6 Causes for Marketing Misses

Marketing missed target marketing

Are you finding that hitting your target market is increasingly more difficult? Especially in the age where so many aspects of marketing are changing and evolving such as content management strategies, SEO and social media.

Marketing is playing an increasingly critical role in organizations these days for a variety of reasons, one of which, as Sirius Decisions describes is that “67% of the buyer’s journey is now done digitally.”

This puts even more pressure for marketers to be well-branded and ever-present in the places where prospects are looking, then the top choice when they click thru.

Now sales is even being encouraged, appropriately so, to engage in more top of funnel (ToFu) activities in the form of micro-marketing due to this very same phenomena with the buyer’s digital journey.

As if navigating these new times wasn’t difficult enough, CMOs must be also able to demonstrate tangible, positive returns on their marketing efforts. That alone is enough to send some CMOs over the edge.

While these challenges are certainly real and legitimate, there are some more basic areas of marketing that are falling short, perhaps due to the reasons aforementioned. It’s understandable for marketers with tight budgets to cut some corners while navigating new areas like Social Media…but it is certainly not acceptable. The consequences can be quite substantial.

Therefore, let’s look at six filters that marketing tends to overlook or ignore in its marketing efforts when pressures on their time and budget mount:

6 Overlooked Causes of Marketing Misses

Regardless of your marketing vehicle, whether direct mail, email, web or other, grab a recent campaign piece and evaluate according to the following six filters or litmus tests:

  1. Clarity Test. Your marketing piece should be clearly targeted at a specific segment or customer as time pressed marketers can fall into the trap of generalizing who the marketing is aimed at versus narrowing the focus (e.g., IT versus System Administrators). Test: Can any person readily identify the intended audience of your marketing?
  2. Resonance Test. Your marketing piece will resonate more with customers when it identifies their pain points and quantifies the risk of not solving the problem or pain points. Test: Will the customer know after reading your marketing piece, the risk or cost of their inaction?
  3. Differentiation Test. The marketing piece should tap into the customer’s felt pain points by focusing on benefits or outcomes, not product features, and lead uniquely to your own solution. Test: If your logo were removed from the marketing, would the solution still point distinctly to your organization?
  4. Insight Test. Engaging marketing should grab the reader’s attention with an insight about their industry, category or business. Test: Does the marketing piece provide an insight and if so, is the insight one which could only be obtained by your experience working with many other customers like the target of your marketing?
  5. Teaching Test. Whether email, direct mail or other, the best marketing exposes or teaches the customer something about their business that they didn’t understand or had underestimated before, thus leading them to your solution. Test: Can you clearly identify the teaching point in your marketing piece? More importantly, can your customer?
  6. Advocate Test. Finally, one overlooked area of marketing is that in an era where more buying is done by committee or consensus, the marketing piece should easily enable the advocate to share internally. Test: Does your marketing evoke a desire to share with internal influencers and decision makers without explanation?

Failing in any one of these areas will have some level of impact to your marketing effectiveness. Failing across two or more of these areas will guarantee suboptimal returns.

Time and budget constraints are real for most marketers. What many fail to realize is that the shortcuts taken to get marketing out more quickly without applying these filters and tests to the piece first, has a compounding effect on marketer’s time and budgets. The ineffectiveness of any campaign requires more to be done to make up for what the last campaign failed to produce.

Conversely, putting these six filters to every one of your marketing campaigns will take major steps towards your marketing effectiveness. Greater effectiveness leads to less pressure on time and marketing spend.

Jeff Michaels | Repeatable SuccessJeff Michaels is a Sales & Marketing Executive that has worked with executives, leaders, & teams for 25 years to create repeatable success regardless of industry, economy or circumstance.

Case Study: Is the Problem Marketing or the Marketer?

Lead Generation and Lead QualificationThe Phone Call…

“Am I going crazy?” Having just answered the phone, I had no idea who was calling and asking such a question of me. I responded with a courteous, but cautious chuckle saying, “Well…I think I’ll need a little more to go on. With whom am I speaking?”

She paused, told me who it was, laughed rather distractedly, then proceeded to dive right into describing her dilemma from today’s meeting with the Marketing Director from her “problem division.” She is the Sales Director of a firm in which I knew a bit about, particularly with the company’s background and this particular division’s struggle.

In summary, sales were strong across all of her other divisions and lines, each of which had their own marketing leader, while she led the Sales across all divisions. Things were great, that is for all but this one division. Sales continued to decline year over year and had high lead dependency from Marketing, thus her concerns.

The Rest of Her Story…

The sales model is B2B with an outbound sales team that sells consumer products ranging from $200 – $1,000. As described earlier, they are highly dependent upon Marketing to deliver leads.

The Division Head and Marketing Director were both new to this division in 2011 and had stepped in with a new, radical, $1M cost-reduction strategy for marketing. The new marketing mantra became for the next two years, “Less Quantity, More Quality!”

This strategy resulted in lead reduction of 60% in 2011 compared to 2010. In 2012, the leads dropped another 40% from 2011. Not surprisingly, sales had correspondingly declined steeply, more so than any other recent period. While sales did have a dramatic decline, it was nowhere near the rate of decline for the lead volume.

The Sales leader saw neither quantity nor quality from marketing, and as she describes it, the numbers supported her version of the story. Despite the numbers, the Marketing Leader and Division Head remained committed to defending their original strategy a year and a half into it with major revenue losses, and subsequently showed no openness to a different, or better strategy.

Towards the end of 2012, she managed to get a commitment from Marketing for substantially more qualified leads in 2013, although to the Marketer, ‘qualified’ apparently meant email, number and “Request for literature.”

Additionally, the Marketer’s commitment was simply to an aggregate number of leads on a monthly basis, but not by geography, firmographic, demographic, product type or other. His tactic? Email marketing….it’s part of the ‘cost-reduction’ plan.

Today, prior to the call and after her meeting with the marketing team, she made her plea for more qualified leads as the current lead quantity left her outbound team with capacity in excess of 60% going into their largest quarter of the year.

After her meeting, she shared that in addition to the quantity of leads being a third of what they needed, 80% of them were for two of  their 10 product lines. This meant that they had on average  a half-lead per rep to call on each day for the remaining products….not enough to meet the sales plan.

“A Lead is a Lead is a Lead!”

Through frustration, the Marketer responded to her plea for more balanced and qualified leads with saying, “A lead is a lead is a lead. We know that regardless of what product type we market, more than half of the prospects will want something different anyway. We could collect leads on just one of our products and it wouldn’t matter. All that matters is that you have leads of any type, then your team can determine what they really need.”

Again, the sales exec says to me…this time through tears…“Am I going crazy? Do I have my expectations set too high? Is it unreasonable to ask marketing to know the customer well enough to hit who they’re aiming at? Maybe I am the problem. I don’t feel like I am but it just seems like we need to change our approach to marketing.”

I responded, “Being crazy and unreasonable is not your problem, although your 2-year tolerance may be a part of the problem. It sounds to me like there is a much larger issue at play here…”

Change the Marketing, or the Marketer?

I speak with people in Sales and Marketing roles from all over the country. From executives to analysts to reps. Lead generation and qualification is by far, one of the most common frustrations I hear.

No matter who I am working with or from what field, I am pretty quick to keep the responsibility and accountability with each respective group I am working with. Most companies needing my help typically don’t have their respective ‘houses in order.’ Therefore, I keep Sales concentrated on their own responsibilities and Marketing, theirs so I don’t create an all out Game of Thrones. I work with the executive leadership on cross-departmental improvements before circling back to the departments.

For these reasons, offering up an anecdotal recommendation to this Sales executive to “change the Marketer” after merely an hour-long conversation would be ill-advised, no matter how apropos that may seem. There is always more to the story, especially when it comes to Sales and Marketing alignment.

What Advise Would You Give?

Given the very limited facts we all have here, what advice would you give and to whom would you target your comments? The Marketing Director? The Sales Director? The Division Head? Who would you love to spend 15 minutes with and what would you tell them?

Jeff Michaels | Repeatable SuccessJeff Michaels is a Sales & Marketing Executive that has worked with executives, leaders, & teams for 25 years to create repeatable success regardless of industry, economy or circumstance.

Sales: Those that can’t close, can’t open

Prospecting Sales CallEver get bad advice? I read a post this morning that struck me as such as it advised 3 Questions Sales People Should Ask Every Prospect. The three questions [taken from a longer ‘disqualification checklist’ of questions] recommended asking the following questions of every prospect:

1. What is your biggest [YOUR INDUSTRY] related challenge?
2. Why is what you’re doing now not working?
3. How do you go about making a decision like this?

In my post a couple of months ago, Are Your Questions Killing the Sale, I addressed the problem of exploratory questions like the first question suggested above.

In this post, I would like not only to implore sales reps to avoid squandering opportunities with prospects through exploratory questioning, but also provide compelling stats on the need to get the message right — from the opening question, through the closing of the sale.

Do you have the right starting point?

CEB had done a survey among 5,000 executives and decision makers that deal with sales reps, in which 86% of them indicated that the sales rep’s message had no commercial impact whatsoever to them.

86% of executives/decision makers believe sales rep’s messages have no commercial impact!

According to Tim Riesterer, Chief Strategy & Marketing Officer for Corporate Visions, he describes the buyers as coming away from conversations with reps believing that what they are currently doing right now…the Status Quo…is okay and they themselves are okay. How do they know? The Sales Reps led them to believe that was the case because there was nothing to suggest otherwise in their communication.

Sirius Decisions had similarly shocking results from their PMM Survey suggesting that the biggest inhibitor to achieving quota was the rep’s inability to communicate messages of value. Not surprisingly, what we communicate and how, is of great import to our results.

Yet, so many take the approach of winging it with prospects, and exploring their way through the sale.

3 Steps to Approaching Prospects Differently:

  1. Know your prospects and know your story. Don’t call indiscriminately looking for any customer that may or may not fit your solution. Be specific and call those whose story you know and that you can help based on prior experience. Have a solid understanding of the issues those similar to them are facing in their industry
  2. Establish credibility quickly. If you have the right story and the right prospect, you will be able to demonstrate understanding of the typical issues those in their industry face. After stating your purpose for the call, open with a statement that summarizes the business issues affecting their industry.
  3. Validate with the prospect. Successful selling is not a monologue, but rather a well-choreographed conversation. Therefore, rather than assuming everybody has the same problem and moving on without them, follow your statement with a question to validate if they are experiencing any of the same issues you just described.

Putting the three steps together, the opening of your call with a prospect sounds something like the following:

“We work with businesses similar to yours from all over the country and have found that each commonly face one of three business issues, given the [current condition]. Their most common issues tend to be [X], [Y], or [Z]. Is your business currently facing any of these same problems?”

If you have a solid understanding of the typical issues similar businesses are experiencing, not only will you get quick confirmation, but often times they say they are struggling with most or all three areas. This allows you to start walking down the path to lead them to the center of their own story.

Even if they mention a different problem, you are still on a better path to zero in on their issues and create complete unrest with their status quo.

If they are not struggling with any of the issues you described in your opening, then you either have the wrong story, the wrong prospect, or both. Go back to step 1 and dedicate the time up front to get this right as you likely circumvented the full process and have just cost yourself a prospect and your credibility.

On the other hand, if you dedicate appropriate time to these first 3 steps of opening with credibility and delivering a message of value, you will see immediate improvement in your close ratios.

Jeff Michaels | Repeatable SuccessJeff Michaels is a Sales & Marketing Executive that has worked with executives, leaders, & teams for 25 years to create repeatable success regardless of industry, economy or circumstance.

A Metaphor for The Challenger Sale

Reframe HooksIn my post, Challenger: Reframing the Reframe, I spoke of the common struggles many organizations are having with the Reframe that are implementing The Challenger Sale.

The aim of this post is to provide a picture of how the Reframe functions and the role it plays within the context of Commercial Teaching and Commercial Insight.

While I hate the negative connotations that can be associated with ‘sales’ and ‘lures,’ I saw some constructive applications that may help to make the point. So let’s all agree up front, that none of us are intending the imagery to be derogatory towards customers nor the way responsible Sales professionals behave.

The Role of the Reframe
The authors of The Challenger Sale make reference to the Reframe as being the “Headline” of the insight. The goal, of course, is to attract the customer’s attention and ‘set the hook’ with an unexpected viewpoint (insight), thus the imagery of the lure.

It is at this point where the differences between Insight and Reframe can be confused as many would define the lure as the Reframe. It may help to recognize that Reframe is a verb, not a noun, but let’s define this further in the metaphorical sense. Keep in mind that no metaphor is perfect, though I hope we can have some fun with this.

A Picture of the Challenger Sale
To help get a clearer picture of how the Challenger Choreography functions with respect to Commercial Teaching, Commercial Insight and The Reframe, following are definitions and descriptions cast within the context of a fishing metaphor.

  • Lure = The Warmer: It appears attractive and familiar; Operates within and relates to the customers world
  • Hook = Commercial Insight: A part of the lure, tailored to the customer; Creates discomfort with status quo
  • Setting the hook = The Reframe: The customer is hooked unexpectedly, compelled to go a different direction
  • Line = Rational Drowning: The fishing line, or business case, ties the insight to the customer’s story
  • Reel = Emotional Impact: The reel is symbolic for drawing the customer into the center of their own story
  • Pole = Commercial Teaching: The fishermen uses a pole to skillfully deliver insight at the right place and time
  • Flex = Constructive Tension: Pole flex represents tension when drawing customers to the center of their story

The Metaphor in Action
So now that we have definitions set, here is how this looks in action.

You, the skillful Sales professional cast your lure into the specific area of the lake where your customers are known to swim. It is a place where not many other people fish, as they seem to prefer where the waters narrow. The locals call it The Funnel. You prefer being upstream, at the top of the funnel where your customers aren’t use to seeing what you fish with.

You cast your insight right on target so as not to intrude, but rather to meet them where they swim together to be social (Social Media). The others fishing the Funnel, create a splash every time their lure hits the water. They refer to this as their ‘prospecting call.’ It sends the fish into hiding every time. Those fishing are not dissuaded though, as they are known to spend inordinate amounts of time just looking for any customer that is attracted to their lure.

However, the customer you are looking for is specific and is currently entertaining your lure. Upon seeing your lure, it feels immediately  familiar and agreeable to them (The Warmer), looking like it belongs in their world and was made just for them (Tailoring). In fact, it looks quite appealing.

The customer likes what they hear as you describe the waters in which they currently swim and they start to nibble at the lure. Normally, after a nibble they drift off, but rather than needing a nap, they are engrossed with what you just shared (Commercial Insight). After all, what you just shared was that the waters where they currently swim are having a direct impact on their growth.

Being somewhat disoriented by what you revealed, and fearing you are correct as you give a little tug to set the hook, they find they are hooked (Reframe) and going in a different direction than they thought they were originally going to go with you.

You let out a little bit of line as you continue to make the business case (Rational Drowning), but never so much as to let the flex in your pole (Constructive Tension) go back to slack (Status Quo). Too much line can allow them to go in unproductive directions, getting tangled in the roots and rocks of the lake bed (False Positives).

This could cause harm to them, which was never your intention and is why you don’t reel them in too fast either (Destructive tension). In fact, you care so much for them that you are willing to endure some initial discomfort, because you know their future is better with you than without.

As you skillfully reel them to the center of their own story, they come to realize that fighting to remain where they are at…their status quo…is now untenable. They know the consequences of remaining are detrimental. There just has to be a different way… or even a New Way out of this mess.

With confidence and care, you compassionately share that which you couldn’t wait to talk to them about earlier. Your Solution. But you knew, bringing this up any earlier would be too soon for them. It would have sent them racing to the center of the Funnel to find comfort with their peers. That is why you patiently led them in a way they could follow.

In Summary…
As a humorous way to demonstrate the rest of the metaphor relative to the customer’s Status Quo and Our Solution, I thought this would fit with the metaphor…

Disrupting Status Quo | Repeatable SuccessIt has been said that the fish can only grow to the size of its fishbowl. There’s a better way. Wouldn’t you agree?

Jeff Michaels | Repeatable SuccessJeff Michaels is a Sales & Marketing Executive that has worked with executives, leaders, & teams for 25 years to create repeatable success regardless of industry, economy or circumstance.

 

LinkedIn Tip: Don’t waste opportunities!

LinkedIn TipsWith more than 200 million members now on LinkedIn, millions are wasting opportunities to be noticed…liked…shared by others, by ignoring one simple practice.

What is the Practice?
The practice, is simply doing what newspapers have known and done for years. Newspapers begin with the headline, followed by a compelling opening sentence/paragraph, with further details provided later in the story for those interested.

What is the Problem?
The problem lies in the preamble setting up what your post or update is aiming to teach. Consider this post for example. I could have opened like countless people do, which in this case would be to emphasize who LinkedIn is, what they are known for or have now become (i.e., “LinkedIn has become the largest B2B…). You know how it sounds.

If I did so, not only would that be redundant with what most already know [INSERT YAWN HERE], but worse, I would squander the opportunity to elicit reader’s interest for what they may learn by reading my post.

Target your Openers
Instead, I aimed my opening at a specific profile (i.e., Those that post updates on LinkedIn and comments in groups, but rarely get shares, responses or likes). By targeting specific people with a concise message, when my post gets placed in LinkedIn’s updates, potential readers are seeing at a glance, what I want them to see…wasting opportunities on LinkedIn, because they hadn’t thought of this way before.

This principle of targeting your opening sentence also holds true for comments in LinkedIn Groups.

For example, in a group, someone posts a provocative topic or question. You respond with your unique point of view or contribution. If you are not getting likes or responses to your contributions, the two likely scenarios are 1.) Your comment wasn’t as unique or as contributory as you thought, or 2.) Your opening comments offered no compelling reason to read further.

Remember, when you comment in a group, not only is an update posted to the homepage with your opening sentence [or two], but that same opener is put into a reduced digest that goes out to the group’s subscribers. LinkedIn is doing everything it can to get you noticed. Don’t fight them. They are aiming to help you.

“In a ‘warp speed’ world, content-consumers spend their clicks conservatively”

Don’t just take my word…
If you take a cursory glance at the ‘Home’ tab of your LinkedIn page and scan the updates, take note of your behavior when scanning the countless updates for items of interest. What grabs your attention? If typical trends prevail, it is likely the photo or headline, followed by the description of the post.

While it is true that a good headline alone can draw eyes to the story,  in a ‘warp speed’ world, content-consumers spend their clicks conservatively. Will they spend it on your post or somewhere else? Rest assured, they will spend it somewhere.

Applying I.P.R. filters to LinkedIn
Since the aim of this blog is to always look for behaviors that contribute to Intentional, Predictable and Repeatable  (I.P.R.) results, lets summarize as follows:

  • Intentional – Make the first sentence of your update, comment or post intentionally engaging
  • Predictable – Evidence of a compelling description predictably results in more shares, views and likes
  • Repeatable – Intentional modifications to behaviors that produce predictable outcomes are repeatable

Jeff Michaels | Repeatable SuccessJeff Michaels is a Sales & Marketing Executive that has worked with executives, leaders, & teams for 25 years to create repeatable success regardless of industry, economy or circumstance.

Marketing Benchmarks: Has marketing missed the mark?

What makes a great Marketer?

The best marketers are thought-leaders. Not only are they acutely aware of the drivers of their results, but they have a deep understanding of consumer behaviors and point the organization forward to be prepared for trends and shifts in their behavior.

Hubspot Marketing BenchmarksThey love [useful] metrics, as this guides their efforts to show better returns over time, not the same or worse.

Great marketers are aware of these consumer behavior shifts before they are even perceptible to most in the organization.

As a result, you see this most quickly reflected in the marketing in ways that connects deeply with consumers and resonates more so than the common marketing in the marketplace.

Good marketing takes work, but what does it take to be best-in-class? Furthermore, how do you compare against your industry?

Find out with HubSpot’s latest study, Marketing Benchmarks from 7,000 Businesses.

Download the Marketing Benchmarks Report

This brand new report dives into how you can increase your traffic and leads by improving a variety of marketing assets, including:

– Web Pages
– Blogging
– Landing Pages
– Twitter
– and more!

Get a clear idea of how much more you need to do to see the results your organization needs. Download the report to see if your marketing is hitting the mark.

Jeff Michaels | Repeatable SuccessJeff Michaels is a Sales & Marketing Executive that has worked with executives, leaders, & teams for 25 years to create repeatable success regardless of industry, economy or circumstance.

LinkedIn: Are you in the Top 1%? If so, bummer!

LinkedIn Top 1%LinkedIn recently reached out to 10 million of its members with a ‘Congratulations’ for having one of the Top 1% [or Top 5%] most viewed profiles in 2012. This was their way of ‘thanking’ those that contributed to its 200 million member milestone.

Great news, right? Not so fast. That all depends on why people are seeking you out. For many, I suspect they are down right proud of such an accomplishment…one in which they had no idea they were shooting for until LinkedIn said, “Congratulations.”

As for me, I am a bit more cynical on why people are looking at my profile that often. Is it because I am special? Can’t be. I know me. So what, then?

With social selling becoming a much more significant way to prospect, what LinkedIn may actually be calling out is that those in this elite group are getting the top 1-5% of the solicitations from hungry sales people. So my special notification from LinkedIn would have been more appropriate, had it said…

“Jeff, congratulations! You are in the Top 1% that is most likely to get solicited!”

Of course, I am over-generalizing in terms of how this is used and I certainly realize the many benefits of being found where people are searching, but it is interesting seeing the different perspectives on the topic.

For instance, the other day I read a post of one SEO Consultant on his achievement of the Top 1%. I was surprised to see Mr. SEO quickly cite his top reason to how many first-level connections he had. He went on to share that he receives 15-20 connection requests from strangers per day. His subsequent reasons then pointed to Keywords and frequent Updates to his LinkedIn status.

One of his readers commented on his post that they too made the top 1%, but have less than 10% of the connections he has, and spends little to no time at all on their LinkedIn profile. He responded by saying, “I believe if you had more connections you would definitely do even better.” Hmm?!

So what gives? How do two people with completely opposite profiles and far different behaviors in their dedication to their LinkedIn profiles end up with the same result of a top viewed profile?

Turns out that keywords are pretty important, after all. Even more so than number of connections, Mr. SEO.

So, if you are looking to increase solicitations from prospectors, make sure to research trending keywords that relate to you and include them in your profile. Do this, and YOU TOO can join the ranks of 10 million other members to balance the load of solicitations you are sure to receive.

Jeff MichaelsJeff Michaels | Repeatable Success is a Sales & Marketing Executive that has worked with executives, leaders, & teams for 25 years to create repeatable success regardless of industry, economy or circumstance.

Challenger Sale: The Reframe Exercise

Challenger Sale Reframe

Practice reframes with ordinary objects

The Challenger Sale Choreography
If you are familiar with the Challenger Sale, you will quickly recognize the six components of the Challenger Choreography described as follows:

1. The Warmer
2. The Reframe
3. Rational Drowning
4. Emotional Impact
5. A New Way
6. Your Solution

A cursory review of what each stage of the choreography is intended to accomplish is largely unsurprising, and in five of the six stages, looks similar to many selling systems* out there.

There is more than meets the eye, especially as the real point of differentiation tends to hinge on the second stage with the Reframe. Being able to Reframe, or share an insight in a way that the prospect hasn’t thought of or considered before, is paramount to moving successfully through the rest of the choreography.

*Just a quick note to remind people that The Challenger Sale is not touted, nor intended as a ‘selling system.’ Brent Adamson shared the following on the topic in a blog post back in 2012…

“The Challenger Sale isn’t so much a “selling system,” as it is a way to think differently about how to approach customer interactions.”

— Brent Adamson

Cultivating Rep Proficiency with the Reframe
If you are looking to build proficiency in the way your sales and marketing staff successfully communicates reframes, perhaps the exercises we had done in weekly team meetings will be helpful to you in working with your teams.

Getting people to think differently about something in ways they have never done before is not an easy task, especially for those that had not been thinking that way. Therefore, we were looking to develop and cultivate competencies in this specific area so our team could recognize unique points of view and deliver them without the feeling of “starting from scratch,” as some had described the process.

The ‘Reframe’ Exercise

Following is an exercise I led the teams through to not just teach them what to say, but rather teach them how to think to create effective reframes.

Each Team Leader would bring a mystery grab bag of everyday items to the meeting. The team would pair up and grab an item from the bag. Representative items included things like scissors, a whiteboard eraser, aspirin, etc.

The pairs would take 5 minutes to come up with their Teaching Point, followed by a Warmer and a Reframe on their respective item. Next, they would present to the team for a team evaluation. We would then debrief with the whole team by asking a series of questions, such as, “Did they lead WITH the solution or lead TO the solution?” and “Did they share an insight in a way you hadn’t considered before?”

In one of the exercises, the teams were tasked with reframing the same item – a wire coat hanger. Some groups went down the path of calling out the many uses for a wire coat hanger (e.g., “perfect for unlocking car doors,” which is the stereotypical, product-centric, ‘lead WITH’ approach). We debriefed and they understood where they made their mistake.

However, following is what came from one group [in abbreviated form] as they had a better handle on the reframe process…

Teaching Point: Homeowners are often short on closet space and fail to realize the main culprits of closet space are plastic and wooden hangers which are 5-10 times the width of wire coat hangers.

Warmer: “We often hear from many of our customers that closet space at home is at a premium as they cite that they have too many clothes and their closets are too small. Is this something you experience as well? [They validate with the customer, so as not to assume a problem they don’t have]. The customer/prospect is invited to share the specific details of their problems.

Reframe: “We hear that a lot. In fact I hear solutions ranging from changing out their clothes for each season to complete remodels to build larger closets. What is interesting is that when you consider the #1 choice of hangers for most people, it is the plastic coat hanger. Have you ever considered the fact that a plastic hanger is 7x thicker than a wire coat hanger? Perhaps a different question is why your local dry cleaners don’t use plastic coat hangers? While many believe it is due to cost, their reason is that they would need to build a facility 1.3x larger to house the same number of articles of clothing that they currently house by using a wire coat hanger.

We call the process batting practice as it is a way of warming up before sales calls. This process has been fruitful with our teams as they have started to recognize and develop reframes on the fly to get people to see things differently all throughout the day.

In fact, for several, they have begun to pass along affirmations to their colleagues in the form of, “I never thought of it that way before,” when they have successfully reframed whatever the point was in which they were speaking. They are having fun with the process and the audience, be it customer, prospect, family member or friend, benefits as a result of the new insight.

Following is a resource you can use with your teams to practice Reframes of common everyday objects.

Reframe Exercise Worksheet

Share your insights on exercises you have used or are using with your teams.

Jeff Michaels | Repeatable SuccessJeff Michaels is a Sales & Marketing Executive that has worked with executives, leaders, & teams for 25 years to create repeatable success regardless of industry, economy or circumstance.

Challenging Sale vs. Challenger Sale

After speaking with a number of people across a variety of industries regarding their interest and curiosity in the Challenger Sale, I continue to find one common misperception about the disposition of a Challenger. Too often, their picture of what a Challenger approach looks like in marketing and selling gets depicted like the picture you see below. In other words, they picture a ‘lean forward’ posture, that uses an aggressive and controlling approach. In their minds, this is substantiated by the tagline, “‘The Challenger Sale: Taking Control of the Customer Conversation.”

Challenger Sale Misapplied

With some effort and due diligence, one would quickly agree that this is NOT what CEB was intending nor depicting in the research.

I cringe at the thought of how that kind of posture in messaging, whether in sales or in marketing, would play out with potential customers. In fact,  I recently saw one company’s marketing attempt to ‘challenge’ the prospect’s status quo, which implied that using the competitor’s products may actually “hurt” the end users, not “help” them. Further exploration of this marketing piece revealed that the ‘hurting’ vs. ‘helping’ question asked in the subject line, was not only never answered, but not addressed at all in the body of the email.

Providing unique insights that truly teach prospects into thinking in ways they had never thought before is difficult, and requires much time and attention to do so responsibly. Failing to give the appropriate organizational time, focus and effort to develop a true commercial insight, before launching into what is perceived as a ‘Challenger ‘ message, is not only irresponsible, but likely offensive.

After personally grappling with CEB’s research for a year now, I remain compelled by the evidence of their findings. That said, I also quickly recognize that the ‘how to’ of changing an organization’s and rep’s behaviors is far more difficult than the ‘why to’ that CEB’s book spoke about. It is worth the pursuit, however, and CEB has been instrumental in helping walk through the process of the Challenger implementation.

I am curious, particularly from those familiar with the Challenger Sale behaviors…what picture would you describe of the Challenger to someone inquiring of what a Challenger Sales Rep or Challenger Marketing message looked like? Please leave your comments below.

Jeff Michaels | Repeatable SuccessJeff Michaels is a Sales & Marketing Executive that has worked with executives, leaders, & teams for 25 years to create repeatable success regardless of industry, economy or circumstance.

Reorganization or Turnaround? (Part 2): Top-Line Temptation

Top Line TemptationLast week, I wrote about common mistakes made with an underperforming Division or Business Unit in my post titled Reorganization or Turnaround? (Part 1). Most notably, I spoke of the tendency to prescribe a reorganization to situations when a turnaround was really needed, by failing to recognize issues that are below the “waterline.”

If you are the leader of a struggling division, business unit or team that has solid sales, but have continued to underperform the profitability expectations for multiple periods, this post is for you.

The Top-Line Temptation
There is no doubt that top-line revenue covers a multitude of sins. The problem is that too often this is seen as a good thing…or at least acceptable. These ‘sins’ in business, so to speak, that detract from profitability are analogous to the roots of a young tree that later grows to disrupt the foundation. The foundation, in this case, represents the whole organization. Addressing the root of these problems is always better done earlier, for obvious reasons, as the picture of the tree below perfectly illustrates the implications of letting problems persist.

Unfortunately, what happens all too often is that with solid revenue comes the belief that things will correct themselves over time. That increasing the sales will begin to create economies of scale, eventually leading to profitability. Question – When was the last time you saw a profitability issue like this work itself out over time?

Getting at the Root of the Problem
There are a variety of reasons why a leader may be experiencing solid sales with poor profitability, but I want to address one of the more common reasons I see. This is the ‘sales at any cost’ approach. When this is the case, the inappropriate pursuit of revenue tends to come in one of two forms.

Root Cause

The Root of the Problem

The first way revenue is inappropriately pursued comes in the form of aggressive discounts, incentives, and promotions. Unprofitable discounting creates an inflated sense of demand, which bursts the minute the discounts stop. The more inherent problems with this approach, other than increased costs and false demand, is the longer term impact of discounts and incentives lowering the perceived value in your customer’s eyes.

The second way that revenue is inappropriately pursued is through disproportionate costs of acquisition and retention, beyond that which is profitable. In these situations, typical strategies include increased marketing campaigns, sales blitzes, additional staff or even the introduction of new products or services on top of an overly burdened cost structure.

In some cases, a division may inappropriately pursue both, discount strategies and increased activities. The compounded effect of having lower revenue at higher costs puts the business area on a fast track to what I call ‘divisional bankruptcy.’ Not only is this unsustainable, it is a terrible strategy in general for leading a division to profitability.

5 Questions to Determine if You Have a Profitability Problem
Now that we have a good handle on some of the problems and why they occur, it is important to determine whether these are your problems are somebody else’s problems. Also important to note is that the conditions described above are not the sole list, but rather representative of the type of conditions that lead to solid sales with poor profitability. Therefore, the following questions will help in determining if you are in a situation requiring a reorganization or turnaround.

  1. Were your most recent profit results intended? Comparing performance to plan (PTP) is an important measure. There are times when losses are planned. If so, did you meet the plan? If not, proceed to #2.
  2. If your PTP was not intended, do you know specifically what contributed to this? If you answered “no,” stop reading now. Enlist all necessary resources to figure this out. Without this, remediation is impossible.
  3. What specific steps do you have in place, to correct the problems? Assuming you answered ‘yes’ for #2, specific SMART goals should be in place with key staff that will correct the profitability shortfalls.
  4. How long will the plan take to restore profitability? Remediation should occur within 6 months or less. Be very careful about setting anything longer as too often you are delaying the inevitable. The time to act is now.
  5. What is your track record for accurately forecasting corrections? This is an important gut-check. Be honest. If you tend to be overly optimistic, best to confront that now as people are depending on you.

Reorganize or Turnaround?
After having assessed the cause of the problems and determined next steps, you should have a sense of clarity on whether or not you have a ‘waterline‘ issue or not. If you have diagnosed your problem to be below the waterline, this is a turnaround. You are now in a dead sprint to correct the problem before your CEO steps in on your behalf to correct the problem simultaneous with your exit.

Time to A.C.T.
Now that you have properly diagnosed your predicament and are committed to an expedient correction, it is time to act. I have put the steps in the form of an acronym to serve as a virtuous, or repeatable, cycle to follow throughout the recovery.

  • Assess. Pull out the financials along with your sales and marketing metrics to assess where the key profit detractors lie. Don’t fall for only cutting easy, non-essential areas. The allure is that it looks like you took action without disrupting anything too significantly. The problem is that it won’t disrupt anything too significantly. Cut the small stuff, but cut the big stuff first. Remember the tree picture above…address the root issues!
  • Correct. Having identified where to cut, commit to correction through decisive action. These times aren’t easy, so best to communicate lavishly before, during and after the turnaround. Before lets people know what to expect. During to give updates and demonstrate it’s working. After confirms that your actions were worth it.
  • Target. Cuts are important and necessary, but are not the entirety of your action. Time to target key start and stop activities that contribute more quickly to your division’s profitability. Examples include not pursuing unprofitable customers, or to stopping marketing activity that aims to discount its way to profitable growth.

As described above, this process is intended to be followed and repeated, assessing and adjusting as you go. If you are entering this process of a turnaround, I would like to offer encouragement as you have demonstrated the two characteristics I described last week – Humility in acknowledging your situation and Courage to address the problems head on. Once you successfully turnaround your division or business area, not only will you have the respect and admiration of your staff and CEO, but this will likely serve as one of the largest confidence booster’s in your career that will serve you well in years to come.

Jeff Michaels | Repeatable SuccessJeff Michaels is a Sales & Marketing Executive that has worked with executives, leaders, & teams for 25 years to create repeatable success regardless of industry, economy or circumstance.