Here’s part 2 of the Lessons Learnt series we kicked off recently. In this video are my 3 tips on Sales and Networking, which I’ve learned over 37 years in the industry.
First one is that “Everybody needs to work on their Sales Skills.” The vast majority of business owners and salespeople have lousy sales skills. They assume they’re good at sales but often have little or no sales training, or they actually don’t apply the sales training they have had, or they have poor sales processes, and as a result get poor results.
We assume we’re good but we never measure and focus on improvement, and as a result, we accept mediocrity.
In my business, over the last 30 odd years, I’ve been able to lift my closing rate from 20% to 90% of qualified leads by doing some training, putting a good sales process in place and having a good conversation with people and understanding their needs. So what’s the impact on your business if you can do that same thing?
The second sales tip is “Don’t write proposals.” Have the conversation, ask for the business, talk about the money so that you actually get the chance to overcome people’s objections.
And the last point is to “Pick a networking group and infiltrate it.” I think people make a lot of mistakes of going to lots of different networking groups. My advice is, pick a group that fits with you and your business. You’re going to have to kiss a few frogs to find a group that you get a good fit with and that you feel comfortable in, and that has a good collection of target market clients for you.
Once you get a group that you like and you fit well in then my advice is inflitrate it. Ask to take on a position on a working committee. A couple of groups I’ve joined simply because I asked if they need any help and they said, “we’d love to have someone on the board, would you like to join us?” What it makes you then is part of the inner circle. It also helps you have deeper relationships with people that can help you grow your business.
So in summary, my top 3 sales and networking tips are to improve your sales skills, don’t write proposals but instead think about how you can have smart discussions around the business and money, and then pick a networking group and infiltrate.
For a range of free resources to help you grow your business, visit https://shifft.com.au/.
In a recent blog we discussed how we can make sure that marketing is effective for our business. This blog reiterates that while you need ensure the effectiveness of your Marketing, it is also crucial to ensure that it is effective all-year round.
Businesses will often gear up for events such as Christmas, Mother’s day, Father’s day, Stocktake Sales and the like, and then accept that there are quieter periods in the rest of the year. But really, this should not be the case. What can we do to market all-year round?
Let’s look to multinational companies to explore this issue. It gets hard to compete when you are reacting all the time to promotions of big players and you feel you have to follow. Unfortunately, most businesses react by putting on sales which may actually reduce your profits due to the size of the discounts offered to get a response from the price conscious customers.
But we have to realize that the thing that makes multinationals successful in marketing is that they know how to make their customers think that everything is for sale all the time. How do they do this?
Here are 3 steps to follow.
1. Determine the purpose for the promotion
Knowing the purpose sets the stage for the rest of the promotional plan because it lets everyone involved understand what it is for and why the outcome should be successful. Also, tell all your staff about the promotion and ask for their ideas.
2. Set specific targets
Setting specific targets allows you to focus your marketing dollars and your message on a specific area that is more likely to act on your promotion i.e. your loyal customers. Plan your advertising to match the customer – this is a much efficient way to increase sales, target margins and sell specific products or services.
Make sure you’re running and interesting promotion and not just discount sales. Why not try to package your products to see how your customers react to this kind of offer?
3. Evaluate the success of your promotion
If it clicks, identify how you can measure if it was a successful promotion. Identify a specific increase in sales needed to compensate for any decrease in the price. And in the end, make sure you evaluate the overall success of the promotion.
Now, here are 8 questions that can determine whether your marketing activities are worth your time and money. In our experience, if your score is below 48 then you are not getting value for money for your advertising, and your result will be mixed.
Rate yourself on these 8 questions by scoring 0 to 10, with 0 – lowest; 5 – average, with some ideas in writing; 10 – strongly planned, well organized:
Use the result as a guide for the things you need to improve on to make sure you’re running successful and effective marketing activities that can stand any season or any event.
Remember that successful marketing is the backbone of a business and will determine your financial future.
Change is a fundamental and common element to our business environment and this will continue to impact on the whole Australian economy for the next few years. As we have discussed previously, both the volume and rate of change are growing exponentially. Very few businesses proactively plan to overcome or respond to the opportunities that change creates.
A business’s ability to manage and implement change effectively is critically important, now more so than ever. To remain competitive and sustain vibrant businesses, quick and effective action is required to maintain long term financial viability. Major changes include:
the impact of globalisation
the adoption of innovation and technology
the change in the demographics of our target markets
the change in labor dynamics
the personalised marketing demands of customers
the ecological issues and changing government regulations
These changes have had wide reaching implications on how businesses must develop to remain competitive and effective in the future.
Why is change so hard?
Have you ever wondered why some companies seem to thrive despite economic uncertainty, while many of their competitors seem to struggle for survival? Is it that one company’s products are so much superior to that of another? Possibly, but not likely.
The fundamental problem in many companies is an inability to adapt to current changes in competitive forces and buying behavior. As humans we have a natural instinct to resist change.
Change can be uncertain and uncertainty breeds insecurity. Therefore, the instinct to resist change is the result of our basic need for security. We will change only when our dissatisfaction (or discomfort) with the status quo becomes so great that we can no longer tolerate the results (and missed opportunities) that come from practicing our old and established ways. Then and only then can we implement and sustain a process of change.
How do we embrace change?
What drives humans to change is also what drives companies to change. Companies that have embraced their dissatisfaction and developed a process of continuous improvement (i.e., change) that has resulted in streamlined business processes, greater competitive advantage and improved decision-making are the growing and successful companies we observe today.
Take their example and take note that the future is not a random event. Act now to influence your own future because if you don’t then someone else will. Planning is all about creating your future. Your vision is your future. If you believe it, you can see it and if you can see it, you can influence it.
To assist your business in adapting to change, we have developed a Change Success Diagnostic based on Chris Mason’s PhD research. Chris’ model is a simple and elegant approach to managing change that highlights 10 key elements in successful change projects. Use it to lift your potential success rate above the standard 30%.
Discover your potential for change success in under 5 minutes with our free Change Success Diagnostic Tool – http://www.sbdbusiness.com.au/change-success-diagnostic/
This is a conversation I often have with clients. Many businesses take a really narrow view – ‘it’s what we put on our web, print on our brochures or broadcast via our ads’. Effectively what they push out in the hope it will hit their target customer and get them to respond.
Well, yes, that is a part of marketing but it’s not the whole or, I would argue, what truly matters.
If the objective is to positively impact how customers (both current and prospective) think and feel about you then viewing marketing in a traditional sense isn’t going to cut it.
An exercise I get clients to undertake is to map out their touch points or, put another way, the customer journey. Where, when and how do customers interact – from the first time they hear about you, to the physical or online experience, right through to when they pay and beyond.
What is the experience and what impression are they left with? Does it reinforce the value proposition or detract? Is it consistent (at a minimum) or does it truly excite and tell a story about your offer?
It is the sum of these experiences that impacts your brand and its potential for growth.
And, of course, everyone in the organisation touches customers in this way. At each point of the customer journey everyone has the potential to impact on the customer experience and thus the brand perception.
This means, therefore, that marketing delivery goes well beyond the marketing department.
So marketing is, in effect, what we all do each and every day… much more than a brochure or a website!
James works with a wide range of organisations from large to small, start up to established. He facilitates planning and strategy workshops, undertakes reviews, develops insights and ideas, and mentors and coaches leaders. As Chair of the Growth Leaders Forum he helps business leaders unlock their potential and chart a path to growth – http://www.vantagemarketing.com.au/
The flipside of “success” is “failure” and it’s the latter that every business owner and manager strive hard to avoid. By definition, the term “business failure” refers to the cessation of a company’s operations following its inability to generate enough revenue to cover expenses without adequate reserves.
In the recent times, there are many examples of strong businesses that have failed to adjust to the changing markets and economic times or to take advantage of opportunities – and this has ultimately led to their downfall.
Based on my 26 years experience working closely with business owners, here are my 9 key tips to avoiding business failure:
1. always ensure that you target your marketing.
Too many businesses have an undifferentiated product/service offering and fail to understand who their target customer is and what they require. Don’t be undifferentiated, make sure you’re speaking the right language and using the right channels and/or media in targeting your main group of consumers. Focus on delivering exceptional value. ACTION:Develop a structured Marketing Plan for your business and revise it regularly.
2. always plan ahead.
Talk about what you want to do next and where you’d want your business to go by preparing strategies that will help you focus on your business goals and objectives and to make sure that appropriate and sufficient resources are in place. Be rigorous in your planning and hold yourself and your Team accountable. ACTION:Develop a 5-year Strategic Plan supported by Annual Plans. Have 90 Days Actions. Cascade your plans so that everyone in your business is part of a plan.
3. have great business models.
It is a fact that most businesses fail because of poor business models – a business model describes you will engage your target market to profitably generate revenue. To avoid this, make sure that you have great and well-thought pricing models and economic cost models that will help your business focus more on creating, delivering and capturing value needed by your customers. ACTION:Understand your Business Model – there are some great tools to do this.
4. have effective processes.
All businesses are driven by processes. However, few businesses have well documented processes. Many businesses fail to have any continuous improvement processes and have a well entrenched view that they are already efficient. The reality is far from this and many businesses can improve productivity by up to 30%. The challenge is to avoid waste in: time, resources, opportunities, materials, etc. caused by inefficiency – this results in higher than necessary costs and lower margins. ACTION:Apply simple Process Improvement Tools, like 7 Wastes to your business on a regular basis. Never stop searching for improvement.
5. engage your team.
As a leader, you should be a good example to your team. Teach them how to own issues, take responsibility, be accountable and model proper engagement, not only with their customers and clients, but also with each other. An effective team will overcome most business obstacles and enable your business to seize opportunity, when required. ACTION:Engage your Team by improving communication and feedback.
6. have great sales processes.
Sales is the engine that drives your business. Most businesses that fail do not have effective sales processes in place. So with that said, make sure you have great processes that your salespeople can follow. ACTION:Clearly define your Sales Pipeline and develop a Sales Model that delivers.
7. ensure you have adequate cash buffers.
“Cash is fact – Profit is opinion!” This great quote from Andrew Russo (Master Accountant) gets straight to the heart of the matter. Ensure you build adequate cash reserves in your business to ride out changing markets and economic conditions. Cash reserves also allow you fantastic flexibility when looking at opportunities. ACTION:Develop a plan for how you can build cash reserves in your business. Engage your Coach or Accountant in this process.
8. avoide uncontrolled growth.
Uncontrolled growth is often a pre-cursor to business failure. When business growth is “out of control” often cash flow is uncontrolled. Rising sales are barely enough to cover rising costs and cash is at a premium. Cash flow, staff, customers and production are all stretched often to breaking point. Avoid this by “taking your foot off the accelerator” – be more discerning in taking on clients – engage strategies that will slow demand (like lift your prices) – say “No” to opportunities that aren’t in your sweetspot – and introduce tighter financial controls and KPI’s. ACTION:Monitor key drivers in your business and ensure that you have the capability to meet demand. Develop strategies to maintain control.
9. take early action.
Too many businesses fail to “take effective action” until it is too late. Act early and avoid the Receivers! Set up effective monitoring systems. Plan for different scenarios (revenue, cost. Market conditions, competition, etc) and define “trigger points” – bank balance, sales$, profit %, market KPIs, etc – that will cause you to evaluate your options well in advance. These options should include plans for how you will address the challenge – reduce staff numbers, cut costs, close non-performing divisions/products, etc. Make these decisions now rather than trying to make them when under pressure. aCTION:Develop plans to address particular scenarios with effective trigger points.
Focus on ensuring that you have all 9 elements covered and you will do more than stave off failure you will be on the road to success.
What is the element that has the highest priority for you? Pick one and start working on it now.
Wonder when you’d get the best results with your marketing strategies? Wonder no more – with a new insight by Simon Sinek called The Golden Circle, you are sure to inspire your consumers and persuade them to make the action you’ve been expecting from them.
But before we expand on the idea of The Golden Circle, here’s a brief background on Simon Sinek. One of the TED Talk speakers, Simon is also known as the author of the book “Start With Why” which was released in 2009. With his works, he has been convincing and motivating people to do what inspires them.
With that said, there is no doubt that this new insight from him will help you get the results you have been dreaming of from your marketing strategies.
The Golden Circle Concept
As its name implies, the concept known as the Golden Circle is made up of 3 circles. The innermost circle is labeled as the WHY, the inner circle as the HOW and the outer circle as the WHAT. These 3 circles represent the 3 things that every company or organisation have in order to exist.
The WHAT circle refers to a company’s objective – what they want to achieve, the HOW circle represents a company’s resources as well as processes that are necessary to achieve their objective, while the WHY circle refers to a company’s purpose – why they exist. Most people perceive profit as a company’s purpose and this is incorrect – it is a result not a purpose.
To further understand how the Golden Circle works, let’s use the same example Simon used in the TED video.
Apple has been around for many years but while it is just like any other computer company, they stand out. What makes them stand out? And what makes people trust them so much that they are willing to buy computers, HDTVs and even MP3 players from them?
The answer can be seen here – Apple, just like some well-known achievers in this world – Martin Luther King and the Wright Brothers, operate in contrast to how the majority of the world’s population operate.
Most people, leaders and companies usually give more importance to the WHAT aspect of their business. They tend to emphasize on their products, their objectives without even stating WHY they sell what they sell, build what they build or do what they do.
If Apple were to operate just like everybody else, a marketing message from them would sound like this:
We make great computers. They’re beautifully-designed, simple to use and user-friendly. Want to buy one?
This kind of marketing pitch is common but uninspiring. And most of the time with this kind of message, companies don’t receive the right response from their customers because they fail to inspire action.
Now, since Apple operates in contrast to the usual uninspiring way, their marketing message sounds like this:
Everything we do, we believe in challenging the status quo, we believe in thinking differently. The way we challenge the status quo is by making our products beautifully-designed, simple to use and user friendly. We just happen to make great computers, want to buy one?
By reversing the order of information and giving emphasis to WHY they do what they do, Apple inspires their customers and everyone else to make the right action based on their message.
This example proves that if you’re looking for amazing results from your marketing strategies, you have to let people understand WHY you do what you do because people who believe your cause will make it their own and do something about it.
So if you’re looking for the best way to inspire action from your customers and get best results, follow The Golden Circle concept.
In Simon’s words
“the goal is not to do business with anybody who needs what you have. But to do business with people who believe what you believe. Because when you talk about what you believe, you will attract those that believe in what you believe and therefore, inspire action.”
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