Brand versus solution

Companies don’t buy. People in companies do.
If your company has a problem to solve, would you be looking for:
- a solution whatever the brand
- a brand that could solve your solution ?
If you would be looking for a brand is this because “People never gotten fired for buying IBM (or CA or Oracle)”.

Solution or avoid risk taking

What would be or is your primary concern:
- Finding a suitable, feasible and affordable solution at the best price /quality ration
- Saving your career by proposing a solution from a well-known brand

The strange thing is that many new solutions from start-up companies end up getting acquired by big brands. Whereas previously the smart and ideal solution from the small company involved risk taking, once the big brand proposes it the main risk seems to disappear.

Benefits, problem solving and references

This brings us to the next question:
- How significant needs to be the benefit from a small company in order to be considered over the well-known brand ?
- How can the salesman convince you to buy: by understanding your problem ? by giving references ?

Do you buy brands or solutions ?

Ad writing is an art

The art of writing an advertising is gift as it is creating a message that addresses people.
Some people have “it” and others don’t.
Still following the guidelines below, you too will be writing ad copies that sell!

Ad guidelines

1. Know your audience for the ad
2. Start thinking like your audience
3. Investigate why would this type of customer buy your products or services?
4. State benefits not features
5. Limit to a single benefit in one ad: only one message can be communicated
6. Promise a credible benefit in order to believe you
7. The short headline needs to attract, to grab attention and to stay with them
8. The headline needs to state the benefit or suggest the benefit using a question
9. Embed an emotion in your message
10. Connect emotionally with them
11. Address the reader: “You” – Be one-on-one with your reader
12. State clearly what you sell – Your unique selling proposition
13. State clearly how you differentiate from your competitors
14. Stand out from the crowd of the other messages
15. Check upon your competitors – look for improvement
16. get inspired by your competitors but don’t copycat
17. Write using plain language in order to be understood by as many people as possible
18. Never use abbreviations as people have no clue
19. Limit the number words in a sentence and prefer to use short words
20. Keep the number of sentences short in the short paragraphs
21. Invite to take action. The Call To Action
22. Offer a discount, a promotion voucher (coupon) obtainable under fulfilling a simple condition
23. Avoid overused phrases as they have lost their power
24. Provide a testimonial containing a minimal identification, the reason and the benefit
25. Add a visual: the product, a person or anything that relates to your product or solution

Ad rework then publish

Read the ad up loudly to preferable someone you have a high esteem for. If it sounds silly then rework.
Rewrite the ad copy several times before publishing. Improve. Shorten. State more clearly.
Try out by running the ad a few times and learn from the responses and comments.
Then rework the ad copy and republish on a larger scale.

What are you waiting for? Go write your ad copy now.

When there is more demand than available then the seller can set the pricing.
When there is more on offer than demand then the customer can set the pricing if he really needs it.

The Boom Salesmen

Some salesmen start out in the business when there is more demand than available which gives them a bad attitude for their further business life as they are not used to negotiate on the service and pricing. This is typical for boom years where people get big commissions hardly without any effort or reason. They will become big spenders as the money is too easily earned.

Due to the fact it is that easy to sell the business will attract all kinds of people who are not real salesmen. Actually they never really sold. They just acknowledged about the product available, informed about the price and waited for the purchase order to come in.
Once time changes these salesmen have a hard time and find themselves in a job they actually can’t handle as potential customers just not buy after the minimal effort these salesmen are used to do. Soon they will be out of the business although the business keeps on going at a different pace than before.
The boom salesmen are out of business when the bust is coming.

Example: the real-estate broker who started in real-estate in 2004.

The bust salesmen

Other salesmen who started out during economic crises or competing in a market with cheaper foreign products, have learned to sell from the start as else they wouldn’t be in the business within weeks after starting. They know how to sell, get a deal closed against all odds and to survive in difficult times. They will appreciate every deal as each brings them a part of the necessary commission.

Example: the national office equipment salesman competing the Chinese products who started in 2004.

Segregating the fake from the real salesmen

Getting into a booming market or business will bring great opportunities and big commissions, but in most cases it won’t last a decade. The problem then poses is what to do afterwards as these people aren’t really into sales and are used to a high income.
The bust salesmen who started out in a difficult market know how to survive as they really can sell products and also them selves.

Are you a boom salesman or a bust salesman ?

Popstars

Madonna has sustained her music stardom and success for over 25 years by reinventing herself.
Most pop stars are one day hit wonders or have maximal 2 or 3 hits. Then their success, fame and income fade away. Taste, culture and demand have changed and so does the success of most pop stars. Taste, culture and demand are changing continuously.

Changes in society and business

As a successful salesman you believe your sales skills will last for ever as you can turn anything into gold while being successful.
However times, culture, attitudes and demand are changing too in business. Changes of people in companies. Changes in business. Changes in market. Changes of attitudes. Changes of purchase cycle. Changes of decision making an taking. Changes in perceived value. Changes in society.

What worked previously will not work anymore sooner or later.
Your introduction, your catch phrase, your lead generation, your sales pitch, your jokes, your sales cycle, your way of closing all can and will become dated – outdated. Beware this can happen fast over a short time frame: years instead of decades.

Avoid becoming obsolete

The functions and features of products or services change every year, but these are easy to keep up with. The tangible and intangible benefits are the ones that are more difficult to deal with as they are related to the changes in market, economy, culture and business in general. Your sales pitch might even become obsolete as people expect a service instead.

Just like a long lasting pop star, a salesman need to reinvent himself as attitudes and the way people investigate to buy products and solutions change as society changes. make sure you don’t become obsolete.

When was the last time you reinvented yourself ?

Types of Freebies and Giveaways

Whenever visiting a business trade show, you easily can have enough pencils for the next 6 months which you collect from the desks of the booths.
At the same time you end up with several freebies which are given after a conversation with a sales rep on the booth. These are in most cases toys and in a few exceptional cases really useful products.

There are four types of freebies:
- Office supplies: pens, calendars, clocks, mouse pads, mugs, etc.
- Apparel: T-shirts, baseball caps, golf shirts, socks, etc.
- Fun stuff: toys, games, gag gifts, electronics, etc.
- Perishables: cookies, mints, food and beverage, etc.

Missing Brand Exposure and Short List

If you visit enough business trade shows during your career, you will collect enough T-shirts and baseball caps for lasting into your retirement.

All these freebies are given for lead generation or in the hope the visitor will remember the brand name at the right moment when he makes up the short list for the next purchase.

However what typically happens is that most of the freebies are distributed to the family (kids and wife) or a stored in the closet for later use. As such the brand name doesn’t get the right exposure or disappears from the targeted buyer.

There are also people who will do whatever it takes to get a specific giveaway. Like engaging in a conversation with a sales rep although there is no interest or no project in his company. Not exactly the best spending of marketing money and time of the sales rep.

Even when giving away freebies it is likely the shortlist can be missed just like no freebies would be given.

Lead Qualification Freebies

The problem with freebies is that there is no feed back in this process. The booth staff hands out the freebie while collecting a business card allowing to contact the person after the trade show. The visitor doesn’t need to take any action as the information and freebie go one way.

Wouldn’t it be better if the visitors should take an action like a lead qualification before being given the freebie. This lead qualification should happen after the trade show which could be like completing an online survey.
Of course the cost per freebie would be significantly higher due to the shipping cost to the company. However the freebie would be delivered into the office which will be remarked by other employees and could generate additional interest from colleagues. This interest generated could be more than enough to pay for the shipping costs.

How effective are your freebies or giveaways for lead generation ?
Have you ever calculated the ROI of giveaways ?

Sales techniques

During the last century many selling techniques and methods have been developed like Feature-Advantage-Benefit Selling, Spin-Selling, Hard-Selling, Soft-Selling, Up-Selling, Consultative Selling, …
Nowadays people have had it with all these sales methods as they don’t want to be sold or pitched. Instead they need a solution for their problem which is the main thing they are interested in and will remember afterwards.

Listen instead of selling

Instead of selling or pitching you should be adding value for the customer. In the end the customer needs to sell its’ product at the best price or with the best quality or at the best price/quality ratio. These are the main drivers for a company to buy new products, services or solutions.

You have to understand problems of your customer, their issues and constraints given the business, competitors, market and economy. Hence you need to listen and ask open ended questions. Start from the idea that you don’t know but your potential customer knows all about his business, competitors and market which will help to formulate your questions.

Bring added value

Once you have understood the customers’ problems, issues and constraints then look for a solution – preferably a solution your company can provide.
Be aware the probable customer has researched the market and the solutions available. Time has gone that customers weren’t informed and that they could be lured into a sale, as they have become savvy and aware of the available solutions. This mainly thanks to the Internet and search engines. As a salesman you need to bring added value to the table else than what’s available on the Internet else they no longer need you.

Solution creation

This is not solution or consulting selling as in that case the salesman knows the solution upfront or wants to push a certain solution from the beginning.
Instead it is about, as partner together with your potential customer, seeking and trying to create a feasible and affordable solution. Serving your customer instead in order to bring him added value.

Forget about the sales pitch, listen to your customer and try serving him by delivering added value.

How do you currently sell ?

The War on Debt

Throughout history wars have been about power and resources. In all previous wars physical or even chemical weapons have been used.

Currently the weapon used for the current Third World War is debt. Countries (bonds, funds and loans), companies (loans and bonds) and people (mortgages and credit) rely upon loans and most are heavily indebted. This debt has strangled growth and prosperity for both people and companies as austerity seems to become the new rule.

The good thing about this Third World War is that no blood is being shed and no people are being killed physically. People might not get hurt or die, but the psychological and mental pressure due to debts and lack of growth can be life threatening too.

The War For Power

Still the goal of this Third World War is still obtaining more power.
The problem is that it is unclear:
- Who is the enemy: a country/countries or a financial institution(s) ?
- Who is likely to become the winner ? Will there be a winner ?
- How do you define winning ?

Reserve Currency

The first set of countries (Russia, China, Iraq, Iran, India,…) are starting to pay for goods or energy in gold. Maybe these countries are not exchanging physical gold, but might be using bank drafts on the gold value or exchange only the differences netting of the trading differences in value by exchanging gold.

One thing is clear that the Dollar as reserve currency will be over one day.
- When and how this era will end is not clear.
- What will be the next reserve currency is not defined: another currency or gold ?

Business Survival

The first question is what will this imply for your business ?
During the War on Debt business will continue like before but probably at a lower growth magnitude with less expansion or even a shrinking business as a forecast.

Once the reserve currency is beginning to falter then:
- If you trade locally in one country or one currency region, there will be changed but not dramatic as you can keep invoicing in the current currency.

- If you trade between currency regions then times and business will become complicated as exchange rates will fluctuate beyond expectations making your imports and exports unpredictable.

Meanwhile the first problem is solving the debt you or your company has in order to survive.

What do you expect from the War On Debt ?

More than often the product positioning remains the same for a product throughout its’ lifetime.

Solution changes

This is questionable as throughout the life cycle of a solution more functionality and features are added upon demand of the customers or the salesmen. Due to all these add-ons and changes it is likely the positioning of the solution should be changed. From a straight forward solution due to the additional development the solution has expanded and could target a whole new market segment or even solve a different kind of problem.

Many small can make a big difference

The problem is that these changes are in many case apparently small apparently non-significant modifications or extensions of the solution. However all these small changes can make up quite a different total solution which might no longer fit the original target market or even address a whole new market as the solution has become different or more complex to use.

Market is moving target

On the other hand the market the company used to sell into, will change over time with other needs or different requirements. The market could also diminish in size, becoming so small the market is no longer economically viable. The market is a moving target.
Your original solution that addressed only a small market could become a widely used solution as the market changed in favor of your solution at the right price. Then it is up to management to decide if the sales price can be lowered in order to obtain many more customers.

Market positioning assessment

This is why market positioning of your solutions needs to be questioned and investigated. After each significant change a new assessment should be done in order to see what is the market and type of customers that would require such a solution. A result is a possible different product positioning.
Why else would a company invest in new function and features ?
How would a company ever get a return on investment if the market positioning would remain the same?

Investigating and making an assessment about the market and potential customer type is a must.

When did you make the last assessment of the market positioning of your solution?

Recurring Revenue

The best business models are those that allow for recurrent revenue. This can be subscriptions, consumables, utilities or insurances.
The benefit for the business owner is the predictable, stable and can be counted on in the future with a high degree of certainty. The same applies for the salesman as he will get a steady or fixed commission income from these recurring revenues.
Moreover with each customer won, the business revenue increases for the long term.

Recurrent Billing

Although the automatic recurrent billing is the best for driving your revenue as the customer gets billed anyhow. And he will need to take action in order not to get billed anymore, this method is not preferred by the customers. Customers hate the idea to sign-up for a service or a deal which they need to cancel in advance – within the time defined in the contract – in order not to get billed again. It is just too much hassle and not customer friendly as they feel tied up.

Recurrent Billing Issues

There are other issues with recurrent billing: for example if the price is related or a function of consumption or use which can easily change over time: like consumption level, time used, number of visitors, number of calls.
Any price change will that are billed without notice, will generate questions by telephone, emails and letters which increase the cost of operations significantly as you are dealing with unhappy or even agitated customers. Not exactly the best way to keep your customers.

Price Buckets

In order to cope with small fluctuations in the use of the service, buckets are the best means for keeping the price steady as customers don’t like price changes. Each bucket having an lower and upper limit for the use of the service, consumables, utilities.
Still if the consumption or use of capacity increases beyond the limits of the current bucket, you need to change the price which is a hassle using fully automated recurrent billing systems. Make sure you don’t bill twice or bill the wrong amount.
Moreover you need to inform the customer before invoicing and billing him more as you need to respect your customer. So when will you change the automatic billing amount ? How much time after informing him ? How will he respond to the price change ? What to do if he doesn’t accept it as his contract is not cancelled ?

Recurrent Revenue vs Recurrent Billing

Recurrent revenue is the best business model ever.
Recurrent billing is not really liked by the customers:
- They don’t like to be tied up with your billing
- Consumption fluctuation requires to adjusting prices requiring to inform the customer
Hence in our view it is better to inform the customer before the end of the subscription about the change in pricing (higher or lower) and at the same time inviting him to make a payment for the next period or quantity.
In this way the customer can easily end the contract by simply not paying and he feels free instead of being tied to you as a provider. of course you should ask why he is no longer interested in your services.

LEADS Explorer will inform customers at the end of the subscription about the price for next subscription and at the same time invite them to make a payment. The customer is free to choose to continue or not.

The gap between marketing and sales

Since the early beginnings of the creation of the marketing department, marketing guru’s have argued that sales and marketing should cooperate in order to increase sales and revenue. The gap between both exists and continuous to exist.
In many companies there is even a larger gap between the sales pitches, activities, presentations and meetings of the salesmen and the content on the website by the web marketers.

Website content

In most cases the content on the website is created by people who don’t meet with customers. They actually know little about customers besides general information and statistics making customers like a number consisting of numbers/stats. From their offices it is hard to understand or image what the prospect or customer really requires and wants.
Do they know why the salesmen really sell ? What really sells the product or service ? Do they know the competitors ?

Salesmen know their customers

On the other hand salesmen and sales reps meet with prospects and customers and know what ideas, worries, problems, perceptions and concepts that live amongst their prospects and customers.
The feed back from meeting with customers and prospects to the marketing people is minimal or not existent. As such marketing is creating content which is far or not related to what the prospects or customers concerns.

Product managers

In some cases the product managers are asked to write the website content for their products which is a step in the right direction as product manager do meet customers, but in most cases only important or innovative customers as they do not meet the average customer.
Product managers are halfway through as they know some customers, their products and the competitors.

Content by salesman

In fact it should be the salesman who should write or define the content on the website as they are the closest to the prospect and customers. he knows how they react upon his sales pitches. However a salesman has no intention to waste his time on writing content for the website while he is being paid on a commission on his sales.

The increase of purchase risk

Due to the gap between marketing and sales, it will be hard for salesmen to tell or present the same story, concept, benefits, advantages, industry view and positioning as on the website. If there is any difference then it will induce a hazard or danger for the purchase decision.
Any increase of risk, will decrease the chances of a sale.
Therefor the content on the website should match the content in the meetings.

Sales pitch should match the website

Before the Internet and the almighty presence of the company website, salesmen had only to deal with advertising, press releases or editorials which concerned a small part of the total of benefits, advantages, concepts, views and perceptions . Whereas now the website has all the content only a click away.

Synergy sales en marketing

A synergy between sales and marketing is needed. Even more than before as the website content is visited and inquired before and after every meeting, telephone call and even emails from the salesman. Any difference will increase the purchase risk.
The website content and the salesmen need to align up in order to form one front and have one view exposing the same messages and the same vision.

Do you have a sales pitch matching the website ?