Business Owner/Leader Stuff

The hard truths

October 22, 2011

How do you get clients to tell you the tough truth?

One of the things I loved about playing chauffeur to my daughter when she was younger were the conversations we’d have in the car.  There’s something to be said about the implied “safety” of not looking the other person in the eyes when dealing with a difficult topic.

I think many couples will attest to how sometimes lying in bed in the dark can inspire one of them to raise an issue that for some reason felt more uncomfortable on the couch or over dinner.

The truth is… the truth is hard.  Even if you candy coat it, sometimes what you have to say is going to upset the other person.  And so you have to decide if you’re going to speak it anyway.

That’s not just true in our personal relationships.  It’s true in business as well. Our customers probably have some hard truths to tell us.  But unless they really love us — they’re not likely to muster up the courage to tell us to our face.

While that sounds great on the surface — after all who really wants to hear the bad stuff? But here’s the rub.

just like in our personal relationships — the longer something festers, the bigger a deal it becomes.  And sooner or later, it can poison a relationship.

So how do you create the “riding in the car” feel with a client?

Hire a confidante: Clients want you to know and they want to tell you.  But they don’t want to hurt your feelings and they don’t want to have an awkward conversation.  But, they will, especially if you ask them to, talk about you to someone else.

We do this sort of thing for clients all the time and never in my 25+ year career has it failed to result in some significant changes and insights.

Conduct an anonymous survey: If you allow them to vent without attaching their name to the document, they  may be more candid.  I think our clients want us to be successful and they want us to be the best

Brave it: Make a point of taking your best clients out to lunch/drinks/dinner a few times a year.  Point blank ask them — how could we be better?  You can ask it in a variety of ways — “if you could wave a magic wand and change something about us, what would you change?”

It’s our job to make it possible for our clients to tell us the hard truths.  It sure beats them telling us goodbye.

 

Photo courtesy of BigStock Photos

 

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What can the average Joe learn from Steve Jobs?

October 10, 2011

I can’t remember a world mourning the loss of a business leader like we’ve witnessed this past week after the announcement of Steve Job’s death.  The fact that FEEL the loss, that we GRIEVE this man’s passing and that we WORRY that no one can take his place tells you something.

What other business leader do you have genuine feelings for?  What other CEO’s speech did you search for on YouTube?  For me, the answer is no one.

As I read, watched and listened to the many eulogies and memorials written for Steve, I kept thinking — but how does who and what Steve Jobs was all about relate to you and me?

Odds are, we aren’t going to work for a company like Apple.  We aren’t going to bring products to market that literally re-define the category.  We aren’t going to have hundreds of thousands of people downloading our “state of the company” addresses.

So what’s the take away?  Other than loving our Apple products and marveling at how they’ve changed our behaviors and habits — how can we emulate the legacy of Steve Jobs when we’re just average Joes?

I believe that Steve Jobs was genuine and that he would have been the same Steve Jobs had he run a hardware store or worked in obscurity for his lifetime.  Here’s what I think he would have been like, no matter what, and what you and I can strive for:

He believed with his whole heart in what he was doing: There were plenty of naysayers and we all seem to forget that Steve and Apple had a falling out.  But he believed in it to his core.  He believed in it enough to go back and try again.

How about you?  Do you believe in your product/service to that degree?  If the company fired you…. would you fight to get back there to finish what you started?

He understood the power of simplicity: Whether it was a speech or a product, Jobs boiled things down to the essential and then made it easy for us to grasp.  He didn’t blather on — he told us a story that led to one core message that we could remember and re-tell.

Take a look at your website, your brochures, your sales proposals and your presentations.  Are you trying to shove five pounds worth of information and bullet points into a one pound bag?  At a glance… could I tell you the most important takeaway?

He knew you couldn’t fake it long term: The man was who he was, warts and all.  He didn’t try to be anything different.  He knew he couldn’t sustain it.  He didn’t wear ties because a meeting was important.  He didn’t hide his giddiness over a new product because it would be unprofessional.  He wore his heart on his sleeve because he understood that for many people — he was the brand.  And brands are all about consistency and trust.

If I visit your office, your website or your home — do I see the same person?  Do I recognize the same values and beliefs?  Even if you don’t own the joint — surely you want to work for a company that shares your values, don’t you?  Do you not allow your business contacts to be Facebook friends because they might see something you don’t want them to?

He understood marketing: Watch this very old and so so quality video as a very young Steve Jobs talks about marketing and brands.  He got it.  I think much of his success can be tied to his understanding that every company, big or small, needs to stand for something.

If you asked your clients what your company was all about — would they list what you sell or would they talk about what you believe?  (Email subscribers — click here to watch the video)

[youtube]http://www.youtube.com/watch?v=vmG9jzCHtSQ&feature=channel_video_title[/youtube]

No matter what you do — you can bring a little of Steve’s heart and business acumen to your work.

Godspeed Steve Jobs — thanks for reminding all of us how it should be done.

HT to our friends at brand dna for reminding me that this video was worth sharing.

Related articles

• Steve Jobs: 11 Acts Of Vision (informationweek.com)
• What I Learned From Steve Jobs (myventurepad.com)

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Do you take yourself seriously?

October 7, 2011

At McLellan Marketing Group, we live by our core beliefs.  One of them is:

We take our work seriously.  Ourselves… not so much.

Let’s be honest here.  None of us save lives every day.  (Okay, if you actually do… you have my permission to skip this post) Sometimes, I think we need to just get over how important our work is and lighten up.  In front of our clients.  Let them see we have a sense of humor about ourselves.

Why?  Because they’ll actually enjoy working with you more.

Check out these planes from Kulula Airlines.  No doubt their work is serious.  They propel humans 30,000 feet into the sky and have to get them back down safely.  But that doesn’t mean they have to be uptight about everything.  Southwest Airlines has nothing on them!

What do you suppose the flying experience is like?  I’d sure want to try it!

That’s delivering the brand and some word of mouth worthiness at the same time!

Check out these photos… and enjoy your Friday.  Be sure you read the labels.  Some of them are hysterical. (Email subscribers — if you can’t see the pictures, click here to view them.)

Kulula Airlines #1

Kulula Airlines #2

Kulula Airlines #3

Kulula Airlines #4

 

My thanks to blog reader Amy Roppe for sharing these with me!

 

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Are you a speed and sputter marketer?

September 30, 2011

Are you guilty of speed and sputter marketing?

I do a lot of driving.  Between work, providing my mom (3.5 hours away) with computer support and fetching my daughter every so often at college (2 hours away) — I’m on the road quite a bit.

I found myself wondering if I’d make better time if I used my cruise control on those longer drives so I decided to experiment with it.  (I know, I’m a wild man!)

I set the cruise 5 miles over the speed limit, which if you’ve driven with me, you’ll know is a little slower than I tend to drive.  So I thought it would take me longer to get to my destination.

Long story short — I definitely shortened my drive time when I used the cruise as opposed to me manually controlling the speed of my vehicle.

It makes sense — it’s easy to get distracted by other cars, something along the side of the road, the book on CD I’m listening to, a phone conversation etc.  And if nothing else, no doubt my speed is varying throughout the journey.

But with the cruise on — I’m absolutely consistent and incredibly steady.  It turns out – that’s the winning combination in terms of making good time.

Since this isn’t a car blog, you’re probably wondering why I’m sharing.  Well — it occurred to me that the same is true of marketing.

Most companies are speed and sputter marketers.  They get a great idea, have a lot of energy around it and blast it off.  But then they get busy and things get stalled.  That monthly enewsletter becomes a sort of quarterly piece.  The print ad series never actually runs.  And the customer survey is drafted or even deployed but no one got around to crunching the numbers.

Their marketing success is very hit or miss and is greatly influenced by lots of outside factors.  There’s no consistency.  And as we’ve talked about before — consistency breeds trust which is what leads to a sale.  (I know, like and trust you)

But if your marketing is on cruise control — that is to say there’s a process that keeps chugging along no matter how busy you are — your consistency will speak volumes.  You will be able to take advantage of the DRIP method of marketing that allows you to just keep a nice, steady stream of connectivity and relevant communication out there — tethering you and your audience to each other.

I can hear you now — how can we do that?  If it was easy, we’d never speed and then sputter.  I’ve got some ideas around that so stay tuned next week.

But for today — think about how your marketing/company is perceived when you stop and start all the time.  Is that who you want to be?

 

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How much should you spend on marketing?

September 15, 2011

How much should you spend on marketing?

I know I need to do some marketing but how much should I spend?  How much do other companies my size spend?

This is probably one of the most asked questions of marketing agencies and consultants.  If you google the phrase, there are 17+ million results.  And yet, we keep asking.  So let me see if I can drill down to the heart of it.

One of the reasons why it’s on everyone’s mind is because there is no magic answer.  No one solution.

Before we get into the methods of determining a right answer, let’s be very clear about these two points:

1) The exact amount matters less than having an amount.  In other words, having and tracking a marketing budget, even if your initial number is off, is much more important than getting the number exactly right.

2) You can have the right budget and spend it on the wrong things.  A marketing plan should always be tied to a strategic marketing budget.

Now, let’s tackle the question.  Here are some of the more effective ways to set a marketing budget:

Percentage of gross sales/revenue:

This is probably the simplest method.  Most experts recommend somewhere in the range of 2-8% of gross sales.  McKinsey & Company is often quoted at 5%.

Most small businesses (less than $5 million gross revenue) should shoot for at least 7-8%.

Industry-specific:

Many industries have their own standard.  For example:

• Consumer package goods:  Up to 50% of projected net sales to launch a new product
• Industrial B-to-B:  1% of gross sales
• Retail:  4-10% of net revenues
• Banks/Credit Unions:  2-5% of assets
• Law firms:  1-4% of gross revenues
• Pharmaceuticals:  Up to 20% of net sales
• Hospitals:  1% of net revenues

Lifetime value of customer:

The idea is simple. You identify how much profit (on average) you make during the lifetime of that customer relationship and determine how much you are willing to invest per customer acquisition.  If you choose this method be very careful that your numbers are accurate.

Goals/Plan driven:

The thinking behind this method is really a blend of some of the others.  Identify measurable goals (# of new clients, % of revenue increase, etc) and then determine your sales equation.

For example:  For every 100 prospects approached, you get 25 initial meetings.  From those 25 meetings, you can expect to get 12 invitations to present a proposal.  From 12 proposals, you will score 4 new clients.  If your goal is 20 new clients, you now know that you need to approach 500 qualified prospects.  You build your marketing plan to accomplish that and assign the costs accordingly.

Again, this method requires very accurate numbers to make the equations viable.

So what do you think?  Which method do you currently use?  If you don’t have a marketing budget, which method do you think would serve you best?

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Is social media right for your business?

September 10, 2011

…is social media right for your business?

There are a lot of social media “experts” out there who will tell you that every single organization on the globe should be participating in social media.  They will point to the cool Facebook fan pages they’ve made or the funny videos their clients have on YouTube and say “see, you can do this too.”  And they’re right.  You can.

The question is:  Should you?

The real answer to that question is “it depends.”  It depends on whether or not it can do one of two things.

1. Save you money
2. Make you money

If it isn’t going to accomplish one of those two goals, then you have no business engaging in it.  Why?

Participating in social media is expensive.  I know everyone talks about how cheap it is…but that’s because they are not thinking like a business owner.  They’re thinking like someone who knows how to open a YouTube channel account or sign you up on Twitter.   It’s true, creating an account on many of the tools and networks is free.  But that’s where free ends.

To integrate social media into the rest of your marketing, which is an absolute if you want to consider it a business tool, you are going to have to expend some resources.  Social media requires care and feeding.  It requires brand integration.  And it requires a well-conceived strategy.  All of those are going to cost time and money.

Don’t misunderstand.  I believe in the power and reach of social media and most of our agency’s clients are using social media tools as part of their overall marketing strategy, but I am not bullish on the belief du jour that everyone must do it and it’s free.  Neither is true.

Here are twenty questions to ask yourself as you consider melding social media into your existing marketing strategy.

How will it save us money?

1. Will it allow us to stop doing something we’re currently doing?
2. Will it allow us to extend/expand something we are currently doing?
3. Will it lower our customer acquisition costs?
4. Will it connect us to existing customers in an efficient way?
5. Will we be able to use social media to create a community specifically for our customers?
6. Will it be easier for our customers to rave about us/create positive word of mouth?
7. Do we look behind the times to our customers if we aren’t there?
8. Will it introduce us to new potential customers at a low lead generation cost?
9. Will it make us more findable (either within the social network or on search engines)?
10. Will it impact our search engine results? (so we don’t have to buy results)

How will it make us money?

1. Will it shorten our sales cycle?
2. Will it create credibility/trust faster among prospects?
3. Can we establish ourselves as the expert?
4. Will it shorten customer service response time?
5. Will it create a sense of accessibility for our customers?
6. Will it increase trial of our product/service?
7. Will it allow us to connect with more prospects at once?
8. Will it increase repeat buying?
9. Will it increase up sells?
10. Can we collect/use testimonials?

If the answers to those questions indicates that social media would be a smart investment for your company to make, then you should be there.  But now you will enter into it knowing that there’s a return for that investment.

Now we’re talking smart marketing, not marketing hype.

 

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With all due respect, what are you waiting for?

September 4, 2011

…what are you waiting for?

I’m all for having a plan when it comes to marketing.  To just start flailing around is usually a waste of money and opportunity.  But for many businesses, the need for a plan and the “right” time is just an excuse to do absolutely nothing.

I’m also absolutely positive that there is one marketing tactic that you KNOW you should be doing but for some reason you haven’t started it yet.

Maybe you don’t have the perfect name for your newsletter.  Perhaps you aren’t sure if you have the stamina to blog.  Or something might happen in the 4th quarter that would negate the momentum of the initiative (translation = you’re scared).

Just start.  Don’t put it off for another minute.

You are letting your head get in the way of your marketing gut.  Maybe you can’t explain why you know it’s the right choice or you have never done it before so you’re worried you’ll do it wrong — whatever is stopping you —  get out of your own way.

Call it a pilot program or a test run.  In your own head, make it sound like it’s no big deal.  However you have to psych yourself out/up — do it.

Marketing is an every day thing.  Not a special day thing.  It’s not the Thanksgiving china — it’s the Corelle dishes you use on Mondays (and Tuesdays…).  So get over yourself and just make this happen.

How can you actually get this done?

1. Starting right now — create a list of what you need to have/do to launch.
2. Set a date.  A firm date that you’re not going to miss.
3. Tell someone (your team, your boss, your customers) that you’re going to do it and when (i.e. We’re launching our company Facebook fan page on Oct 1!)
4. Create a reward for yourself/team to celebrate the launch (it can be as simple as ice cream cones to as big as a day off)
5. Start chipping away at the list.  Now.  Today.

You have 4 months left in 2011.  There’s always going to be a reason not to start.  Isn’t it time that you just did it anyway?

 

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Your customers are afraid to spend

August 23, 2011

…Customers are afraid of the coming tides

Building a sandcastle (with our without the pre-form buckets) is a childhood ritual that brings with it a sobering life lesson.

Unless you are uber cautious about location — the tide is going to come in and wipe out that sandcastle sooner or later.  And if the tide doesn’t get it, beach walkers, dogs or 4 wheelers will do the job.

Young or old, there’s something haunting about watching the waves creep up on your masterpiece, knowing you can’t alter its fate.

I think that’s exactly how our customers are feeling today.  They’re leery of investing too deeply or buying into new long-term programs because they have this nagging fear that the waves are heading back in.

The world economy’s continuing struggle, the US debt ceiling debacle and credit rating slap on the wrist and in general, a sense that it’s tougher to make a buck these days does not bode well for us as marketers.

How do we function in an environment of nervous trepidation?

Acknowledge it: Don’t hide from it.  Don’t pretend it isn’t there.  Be up front about it.  Recognize that your sales cycles are going to be longer.  Build your projections accordingly.  The only way to weather the storm is to be well prepared for it.

Make the most of it: If your customers are less likely to sign long term agreements or are going to want to stretch out their payments — price accordingly.   Create a new, shorter term choice but price it at a premium.  That’s not taking advantage — that’s upselling.

Don’t cut your prices: This is one of the biggest mistakes business people make during tough economic times.  It may make short term sense but it’s a killer long term.  If you reduce your prices — you will never be able to raise them back to where they belong again.

Manage your costs by managing your customers: Not all customers are created equal.  Customers who are not a good fit, demand too much of your time and don’t reward you with their dollars in equal measure are actually draining your company’s resources. Perhaps it’s time to fire some of them?

Re-think your business model: It may be that how/what you’ve sold in the past simply isn’t going to work in 2011 and beyond.  Just because you want to sell it doesn’t mean there’s still a market for it.  Or maybe it needs to be re-packaged or re-tooled.  If you were starting a new business from scratch in your industry — what would it look like?  Should you move in that direction?

You can’t work in marketing or own a business for very long without running into shifts in the economy.  And we’re not going to love every shift.  So you have to be willing and ready to adapt.

How are you/have you accommodated this current economic climate?

 

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You’ve got a bird in your hand. Now what?

August 8, 2011

 

… Do you value what you already have?

Like the old idiom goes…a bird in the hand is worth two in the bush.  I’d argue, when the bird is a customer, the ratio is even greater.

For years, at the risk of preaching, I have been banging on the idea that we spend way too much time and energy chasing after potential customers and way too little time and energy romancing (and creating a love affair) our current customers.

I’ve pushed on the idea that our math is all backwards.  It’s cheaper and easier to get more (and more profitable) business from our existing clients — and yet, our “new business” efforts are always aimed at strangers, rather than those friendly, pre-disposed to love us customers.

Which is why I’ve always enjoyed and respected Becky Carroll and her blog Customers Rock.  Becky is an Age of Conversation author and a huge believer in the power of treating customers like gold.

So when Becky emailed me and asked if I would read her new book The Hidden Power of Your Customers (click here to buy*) I have to admit — I already knew I would like it.  Because I knew it would tout the importance of creating love affairs with your customers.

I just finished it — and wanted to share it with you.  As I suspected, Becky spends time making the points that I’ve  made above.  But the lion’s share of the book is spent showing readers HOW to cultivate and celebrate their current customers.  Becky teaches us the how using the acronym ROCK.

R = relevant marketing. This is all about talking to your customers how and when and where they want it.  Which, of course, means you need to listen/ask them.

O = orchestrated customer experiences. Brilliant companies are very purposeful in crafting customer experiences that deliver delight and marvel their most valuable clients.  It doesn’t happen by accident.

C = customer focused culture. I don’t care how smart or insightful a leader you are — if honoring your customer isn’t baked into your organization’s culture… it won’t happen.

K = killer customer service. This is all about consistency. (as you know, one of the cornerstones to good marketing)  When your brand and values are woven into your organization’s culture…. your entire team is able to deliver incredible customer-centric service, regardless of circumstance.

One of the best aspects of this book is the collection of case studies.  Becky went beyond the usual suspects and tells tales of customer loving companies like Nicor National, Salon Radius and Sanuk.  (Nope, I’d never heard of any of them either!)  The fresh stories add a depth that other books are missing.  However, no book on treating customers can leave out stories from Disney and you’ll enjoy those as well!

If you want to build an organization that truly treats its current customers as a precious commodity — this book will serve as a valuable guide to making it so.

Check it out and let me know what changes the book inspired.

 

*Yup, it’s an affiliate link and I was sent a copy of the book by Wiley. However…as you know, I get 4 or 5 books a week.  I only recommend the ones I genuinely believe you’ll value and enjoy.

 

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What should you buy from a social media savvy agency?

August 5, 2011

…buy the right help from the right agency

Okay…the other day I blew a fuse about social media consultants selling smoke screens and mirrors.  (read my rant here)

Which of course begs the question — what SHOULD you buy from someone who actually has an expertise in melding social media into the rest of your marketing efforts?  (And yes…at MMG we do all of this but so do many other qualified and competent consultants)

Strategy: Whether you’re pretty familiar with all things social or you don’t know your Facebook page from your Facebook status — it helps to have an outsider help you think through your strategy.

They’ll ask questions to get you really thinking about WHY you’re investing resources into social media and WHAT goals/results matter to your organization.

Measurements: A good social media strategist will help you determine WHAT to measure and HOW to measure what matters.

While social media serves up things to count, they don’t always count, if you know what I mean.  That you have 1,348 Twitter followers may be important or it may just be a meaningless number.

A good strategist will help you determine not only what to measure but help you set up a comparative reporting system (we call ours The MMG Digital Footprint) that monitors your progress.

Mechanics: You don’t need to know how to code a blog or customize a Facebook fan page to build one into your marketing activities.  Let your social media consultant either do the heavy lifting or supervise someone else doing it for you.

The great thing about most social media is that it’s plug and play but the truth is — it should all look and feel like your brand.  Which means some customization is needed.

Content Massaging: Odds are you already have plenty of raw material for content creation.  But it’s probably not written in the style, length or format best suited for social media.

Need a white paper turned into an ebook?  Or a research report converted into an infographic?  Let your social media agency take your existing material and get it ready for your friends and followers.

Coaching: Understanding that a touchdown is worth 6 points is very different from knowing the nuances of how to actually get into the end zone.   Many companies fumble the ball (sorry — the last football analogy) by applying old school marketing behaviors to these new marketing tools.

Having someone at your side, teaching you how to navigate the new waters without making any faux pas.  Remember…Google never forgets.

Systems: There are plenty of tools out there to help make your social media activities more efficient and easier to manage.  Whether it’s setting up your listening post (it’s not just about creating content — you need to know what people are saying about your company, your industry, your competitors etc.) or scheduling your content’s publication (so you can time fresh content to appear when your audience is online) — your social media partner can help you do more with less effort.

Integration: Social media (like all marketing tactics) should not exist in a vacuum.  It should fold into the rest of your marketing strategy and efforts.  Otherwise, you are not stacking up your impressions and maximizing every dollar and every effort.

Of course, that’s just hitting the highlights but you get the idea.  There’s plenty for an agency to help you with.  But they should be behind the scenes…not front and center.

There’s no substitute for your smarts, years of experience or personality.  That’s how your prospects meet your brand.

 

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