Jun 12, 2013 | Change, Customers, Lean, Operations, Sales
The sorts of customers you have play a significant role in defining who you are.
A former client had a customer base that valued the hands on, custom design, and short supply chain they offered on their packaging component items. That group of clients were not buying the high volume, commoditized products, but far smaller volumes for more specialised and bespoke products.
However, promises of large volumes can be seductive, so in the face of squeezed margins and a flat industry, they broadened their product base to include the low margin high volume items required by the large commodity product suppliers.
The equation was changed, no longer did they enjoy an intimate relationship with their largest customers, being engaged in their businesses at a detailed, technical and developmental level, they were just suppliers who could be replaced with product from China or the US.
The result is a flat revenue line over the last 5 years, with fragile margins despite great success in increasing the productivity of their asset base and employees, and a significant lowering of overheads.
It takes guts and vision to turn a customer away, but it often pays.
May 21, 2013 | Branding, Category, Marketing, retail, Sales, Small business
I am old enough to remember doing warehouse withdrawals by hand. Heavens.
Then we had early data managers automate the process, an evolution that pottered on for 25 years, through to category management based on scan data, some of which can dive remarkably deep.
However, we ain’t seen nothing yet!.
The combination of retail data, personal card data, social media and the proximity capabilities of mobile applications will set off another revolution promotional and sales strategies.
Some of the technology is becoming pretty standard, the components of so called Big Data, and there is plenty around to tell you what to do, like this McKinsey article.
However, it takes resources and deep capabilities to effectively leverage the emerging possibilities, so how do SME’s compete?
It seems there are a few strategies that will become mandatory for those who actually want to survive:
- Develop scale. This does not just mean individual enterprises, which is by definition not possible for SME’s, but I see the emergence of “data co-operatives” groups of category marketers (some may even be competitors) who contribute to resourcing the necessary data science.
- Develop deep domain knowledge. This is like suggesting breathing is good for health, but the transitory and superficial culture surrounding product and brand management counters deep knowledge. This is a challenge of leadership, and personnel management, difficult topics for most businesses up to a substantial size. It is however, an opportunity to absorb the skills of the baby boomer marketers that are around, whose Intellectual Capital is becoming available for hire, as a contractor, consultant or often as a Director.
- Do extensive “Environmental Research“, and learn from what is happening elsewhere. For 30 years I have pretty well predicted what will happen in the Australian market by deeply engaging with 2 sources. Firstly the trends originating in the UK, which almost inevitably translate to the Australian scene at some point, and secondly being wrapped in social research, the stuff that details the behavior and attitudes of Australians. The original and still the best is the McKay Report. Hugh McKay has an enormous ability to articulate the complication of peoples lives and break them down into things you can use.
- Recognise and act on the simple truth that marketing is now fully accountable. No longer can marketers argue that the impact of their decisions are too hard to tie back to specific activities and costs. The ROI on marketing activity is now almost as transparent as that on capital expenditure, you just have to understand how to go about it, and get the right tools and capabilities in place.
- Differentiate. Notwithstanding the point above, you still need to stand out from the crowd, and the only way to do that is to be noticeably different, to engage with and serve consumers better than anyone else. The genuine creativity needed to do this will attract a premium, simply because it is so rare, and now the impact can be quantified, albeit after the fact.
Need help thinking about all that, give me a call, I have been there before.
Apr 26, 2013 | Communication, Customers, Marketing, Sales, Small business
The most powerful way to get someone to agree with your idea is to ask them the leading question, and have them tell you.
Ronald Regan used this technique a lot. He did not tell the American people “your economic situation has deteriorated over the last 48 months”, instead he asked the famous question during his election campaign: “Are you better off now than you were 4 years ago?”. The answer was a resounding “NO” and he was elected.
Asking the right question can prompt a favourable, almost pre-deternmined response, but the formulation of the words to convey that response provokes a deeper, more intensive processing of the question. This leaves less room for ambiguity and uncertainty in the way the receiver responds to the question, and considerable committment to the answer.
I have also found it a great way to generate engagement at the opening of a presentation.
Apr 11, 2013 | Collaboration, Customers, Sales
“Relationships” is just a word used to describe the web of give and take that binds people together over time.
A transaction can take place without a relationship of any sort. However, a series of transactions that require choices to be made will slowly build into some sort of relationship, with a brand, a store, a salesperson.
Successful selling in the long term relies on relationships, the transaction is just a score keeping mechanism.
So, next time you sell something to a customer you have not seen before, it would pay you to find out something about them. Ask some polite, human questions, positively reinforce the intelligence of their purchase decision, find out what else you may be able to do for them, and give yourself the opportunity to turn a transaction into the beginning of a relationship.
Mar 27, 2013 | Branding, Customers, Marketing, Sales, Small business, Social Media
Things move on petty quickly.
It is just a few years ago that even ordinary websites had a reasonable chance of being noticed, and communicate something worthwhile. Not now, a site that just offers static information is as relevant as last weeks chip wrapper.
“Content” suddenly became the next big thing, useful information in graphic and video formats, links to other sites, and research reports to the wazoo, all offered in the interests of “engagement” of the reader. Still pretty useful, but the production of content has become so easy, that most of it around is just crap, and it takes effort to sort through it. Research comes from unknown, unqualified sources, video is largely of the result of a kid with a mobile, there is simply so much of it, that no longer does it easily fit the bill.
Social media of various types now fills the role of information, and engagement. Websites are rapidly becoming the business end of the sales process, and as such must be transactional, their relevance as purveyors of information, is rapidly eroding to that of relevance only in the sence of confirming terms of trade.
A website without a capacity to transact is like a fancy car without an engine, nice for enthusiasts to look at, but no good for getting the shopping.
Mar 15, 2013 | Sales, Social Media
A mate recently picked up an great new account, on he had been trying to “crack” for a long time, through a piece of good luck, or good management depending on your perspective. All his product and market knowledge, sales skills and persistence had failed to get him past the gate-keeper and his allies.
He noticed on a social media feed that the autocratic old gate-keeper who had the “repel all boarders” attitude was retiring. A little digging led him to the likely replacement, someone who associated with a groomsman at his brothers wedding.
A few phone calls, and an introduction and he was in a position to discuss delivering a solution to the long wanted customer, and it went from there.
All this from a sales person monitoring and leveraging the power of social media, looking for an opportunity to engage, that in this case emerged from a disruption of the status quo amongst his target companies.
He has consistently said over the past few years that this approach “beats the hell out of cold calling” which was the manner in which the job was structured, and how he was expected to operate.
Seems to me that the old adage of” its not what you know but who you know that counts” has been expanded substantially by social media to “its not what you know, but who you know who knows you both” that counts.
The sales function has been radically socialised by the new tools of the web.
