Sales | No Smoke and Mirrors

FOX and Warner Bros delaying new movie releases to Red Box and other kiosk vendors is like watching a new release of Dumb and Dumber.

In the Wall Street Journal article: Warner Bros. aims to lift DVD sales, will delay arrival at rental kiosks. They discuss how they plan to delay new releases to DVD rental kiosks.

The movie studios are concerned about their DVD revenues.

The market is not only speaking, but screaming how they are raving fans of DVD rentals Kiosks like Red Box.

The current big customers like Blockbuster and others are posting over 22% losses in revenues when kiosks like Red Box are showing consistent and impressive gains. Call me crazy… but your market is speaking guys…can you hear me now? Red Box Kiosks are described as; “The hottest thing in movie rentals is as old as the Coke machine — and just as red.”Their CEO Gregg Kaplan said “We are incredibly proud to achieve 200 million rentals and 10,000 locations nationwide.”

The studios have a choice, they can try to “control” the market, the buyers, or they need to intimately understand the market, buyers and needs and not only embrace the new ways consumers wish to consume content but enable it.

Thirteen years of my work experience was serving the movie distribution, rental and mass retail. How Warner and Fox are behaving is no different than how they all were behaving worried that this new thing called “movie rental stores “would erode their box office revenues in the mid 1980”s.

Market losers try to control the market and they protected their current cash cows while ignoring the consumer’s voice. They ignore the bright lights of growth and change trying to tightly hold on to past business models their markets no longer value.

Market leaders spend time getting to know their market and they quickly understand consumers who rent movies also go to movie theaters and some even buy movies and collect them.

When we rent content it is about wanting entertainment in a convenient and cost effective way for me as a consumer. You can try to control us, however when you do we find other ways to solve our needs and often they are much more severe to your bottom line. Besides, how long will it be before one of your competing studios blinks? Didn’t we live this same scenario “back in the day” And what happened…aggressive smaller studios emerged understanding the needs of consumers and and one of you big guys blinked. Some of you held your ground (more stubborn and stupid, driven by your own needs and egos instead of being strategic marketers) and how did that work for you back then? I remember, do you?

I can remember the 28,000 independent video stores and large movie distributors placing pressure on the studios to not ship new video releases directly to this 14 store chain in Texas called Blockbuster. At the time they were buying through distributors like Big State, Commtron, Ingram, and others. Well that little chain of 14 video rental stores quickly became a market leader.

I am a huge fan of Red Box.

They solve problems for me;

· I want to rent a DVD fast, I like the experience

· I want to rent a DVD and do my grocery shopping in one trip, in one location, one stop ( I am already late for dinner)

· I do not want to pay what Blockbuster charges , no late fees …but still a lot more than $1.00

· I only want the movie for one night

· I don’t want to have to join Net flicks or others and pre plan my month of movie viewing

· At a $1.00 rental, I feel like I receive a value , if I like it I go to Wal Mart and buy it

· I do not want to have to “shop” at a movie rental store only to find out they have all the new releases checked out

· I do not want to pay more for a new release than an older movie

· I do not want to buy movies through my cable provider as they are already raping me with what they charge

· The box office theaters are increasing their prices ( again, feels like they are thinking about their own needs and not mine)

So what are you going to do Dumb and Dumber? Are you going to repeat the past and focus on your needs or are you going to understand the market, it’s consumers and our changing needs and not only enable us to enjoy movie entertainment, but who knows you may even find new products and serves that solve our unresolved problems that Red Box fails to solve?

When I wrote my post : Attention leaders: Don’t look now but your lack of market knowledge is showing… I was talking about companies like you that have lost touch with their markets and they guess , assume, and use their gut and intuitions as their way of hitting their goals. They make inside-out versus market -in decisions and their shareholder values decline rapidly.

Your choice…focus on your internal needs and try to control the market… Or gain an intimate knowledge of your market today and it’s consumers like me and build products and service delivery systems that serve me and solve my unresolved problems.

Oh I can hear the movie exec’s now…”easy for you to say, we have billions at stake here.” Well you are right, you do. But you will eventually supply the kiosk companies with new releases at the same time as others. While you figure it out, Red Box will go to a mass retail store on the day of the new release and buy them. While you figure this out you will remove profit from your movie distributors.

So the question is how long do you want to be a “buggy whip” manufacturer saying this horseless carriage is a fad? Or, do you embrace your market, its changes and evolve into a new company that meets our needs today and into the future?

Maybe you develop a “imovies” since my kids seem to download their favorite DVD’s onto Apple laptops? The only hassle is the download from the disc. Not a big deal, but maybe you take the time to understand why they are doing this, the problem it solves for them and solve it brillantly?

We are all watching…

How about your company….

Are you trying to control your market? How’s that working for you?

Are you trying to control your vendors trying to slow down a new service model in your industry?

Are you the buggy whip manufacturer saying this new horseless carriage is a fad and will never last?

Or are you studying your market, your consumers and intimately understanding what and why they do what they do?

All is not lost by the way as some forward thinking buggy whip manufactures found as they learned to make leather seating for these horseless carriages.

Trying to control a market is foolish and expensive. Understand and embrace your market and become a market leader, not a market loser.

Technorati Tags: FOX,Warner Bros.,Red Box,Market leadership,Market leader,market loser,Blockbuster Video,Marketing,market change

Market leaders know that Goals should not be a “Shell Game”

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Market leading teams understand the importance of clear, measureable goals.

Market losers set loose goals and objectives that change like a shell game, as their mood and business climate changes…this is the quickest way to demoralize a team, lose shareholder value and key contributors.

Market leading teams understand the importance of clear, measureable goals.

Market losers set loose goals and objectives that change like a shell game, as their mood and business climate changes…this is the quickest way to demoralize a team, lose shareholder value and key contributors.

Goals that are not written down are just dreams.

So how do we set goals that motivate, drive growth, but do not feel unrealistic?

What I have always done is build goals from the market up as opposed to from the ivory tower down.

I recommend you segment your market into regions, and then keep peeling the onion until you are down to current and targeted new customers and then products and services.

You must spend time living in your market gaining current information to set achievable goals that drive profitable growth and add value.

From real market knowledge I then recommend building sales playbooks by team member. This is a collaborative effort with the team members who will execute the plan and are closest to the market. We identify sales goals for specific current customers and products .We spend time developing strategy upfront with tactics and key initiatives to achieve our goals.

Where market losers consistently fail is spending too much time deep in the weeds of tactics with little if any time upfront in strategy.

Then we identify new accounts we would like to sell and again assign a goal and develop strategies and tactics to open the targeted new accounts. Next we take the data and goals by product, by customer, and targeted new customer, and new products, and we now build a goal as well as a stretch goal.

The goal becomes our mission; it is what we will be talking about for the next year. The goal aligns us as well as other cross functional team members helping us clearly understand what we are setting out to accomplish.

A stretch goal is always developed to insure the goal is achieved. You are paid on the goal, and if you achieve stretch goal objectives above and beyond your goal you realize a compensation multiplier. Stretch goals become your contingency plan. Stretch goals give you the wiggle room for when things go bump in the night.

What do they say…? “Colonel Custer had a plan”…or “the best laid plans of mice and men”….and they are right. No matter how well we gather market data, “things” happen. Markets change, accounts get acquired, planned product launches are often late, and competitors also are executing their plans.

**Having a stretch goal helps us” shoot for the moon and worst case we still end up a star”.**

When a change occurs we go back to the original goal and review the specific strategies and tactics. If a key account was acquired or closed, we go back to our stretch goals and change the weighting of those stretch objectives. We ask ourselves…” OK, based on what we now know, we need to make up the shortfall . Of our stretch goals, which have the highest probability to make up the delta to goal? What do we need to do? What do we need to ask of others?

In Market leading teams everyone is a member of “the team” and everyone rallies around the goal, and are aligned with a singular purpose of the team’s definition of a win.

Market leaders know cross functional goals tear down dysfunctional silos and make mighty market leading teams.

Market losers play a shell game with their goals.

They have a “goal of the day” and their teams set out to take the hill. Their teams work diligently against difficult odds and often achieve the goal only to find out the goal changed. In this environment, you must be more skilled at watching the shell game masters hands and follow the goal more than the strategy and tactics to achieve the goal itself.

Market losers observe the goal building process (if they allow you to build it from the market up) and “bet the farm” on the stretch goals.

They need all the stars to align perfectly and although your team will achieve the 20% growth goal, and the corresponding increase in shareholder value, your CEO makes you feel like losers because you failed to hit the stretch goal he told the board ( and often the bank to justify additional capital) we would achieve.

Market losers build goals based on the ROI to justify the investment.

They create a number to make the board and investors happy then they slice this home grown goal and distribute the unrealistic slices to each team member. When team members challenge these goals from mount high they are disciplined and told to “make it happen”. If you challenge how the goals were developed you are often left feeling like you are not being a “team guy” and your questions are signs of disloyalty.

Market losers change the goal when they are not achieving it.

For example I hear some entrepreneurs bragging they are not;” losing as much business as others in their market” versus reporting their performance to plan.

Market leaders set aggressive goals and establish stretch goals as contingencies to insure they: do what they say they would do.

Boards, investors, and owners respect teams that do what they say they will do. Investors gain confidence and are more willing to make additional investments in the future.

How about your organization…..

Is your organization a Market Leader?

Is your organization a Market Loser? Why?

Who sets goals in your organization?

Are the goals fixed or are they a shell game?

Do you know your goals? If you are not sure…how does that make you feel?

What kind of company would you prefer to serve…one that sets aggressive market built goals or one that promises the bank and board numbers and then throws goal slices over the wall and tell you to “Make it Happen”?

Technorati Tags: goals,set goals,achieve goals,add value,increase shareholder value,cross functional team,tear down silos

More Big-Money-Wasted by BMW in new ad campaign? We will have to wait and see…

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I read an article on BrandWeek today by Anthony Crupi titled: BMW Pumps Diesel and Anthony did a particularly good job in grasping BMW’s objectives behind what we are about to see in a new BMW ad;

“For us, it’s about changing the perception that diesel is still that noisy and smelly [technology] many people remember from the ‘70s.” “For us, it’s about changing the perception that diesel is still that noisy and smelly [technology] many people remember from the ‘70s.”

The trouble is, as a potential consumer of one of your driving machines…I really do not care Patrick (the guy in charge at BMW) what it is about “for you”.

What problem are you solving for me?

“Affluent Americans don’t want to sacrifice performance for fuel efficiency,” McKenna said. “The 335d can go from 0-60 [mph] in 6 seconds flat …That’s immediate power.”

Now you are talking!

But what about starting my diesel car at the Cleveland airport in the winters…did you solve this?

Although not as focused on the environment and fuel efficiency as I should be, I do follow the cost per gallon of fuel, and if I am not mistaken, one of the historical advantages of why consumers chose diesel vehicles was the lower cost per gallon.

On the one side you have Mercedes, who did a great job of connecting their product to; Luxury, power and torch, and longevity (they run forever)

On the other side you have VW who have raving fans of their economical diesel vehicles that are fun to drive and last forever as well. VW too is tapping consumers on the shoulder today with a message of ““Better performance AND higher gas mileage than a Prius”.

From my days in international sales I still have relationships with past JV partners in Germany that are now friends and they openly share how fun their BMW 3 series are to drive.

GO TALK WITH CURRENT RAVING FANS NOW; CONNECT TO THEIR VOICE, THEIR PASSION, CLEARLY UNDERSTAND, IN THEIR VOICE THE PROBLEMS YOU SOLVE.

What this “feels” like is you are trying to win the hearts and pocket books of “potentials” those people who are not current customers, and are not currently shopping, but thinking about diesel vehicles? So you are actively attacking their perceived problems with your solution. Your current raving fans in the US who own M5’s will pass on your new offering.

So who is your targeted buyer persona?

New buyers of diesel vehicles are more likely to swing into VW’s camp as their position is clearly defined if their need is; fun to drive, economical, and longevity. If what they want is performance and Luxury, they will swing to Mercedes who currently owns this position.

Is this Product Launch (re launch really as you are one of the leaders in diesel vehicles in Europe) an example of “Right idea but late?” We will see…

I am looking forward to see this ad, as I am a huge fan of your vehicles, engineering, fit and finish, just not a fan of your execution of marketing “messaging” as of late as I discussed in my blog post : The Expression of Joy Ad campaign by BMW; May be an Expression of Big Money Wasted http://nosmokeandmirrors.wordpress.com/2009/07/28/the-expression-of-joy-ad-campaign-by-bmw-may-be-an-expression-of-big-money-wasted/ . Business leaders follow you “Big Guys” and I would hate to see smaller businesses clouding their messaging with “creative that requires an interpreter”. (But there I go again being a ROI driven Neanderthal)

Again Patrick, you make amazing vehicles, but because of that my expectation is your messaging will also be amazing. To be amazing I want to “get it” when I see it, and not be like everyone else in a packed movie theater and groan when your ad is played.

I want you to clearly state the problem you solve for me. I do not want some “foo foo marketing creative” that requires an interpreter, because then BMW means Big – Money- Wasted to me.

How about your business….

Does a big expensive ad add value in your business?

Or do they send a message you are disconnected to the market’s true needs?

Or worst, do these big budget ads and media buys make you, as a loyal customer feel you must have over paid for their product if they can afford such Big Money Wasted?

I predict this campaign will be a flop if I need an art director to explain it to me and they do not explain their distinctive competence clearly with an emotional attachment that resonates with me.

Technorati Tags: BMW Z4,BMW,Ads,Advertising,message,messaging,problems you solve,marketing

Are You a Sales “Stallion” or an “Order Taking Gelding” Headed For the Glue Factory?

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When I wrote my post: Are you enabling your Sales Force or emasculating them? I discussed comments made by salespeople selling in today’s economic climate. In addition I shared other leader’s comments about their view of salespeople and my preference to hire sales Stallions over order taking geldings.

I had a couple of salespeople contact me concerned if they were sales Stallions or order taking geldings. So I decided to share some of the questions I asked them on the telephone in hopes it helps others determine where they fall. But before you answer these questions please understand that teams require all types of people with varying degrees of gifts and experience. If you are an order taker, then be the best order taker with the greatest accuracy to detail in your company…just do not call yourself a salesman nor expect to be paid like a sales stallion.

1. In the last 6 months have you identified a change in your buyer’s buying process that requires a new sales tool?

2. In the last 6 months, have you challenged a corporate norm that is self serving to your organization and not customer serving?

3. Would you describe your role as “fighting for your clients?”

4. In the last 3 months have you experienced conflict with key influencers in other departments in your organization in your efforts to better serve your clients?

5. Has an account thanked you for your quick follow up in the last month?

6. In the last 30 days have you taken a bold action to serve your client without seeking your manager’s permission?

7. Are you in the top 10% of performance to goal in your sales team?

8. Are your accounts in the top 20% of most profitable accounts for your organization?

9. In the past week have you presented your management clients needs for approval?

10. In the last 24 hours have you asked for a clients oder?

If you said “No” 2-3 times be careful as you are on the verge of becoming an order taking gelding.

If you said “No” 4-6 times, don’t look now but you have become an order taking gelding. If that is who you want to be, then be the best you can.

If you said “No” to 7 or more of the above questions not only have you become a order taking gelding, but you are headed for the glue factory if you do not change quickly.

Sales Stallions spend 2/3 of their time listening and understanding the needs of their clients. Stallions understand the needs of their clients and solve those needs with the products and or services they represent. They become internal champions who fight for the needs of their clients. Sales Stallions consistently produce profitable sales revenue. Sales stallions are experts in their client’s buying process. Sales stallions are in the top 10% of sales to quota performance.

How about your company….

How well does your organization embrace client needs?

Does your company welcome your fighting for the needs of your clients? Or do your actions politically hurt you?

Have you been told to “sell through your client’s objections” when you share your clients’ needs?

Are your companies ‘policies and procedures written to better serve your clients, or your own organization?

If you have challenged one of those; “how we do things around here” rules how was it received?

The role of salespeople today is to help guide clients to a sale. Salespeople must become internal advocates for their clients and help their buyers buy, versus selling them. If you are a stallion in line to become a gelding to survive in your organization, you need to ask yourself if you will be happy making that compromise for a company that is disconnected to the needs of its market.

Technorati Tags: sales,buying process,sales process,sales stallion

It’s never too late to jump the fence before you get your… “Values”…. snipped.

Are you Enabling your Sales Force or Emasculating them?

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Market leading Sales forces are singularly focused: to sell stuff.

Sales are one of the most accountable areas of the organization and often are under the constant microscope of senior leaders as they have a significant, immediate, and direct impact on the bottom line. Companies must enable their salespeople and not emasculate them. Over the past 25 years I have always preferred to hire the sales stallions over order taking geldings. Stallions require you to have a high emotional intelligence, and they will often try to get your goat, however they consistently produce and add value. While geldings wait to be told what to do, how to say it, and where to go. Stallions are saying get out of my way or I will run over you.

Market losing organizations myopically manage every sales activity and create approval thresholds that slow the sales cycle when the heat is on and the market dries up.

I thought it would be helpful to get inside the mind of a salesperson today, in this economy…so I interviewed a few and below is a summary is what I heard…

It’s simple really, as a salesperson our job is to; Sell. Yes you ask me to do all kinds of little side projects, write reports, and conduct market investigations gathering data to insure what marketing is telling the CEO is actually what’s going on out here in this mystical place called “our market.” However at the end of the day my compensation is specifically tied to: selling stuff. The more stuff I sell the more money I make. My job is to “make it happen” with whatever you folks at corporate throw over the wall.

I tried telling you the reason that last product launch failed was because you created a product because you could and not because you should…but you said I was just making excuses and I needed to “sell through objections…and hit my numbers”

My pay, my commission rice bowl if you will, is about selling as much as I can, as quick as I can, and building relationships that plant seeds for future sales. With the internet my customers are more knowledgeable than they have ever been before about our products and services, (they often know things about our company before I do these days and this really makes me look bad in my market) so my job is really to help buyers solve their problems with the stuff I sell, and help them buy from us. I don’t like to discount our product unless I have to because my commission is based on the selling price, and the more I discount the more units I will need to sell to hit my targeted compensation.

My buyers are really it playing close to the vest right now;

· My buyers have to justify every expenditure to the “higher ups” who they do not have relationships with

· C-level executives need to sign off on all orders

· I have to speak with all kinds of people I never had to sell before; CTO, CMO, CEO, CFO…

· Customers are not stocking up and they are taking much longer to buy, our programs give customers the incentive to buy volume, but they want Just In Time

· My buyers have the C-suite recommending all these competing vendors to our products and my buyers are spending time chasing these leads the C-suite read about or heard about at the country club…versus keeping a close eye on my inventory…so now I am checking our inventory for our customers

· Since you have changed my compensation, I am working twice as hard, twice as long and struggling to make what I made last year

· After the headcount reductions we had at corporate, we have dropped the ball a number of times over the last six months and I am being pulled to fix past sales issues in ;customer service, billing and quality issues ( you see I am out here, I have to stand belly to belly with these folks called “customers” and I can’t hide behind voice mail, email, or transfer them to someone else, if I do not solve these past sales issues they will not buy until the problem is fixed.

· My family life is strained, you see we established a lifestyle based on my past compensation, and when you changed it, it not only affects me, but it touches my entire family. My wife and kids felt I spent too much time working as it was however they justified it because I am a work-a –holic and we were making good money, but now they pressure me..” why work so hard after what they did with your pay..You need to go someplace where you are appreciated like XXXX used to.”

· About 70% of what marketing gives me I do not use. I know it will piss you off, but what I have been doing is writing my own stuff and using some of what Mike also created up in the North West region, you see it is old, but it works!

· I lost another customer last week because we out sourced XXXX to china. I know you said we make more profit and their cost is 1/3 of what it would cost us to make it, but if it’s junk what’s the point. Besides, I have been selling him a lot of other products and now I lost the entire account over the stuff we outsourced?…I know sell through it…

· The young “Hitler youth” you hired in accounts receivables has pissed off a number of my key accounts. I hear the CFO told him to trim 15 days off the receivables aging? Well if he keeps threatening my customers, you won’t have to worry about receivables much longer! Is it true you have him on a commission of what he collects? No wonder he put my largest account on hold for $3500 12 days past due…it’s hard enough out here guys!

· That launch of xxxxx was great, but now we are on back order and my buyers are calling to check on their orders versus buying more.

So for all of the leaders out there who never have carried a sales bag, I hope the above was enlightening.

(do you still think a monkey could do it?)

Having led salespeople for 25 years, what they said did not surprise me, but what took me back was the energy, anger even, in the way they said it. Are you listening and observing the challenges your salespeople are experiencing? Are you creating sales enablement tools to help keep conversations flowing to a sale? Or are you telling them to stop making excuses and “just make it happen”?

I was also taken back by the disconnect that seems to have grown wider when the teams became challenged by current economic conditions.

Market leaders grow closer through challenges and emerge stronger.

Market losers conduct Blame-storming that adds no value and if left unchecked cripples a team.

This disconnect should not surprise me really because I frequently speak with business owners and senior leaders who say things like;

· “I make sales come to me personally with each “deal” they want to give away “Why? “Well because, if I told them upfront the range I am willing to work in they would all sell at the lowest price, and give away the farm” [for what it’s worth this is a trust and respect issue not a pricing issue gang]

· “Saying the economy is tough is just an excuse, when I carried a bag….” (he carried one 20 years ago)

· Marketing ; “ we just spent six figures on the re-launch of xxxx and sales is not using any of the tools we developed, we need to hold them more accountable”[ no, how about understanding the market and the buying process and creating tools to keep conversations flowing?]

· I heard a marketing executive say; “sales is like water, they take the path of least resistance to a sale” [how would that make you feel if you were in sales? Does this sound respectful to you?]

· A CFO said recently; “with what we are paying them they should be working 18 hours a day.”[Really? In most organizations sales is compensated with a base and a commission. Most commission rates vary from 5% to 15%. So Mr. CFO , you should look forward to cutting those commission checks because for every nickel you pay, you get ninety-five cents]

Tough times cause the true nature of people and teams to emerge. Market leading teams use adversity to become stronger.

Market losing organizations “eat their young”.

How about your organization?

What behaviors are you seeing when your team becomes stressed?

What other comments have salespeople heard that show a lack of respect for sales?

What comments have salespeople made that show a lack of respect for other departments?

Do you feel silos (kingdoms) are healthy, or negatively impact bottom line results?

Market leading teams tear down silos and align their entire team to a specific mission and establish key performance indicators that measure what matters. Market leading teams reward cross functional behavior and crush kingdom building.

What kind of a company do you work for?

It’s an Epidemic! …Poorly executed Email Marketing Campaigns

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Executing a poor Email Marketing campaign can not only black list you as a spammer, but send your targeted customers running to your competitor.

Your actions speak much louder than your message!

When I posted; Is your Email Marketing sending business to your Competitors? I was concerned how this salesperson, at this particular company that provides email marketing lists for business development did a number of things wrong. Not picking on this particular person, but my desire was to illustrate what not to do in email marketing, and then I received this;

Hi Steve, [my name is Mark! I am already not impressed!]

Are you looking to acquire a fresh-targeted email contact list? [Actually yes, I am] Would you like to update missing data to your old database? [Yes that sounds good too, bugs me you did not use your own product to find my right name, but I will read on]

Set1[what’s a set?]: List Acquisition: We assist Companies to acquire business list specific to their target audience with contact name, business name, job title, mailing address, telephone number, fax number, website URL, SIC codes, employee size, revenue size, Industry type and contact person deliverable email address. Companies can choose from the following selects: [again, sounds good, but if you are as good as you say why you got my name wrong?]

· Vertical Market (SIC)

· Company Size by Employee

· Company Size by Sales Revenue

· Fortune 1000 Companies

· Job Function, Title & Seniority Level

· Geographic Location

Set 2[ there’s that word again; set, it may be something your developers use, but as a buyer this is not may language]: Appending: We can work with your existing in-house database which includes de-duping and providing only unique records. Following are the services includes in first set of solution. This solution is related to working with your existing in-house database.[ok, but what problem are you solving for me, and again, call me crazy but how can I trust you with my data when you can’t even get my name right? I feel working with you may be risky, I don’t know….]

Email appending – Appending missing emails for existing contact [sounds good]
Multiple contacts appending – appending multiple contacts irrelevant for list of companies [huh?]
Decision makers appending – Appending C-level, V-level and Director level decision makers for existing list of companies
Target title appending – Appending [appending? This is not how I talk, I can figure out what it means but you really do not know me do you?] contacts based on your job title specifications
Data appending – Appending any missing information other than emails

We would like to offer you free append test [really? Why are we talking price? How did you know I wasn’t ready to buy?]for 25/50 business records/consumer records to just test our quality of services.[ do I need to test your quality, yah, after you got my name wrong I do not feel all that warm and fuzzy]

Please let me know your thoughts. If there is someone else in your organization that I need to speak with please let me know or forward this email.[ oh, so again you don’t know me, you are not sure what I do, my title, and I should send you to someone else to do your job for you? Maybe you should buy a list of executives with their title, email, NAME,…oh that’s right that’s what you do?]

Regards,

[Name removed]

Business Development [how’s that working for you?]

800-708-xxxx [good, you gave me your phone number, what about email? I guess if I am interested I could hit reply…but if you used one of those mass email services so I can’t black list you, you will never receive it…] [Shame on you! You work in the space of email marketing and no opt out? Your company must not do much business,… I think I’ll pass]

How about your company, are you sending email marketing out like the above? You sure?

What could this guy have done better? ( I need experts in the space of email marketing to chime in, I know this feels wrong, but I am no expert, I am just a buyer, who has unresolved problems and I look forward to giving money to those that solve them.

Are you blindly sending out emails to your targeted accounts…hoping they will stick like the guy above?

Can your targeted key new business accounts hear your message over your actions?

Is your Email Marketing sending business to your Competitors?

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If you feel a poorly executed email marketing campaign is better than no email marketing at all; you are wrong!

Email marketing if properly executed helps buyers buy and can reinforce your message with prospective buyers for future purchases. If poorly executed you will also make an impression, a negative one that will not only last, but spread.

I can tell when the end of the month is approaching by the amount of email spam I receive. Below is an email I received today that illustrates a number of mistakes you must avoid in email marketing.

Dear Customer,

We are dominant player in the Business List Industry with over 40 Million B2B contacts and 200 Million B2C contacts. We have all varieties of business records that come with complete contact details including working business email addresses.

We can assist you in reaching out to your target audience in multiple ways. We can provide you with updated information such as contact name, email address, phone number, fax number, mailing address, job title, etc…

Job Title Scope: Reach top-level executives like CEOs, CFOs, CTOs, COOs, CIOs, Presidents, Chairman’s, GMs, Mid level Managers, Sales and Marketing Managers, HR, Managers, Finance Managers.

Our products and services are:
Email Appending, Email List Acquisition, Email Blast, Email Lead Generation, Data Appending etc.

If the in-house database that you has information that has gone bad or is incomplete, we can update it with the above mentioned fields. Let us know the criteria for your target audience and a sample file will be mailed. Can you give me some specifics regarding your target audience?

Example: In business, are you interested in only a certain type of business? Are the gross revenues of the company important? Do you prefer to target companies with a particular employee size? Do you need the contact name and title of someone at the business you wish to target? If consumers, do you want to target people with a certain income level, occupation, children at home, etc.

If you would prefer to advise me of your requirements via email, my email address is XXXXXX

Please let me know of a convenient time for a quick call, looking to talking to you soon.

Regards,

[I removed the name]

Business Development Manager

We respect your privacy. If you want to stop receiving emails from us, please send a reply with the email subject line as “Leave out”.

My thoughts;

· First, I am not your “customer”, I do not know you and to use a generic “Dear Customer” quite frankly is insulting. What it means is you have no clue who I am and you have already lost me. You do not know me, care about me or my needs.

· Next, as I read through your message you provide, sell; email contact information, and you go on to say you have a core competency in reaching top executives…Really? If your product is so good, why didn’t you use it when trying to engage with me?

· “Email Appending, Email List Acquisition, Email Blast, Email Lead Generation, Data Appending etc.” …OK you have explained “what” you do, but what problem do you solve for me? Oh I get it; I am supposed to figure that out on my own…

· “Are you interested in only a certain type of business? “ OK, yes, I am interested in certain types of businesses, again if you have a competency in this area why didn’t you demonstrate your knowledge in my type of business?

· “Are the gross revenues of the company important?” Are you kidding me? Now you are insulting me again. I also reflect; what if I asked the CEO of one of the companies I would like to help this question, it would be a disqualifier.

· You did provide your email that I X’d out in case the CEO of your company is reading this post, but you failed to provide your phone number?

· Good job you did do one thing right that I will use; “We respect your privacy. If you want to stop receiving emails from us, please send a reply with the email subject line as “Leave out”.´

· And to add insult to injury when I try to close this message I am prompted that you want to know if I read this? NO! Shame on you!

After receiving this message I will never buy from this company, never! Not only will I not buy, I am so shocked by this poorly executed message I will tell a number of those in my network this story and I am sure they too will not want to partner with you.

If you are using email marketing, learn from the mistakes in the above and;

· If you do not know a contact name, title, do not send

· “eat your own dog food”, in this example, if you sell contact names for email marketing you had best demonstrate a competency in the space you play

· Give me an opportunity to opt out

· Know something about your customer, their industry, and more importantly know your market and it’s most pervasive problems.

· Once you know those problems, share how your product or service solves them

· Don’t ask questions that insult my intelligence

· Provide your phone number, what if I did want to call you?

How about your company?

Are you participating in email marketing? If so share best practices.

Would you buy from this vendor?

Technorati Tags: email marketing,marketing,email,sales,business developemnt

The Expression of Joy Ad campaign by BMW; May be an Expression of Big Money Wasted

5 Comments

Companies spend millions and often billions to advertise their products in their marketplace however the effort to be creative often results in a dilution of their message. When your message lacks clarity, it requires an interpreter…and the variability of the individual interpreters’ ability (your salespeople) to articulate your value is not something market leading companies leave to chance today.

When its 114 degrees in Scottsdale Arizona there is not much to do on weekends unless you head for the higher elevations to escape the heat. As I said when I wrote: Are interruptions “transforming “your customers into shoppers again? I like to go to movies. Now that we are into the hottest part of our summer I am seeing a number of movies.

Is it me or are the ads prior to the movies getting longer? Do they really need to advertise TV series in movie theaters? Recently, I observed something interesting, the “Expression of Joy ad” by BMW. The ad starts out with a Z4 driving through paint and painting the surface like it were a huge canvas, with just one problem…when the ad came on the audience in the theater verbally groaned. So I’m not the only one who has seen this ad and hates it? Is it the music or is it because the ad feels like “the never ending ad?”

Personally I think BMW’s make amazing vehicles, and I get what they were trying to do with this ad; however the audience I shared the theater with not only failed to appreciate this ad’s artistic expression, but verbally groaned when the ad started.

I hear comments in front of me sharing their disdain for this ad. Now mind you, there were a number of other ads from an air conditioned indoor storage facility to a counter top manufacturer who supplies four different surfaces based on your needs, budget, and overall design objectives. None of the other ads caused a group audience response like the BMW ad, again…interesting.

Did BMW test this ad prior to its release? I am curious what the total cost of this ad was and is it driving the desired sales revenues, or just another Addy award for the creative team that developed and produced this masterpiece?

To me this ad says: our cars have so much margin in them we can afford to produce ads like this…

The reason for this post is not to bash BMW, as I said they engineer amazing driving machines, their fit and finish is best in class, but more so to challenge everyone reading this to listen to the responses your market is making to your advertising. Are you listening? Is your advertising about driving revenue, adding value to your bottom line, or helping your ad firm win another award to dust on a shelf before their next new account pitch? As I discussed in my post: 88% of Those Surveyed Said Advertising Services Have Become Commoditized? Ad Firms Heal Thy Self! I discuss how ad firms must fight the perception their services have become commoditized. Perhaps the firm that created the BMW Z4 ad swung the pendulum too far in the creative direction? At the end of the day, my single opinion does not mean much, but an audience of consumers in north Scottsdale Arizona, groaning when your ad comes on should get BMW’s attention.

Are you listening to the response or lack of response to your advertising?

Have you tested your soon to be released creative in your market?

When you developed the creative, did you do so with a specific buyer persona in mind?

Or do you think I am just a ROI Neanderthal who lacks an appreciation for artistic expression?

Market leading companies create messages that resonate not repulse their market.

Technorati Tags: BMW,BMW Z4,message,marketing,creative,addy award,drive revenue

Image of ad came from http://www.zercustoms.com/news/2009-BMW-Z4-Expression-of-Joy.html

Mentor Moment #3: Just because you can, does not mean you should

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Inventors and entrepreneurs are launching new products and services daily… and 80% will fail and be taken off the market within 18 months? Why?

The biggest reason is companies building products because they can and not necessarily because they should. For example, the photo to the right of the iBum by designer Tomomi Sayudais one of those products. For all those office pranksters who find joy in mounting the office copier to copy their back side, Tomomi has now designed you a chair with a copier in the seat. This Japanese designer built a solution “butt” should they have? In addition to the cost of development, launch, and marketing, you also have the opportunity cost of what your team could have been spending time on, and you don’t want me to discuss the negative impact on your team’s morale and damaged trust with your buyers.

You may say; “Well Mark, this is a ridiculous example…” Really? Is it any more ridiculous than: a refrigerator with a computer screen and Internet access, or how about a new refrigerator, microwave and iPod charger for college student dorm rooms. Is it any more ridiculous than a company spending millions developing a pen that will write in the zero gravity of space? When the Russian space program chose to use a pencil? Or how about the laptop manufacturer who spent over 18 months developing a scented laptop. What problem did that solve? Could they do it…yes. Should they have built it?…. Your call.

How do you know if your company is launching products they built because they could and not because they should?

· Customers do not understand the value of the product

· The product or feature was built without a known problem it solves

· Marketing is asked to “create a need for this product”

· You discount the new product or feature by at least 25% within 3 months of Product Launch

· Within six months of launch, marketing asks to double the budget

· Sales misses projection ( and ROI targets) by 50% or more

· When sales cannot gain placement, development and or engineering says “we cannot help it if we have dumb customers”

How about your company….

Do you build products because you can or because you should?

What other examples of products have you seen that were built because they could?

Is there an example of a product built because they could, that turned into a hit product?

If you are in sales, have you been asked to gain placement for products your customers did not understand or need? How did it make you feel? How did it affect your relationship with those buyers?

Just because you can does not always mean you should

Technorati Tags: new product,new product development,innovation,mentor,new product sales,launch,new product launch

Mentor Moment #1: Don’t let them know where you tie your Goat

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Leader to leader, I want to share some key advice; do not let those you serve know where you tie your goat. You may say; “Well I’m not a leader…” Well I need to challenge you, are you a parent, do you have associates that come to you for advice? As I wrote in the Leadership two steps, if you have followers, I hate to tell you, you are a leader.

Just recently I had a friend say “Mark, don’t let them know where you tie your goat” I thought this was a very clever way of sharing a pearl of wisdom I heard lived long ago. Over the years you learn not to let customers , bosses, peers and employees know how to get your goat. If you fail to do so, the people you work with, will work you.

So what happens when someone gets your goat? For me, an inner anger burns and the minute it starts I am limited. My Creativity, my problem solving skills, my leadership ability, and my communication choices suffer. The key is to not let them know where you tie your goat(s).

For example, one of my goats is tied to those who bully others that are defenseless. (I realize I am not following my own advice here by letting you know) It has always driven me nuts when someone in a perceived position of power treats those with perceived less power wrong. When I was helping one company, the CFO learned where I tied this goat. So when I was challenging something he felt was his silo, his domain, he would verbally attack one of my team who was not present. At first I fell into the trap and this diversion tactic worked. However after seeing the pattern, I would quickly diffuse his attacks, table them for another a discussion and keep the meeting on point.

There are many mentor moments I have learned over the years. I will be sharing them over the next few weeks in my posts. Please share them with your team, and if you have the courage…share them with your leaders!

Do you have some mentor moments? Please share.