Archive for September, 2008

Integrated Marketing Campaigns – What happens when they’re not?

Wednesday, September 24th, 2008

Here’s a response I received last week–after posting a complaint on the offending company’s online feedback form about a misleading product offer.

“Thank you for your e-mail regarding your account. It is always our aim to provide the highest level of customer satisfaction. We are always concerned to learn that any customer is unhappy with the service we provide.

All applications are processed by our Customer Recruitment Department, so you will need to contact them directly [at phone number] with your request.

I must also advise you that if we do not hear from you within eight weeks of the date of this e-mail, we will assume that your complaint is resolved. We apologize for any inconvenience caused.”

The note ended with the writer wishing me his kindest regards.

Branding is the sum of the buyers’ experiences

This communiqué came from a business that regularly spends exorbitant amounts of money on branding their company, extolling the virtues of their products, and encouraging prospective customers to buy. Yet, they had clearly not spent as much effort developing their post-sales strategy.

What did this company do wrong? Rather than addressing my concern, the representative first gave lip service to the importance his company places on providing “the highest levels of customer satisfaction” Then, he suggested that I turn to someone else in his company for help. The buck clearly didn’t stop with him.

This “service” representative also made it clear that the onus was on me to resolve the issue. Finally, adding insult to injury, he apologized for the inconvenience he and his company must surely have been aware they were continuing to cause me.

What do you think my impression was of this company? What was the ultimate cost of this communication to the company? What could this representative have done differently to preserve good will–if not the sale?

When you think about these important questions, the answers are probably obvious to you. Why weren’t they obvious to the company in question?

Return on marketing investments are not always positive

It just didn’t add up. This company had invested in a direct sales force to sell me the product. They had invested significant sums in free gifts to sweeten the offer. Yet, in just one email communication, they had succeeded in reversing all the efforts they had made to get my business. Worse, they may have jeopardized any possibility of doing business with me in the future.

Chances are that many of you have received similar missives from equally well-known companies. How do strategic errors like this happen and what can companies do to prevent them?

Product Development – Giving buyers what they want the way they want it

Two posts back, we discussed the fact that if you want to speed up purchases, you need to know what’s important to customers and give them exactly what they want, the way they want it. This company clearly missed the boat. They got the core product right, but neglected to consider the ancillary services required to deliver it satisfactorily.

Although many companies think of product development as ending at launch, that’s not how buyers see it. Rather, buyers view the product in terms of their entire experience—from pre-sales offers, to purchase, to conformity with their expectations about functionality and ease of use. When their overall experience is positive, they buy again. When it’s not, they may even go so far as returning the product or canceling a service.

Nevertheless everyone makes mistakes. When businesses take steps to rectify the error, many buyers will give them a second chance and consider other products. When, on the other hand, companies are cavalier in their treatment of complaints, dissatisfaction can escalate. In the worst scenarios, buyers refuse to buy any products from the company and significant sums of promotion dollars spent on branding the company also go to waste.

Integrated marketing campaigns begin with integrated product development

What can businesses do to avoid these consequences? Here are some suggestions:

  • Re-define “product” success to include the buyers’ ultimate satisfaction 6 to 12 months following the purchase, rather than mere execution of a sale.
  • Encourage a culture where everyone in the company is motivated to personally contribute to the advancement of buyers’ satisfaction.
  • Involve every internal department in the product development process to increase the chances of anticipating all buyers’ concerns, avoiding missteps, and ensuring seamless delivery.
  • Ask them to research what actions their organizations can take to stimulate delight in their own areas of expertise—and what practices they’ll need to avoid.
  • Review the ultimate proposed delivery process from the buyers’ perspective. What issues might arise? What can the company due to avoid them altogether? For unavoidable issues, what steps can be taken to resolve them sooner rather than later?
  • Test the process with real users before launching and correct as necessary.
  • Follow up on all system failures and take corrective action.

One manufacturing concern I worked for convened cross-functional teams weekly to review and determine the root cause of all customer-reported problems. First, however, they classified any shipment that resulted in dissatisfaction—for any reason–as “dead on arrival”.

Marketing Research shortens the sales cycle

At BB Marketing Plus, we work with clients to look at the whole picture, upfront, from the perspective of prospective buyers. To step into our clients’ buyers’ shoes, we do a lot of primary marketing research but we also gather information from internal experts–such as sales people and customer service personnel–who know from experience where potential pitfalls lie. Cross-functional development teams then use this knowledge to guide the entire product development and launch process.

We find that mapping the buying process —and finding out exactly what prospective buyers expect at every stage—greatly increases our clients’ ability to hit the mark with both their product offerings and their marketing messages.

How does your business find out what’s important to prospective buyers so that you can give them what they want—and do it their way?

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Internet Marketing Tips: A Marketing Consultant’s Perspective

Friday, September 19th, 2008

The staff at Accounting Web wrote a post on Embracing the Internet as a Marketing Tool. When I started to add my two cents, I quickly ran out of room. Luckily, I have my own blog on the very same site, so I decided to interrupt the series on the buying process model to share my comments below:

Here are some additional ideas that our accounting clients use to leverage the Internet when marketing their firms.

Using websites to market professional services

As a strategic marketing consultant, specializing in professional services, I advise my clients to first:

* Think about who they need to reach

* What they want these individuals to say or do as a result of visiting the site

* What web visitors need to see to on the site to motivate them to take the desired action

In short, it’s all about the web visitors, rather than the company featured on the website. Most people that visit professional service websites are there to validate that the firm is expert at solving problems like theirs.

At a minimum, therefore, effective websites describe the business and the staff’s credentials. Some prospective clients also seek assurances that it will be easy to do business with the firm. For this reason, professional service firms with busy, tech-savvy clientele often provide on-line access to client services–as a way of positively distinguishing their firms from the competition.

Success depends on attracting visitors to your website

Putting up a website is like erecting a giant sign behind your office, no one finds it unless you tell them it’s there. You can attract visitors via word of mouth and conventional marketing materials. Nevertheless, the best websites contain content that attracts visitors and compels them to act.

The most effective technique is getting other websites to link to yours. Search engines also give precedence to “keyword-rich” content. Success depends on publishing lots of web pages—each of which mentions words that describe one of your services (e.g. “tax preparation”) many times on the same page.

Then, to get visitors to act, make them an offer they can’t refuse. For example, you may promise to review a document and credit their account when they ultimately engage you for the larger project.

Use outbound internet marketing tools to stay top of mind

Don’t wait for visitors to drop in; invite them to stop by. It’s important to reach out regularly to each of your key audiences if you want to stay top of mind. That’s because while everyone checks their email, few people–outside your own firm–visit your website on a regular basis.

We use the following tools to help our clients reach their clients and prospective clients. We also recommend our clients use these tools to stay in touch with other accountants who can refer business to them, help them serve their clients, or even join their firms as an employee. Important Internet marketing tools include:

o Email marketing

o Publishing articles on others’ sites to generate coveted links back to their sites (authors need to include their URLs as well as their names and qualifications)

o “Linked” in and other online networking services to generate “word of mouth”

o Posts on others’ sites linking back to our clients’ sites

o Blogs (readers can receive new posts automatically as email)

“Repurpose” all your marketing communications on your website for maximum impact

Then, we encourage them to add copies to their website.The nice thing about using the Internet instead of paper is:

* Content permanently resides on your website and therefore continues to market for you long after you published it

* Content is less expensive to distribute, and to revise for that matter.

* Great, inexpensive, tools exist for others to find you–obviating the need for expensive advertising.

Here’s an example of how we add copies of our own marketing communications to our website for maximum impact.

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Maximizing Sales Productivity Depends on Meeting Marketing Requirements

Friday, September 5th, 2008

There are many reasons that sales cycles stretch out. As we discussed when we reviewed how businesses buy, most companies delay buying until: 1) they recognize a clear need for a solution, 2) have a sense of urgency, and 3) identify product or service providers that they believe will meet their needs.

At that point, however, most buyers have a heightened awareness of the cost of delay–and are anxious to move forward. When they don’t, it’s a telltale sign that your product or service is missing the mark.

When interested buyers fail to purchase, after learning about how your solution will address their concerns, sales cycles stretch out as they seek a better match. If they find another provider that will give them exactly what they want, they’ll purchase there. Even when prospective buyers later purchase from your company, delays hold up your ability to recognize revenue—and may also run up your sales and marketing expenses as you try to close the deal.

In short, maximizing sales productivity clearly depends on your readiness to give prospective buyers exactly what they want, the way they want it. The question is, “How do you determine what that is?”

Effective marketing research is the fastest route to winning solutions

To design great solutions, you need a thorough understanding of prospective buyers’ most pressing needs and want. To get this information, it’s helpful to conduct primary marketing research by going straight to “the horse”, but not necessarily to the horse’s mouth.

One of the best ways to find out what’s most important to prospective buyers is to observe what sells and what doesn’t. One common mistake, however, is asking prospective buyers what they want. That’s because most of us only think we know what we want. We get it wrong, however, because we fail to take into account all the factors that come into play at the time of purchase.

We’re lousy predictors of our own behavior

Look at your own clientele. If you ask them, many would say they want an accountant who will find tax savings that they would otherwise miss. They might add that for this reason they seek out professionals with experience in their industry with a demonstrated track record of generating savings for others just like them.

Nevertheless when you look at actual buying behavior, many factors come into play—some of which ultimately end up taking precedence over the ones that are top of mind. Examples include availability when clients need to meet a pressing deadline, the ability to accept 90 day payment terms, a pleasant reception when they contact your office, or a plethora of other factors that prospective buyers are not fully aware are important to them until faced with a real situation.

Look to actions, rather than words

In our experience, the best way to find out what prospective buyers want is to look at their past purchasing patterns. That’s because we’re creatures of habit. We tend to do things the way we’ve always done them and maintain the same priorities.

One way to do that is to start with your existing clientele, specifically your best clients since they’re likely to be the best proxy for your most promising prospects. If, on the other hand, you’re losing the most promising prospects to the competition, start there with prospective buyers that chose to buy elsewhere. In either case, it’s important to focus on just your most promising prospects because you can’t be all things to all people.

Get at past purchasing patterns by reviewing your company’s sales history. If you maintain a lead tracking or contact management system, review your notes to determine:

* Which solutions did prospective buyers purchase right away?

* When they delayed why did they delay?

* What questions did they ask?

* What was the single most important reason they purchased?

* What concessions, if any, did you need to make to get their business?

* Under what circumstances were they willing to pay a premium and why?

* What caused them to select you over the competition?

* When they recommend your company, what do they say?

* If they went to a competitor, what was the reason?

* When you lost, what if anything could you have done to get the business?

If you didn’t record answers to these questions, it’s okay to go back and ask. Nevertheless, remember to focus on past purchases. As we discussed above, most people make far better reporters than analysts.

Worried about annoying people? Don’t! Most people are flattered that you’re interested in their insights and happy to share them with you if you are courteous and schedule an appointment in advance. If you’re just starting out, and don’t have any clients, interview your competitors’ clients.

Tip: Build your sales history as you go

At BB Marketing Plus we do a lot of marketing research to help our clients rank development priorities. Here are some tips your company can use to capture what is important to your clientele:

1. Implement a system that helps you map prospective buyers’ behavior including the stages of their buying process and:

* Who was involved at each stage

* What information each individual required

* What follow up questions each individual asked

* The time it took to move to the next stage

* The reason for any delays it took to move from one stage to the next

* Why you won when you won

* Why you lost when you lost

2. Ensure that you keep your system up to date, calling back buyers and prospective buyers to fill in knowledge gaps

3. Ask a lot of questions to get a sense of their entire situation and priorities, rather than just their immediate requirements

* Keep your questions open-ended, rather than making assumptions

* Ask individuals to report on past behavior, rather than to predict the future

4. Follow up regularly to assess satisfaction

* Ask about every aspect of your business interactions

* Find out what you’ve done well and what needs improvement

* Act on what you learn

* Thank people for their insights and communicate what you’ve done as a result.

Our clients find that they can learn a lot from the past. One of the findings that many find surprising is that while price is important, it’s generally not the deciding factor. Another revelation is that their clientele often has different perspectives—than they do–when it comes to defining quality. These are important insights when your goal is to give prospective clients exactly what they want and do it their way.

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