Pricing Strategy is probably the most important and most overlooked area in all of marketing. In 3 minutes, I break it down for you and focus on how to develop and scale your pricing to drive revenue.
Category: Marketing
Do you want to know how to define and implement a successful sales strategy? There are several key components. Find out in the next 3 minutes.
How to optimize your landing pages in 60 seconds using the acronym, V.E.L.O.C.I.T.Y
How to optimize your landing pages in 60 seconds using the acronym, V.E.L.O.C.I.T.Y
Do you remember when MTV was the best way to get in front of the teen and young adult audience? Once mobile technology became popular, it didn’t take long for that age group to be on the move.
In no time, videos were streaming on iTunes. Though teens continued to watch, viewership dropped. Then came instant messaging, followed by social media. For a time, Facebook gave advertisers their niche audience of young consumers congregated in one place.
That is until Snapchat and Instagram came along.
To add to the challenges of the last couple of decades, smart speakers are now in about one-quarter of U.S. homes, and podcasts are gaining popularity. In fact, about 50 percent of households now say they listen to podcasts, with a majority of them joining the trend in just the last three years.
According to whypodcasts.org, 38 percent of listeners are age 18-34, and 64 percent listen on their smartphones.
What’s Next in Target Marketing?
As technology-driven change changes direction, it is easier, and far more profitable, to change direction with it. “It’s easier to ride a horse in the direction it is going.” That’s what my grandfather told me as a little boy working with him on his farm in Texas.
Every company, regardless of size, knows they must advertise if they are to grow. Yet with all the money that is being spent, it is increasingly difficult to get your message to the right audience.
This is where it pays to be anticipatory. Using the systemic method outlined in my Anticipatory Organization Model, you can ready your organization for the disruptive transformations ahead.
Three Hard Trends and Two Tech Trends to Watch
In my work as a technology and business futurist, I have found the most effective way to approach becoming an AO is to focus on demographics, government regulations, and technology. In addition, it is always good to know which consumer technology trends will stick around. I call these Hard Trends (as opposed to Soft Trends, which may come and go).
- Demographics drive opportunity. There are nearly 80 billion baby boomers in the United States. Not a single one is getting any younger—a definite Hard Trend.
- Government regulation is a constant. As a general rule, will there be more or less government regulation in the future? Of course, there will be more, and that’s true regardless of the industry or organization. That’s also a Hard Trend.
- Technology will continue to grow. From the ever-increasing functional capabilities of our smartphones to the growing use of 3D printing, technology is inevitably going to become more functional, more sophisticated, and more widespread. That’s another definite Hard Trend.
- Multi-layered media is here to stay. According to research, our attention spans are shorter than ever, and consumers demand instant gratification and quick fixes—not a litany of product features and benefits.
Today, content channels such as social media, Apple Watch, and Google Home provide the perfect vehicles for interactivity at any time, in any place, and with any person.
- Consumer attention is likely to stay at a premium. At least for the foreseeable future, multi-layered media is here to stay. Consumer attention remains at a premium.
Advertisers know the harsh reality: Running an ad on a major television network and supplementing it with web banner ads is no longer a guarantee of reaching the audience.
If you use my Hard Trends Methodology to look ahead to the future of marketing, you’ll be able to anticipate the fast-moving innovations to come. New devices are likely to be developed, and their connectivity doesn’t show signs of slowing any time soon.
Learn to be anticipatory—start with my book, the Anticipatory Organization, available on Amazon.com.
“To achieve more, you must know what more is and why you’re waiting to acquire it.” -Greg Williams, The Master Negotiator & Body Language Expert
“I want to be fit and in shape. But I don’t put forth the effort to exercise. Thus, I’m not in shape. I have low-energy. And my physical appearance could be better. Still, I want the results of looking good, feeling good, and being fit. I don’t know what I’m waiting for before committing the actions required to achieve those goals!” Those were the words spoken by an associate as he lamented his plight. Have you pondered such thoughts about the goals you’ve sought to achieve? Have you thought about the consequences that lie in wait tomorrow, as the result of not beginning the quest of your goals, today?
Do you know what you’re waiting for before moving in a more positive direction? It’s a question that everyone needs to evaluate when assessing why they’re not in a better place – at a better point in life. When you engage in activities that don’t support the goals you wish to achieve, you should ask yourself, what am I waiting for? When you find yourself veering off-track of a successful endeavor, take note of where you’re headed. And if you don’t like the distant destination that you’re headed towards, ask yourself, what am I waiting for before getting back on track.
To be more successful in life, you must be self-reliant. That means as the cliché states, you must adopt a mindset that states, “if it is to be, it’s up to me.”
Everyone becomes encumbered by life’s activities at times. And yet, everyone always spends their time doing what’s most important to them. I’ve issued that summons to individuals over time. Some have stated that they only participate in activities that advance their goals. When questioned about their engagements in activities that don’t progress their goals, they sheepishly admit that it does occur sometimes.
The point is, everything you engage in is the priority that you’ve chosen to invest your time. Because, you’re stating by the fact that you’re engaged in that activity that it’s the most important thing to you at that time – to thine self be true.
Recognize what you do as being what’s most important to you when you’re doing it. Don’t sugarcoat it! You’re only playing with your mind if you don’t acknowledge that fact. There’s no right or wrong or need to assess blame. Just realize what reality is. You can’t address a situation, good or bad unless you recognize it for what it is. Once you examine your actions in the light of reality, you’ll be in a better mental space to take corrective actions. But you’ll only do that if you really want to achieve that ‘thing’ that you say is so important to you. Once you start on the path of achievement and stick to it, you’ll feel better about yourself and the achievement of your goals … and everything will be right with the world.
What does this have to do with negotiations?
In every negotiation, timing plays a key role in when you should extend your offers and when you might obtain what you seek. Thus, you must become keenly attuned to your timing. If you hesitate in making a request, a demand, a concession (yes, they are different), you should question yourself as to what you’re waiting for. If you wait too long, you’ll miss your opportunity to acquire more. If you pursue too soon, you could meet the same fate or worse, lose what you’ve acquired.
It’s stated that timing is everything. That’s especially true when negotiating. Thus, always be mindful of how you utilize your time. And note the waiting period that you engage in as to why you wait sometimes.
Remember, you’re always negotiating!
Listen to Greg’s podcast at https://anchor.fm/themasternegotiator
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/
#waiting #Negotiate #Process #Power #Powerful #Emotion #Business #Progress #SmallBusiness #Negotiation #NegotiatingWithABully #Power #Perception #emotionalcontrol #relationships #HowToNegotiateBetter #CSuite #TheMasterNegotiator #ControlEmotions
Many experts agree that selling with perspective/insight improves selling performance, but most ignore the role played by business acumen. Business expertise is foundational to perspective selling success. Ignoring it is a mistake; best case, you can win some more opportunities, but at suboptimal margins. Worst case: your insight selling investment won’t get you anywhere.
Perspective selling can be a huge difference maker. CSO Insights found that companies who incorporated perspective into their approach had 12% higher win rates. This rose to 23% higher win rates for companies who master perspective. The data was conspicuously silent on profit margins of those won deals. Thus, selling with perspective can be powerful, but your mileage can vary widely, depending on how you implement.
Unfortunately, some sales training companies cover business expertise with little more than a vague hand wave. Their treatment: “Take your business acumen…you know, that business acumen that you have (right?)…and use it to provide some valued perspective”. Apparently, hope is a strategy.
Others tell us to apply our business acumen to expose an unrecognized problem, unrecognized solution, unforeseen opportunity, or to bring a third party’s capability to bear. Those are great suggestions for how to use already-established business acumen.
Business Acumen is a Serious Discipline, not Some Buzz Word.
I’ve heard business acumen (for sellers) described as “understanding how your customers make money”. That’s a great start. Adding “to the point you know how your offer can help them make even more” should become the standard for every customer-facing person in your organization.
SWOT (strengths, weaknesses, opportunities, and threats) analysis is better than nothing but doesn’t help a seller develop very meaningful insights. It doesn’t help your people meet the standard above.
“Understanding growth drivers” sounds helpful, but don’t you need business acumen to for that level of understanding?
Sellers need a set of tools which help them understand how business works well enough to look at a prospect company with a “mechanic’s eye”: ability to diagnose what’s working well, what’s not, and how their offer can help. My business acumen framework covers a business in enough depth to help sellers do just that. Here’s a diagram of the major parts of a customer’s world: What elements of their environment shape a business, internal elements that shape their world view. On the right, is a list of some of the major outcomes you might be able to help them change.
Because this framework is about your customer’s world, it works with any sales training system or methodology. Contact me if you’d like to learn more about this overview.
Business Acumen Shapes an Entire Pursuit, it isn’t Just a Process Step
I’ve seen leveraging business insights to “provide perspective” and “provide insight” as one step in the selling process. I reject this; such a suggestion shows a fundamental misunderstanding of business perspective.
Business acumen helps a seller throughout the arc of the customer experience:
- Secure an initial appointment by showing that the seller has valuable business advice to give.
- Shape discovery by uncovering new value and expanding known ones.
- Expand the decision ecosystem by connecting unanticipated outcomes with your offer.
- Expand the total value of your offer by adding outcomes all over the company.
- Earn executive meetings by connecting to executive-level concerns.
- Negotiate win-win pricing by walking your customer through the monetary value of all of the outcomes you help them achieve.
- Explore even more outcomes as all of your people engage with a customer post-sale.
- Capturing all of these value insights helps your marketing team produce content that targets the customer outcomes that win most of your deals, generating leads that self-qualify for your differentiation.
That’s why I promote a company-wide “value culture”. In a value-focused culture, a lot of roles participate and several loops get closed.
How Business Acumen Fits into a World Class Sales Culture
Business acumen is a backdrop to a phased process, each phase of which blends into the next. Thus, Business acumen is foundational to professional selling.
Initially, a seller should uncover needs, value gaps, and potential customer outcomes. I have a tool called value networks which helps guide this process more efficiently (these are company-specific). In this phase, sellers need to envision all of the parts of a customer organization the selling company’s offer might impact. As customers have become more siloed, this job has become more challenging. My value networks help make this easier, and work with any sales training system or methodology.
During this process, a seller should be able to develop value (build the desirability of various outcomes) in the mind of various buying personas. The diagram in this middle circle reminds sellers that they need to develop value while they can. Once a prospect has decided you’re on the shortlist, it gets increasingly difficult to “sell value”.
To begin the closing process, a seller needs to connect their solution to customer-validated outcomes, recap the value of those outcomes, and then position the solution based on that value. Pricing – even premium pricing– should reflect the value of those outcomes and share a win-win philosophy. I have often experienced higher customer preference at premium prices once the customer-validated value is used alongside the price for context.
Selling with Perspective is Good. Selling with Value Perspective is Profitable.
Perspective selling is powerful. It increases close rates and strengthens customer relationships. With a few simple additions, it can do all of those things more effectively…and more profitably. That is, you can close more deals at a higher – and more customer-appreciated – price. Since pricing power is profit power, those small adjustments make a huge difference.
Comment below. If you found this valuable, like this article and/or share with your network. If you’d like to learn more, please contact me.
To your success!
“Taking risks can be risky if you don’t control the risks you take.” – Greg Williams, The Master Negotiator & Body Language Expert
Positioning in a #negotiation impacts a #negotiator’s ability to #negotiate before the negotiation begins. Because the way you position yourself determines how the other negotiator will perceive you. And it’ll regulate your interactions. Thus, to be a better negotiator, you must #control any risky #positioning that might impact a negotiation.
Everyone considers what they might encounter before they engage in an activity – that’s especially true in negotiations. And it’s better you shape their perception before they do. Doing so delivers the image you wish them to have of you compared to the haphazard perspective they might create.
The following are examples to control your positioning before a negotiation occurs.
Hanging with Influencers:
You’re perceived as an influencer when you surround yourself with those that influence others – that allows you to become better positioned. To advantage your position, consider becoming seen with the influencers that’ll have the greatest impact on those that you wish to influence. That will improve your positioning based on how others perceive you.
Controlling Your Message:
People will attempt to control your message. And they may hijack its intent to serve a purpose that’s better aligned with their goals, not yours. To oppose their efforts …
- Control others that attempt to control your message. Don’t let them brand you or your message if it doesn’t support your positioning – confront them when they oppose you.
- Beware of ear-jackers – Ear-jackers are people that will eavesdrop on your conversations when they’re in your environment. Most likely, they’ll appear to be engaged in other activities. They may be seeking salacious information that they can twist to demean you or enhance their positioning (e.g. I heard him say ‘XYZ’. I knew there was another side to him that he doesn’t want the public to see.)
- Observe what happens in slow motion. Because we’re bombarded with activities, sometimes we miss what’s before us – most occurrences happen over an extended period-of-time. Take note of the changes that occur around you daily. It’s the short-term changes that could become long-term detriments to your positioning that you should be aware of.
- Be innovative – When you’re seen as an innovator, you’re viewed as someone that’s leading others to their future. If they perceive that as a benefit, they’ll follow you more readily. And when you’re at the negotiation table, they’ll be more willing to accept your offerings.
- Control the flow of your messages. Always consider the impact one message will have on another when you send it into the realm of public opinion. If you initiate messages that are less important too frequently, messages that might have a greater impact on your positioning will be less potent – and the more important messages may miss your intended audience altogether.
Use Appropriate Words:
Words control emotions. And emotions control perceptions. To control your positioning better, control the words that control your message. As an example, depending on the situation, it may be beneficial to use the word squabble versus fight (e.g. we had a squabble) – that’s less impactful than, we had a fight. The exchange of those two words alters the perception of the situation.
Perception is Reality:
When it comes to controlling your positioning, perception is reality. Your integrity intentions can be in alignment with your actions and if someone taints it with their ill-will, you could become seen as someone with less integrity. That’ll impact the way the other negotiator interacts with you. That could be to the detriment of both of you and the negotiation.
Being a better negotiator starts first with how you’re positioned. It shapes the way you’re perceived at the negotiation table. It determines how the other negotiator will strategize to negotiate against you. And it will have an impact on how effective your negotiation efforts will be. To negotiate better, always pay careful attention to your messages and how they position you. Because, the better you position yourself per how you wish to be perceived, the easier the negotiation will be … 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
Listen to Greg’s podcast at https://anchor.fm/themasternegotiator
To receive Greg’s free “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here http://www.themasternegotiator.com/greg-williams/
#Right #Cure #Disasters #BodyLanguage #Liar #Beware #Negotiate #Process #Power #Powerful #Emotion #Business #Progress #SmallBusiness #Negotiation #NegotiatingWithABully #Power #Perception #emotionalcontrol #relationships #HowToNegotiateBetter #CSuite #TheMasterNegotiator #ControlEmotions #BodyLanguageSecrets
I just read – and highly recommend – The Coaching Effect, What Great Leaders Do To Increase Sales, Enhance Performance, and Sustain Growth by Bill Eckstrom and Sarah Wirth.
Besides my involvement in teaching, guiding, and practicing coaching with clients, I read a lot about sales management and coaching. In fact, I was one of the first in Miller Heiman Group to be certified in their full sales coaching suite. I wondered if I would pick much up from this book, and am pleased to say…yes, I did. I will be supplying this book to sales transformation clients from now on.
Coaching by Your Front-Line Sales Managers Improves Sales Performance
Based on over 100,000 real-world coaching interactions, this book shares some of the research behind its recommendations. Most important: Sales teams with great coaching average 110% of goal, vs. 91% of goal for the bottom 80%. Think about that. The most effective teams have the most effective leaders…the ones who behave like great coaches. These teams outperform the average team by over 20%.
I’ve seen similar data from other sources, including CSO Insights, who I consider to be the gold standard.
Anecdotally, I experience how focusing on coaching is the primary differentiator between successful sales performance initiatives…and those that fizzle. I buy the difference coaching makes.
What’s a Good Coach?
Eckstrom and Wirth go into depth on what great coaching looks like. The first thing that struck me was how seldom we measure coaching quality. Most practitioners stick to the easy-to-measure stuff like quantity (more on that below). The authors have a robust scoring system for the quality of coaching that’s as simple as it is intuitive and effective. They measured major themes of impact/culture, relationship, cadence, and ability to wring performance improvement – each of which is broken down into components.
The second striking finding is that “quality” is measured in the eye of those being coached. This seems obvious to a guy like me who regularly harps that value is only in the mind of the customer. Of course, that’s how you measure great coaching. So why do so few other people do it?
A third, not-so-striking finding: the best coaches have their “coachees” best interests at heart. Think about it. Coaches who have their subordinates’ trust are the ones with permission to push them to greatness. Yes, this is everyone on your team, not just those oft-maligned millennials.
The Four Pillars of a Great Coaching Culture
My “coaching acumen” improved. The research behind Coaching Effect broadened my idea of what a great coaching culture looks like. Eckstrom and Wirth describe four pillars (my term, not theirs) that sales leaders need to implement as part of a consistent coaching cadence.
- One-to-one meetings: Coaching Effect teaches that these are higher-level-than-you-might-have-thought meetings. They cover a seller’s personal updates, long-term goals, daily work, and priorities…combined with offers of manager support. It turns out that quality is far more important than weekly frequency.
- Team Meetings: Again, the research shows that quality is more important than frequency. Meetings that share best practices, share successes, discuss team-side issues, etc. (the book has a lot of great examples) might be monthly, with as-needed team huddles on a given specific timely issue.
- Performance Feedback: This is where I’ve focused most of my own work, and I’m glad the authors and I agree on approaches. There is solid advice on how to approach performance issues, using what another author called “compassionate directness”. The personal updates and focus on long-term goals from one-on-ones build trust that’s needed during more difficult feedback conversations.
- Career Development: Isn’t it crazy how few coaching programs formally introduce career development into the regular coaching cadence? Great coaches use this component to inspire “discretionary effort” (I love that term, Bill) on the part of sellers. There are great examples of specific actions a coach can engage in to become a meaningful force in the career of his team members.
Two Thumbs Up
As I said, this book helped me clearly articulate the differences between average and great coaching, and any serious sales leader should invest in it…and themselves
To your success!
How well will a robot function as the source of marketing communication? Advertisers spend huge sums to recruit just the right (human) endorser for a brand, but at least so far no one seems to be giving much thought to what a salesbot or AI-generated model should look like or sound like.
That’s a big mistake. To read more, please click here.