S&MM SoundOff

Still Waggin'

Chris Anderson (no, not that guy from accounting), the editor in chief of Wired, has a new book out that may change the way you do business.

The Long Tail: Why the Future of Business Is Selling Less of More explains one way the Internet revolution has changed business. Although The Da Vinci Code sells more than an Italian-French dictionary, there is still a market for obscure books. Since Web sites like Amazon, unlike physical bookstores, don’t have to give up shelf space for books that rarely sell, they can still profit from offering low-selling dictionaries. There’s some demand for even the most unpopular product. Eventually, Anderson argues, the aggregate sales of fringe products can overtake the biggest blockbuster.

The takeaway for salespeople is flexibility. Although obvious strategies and packages will continue to work, some clients might be looking for something different.  And just the way Amazon doesn't have to give up prime real estate in a store for a dictionary that rarely sells, offering a variety of sales packages has negligible impact on costs, but possibly a great effect on your bottom line.

To learn more about The Long Tail, read this review, or check out the Long Tail Meetup group.

Marketing Redux

"Gone are the days of the one big ad, the one big shoe, and the hope that when we put it all together it makes a big impact," says Nike vice president for global brand management Trevor Edwards in this week's BusinessWeek. The company partnered with Google in March to launch Joga.com, an online community for soccer lovers. On the site, users can post and read blogs, upload photos, develop personal profiles, and add other users as friends.

Nike’s contribution to Joga.com consists of creating official communities based on a topic or player where users can comment on message boards, post photos, and inform other site visitors of local events. The site is primarily user-driven. Traditional advertising is no longer enough — in an Internet age where consumers can re-edit music and movie endings to their liking, design and order their own clothes online, and configure media outlets to personal news tastes, companies like Nike must feel compelled to let the consumer transform an iconic brand into a tailored personal experience.

Other companies allow their brand to interact with the public without their absolute control. "Unwrapping Macy’s," a reality TV show debuting in September on WE, the Women’s Entertainment network, features various corporate departments hard at work. Viewers will see Macy’s staffers produce the catalogue and the Thanksgiving Day parade. Rolling Stone magazine and MTV are teaming to produce a show in which contestants vie for a one-year job at the magazine. “Jann’s Adventures in Reality Television,” filming now, and "Unwrapping Macy's" join other behind-the-scenes television such as “Tabloid Wars,” featuring the New York Daily News, and “Airline,” starring Southwest Airlines.

In allowing their brand to be associated with a public forum, whether an Internet community or television show, companies present an image to the public that seems unfiltered.  Consumers then feel intimately involved with the brands and with glamorous industries such as fashion and entertainment journalism. In appearing to let go of their absolute hold on a company image, brandmakers are simultaneously getting free press, appealing to a young public looking for authenticity and “realness,” and firmly installing themselves in the loyalties of consumers who now feel involved. Like Starwood’s cobranding partners in A Transformative Experience, these companies released in-house marketing and product control, be it to a corporate partner or the public. Alternatives to traditional marketing use the experiences of consumers, hobbyists, and employees to seek customer interest and loyalty — give a little, get a lot.

Way Too Much Information

Let me paraphrase a line from my favorite comic, Chris Rock -– I love people, but I hate them on the cell phone.  I am astounded by how insular and rude people can be.  Here are three scenarios from my recent business trip:

“The name is STRAUS. S-T-R-A-U-S,” bellowed the fellow sitting near me (and many others).  He waved his arms, grimaced, looked at the ceiling, rolled his eyes, and, I suppose, assumed we all empathized with the exasperation of dealing with someone he deemed subhuman at the other end of his Bluetooth earpiece.  I think he misread the situation.

While waiting in this crowded area for the flight to board, a lady moved closer to me, either in search of a clearer signal or so I could be privy to a private conversation about her sleeping habits.

“Oh, it’s not your fault, I forgot to set my alarm.  I’m not mad at you.”  Can't she find reception anywhere else?

On a delayed flight, while waiting to get ATC clearance, a teenager across the aisle was trying to explain to her mother why she was going to be late.  She kept saying she couldn’t understand what her mom was saying--so, unbelievably, she put her mom on speakerphone.  Did she think that we would all pitch in and help her to decode her mother’s garbled words?

When I teach, I discuss the imminence of cell phone marketing.  Many feel that it won’t work because it’s too intrusive, but I’m not so sure.  Intrusive seems to be the name of the game.  What was it I heard long ago, something about the medium being the message?

--Scott Hornstein

Vacation Unplugged

Last month I did something I haven't done in about three years: I was out of the office for a week.  I traded in the artificial glow of the fluorescent light bulbs of my office for the sunshine of Hawaii. Perhaps even more amazing than the fact that I took a week off was that I did so without doing any work during my downtime.

Taking a vacation used to mean you got time off from the stresses of the office to unwind with family and friends. Now, work-free vacations are like Santa Claus and the Tooth Fairy—when you were more idealistic, you believed they existed, but with experience (and the advent of the BlackBerry and cell phone) came the realization that they were just a myth.

But it doesn't have to be that way. In fact, experts in our work/life balance article this month say that checking out on vacation is not a luxury, but a necessity. Everyone needs a chance to recharge their batteries, and having a period when you can think without distraction may even help your business because it gives you the opportunity to contemplate long-term goals without dealing with the minutiae of everyday management.

For the worst workaholics there will, of course, be some withdrawal. You'll have to work hard to resist the urge to check your voice mail or e-mail. (I did cheat and check e-mail a few times, but just so I wouldn't come back to an overstuffed inbox.) But with some baby steps—such as checking your messages once every few days, or shutting off your mobile devices for a specified time—it is actually possible to relax.

When I came back, I had expected to undergo the back-to-reality blahs. But much to my surprise, I didn't experience much post-paradise withdrawal. I don't think this would have been possible had I not mentally checked out for the week. I still had visions of palm trees and umbrella drinks in my head (as well as the view on top of Oahu's Diamond Head crater, seen above) but with my batteries recharged, I was ready to take on work again.

New Sales Training Player in the Game

There was big news in sales training last week.

Oracle acquired the sales training company OnTarget through a very small sales training and methodology provider out of Dublin, Ireland. OnTarget was formerly Target Marketing Systems, which Siebel acquired in 1999. Later, Oracle acquired Siebel.  The David that swallowed the Goliath was Select Selling.  What's special about Select Selling: they have a pragmatic sales methodology, but more importantly a software tool with a very high adoption rate among the salespeople that use it-and these people sell more.  For many other companies, CRM just doesn't cut it for the people who are on the street selling.  It's often more of a burden than a help.

Ironically, Oracle, a software company that owned Siebel's CRM solution, was unable or unwilling to provide funding, direction, and support to the OnTarget sales-training business unit.  It seemed as though this would be a natural thing for them to have done since sales training and methodology should be closely tied to CRM.  But it turned out not to be that way. 

We have a bit of an interesting story unfolding.  The new company, The TAS Group, has a big opportunity.  They have strong leadership, a real understanding of how technology should support effective selling, and a lot of proven, branded IP in the TAS (Target Account Selling) method.

Not that it's going to be easy.  The TAS Group has a long road ahead, some very tough competitors (Acclivus, Performance Methods, Richardson, Huthwaite, CustomerCentric Systems and many more), and cultural as well as business issues to overcome.

But the sales training industry can use a new player with some new ideas and technology.  The TAS Group is stepping up to the task.

--Dave Stein

Blog Me Up, Scotty!

With news of Enron’s Kenneth Lay’s death, “Ding, dong the witch is dead” was probably not the phrase that many were singing from their rooftops last week. Those who lost their entire retirement savings because of Lay’s exploits probably feel cheated that this man will never face prison for his crimes of conspiracy and fraud, leaving justice unserved. But is that really an excuse for the wild theories about his death that have been flying around the Internet? 

According to a USAToday article, bloggers flooded the Web with their own versions of conspiracies of Lay’s death within an hour of the news. While news events have always had a flair for sparking conspiracy theories, blogs sped up this phenomenon. Enron victims and web enthusiasts alike began to develop their own conclusions about Lay’s death and proceeded to post them online for the world to see, no matter how ridiculously fantastical. Reports ranged from minor myths, saying that Lay used his stolen wealth to pay a mortician to fake his death, to extreme absurdity, declaring that Lay went so far as to kill a look-alike and then assumed his identity.

Oh come on!  Why don’t you just say that Lay was snatched up by aliens and they left a mold of his body so the world wouldn’t suspect the coming invasion of the little green men? This is an example of what happens when blogs get out of hand.  While these posts were not likely circulated on reputable sites, this event shows the need for effective communication and accurate information on company blogs. Managers should supervise and approve blog posts so misinformation and rumors do not spread.

Blogs are valuable modern assets.  They should be used to promote and circulate ideas that enhance thought and knowledge, not as a breeding pool for gossip. When used properly in business, blogs can help open minds, expand viewpoints, and share successful new strategies.

Share the wealth of your own successful blog strategies on S&MM SoundOff, then read Good, Better, Best Practices on S&MM to see how one manager boosted company performance after guiding his employees to effective blogging.

Training for Success

You found him. Yours was a joyous and mutually beneficial partnership. But lately, the quirky, idiosyncratic characteristics you never noticed before have evolved into relationship-destroying annoyances. He’s making you crazy. He seems to purposely ignore your constant directions, and he insists on using his own methods.

A stubborn, annoying husband? No. He’s one of your salespeople, and he’s just doing the same old thing he always has. But what used to be a vibrant and well-honed sales technique now sags. You want him to evolve and grow to reflect changing company goals, new management, and modern sales techniques. Just like that recalcitrant husband, your salesperson needs training.

In a recent New York Times column, “What Shamu Taught Me About a Happy Marriage,” Amy Sutherlund recognizes the futility of nagging her husband and adopts animal-training techniques to mold him into a more-perfect mate.

Her strategy?
• Constantly reward positive behavior, no matter how minor.
• Know your subject, assess her personality, and decide if her problems are changeable or incurable.
• Provide alternatives to negative behavior that will render old habits impossible. For example, if your salesperson has a distracting nervous tic such as nail-biting, instead of constantly telling her to stop, suggest that she take copious notes or use more props/visuals in sales meetings.

Effective, personalized training can be time-consuming, but it’s essential. For statistics on the benefits of sales training, see this S&MM Pulse. And for training help for managers, read “Movin' 'Em Up, Through Effective Training” for ways to develop staid or newbie managers.

What Would You Do?

Think you have all the answers? Prove it. Sales & Marketing Management magazine regularly poses a hypothetical management question to readers in our Closer section. Tell us what advice you'd give to solve this difficult—albeit fictitious—dilemma.

All responses must include a name, title, company, and location. The deadline is August 15, 2006. (Responses may be edited for length or clarity.) The winning response, as well as other contenders, will appear in our October issue. Good luck!

The scenario: Phil Blackwell was stumped. As president of Expire Inc., one of his key strengths was that he usually saw crises coming a mile away--until today.

His top sales manager, Craig Hazard, just informed him that Expire's best customer, Axis Corporation, had recently made him an offer to sell for them. Hazard has not yet accepted the position, but he admitted to Blackwell that he is quite tempted. Axis has offered him a 15 percent increase in base pay, an extra week of vacation, and a 20 percent bonus at the end of the year based on his total compensation. And the fit would be a good one, because Axis has been Hazard's account for five years, so he knows their business pretty well. To top it all off, he has been with Expire for almost eight years, meaning a job switch isn't exactly unwelcome, especially since there aren't many opportunities for growth at Expire lately.

Blackwell asked Hazard to give him some time to mull over the situation, and to come by to talk more later that week, and Hazard agreed.

As soon as Hazard left the office, Blackwell was at a loss about what to do. He wished Hazard well, but as always, was thinking 10 steps ahead: Would Hazard's other accounts look for new firms because their key contact at Expire left? Blackwell knew that Hazard's key strength lay in his exceptional customer relationship abilities.

On the flip side, Blackwell wondered if he should counter the offer. But if he does, he risks upsetting--and possibly losing--his best customer, Axis. He was so confused that he couldn't think clearly.

Question: What should Blackwell do? Bid his top sales manager a fond farewell, and possibly the manager's other accounts in the process? Make a counteroffer, and risk upsetting the company's big customer? Or is there another solution? (Click here to submit your solution.)

A Slice Above the Rest

A recent lunchtime excursion at a local restaurant surprised me into recognizing an obvious sales maxim. When the no-frills pizzeria went beyond the customer service basics for its industry — tasty food, a clean space, prompt and courteous waiters — I learned that attentive, specialized service led to a loyal, eager customer. Me. I wanted to return immediately, tell people, and bring my friends.

The restaurant is a simple, non-chain pizza place around the corner. It is relatively cheap, airy, quick, and has great pizza. Fair enough. The owner himself, however, made this particular lunch special. He had great insight into us, his customers. He came over to the table, shook our hands, introduced himself, asked us questions, seemed interested in our magazine…and gave us free pizza to sample. He sought us out on a personal level and later invited us to bring a group in for $1 beers in the afternoon. I, as a consumer, felt special, wanted, interesting, and interested.

A chorus of “They should cater this pizza at staff meetings,” and murmurs of “Wasn’t he nice,” followed. My lunch group wanted to go back. He didn’t just sit back and let us enjoy the restaurant’s atmosphere and good food. This owner used his jocular, friendly personality to reach out to us and sell us on the place. He went above the standard expectations of the food service industry — speed, courtesy, and customer accommodation. He simultaneously made me feel welcome and pushed his product without being ingratiating.

He didn’t pester our group; he graciously tried to get to know us through pertinent questions about the company we worked for and our roles in the organization. In the competitive restaurant industry, where 60 percent of businesses fail in the first three years, this owner staked out his territory by appearing eager to ensure we would look back fondly on our dining experience. Like the company profiled in The Extra Mile, the owner committed himself to making us return guests with his prolonged, specialized attention and a free gift. In both these cases, future business promises to yield the benefits of pleasant business-to-customer interaction in addition to efficient service and quality goods. I’m looking forward to my next visit.

Surf’s Up! — In the Office?

I love summer.  It is without a doubt the best season with its warm temperatures, beach vacations, great action flicks, and my all-time favorite fashion staple—flip-flops.  But it seems that this popular footwear has recently been causing some controversy around the office. 

More women are wearing flip-flops to the office as companies adopt a business casual dress code, and they are getting away with it.  According to an article in USA Today, Are Flip-flops Damaging Your Career?,” 31 percent of women said that these shoes are a “must-have” for work this summer.  Yet, many companies still view this fashion trend as beach wardrobe, and prefer that is where these shoes stay.  The reasoning is that footwear, just like the rest of your outfit, conveys a certain atmosphere and personal attitude. I guess you just can’t get away from the idea that appearance is everything.  I can see how wearing flip-flops could give the impression that you perceive work as a vacation.  But remember, as times change, so do attitudes and styles, leaving the ideal suit and tie of the 90s at home. 

While I do agree that flip-flops are not the best accessory to wear to a board meeting or when pitching a sale to a client, I think the decision to wear flip-flops to work should be left up to the discretion of the employee.  Personally, from all those agonizing years I spent as one of the few children who attended a school with a dress code, I feel more professional and efficient when I dress less casually, thereby work more diligently.  However, if an employee, who mainly functions “behind the scenes” and doesn’t meet with any public clients or CEOs during the day, feels more comfortable while wearing flip-flops and her work doesn’t suffer, I say “Who really cares?”  If you can’t beat your co-workers, join ‘em.  Although if your boss is continually dressed as though she’s meeting with the president of your company, it may be in your best interest to reflect her style a little more and leave the flip-flops at home. 

Think people are taking the flip-flop controversy a little too seriously? You should read how far this executive went to put his best Face Forward and improve his business image on S&MM.