1- 330-413-8552 Mark@NoSmokeAndMirrors.com

customer voice

Hey Delta, …Buyers Make Decisions in “their timeframe” Not Yours! Your Goals do not Matter to your Buyers

 

Organizations that create objectives based on their needs and timelines and not their buyers miss key indicators and create frustration for their internal and external customers. Why do so many organizations create goals and key performance indicators from high within their organizations and not from the market and buyers in market?

Most organizations lack an intimate knowledge of their buyers, their problems, and buying process so they operate in “gut and intuition  mode.”

 

When organizations start building market driven goals with an understanding of the problems their products and services solve, key indicators and EBITDA objectives are met and exceeded.

If you have not gathered it from previous posts, I fly a great deal. Domestic travel has become more of a necessary evil experience (with the exception of South West). I have traveled on  business now for over 25 years, so I remember when air travel felt like the airlines valued me and my business.

International travel has become even more challenging. I traveled  from Phoenix to Manchester England recently on Delta. I had a long layover in Atlanta and  then 7 1/2 hour flight over the pond and I was in business. The first leg of my flight left Phoenix at 6:10 AM. so based on the rules for international travel I had to check in at the airport by 4:00 AM. Luckily I do not live too far from the airport so I set my alarm at 2:45 AM.  I arrived, parked the car, took the parking bus to the terminal, went through security and arrived at my departure gate.

I settled in with a book I have wanted to read  by Jim Collins and I was not looking forward to my 5 hour layover in Atlanta,… but you have to do what you have to do.

The gate agent announced;

We are overbooked on this flight and we are looking for 4 volunteers willing to take the later flight and we will give a voucher to be used for future travel…

I went up to the check in counter, and found I could indeed take the later flight and still have a hour to make my connection in Atlanta. However, since I was already at the airport, I decided to decline.

In about 15 minutes another announcement needing volunteers and her voice seemed more desperate. ( don’t customers know how important it is to Delta to get volenteers now?)

As the boarding  time approached we heard additional announcements and eventually they found their volunteers who had “flexible” flight plans and they received later flights and cash vouchers. ( while our take off was delayed)

 

Hey Delta…when did your system know you were oversold?

Is this the ideal buyer experience for your service? …I think not.

If your system knew within 24 hours of the flight it was over sold, it sounds like you have an unresolved problem you need to solve that may actually turn into a service your customers rave about and save your bottom-line profits…Interested?

If you have the technology to remind me to check in 24 hours prior to the flight, …can you leverage that technology to request volunteers for overbooked flights 24 ours ahead of check in? If so I would have volunteered for free to have a few more hours of shut eye!

How about your organization?

Do you set sales goals and timelines based on your needs versus the markets? How’s that working for you?

Are your sales objectives and timelines created by internal Hippos who have a dated understanding of your market?

 

Or are your goals developed with a clear understanding of your buyers, their buying process and criteria?

Let me ask you a key question….

What % of your sales team met or exceeded their sales goals last year? If you are like most organizations as high as 70% of your team missed their sales objectives last year.

While on this topic let me ask you another question:

What % of your salespeople received a goal increase this year?…( that many huh?)

So let me get this straight, 70% of your team missed their sales objectives in 2009, and 100% received a goal increase in 2010? Am I the only one who has heard Einstein’s definition of insanity? [Hell, chances are you have used it in meetings with your team, why not look in the mirror when setting goals?] So your employees also suffer whn goals are made wiout an understanding of your buyers?

So what happens next?

 

Objectives are missed

 

Goals are adjusted down or inventory far exceeds actual sales, and EBITDA objectives are missed…again

And / or you discount your product or service so buyers react to your goals and timelines

Market leaders understand goals should not be a shell game, and they must be created from a clear understanding of your markets and how (when) your buyers buy.

Market losers create objectives in their Hippo watering holes called boardrooms with little or no understanding of their buyers, buying timelines, and buying process.They focus on their needs and not those of their buyers. They demand buyers to buy on thier timeline. 

 

Market Losers get frustrated because objectives and key timelines are being missed, and they try to “manage” their way to bottom-line objectives.

 

What kind of company do you work for?

What kind of a leader are you?

 

If you are a Hippo, when is the last time you left “the watering hole”?

 

When was the last time you bought or used your product or service?

 

When was the last time you talked to a potential buyer for your product?

Are you dictating when buyers must buy?

 

The solution is obvious….

Get out in your market and get to know your customers and potential customers today. When you do you will discover market problems and see opportunities for your team to solve those problems.

Who knows, you may also create raving fans who value a few extra hours a shut eye more than a $400 travel voucher.

You Got a Minute to Win It…Your Buyers’ Attention

When you are shopping for a new item where do you start? If you are buying a snack or Diet Coke you find the nearest source. However, when you set out to buy more substantial products most of us start shopping with an internet search. Information once only available through a salesperson is now available on web sites, in chat rooms and blogs. Where most organizations’ web sites fail is their message is about them, how great they are, how many years they have been in business, who some of their key customers are, and awards…blah …blah….blah.

Market leaders know their web site needs a concise message that clearly states the problem they solve for their buyers because today you have less than a minute to win it…your buyers’ attention that is.

 

Have you seen the new game show on Sunday nights titled; “You’ve got a minute to win it.” I predict this show will not only be a huge success but it will have entrepreneurs creating home minute to win it games and consumers will be making their own contests based on what they have seen on television.

As our family watched this new game show we found ourselves cheering for the contestants as they attempted challenges of varying difficulty. I thought how similar these contests are with the environment most marketers face when trying to capture consumer interest on line.

Your web site should not require practice for consumers to win (find answers to their unresolved problems)

The contestants on this show have all practiced their challenges at home prior to appearing on the show. So they practiced balancing bolts strung on a chop stick and bouncing a ping pong ball over three consecutive plates and into a fish bowl. What we as business people can learn for this includes;

  • your potential customers do not want to learn how to win , practice finding, the problems your product and or service solves for them

  • It is your responsibility to test and keep testing your web site and adjust it so potential buyers “get it in a minute.”

The moral of this blog post is;

*when your marketing team knows they have a minute to win it in terms of customer attention they will boil your message down and clearly explain the problem your product or service solves for buyers in your market. When done properly you receive more traffic, more page views, a reduced bounce rate, more inquires that turn into more leads, and ultimately more sales.

So how about your web site and your message…if you asked a potential customer to view your site would they understand the problem you solve for them?

 

Does the imagery on your site also clearly show the problems you solve for buyers in your market? Not sure?

Print your home page and give it to potential customers. Potential customers are buyers in your market that could use your product but you have not sold them in the past. Set your timer for a minute and ask them to quickly read and view your web page. [Warning; if you are a C level executive and chose to try this you will not like the answers you receive if you are like 90% of companies] If you are a market leader clearly explaining the problems you solve and not playing “feature and benefit bingo” hoping your buyers figure out what you do, you will enjoy this exercise.

You have a minute to win it in terms of customer attention when they are shopping on the internet.

Your web site must clearly state the problems you solve for your buyers in your market, ideally in the voice of your market. If you fail to do so they will be gone in a click to other sites until they find one that does not require practice to master.

 

How about your companies’ web site?

 

Do you understand the problems you solve in less than a minute? (If your answer is no you are really in trouble as you have more product knowledge than your buyers just starting their buying process)

 

Do you have the courage to ask potential customers to take the win it in a minute challenge on your web site?

 

Is your current web site a virtual brochure that requires customers to play feature and benefit Bingo to understand your message and the problems your product or service solves?

 

You have a minute to win it with buyers shopping on line for solutions to solve their problems. Your website must clearly state the problems you solve for your buyers in less than a minute or you loose the game.

Start-up’s….Like Wiring a House With The Power On…and getting zapped

The start-up phase is often one of the most difficult phases for entrepreneur as they often try to gain market knowledge while trying to meet sales goals. You know you should gather market data, but you often have limited cash, you are the chief cook and bottle washer, and you need to make sales to fund your future growth.

Start-up leaders need a strong emotional intelligence as many days you feel like you are; wiring a house with the power on and you keep getting emotionally zapped.

 

A number of years ago my wife was redesigning our upstairs bathroom and asked I change the electrical outlets from a cream color to a solid white. So we turned the lights on in the bathroom and I went to the fuse box and flipped switches until the bathroom light went out. I started to remove the outlet and saw a small spark. I thought to myself…”That’s odd as I know the electric power was off…” (My perceived truth) so I continued removing the old outlet. Zap! Next thing I knew I received a shock that sent me up against the wall and I fell into the bathtub. I latter found a new truth…the lights were on a separate circuit than the outlets so I was trying to change the outlet with the power on.

One of the most exhilarating as well as frustrating things you can do is launch a start-up company. Like I discussed in a previous post you feel like a plate spinner with more to-do’s than hours in a day. I go on to discuss how we can’t let the most important plates drop. I have discussed in earlier blogs how 2/3 of start-ups fail within 18 months. The main reasons we are all aware of for start-up failure include;

  • run out of cash
  • lack of a market driven plan
  • if you have a plan, your sales expectation is too high, too soon
  • if you have a plan, you have an unrealistic understanding of the buying process and cycle
  • trying to sell the need for a product you launched because you could and not because you should
  • market is not large enough
  • customers do not want to pay to solve the problem you solve
  • stress

 

Assuming your product and or service solves an unmet need, and you have a large enough market who are willing to pay you to solve their problem, the real danger for entrepreneurs is getting zapped by stress during the start-up season of your business..

To keep you from getting emotionally zapped from stress during the often hectic start-up phase, there are five key Biblical lessons I learned from a sermon recently.

1. Don’t wear yourself out – build the discipline to determine what is important, urgent, and focus on what is :urgent and important

2. Don’t shut out others – the reality is you can’t do it alone. Now more than ever you need your network, family, and friends

3. Don’t just focus on Negatives – that’s what market losers do. Keep your eyes on the prize and look for bright lights of opportunity as you launch.

4. Focus on your physical and Spiritual health – far too often those mounting to-do’s make us drop or delay other key areas of our lives. If necessary put time on your calendar for your fitness and faith.

5. Anxiety and fear are the product of looking back or too far into the future , focus on what is in front of you now, and leverage what you have. The quickest way to stop creatively solving roadblocks is to become fearful.

 

 

What about you? Have you experienced stress during the start-up phase?
What advice do you recommend to entrepreneurs in the start-up phase of their business?
What zapped you most in your start-up?

Choose to be a Builder in 2010….not a Wrecker

 

I enjoyed a recent column in our Scottsdale Republic by Michael Ryan. He published a poem tiled; “Which am I? “ He was not sure who the author was but the message lives even stronger today than it did seven years ago when he first shared it.

When times get tough we usually see one of two behaviors in organizations;

 

Teams begin infighting and blame-storming

 

Teams unite, grow stronger, and emerge as market leaders

 

Ryan goes on to discuss how “Instead of working together to solve problems, some people seemed more willing to battle one another.” I see this far too often with large clients in which managers retreat to their silos and start shooting missiles at each other instead of competitors.

So I have to ask… 

what kind of a team do you work for?….

A market leading team that discusses real issues and works together to solve them?

Or…

A market loosing team of managers so concerned with covering their own rear ends they wouldn’t know an unresolved market problem or a roadblock to providing a positive customer experience if it bit them?

No matter how others in your organization may be acting under the pressure you have a choice.

Chose to be a Builder.

  ( less than 10% of your team will choose to be builders) 

I hope you enjoy this poem as much as I did.

Which am I?

 

I watched them tearing a building down.

 

A gang of men in a busy town.

 

With a ho-heave –ho and a lusty yell,

 

They swung a beam and the sidewall fell.

 

I asked the foreman, “Are those men skilled.

 

And the kind you would hire if you had to build?”

 

He gave me a laugh and said “No indeed,

 

Just common labor is all I need.

 

I can easily wreck in a day or two

 

What other builders have taken a year to do.”

 

I thought to myself as I went my way,

 

“Which of these roles have I tried to play?”

 

Am I a builder that works with care,

 

Measuring life by the rule and the square?

 

Am I shaping my deeds to a well-made plan,

 

Patiently doing the best I can?

 

Or am I a wrecker who walks the town,

 

Content with the labor of tearing down?”

 

– unknown author

 

 

I would like to add a few lines….

If you have played the role of wrecker you should not despair,

As wrecking is easy for those who do not care.

 

To add value, now that is the to pass through the camels eye,

It is there leaders are born solving problems that arise.

 

Having the courage to often stand alone, to be a part of the solution,

 

When their peers partake in political pollution.

 

 

Ok, so I wasn’t meant to be a poet. But I have worked within a number of organizations that lack leaders willing to be a part of the solution. When we focus on the problem and not attacking the person we are often called “heretics”.

The best way to add value to the team is to be a builder and not a wrecker.

 ( there are far too few builders these days)

Builders identify and solve problems. They flip what is perceived by most to be a problem and turn them into opportunities to add value.

 

 

Wreckers take the easy route quickly criticizing and tearing down creative new ideas and they often overlooking roadblocks and broken processes for perceived personal safety.

 

So who will you choose to be in 2010?

 

Thanks again to Michael Ryan for the above Poem.

Technorati Tags: Market leader,builder,market loser,wrecker,creative problem solving,solve unresolved problems,identify road blocks

“Colonel Custer had a plan “…What To Do When Your Plan Is Not Driven by Market or Internal Truths and You Lack a Market Driven Motivation

After writing my post: Third Part of truth …Motivation; Are You willing to go the extra mile like Chick-fil-A? I had someone contact me with a question I thought was worth sharing.

“I read your last post and I can’t agree more with gathering market truths, assessing internal truths ( particularly after recent lay offs) and having a motivation to make a difference in the lives of those in your marketplace….

 

But what do you do when you work for an organization that built a plan based on old market data, an inflated view of internal capabilities ( that assumes we work 18-20 hour days) and a motivation that is singularly focused on making our owner wealthier and not changing the lives of those in the market we serve?”

Having helped a number of companies in a variety of industries over the year’s… shame on me for not expecting this question. Not only have I personally faced this dilemma, I know a number of people trying to obediently execute plans that were written from within their organization and lacking market data today.

I enjoyed the conversation with this young man, and below is what I advised him to do;

Gather current Market Truths

Chances are, at some point your leaders were market driven based on the growth they have experienced over the past 20 years. At some point however they started relying on their own personal guts and intuition and forgot the true market sensing process that empowered their original growth. The first thing I advised him to do is assess the market truths of today. Once complete, compare and contrast the plan you were given to execute in relation to current market truths. Note the strategies and tactics that are in alignment and call out those that are no longer rational based on new data.

 

Write a market truths document

 

 

Highlight strategies and tactics in your current plan that are no longer in alignment with the market of today

 

Asses your internal truths, capabilities, discard to-do’s that do not support your road map

 

 

If your team lacks a motivation to serve your market, create one

 

 

Write a plan you will execute based on the information you have shared and allow some flexibility

 

 

 

 

 

As we closed the call this young manager said “we have a plan, but I am sure Colonel Custer thought he had a plan too…”

Yes, I am sure he did. But he too underestimated the competition and lacked a clear understanding of his market realities. He had scouts warn him that he grossly underestimated the size of his completion but he failed to listen. Is it any wonder this famous battle was over in less than an hour? ( kind of like how most new products are off the shelf within 18 months)

The people I always wondered about were his men…I am sure most were seasoned military soldiers and by nature trained to take and follow orders. However there had to be a few heretics in the ranks and I wonder if they had the courage to speak up, did some dissert the night before the battle, or did they knowing walk into their own demise? History states a number of his men were seen running from the battle when it was obvious all was lost.

If you are asked to execute a plan that is not market driven based on the current realities of your market today, you owe it to your team ( and yourself) to present current market data.

 

Leaders do not just state the disconnections their plan has with the market realities, but they also provide possible new strategies, they become a part of the solution.

 

Be a leader… and if you are a member of a team that frowns on gathering current market data to create market driven strategies your have two choices;

 

Stay on the team and expect to be to do driven, chasing outcomes of the day

 

Leave the team and seek out market leading organizations that value writing plans strategically based on current market data

 

I could tell he did not like the second option , (nor did I when I felt the need to leave one of the teams I served when their plans were so far from market truths I experienced physical health concerns as I attempted to be a soldier and follow orders.) I was much younger then and I was still under the erroneous assumption that the Hippos in the room were the most knowledgeable.

How about your organization…do you believe the plan you will execute in 2010 was written with current market data?

 

 

 

 

 

If you answer is no, what do you plan to do? Why?

 

 

 

 

 

 

Have you ever presented your Hippos current market data that was contradictory to the plan they gave you to execute?

 

 

 

 

(Would love to have an expert jump in here on the effects on employee physical health when they attempt to execute plans that are not in alignment with the market realities of today)

Technorati Tags: Market driven strategy,market driven,market leader,market data,market sensing,chasing outcomes,market truth,internal truth

Are You willing to go the extra mile in customer service like Chick-fil-A?

A third key consideration for leaders and owners of businesses when building upon a foundation of truth is your Motivation. Specifically what are your real objectives and motivation for your business? I often find when helping clients about six months into an engagement the leader’s true motivation is shared once trust is built. It is often not the stated goal and the team are executing strategies and tactics that are not in alignment with the real objective. So early in my relationship with a new client I seek out the leader’s true motivation.

Some common objectives include;

want to be cash positive by (date)

want to retire, so build this business and position it for a sale

want to give this business to my children, please set the business and my children up to win

want to sell my business

want to grow at least 20% per year

want more profitable customers and less of those who do not truly value my product or service

The common objectives are usually stated as “I want’s” not what they plan do for their markets. However market leaders consistently speak in a voice that discusses the difference they plan to make in the lives of their customers.

One of my favorite fast food stops is Chick-Fil-A. I hesitate in calling this fast food as the food I receive is good and the people who work at Chick-Fil-A treat you like you are their only customer. As I travel throughout the US, if I need to grab a quick lunch I look for the nearest Chick fil-A. I order my food and at the end of each service experience I consistently hear “my pleasure”. As I look around the restaurant I am always amazed at the amount of activity they consistently execute to add value for the customers they serve. This week they posted pictures of a gingerbread house making event they held last week and in the future a Christmas ornament making class for children.

When others are afraid to not be politically correct the person at the counter in Akron said “thank you, and have a Merry Christmas, God bless you and your family.” At first this was such an interruption it caused me to pause. It’s sad really when wishing someone a merry Christmas is an interruption, but as the recipient I can’t say how much this meant to me. Traveling this time of year is difficult and for a brief moment I did not feel alone.

So how do large organizations consistently execute a service level above and beyond the expectation? It starts with their leader, and the leader sharing their true motivation. A few years ago I attended a Christian business event and the president of Chick fil A , Dan Cathy ,was the speaker. He shared how they are a faith based company built on biblical principles. You can listen to him yourself as he talks about his team here. One of their key tenants was “going the extra mile”. This is in reference to the Bible passage in Matthew 5:41 . As the owner and president of Chick fil A spoke, he shared how going the extra mile for a busy mom is pulling out her chair and putting fresh ground pepper on her salad. He shared how it actually, form a cost stand point, costs very little, however the impact they consistently see in sales increases year over year are significant, , or as their website states; “we are here to serve more than sandwiches”. They have seen consistent growth for the past 41 years.

Market leader’s focus on a goal bigger than themselves and their personal desires.

Market leaders are on a quest to make a difference for their market and customers in their markets they serve.

How about you and your organization…are you on a quest to make a difference in the lives of your customers?

Or are your employees shouting “next” and supplying the bare minimum?or good enough?

Is your team on a quest? Or are they working a plan they signed up for but honestly where never committed to?

If you have an opportunity, go to a Chick-fil- A for lunch and decide…is this how you are making your customers feel?

The good news is you can!

If you currently are not on a quest…find one!

Once you understand current market truths, and you have identified your internal truths, you must understand your leader’s and your team’s motivation. Market leading teams sign up for a goal that is bigger than them and meeting ROI’s. They sign up for quest’s to make a difference in the lives of those they serve…and interesting their financial results consistently outpace their competitors.

Technorati Tags: Strategic plan,strategic planning,chick fil a,start with truth,business plan,market plan,market focused,grow your business profitably in 2010

Top 20 Entrepreneurial Best Practices to Make Sure 2010 is a Profitable Year

 

When I wrote my EBook: 50 Ugly Truths About Owning and Running Your Own Business…and 5 reasons why you should do it anyway I was responding to a number of misperceptions I was hearing from entrepreneurs.

Historically, at any given time six out of ten US adults is thinking about starting their own business. A number of new entrepreneurs are emerging that  I refer to as “necessity-preneurs “who were downsized and can not find new employment, are deciding to launch their own businesses as they want a much more active role in the security of their careers. The last group are cashing in their 401k and or borrowing from friends or family to buy an existing business and in a short amount of time realize they really just bought a job and they are quickly running out of cash.

One thing I have learned over the past 25 years of identifying roadblocks impeding businesses profitable growth is there really is not any new creations in terms of problems and strategies to grow a profitable business. Peter Drucker simplified it even further; there are only two considerations; innovation or marketing.

Just as I shared 12 mentor moments that I have used personally over the years to help businesses grow profitably, I have the Top 20 entrepreneur best practices that I have observed and lived over the years.

#1 “More” Sales or “Create Sales Velocity”?

#2 Dismiss or Distribute “Yafo’s” quickly …

#3; If Sales are Scary, You Can NOT Afford to NOT get Creative..

#4 Remember “The Law of the Locker Room”… it truly is a small world after all

#5 Tailor Questions for your buyers that Illustrate your Expertise and Prepare you to Serve their Needs

#6 Learn To Cut Bait …early

#7 You are Not Your Market

# 8 When Sales Get Rough…Look for Diamonds

#9 Don’t Let the Two Most Important Plates Drop

#10 “How” you “CHASE” New Business Matters….Do you want pepperoni with that new checking account?

#11 Follow the leader is a dangerous game, particularly when you follow Hippos…

#12 An “Idea” is not a product…and it’s definitely not a business

#13 Hire Strategic Partners… Not “Marketing Tools”

#14 Customers will Stiff you…But Don’t Let Them Burn you…

#15 Beware of “Smores”…Social Media Whores

#16 “Make a Wish” come true with Focused Passion

#17 intentionally reward the customer behaviors you desire …

#18 You will Receive Your Best Tips To Grow Your Company From Prospects Who Do Not Buy From You…

#19 Interview those who Exit and identify Roadblocks to Achieving Your Strategic Objectives…

#20 Exercise Your Power of Choice in Choosing Your Role on the Team…If Your Gift is Being a Duck….Be a Duck!

 

The above are by no means an all inclusive list of every entrepreneur best practice but they are some of my favorites. The post that seemed to resonate the most and create the greatest number of discussions was the difference between creating “more” sales versus “creating sales velocity” ( entrepreneur best practice #1).

 

 

How about you….do you have an Entrepreneurial Best Practice you use regularly and would like to share?

 

 

Of the above which best practice(s) resonate most with you?

 

 

Which of the above do most entrepreneurs struggle the most with based on your observations?

 

 

Is there a Key best practice not identified? (If so please add to the discussion)

 

 

As we move into 2010 which of the above Best practices do you feel will resonate most? Why?

 

Thanks for hanging with me  in this series of posts and I want to particularly thank those who have reached out to me personally to discuss this series of posts. As I have discussed, I enjoy helping entrepreneurs realize profitable growth and the strategies discussed are not new. One of my goals in blogging is to help business owners who may not be able to afford outside help at this time and I hope this blog adds value.

If you are wired to take on the 50 Ugly truths of starting and owning your own business and you have intentionally chosen to do it anyway I hope the above best practices were of value to you and your team.

Entrepreneurs will lead our country to economic recovery and I am proud to serve this innovative group of passionate problem solvers along with my other clients.

Technorati Tags: Entrepreneur best practices,entrepreneur,sales velocity,profitable growth,marketing,sales,sales and marketing alignment,execution velocity,market leader,market loser,road map,flight plan,market problems,solve market problems

Entrepreneur Best Practices: #18 You will Receive Your Best Tips To Grow Your Company From Prospects Who Do Not Buy From You…

For as long as I can remember I have heard “your customer is always right”. The spirit behind this statement was to make sure market leading organizations do not try to “overcome customer objections” and listen…as failing to listen is the #1 reason buyers do not buy from a salesperson.

However you will receive the best tips to grow your business from prospects who do not buy.

I remember a time, back in the day, when I was serving a plastics company, Alpha Enterprises, which made mechanical security devices to stop consumers from stealing music. The record labels announced they were eliminating the “long box” cardboard package in 12 months and CD’s would now be sold in just the Jewel case (as they are today). The national retailers were concerned. So we designed a perfect security solution to house the CD that complemented the current line of audio and video products we sold them …it fit in the current fixtures, had a area inside the device to house the security tag so consumers could not peal them off, it was quick to remove at the checkout counter, used the same key as our other devices, and we even made some of them out of Lexan so the package was crystal clear so as not to deter from the graphics on the CD package. We were kicking but and taking names. It was my job to present our solutions to the various record chains and mass merchant music retailers and book preorders so we could grow our capacity to meet the market need.

And then I presented our various solutions to a Boarders Books…

We had never sold Boarders before. We did not have a relationship with them, and the buyer politely said…”no thank you…we will pass”. I was taken aback…doesn’t he know how awesome we are? Did I forget to tell him how all the other chains are lining up to buy? I was always taught, back in my Frito-Lay Selling Skills training; the sale starts when the buyer says “no”… so I couldn’t let this one go. As I said we were on a roll…we were at about $38 million in sales and based on preorders alone we were forecasted to surpass $76 million in 12 months. We could have just kept trying to sell people who already knew us…but we wanted to know more about why Boarders did not buy.

So we flew up to Ann Arbor Michigan again and this time had a meeting in which we asked a lot of questions and did not try to sell. The buyer shared they were going to have a large roll out of music in their current and future stores, but they chose to merchandise the music as retailers did in Europe so our current products were not the perfect solution.

We listened to his needs, visited his prototype store and based on his feedback as well as other clients in Europe developed a new line of security packages. The Sentry line quickly grew to include audio, video, video game and DVD. The Sentry line of security products provided a greater gross profit per unit than our current line of security products. We eventually won Boarders business and presented our new line in Europe, and it turned out this was the perfect solution for Libraries.

Prospects who do not buy often give you the key tips to cause your organization to experience “explosive growth”.

Why?

  • they have no relationship with you, so they share the raw truth
  • they are intimately connected to their problems and are looking for solutions to solve them
  • current customers have a relationship with you, and therefore don’t feel comfortable telling you your current or “new product baby” is ugly

As you focus on growing your organization make sure and capture customer feedback and more importantly tips from those who do not buy from you.

Over time our current customers also experimented with merchandising like Boarders Books and thankfully we listened to that buyer who did not buy at Boarders. When our key current customers needed as new solution we already had a proven design.

Your best new product solutions and services for current products often come from prospects who do not buy from you.

 

 

 

How about your organization…

 

Are you capturing customer feedback?

 

Are you capturing feedback from prospects who do not buy from you?

 

What are you doing with this information?

 

Are your salespeople trained to listen when a prospect says no, or are they supposed to “overcome objections”?

Market leaders understand some of the best tips to explode their sales and profits come from prospects who do not buy.

Technorati Tags: Entrepreneur best practices,entrepreneur,customer tips,Listen to buyers,buyers who do not buy,marketing,win loss,new products,new product design,launch new products,sales,Explosive sales growth,product management

Entrepreneur Best Practice: # 8 When Sales Get Rough…Look for Diamonds

Entrepreneurs often spend so much time in their businesses they fail to look closely at their business. Market leaders understand the value of analyzing their customer and sales pipeline to find diamonds in the rough.

I heard a story about a farmer in Africa who farmed land that was in his family for generations. One day he decided he wanted to sell his farm and move to city and make his fortune. The new land owner was out exploring his new property and his son found a beautiful shinny rock in the riverbed. His son brought the rock home and displayed it with pride on the fireplace mantle. As the story goes a friend came to visit and saw the “rock” on the mantel and asked the new owner if he was aware of what they had? If the story is true it was one of the largest uncut diamonds ever found.

All those years, for generations the family members walked by that same stream and did not see nor appreciate the shiny rocks in the stream. Eventually they sold their farm and went in a new direction unfamiliar to them to “make their fortune.

I see the same story with Entrepreneurs, and leaders in both large and small companies. They are so busy chopping the trees; they fail to see trends in the forest of sales data. When you look at your sales data;

Segment sales into groups and rank them

Compare and contrast sales and profits to prior

Review new sales over the past six months, do they have any common elements…

Map trends that emerge objectively

Far too often entrepreneurs have diamonds in the rough they can only identify once they take the time to analyze and trend map their data.

A quick example; It is a difficult time for most restaurants. I have heard sales decreases as high as 70%. However, I frequently buy lunch at Boston Market. I often see the same people each day and they are all, like me eating the same thing; a meat protein and two servings of vegetables. One guy has lost over 100lbs on their tortilla soup.

I was joking with the employees today as they know me by name. They asked how much weight I have lost, and what was my secret. I shared that I joined the Medifast program, a light workout each day, and I eat one healthy meal per day. Boston Market offers food choices for consumers like me.

If the leaders at Boston Market would survey customers, group the data, they would find a revenue diamond in the rough.( and they may have) Once they identify that diamond, they need to share that they have it with others who are trying to loose weight by eating healthy. Their lunches are slightly more expensive than other lunch choices; however their meals are perfect solutions for dieters who need to eat 6-7 ounces of protein and two cups of green vegetables carbs.

Once they verify this trend, Boston Market may even choose to partner with weight loss programs like Medifast, local fitness centers and so on.They may provide other food choices to serve this customer segment and help them share the benefits of eating at Boston Market with other’s in their community dieting. If the segment is verified  be large enough they may even adjust their media buys to include shows like the Biggest Loser.

How about your company…

 

 

Do you have any diamonds waiting to be found in your data?

 

…You sure?

 

 

Has one of your competitors ever discovered a trend and launched positioning for an existing product that made you scratch your head thinking…why didn’t we come up with that?

 

 

Are you taking the time to see the big picture? Or are you too busy chopping down trees?

 

 

What other trend can you track to find your diamonds when sales get rough?

 

 

Market leaders understand the value in looking at the big picture and identifying trends.

 

 

Technorati Tags: Entrepreneur best practices,entrepreneur,sales data,sales trends,data driven marketing,segment market,marketing,customer needs,Boston market,medifast

When Bootstrapping, Leverage What you Have….

So you want to be an entrepreneur? You sure?

I am just finishing an eBook that will be titled; 50 “UGLY TRUTHS” about owning your own business …and 5 reasons to do it anyway. I have served entrepreneurs in a variety of industries for 25 years. Some of my clients today are people passionately setting out to launch their new service or product. Some have owned their business for years and want to take it to the next level in revenues and profit.

One common area I help entreprenuers  with in the start up, bootstrapping stage, is to focus on; Leveraging what you have….as opposed to making a list of what you need.

Look, I’ve been there….you’ve mentally made the commitment, you have made some investment, you’ve told your family and friends about your business… and you are all in. Very quickly what most entrepreneurs do is start making a list of what they need.

I often see lists that include; new buildings, office space, people, a new printer, fax machine, a custom showroom, new cell phone, new computer, business cards, stationary….and so on. I spoke with one entrepreneur that went out and leased a new Lexus and he has yet to open his first customer. He contacted me because he needed sales velocity because he had no cash.When I inquired as to why he leased a new car…I heard the common response when buying wants versus needs…” I needed to look successful…” Really? (So he must think I am a real loser driving my 2003 Toyota Camry huh?)

 

 

If you are about to launch your business or planning your growth, focus on leveraging what you have and not making a list of what you need. It is in this phase you build your leadership muscles.

 

In 2005 I was asked by an entrepreneur I was serving at the time to launch a new retail business as an independent division of his company VMI. VMI is the second largest manufacturer of wheel chair accessible vehicles in the world. I was the VP of Sales and Marketing and created a repeatable sales process and adjusted our messaging to be more specific to the problems we solved for our three main buyer persona’s rather than” features and benefits speak”. We modified some of our designs based on customer and user feedback and sales were exploding. The owner asked me to take on the new challenge; open a local retail store.

When we launched what soon became Arizona Mobility Products we had arguably…nothing. We did not have a business name, a building, a website, a logo, a sign; computers….you get the idea. So I too quickly went into list building mode. However I quickly learned this business needed to “eat what we killed”…we needed to be self funding.

So like my clients, I went off to think at a local restaurant as I don’t know about you, but I do my best thinking out of the office. I took inventory of what I did have;

  • as VP of Sales and Marketing I had worked with the most successful mobility dealers in the world for the past four years; I intimately knew best practices of market leading dealers

  • I have observed what dealers have done well, and the mistakes like signing leases for expensive elaborate show rooms that only erodes the bottom line

  • I knew our customers, our community, from the market research we did for our new corporate marketing, website, and product designs

  • We had over 400 finished vehicles available for sale in every configuration , ready for sale

  • The company had warehouse space vacant, old extra computers, extra phones

  • A small customer list of local consumers who have bought accessible vehicles over the last eight years or so

  • I had an amazing salesman named Pat with over 30 years of vehicle sales and local connections with car dealers

  • I know sales, marketing, and I have developed sales acceleration programs for companies for 20 years

  • I know that one common problem consumers who need a wheel chair accessible van have is the ability to see one, they lack transportation to get to the dealer

  • I personally have a network of thought leaders in internet marketing, marketing creative, and print marketing support

After making the list, I asked myself ;based on what I know from meeting with other dealers and customers, the inventory we did have, how can we… leverage this to grow this business? To make this operation a market leader?

We could give our customers what they needed, with the specific options they wanted, and we could do it same day.

We didn’t have large fancy showrooms, so we went to our customer’s homes. We did not have an ad budget so I wrote content that was picked up for free in local magazines that served the community, like; Arizona Mobility Products makes doing-good good-business…

With each unit we sold we accrued money to support a web site, ads, direct mail to past customers who’s vehicles were about to go out of warrantee, and business cards. I called my network and asked for favors. I offered to barter when possible and thanks to our service partners we launched.

In case I never said so, Thanks go out to some amazing partners;

John Scott Dixon and his team at Thought Lava for our web site

Jay Wilson and his creative team at Real World Marketing

Phil and Barry at BC Graphics

Bill at Tempe Dodge

Within months we were averaging what most successful mobility dealers sell each month, and after the first year we were in the top 10 dealers nationally in total revenue. We had five people, and we were focused;

“Serve our customers with what they need and want…we bring mobility vehicles to you”

When bootstrapping your business, focus on leveraging what you have as opposed to making lists of what you need.

Lists of what you need are good for the future but they do not fill the cash register…as a matter of fact we did not even have a cash register…smile.

 

Have you launched and business?

 

What can you leverage to serve your market?

 

Did you rush out and buy a bunch of office furniture, equipment, or did you learn to ;“eat what you killed”

Your leadership muscles grow in the bootstrapping stage as you learn to leverage and scale what you have. Those expenditures that add value you keep and those that do not produce your desire ROI are removed.

Although I left AMP years ago to help other entrepreneurs, Pat now running the store and continues to provide amazing service and bringing vehicles to his customers. Pat continues to serve his market as opposed to selling them, and continues to be in the top 10 mobility dealers nationally.

Technorati Tags: Bootstrapping,entrepreneur,boot strap business,start up,fund new business,mobility vans,wheelchair accessible vans,ramp vans
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