C-Suite Network™

Menu

Month: November 2018

Categories
Personal Development Sales

3 Necessary Business Functions That Cannot Be Outsourced

It always hurts to hear a brand-new “wantrepreneur” discussing their first steps when going into business. They typically say, “Well, if I’m going to go into business, I’m going to need to get an office, a production facility, and a warehouse. I’m also going to need a new car, a new truck, new furniture, and new machinery. Oh, and I’m going to need a full staff.”

For some reason, they think their success is based on acquiring those items. They love to hear about how similar startups get funded. Presumably, the main reason for all that funding is to support the massive overhead, instead of using income from sales. This is known as a “burn rate”. The goal here is to get the business started with enough money to pay your bills until sales “take off”, also known as a “runway”.

We can’t help but cringe when we hear this. Yes, businesses will eventually need these things, but until the buildup phase is complete, they will rack up monthly costs and are a giant millstone around their necks, weighing them down while they’re trying to push upward and achieve positive cash flow. As if it isn’t hard enough already! Putting precious time, energy, and money into building out a business before we even have positive cash flow? NO!

A few startups might know that sales will be the hardest part. They fear it takes too much energy for too little return, especially at first. They can put that to the side and do something that “shows”, like spending the cash on overhead and assets. Some other startups could simply underestimate the focus, energy, and time it actually takes to make a sale happen.

What’s plain crazy to us is how easy it is to borrow money when hard assets are involved. This lax lending policy tempts businesses to wear that millstone. It’s almost like investors and lenders believe they can take the assets back if you default. Even if they can, they’re difficult to move and won’t be able to return the cost in full.

Investing your time, energy, and money in staff and bricks and mortar could distract you from your main objective—sales! The majority of this stuff can be outsourced anyway. Once you get rid of your monthly millstone, you may realize you don’t want to drown yourself with overhead and assets, and instead put more energy into sales. We think that sales earn these assets—not the other way around.

When Barefoot Wine started, people asked us, “Oh, the wine business! Where are your vineyards and how many acres do you have?” We simply responded, “None! But we have sales – lots of sales!”

We couldn’t secure financing when we started, so we had to make sales early and often just to keep our heads above water. We couldn’t afford a millstone around our necks. We had no runway. So, to compensate, we outsourced everything we could. Now, we recommend this “beyond lean” startup approach to our clients.

We think you can outsource just about everything except accounting, sales, and quality control. When you do the sales yourself, especially to get your business going, you develop a deep respect for the customer and how your goods and services fit into the market. As you grow your company and train your own salespeople, this will be a priceless experience.

Accounting in-house is essential. Your numbers must be available now! You can’t wait weeks to see what’s happening in your business today. It’ll be far too late! The business plan you spent so much time creating is now replaced by a cash flow report. And cash flow management is a critical startup skill.

Yes, you can outsource production, but it isn’t possible to outsource quality control. Someone in your facilities needs to ensure quality. In your production contracts, you must specify all the necessary requirements before you pay for these goods and service. And you must specify in great detail.

But mostly everything else can be done by somebody else. In a lot of cases, maybe even better than you could do it yourself. Don’t crush your business with overhead, with bills hungry for your precious cash. Get the hardest job done first—sales! You’ll be shocked by how many vendors come out of the woodwork to help keep those sales going. After all, your sales pay their bills.

The next time a “wantrepreneur” shares their startup plans with us, we’d love to hear, “To get started, I’m outsourcing everything except for sales, accounting, and quality control!”

For more, read on: http://c-suitenetworkadvisors.com/advisor/michael-houlihan-and-bonnie-harvey/

Categories
Best Practices Economics Entrepreneurship Industries Marketing Personal Development Sales Technology

How Technology Changed the Billion-Dollar Ad Game

The advertising industry has had a long and successful history. It has been a very big business, especially for brands like Procter & Gamble, which topped AdAge.com’s list of the world’s five largest advertisers with $10.5 billion in advertising spending.

For decades, the personal care company kept its products front and center in the minds of consumers – on TV, in print and eventually online. The formula was simple: P&G would spend a huge amount on advertising and loyal customers would respond by buying its products.

That is no longer the case. Technology has changed the ad game for P&G – and not in a good way.

Brief Timeline of Advertising Game-Changers

So if your company is like P&G, what should you do? Start with a fresh look at how much technology and advertising have changed over the last 30 years.

As you look at this timeline, pay attention to how technology worked for – or against – advertisers throughout recent history. Then, use my Hard Trends Methodology to predict what’s next.

1990s – Hundreds of cable channels and the Internet launched, and advertisers jumped to buy space wherever their audiences would be.

Early 2000s – TiVo was one of the first disruptors to these seemingly endless advertising avenues. For the first time, consumers had power over when they got their content and began to skip the ads.

2001 – Next came iPods, which could play downloaded media while consumers were on the go.

2004 – Amazon.com launched as a virtual bookstore and began laying the groundwork for online retailers

2006 – Social media pioneer Facebook opened the News Feed, in which anybody – and any brand – could self-publish content. Facebook ads, for which advertisers once again had to “pay to play,” wouldn’t come until later.

2007 – Netflix went from DVD to streaming and never looked back. Consumers could now also choose what to watch, whenever they wanted to.

Also in 2007 – Smartphones came on the scene, allowing consumers to carry all types of media in their hands. The ad industry had to go mobile – often in addition to going traditional. Though it wasn’t easy to navigate at first, by 2015 mobile ad spending would top $28 billion.

2008 – Spotify started running on advertising dollars initially, but also offered premium, ad-free packages to consumers at nominal prices.

2009 – In the late 2000s, YouTube began allowing pre-roll ads; advertisers were once again able to recapture a very captive audience.

2012 – Facebook purchased Instagram. It would be five years before the $1 billion gamble would pay off, but in the meantime, real people became the faces of brands. The newest media-buying currency was the influence of the crafty, hip or carpool moms who had become spokespeople.

2015 – Amazon.com hit a milestone as it accounted for at least half of all e-commerce growth. Many experts attributed sales success to the debut of the company’s one-click ordering.

2018 and beyond – Not only is data-driven advertising becoming more popular, it’s expected in today’s “show me you know me” consumer culture.

If you use my Hard Trends Methodology to look ahead to the future of advertising, you’ll be able to anticipate that the next decade will move even faster. Even more devices are likely to be developed, and they will ultimately be connected to each other as an integral part of our lives.

Now is the time to learn to anticipate the next wave of technology. Start with my book, The Anticipatory Organization, which is fittingly available with one-click ordering on Amazon.com right now.

Categories
Best Practices Body Language Entrepreneurship Management Marketing Negotiations Sales Skills Women In Business

‘Body Language Hands’ – How to Immediately Win More Negotiations

“People use their hands to add meaning to their words. To capture more of their meaning, listen to their hands.” -Greg Williams, The Master Negotiator & Body Language Expert

Do you observe the body language of someone’s hands when you’re negotiating? To win more negotiations, you should listen to their hands! Hands convey a lot of hidden information in a negotiation.

There’s so much information conveyed by the way someone uses their hands. People use them to show appreciation by clapping. They display their hands to exhibit displeasure in other ways (i.e. sitting on their hands).  They also use their hands when speaking? Hands give insight into the thought process that someone has. As someone is speaking, their hands add or detract from the message they’re delivering; you do the same when you’re conveying information, too.

When there’s a difference between someone’s words and their body language, pay more attention to their body language. It will disclose someone’s intent more than their words. Consider the following lightly when conversing with someone. Consider it more strongly when you’re negotiating.

Hands close to the body:

The closer someone has their hands to their body, the more guarded are their thoughts. You’ll see this display when someone senses perceived threats to their well-being. Their hands are in that position to protect themselves from perceived indifference.

If you see this in a negotiation, it may behoove you to put the other negotiator at ease. Based on what caused him to display his guarded gesture, you may have to address that point before you can induce the comfort you seek to invoke in him.

Hands with interlocking fingers :

When you observe a negotiator in this position, he could be displaying a demeanor that states that he’s not open to your offer, suggestion, or counteroffer. To confirm your observance, consider questioning him about the meaning of his display (e.g. I noticed you have your hands closed and your fingers locked. That usually means that someone (use ‘someone’ to avoid ‘you’ – the latter may make him defensive) is not open to something that has occurred. Is anything wrong?). Then, note his response. If he unlaces his fingers and opens his hands, while saying everything is okay, ask him to proceed. Two things will have happened. One, you will have altered his body language, which will entice him to become more mentally receptive to you and your offers. Two, you will have given him the lead in the negotiation. Based on what he does with it, he’ll give insight about what caused the initial display that you brought into question. And, he’ll give vision to what he’d like to discuss. That will highlight what’s important to him.

Hands pushed away palms out:

Take special note of this gesture because it indicates that the originator wants no part of what caused him to display the gesture. You can note future discernment by the degree that he forces this gesture outward. Also, be aware of this gesture when the other negotiator voices his assertion that he’s in agreement with you. In this case, his body language belies his true feelings. Believe that more than his words.

There are other hand gestures that give insight into a negotiator’s thought process. We’ll leave those to discuss at another time. For now, note the signals mentioned above. In so doing, you’ll be more perceptive. That will assist you in winning more negotiations … and everything will be right with the world.

Remember, you’re always negotiating! 

After reading this article, what are you thinking? I’d really like to know. Reach me at Greg@TheMasterNegotiator.com

To receive Greg’s free “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here http://www.TheMasterNegotiator.com/greg-williams/

#Negotiator #Business #Management #SmallBusiness #Money #Negotiating #combat #negotiatingwithabully #bully #bullies #bullying #Negotiations #PersonalDevelopment #HandlingObjections #HowToNegotiateBetter #CSuite #TheMasterNegotiator #psychology #NegotiationPsychology

Categories
Best Practices Marketing Personal Development Sales

An Insight from the Queen of the Customer Visit

A respected friend gave me a great insight a few days ago about her role in organizing customer visits…you know, when a large prospective customer comes to the factory/headquarters to perform detailed investigation of one or more critical issues.  She was renowned for arranging high-impact presentations…when she got the right inputs.

My friend was in charge of scheduling and all local arrangements once a visit request came in.  She described one of her major challenges:  when a salesperson requested a visit without a plan.  A visit is a significant investment for both buyer and seller, and needs to create maximum impact.   Frustratingly, my friend was hamstrung without understanding what issues were significant – especially any key issues being weighed by that customer.

Then she dropped the Insight Bombshell.

Key insight:  it was only low-performing salespeople who said “just wow them” or words to that effect. By contrast, high performers consistently articulated what had to happen during the visit, what issues to emphasize, and what “success” would look like with each attendee. Sadly, the low performers put the company in the position of trying to arrange an impactful meeting without any charter.

Typically, sales at this company involved a variety of technical issues (mechanical and electrical), aesthetic/design considerations, flexibility, durability, and more.  Capabilities available exceeded time to cover them.  Great salespeople knew what value they needed to show, and made it a point to focus everyone’s attention on impactful, leverageable differentiation.  They set aside any differentiation not relevant to the selling situation at hand.

Does this sound familiar in your business? How often do you demo without a differentiation plan?  Do you ever place trial systems without a definition of success or without a clear idea of what the trial customer is trying to learn?  Bottom line, do you know what knowledge and perception gaps you must try to fill?  If not, do you think you might be one of those “just wow them” sellers?

Don’t waste opportunities

Even ignoring the expense and time investment of the typical “plant visit”, you need to learn from this insight. Don’t waste scarce demo specialists, even on a virtual demo. Point subject matter experts at critical value gaps beforehand.  Perhaps most critically, your selling time is precious; spending it on non- or marginally impactful differentiators is two mistakes in one:

  1. You are wasting selling time on issues that don’t move a deal.
  2. You are distracting attention away from deal-moving differentiation when you dilute it in low-priority information.

The second point comes directly from consumer choice research:  If you dribble critical value into a stream of irrelevant product (or service) promotion, you’re asking your customer to play “Where’s Waldo” with your value.  Unfortunately, customers would rather just go somewhere else (a competitor?) to obtain a useful (to them) stream of key value points.

This is why “show up and throw up” sales calls are so harmful.  Discover specifically where you can show value to a customer via customer-focused interaction, then demonstrate those specific value creators that connect to the customer-perceived value gap.

Takeaways:

Here’s what high performing sales people do:

  1. Discover value gaps first – before sharing anything about your solution.
  2. Share your differentiated way(s) of addressing those value gaps. Use experts and customer visits to address gaps, not merely to spray them with features and benefits.
  3. “Yada yada” (de-emphasize) areas where you have parity with other solutions. Just make sure that those personas responsible for confirming basic functionality are satisfied– separately if at all possible.
  4. Make sure the customer has connected your differentiation to their value gaps.
  5. Walk your customer through a thought experiment that causes them to envision all primary and ancillary outcomes of closing the value gap….in as much detail as possible.

Discuss below, or reach out to me to discuss how you and/or your salesforce can have those kinds of highly impactful interactions.

To your success!

Categories
Best Practices Marketing Personal Development

What Kind of Editor Do You Need?

Some writers, those who have just begun the process, know that they need editors. Others, who have a little more experience, may question that need. “I know how to spell and punctuate,” they say. “I have good grammar skills.”

Editing, though, involves much more. Think about your home and car. How much of the work needed for maintenance and repair do you do yourself? For how much do you hire professionals?

An editor, in any of the categories I describe below, has a professional ability to make your  manuscript shine.

To simplify these descriptions, I’m taking the example of a nonfiction book, although these forms of editing can also apply to fiction, blog posts, marketing materials, and other forms of writing.

At What Stage is Your Project?

 Have you ever started this kind of project before?

  • Do you have an idea you want to develop?
  • Do you have a rough draft?
  • Have you finished a manuscript?
  • Do you feel stuck at any stage of the writing?

Developmental Editor

In the early stages of a writing project, consider a developmental editor to lend structure or organization. Say, for example, that you want to share the lessons you’ve learned in building a business. Maybe you can’t decide whether to have the lessons unfold in within the context of telling your life story (autobiography) or to tuck the autobiographical elements within the format of each lesson.

A developmental editor can help you make these decisions and also break your information into individual elements so that they can be best organized.

This kind of editor may work with you from the beginning to the end of the project.

Content Editor

This editor will evaluate your manuscript and make suggestions for changes that can be minor or major. This may involve fine-tuning the smoothness of flow from one topic to the next. If you’ve inadvertently repeated a story in Chapter 11 that you told in Chapter 2, the content editor should catch that. He or she gives your book a macroscopic (looking at the larger aspects) polish.

Line Editor

This editor provides the microscopic polish. She or he looks for clichés, poor pacing, run-on or overly long sentences, overuse of passive voice, incorrect word usage, and other errors. This kind of editing may include grammar and punctuation.

Copyediting and Proofreading

From my viewpoint, most of the differences between these forms of editing are too minor to be noted. This editor works on punctuation, grammar, and spelling.

A proofreader has an additional role worth mentioning. For a print publication, proofreaders check the overall appearance of the pages before printing, looking for unintentional space, missing titles, mis-numbered pages, and related issues. If they see typos and other errors, they will mark them for correction.

You  may end up needing all of these professionals in the course of your publishing journey in order to ensure that your book is as good as it can be.

One well-qualified editor can provide more than one type of editing.

The editor will save you from embarrassing typos, improve your work, and make you shine.

Pat Iyer is one of the original 100 C Suite Network Advisors and is an editor and ghostwriter. Contact her through her website, www.patiyer.com

Categories
Growth Management Personal Development

Executive Leaders: Give a Different Kind of Gift this Holiday

As I considered what I wanted to write about this month, I read through the feedback cards from the leaders in a recent program I’ve been doing for an organization in Mississippi. What’s cool about this organization is that they really connect the dots between leadership development, employee engagement, customer engagement, and ultimately, the bottom line. Not to brag, but I’m happy to say that we received consistently positive, glowing feedback. Okay, I guess that was a bit braggy, I digress. The comments that I received over and over from this and from many of my programs, is that I helped leaders to see what they may not have seen or struggled to see about themselves, and this will help them to be better leaders.

As I was walking through the airport recently I saw a service dog walking with a gentleman who was blind. As I walked along, lost in my own thoughts, I realized that we are all a bit blind in one way or another.

Before you can lead others, you must be able to lead yourself. So self-awareness, or intra-personal info is necessary before you can build inter-personal relationships. We always work on self-awareness first in my coaching and leadership development programs, and we do this by having everyone complete a self-assessment. Heck, this is our starting point regardless of what kind of program I’m facilitating, and regardless of the participants’ roles within the organization.

And we don’t stop there. We pay it forward. We give the gift of this self-awareness to team members, so that everyone in the organization is speaking the same language.

But, back to my guide dog analogy. As a leader, your job most often involves serving as a coach for your team members. Your role is to help them to see what they can’t see about themselves. You guide them around potholes and missteps, and help them to learn from every experience.

If you would like reveal the blind spots in your leadership and your team members and give the gift of self-awareness this Christmas, here are a few quick tips:

Understand that every team member has a preferred way of doing things and accept that your preferred way isn’t the only way. Have everyone on your team take a self-assessment. But for the love of all that is holy, don’t stop there. Get some good coaching to help everyone interpret and understand their results. Just handing someone a report and expecting them to read and interpret it on their own is a complete waste of time and money (or as my Mama would say, “That and a dollar will get you on the St. Charles streetcar!”).

Ask open-ended questions. Influential leaders don’t necessarily have all of the answers, but they do ask great questions.

Use stories, analogies, and examples to give context to what you want your team members to really get. Remember, people would rather use Tabasco for eye drops than listen to someone lecture! Tony Robbins says it a little differently: “Information that is not attached to emotion is not retained.” Stories evoke emotions. Use em’.

To be a good coach, you need to have a good coach. Hire one. I did. Professional athletes do. It’s pretty hard to see the label when you’re inside the wine bottle… er, or as my coaching client said recently, “ I don’t know what I don’t know, Jen. That’s why I need you to help guide me along this leadership path.” A good coach helps you to not only see your own blind spots, but to identify and leverage your strengths.

Invest in team and leadership development. Notice I said invest. You should be able to expect ROI, such as improved communication, amped up employee engagement, enhanced customer service, and ultimately, a beefed-up bottom line. And don’t forget to measure the results.

As a coach, your role isn’t so much to teach people WHAT to think, but rather to teach them HOW to think – for themselves. It’s a fine distinction, but you don’t want to create order takers who need to be spoon fed and told what to do. By asking for their ideas, opinions, and suggestions, you’ll help them to think in terms of solutions and options.

Be a lifelong learner. You can’t give to others what you haven’t first learned. ‘Nuff said.

In my experience, most people need a guide on the side, a coach to help them along the way, because we’re all a bit blind in one way or another. What a way to spread your love and appreciation to your team members! Just remember that this is an ongoing process, a journey, and it’s the gift that keeps on giving.

Jennifer Ledet, CSP, is a leadership consultant and professional speaker (with a hint of Cajun flavor) who equips leaders from the boardroom to the mailroom to improve employee engagement, teamwork, and communication.  In her customized programs, leadership retreats, keynote presentations, and breakout sessions, she cuts through the BS and talks through the tough stuff to solve your people problems.

To receive solutions to your people problems in your inbox every month, and to receive our report: “7 of Your Biggest People Problems…Solved,” click here.

You might also like:

Leadership Team Accelerated Results Program

Stay Home From Your Next Leadership Conference

Why Your Employees Should Stop Thinking Like Employees

Photo

Categories
Best Practices Entrepreneurship Human Resources Management Marketing Negotiations Sales Skills Women In Business

But Wait, There’s More – Negotiation Insight

“Never forget that you have the power to choose what you wish others to see in you.” -Greg Williams, The Master Negotiator & Body Language Expert

When do you reflect upon where you are in your life? Does it occur when you’re beset by misfortune or when you’re in a state of exhilaration? It’s a thought that warrants attention because you’re always being moved by your thoughts. And, your thoughts transfer into actions.

When you’re in a certain mental state, note the words you use to represent that mindset to yourself and others. Words have power. Thus, the way you use them will influence your actions and that of those around you. When you muse to others and yourself about what you’re thinking or how you feel, you’re giving insight into your personality. That insight allows others to assess who you are, what you might do in a situation, and how they might interact with you during those times.

Anytime you’re not feeling normal, whatever that might be for you, and you don’t wish to expose it, cloak it by displaying a different demeanor. If you’re a frequent reader of my writings, you know you’re always negotiating; that means, what you do today impacts tomorrow’s opportunities or lack of. You don’t have to consider your actions as being a negotiation. Nor do you have to consider air as a vital part of life. Nevertheless, both are truisms.

To achieve more, you must be mindful of how you represent yourself to others. The more you wish others to perceive a certain persona, the more aligned your actions should be with that persona. If you leave people with the thought that there’s more to you than they know, you’ll have them in a state of wonderment that states, but wait there’s more. That will heighten their intrigue of you, which will serve to increase their interest … and everything will be right with the world.

What does this have to do with negotiations?

Predictability vs. Unpredictability

During a negotiation, a collage of thoughts, words, and actions will attempt to drive the negotiation down different paths. The predominant collection of that makeup will determine your success; another consideration will be your past demeanor. The latter will serve as input about how you’ll respond to certain stimuli.

In a negotiation and in every aspect of your life, people will believe of you what they see. Sure, they’ll color their perception based on their biases. The rub is, if you don’t present yourself based on how you wish to be perceived, they’ll fill in the blanks without your input. Don’t wonder as you wander. Show others what you want them to see in you.

People like predictability. But, if you want to win more negotiations, they’ll be times when it behooves you to be unpredictable. During such times, leave others wondering if there’s more to you to uncover. Doing so will serve your benefit. They won’t be able to completely figure you out. Thus, they’ll lack the ability to predict what you’ll do next. That’ll serve to foil their negotiation plans. To keep them off-balance, create a state of mind for them that says, but wait, there’s more.

Remember, you’re always negotiating!

After reading this article, what are you thinking? I’d really like to know. Reach me at Greg@TheMasterNegotiator.com

To receive Greg’s free “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here http://www.themasternegotiator.com/greg-williams/

#HiddenValue, #More, #Aware, #Success #Emotion #Business #Progress #SmallBusiness #Negotiation #NegotiatingWithABully #Power #Perception #emotionalcontrol #relationships #liars #HowToNegotiateBetter #CSuite #TheMasterNegotiator #ControlEmotions

Categories
Marketing Personal Development Sales

If You Don’t Know Your Differences, You’ll Never Know Your Value

It’s simple:  Your offer’s value exists only in a customer’s mind. When you hear the phrase “customer perceived value”, I want you to remember that the “customer perceived” is redundant; there is no other kind of value besides customer-perceived.

Customers only derive value based upon differences. There’s more to it, which we’ll come to in a minute, but let me simplify half a century of consumer choice research for you.

Hueristics:  Shortcut Mental Processes

Buyer choices are based upon differences between different offers, which is a mental shortcut, or heuristic (an academic researcher word.  Impress your friends).  We shortcut a complex set of choices based only on what’s different.  Think about buying an automobile, for example.  When comparing the options, you don’t go down the list of “what is the same”.  Your brain knows that is a waste of mental energy.  You won’t even take notice tires, spark plugs, cylinders, steering wheels; every option has the same number, and any differences are unimportant to most buyers.  However, you might notice that one option has a comfortable leather-wrapped steering wheel…but really only if the other car doesn’t.

Not all differences are the same (sorry for the pun)

Differences become differentiation (in the consumer choice sense) when two things occur.

First, those differences need to be factored in to a decision process.

Second, they need to be given weight, or value.

For value to “occur” in the customer’s mind, you need to do both.  Let’s start with the first.

Differences need to park between your customer’s ears as differentiation before they can grow into value.

Differences are promoted to differentiation (differences that the customer uses in a decision) under a consistent hueristic.  Buyer (all personas; not just a purchasing agent) decision-making follows a consistent prioritization of differences which:

Come to mind easily. The buyer psychology term is “ the availability principle”.  This means that decision makers default to easy-to-recall differences. Differences that you give to a prospect (especially without confirming conversation) are not as “available” as differences they can describe unprompted. Let’s go back to an auto purchase example:  I’ll recite advantages of one of your two “acceptable” finalist options to you.   Then, I’ll ask you to explain to me the advantages of the second option.  Which one will you end up buying the next day? The reason is the availability principle.   Availability is part of why a customer believes what they tell you much more than what you tell them.  Use conversation to get a customer to process differences into differentiation.

The customer has to produce themselves. If nobody produces any differences,  some buyers will dig deeper to uncover them. This does happen, but you’re leaving things to chance.  Differences which don’t enter a customer’s consciousness don’t create differentiation or value.  I once learned that a customer valued my company’s responsiveness, and willingly paid a small price premium — which could have been much larger.  When there was a “both parties’ fault” problem which shut their production down, we made things right in the way they knew we would…and which we took for granted.  This was the exception, not the rule.  Because we didn’t uncover it, we never had the option to sell (and possibly price, had the difference been something a little more image-positive).

Price becomes a primary differentiator only when no other differences exist in the prospect’s mind.  Note:  some procurement/purchasing folks will lead you to believe that your differences (above) are insignificant or nonexistent – purely to drive a price-centric conversation. It is the responsibility of a seller to determine how real this gambit is. If your sellers respond only by discounting, you may have a significant opportunity to improve.  I work with sellers to understand how and when to play this game.

Status quo becomes your biggest threat when no differentiators have appeared as your customer goes down this decision pathway. It is a threat almost always, of course, but if not even price seems different between the top two choices, status quo always wins (consumer choice research has established this using dozens of experiments repeated hundreds of times).  If status quo is not one of the finalists, customers will produce a differentiator that might seem so frivolous that it feels like they used the dartboard to make their choice.  These are frustrating wins…and even more frustrating losses.

When Differentiation becomes Value

I often quote Bob Miller, who pointed out that Customers don’t buy our offers, they buy outcomes. Buyer research shows that people decide based upon differentiation… differentiation they value due to the outcomes that differentiation yields.

How does differentiation turn into value?  When a prospect gives it weight by connecting it to an outcome or outcomes. The value/weight of an outcome increases as it progresses through “theoretical”, “possible”, ”likely”, ”probable”, then “assuredly”.  It also increases as the desirability of the outcome progresses through “unquantified tie breaker”, to “I’ve visualized the outcome”, to “I’ve visualized myself realizing that outcome” then “I’ve quantified the outcome financially and personally”, and finally,  “I’ve also quantified ancillary outcomes”.

The same rules of availability apply to value building.  If you build a value case and deliver it to a prospect, it is far less available(and thus less value is built) than if you walk the prospect through the exact same validation/quantification process such that they build it themselves in their own mind.

Buyers (other than purchasing folks) seldom use price as the primary differentiator.  Far more frequently, they use your price premium (that’s your price difference, remember?) vs. their own estimate of value. Using an auto purchase example, a consumer might justify whether the leather upholstery option is worth the $1500, quantifying comfort, longevity, prestige, in a way that translates each of these differentiators into a dollar justification.

Bottom Line

If you never help your customer identify your differences, they probably won’t think you have any, and you will never enter the finalist stage.

When you fail to help your customer process differentiation into your (outcome-based) value, they won’t fully appreciate what you offer, and won’t be willing to pay you what you’re really worth.

When you don’t know your value, you’ll never know how to sell or how to price.  Your achievable price premium depends on the value of your differences to the customer.

I invite your comments and feedback.

To your success!

Categories
Entrepreneurship Human Resources Leadership Personal Development

Three Simple Training Tips to Dramatically Boost Company Performance

Many companies view training as a “nice to have.” They think it is important to create an attractive, engaging training program for new hires, and that it might be good to have a focused course that teaches employees how to perform certain tasks or use certain pieces of company technology. Once those companies cover the bases by offering training in just a few areas like those, they turn the page and start to think about other realities of doing business.

But what if . . .

What if those companies thought about employing training in a larger, more strategic  way to improve performance in a wider range of business activities? What, for example, if they stopped to consider that a $10,000 investment in training could net a 10% increase in the sales made by each salesperson, resulting in an additional $10 million in annual sales revenue? What if they stopped to think that a similar investment in training could result in a 10% increase in the accuracy of order filling, and would save $1 million a year?

In short, what if companies made the connection between training, performance, and the bottom line?

And what if your company did? You see, training offers you the potential to dramatically increase profits and performance. Here are three tips to get that to happen for you . . .

Start with the End in Mind

Chances are you know where you would like to see improved performance or profits in your organization. But specifically what would those improvements look like? Would there be fewer defective products, better company reviews online, a 15% increase in the sales of one of your product lines . . . specifically, what?

Specific goals begin to emerge when you consider questions like those. They help you define the specific business challenges and goals you need to address. And once you have defined those issues and goals, you can begin to determine if there is  training that will assist in  reaching them.

Develop an Appropriate Curriculum

Your curriculum should be designed to teach people the skills they need to learn or improve in their specific role. But developing an effective curriculum is a bit more complex than simply defining skills. It should be right for the people in the roles who are performing the tasks and jobs that your training addresses. And it should be designed to have a focused, specific impact on the business items where you are trying to “move the needle” and bring about change.

An appropriate curriculum is also about more than just a list of skills and behaviors. It should consider how those lessons will be delivered – by a live training presenter, on phones or tablets, enlivened with games and exercises, in short “chunks” or longer lessons, for example. Creating an effective curriculum depends on considering who your learners are, where they are, and how they would prefer to learn.

Measure Results, then Tweak and Adjust Your Training Accordingly

At this point, you loop back to the decisions you made in the first step we explored in this article, when you started with the end in mind. The difference is that you are now going to develop ways to measure the change you have brought about through training.

You might decide to measure how much more each of your retail salespeople is selling on an average sale, whether fewer of your products are being returned, whether your rates of repeat business are improving, whether your online reviews are more positive, or other hard or soft metrics that tell you how effective your training has been.

Once you are measuring, you can tweak, modify your training, and find ways to improve results. But one thing for certain? If you don’t measure and adjust, your training will never deliver the results it is capable of.

In Summary . . .

Start with the end in mind . . . develop an appropriate curriculum . . . then measure results and adjust your training. That is a simple, yet powerful, approach to improve company performance. And you can use it to improve more company performance  that you have probably stopped to consider.

 

Categories
Best Practices Culture Economics Entrepreneurship Industries Leadership Marketing Personal Development Technology

To See the Future, Think Both/And

Whenever a new game-changing technology is introduced, our instinct is to assume that the current technology we are using will quickly become obsolete and will vanish from our use.

History has shown that the hottest new breakthrough technologies do not necessarily replace older ones. Instead, they often coexist side by side because the old technology has its own unique profile of functional strengths that the new technology never fully replaces.

How many times have you greeted a new innovation with an either/or assumption? Either you use the old or the new. But this is not an either/or world we live in; it’s a both/and world. It’s a world that is both paper and paperless, online and in-person, old media and new media.

Yes, No or Some of Both

In my latest book, The Anticipatory Organization: Turn Disruption and Change into Opportunity and Advantage, I teach readers how to gain a major competitive edge by learning to accurately anticipate the future. This is a skill that can be learned, and in this blog I’ll share one of the principles I have used for decades to accurately predict the future of technological change, one that you will be able to apply in countless ways: the Both/And Principle.

First, a bit of history. In the early 1980s, I developed the Both/And Principle and started applying it with great success. Here are some examples that will help you to see how to use it yourself.

Either/Or Assumption #1:

The introduction of digital documents meant that we would all be 100% paperless in a few years.

For example, in the late 1980s, when CD-ROMs were introduced, industry experts, the press and futurists predicted that by the mid-1990s, offices would be completely paperless. At the time I applied the Both/And Principle and predicted that we would have increasing amounts of both digital documents as well as paper documents in the future. It’s now 2018 and we are still managing both paper and digital documents.

Why is paper still around? Paper is inexpensive, portable and can be folded and tucked in a pocket or purse. It is an inexpensive display medium that does not need power. In addition, a handwritten paper note of gratitude to an employee is far better than sending a text or an email.  So instead of asking “How can I eliminate all paper?” a better question I had my clients ask was, “What is the best use for paper and the best use for digital?”

Either/Or Assumption #2:

E-commerce will render brick-and-mortar retail stores completely obsolete.

In the mid-1990s, around the time that Netscape, Yahoo!, eBay and many other Web-based businesses started rapidly growing, many futurists and the media predicted that bookstores, auto dealerships, shopping malls and retail stores in general would soon be obsolete.

The logic was that a physical store can only hold a few hundred or several thousand items while a virtual store gives you access to millions of items or titles 24/7.

So why do retail stores continue to survive and why are many even thriving? The answer is that physical shopping is experiential, not just transactional. Brick-and-mortar stores and malls that have continued to elevate the customer experience are social gathering places that create a sense of community, which technology can’t fully replace. In addition, many products are difficult to buy without physically seeing them and trying them out. Others require a knowledgeable person to help you make a decision. Why did Apple open an Apple Store? If you have been there, you know why. Why is Amazon opening brick-and-mortar bookstores? Now you know why.

Either/Or Assumption #3:

Smartphones will replace laptops.

Not that long ago, business publications were having a debate about the future of computing. They asked the question, “With our smartphones and tablets becoming our main personal computers, won’t this make laptops obsolete?” The answer is still “no.”

The reality is, we still have the equivalent of mainframe computers, we just use them differently than 20 – or even five – years ago. If they have a smartphone and/or tablet, the majority of business users are already using their laptop differently, and perhaps much less, but they are still using both.

Introducing Both/And Thinking

While others were predicting the end of laptop computers, printed paper and retail stores, I did not fall into the trap of those bad predictions because I had developed a series of research-based guiding principles that would help avoid such mistakes, and the Both/And Principle is a major one.

The premise is simple: Your technology works well for you, but you discover a new app, gadget or process that could significantly transform your business. You don’t want to part with what’s been working for you, but you also don’t want to be left behind.

The Both/And Principle allows you to keep bridging your legacy systems with the new technology or processes. Integrating them in a way that will create higher value than either has by itself provides a pathway forward.

It is a powerful corrective measure to either/or thinking, meaning that the future will only be either one way or the other. The Both/And Principle recognizes the folly of assuming that the “new” will totally supplant the old, and it recognizes that they can be integrated. Once you try it, you will see the Both/And Principle can accelerate your team’s performance because you haven’t settled for one or the other.

Powerful Both/And Duos

Digital documents have powerful strengths; they are here to stay, but so is paper. Here is a short list of Both/And Principle examples:

  • Brick-and-mortar retailers and Internet retailers
  • Digital and analog
  • Paper mail and email
  • Nautical charts and GPS
  • Full service and self service
  • Wiring such as copper and  fiber-optics and wireless
  • Traditional media and digital media
  • Gasoline engines and electric motors
  • Digital music playlists and live concerts
  • Video conferencing and face-to-face meetings

A key success strategy is to integrate the old and the new based on the strengths of each. In fact, the hottest breakthrough technologies tend to coexist and integrate to create new value with their predecessors rather than completely co-opting them. Why? The old technology has its own unique profile of functional strengths.

Case Study: Amazon.com and Kohl’s

In August 2017, Kohl’s announced it would sell Amazon products in its retail stores. But that was just the beginning of this Both/And Principle business maneuver. Kohl’s department stores and Amazon.com have been piloting a retail model that even more perfectly demonstrates an integration of the old and new.

Since September 2017, the two have been running a pilot program in which Amazon.com purchasers who want to return an item can return it to a Kohl’s customer service desk. Customers who bought a product online can now skip the post office and instead return it to an ever-increasing number of Kohl’s stores.

Consumers enjoy the convenience, and according to a number of recent studies, total visits to Kohl’s stores with Amazon’s return program have outperformed other stores in sales by about 8.5%. In other words, customers returning items end up finding more to buy at Kohl’s. Kohl’s also reported an increase in new customers.

Both/And Thinking and You

What are some examples of Both/And thinking that could benefit you? Are there any new technologies that would give you amazing new capabilities that could become something you feel your business could not live without? What are some of the newest technologies that you believe will disrupt and transform your business? What would happen if you combined the old and the new in a way that creates higher value than either has on its own?

If you would like to learn more anticipatory skills so that you can turn disruptive change into your biggest advantage, read my latest book, The Anticipatory Organization: Turn Disruption and Change into Opportunity and Advantage

Click here for a special offer from Daniel Burrus

Powered By MemberPress WooCommerce Plus Integration