S&MM SoundOff

The Draw of the Meaningless Promotion

I enter the store with the intention of buying a bottle of Coke, but the yellow cap of the Dr. Pepper bottle grabs my attention. My well-trained eye pounces on the soda like a cheetah on a wounded gazelle. It’s not that I’m infatuated with the color yellow; it’s that I, like all consumers, love the idea of having a possibility—no matter how remote a possibility—of winning free stuff.

After all, that is what the yellow cap screams at me—“Open me, and you may win something.” I’m sold. The instant satisfaction of opening the bottle, looking under the cap and seeing the “magic” words—“You are a winner!”—can keep me coming back to a product for weeks to come.

Unfortunately, the last time I remember experiencing that instant ecstasy was about eight years ago. Nowadays, I no longer get messages about being a winner, or even the disappointing, “Please try again.” Instead, my anticipation and excitement over the contents of the cap are crushed by the typical modern-day message: K862FG9.

Could that be a secret code for “You are a winner?”

While that could be the case, what it’s really code for is: We’re not giving you anything unless you visit our Web site.

This phenomenon is not limited to sodas; rather, almost all companies nowadays that entice you with some promotion to buy their product usually force you to hit up their Web site to see if you’ve won. As a consumer, nothing is more frustrating…largely because I’ve never once been motivated enough to actually do it.

From the producers’ perspective, however, I am forced to tip my hat and offer kudos. It’s brilliant: first, companies get you to buy their product based on a promotion. Once the product is purchased, most people are too lazy to go to the Web site to see if they’ve won—so, the company essentially used a promotion to boost sales that cost them nothing at all. Finally, for the minority of customers who are determined enough to seek a prize, the company still gains by increasing Web site traffic. It’s a win-win-win scenario for the company!

And the absolute worst part of it all: the yellow cap still persuades my purchasing decisions.

I’m not Really Working, but Please Pay Me Anyway

It’s seven o’clock in the evening. I have my shoes kicked off, feet up on the table, T.V. playing and Blackberry in hand. I casually read through my e-mails, spending just as much time channel surfing the T.V as I do responding to clients. I don’t need to be doing work—I would be just as content giving the T.V. the full attention it deserves—but then I’d really be missing out.

‘On what,’ you ask? Overtime pay, of course.

Yup, that’s right people. That Blackberry phone or laptop computer the company was nice enough to give you can not only make your life easier, it can also help make that paycheck a bit bigger, if you are an hourly employee.

On the flip side…

Employers Beware: That Blackberry phone or laptop computer you were nice enough to give your employees in order to help mitigate their workload and increase their productivity can be used to drain your company’s bank account.

In a day and age where every nuance of life is strictly regulated by rules and laws—an age in which lawyers have fully prepared for and addressed every possible liability and any scenario, no matter how far-fetched, that could possibly arise—there is a surprising amount of ambiguity regarding compensation for after-hours usage of Blackberrys and other such devices, according to study by Pepper Hamilton LLP, a multi-practice law firm.

The ambiguity does not end there: There have been numerous lawsuits filed against companies for car accidents that occurred while employees were conducting business on their Blackberrys, according to the report.

I consider myself a fairly laid back person; I like to keep things simple. That is why I am shocked and almost embarrassed to say this, but rules and regulations need to be made regarding this issue.

Not too long ago, people began work when they entered the office at 9 a.m., and were done for the day when they shut their computers off at 5 p.m. Now, people work from their offices, work from home, work in the car and even work on vacations. People work during the day, work through the night, work…alright, you get the point.

Since work is no longer confined to the traditional 9-to-5 workday, companies need to have methods of ensuring that employees are being compensated for the time they are contributing, while at the same time protecting themselves from being robbed-blind by workers performing the aforementioned type of “overtime.”

I do not have a suggestion of exactly how this can be done—I leave that to the lawyers. What I do know, though, is that if the problem is not addressed, given the proliferation of, increasing reliance on and expanding usage of technology, this problem will not go away on its own.

Of Course I Ask Questions

In virtually every sales training workshop I conduct, we discuss the importance of asking questions. And, almost every participant agrees that asking their prospect or customer questions is important. However, the reality is completely different because when I conduct a simulation with these groups, they often leap directly into a sales presentation.

Why the disparity?

Many sales people do ask questions but at the wrong time. Most people ask questions AFTER they have presented their product, service or solution. However, great sales people know to ask questions early in the sales process. They have learned that this will help them prevent objections and determine the best way to position their product or service.

In some situations, the sales person starts with good intentions but gets quickly side-tracked. They ask a question and their prospect’s response causes them to think of a solution. As a result, they immediately start discussing their product or service instead of asking a few more questions. In other cases, they believe that responding to their prospect’s questions is just as effective. Unfortunately, this strategy means you are reactive instead of proactive.

Asking high-quality questions early in the sales process takes a lot of effort and practise. However, learning this skill will differentiate you from your competition and help you close more sales.

Kelley Robertson helps sales professionals and businesses discover new techniques to improve their sales and profits. Receive a FREE copy of 100 Ways to Increase Your Sales by subscribing to his free newsletter available at www.kelleyrobertson.com. For information on his programs contact him at 905-633-7750 or by email.

Giving Your Kids a Helping Hand

We know the downturning economy causes you stress aplenty at work, but if your children happen to be recent college graduates, you’re also feeling it acutely on the homefront. As a senior-level executive who’s obviously navigated his own career path well, how do you help your offspring do the same in a tough economy?

“Finding a first job has become much more difficult than when many of us embarked on our careers,” says John Salveson, a principal with Salveson Stetson Group, an executive search firm. “Parents who want to help their children should be prepared to play an active role in their kids’ first job searches.”

More specifically, Salveson and his fellow principal, Sally Stetson, offer the following advice to concerned moms and dads:

It’s all about you. “If you’re a successful executive, chances are good that you have many skills and contacts you can share with your son or daughter,” says Salveson. “Think about people who you can connect them with, and helpful advice you can offer about their job searches.

“Coach them on preparing fully for meetings and being ready to describe their strengths and interests. Remind them to dress appropriately, maintain good eye contact and turn off their cell phones during appointments.”

But will they listen? “Taking advice from Mom or Dad doesn’t always go smoothly, so think about successful business friends or colleagues who might be willing to guide your child and give him or her some tips and advice,” says Stetson. “Especially helpful are contacts who have management experience and/or human resources insights.”

Back to school. “It’s surprising how few students really take advantage of the placement services their colleges or universities offer,” Stetson says. “The ideal time to connect with the placement office is in the student’s sophomore or junior year. So parents should remind current college students to begin exploring the resources offered early in their college careers.”

Calling in a favor. “If you sit on the board of directors of a large company or know its senior executives well, you may be able to arrange a courtesy interview for your child,” says Salveson.

Get them to grow up. “This generation has grown up on e-mail, text messaging and the Internet,” Salveson notes. “They don’t realize job-hunting is a contact sport that requires them to sit in a room, face-to-face with live people, and carry on a conversation.” By way of preparation, he suggests role-playing and mock interviews.

Ixnay on the Web. “Many new graduates limit themselves only to online job-hunting,” Stetson observes, “believing that once they’ve sent their resumes to job boards, their work is done.” Impress upon your children the need to supplement those efforts with the phone and in-person meetings.

Network, network, network. “Many young people don’t understand the concept of meeting with people who don’t necessarily have a job for them,” Salveson explains. “It may take multiple interviews before they begin to understand the power of networking, which continues to be the number one way people find jobs.”

Ebay beats Tiffany and Co. in Court: Justice is Served

Ebay vs. Tiffany Company: it was bound to be a battle of epic proportions. Four years ago, the super-chic jeweler sued the leader of online auctioning, citing its failure to remove counterfeit Tiffany items from its site. Today, Ebay scored a major victory, as a Federal District Court Judge in Manhattan ruled that online retailers bear no responsibility for removing products violating intellectual-property rights, unless a right-holders comes forward issuing a complaint. It’s a just decision. The total population selling goods on Ebay outnumbers that of many large countries. That being the case, you can’t reasonably expect Ebay to directly police all its merchandise.

Considering that Ebay hosts an enormous assortment of users, selling hundreds of millions of items on its site every year, it’s only practical for product-makers to hunt down cheaters themselves. It requires a lot less individual work for companies to watch over their own goods than have Ebay be liable for verifying something like 100 million products every year. Companies can even look at Ebay’s feedback system, where buyers and sellers give input on transactions that have taken place.

And what makes Tiffany’s lawsuit so frivolous is that it was within its power to inform Ebay of the counterfeit goods, and direct the online auction site to take them down. Since the jeweler determined that 95% of “Tifffany” products on Ebay were fake, it could have done just that. According to one Ebay spokesperson, thousands of companies have made use of this program in order to clamp down on fraud.

The bottom line is that manufacturers need to identify counterfeiters themselves. Ironically, Tiffany and Co. did just that – but then didn’t take the simple step of informing Ebay.  That would have been the right course of action.  Not a silly lawsuit.      

What are some ways your company protects its brands and product from counterfeit and fraud?

Stop the Howdy Calls; Start Unlocking Value

by Greg Krauska, The Change Agent Group, Inc.

Sales managers often force their salespeople into unnatural acts through call quotas.  Your firm will create better customer relationships, more impact and greater revenues when you focus on creating value at key points in the customer experience, not just activity.

I saw an example of this during a recent field research call I made on behalf of one of my Blue Ocean Strategy clients.  The purpose of the field research is to help my client explore and understand what blocks customers from fully receiving value from their suppliers (and what to do about it).

During this particular call, a manager of a health care organization was telling me about her recent experience with a supplier.  "I hate it when the salespeople think they have to stop by and say howdy," she told me.  "I am already a satisfied customer, and I told my account manager that he really doesn't have to visit our office.  We are really happy with their services, but he insists on an in-person visit at least twice a year."

"Why do you suppose he does this?" I asked.

"Because his sales manager makes him do it," she responded.   "In fact, after he had not visited our office for an entire year, our account was re-assigned to another account manager.  It was crazy.  Now I had to train the new rep to get up to speed on our business.  All it did was waste my time.  Now I am thinking of finding a new supplier."

What a shame.  The sales manager's idea was a good one:  stay close to your clients by meeting with them regularly.  The problem is that the process was not designed to focus on value.  It was focused on keeping salespeople being busy. 

in this climate, staying in touch with customers is a great way to show your appreciation for their business and to ensure they are getting value from your products and services.  Be smart about your account management program, though.  Use your salespeople's conversations to find new business while finding ways to create more value for customers - and at the same time, reduce your cost to serve. 

Here are six ways to unlock new value for customers across their entire experience cycle (from Blue Ocean Strategy, by professors Kim and Mauborgne).  Use these levers to help develop your customer call program, to develop a structured account alignment plan, to recraft your entire customer experience or to create a Blue Ocean of uncontested market space.

• Productivity:  How can you help customers get more work done?  Eliminate meetings that waste customers' time.  Help customers be more productive.
• Simplicity:  How can you make it easy to understand your product, service and delivery?  People don't appreciate the work it took to create your product.  They value what they get from it.  Make the complex simple.
• Convenience:  How easy is it to find, use and dispose of your product?  Don't create unecessary hurdles.  Find ways to become more convenient for your customers.
• Risk:  How can you eliminate or manage risks or uncertainties associated with your products?  Potential value is only real value when it is predictable.  Understand the risks your customer face when dealing with you and your industry - and eliminate them.
• Fun and image:  How can you be more fun to work with?  How can you enhance your customer's image?  Fun is allowed, even in tough times.  Figure out how to make your customers the hero in their world.
• Environmental Friendliness:  How can you be more relevant to your customers' sustainability initiatives?  Green can be either hype or real.  How can you be genuinely eco-friendly to work with?

Show your reps how to use these levers to create customer value in every interaction.  Then trust them to focus their energy where it can yield the most return.  Soon, your customers will look forward to your account manager's next visit.

Greg Krauska is President and Founder of The Change Agent Group.  He is an experienced and Qualifed Blue Ocean Strategy consultant, helping his clients rethink their assumptions to unlock new value for customers. www.changeagentgroup.com.

Tips for Salespeople on Saving Gas

Looking to make a major impact on your selling efforts without ever leaving your desk? Instead of wasting windshield time, cruise the information superhighway.

Rick Davis, president of Building Leaders, Inc. and author of Strategic Sales in the Building Industry offers these tips for strategically researching potential customers without ever putting a gallon of gasoline in your car:

Tip No. 1 – Brainstorm. Abe Lincoln said, “Given eight hours to cut a cord of wood, spend two of them sharpening your axe.” Take time out to think freely. Focus on only positive opportunities and methods to learn. Even in these challenging times, perhaps because of this challenging business environment, it is an opportune time to strategize for the future.

Tip No. 2: Seek Long-Term Opportunities. During these times it is easy to panic and accept any sale that comes your way…which you should! But your proactive focus should target the specific audience that creates long term opportunities. Commercial sales, condo associations and one-time sales are valuable short term opportunities. Concentrating on builders, subcontractors and re-sellers of your product will provide ongoing revenue streams for the future.

Tip No. 3: Use the Internet. This tool brings information to your fingertips. Search web sites of associations such as the NAHB (www.nahb.org), the U.S. Census Bureau (www.census.gov) or www.thebluebook.com to stay updated on industry information. Then, visit company web sites, competitive manufacturer web sites and anything you can Google to gain more information on your target audience, their goals and how you can sell to them.

Tip No. 4: Speak Your Client’s Language. Many prospects are difficult to reach on the phone. Rather than persistently leave messages, try dropping a casual prospecting e-mail to prospects and clients. This affords you the opportunity to be precise with your message and your clients the chance to receive your message and answer at their convenience. In the modern world, you must adapt to a variety of conversation mediums. Strive to figure out which is best for each individual client.

Tip No. 5: Manage Your Field Time Effectively. Don’t drive aimlessly around your territory without appointments. If you don’t have a scheduled meeting in the field, then don’t leave your office. Cold calls and casual visits should be fill-in activity that surrounds productive scheduled appointments.

Based in Chicago since 1998, Building Leaders, Inc. has distinguished itself as the premier sales and sales management education specialists in the building materials industry. For more information, visit www.buildingleaders.com or call 773-769-4409.

Sales Techniques from Fiction Writers

I started working on my third book a few months ago; it will be sales-related but written in fiction style (think suspense-drama). To learn how to best write this style of book I attended a Fiction Writer’s boot camp last week. I was surprised to learn several concepts that are directly applicable to selling. Here are three:

Start with a hook. The best novels usually start with a great hook. The more compelling your opening statement or question, the greater the likelihood your prospect will listen to the rest of your message. This applies to cold calling, voice mail messages, email, and, of course, face-to-face meetings and presentations.

Show, don’t tell. Showing characters in action instead of telling the reader what the characters are doing creates a more interesting story. Show the results your prospects can achieve instead of telling about your product, service or solution.

Use colourful dialogue. Too many sales presentations are dull and boring. The sales person either talks in a monotone voice, or reads from his/her brochure, or expects the prospect to sit through slide after slide of technical information. Create energy, excitement and enthusiasm.

Kelley Robertson helps sales professionals and businesses discover new techniques to improve their sales and profits. Receive a FREE copy of 100 Ways to Increase Your Sales by subscribing to his free newsletter available at www.kelleyrobertson.com. For information on his programs contact him at 905-633-7750 or by email.

Gender Bender: Fuel Your Sales—Even When Gas Prices Are High

By Kelly McCormick

We’re all affected by high fuel prices. Every time a car rolls up to the pump, the new economic reality takes an even bigger bite out of our collective wallets. The ripple effect has some buyers thinking long and hard before making buying decisions.

In turn, many companies and independent sellers are ringing alarm bells instead of ringing up sales. Fear-based thoughts—such as declining profits and potential downsizing—dominate these sellers’ every move. Regrettably, many professionals don’t recognize that they’re in the driver’s seat. The ability to be successful is within their control.

Don’t Give Up
Even in times of economic uncertainty, there are those who actually increase their sales. Right now, many sellers are reporting record sales. So what’s up? Don’t they realize that doom-and-gloom forecasts are the headlines of the hour? Shouldn’t they be preparing for the worst? 

The answers are YES and YES. Enlightened sellers know what’s going on. And they should prepare for the worst, but not for the reasons you might think.

You just read the opening of my recent online column for the Manage Smarter Web site. Read the full article to find out how to succeed in any economy. Go to ManageSmarter.com.
© 2008 Kelly McCormick, All rights reserved.

About Kelly McCormick
Kelly McCormick, from OutSell Yourself™, is a sales expert.  She writes an online monthly column on women and sales for Sales & Marketing Management. Get Kelly's OutSell Yourself™ tips and information on her ‘Sell to Women’ and ‘Sell to All Buyers’ sessions and keynote talks at www.OutSellYourself.com. Kelly's book, OutSell Yourself™: How to Sell Without Selling, is soon to be released.  Kelly can be contacted by calling 800-889-9637 (PST).

Good Things Come...

Since joining the Sales & Marketing Management team last August, I’ve been fielding a steady stream of phone calls and e-mails all asking the same question: When’s the new Survey of Buying Power finally coming out?

Despite a three-year absence, it appears S&MM’s acclaimed compendium of nationwide market data is still fondly remembered by many. And their patience is being rewarded in a big way: I’m pleased to announce the Survey of Buying Power is finally making its return, having undergone the most dramatic makeover in its 80-year history. No longer a standalone print publication, the 2008 Survey makes its debut as a fully searchable online product next month. What hasn’t changed, however, is its status as the go-to resource for consumer spending information, with all the statistics, rankings and projections you’ve come to expect.

I’d love to tell you more, but then how would I entice you to check out the cover story of the new July/August  S&MM? Look for it in mailboxes this week!