Monthly Archives: March 2018

Marketing , Leave a comment

Exit Loyalty, Enter Relevance: The New 5 P’s of Marketing

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Which quality best supports and encourages B2B buying decisions? In the 21st century, that quality is relevance.  According to a recent survey by Kantar Retail Consulting, whose North American division is based in Boston, MA, 71% of B2B and B2C customers feel that loyalty-incentive marketing promotional programs do not cause them to feel more loyal toward a company.  It has become evident that regardless of your industry, customers are doing business with you based on the perceived relevance of your products and services to their needs and priorities.  Attempting to buy loyalty with discounts, rebates, rewards, or swag bags is not as effective as it used to be.

A 2017 study by the global consulting firm Accenture found that U.S. businesses lose $1 Trillion a year in annual revenue to competitors because their (former) customers no longer consider them to be relevant.  The study results appear to indicate that to succeed, businesses must be perceived as fulfilling customers’ immediate needs as they occur. Personalization is helpful, but it is best applied in support of relevance.  The authors recommend that companies structure the customer experience  to deliver as does a butler or concierge.

So how do business leaders navigate the paradigm shift? Joshua Bellin, Robert Wollan and John Zeally of Accenture recommend that organization leaders move on from the former gold standard of marketing, the 4 Ps—Product, Place, Price, Promotion.  No disrespect to the 4 Ps, they served companies well for decades, but customer behavior and expectations have changed over the past 10 years or so.  The 4 Ps are unfortunately rather narrow and product-focused for our times.  Today, it’s about delivering customized solutions, especially for B2B customers.

Furthermore, a close reading of purchasing data indicates that the usual product-focused market segment labels, e.g., discount, luxury, or environmentally conscious consumers can no longer consistently predict purchasing choices.  The needs of all consumers, regardless of socioeconomic status and sociopolitical ideology, vary according to their immediate priorities and context.  In response, Zeally et al. suggest that companies expand their marketing guideposts to include these updated 5 Ps:

Purpose:           Customers feel that the company shares and advances their values.

Partnership:    Customers feel the company relates to them and works well with them.

Pride:                 Customers feel good about using the company’s products and  services.

Protection:        Doing business with the company makes customers feel confident.

Personalized:  Customers feel that their experiences with the company are always  tailored to their goals, priorities and needs.

The “what have you done for me lately?” mindset has replaced loyalty, to a large degree. Perhaps it’s a sign of the entitled and narcissistic culture in which we in the U.S. live.  Customer preferences are in constant flux. Short-term strategies and goals are often the norm.

Some companies are able to thrive in this environment, perhaps most notably the global retailer Zara, founded in Galicia, Spain. “Fast Fashion” is the guiding force.  In the 1980s, the company invested heavily in design, manufacturing and distribution systems capable of reacting to market trends very quickly.  As a result, Zara is on top of nearly every trend in women’s, children’s and men’s fashion and customers eat it up.  As of March 2018, there are 2,251 Zara boutiques in 96 countries.

Smaller companies and Freelancers cannot come close to being able to match the power of Zara, but it is possible to leverage relationships and personalization to encourage your current and prospective customers to share what is important to them and discuss how you can meet their needs today and in the future.  You probably already know that all too many of your customers will move on and do business with another company that seems to offer a better mousetrap without even discussing their needs with you first.  It is discouraging, I know.

The best defense is to be found in the 5 Ps.  Start with Personalization and move to Purpose, so that you can make it known that your company can advance the customer’s goals.  Segue next to Protection and use the trust that you develop to encourage prospects to feel confident about doing business with you.

Thanks for reading,

Kim

Photograph: Lurch (Ted Cassidy), the Addams family butler, in an episode of The Addams Family  (1964 – 1966, ABC-TV)

Professional Development Leave a comment

The Smart, the Talented and the Lucky

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The fickle randomness of the phenomenon called luck fascinates me.  I wonder why luck seems to so often reward people who don’t seem to deserve its favor and punish those who are good and hardworking people.  Luck is maddeningly capricious.  Who among us has not worked and planned and calculated the possibility for the success of a certain project, only to have it fall through and at another time, be amazed at the success of another project that has been given only casual thought and little effort?

I know quite a few people who’ve been very, very lucky in life.  Some have made the most of their good luck and others have squandered it (but they still do sort of OK, because they are lucky).  I’ve noticed that other than a man with whom I worked for a number of years, who was often very lucky and acknowledged his good fortune, people who are lucky do not believe in luck.  They actually believe that they can make all sorts of wonderful things happen all by their lonesome.  Some tell me that they pray and their chosen Deity answers their prayers.  Some tell me that they visualize what they want to happen and so it is given to them.  Still others claim that they always plan carefully and their plans yield the expected results, nearly always.  Riiiiight!

What my fortunate friends do not realize is that the answer to a prayer can be “No,” that plans can fall apart because they often depend upon certain critical factors falling into place, that is, good luck is an unacknowledged ingredient of the plan; and that one can visualize a future that seems fully attainable, not at all grandiose and yet the process can yield nothing but daydreams and disappointment.

My lucky pals are as clueless as The Fool pictured above, because they can afford to be.  I have seen certain of them (metaphorically) ready to step off a cliff when the ground somehow rises up to meet them so they do not stumble.  In my life, when in a similar circumstance, I’ve been thrilled to see a nice bridge appear to rescue me, only to be horrified when it turns out to have been built by the folks who engineered the amazing bridge at Florida International University.  Sigh.

In a 2017 study conducted at the University of Catania in Sicily (Sicilians absolutely believe in luck and if you are Sicilian or Italian—yes, they are different!— you will know this to be true).  Alessio Biondo, Alessandro Pluchino and Andrea Rapisarda created a computer model of 1000 virtual people.  Some of the virtual subjects were given more intelligence, talent, or money and others less, in an attempt to simulate real life.  During a 40-year “career,” certain virtual subjects received “lucky events,” i.e., opportunities to boost their careers that their intelligence or talent could help them exploit.  But some were made to suffer “unlucky events” that took away some of their career advancement and money.  At the end of the 40-year “career,” the scientists examined the characteristics of the wealthiest virtual people.

The results showed that while intelligence, talent and wealth play a role in the achievement of success, those who rose to the top were almost always the recipients of “lucky events.” Lead researcher Alessandro Pluchino wrote, ” It is evident that the most successful individuals are also the luckiest ones and the less successful individuals are also the unluckiest ones.” The study also reinforced the validity of the Pareto Principle, known as the 80/20 Rule, meaning that 80% of the wealth in the virtual society wound up in the hands of 20% of the population, as it does in real-world societies.

That 80/20 distribution does not correspond with the distribution of intelligence and talent. “The maximum success never coincides with the maximum talent and vice versa,” noted the researchers. “Our simulation clearly shows that such a factor is just pure luck.”  Pluchino and his team showed this by ranking the virtual subjects by the number of lucky and unlucky events each experienced in their simulated careers.  The most successful individuals had the most good luck and the least successful had the most bad luck.

So now what? Do those who are short-changed by good luck just roll with the punches? I mean, these findings, although most likely accurate, run counter to the American can-do, Horatio Alger spirit.  One must take charge of life and never knuckle under to unfortunate events or unsavory people.

I suggest that the best way to bring good luck, or at least minimize bad luck, is to introduce Feng Shui, the ancient Chinese system, into your home and office.  Eight years ago, I wrote about exploring Feng Shui.  You can play catch-up here.

In short, start by cleaning and organizing your home and office.  De-clutter and organize because qi, good energy, likes order.  Give yourself a harmonious environment and you are almost guaranteed to feel more relaxed, less frazzled and more confident.  Because you will become more calm and centered, you’ll function more effectively in your professional and personal lives.  I think it could be successfully argued that you’ll be positioned to more easily recognize both potentially good and bad events along your path.  You can then gravitate to the former and avoid, or at least mitigate, the latter.

Feng Shui will probably not replace an overabundance of bad luck with good fortune, but you’ll most likely be able to grab whatever good luck crumbs come your way and that’ll be about as good as it’s going to get.

Thanks for reading,

Kim

Image: The Fool, from the ancient tarot card deck. In a tarot card reading, The Fool represents one’s potential and abilities and also new beginnings.  He is young, lucky, light-hearted and blissfully unaware of potential limitations and danger.

Sales Leave a comment

Save the Sale You Might Lose

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  1. No urgency to get the deal done

SYMPTOM:  The prospect will not engage in a serious discussion about buying your product or moving forward with the alleged project you hope to work on. Probing questions about the product, or about the solutions your service would provide, are deflected.

TACTIC:  Look for a way to take an advisory role.  Surely you’ve been given some information about the client’s reason for speaking with you? Build on it.

If the prospect has no questions, then you propose them.  Start by asking if the project/ need, or something similar, was previously addressed in-house or by another vendor?  Find out what was done in that instance and the outcome—could that solution be implemented in this circumstance ? Are there certain refinements and customization of product specifications or services that the prospect  would find potentially useful this time around? Point out how you can fulfill those expectations.

Your goal is to spark some interest and get the prospect’s wheels turning to envision how you can deliver what is needed and concluding that you should be awarded the sale.

2.   No firm project deadline

Early in conversation with a prospect, it is advisable to inquire about the timeline.  It’s often safe to assume that conversation is taking place because the need is immediately urgent, but that is not always the case.

SYMPTOM: Sometimes, clients will contact a Freelancer merely to learn what types of services are available from an outside expert and how much these services cost.  Next year’s budget may be on the drawing board and the client is in no rush to fund a sale at this time.

TACTIC: Find out as much about the project specs as possible and offer the client a discount that is good for 8 – 12 weeks.  Give a 25% discount (or make it appear that you have done so!) for a project that is started within three months.

But if it becomes obvious that the prospect is not going to kick things off anytime soon, leave your card and walk away.  Stop wasting time.

3.   You’re not speaking with the decision-maker

SYMPTOM: You know or suspect that the person with whom you are speaking may not have the authority to green-light the project or sale.  It’s not uncommon to have an early conversation or two with a lieutenant in the company, but important deals are basically never negotiated by anyone but the C-Suite, Directors or VPs.

TACTIC: Show respect for the person you’re speaking with and ask if s/he is the decision-maker (you may be able to guess by the job title).  If the decision-maker is your contact’s boss, ask when the boss will join your meetings.  Suggest bringing the boss in by Skype or conference call, so s/he can directly ask questions of you and you can sell the person who  needs to be sold.  The boss will also be able to confirm the budget and any deadlines.

4.   Your price is too high

SYMPTOM: The prospect feels that your price is too high.  This complaint is often a smokescreen, or a bullying tactic.  Some clients make a sport of squeezing a small vendor on price because they enjoy exploiting others.  Other times, the client really does have a limited budget and can only afford to pay so much.  If the company is small, you can perhaps assume the latter and if your prospect is with a large organization, it’s probably safe to assume the former.

TACTIC: Ask what the budget is, then ask what the must-haves are re: the product or service that you would provide and then customize according to what you can afford to provide as regards your service or the product features.  Under no circumstances should you lower your price and offer the same level of service or the same product features.  Other options are to throw in value-addeds to sweeten the deal, or to offer an extended payment plan.

Thanks for reading,

Kim

Photograph: Street vendor, courtesy of Sofia Cristina Cordova Valladares (Mexico) on Pixabay

Marketing , , Leave a comment

6 Conversation Starters for Your Next Networking Event

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At last! You’ve been thinking about going to a chamber of commerce meeting for three years and you’re finally doing it.  The speaker will address a relevant topic.  The weather forecast is good.  You know where to park.  The only downside is that you probably won’t know anyone in the room.

You’re not shy, but neither are you keen on ping-ponging around a roomful of strangers, in search of your next client, or at least someone to talk to.  You have no fear of meet and greets, but wouldn’t it be great if you knew some conversation starters that can steer folks away from the usual sports talk and “how’s business?” Let’s learn how to sidestep mindless small-talk and get into conversations that can launch a relationship.

  1. What subject has your attention right now?

When you’re meeting someone and searching for ways to connect, this question can open the door to a discussion about business, family, extracurricular activities, a much-anticipated vacation, even home renovations.  The person to whom you put this question will light up and be happy to talk and you’ll be on your way to building a relationship.

2.   What are you looking forward to?

This question opens the door to the person’s hopes and plans for the future.  Again, this makes it possible to start a real connection as the conversation progresses.  You communicate your genuine interest in that person and what s/he feels is important.

3.  What’s the best thing you’ve done this year?

Or what’s the smartest thing, or the luckiest?  Here, the person gets to distinguish him/herself and has the pleasure of boasting a little bit.  You’ll get to know what s/he values and what makes him/her proud.  You’ll gain some insight into the person’s past in this question.  You’ll get to know what makes him/her happy and also one of the sources of his/her self-esteem.

4.  What’s your story?

I’m careful with how I pose this question, to avoid appearing as if I’m looking to invade boundaries.  Maybe showing a bit of humor when you ask will make it go over well? Now you’ll give the person you’ve just met a chance to do what most of us adore—talking about ourselves! Here, you allow your new acquaintance to take center stage and discuss his/her past successes or challenges, reveal how s/he has overcome obstacles or taken advantage of opportunities and share his/her aspirations by shedding light on the road ahead.

5.  What are you currently reading?

Jane Austen, Shakespeare, Edith Wharton, or Stephen King? Getting to know someone through his/her choice of books is wonderful.  You’ll learn something important about your new acquaintance.  It’s possible that s/he seldom read books and instead prefers business journals and blogs and watching a lot of movies. Whatever.

While in conversation, you may be pleased to learn that you both enjoy certain authors (and actors) and that opens the door to an engaging conversation and the perfect opportunity to build a relationship, business and/or personal.

6.  How can I be most helpful to you right now?

An offer to help your new acquaintance to take a step closer to achieving a goal or objective is the highest compliment that you can extend and demonstrates that you trust him/her enough to put your reputation on the line on his/her behalf.  The building blocks for a relationship are about to be put into place.

Thanks for reading,

Kim

Photograph: Rosalind Russell as party hostess extraordinaire Auntie Mame (1958). The film won Best Picture and Best Actress (Rosalind Russell) Academy Awards.