Sales Laundry

Posts Tagged ‘Marketing’

Q&A’s are excerpts of questions I have answered as part of Sales Laundry or other forums that I am apart of.  If there is a relevant sales message for the masses I post it here to share, gather feedback and discuss.

Q:  Help!  I am marketing a new sports bat training device through independent sales reps, sales are improving, but slowly, and I need to speed up the process.  Any suggestions?

A:  Congratulations on getting from patent to production.  That is no small accomplishment. 

It sounds like sales are happening, but each sale is happening in a vacuum, and not having much of an impact on overall sales velocity. 

Pick a niche in your target market. Maybe it is college baseball, high school baseball, or pro, maybe it is rehab facilities, or possibly coaches, and put your available resources toward owning that niche (ala Crossing the Chasm) to begin to create some leverage out of each sale, that will make the next sale just a little bit easier. 

That should start to give you the multiplier on existing sales you are looking for. 

The next key is finding the right individuals in your selected niche that can add another multiplier to your existing sales with their credibility and influence. 

Look at that niche market and find the people who have influence over the potential customers in that niche. Instead of focusing your sales on anyone that will buy one, focus on the handful of guys that carry enough influence to multiply the leverage benefit of each individual sale. 

Where do you find these guys? Look at trade organizations, governing organizations, boards of directors and consultants for major baseball sporting goods manufacturers. Or it could be as simple as finding that old guy that everybody knows who has been around the game forever and knows everybody who is or was anybody in the game. Look to one of the statesmen of the game along the lines of the late Buck O’Neil as a fine example. 

I would also look to entrepreneurial ex-baseball players with hall of fame reputations. Look for the guys that are out of the game, have the contacts you need and are building business empires of their own. Nolan Ryan is one that comes to mind. 

I had to make a lot of assumptions here, but I hope that helps. 

On almost every small to medium business web site I have ever looked at, when I read the “About” section, it almost always starts off with something like this.

 X Company, an industry leading…  or X Company is the world leader in X…

 How can everyone be leading their industry?  They can’t.

 Newsflash.  I don’t believe you when you say that and neither does your customer.

 Interestingly enough, the one place I do not typically see the “industry leading” moniker is on the web site of the company that actually is the industry leader.

 Why?  I assume because everyone in their market solar system of competitors, prospects, clients and vendors already knows this information and considers it a given.

 So, if you are number one, we most likely know it already.

 If you are not the best, or close to it, but you say you are, you can improve your message by just shutting up.

Your startup or 2 year old services company should not be blowing smoke about being the best or being an “industry leader.”

 Stop it.  You are destroying your own credibility.  If I can’t belive you on something that basic, how am I going to believe you in your area of expertise where my limited knowledge forces me to travel with you on trust?  

 I can’t.

 Muhammad Ali said “I am the greatest, I said that even before I knew I was.”

 The difference is he delivered proof of his personal branding message under the bright lights of a live event repeatedly on national television.

 Are you the best?  Should you be considered the best?  Don’t tell me how great you are.  Show me.  Give me evidence of your greatness from a source I will trust.

 One example of “evidence” not to follow would be the supposed professionals quoted on  DVD cases.

 “Best family movie of the year” – X Magazine.        

“A thrill ride from beginning to end!” – NY Times.

 No one believes the hype on the box, especially if it only lists the title of the reviewing publication.  Was there not one single guy working there that was willing to put his name to the review?  So what does it amount to?  A waste of time to write, an erosion credibility, and an abuse of the customers time spent reading it.

 Give me a video testimonial.  Give me a signed reference letter and a phone number that I can call to back it up.  Give me independent research.

 If you are not the industry leader, tell me what you are, and give me a compelling reason to forsake the safety of the industry leader to take a ride with you.

 One last point.  It has been consistently proven that people are by in large not trying to make the very best choice they can, they are trying to avoid making a bad choice.

 You don’t have to be the world wide number 1, you just have to be number 1 for me. 

You heard it here first, if Global Warming is real, the source is not cow butts or cars, it is the smoke spewing from the collective mouths of crusty reps and unimaginitive copy writers. 
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I have talked, er, typed before about asking you to look for ways to add value to your product or brand by digging into the problems your clients are facing.  Dig deeper, that is, than the problems  solved by your present value statement.

Look for the the fundamental issues that might be preventing your customer from honestly even considering the problems your product solves, that may well be lower down the priority list.  Uncovering these problems, even if they are way beyond the traditional scope of benefits your product offers, and creatively solving them can lead to a competitive advantage, more business and a more loyal customer.

That is what the boys making Mini-Wheats are thinking, and I agree.

What problem does a Frosted Mini-Wheat solve?  Hunger.

What is the Frosted Mini-Wheat value statement?

“A fast, nutritious breakfast that you can feel good about that will keep your child full and focused on the day ahead.”

That is my take on their message, anyway.

So what bigger problems could a Frosted Mini-Wheat possibly solve to endear the product to its customers?

Frosted Mini-Wheats, with MSN.com has developed Moms Homeroom  

Moms Homeroom is a site featuring four mothers giving their thoughts on all aspect of educating children, similar to “The View” in that they are all piled up on a couch providing opinion and personal tips in a custom built community with polls, video clips, and most importantly, interaction with other real mothers and fathers (and the ones most likely to purchase the Frosted Mini-Wheats) out there asking questions, doing their best to raise smart, educated children.

The new Frosted Mini-Wheat value statement is “Frosted Mini-Wheats help your kid succeed in school.”

It is a unique move in the wake of smaller cereal boxes, reduced cereal quantities for the same price, or higher prices that Kellogg, the manufacturer of Frosted Mini-Wheats, and other cereal manufacturers are moving toward.

It is a bold, offensive move trying to partner Mini-Wheats with parents in their quest to seek a better education for their children.  Will it work?  It is already working on me, I have already forgotten about the other frosted shredded wheat products out there. 

If I buy Frosted Mini-Wheats I am helping support an organization that is providing a resource for parents to communicate, collaborate, and help their kids succeed in school. 

If I buy one of the other brands I am just buying, well…  cereal.

  Look at your own value statement.  Are you trying to sell me by solving a small problem of mine with milk covered cold wads of sugar coated wheat, or are you addressing a larger issue in my life of greater concern to me than which box I pick up at the supermarket?

Is your value statement solving what could be considered a “fluff issue” in these more challenging times, or are you refocused on solving some of my bigger problems that I might need to solve before I can even consider your original value statement or the thought of buying your product in the first place?

Help me solve my problems as a customer so I can be in position to help you solve yours.

Hyundai has a problem shared by every car manufacturer; we are not buying new cars. 

 Sales are down 30%+ across the industry and GM, once the pride of American manufacturing is on the verge of being delisted from the stock exchange as shares trade under $1.00.

 The difference is Hyundai gets it.  Instead of gutting their value and defensively dropping their shorts on price, rebates and financing, they are on the offensive, effectively saying “Mr. customer, I dare you to lose your job.”

 they are on the offensive, effectively saying 

“Mr. customer, I dare you to lose your job.”

Hyundai already has a sales strategy and marketing message that I would think would play well in this economic environment.

 That message being “We build stylish high quality, inexpensive cars, and we back it up with a strong warranty” which was designed to solve the problem of “I don’t have a lot of money, but I need a car that is better than what I am driving now.”

 That message has a lot of appeal, but apparently not enough to keep sales from falling off of a cliff. 

 Hyundai took a deeper look at why business was slumping and thought way outside of the box for ways to solve a problem weighing much heavier on the minds of their prospect than the problem their current value statement was solving.

 That deeper problem being “What happens if I lose my job and cannot pay my bills?”

 The answer until now has been “The car gets repossessed.  I lose my transportation.  It would be harder to find a new job.  My credit gets ruined, and I won’t be in a position to buy a car on credit when I do get back on my feet.”

 Final decision:  “A new car would be nice, but there is just too much downside right now to justify it.  I will keep my old car; at least it is paid for.”

 So what did Hyundai do?

 Hyundai Assurance Plus:  If you lose your income, we will make your payments for 3 months.  If that is not enough time to work things out, you can still bring the car back within a year.  By the way, you still get the 10yr warranty.

 I have no idea how this strategy is going to play out for them, though I assume it will be fantastic as long as legal did not pack the contract with too many outs.  I can, however, tell you how it makes me feel as a consumer.

 I feel like Hyundai is a company that gets it.  That they understand and they are offering up a legitimate “bail out” for the little guy if it becomes necessary.  More importantly, I feel like Hyundai cares.  Hyundai is willing to step in and help out if life’s challenges get a little too big for a while.

 Hyundai is going to earn some respect and get a look by a segment of the market that would not have looked at a Hyundai before and Hyundai is going to win a deep loyalty from the customers they end up helping out.

 More sales today, more happy customers and more market share tomorrow.

It is an aggressive move in a market that finds most of their competitors retreating to a defensive position of low price.

 Ask yourself, does your present value statement carry the same weight it once did?  Is there a bigger problem in your customers mind than the one you are presently solving?

Identify that problem, find the solution, and then figure out how your company can help deliver that solution alone or with strategic partnerships.

 If I were an independent car dealer right now I would be calling my financial partners to see if we could put a “Hyundai Solution” in place for my dealerships.

 What is the creative solution for your industry?  Get it right and you will be the one rewarded with customer loyalty and market share. 

I am looking forward to reading your thoughts.

What is your competitive advantage?

I love that question because it gives me an immediate understanding of a sales reps grasp of their own offerings and provides a small perspective into their understanding of their competitors.

The answer to that question can be key in some cases in determining the reasons for the success or failure of an individual sales rep or an entire sales team.

Let’s take an example from the oft in the news automobile industry. I will qualify all of this by saying I do not and have not ever sold cars. This is an example to illustrate a point.

If I only sold new Ford F150 pickups I would consider it critical to my success to understand everything I could about feature packages, engine choices, trim levels and available options so I could match the needs of my prospective client with the best combination of features that would serve his needs and what I had on the lot.

I would also want to understand what I had in inventory, what my competitors have, and what I could get my hands on in a reasonable amount of time to satisfy a customer request.

Next, for me, would be to talk to my service department and get an understanding of the vehicle from a service perspective. What parts tend to break more often? What should my client keep an eye on to avoid costly repairs? Are there any specific problems with certain engines, transmissions or trim levels?

I would also study the commercials to understand what the Ford marketing department is hanging its hat on when trying to entice the consumer to buy their trucks. Where it makes sense, I would blend their message with mine to leverage the ground work Ford has already done.

I would also need to know why my new F150 and the depreciation it would take as soon as it rolled off the lot was a better value for my customer than last years model, or any other used Ford truck still on the road. If I only sell new Ford trucks then a used Ford F150 is every bit as strong a competitor as a Chevrolet, Toyota, Nissan or GMC.

Where, when and why is my new F150 a better value than my competitors’ vehicles. To understand that, I would need as much knowledge about my competitors new trucks as I know about my own, including their used models as well.

Amassing and internalizing all of this information amounts to what could be a strong value add for my prospective truck customer. Even the ones showing up fully armed with internet research.

The more information I have at my disposal to answer questions and eliminate the need for my client to go look somewhere else, the more likely I am to sell a truck.

There are several other factors that go into being a successful rep that I glossed over. Here I am speaking specifically about leveraging what you know into dough.

I ask again, what is your competitive advantage?

Why should I buy your product over your competitors? What value do YOU bring as the representative? Why should I buy my widget from you instead of number one sales guy Dave over there?

Make it easy for me to buy, help me understand the value you bring, and why I should buy from you vs. your competitor and odds are, assuming I believe you and recognize your value, I will buy from you, all other things being equal.

Chinese general Sun Tzu, living some 2,400 years ago, give or take, put it a little differently…

If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.
- Sun Tzu

Or perhaps more concisely put…

Keep your friends close, and your enemies closer.
- Sun-Tzu

image provided by theblogentrepreneur.com

Times are tough. Sales are down and Management is cracking the whip on the sales team. Forecast meetings have turned into an exercise in pain management as the same weak opportunities get hashed and rehashed week after week as revenues dry up and leads exist only in legend.

Does that about size up the sales effort so far this year? Well grind no more my good man.

Simply put, if what worked yesterday does not work today for one rep, look at what has changed about the rep. If what worked yesterday does not work today for the entire sales team, look at what has changed about the business of doing business.

In those heady days before 2008 when sales reps were writing new business in their pajamas or while still wearing the cloths they wore to the bar the night before, many sales professionals were able to check their skills at the door and become order takers, often times stumbling across an order or two blowing across the parking lot on the way in the office.

Ok, so maybe I am exaggerating a bit, but it is only to make the point that instead of complaining about the market, now would be a good time to hang up the order takers apron, knock the rust off the sales armor and go jousting.

“Our clients are laying off staff, they do not have the budget to do anything this year.”

Do they still need your service in these difficult times? If you were providing staffing for them, ah, maybe not. Or, they might just need you more than ever. If you have the relationship in place maybe you can suggest temporary staff that are more cost effective to help them wind down their operation until their new reduced permanent head count can wrap their arms around the business. Maybe not, but it is a thought.

Maybe you expand your business by snapping up the best people being let go and using the power of their resumes to land them positions and you some new clients.

Maybe you expand by delivering severance package services like executive retraining, interviewing skills, or resume services.

Maybe all of these will work, maybe none of them will. The point is if business is not coming in the door the old way, think about creative ways to change the business.

“My client is saying she does not have any money to do anything.”

If the company still needs your service, it sounds like it may be time to think about ways to creatively finance your offerings or find a strong leasing or financial partner/bank that can buy the deals you write and give you some needed cash flow.

If you are in a strong position financially, see if you can bump your prices in exchange for time and terms with your client.

Think like a partner when you are talking with your client. Listen to them. What is it that their business really needs to success, or in some cases, survive? Ask questions to expose the bigger picture.

Why doesn’t your customer have any money? Are there sales down? Do they have clients not paying at agreed terms? Are they having cash flow issues in some other area of their business that is limiting the amount of inventory they hold and turn?

Think outside of the box on this one. Is there any service, deals, crucial contacts, reciprocal arrangement or vendor partners that you can marshal to help solve an underlying problem for your customer that will put your customer in a position to solve your problems by buying something.

What if your own sales team dedicated some time to finding opportunities for your best client through your own contact lists, effectively growing their sales force in the short term?

What if you developed some joint marketing efforts, effectively cutting both companies costs in half for the same ad/airtime?

What if?

The take away here is now is the time to think about problems at a greater depth than you are accustomed to doing, and frankly may not have strong enough relationships with your clients to allow those conversations to happen. You may need to solve a problem or two that is higher up on your clients list of issues than the typical problems you solve within the scope of your offering.

Got any creative ideas or stories of how you or your company bailed out a customer? Let me know.

Are you getting any value out of the time and money you are spending at trade shows?

 While I can’t say I get a lot of value out of all of them, I can give you my tips for maximizing the time and the dollars you are spending to attend.

I am not going to go over the merits of having a booth vs. not having a booth here.  Most of these points apply either way, but I write this assuming, for the most part, you are not tethered to a booth.

1. Define a strategy for the show.  Figure out exactly what you want to achieve before you set one foot on the show floor.  With clear objectives it will be much easier to stay focused and tune out the chaos that can ensue when the show floor opens. 
2. While the show is still several weeks out, identify who you would like to meet with at the trade show.  For best results, avoid the standard practice of showing up and winging it.
3. Setup email campaigns and/or call these prospects and try to setup an actual meeting time at the show.  Meet in your booth, a lobby coffee shop or a good couch, whatever works.  TIP:  Pack a snack in case your schedule forces you to miss lunch.
4. There are an amazing number of people that will take a meeting at a trade show having no idea if you can benefit one another.  For the prospects you do identify, do a little research and figure out how you can potentially benefit one another or don’t take the meeting.
5. Confirm your meetings with the prospect face to face or voice to voice on the telephone.   TIP:  Only confirm with something that can feel responsibility or guilt.  I have seen some pretty sophisticated voice mail systems, but never one that will take a meeting with you if his or her owner skips out on you.
6. The tag scanners at trade shows can be great when all you need is an effective swap of electronic business cards.  Be careful not to fall into the trap of scanning the prospects name tag and just trusting yourself to remember what you talked about.  I use a 5”x5” ruled notebook for this purpose with a handy dandy $3.00 mini stapler.  
   

   Swingline Slim T Mini Stapler

   When we exchange business cards to start, I staple the card on the first blank page on the spot and write my meeting notes.  In doing this I have found that I do not lose business cards, I know everyone I met with because I have all of their cards stapled in the book and in the order of how they were sitting in the meeting so I can keep faces associated with names.  I will write more on the value of this little spiral in a future post.

    

    

7. In my most recent trade show visits I have had a full multimedia presentation and a demo reel showing our work.  I keep a copy of everything loaded on my Blackberry as well as my laptop and use the most convenient one based on the situation.
8. Get a rolling bag.  Skip the free bag you get at registration, or the laptop bag you carry around on your shoulder, if you will be carrying your laptop or anything significant in the way of sales literature buy a rolling bag with the a retractable handle.  TIP:  Pay close attention to the quality of the retractable handle.  A bad handle will pinch your hands and in some cases draw blood.
9. In some cases I have had up to 40 meetings over the course of a 5 day show.  I keep a small version of my schedule with meeting times, names of contacts and firms, and contact numbers to stay in touch at the show.  I typically keep this information on the backside of the name tag on the lanyard around my neck.
10. Business cards.  Take twice as many as you think you will need and hand them out to anyone you talk to.  Never miss an opportunity to build some awareness about you or your offerings.
11. Talk!  This is no time to be timid.  Develop some ice breakers in advance of the show if you have to.  I talk to people everywhere.  In the lobby, at lunch, at the hotel, over breakfast, on the shuttle to and from the hotel, anywhere there is an opportunity to have a short conversation.  Don’t whack all these people over the head with your offerings, but when you find one that seems like a fit schedule a time to meet “officially” or have a good 30 second elevator pitch prepared to entice them to want more information.
12. Get a hotel room as close to the show venue as possible.  The hotels closer to the show are a bit more expensive and fill up fast, but having the ability to get back and forth to the hotel without enduring significant time loss or  logistics issues will be money well spent.
13. Evening events.  In many cases there are show sponsored events and private parties scheduled once the day on the show floor is done.  Plan to attend these if you do not have any evening meetings or dinner appointments setup.  Look for the invitation cards while you are at the show and ask around as you meet with people to find out what private events are scheduled.
14. Plan a private event.  If it makes sense for your offerings and if you have the budget, setup a private event one night after the show.  A few drinks, great snacks or a nice dinner can loosen tongues and allow conversations to take place that would be difficult anywhere else.
15. Be prepared to meet a prospect anywhere.  I think of it as traveling heavy, with my rolling bag, all my materials, my laptop, etc. or traveling light with just my mobile phone (with presentations loaded,) business cards, and a small notepad.  I will sometimes carry my 5” x 5” notebook tucked into the small of my back under my jacket.  It works well for me.

Trade shows can be an incredible source for contacts, leads, and opportunities or complete dismal failures.  From maximum success I develop my goals; I develop a primary and secondary strategy unique to each show I attend.  I try to remove as much mystery as possible by defining my prospects, pre-scheduling my meetings, and researching my prospects developing a mini strategy for each meeting.

The last thing I can say is even with all this planning, keep a degree of flexibility built into your schedule.  As I have discovered, even with all my planning, I will on occasion forget something important, like remembering to pack my pants.

Got your own trade show tip?  Is there something you have done to turn a miserable show into a screaming success?  I want to hear about it.

Image courtesy of managemytradeshows.com