Feb 2013 - Vol 8, Issue 2

Last month's 10 Minute Business Forecast Survey is complete and ready for you to download from my handouts page. In it you will learn what percentage of companies were up in 2012 versus down, how that compares with the 2012 forecast from a year ago, and what folks think will happen in 2013.

Plus I know you all look forward to the comments left by the respondents to these questions and their insights on the economic and business trends affecting our industry. Here's a couple of my favorites:

"Lack of clear deficit reduction plan by congress will perpetuate the unemployment issue and continue to stymie real economic growth."

 

"Entitlement spending reductions will pull funds from the economy and further slow the economic recovery and put more pressure on the Fed to find ways to stimulate the economic cycle."

 

"Finding customers that we can clearly communicate our value to, that understand why we should do business together, or not. The trend has been focus on price/bid. We are, and must continue to move away from customers that can only work in the price domain. This matters as it has direct impact on our project and division profitability."

When was the last time you asked any of your customers about their businesses - what makes them tick, what are their goals, or what is the state of their industry?

How often do you ask, "What do you really want from a supplier like me?" or "What are the key challenges in your business that technology might help solve?" -- And, how long can you last in this conversation before you resort to a sales pitch (or become defensive)?

Think about your target customer. List the top five questions they ask about you. Do you even know? Are these topics the top five points in your marketing?

Show one of your proposals to a friend. Ask them if they can explain what it is you are offering to do for the customer. Ask what the proposal says is important to you as the supplier. (Don't leave out the fine print, because THAT says a lot!). What was supposedly important to the customer?

Can you clearly describe your target customer or, do you end up reciting the services you provide implying that a customer is anyone that needs you? What do your best customers have in common?

Now, ask yourself, "Am I customer-focused? Or do I want customers to focus on me?" Sales and Marketing efforts often devolve into narcissistic messaging rather than helping the customer see themselves doing business with you, the supplier. Likewise, salespersons tend to focus on the potential project rather than the client relationship. Conversations start out as cordial discovery, but quickly turn into capabilities testimonials.

Salespersons are - by design and necessity - focused on winning business and most revenue comes in the form of a project. Whether the project is an installation or an event, the objective for most salespersons is to steer the conversation as quickly as possible towards getting the RFP.

This is more than a little selfish when you think about it. It suggests that you are only willing to invest as much time in the customer as it takes to get on the bid list. However, we have trained customers to act the same way in return. They treat suppliers with arm's length disdain and seldom want to make time to hear about why you are more qualified than the other twelve bidders.

Isn't the salesperson's most important job to listen? I believe there is a chapter in just about every sale training program on this point. What are we listening for? If you want the client to talk, you need to have questions they want to answer. You need to prepare by studying the target, preparing questions, and practicing the art of conversation. If the prospect wants to know more about your company, perhaps he or she will ask once they know you are interested in their company.

Food for thought. Thanks for listening...

Here's a few scribbles from the margins: 

Something that concerns me greatly is how often I hear words to the effect, "We have no control over [margins, price, relationships, the economy, what people think, etc...]" My thought is, if you have no control over it then perhaps you need to learn how to deal with it. Too simplistic?

If I told you that margins on traditional AV will continue to shrink forever, how would you live your life differently? Would you give up? Or, would you innovate? How many things in our lives are telling us we need to change?

 

See you next month, Tom