Posts Tagged promotional sales
Recession Defense
Posted by Dan in Promotional Ideas on September 3, 2009
Four Ways To Keep Your Customer Service Top-Notch And Indispensible
Flexible Workforce
In the face of staff cuts, cross-train employees so they can fill a variety of roles.
Spoil Your Staff
Uncertainty about their jobs can shatter employee morale, so offer work schedule flexibility and other rewards to compensate.
Invest In Low-Cost Technology
Consider purchasing small pieces of new equipment that make your workers’ lives easier.
Play Favorites
Keep your best customers happy with fast service, extra attention and flexible rules.
An Economic Lesson from the Past
Posted by Dan in Promotional Ideas on September 3, 2009
An enterprising early-American offers inspiration and a review of basic economic principles.
In 1806, Fred Tudor departed Boston and arrived in the Caribbean port of Martinique with a shipload of ice harvested from his dad’s pond in the dead of winter. Despite naysayers, Tudor made the ice last by insulating it with sawdust and hay.
The first day of Tudor’s arrival was a smashing success with people paying high prices for the ice. But the next day brought about a problem. All the ice had been unloaded but, in an act of misguided kindness, the boys at the dock had washed off the insulation. This created a puddle of water and lots of screaming people offering to pay any price for the ice they now missed. Thus, Tudor’s ice idea was a failure.
Tudor returned to Boston, poorer but wiser. Yet he had learned two key parts of marketing—the importance of adequate storage and the profitability of high demand in the face of scarce supplies. He set about raising new capital and bought the rights to harvest ice from several local ponds. Travel got risky as the War of 1812 broke out and he put his plans on hold. After the war, however, Tudor sent a ship to Havana—not with ice but with thick cedar planking and sawdust—and built an icehouse to keep the ice fresh. Then he had ice delivered to test whether the icehouse worked. It did.
Next, Tudor asked for a 10-year exclusive contract to be the sole ice supplier in Cuba and Martinique. No one thought it was a big deal since folks were not used to having ice in those locales. Then he started giving the ice away, especially to bartenders, along with exotic frosty drink recipes. The free ice created a demand, so Tudor began charging higher and higher prices. (Remember, he held exclusive rights.)
This ingenious marketing concept was later adopted by King Gillette and is commonly called the razor or razorblade theory. It works because the company practically gives the razor away and once customers need new blades they find only your blades fit that razor.
Tudor returned to New England, bought up the ice rights of hundreds of ponds and commissioned the manufacture of huge ice saws to cut ice blocks from the ponds. He compounded the strategy throughout the South; it’s been said he invented the mint julep just to sell more ice. For 80 years, Tudor and his heirs were the “Ice Kings” of America, all from a product nature supplies for free. And he became a multimillionaire in the process.
Where do Promotional Products fit in a Marketer’s Mind
Posted by Dan in Business Tips on June 8, 2009
Where Promotional Products Fit In A New Product Launch
Promotional Products Mind
Marketers know that innovation is what drives continuing profits. So, when they introduce a new brand, product or service to the market, what are the main attributes they look for in the media they choose? Targetability and memorability—characteristics of promotional products—are the principal media requirements discovered in a recent study, Launching Brand Innovations To Market, conducted exclusively for PPAI.
Relentless competition and market pressure continually drive businesses to reduce the time, effort and costs involved in bringing products and services to market. A 2005 survey of C-level BusinessWeek readers concluded that product development “is now one of their highest business goals, and that enhancing their ability to collaborate internally and with partners is a priority.” Importantly, corporate leaders proved “eager to learn more about how to optimize their new product development processes, so they can achieve their revenue goals.”
Implications For Promotional Products
Media sellers—including the companies in the promotional products industry—are interested in how marketers go about the process of mounting a new brand/product/service launch and why they make the choices they do. Consequently, PPAI’s Marketing, Research and Information Committee asked us to conduct a mail survey of marketing executives in various industries to determine how they budget and select media for their new product roll-outs and what the implications are for promotional products sellers. Further details are included in the sidebar “More About Our Methodology.”
Getting a better handle on current business conditions was a key reason for the survey. Another factor: There seems to be very little published about marketing executives’ thinking as it relates to making promotional choices in launching new brands, products and services. Our inquiry covers several audiences involved in a new product launch, including salespeople and employees addressed by internal promotion.
Frequency Of Roll-Outs
Good news! Marketers tend to freshen up their lines frequently. More than half (56.5 percent) of respondents report they launch something—a new brand, product or service—at least once a year.
In follow-up phone interviews, we asked several executives how the current state of the economy might affect their organization’s plans. Are they cutting back? Larry Hedeman, vice president, sales and marketing for World Magnetics in Traverse City, Michigan, says his company recently launched two new products and is preparing to launch another one.
“My take is that it’s a good time to do that. You need to offer something that hasn’t been offered in the past. Even though the economic times are hard, we’re going to push forward and launch new things,” he says.
His firm manufactures ultra-sensitive pressure and vacuum switches. His biggest concern, other than whether or not his firm’s launch is successful, is other companies’ products. “Our product is primarily designed into someone else’s. I guess when a new product might be used, my concern is that the other manufacturers are going to shelve their projects or put them on hold because of the economic situation … A lot of people have said they’re going to launch their new products, [but now] they’ve decided to postpone them.”
Jennifer Foshee, marketing director for Guardian Credit Union in Montgomery, Alabama, reports, “Loan demand is down, so that would tell us we need to find new loan products that would help bring a [credit union] member in for loans. We are looking at member education initiatives. That may not be a new product, but it would definitely be a new service. Educating our members more—their credit, the basic budgeting, balancing their checkbooks [is a priority]. We see 2009 as more of an educational year.” Her biggest concern is ensuring ROI.
Kimberly Dermit, marketing manager for Allied High Tech Products Inc. in Rancho Dominguez, California, caters to firms in microelectronics, materials science and manufacturing. “We’re actually in the midst of a new product roll-out right now,” she says. “So, [the recession] did not stop us because our fear was if you don’t keep in front of the consumer—in front of the businesses that we service—when the money does come back they’re going to forget about us. So, we are coming out with a new product; we’re putting tons of money into it. … [Buyers] may not be able to buy it right now, but they’ll see it and want it and they’ll put it on their wish list. And when the money does come back, they’ll come to us.”
She adds, “Our biggest concern is that we’ll be able to sell enough units to justify the amount of money put into the product. That we can trust our salespeople and the companies we know are asking for this product, that it is something that is viable and will sell more than, say, 10 units.”
Media Choices And The Reasons For Making Them
As pressure to become more cost effective is only likely to increase, there are opportunities for those providing promotional products to make a case for this unique medium at all budget levels. Mass media no longer have the lock on budgets for new product introductions. In a hand-raising count by the Association of National Advertisers, 33 percent of a 1,200-person sample signaled they expect to keep their 2009 ad spending constant but would be doing some reallocating in the marketing mix.
As Mark Lawrence, owner of California Scientific Inc. in West Sacramento, California, indicates, “I used to do it the old way—send announcements to magazines, buy print ads, get into business reply card decks. It was a huge waste of money and time. Print media is dead.” Lawrence’s firm is engaged in neural network-based artificial intelligence, and as a sideline he also sells specialized equipment for motorcycles.
As more businesses reexamine their practices and make changes in their marketing mix, the promotional products industry would naturally like to have much of the rearranging done in its favor. This need not be an unrealistic expectation. So while the survey findings here may be surprising, they can prove lucrative for innovative packagers of promotional products solutions. Based on what our respondents told us, we found that:
• Telemarketing is the medium least used in roll-outs, with the exception of high-tech firms.
• Trade association products are the media option most often cited by respondents to introduce new products to pertinent audiences. Among companies large and small, seven out of 10 included trade media (e.g., trade shows, direct mail and industry periodicals) in their roll-out budget. A correlate of this is the finding that respondents’ most-often-cited use of promotional products is to support roll-outs at trade shows.
• The heaviest use of promotion, which includes promotional products, is found among the Other Manufacturing and Services segment. The 59.1 percent usage by companies in that cohort puts promotion in close proximity with trade, mass media and abreast of interactive (internet). Advancing to a higher promotional products usage ratio seems doable, provided that all opportunities are explored (see Table 1).
Table 1: Roll-Out Media Used
|
High-Tech
|
Biotechnology/Healthcare
|
Other Mfg & Services
|
All Companies n = 195 |
|
|---|---|---|---|---|
| Mass Media |
17.6%
|
58.9%
|
65.9%
|
51.3%
|
| Trade |
92.2%
|
67.9%
|
60.2%
|
70.8%
|
| Interactive |
66.7%
|
48.2%
|
59.1%
|
57.9%
|
| Promotion |
13.7%
|
33.9%
|
59.1%
|
40.0%
|
| Telemarketing |
17.6%
|
14.3%
|
10.2%
|
13.3%
|
*Since respondents were asked to check all media choices that apply, the sum of percentages is more than 100 percent.
Our follow-up interviews also asked marketing executives if they are considering incorporating media that are different from what they are currently using. Hedeman of World Magnetics told us his firm’s sales involve B2B. “We always seek out new ways to market our products. I’m constantly looking for various [individual] mediums to use, whether it be print or to have a presence on the web or e-mail marketing. We’re certainly open to other avenues.”
Dermit reports Allied High Tech Products “actually increased our marketing budget for print advertising. We’re doing more print advertising than we’ve ever done.” On the other hand, Foshee indicates Guardian Credit Union doesn’t have any plans to change ad media.
Perhaps the greatest threat as well as opportunity for promotional products manufacturers and distributors involves that conglomerate called “interactive.” In terms of sales, this medium is poised to soon overtake everybody (maybe not direct mail just yet). Note that Table 1 shows Interactive was the second-most-mentioned medium for introducing new products (57.9 percent). Those in the promotional products industry are well-advised to maximize the ways that promotional products can be integrated into the online world.
The medium does have an Achilles heel, however. Glut. An e-mail specialist in Media Post says: “Our industry is currently facing one of the most significant threats to its health and existence. What has me concerned is self-inflicted by those of us within the e-mail space: the rampant over-mailing of promotional messages.”
Most Important Media Considerations
To ascertain how marketers prioritize campaign elements in new product launches, we asked them to state the two most important attributes they considered in making their media choices. The seven choices were:
• Reach
• Economy (e.g., cost per impression)
• Impact
• Targetability (to reach specific audiences)
• Ability to create good will for company
• Ability to sustain long-term exposure and impression
• Other
As it turns out, reach wasn’t a prime consideration for those in the survey sample, but targetability, a characteristic often associated with promotional products, is by far respondents’ most important attribute. It was mentioned by 69.2 percent and was the dominant attribute by company size and across the three industry classifications, most notably in the high-tech category. In other words, marketers need to target their messages to the audience that’s most likely to buy. And when the audience is known, promotional merchandise has a slew of advantages—if properly positioned. Once they learn the makeup of customer audiences, promotional products salespeople—the experienced ones anyway—usually have a gut feel for what the end buyer needs. They instinctively know to show Catalog A, not Catalog B. Nevertheless, their aims for targeting can always be enhanced with a thorough understanding of targeting metrics.
Two options associated with memorability—impact and long-term exposure—were also among the choices listed. If new products fail to achieve memorability, they seldom live long enough to become old products. Among the memorability attributes, impact was the most mentioned when respondents made media choices, followed by long-term exposure and then impression, which is tied with economy. Impact and long-term exposure, critical in a new product/service launch, are also qualities commonly associated with promotional products.
Surprisingly, creating good will, another attribute of promotional products, did not rate as an important consideration in planning a new product launch according to survey respondents (see Table 2).
Table 2: Most Important Media Attributes
| Small Companies < $25 Million | Large Companies $25 Million Or More | All Companies n = 195 | |
| Reach | 24.2% | 26.0% | 25.1% |
| Economy | 31.6% | 26.0% | 28.7% |
| Impact | 29.5% | 40.0% | 34.9% |
| Targetability | 70.5% | 68.0% | 69.2% |
| Good Will | 7.4% | 6.0% | 6.7% |
| Long-Term Exposure, Impressions | 31.6% | 26.0% | 28.7% |
| Other | 2.1% | 3.0% | 3.0% |
Use Of Promotional Products
The findings demonstrate strong agreement that promotional products are widely used and effective. Seven out of 10 respondents say their companies incorporate promotional products in their roll-out programs. The application most frequently cited for promotional items are for tradeshows and for roll-out announcements and as motivators for employees and salespeople. Among industries, the highest incidence of usage is seen in the Other Manufacturing & Services category (see Table 3). Worth noting is that the services sector contains a large number of banks and financial institutions—one of the top customer segments for distributors.
Table 3: Use By Industry
| Percent (n = 136) | |
| High-Tech | 24.3% |
| Biotechnology/Healthcare | 27.9% |
| Other Manufacturing & Services | 47.8% |
Advertising And Promotion Budgeting/Spending
Only three out of 10 respondents reported ad/promotion budgets of $500,000 or higher (see Table 5).
Table 4: Percent Roll-Out Spend vs. Total Ad Budget
| High-Tech | Biotechnology/Healthcare | Other Manufacturing & Services | All Companies n = 2 | |
| Less Than 5% | 23.4% | 28.8% | 31.3% | 28.6% |
| 5 – 10% | 27.7% | 28.8% | 31.3% | 29.7% |
| More Than 10% | 48.9% | 42.3% | 37.3% | 41.8% |
• Most companies (72.3 percent) allocate more than five percent of their total ad/promotion budget to new product roll-outs. The largest segment (more than 41 percent) of that subset allocates more than 10 percent to product launches. There is virtually no difference between small and large companies.
• The strongest expense concentration on new product launches is found among high-tech companies. Almost half of that industry group designates more than 10 percent of their ad/promotion budget to roll-out campaigns (see Table 4).
Table 5: Ad/Promotion Budget
| Percent (n = 197) | |
| Less Than $100,000 | 36.0% |
| $100,000 – $499,999 | 34.0% |
| $500,000 and up | 29.9% |
Price Points For Promotional Products
What are the typical price-point ranges for respondents’ companies that buy promotional products for roll-out purposes? Respondents purchasing promotional products tend to prefer inexpensive goods. This is true for both imprinted items and for premiums and incentives.
• For imprinted gifts, low-end items are the preference for an overwhelming majority (73.4 percent) of buyers.
• Price points for premiums and incentives show a fairly even distribution over three price ranges. Slightly more than half (53.7 percent) of respondents report a preference for items costing less than $10 (see Tables 6 and 7).
Table 6: Price Points For Free Imprinted Gifts
| Percent (n = 143) | |
| Less Than $5 | 73.4% |
| $5 – $10 | 18.2% |
| $11 – $25 | 7.0% |
| More Than $25 | 1.4% |
Despite the emphasis on lower-end items, roll-outs can be profitable business for distributors if the volume is sufficient and margins aren’t sacrificed.
Table 7: Price Points For Premiums & Incentives
| Percent (n = 93) | |
| Less Than $5 | 24.7% |
| $5 – $10 | 29.0% |
| $11 – $25 | 23.7% |
| More Than $25 | 22.6% |
Effectiveness Of Promotional Products
Promotional products are viewed as being “very effective” or at least “somewhat effective” by an overwhelming majority (70.3 percent) of purchasers. This figure is consistent with other research conducted for PPAI. Respondents who were not the least bit impressed with their experiences with promotional products constitute only a small subset (5.4 percent), again a typical finding for these studies.
Importance Of Trade Audiences
To introduce new brands, products or services, companies reporting in this survey focused most heavily on trade audiences. Besides industry periodicals and direct mail mentioned previously as trade media examples, exposure is widely provided through tradeshows (71.4 percent). Roll-out announcements and motivators to employees and salespeople (49.0 percent) were the other applications most frequently indicated by respondents (see Table 8).
Table 8: Promotional Products Uses
| Percent (n = 136) | |
| Trade shows | 71.4% |
| Roll-out announcements and motivators to salespeople and employees | 49.0% |
| Sports and community events | 28.6% |
| In-store free gifts and incentives | 25.2% |
| Dealer/retailer incentives | 23.8% |
| Other | 17.0% |
* Since respondents were asked to check all uses that apply, the sum of percentages exceeds 100 percent.
In our phone follow-ups with marketing professionals, we also asked about how they incorporate imprinted merchandise (i.e., promotional products) in their roll-outs. Allied High Tech Products’ Dermit says her company finds them useful. She mentioned typical items being calendars and coffee mugs. Hedeman at World Magnetics also commonly uses a variety of promotional products, but not so much with roll-outs. He adds his company has been “pretty much satisfied” with items and services received from vendors. Foshee says Guardian Credit Union’s promotional products’ vendor is “basically user-friendly.” Her distributor visits frequently, plus she gets catalogs, e-mails and websites from which to order.
Tracking Results
About two-thirds of respondents say their companies track results obtained from the media they use for roll-out campaigns. Online click-throughs and webinar registrations are the methods most frequently cited, followed by leads gained from tradeshows and events, and coupon/promotional code responses. Other comments about tracking results focused on the following methods:
• Comparing new/lost customers from year to year, comparing type of product being purchased
• Requests for data sheets or white papers from targeted customers
• ROI reports from media companies
• Sales force and customer polls, feedback
• Surveys; perception tracking
Market Testing And Promotional Products Business Potential
The survey also included questions about market testing with the purpose to explore whatever business potential there might be for distributors. Somewhat surprisingly, slightly fewer than half (46.2 percent) of those respondents say their companies undertake actual market testing before committing to a new brand/product/service roll-out. Failure to test the waters through extensive consumer research may seem contrary to prudent marketing practice. However, many line extensions require little or no R & D and the accompanying expenses. Often what is passed off as new is simply a slightly altered version of what someone else has been doing successfully; hence, little risk for a new product.
Considering the large number of respondents to this study who say they don’t market test (although they may invest in inquiries such as customer satisfaction studies), is there an opportunity for distributors to enlarge their receipts from customer research?
Answering the market test question, one respondent stated: “No—but would like to.” For distributors to convert marketers with that mindset, they would have to be convincing. The selling point, of course, is information—securing an edifying picture that every marketer should want. At a time of declining response rates, marketers are fairly desperate for something to juice up participation, using rewards and incentives such as $100 cash, discounts or coupons. Are promotional products a better, less expensive, more efficient choice? Also keep in mind that of the majority of companies that do conduct market testing, about half give incentives or reward participants—an opportunity those in promotional products can build upon.
From Concept To Launch
How long is the typical gestation period (planning, agency consultation, media buying, prepping dealers, retailers, sales force and employees) before launching a new brand/product/service? For the largest group of respondents (40.4 percent), the span from new product concept to launch is three to six months. This is a critical window that media sellers and service vendors have to pursue for a place at the table and a bigger slice of the pie (see Table 9).
Table 9: Roll-Out Preparation Time
| High-Tech | Biotechnology/Health care | Other Manufacturing & Services | All Companies n = 185 | |
| Less Than 3 Months | 38.0% | 13.5% | 16.9% | 21.6% |
| 3 – 6 Months | 30.0% | 44.2% | 44.6% | 40.4% |
| More Than 6 Months | 20.0% | 23.1% | 25.3% | 23.2% |
| Varies-Nothing Typical | 12.0% | 19.2% | 13.3% | 14.6% |
A Final Word
As previously noted, the marketing method most respondents chose for their new product and service launches were the trade association offerings. Primarily a business-to-business venue, this includes tradeshows, industry periodicals and direct mail. A correlate of this is the finding that respondents’ most-often-cited use of promotional products is to support roll-outs at tradeshows.
Those marketing executives surveyed generally reported they opted for inexpensive promotional products. Despite the emphasis on lower-end items, roll-outs can be profitable business for distributors if the volume is sufficient and margins aren’t sacrificed.
Brand equity is the sum of all components comprising the reputation value of an organization and what it sells. An element of brand equity is brand expression—an organization’s properties, products, presentations and promotion. Promotional products are indigenous to brand expression. It seems curious that as stewards of brand equity, marketers so often choose options with widely acknowledged tendencies to commoditize the brand—options such as deals, discounts and coupons.
Despite a tough economy, or perhaps because of it, there remain excellent opportunities for promotional products distributors to expand their media market share. But meeting customer needs requires more than simple legwork. Moving beyond the notion of a specific product to providing solutions to marketing problems requires insight and commitment to clearly educate potential buyers of the benefits of promotional products.
More About Methodology
Translating the potential into the practical required that we contact decision-makers directly in order to get information useful to PPB readers. Data were collected by a mail survey of marketing executives in several selected industries, supplemented by personal interviews. These industries included:
• High-Tech (computers, software, electronics, telecommunications, etc.)—26.5 percent
• Biotechnology & Healthcare (biotechnology, pharmaceutical, chemical, hospitals, medical appliance manufacturing, etc.)—28.6 percent
• Other Manufacturing & Services—44.9 percent
About seven out of 10 respondents held job titles in marketing ranging from executive vice president to administrator. Other survey participants came from communications and public relations, brand management or company ownership. The survey was conducted for PPAI during October and November 2008, supplemented with follow-up interviews in February 2009. The mailing drew 200 usable responses, “usable” meaning the respondents’ organizations actually created new brands, products and services and introduced them to the marketplace as either stand-alones or line extensions. In terms of revenues, the Large Company group (sales of more than $25 million) totaled 48.6 percent of those answering the questionnaire, while the Small Company group (sales less than $25 million in sales) comprised 51.4 percent of respondents.
For more information and help finding promotional products that fit your marketing goals, visit GallantGifts.com
Benefit Big Time by Using Promotional Items
Posted by Gallant in Business Tips on April 10, 2009
There are several marketing strategies that incorporate the use of promotional gifts and items. It is due to the fact that more people are easily attracted to custom made items especially if these are offered as free. Several types of promotional products are designed according to the merchandise it supports. In selecting which products are to be used, you should take into consideration the relation of the item to the service or product you are selling. You may want to base your choices depending upon its usability and effectiveness in promoting your product.
As for choosing the right type of promotional items, it does not necessarily have to be something that is closely related to your advertised services or products. For example, if you are in the sector of beauty and health solutions, you may consider giving out some alternative promotional products such as bags, manicure sets and scented candles. These items would still help in your marketing procedures even if it is not related to products you distribute.
The main purpose of giving out promotional products is to get your company or brand name to be recognized by more people. In order to do this, you may have to consider the customer’s interests before choosing on which of the available types of promotional items that you would use. If you want to consider increasing the effectiveness of your marketing strategy, you may also want to consider not just the preferences of the customers but their associates’ as well. By doing this, you are letting your satisfied customers do the advertising for you. The influence that your promotional products make would eventually take effect when it comes to gaining popularity.
There are several techniques on how to use promotional products on your marketing venture. The best place to start marketing your merchandise is setting up a stall on upcoming mass events such as business seminars, trade shows, conferences or exhibitions. You may hand out your promotional items to people that are passing by your trade stand or stall. By doing this, you are not just getting your company or product known to new customers but also enable your name to be openly broadcasted to the public.
Given the fact that the success of your promotional activity depends upon the spreading of your promotional products, you may want to consider choosing between items which are durable or often used by your target customers. These products are proven to be effective when it comes to promoting a certain service or merchandise. You may want to consider this in your decisions in selecting which items are to be handed out to potential customers and clients.
Since the success of your promotional product depends upon its ability to reach the most number of people, you may want to utilize items which would be seen by people for a long time. Promotional products which are durable and practically used by people would give best results in helping you boost your marketing success.
Making Sales in Tough Times
Posted by Dan in Business Tips on April 6, 2009
There’s only one problem salespeople face when times are good—getting sloppy. It’s easy to be deluded by success into believing success is due to our incredible ability to convince customers to do business with us. Truth be told, we believe customers are flush with cash and just want to place orders.
For the moment––and perhaps longer––customers are cautious, somewhat fearful and far less willing to sign our orders. They are more thoughtful and slower to act. In such circumstances, what are salespeople to do? Simply hope for the best or emphasize lower prices? I offer these 20 tough-times sales tactics:
1. Keep customers and prospects informed, but don’t bombard.
There’s been hardly a day since January that the warehouse retailer, Costco, hasn’t e-mailed to its customers.
2. Don’t blink.
There’s a tendency to want to hunker down and let the storm go by. This is the time to increase your visibility, particularly since the competition will likely become invisible, waiting for the good times to roll.
3. Offer help.
What customers need more than anything else is help with innovative ideas. Be their sounding board. You’re the expert. Help them. If you can’t be of assistance, you don’t get business. Show them you can deliver more than a product or service.
4. Stay away from stupidity.
In tougher times, the scam artists come out of the woodwork to prey on companies and salespeople feeling the impact of a downturn. It’s easy to be drawn to such offers as “100 FREE leads” or “We’ll make you more appointments than you can handle.” Salespeople are believers who fall for a good sales pitch.
5. Hang on to customers.
In the summer of 2007, Sprint Nextel sent letters canning a group of customers who called too much. While getting rid of high-maintenance customers may seem tempting, it can backfire. Wharton professors Jagmohan Raju and Z. John Zhang indicate that dumping low-value customers may actually reduce profits, while efforts to enhance their value can be counterproductive. Instead of firing high-maintenance, low-value customers, a better approach may be to keep them but find more efficient ways to serve them.
6. Get serious about prospecting.
The goal of a prospecting program is long-term growth, not instant sales. Get serious about identifying those who fit the profile of your best customers and start staying in touch with them via opt-in e-mail and direct mail campaigns, for example. Let them get to know you are serious, competent and can help them. It pays off over time.
7. Focus on value.
A clear shift is taking place with buyers. They want to know, “Where’s the value?” If this isn’t made clear, will they go elsewhere?
8. Make every meeting valuable.
Because most meetings waste time, have a clear purpose when you ask for a meeting and make sure the customer agrees it is worthwhile. Stop dropping in on customers.
9. Answer communications.
Prompt, clear and complete telephone and e-mail responses send the message that you’re timely and efficient, qualities that will set you apart from a majority of other salespeople. Use the spell-check, too.
10. Know the economy.
Reading trade publications is essential, but not enough. Know what’s going on in the economy, both short and long term. If you must choose one source, make it USA Today online (www.usatoday.com) with its concise, helpful and accurate information.
11. Keep your antennae up.
It’s easy to get blindsided in tougher times. Listen to customers. Don’t ignore their concerns and fears. Make sure your sales pitches and presentations speak to these issues and send the message that you are in sync with their concerns.
12. Show customers ways to reduce costs.
Don’t assume your customers believe you are looking for ways to save them money. In fact, they may actually feel you want to do just the opposite. Always be alert for cost-cutting solutions and be sure to let them know this is how you’re working for them.
13. Tighten your schedule.
We all fall into regular routines and would go nuts if we didn’t. Yet, this can work against us. Giving customers proper attention takes time, including making sure we stay in contact with them.
14. Introduce proprietary products.
There is nothing more useful and beneficial than proprietary products and services. Look at your supermarket’s shelves. Name brands are disappearing and lower-cost store brands are taking up more space.
15. Always tell the truth.
While being truthful is always essential, it’s even more important in difficult times when customers need candid, thoughtful advisors more than ever. In such times, you can demonstrate to customers your true value.
16. Make every minute count.
Never call a meeting without having an agenda. Also set time limits for meetings. If you’re making sales calls, do everything you can to group them as close together as possible. If you’re traveling to a specific area, arrange other appointments; don’t plan to drop in and hope someone will see you.
17. Stop the jargon and BS.
Some customers will tolerate it in good times but not when they are stressed and under pressure. Tougher times require plain, clear and direct talk. If you don’t stop acting as if everything is coming up roses, you’ll come across as disingenuous or a fake.
18. Be patient.
Acting rushed sends customers the message that you’re panicked. We don’t see it as much in ourselves as we do in others––and we don’t want to be around them. It’s time to nurture customers, not bombard them.
19. Don’t over promise.
This is a tough one. When there are fewer or smaller orders, salespeople often have trouble resisting the temptation to over promise just to get an order. Then, when you can’t deliver on the promise, the empty excuses only serve to undermine your credibility, and the next order goes to a competitor.
20. Don’t rely on the past.
While Shakespeare said, “The past is prologue,” it may not be today. It’s always more comfortable to look backward than forward and talk about what may lie ahead. Where we have been is more comfortable than an unknown future. How many salespeople say, for example, “I know what my customers want,” while totally oblivious to the changing behavior, needs and wants. They are blinded by a past that may lead them down the wrong path.
In tougher times, selling is more challenging than ever. To be successful and buck the trends, we must make use of every resource we can. These 20 tactics can be helpful in making the most of a difficult economic environment.