Category Archives: Consulting

March 23, 2016 · 11:13 am

A Thought About Budgeting

Where are you in your annual planning cycle?  The end of March always seemed to be a time when I would have to begin looking at marketing budgets for the upcoming fiscal, so I had a thought you might want to keep in the back of your mind if you’re entering the process now.  It will be worth thinking about if you plan later on as well.

This is a "thought bubble". It is an...

(Photo credit: Wikipedia)

Many of us spend a lot of time looking at the plethora of marketing channels available to us.  Mass media such as TV, more personalized media such as social, and very specific, time-based media such as search tend to dominate our thinking.  That’s the pattern I see with many of my clients at least, and it might be where you are as well.  It’s probably misguided thinking, however.  The reality is that how our customers want us to communicate with them is via email:

MarketingSherpa commissioned an online survey that was fielded August 20-24, 2015 with a nationally representative sample of U.S. consumers. We asked consumers, “In which of the following ways, if any, would you prefer to receive regular updates and promotions from companies that you are interested in doing business with? Please select all that apply.”

After summing up the numbers of consumers who prefer email at a frequency chosen by themselves and email at a frequency set by brand, email emerges as the most preferred way to receive updates and promotions (60%). Notably, subscribing to receive emails at a frequency consumers choose is twice as popular (49%) as subscribing to receive email at a company’s pre-determined frequency (24%).  Email is perhaps unexpectedly followed by snail mail (49%), leaving visiting the company’s website in third place (38%).

In other words, we need to stop thinking in terms of what’s new or what’s sexy and focus on our customers’ wishes.  While you’re spending your time trying to get them to follow you on social media (where the algorithms of the services will probably hide your message anyway), your customers are reading something meaningful.  You should be spending your time – and resources – on re-engaging your email database, building up open and response rates, not blasting out messages that fall on deaf ears.

Something to think about?

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March 22, 2016 · 9:02 am

Frictionless

One of the most basic principles of selling is that when a customer wants to give you money, take it. Take it as quickly and as seamlessly as possible. Any delay or friction is a chance for the customer to reconsider and for you to lose the sale. I saw this in action yesterday and it’s instructive for all of us.

English: Golf balls.

(Photo credit: Wikipedia)

It’s almost golf season. Rotten golfer and cheap person that I am, I generally buy “recycled” golf balls for my non-tournament play. These are balls that some intrepid soul fished out of a water hazard (nasty work as this article shows) and which are cleaned up and sold by any number of websites. I usually purchase 8 or 10 dozen before the season begins and since I had a couple of discount coupons in my mailbox, I logged on to the site from which I’ve made several purchases before.  I put my purchases in my shopping cart and went to log in so I could check out quickly.  My login credentials are stored in a password manager, which filled in the user name and password automatically.  Unlike the other few times I’ve used the site, a box popped up letting me know that my credentials would be shared with Hubspot, a well-known CRM system.  That’s when the fun began.

I suspect it had to do with the use of a third-party cookie, but I couldn’t log in.  I was told my information was incorrect (it wasn’t) and they couldn’t log me in.  Sure, I could have called their phone number (listed right on the cart – props for that) but who knows how long that would take.  I also could have checked out as a guest, but then I needed to find my credit card and type in all the billing and shipping information that was already on file.  In short, they’d created friction in the sales process, and at the very worst moment to boot.  What was worse is that a chat window popped up (more CRM) asking me if I was finding everything I needed?  I responded immediately, explained the situation and was greeted by a reply that stated “Matt” (the name that popped up) would be with me shortly.  At that point “shortly” was too long.

Since I had a coupon for another site that offered the same balls at a lower price and a 15% discount along with free shipping, I ordered from the competition. Sure, I had to type in the information but at least now I was getting a better price.  While I was willing to pay a bit more to do business with a site I knew in a seamless manner, when it became a hassle, thereby lowering the value, price became an issue.  Interestingly, about an hour later I received an email (automated) asking me if I had forgotten something since there were items in my shopping cart.  I responded to the customer service address with a shorter version of what you’re reading.  Maybe I should have charged them for the consulting?

These guys did a lot of things right.  Their site is  helpful and easy to navigate.  The pricing and costs of shipping are clear.  They clearly are using CRM and lots of it.  But they failed at the most important time. Selling is hard but the process isn’t.  Explain how you’re solving the customer’s problem.  Provide them with great value for the cost.  When they agree, take their money, say thank you, and leave them alone. Prevent friction, provide support.  You with me?

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March 18, 2016 · 11:51 am

Focusing On The Protein

It’s Foodie Friday, and since last night was the finale of Top Chef, I thought we might learn a little something about both food and business from the program. Yes, I know I focused on a learning from that show a few weeks back, but not only won’t it be on for another nine months or so (sparing you my fanboy posts), but the thing on which I want to focus was done by both cheftestants, just as the business point occurs in many enterprises.

As part of the final challenge, each chef cooked a meat protein – one cooked rack of lamb; the other cooked duck breast. The responses from the judges in both cases were the same. The flavors were fantastic, the dishes were innovative and complete but the proteins were undercooked. The lamb was nearly raw in the center on most plates, and the duck breast was nicely cooked on the skin side but the other side was underdone as well. It seemed as if the chefs were so focused on the complete dish – the sauces and accompaniments – that they forgot to pay attention to the essential part of the operation – the protein that is the focus of the dish.

We see the same thing in business all the time. A side project detracts from the main business. Resources which are already spread too thin can’t focus on serving customers the basic product because they’re deployed on something that isn’t driving profits at the expense of something that is. We can’t forget to make sure the focus of our business is perfectly served because no matter how nicely everything that surrounds that focal point is offered, those things can’t compensate for a disaster in the main business.

You might think it can’t happen in your business: you’re too experienced and very good at what you do.  So were these chefs – one doesn’t get to the Top Chef finale unless you’re quite good (and these two actually topped two other cooks who are current James Beard Award nominees). Many restaurant critics will tell you that on their initial visit they like to order something very simple – roast chicken, for example – to make sure the kitchen is paying attention to the basics.  Are you?

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