vivacious, positive, know your product and are comfortable talking to people.
• Bring three times the business cards you think you'll need.
• Plan to attend at least one seminar and any group meas. Many trade shows give a buffet lunch for vendors.
Talk to as many people in seminars and in the food line or vendors lounge as possible. You never know who will turn out to be a great contact.
As well as being hard work, trade shows can be fun. Relax. Smile. Offer information to all that ask. Don't pre-judge. Don't get caught talking to your booth partner while people are visiting your booth. Don't chew gum! Follow up on each card you receive with a personal note within 48 hours.
If you plan well and make a commitment to talk to as many people as possible, you'll find your time well spent. Once you get familiar with how to work a trade show and how to pick a trade show that is appropriate for your business, they will become more worth your time and dollars.
Wednesday, March 11, 2009
Web-Based Employee Training Provides Cost-Effective Solution During Recession
With the current state of the US economy including financial bailouts from the federal government, stock market plummeting, and high unemployment rates, the pressure on businesses to be more productive with less resources has skyrocketed. Operating more efficiently and cost-effectively has become the current corporate mantra.
During this volatile economic situation, more businesses are faced with the challenges of maximizing employee performance and increased productivity. One way in which businesses can achieve operational excellence while continuing to cut costs is to invest in web-based employee development and training.
This current trend in e-learning continues to defy the challenges facing corporate America today. Through the continual investment in employee development, businesses are able to accelerate business growth and differentiate themselves from the competition.
How can investing in Web-based learning for employees contribute to a company's bottom line? Web-based learning provides employees the opportunity to enhance their core skills and competencies while providing employers with a cost-effective means to improving employee productivity. With Web-based learning programs, employees are able to take courses in the convenience of their office or home - resulting in minimal loss of productivity, money saved in travel, time out of the office and more.
Perhaps the most important benefit for businesses is Web-based learning provides employees the opportunity to learn in a more productive manner while enabling them to begin contributing to the productivity and profitability of the business in a faster method over traditional learning. New hires are now capable of contributing to a company's bottom line in a more concise manner.
When searching for an online learning resource, be sure to look for one that provides an interactive, real time learning atmosphere. This type of learning allows learners to interact directly with the instructors for a more enhanced learning experience.
During this volatile economic situation, more businesses are faced with the challenges of maximizing employee performance and increased productivity. One way in which businesses can achieve operational excellence while continuing to cut costs is to invest in web-based employee development and training.
This current trend in e-learning continues to defy the challenges facing corporate America today. Through the continual investment in employee development, businesses are able to accelerate business growth and differentiate themselves from the competition.
How can investing in Web-based learning for employees contribute to a company's bottom line? Web-based learning provides employees the opportunity to enhance their core skills and competencies while providing employers with a cost-effective means to improving employee productivity. With Web-based learning programs, employees are able to take courses in the convenience of their office or home - resulting in minimal loss of productivity, money saved in travel, time out of the office and more.
Perhaps the most important benefit for businesses is Web-based learning provides employees the opportunity to learn in a more productive manner while enabling them to begin contributing to the productivity and profitability of the business in a faster method over traditional learning. New hires are now capable of contributing to a company's bottom line in a more concise manner.
When searching for an online learning resource, be sure to look for one that provides an interactive, real time learning atmosphere. This type of learning allows learners to interact directly with the instructors for a more enhanced learning experience.
Friday, March 6, 2009
Marketing Tips For Businesses Who Want to Boom During 2009
Well, here we are - on the doorstep of 2009. But before you open that door, I want to give you one of the most important marketing tips you can have.
A tip that can make you stick out head and shoulders from the crowd in '09 - especially when the "band aids" on the economy peel off and reveal the gooey, puss-infected wounds underneath.
Anyway, here it is:
Focus on getting customers instead buyers.
I first learned this in a short, $20 book called "The System Letters" by Ken McCarthy.
And it's one of the single most important business lessons I have ever heard - that radically changed the way I do business.
Why?
What's the big deal?
Well, think about it this way:
A BUYER is someone who buys ONE time.
He MIGHT buy again some day.
But usually, he buys one time and then moves on to the next bigger and better thing.
A CUSTOMER, on the other hand... makes it a "custom" to buy from you over and over and over.
So instead of a one-time sale, he buys from you multiple times - years into the future.
Plus, many of these extra sales are practically handed to you on a silver platter because of all the trust, and respect and loyalty they have for you.
I call it "selling in advance."
And it's by FAR the easiest and most reliable way to sell.
Because even if your sales pitch sucks or you break all the "rules" of copywriting, selling and marketing, it won't matter.
They aren't buying the "thing."
They are buying YOU.
The mere fact YOU are offering it is good enough for them.
It's the ultimate form of positioning.
And it lets even total "newbies" take market share quickly.
Anyway, I'm no prophet.
Heck, I'm not even a "Miss Cleo."
But I stand behind this prediction for 2009 and beyond:
The few (and there aren't many) marketers who go after "customers"... instead of "buyers"... will prosper BIG TIME.
They will have FAR more peace of mind and financial security as the economy explodes and most businesses start running around like be-headed chickens
A tip that can make you stick out head and shoulders from the crowd in '09 - especially when the "band aids" on the economy peel off and reveal the gooey, puss-infected wounds underneath.
Anyway, here it is:
Focus on getting customers instead buyers.
I first learned this in a short, $20 book called "The System Letters" by Ken McCarthy.
And it's one of the single most important business lessons I have ever heard - that radically changed the way I do business.
Why?
What's the big deal?
Well, think about it this way:
A BUYER is someone who buys ONE time.
He MIGHT buy again some day.
But usually, he buys one time and then moves on to the next bigger and better thing.
A CUSTOMER, on the other hand... makes it a "custom" to buy from you over and over and over.
So instead of a one-time sale, he buys from you multiple times - years into the future.
Plus, many of these extra sales are practically handed to you on a silver platter because of all the trust, and respect and loyalty they have for you.
I call it "selling in advance."
And it's by FAR the easiest and most reliable way to sell.
Because even if your sales pitch sucks or you break all the "rules" of copywriting, selling and marketing, it won't matter.
They aren't buying the "thing."
They are buying YOU.
The mere fact YOU are offering it is good enough for them.
It's the ultimate form of positioning.
And it lets even total "newbies" take market share quickly.
Anyway, I'm no prophet.
Heck, I'm not even a "Miss Cleo."
But I stand behind this prediction for 2009 and beyond:
The few (and there aren't many) marketers who go after "customers"... instead of "buyers"... will prosper BIG TIME.
They will have FAR more peace of mind and financial security as the economy explodes and most businesses start running around like be-headed chickens
How to Market Online For a Real Estate Business
Before you go out making huge sums of money, you have to remember to keep yourself up-to-date with the latest news and developments in the market. You have to brace the losses and gains and try to see the reason and the various forces at work in the market which determine the success of your business.
You have to know one little thing: in real life, Mr. Scrooge's lucky $10 coin does not exist. Sure, luck will work its charm and you will not be sure where you are headed, but you will also have to fiddle with your brain to find the solutions to the problems that arise. But before solving and locating the way through the hurdles, you will have to see the root from where such troubles arise.
If you are in the real estate business, and are rather groaning in your nightmares because the numbers of deals on your desk have petered out, it is time that you decided to put an end to your trouble times. But to do that you will have to note down the reasons, and no matter how many sleuths you put to work to identify the problem, you will find that it is the marketing that is always at fault.
Marketing is the key issue in any business, and this is how you are able to spread your grip on the market. Marketing is the best way to advertise for your work, and this way, people will end up trusting you and so deals would inevitably come flooding in.
The cyber world merges with our reality in daily events and situations. The world online is so powerful in its influence that it is impossible to ignore it completely, unless you lived like the monks in some remote parts of the country. All the realtors and investors have realized the power and advantages of online marketing, and you need to do so too.
If you are a complete novice in the world online, there is no need to worry. You can follow all the guidelines that you can afford to get to learn the techniques that you will need to use in online marketing. Almost 99% of the marketing should be done online, since nowhere else can you ever get a better ROI on marketing than on net.
There are many real estate forum websites that you should look out for while marketing. There are many such basic sites, but you will have to settle with only the best ones. Good real estate forum websites must allow you an adequate amount of peek into the interest rates, the hot spots in the market community, the average home prices and also all the options to post your ads and comments regarding your work. Soon enough, there will be responses, and you will be flooded with deals!
You have to keep communications open with the realtors with whom you have done business in the past. They will store your name in their database and will keep on sending you mails to inform you the right time to sell or buy a house. The websites will also offer you the information regarding how to actually sell or buy a house, and the rules that you must follow while doing it.
Another big issue that will leave you blue is the lack of money. If you are a self-employed real estate contractor, you will have to pay up from your own pockets. Moreover, the national publications which are published online will charge you a lot of money for mentioning your business in their pages. But you can also sift through the net and locate the small publications which will charge you moderately. This way, you can save your budget.
It is really not very hard to be successful in your business. The key point is communication. You will have to keep really good contacts, and then gather enough information from around as well. This way, you will be able to use good tactics to keep you business thriving!
You have to know one little thing: in real life, Mr. Scrooge's lucky $10 coin does not exist. Sure, luck will work its charm and you will not be sure where you are headed, but you will also have to fiddle with your brain to find the solutions to the problems that arise. But before solving and locating the way through the hurdles, you will have to see the root from where such troubles arise.
If you are in the real estate business, and are rather groaning in your nightmares because the numbers of deals on your desk have petered out, it is time that you decided to put an end to your trouble times. But to do that you will have to note down the reasons, and no matter how many sleuths you put to work to identify the problem, you will find that it is the marketing that is always at fault.
Marketing is the key issue in any business, and this is how you are able to spread your grip on the market. Marketing is the best way to advertise for your work, and this way, people will end up trusting you and so deals would inevitably come flooding in.
The cyber world merges with our reality in daily events and situations. The world online is so powerful in its influence that it is impossible to ignore it completely, unless you lived like the monks in some remote parts of the country. All the realtors and investors have realized the power and advantages of online marketing, and you need to do so too.
If you are a complete novice in the world online, there is no need to worry. You can follow all the guidelines that you can afford to get to learn the techniques that you will need to use in online marketing. Almost 99% of the marketing should be done online, since nowhere else can you ever get a better ROI on marketing than on net.
There are many real estate forum websites that you should look out for while marketing. There are many such basic sites, but you will have to settle with only the best ones. Good real estate forum websites must allow you an adequate amount of peek into the interest rates, the hot spots in the market community, the average home prices and also all the options to post your ads and comments regarding your work. Soon enough, there will be responses, and you will be flooded with deals!
You have to keep communications open with the realtors with whom you have done business in the past. They will store your name in their database and will keep on sending you mails to inform you the right time to sell or buy a house. The websites will also offer you the information regarding how to actually sell or buy a house, and the rules that you must follow while doing it.
Another big issue that will leave you blue is the lack of money. If you are a self-employed real estate contractor, you will have to pay up from your own pockets. Moreover, the national publications which are published online will charge you a lot of money for mentioning your business in their pages. But you can also sift through the net and locate the small publications which will charge you moderately. This way, you can save your budget.
It is really not very hard to be successful in your business. The key point is communication. You will have to keep really good contacts, and then gather enough information from around as well. This way, you will be able to use good tactics to keep you business thriving!
Wednesday, March 4, 2009
Sales Management - High Yield Sales Territory Management - Prospecting Efficiently
"You've Got the Order." The words we love to hear. They're Priceless!!
Everyone wants more sales. So here's how. Manage your sales territory better. Bring in more prospects. Improve closing ratios, or do both.
Now increasing closing ratios is by far the easiest if you; 1. Go after the right prospects and opportunities, and 2. Go after the right prospects and opportunities.
Probability and Process
Any successful person learns process and probability - business person, athlete, gambler, sales person, etc. Process -- What's the strategy; what's the game plan; what's the method/system/...? Probability - Based on conditions presented, what action has the best probability of success?
Let's apply this to closing ratios or going after the right prospects and opportunities.
Here are the probabilities for making sales:
• Existing Customers - Existing Products/Services - 67% • Existing Customers - New Products and Services - 50%, (80% if they helped develop it with you) • Old or Lost Customers - 40% Existing Products/Services • Old or Lost Customers - 25% New Products/Services • New Customers - Existing Products/Services - 25% • New Customers - New Products/Services - 5%
This tells you how to manage your sales territory. That is, spend more time prospecting with existing customers. To be more exact, spend 50% of selling time with existing customers, 30% with old or lost customers and 20% with new or competitors' customers. Readjust your time allocations to the above and watch your closing rates go up. That was easy - wasn't it.
Now let's talk process for selecting prospects and opportunities
Sales Territory Management Starts with Building Your Opportunity Matrix
1. Using an Excel chart, list who buys, and what, and who doesn't buy. Enter all existing clients (and their divisions and locations) down the left column. Across the top row, list all the products and services you sell. Include new or potential products as well. Use categories if there are many products. Check off with a "+" the products/services existing customers buy and note your percentage if they also buy the same from competitors. Leave blank (for now) all the services and products they don't buy from you, but could. Indicate with an N/A's those boxes that don't apply or fit at all. Don't use dollars or quantities. You just want a simple visual.
2. Now list all the old customers. Here the rows will be empty. Make a note of what they use to buy from you with XX's. Then list competitors' customers. Note what they buy from the competitor with YY's, and things they don't buy from anyone, but could, or do it themselves. Finally list those that do everything themselves or you're not aware who/if they buy from.
This is your Sales Territory Management Opportunity Matrix - a visual of all the sales you could theoretically be making.
3. Now identify each opportunity by chance of them needing it - Way Out There (M1) to Out There (M2) to Likely Candidate (M3) to They Showed Interest (M4) - these are the marketing phases. Once a prospect gives you a good verbal indication there will be a purchase, prioritize into the selling phases - Qualify (Q), Proposal (P), Close (C). Fill in the Opportunity Matrix with the appropriate abbreviation.
Create this Matrix with your Customer Service/Engineering/Tech Support/Operations people. These people usually know more or have easier access to the client's people than the sales person. They can be a wealth of information about what going on inside your clients' organizations. Later they can be a great network for introductions to high level people. Managers should thoroughly review this at least twice a year, but sales people should update it monthly.
4. Now Build Your Sales Territory Management Action Plans
Your first mandated action is to keep the existing business. This is where my book - TAKE ME TO YOUR LEADER$ will help. It shows the actions needed to develop the relationships and leverage to retain and grow existing volume, as well as, get their other opportunities you don't have.
5. Now look at all the other accounts you don't have in the rest of the region. It's overwhelming I'll bet. So start prioritizing based on the statistics above. Note how much business is available from existing customers, either the competitors' share, or services they do themselves that you could sell. Then look at the rest. This visual with be very revealing and motivate you to prospect.
Knowing the inventory of sales opportunities will give you a handle on growth. You can now build action plans for keeping existing business and capturing other potential opportunities. Cover every opportunity in every marketing/selling phase. The farther down toward the sale the more energy/time you should allocate.
For example with a new customer you may want to do a low cost mailing campaign - minimal energy. For a competitor's customer, you may want to do some phone research to find the right people and then contact them (phone or in person) to learn their likes and dislikes of the competitors. For existing customers you should be spreading through that organization like a virus, meeting all the people impacted by your products/services, especially all the senior managers to learn likes/dislikes, issues, opportunities - high energy.
6. Now assign an action to every opportunity, even the 5 %'ers, and a date of completion. Use another excel spread sheet with a column for Opportunity, Action and Completion Date, and Who's Responsible. This is your accountability or tracking document. Without this, opportunities will be overlooked and ripe for competitors. Make different people responsible for different types of actions.
For example, Marketing does the mailing for the specified list of low potentials. The sales person calls the competitors' clients. Customer Service/Engineering/Technical Support practice effective listening and get the sale person introduced to the clients senior managers. The sales person should be the lead and coordinator to make sure each action by others is accomplished.
Managing the Sales Territory Management Process
Sale management should review the Opportunity Matrix and Funnel of Actions for each sales person to be sure all potential opportunities are covered and people are assigned for the scheduled actions. Managers should also review time allocations to be sure sales people are spending time on each category of opportunity in the right proportion.
I often hear, "We do this at the beginning of each year." or "We have to report this every month." My question is, "Do you forecast every month? Do you track the actions you'll do to insure the forecast will happen?" Usually it's the former. The focus of management has to be how well the opportunities are being attended - not forecasted. Besides, low and moderate potentials should never be forecasted.
The Opportunity Matrix and The Funnel of Actions for each sales individual or territory will produce (1) a reality check of whether the sales will be made as forecasted; (2) an appreciation of selling skills / deficiencies for each sales person; and (3) a vision about the future - where will next year's business come from. The manager can then begin directing, coaching and/or correcting before expected sales are lost or not met.
This is probability and process. This is how to select the right prospects and opportunities. This is what will dramatically increase closing ratios and this is what will increase sales.
Everyone wants more sales. So here's how. Manage your sales territory better. Bring in more prospects. Improve closing ratios, or do both.
Now increasing closing ratios is by far the easiest if you; 1. Go after the right prospects and opportunities, and 2. Go after the right prospects and opportunities.
Probability and Process
Any successful person learns process and probability - business person, athlete, gambler, sales person, etc. Process -- What's the strategy; what's the game plan; what's the method/system/...? Probability - Based on conditions presented, what action has the best probability of success?
Let's apply this to closing ratios or going after the right prospects and opportunities.
Here are the probabilities for making sales:
• Existing Customers - Existing Products/Services - 67% • Existing Customers - New Products and Services - 50%, (80% if they helped develop it with you) • Old or Lost Customers - 40% Existing Products/Services • Old or Lost Customers - 25% New Products/Services • New Customers - Existing Products/Services - 25% • New Customers - New Products/Services - 5%
This tells you how to manage your sales territory. That is, spend more time prospecting with existing customers. To be more exact, spend 50% of selling time with existing customers, 30% with old or lost customers and 20% with new or competitors' customers. Readjust your time allocations to the above and watch your closing rates go up. That was easy - wasn't it.
Now let's talk process for selecting prospects and opportunities
Sales Territory Management Starts with Building Your Opportunity Matrix
1. Using an Excel chart, list who buys, and what, and who doesn't buy. Enter all existing clients (and their divisions and locations) down the left column. Across the top row, list all the products and services you sell. Include new or potential products as well. Use categories if there are many products. Check off with a "+" the products/services existing customers buy and note your percentage if they also buy the same from competitors. Leave blank (for now) all the services and products they don't buy from you, but could. Indicate with an N/A's those boxes that don't apply or fit at all. Don't use dollars or quantities. You just want a simple visual.
2. Now list all the old customers. Here the rows will be empty. Make a note of what they use to buy from you with XX's. Then list competitors' customers. Note what they buy from the competitor with YY's, and things they don't buy from anyone, but could, or do it themselves. Finally list those that do everything themselves or you're not aware who/if they buy from.
This is your Sales Territory Management Opportunity Matrix - a visual of all the sales you could theoretically be making.
3. Now identify each opportunity by chance of them needing it - Way Out There (M1) to Out There (M2) to Likely Candidate (M3) to They Showed Interest (M4) - these are the marketing phases. Once a prospect gives you a good verbal indication there will be a purchase, prioritize into the selling phases - Qualify (Q), Proposal (P), Close (C). Fill in the Opportunity Matrix with the appropriate abbreviation.
Create this Matrix with your Customer Service/Engineering/Tech Support/Operations people. These people usually know more or have easier access to the client's people than the sales person. They can be a wealth of information about what going on inside your clients' organizations. Later they can be a great network for introductions to high level people. Managers should thoroughly review this at least twice a year, but sales people should update it monthly.
4. Now Build Your Sales Territory Management Action Plans
Your first mandated action is to keep the existing business. This is where my book - TAKE ME TO YOUR LEADER$ will help. It shows the actions needed to develop the relationships and leverage to retain and grow existing volume, as well as, get their other opportunities you don't have.
5. Now look at all the other accounts you don't have in the rest of the region. It's overwhelming I'll bet. So start prioritizing based on the statistics above. Note how much business is available from existing customers, either the competitors' share, or services they do themselves that you could sell. Then look at the rest. This visual with be very revealing and motivate you to prospect.
Knowing the inventory of sales opportunities will give you a handle on growth. You can now build action plans for keeping existing business and capturing other potential opportunities. Cover every opportunity in every marketing/selling phase. The farther down toward the sale the more energy/time you should allocate.
For example with a new customer you may want to do a low cost mailing campaign - minimal energy. For a competitor's customer, you may want to do some phone research to find the right people and then contact them (phone or in person) to learn their likes and dislikes of the competitors. For existing customers you should be spreading through that organization like a virus, meeting all the people impacted by your products/services, especially all the senior managers to learn likes/dislikes, issues, opportunities - high energy.
6. Now assign an action to every opportunity, even the 5 %'ers, and a date of completion. Use another excel spread sheet with a column for Opportunity, Action and Completion Date, and Who's Responsible. This is your accountability or tracking document. Without this, opportunities will be overlooked and ripe for competitors. Make different people responsible for different types of actions.
For example, Marketing does the mailing for the specified list of low potentials. The sales person calls the competitors' clients. Customer Service/Engineering/Technical Support practice effective listening and get the sale person introduced to the clients senior managers. The sales person should be the lead and coordinator to make sure each action by others is accomplished.
Managing the Sales Territory Management Process
Sale management should review the Opportunity Matrix and Funnel of Actions for each sales person to be sure all potential opportunities are covered and people are assigned for the scheduled actions. Managers should also review time allocations to be sure sales people are spending time on each category of opportunity in the right proportion.
I often hear, "We do this at the beginning of each year." or "We have to report this every month." My question is, "Do you forecast every month? Do you track the actions you'll do to insure the forecast will happen?" Usually it's the former. The focus of management has to be how well the opportunities are being attended - not forecasted. Besides, low and moderate potentials should never be forecasted.
The Opportunity Matrix and The Funnel of Actions for each sales individual or territory will produce (1) a reality check of whether the sales will be made as forecasted; (2) an appreciation of selling skills / deficiencies for each sales person; and (3) a vision about the future - where will next year's business come from. The manager can then begin directing, coaching and/or correcting before expected sales are lost or not met.
This is probability and process. This is how to select the right prospects and opportunities. This is what will dramatically increase closing ratios and this is what will increase sales.
Tuesday, March 3, 2009
4 Marketing Myths Threaten Your Sales
These 4 marketing myths can cause you to lose sales if you base your marketing decisions on them. But the related marketing tips I included with each myth will boost your sales if you act on them instead.
Myth 1:
People Always Buy Where They Get the Cheapest Price
If this was true, only businesses that charge cheap prices would exist. Some people buy where they get the cheapest price. But most people are more interested in getting value for their money than in getting a bargain.
Tip: Look for some low-cost ways you can enhance the perceived value of your product or service. Then test raising your price. Don't be surprised if both your sales and your profit margin go up.
Myth 2:
Offering Your Customers Many Options Will Boost Your Sales
Presenting your customers with options usually reduces your sales. Here's why...
When confronted with several options, most customers have difficulty making a clear decision. They often react by procrastinating - and never making a decision. When this happens, you lose a sale you already had.
Tip: Try to limit your customer's decision making to either "Yes. I'll buy." or "No. I won't buy". Don't risk losing them by including "which one" decisions.
Myth 3:
Everybody Needs My Product/Service
That's what YOU think. Most of them don't think they need it...and most aren't ready to spend their money for it.
The hazard of this myth is that it causes many marketers to believe they can succeed without doing much marketing or selling. They think their product or service is so special that it should automatically generate hordes of paying customers. Unfortunately, it doesn't happen that way.
Building a successful business is hard work - most of it devoted to finding customers. Even if most people can use your product or service, you still need a marketing strategy to reach them and a persuasive sales message to close sales.
Tip: Look for narrowly defined niche markets where your product or service solves a unique need of the customers. Focus your marketing on them instead of trying to reach a broadly defined general market. You'll generate more sales and enjoy a better return on your advertising expense.
Myth 4:
Keep Changing Your Advertising or Your Sales Will Decline
This sounds logical but it's not true. Never abandon advertising that's working. I know many businesses that have been using the same advertising for years and they're still growing. Here's why...
The goal of most advertising is to attract new customers. Once someone becomes a customer, they won't respond to that advertising again. But you can use different (and cheaper) advertising to generate additional sales from them.
But there's still a large population of non-customers who didn't respond to your regular advertising. Most have not seen it yet ...and those who have usually need to see it numerous times before they will respond.
Don't abandon advertising that's working - but keep trying to improve it. And regularly test new things to see how they work for you. If you never make any changes in your advertising, your sales will eventually decline.
Tip: You can automatically keep your advertising up to date by allocating 80 percent of your budget to proven promotions and 20 percent to testing new things. When something new works better than your proven promotions, move it to the 80 percent group and start testing something else in the 20 percent category.
Don't believe these 4 marketing myths. They're not true. Marketing based on them will cause you to lose sales. Instead, apply the related marketing tips I included after each myth to boost your sales.
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