I saw something in an article this morning that had me nodding my head in agreement and I thought it was something that all of us should think about. It was a piece about how the growth of marketing technology companies has stalled and it gave as a reason this:
There is a long list of sales and marketing tech vendors that have had their growth stalled for a number of reasons: failure to find a use case with broad market appeal, product based on a feature, or quite simply couldn’t execute.While these companies might have received more funding two or three years ago, in today’s climate VCs are not replenishing their offers. Today, there are big rounds for those with momentum and a big story, or no funding for those that don’t.
In other words, many of these companies have been able to attract a client base but the results those clients were expecting haven’t been there. That’s a critical thought when you’re making promises, isn’t it? I can’t begin to count the number of tech companies I’ve spoken with over the years that made huge promises but failed to deliver.
I wrote about this several years ago. Way back in 2011, I wrote:
I can’t tell you how many presentations I’ve sat through for companies that were going to grow my revenues 10x but wouldn’t take 90% of the first year’s incremental revenues as a fee. Big red flag. Then there were the companies who promised great service but wouldn’t sign service level agreements that legally obligated them to provide that great service.
So at the risk of repeating myself, I’m going to repeat myself (this time from 2016):
Nothing like eating your own dog food, right? But that’s a critical part of serving our customers well and each of us needs to do that on a regular basis. When was the last time you tried to go through checkout on your own online store? How was the experience? How about trying to return what you purchased or put in a call to your customer service department? My guess is that none of your top managers have done any of those things in a while.
You can only grow so big if the results aren’t there. If you haven’t explored those results with your customers along with the time, effort, and expense it took them to achieve those results, you’re not doing your job. More importantly, you’re setting your growth curve on a downward course because nothing in business happens in a vacuum these days. People talk.
One thing I’ve learned in consulting on franchises is the importance of what we call validating the franchise. It’s when a prospective owner speaks with current owners to find out if the representations made by the franchisor are accurate and complete. It’s kind of like checking references when you hire except the FTC requires the franchisors to disclose the names and phone numbers of all their current franchisees so you can’t control with whom a candidate speaks. That means the results have to be there, pretty much across the board.
When was the last time you spoke to your customers about their results from using your product or service? If you have to think about it, it has probably been too long. Food for thought?
It’s Foodie Friday and this week it’s tool time. As I mentioned in some previous posts, I’m in the process of moving, which means that a lot of stuff is packed up and not readily available for cooking. You never think that you’ll use some kitchen-related item (I won’t be ricing potatoes any time soon, will I? Pack the ricer!) right up until you need it. Then comes the internal debate assessing whether to unpack it (assuming you can find it), try to make do with some similar tool, or cook something else altogether.
One of my absolute mantras is that one needs to have the right tool for a job. You might think that throwing a smoothie into a food processor will work (because you packed the blender), but you’re wrong. Not only does it not yield a respectable smoothie but it makes a horrible mess. Then there is trying to make a roux with a fork instead of a whisk because, well you know where the whisk is, and it’s not in the kitchen.
Another non-food example. I just spent a day and a half trying to wire cat5 plugs around the new house. A buddy of mine had most of the tools to do this save for a punch tool to seat the wires properly. We tried to punch them down using everything from a tiny screwdriver to a pen. None of the connections were solid. An hour back and forth to buy the right tool and suddenly we were flying through the job. The right tool makes all the difference. Was $50 expensive to get it? Not in light of what it would have cost to hire someone to do the job.
You should remember that when you’re running your business. The right tools – and I include the right people in that category – makes all the difference. Spend the extra buck on software that works for you and don’t try to shoehorn your business into some freeware that really isn’t right. Sure, there are a lot of very good free tools out there but most of them begin to charge you as you reach the enterprise level. Make sure they’re worth paying for before you get too embedded in their platform.
Finally, spend more on good people that are right for your company and right for the job. Having a fantastic free design tool is great but you need someone that knows how to use it or the results will look amateurish.
Having the right tool makes an excellent finished product much easier to obtain. Using a shoe to drive a nail rarely works, don’t you think?
So here we are again at the start of a new year. If you haven’t already started to implement your resolutions for the year, let me humbly offer a suggestion that should be a part of them. Make this the year of “you.” To be clear, I’m not suggesting that it be a year of self-centered egomania. In fact, I’m suggesting quite the opposite, and I’m doing so because it will improve your business. As a bonus, it may also improve your non-work life.
How does one go about making it the year of “you?” Start by this: quit saying “I.” Stop thinking about your business’ bottom line and focus on solving your customers’ problems. Don’t put out messages about what people can buy from you. That’s selfish. Focus on how what you’re selling helps. Ask “how can I help you” and not “how can you help my bottom line.”
Let me show you how the “you” focus works because it is something I try to practice here in this space. My focus is on what I hope is important to you. I try to have an outward focus. If all I did was blabber on about what’s important to me, we’d be indulging in a discussion of the new rules of golf or my incompetence at beating certain video games. That doesn’t help you at all and I suspect after 10 years of that my readership would be down to just me. By writing this, which takes time and effort, I’m hoping to grow both the audience and my credibility and I don’t ask for anything in return. OK, once in a while I will remind you that I consult and if you want to look at franchise opportunities, I want to help you do that, but that’s about as far as it goes.
It goes beyond a customer focus. Suppose you’re going after a new job or a new client. Your best strategy is to focus on the needs of your potential employer and client instead of plugging your own skills. Nobody cares about your craft if you fail to make it relevant to them. You have to change your pitch to suit your audience. I can’t tell you how many pitch meetings I’ve sat through that were generic and which failed to address MY problem as a potential customer or partner. Generally, no sale.
Don’t talk about what you do. Ask yourself if you were your potential client or listener how your service is relevant to them. Don’t be the one at the party who talks only about themselves. Don’t ask “how do YOU like MY outfit?” Ask “how can I help YOU?” If we all do that this year, it will be quite a good year indeed don’t you think?
I started 2019 by buying a new home. When I say new, I mean brand spanking new as in “just built.” As I’m preparing to move in, I did what most folks would do first these days and called my local Cable TV/ISP to come set up the house. The builder did a good job of preparing the house for both cable TV and for wired internet and phone. There is a large junction box in a closet with both coax and Cat 6 wire running to most rooms. The living room and master bedroom both have conduit running into the crawl space for wires to be run easily. Frankly, I thought the hardest part of getting everything set up would be joining the coax and network wires that were hanging out of the side of the house to the main feeder lines. I was so wrong, and the reason why I was is quite instructional for any of us in business.
Hooking the house to the main lines was easy. Then, the tech set up the cable modem and router for my high speed (400MB+) wifi network. So far, so good, The problem came when I asked about connecting the wires that were in the closet to a switch or the router. None of them have caps – the little plugs – on them. “I don’t do that,” he said. But how can I connect the rooms to the network? What about putting the coax wires into a splitter for cable in the various rooms? At least that would help me identify which wires ran to which rooms. No help there either, even though he is the cable installer.
The final bit of laziness came when he informed me that he couldn’t run any cable through the conduits. He said he couldn’t find the conduit opening in the crawl space even though he pushed a long rod down the conduit and then went to look for it in the crawl space. I went down the next morning and found the openings in about 2 minutes. Yes, it was late (4p) on a Friday afternoon and I’m sure he wanted to get out of there, but still.
So here are some things we can all take away. First, the fact that the tech had no idea how to run wired internet tells me that the cable TV companies still think they’re in the cable TV business. Any look at the numbers will show you that people care far more about broadband and their ability to stream than they do traditional cable TV. If you are an Internet Service Provider, that you need to provide the damn service, and that includes wiring houses. I want my smart TV’s wired in, along with my game console. It’s a much better experience than via wifi, even high-speed wifi.
Second, the techs are customer service people along with being technicians. This guy was very nice but did nothing to solve my problem. To make matters worse he never left any paperwork so I have no way to know what exactly he did do. I can’t even tell you what my VOIP phone number is. Any company representative that deals with customers in any way should be trained to do so properly. They must have a focus on solving problems, not on creating them. And they certainly should never lie.
My ISP doesn’t know what business it’s in. They still think they are proving cable TV. They also still don’t understand how the power in all businesses has shifted to the customer. Let’s all agree to start 2019 by rethinking what businesses we’re really in and how we provide it to our customers, shall we?
Filed under Consulting, Huh?