The Wiser Customer Weblog

Have you ever considered why a business advertising model like telemarketing died? Sure we know that the Senate and US Congress Passed a Bill for Do Not Call Lists and that the President of the United States signed it into law right? And we know that the Federal Trade Commission fined a few companies a lot of money and like FAX Marketing; telemarketing died on the vine. But why did this happen?

Well, telemarketing became too efficient and too many companies hired too many firms to cold call targeted lists and often random phone numbers too. Some marketing consultants who have written books on the subject say that it conflicted with people’s lives; such as phone calls at dinner time and actually turned off customers and it did not really help folks get the information in the way they needed at the appropriate time to assist them in their decision making process for the product or service.

In fact many of us have simply been very upset by pushy telemarketers calling at our dinner hour. When you are busy and not interested they waste your time and will not take no for an answer and some of these persuasive folks indeed are paid commission and try every manipulative trick in the book. It is for these reasons telemarketing lost favor and indeed has been literally slaughtered.

The few companies remaining due to bogus government regulations due to lobbyists are extremely careful now how they do things because people, customers and consumers no longer accept these intrusions. They no longer consider it advertising, but rather more liken it to International Terrorism. Consider all this in 2006.

The majority of people in the sales force spend an average of no more than two hours out of their day actually selling.

This fact is astonishing for two reasons. One, how do we as sales people manage to meet our goals. And two, why on earth are we in sales to begin with?

The lack of hours spent selling in our work week is understandable. Lets face it. The paperwork alone can take up half of your day. Not to mention the phone calls, the problem solving, putting out fires, etc.

There are many challenges to be faced throughout the day.

Why is this? Why does this happen?

It is all believed to be a mind set, and a very dangerous one at that if you plan to survive in the world of retail.

Because problem solving and handling customer complaints is a difficult challenge we must face on a daily basis, we automatically believe that this should take priority over our selling, because we see the selling as fun and rewarding.

All the other issues can be stressful, so we tend to want them out of the way so we don’t have to worry about them.

Yes, dealing with current customers and building the relationship is very important, but your goals don’t go away. So we must obtain new customers through new sales.

Probably the key ingredient to spend more of your time selling is time management.

Put together an action plan for each day of the week where you allow at least four hours of your day to be spent selling.

It is very easy to put an action plan together, but it is extremely critical that you stick to it in order to succeed.

Another key ingredient to spending more time selling is delegation. If you have the luxury of a staff, why not delegate some of the operational issues to other people.

Plus, you know the rush you get from a sale, the thrill of closing the deal. This can have a psychological effect on your work day. Making a sale is a great feeling and certainly out weighs the depressed feeling that comes with dealing with operational issues all day.

Remember, you are a sales person, and it is very important to spend the majority of your time selling.

There is not a problem that your current customer is having that cannot be fixed by either you or the person you delegate it to. So concentrate on sales.

Jay Conners has more than fifteen years of experience in the banking and Mortgage Industry, He is the owner of http://www.jconners.com, a mortgage resource site. You can also check out his blog at http://wwwmortgagespot.blogspot.com for more articles

A study done by the Association of Sales Executives revealed that 81% of all sales happens on or after the fifth contact. If you’re a small business owner and you’re only doing one or two follow-ups imagine all the business you’re losing.

Not following up with your prospects and customers is the same as filling up your bathtub without first putting the stopper in the drain!

But don’t be disheartened if you’re among the 90% of business owners I talk to that don’t do any follow up. The good news is you have ample room for profitable improvement.

Consistent follow-up creates a predictable and profitable stream of prospects and customers that buy. Small businesses that capture leads and follow-up with them enjoy higher conversion rates and a higher percentage of referrals than those that don’t.

After asking many small business owners the reason they don’t follow up I often hear responses such as, “I don’t have the sales staff to chase down all our leads”, or “We’re usually too busy to do a lot of follow up.” These responses automatically set off red flags that tell me that they lack a systematic process for following up.

The problem is not that they don’t have the capacity to follow up with prospects, it’s that they don’t have the systems in place to do it.
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What Does a Good Follow Up System Look Like?
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A good follow up marketing system should have three attributes.

It should be systematic, meaning that the follow up process is done the same way every time.

It should generate consistent, predictable results.

It should require minimal physical interaction to make it run, meaning it should be able to run on autopilot.

Sounds like a dream come true for most small business owners doesn’t it? Not only can it be done, it’s being done every day. The secret to “follow-up marketing” is to make it automatic so that you don’t have to lift a finger but the job still gets done.

With today’s technology it’s simpler than ever. Automating your follow-up processes gives you more time to work “on” your business rather than “in” your business.

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Three Types of Follow Ups
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There are three types of people you should be following up with, suspects (people in your target marketplace), prospects (people who have responded to your marketing but have not purchased, and customers (people who have purchased something from you.)

Each follow up message and offer will be different for each type of person. With suspects, you’ll want to entice them to call you or visit your store / office.

With prospects, you need to persuade them to make their first purchase. And with customers, you want to convince them to come back and do more business with you and give your referrals.

Obviously the hardest type of person to follow up with is a suspect because they haven’t shown any interest yet in a pool or hot tub and you usually don’t have their contact information.

But that’s not true with prospects and customers. You not only know who they are, but you should already have their contact information.

And if you follow up with your customers with consistency you’ll find that they will help you turn your suspects into prospects and prospects into customers for you through referrals.

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Your Follow Up Marketing Tools
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Your principal follow up marketing tools are the telephone, direct mail, and email. Many pool and hot tub business owners make the mistake of jumping right on the telephone to follow up; however, most prospects don’t want a pushy sales message right away and most prospects have been trained to consider anyone who calls up to be a pushy salesperson.

Instead, you should try to develop a relationship of trust with your prospect by quickly sending informational items such as special reports, audio CDs, or videos before you make a phone call.

Remember to always include a “next-step-offer” to accompany your educational materials. If the next step is to visit the store, then entice them with an appropriate offer or if the next step is to call you, entice your prospect to call you immediately.

People move through the buying process in baby steps, especially when considering buying high-ticket items such as hot tubs or pools. Your offer should always help them take the next step.

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Your Follow Up Sequence
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The power of your follow up will lie in your follow up sequence. Your follow up sequence is a series of communications with your prospect that are “linked” together, with each communication building on the previous message.

For instance, you might start your second letter by saying, “10 days ago I sent you a letter…” You might also consider stamping the message, “2nd Notice” on the envelope to let people know this is the second time you’ve contacted them.

Referencing the previous communication links what you’re saying with what you’ve already said and reminds your prospect that you care enough to continue the conversation.

Usually, when doing direct mail you should include three to five mailings spaced out about seven days apart. When using a sequential autoresponder you can have as many follow ups as you want because using email is basically free (that’s why you always want to get a prospects email address).

One of my clients has over 20 follow-ups in his autoresponder sequence that go out over a six month period.

Each sequence should follow a logical argument and you might consider bolstering the offer with each communication using a deadline as a motivator to act now.

As an example, in the third communication you could say, “I’m surprised you haven’t taken me up on my generous offer. What’s holding you back?” Or consider saying, “I’ve written you three times and you still haven’t taken me up on my offer so I’m going to pull out all the stops and make you an offer you simply can’t refuse.”

Notice how the language always links the previous communication and increases the boldness of the offer. It’s the same type of conversation you might have in a regular sales conversation.

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How to Put Your Follow Up Marketing System on Autopilot
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What I’m about to reveal to you is the key to developing a powerful follow up marketing system because it overcomes the number one reason most businesses don’t follow up.

You must automate your follow up system as much as possible so that there are few, if any, physical interactions from your employees with the system. It’s the required physical interactions (i.e. printing letters, sending emails, inputting leads etc.) where 99% of all the breakdowns happen in well-intentioned follow up marketing systems.

To automate your follow-ups you should consider using robotic marketing systems and outsourcing any manual interactions to a dedicated service.

For instance, to capture your leads you should consider using a toll-free automated recorded message system that captures your prospects contact information and automatically transcribes it and sends your leads to you in a spreadsheet every morning via email.

If you’re using a direct mail follow up system (and you should be), find a fulfillment house to do the mailings for you. To find a fulfillment house, simply go to your local printer and ask them to refer you to a fulfillment house in the area.

Now step back for a moment and see the power of what I’ve just revealed to you. Imagine running an ad, having your prospect call up and give their contact information via your recorded message system.

Then having your leads automatically sent to your fulfillment house via email, after which your prospect receives a five-sequence direct mail package containing your most persuasive marketing message — without you lifting one finger!

You can set up the exact same type of “hands-free” follow up marketing system using an email autoresponder system. Your prospect will not only be receiving your direct mail messages, but you can insert your email messages in between your mailings.

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What About Calling to Follow Up?
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You’ll notice that I didn’t say anything about calling your prospect. That’s because you want your prospect to have already received your educational marketing messages and have most of their questions answered before they call you. An educated prospect is your best prospect.

They already know why you’re different, what your value proposition is, and how you’re uniquely qualified to meet their needs. In essence, they’ve pre-qualified themselves before you ever have to spend time physically speaking to them.

This drastically reduces the sales cycle and increases your conversion rate because you have positioned your small business to be their only logical choice.

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Conclusion
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Follow-up marketing will boost your closing rate and dramatically increase your customer satisfaction. Following up with systematic processes allows you to leverage your salespeople’s time and enhance their productivity, which will result in more sales with less effort and isn’t that what you want? Start winning more sales today by implementing your own follow-up marketing system.

Copyright 2005 David Frey

David Frey is the author of the best-selling manual, “The Small Business Marketing Bible” and the Senior Editor of the “Small Business Marketing Best Practices Newsletter.” To get your free lifetime subscription visit http://www.MarketingBestPractices.com

Have you ever followed a snail? I arrived at the office early and noticed a snail on the glass door of the office. It was interesting watching this little rascal move along its path ever so slowly. Please understand that I wasn’t just watching the snail move. That would have driven me crazy. Snails move at about 2 feet per hour. Since the snail was on the front door of the office moving vertically. I calculate that the snail must have been on his journey for about 10 hours. Snails are most active at night. I was simply monitoring its progress each time I happened to walk past the front door.

Anyway, somehow this snail was climbing the glass door in the front of our office building. I felt a little sorry for the snail because it was on a journey that could only lead to disaster. If snails eat vegetation, then the snail was certainly lost because there wasn’t any vegetation in the area by the door. If it continued upward it would probably fall and someone would inevitably step on him. If snails have eyes to see where they are going, this one must have been blind because there isn’t food on the glass. I learned later that snails have poor eyesight and usually travel in circles.

Staying near the food

I hate to inform you but the snail didn’t make it past lunch time. I don’t know where he went but he didn’t make it. We don’t have to be snails to make similar mistakes. If we want to survive, we must stay near the food. Are you a salesperson who moves slowly through a territory and can’t see where you are going until you get there? This would be like being blindfolded when we make sales calls and not planning where we are going.
Look at your daily planner. Will you be going in circles today?

Is there food where you are going?

We understand that snails rely mainly on their sense of touch and smell when finding food because they have very poor eyesight. I don’t know about you, but touching a prospect doesn’t help me too much nor does smelling them. This isn’t the best course of action if we want to be successful salespeople.

Sales planning

Having a good sales plan that includes knowing where to go and who to see for new business is one way to prevent us from the snail’s plight. If we haven’t noticed, the landscape of business is different today than it was just a few years ago. Hopefully we aren’t in the same position as the Snail, moving slowly as we cover new territory and end up with long periods without finding food. Outside salespeople should plan where, who and when they will contact for new business. Before each call we should outline our objectives.

We know where the good food or best prospects are for our business. If we want to know, we simply have to look at our recent sales successes. Our business records are a great resource for this customer analysis. When we profile our customers it makes it easier for us to duplicate our successes. While this might seem like a natural sales exercise, it is often over looked by salespeople. Sales’ planning is one of the best ways to ensure we make the most of our sales time.

The point of this story is to wake up and realize that our sales goal is to find prospects and clients who can use our services. Our quest for success should be refreshed each day as we begin our journey through our sales territory. If you do not know where to go, seek advice and direction before you experience the snails plight.

Submitted by Steve Martinez, Founder of Selling Magic, a company focused on improving sales using technology and Automated Sales Process Management (ASPM). Get more sales tips at our website http://www.sellingmagic.com.

If you rely on online marketing to promote and market your business, you know that you must accept credit card payments online to be successful. Immediacy and convenience are the hallmarks of online transactions. When you’re making a decision about which online payment solution to use, you will ask yourself the following question.

“Should I pay a bit extra for a professional solution or should I pinch pennies and hope that a free solution will do?”

This is a fair and legitimate question for all online businesses especially those that are new and financially constrained. We all want to save money.

The question can be restated and better answered as “Is it worth it to pay more to have branded payment pages, customized thank you notes and receipts, a level of automation in post-sales processing, and ease in reporting”?

The answer, I believe, is yes it is definitely worth the extra expense because of the time and effort that you will save by not having to perform the non-revenue generating tasks that managing and dealing with a merchant account or a generic payment processor entails.

How much time does it take to answer calls from clients that are unsure what to do when they get to your ‘free’ generic payment page, or track down payments from clients that didn’t pay because they couldn’t understand the generic payment page instructions (enter your account name etc.)?

How much time does it take to manually cut and paste email addresses or send thank you notes and receipts to clients? How much time does it take to change pricing or the language on your ‘do it yourself’ payment page?

The non-revenue generating tasks required to manage a business are necessary but should not become the main activities of the business. If you are a service professional, i.e., a coach or consultant, your time should be spent in line with the 80-20 rule. That is; 80% of your time should be spent on revenue generating activities and 20% on other activities such as the administration of the business.

Think about it in terms of how much your time is worth. For every hour that you spend dealing with non-revenue generating activities, multiply it by the value of an hour of your time. The answer to this math problem is how much money you are losing by performing these tasks yourself. If the number of hours you spend on administrative tasks exceeds 20% of your work week you are cheating yourself out of revenue. And, aside from the lost revenue potential, you will soon find that administrative busy work is a drain on your motivation, energy and ultimately the success of your business.

If paying an extra $10 a month for a professional, managed online payment processing solution helps you to;

* reduce the time you’ll spend searching for client payment information,

* automate post sales follow up and receipt delivery to clients,

* quickly get new payment pages up and receiving payments,

* reduce calls from clients making payments,

* look more professional and trustworthy,

* not have to pay a web developer for a secure site and

* save money by not paying gateway fees, statement fees and other variable merchant account fees then using a premium online payment processor isn’t just worth the extra 33 cents a day, it’s a necessary cost of doing business right.

Can an online payment processor actually save you time instead of creating extra tasks? Go to http://acceptiva.com/news.html to learn more.

A sales manager who reads this newsletter regularly suggested the topic for this issue.

“I read your news letter weekly, and would like to see some information, or suggestions that deal with overcoming sales objections, such as cost, and ‘no time right now.’ Thank you and I look forward to further readings in the future.”

Time and money are the most critical resources that everyone has – whether we are speaking of an individual or a business. Both time and money are abstractions that measure the amount of resources that we have available to expend.

So if someone claims “I don’t have the time for this right now” or “I’m sorry I just don’t have the money”, then what this person is really telling you is that you have not justified why they should expend their precious resources on what you are selling.

If you dig down into any “sales objection”, ultimately you will find either time, money or both at the root.

Let’s take a look at a few common sales objections:

  -That looks too complex for me          = time.

  -We don’t have any budget money left    = money

  -We already have a supplier for that    = time and/or money

  -I don’t have the staff to support that = time + money

  -Sorry, we don’t need that              = time and/or money

  -I can’t talk with you right now        = time

  

In all of these examples, the seller hasn’t demonstrated his worth or value to the prospect. So if someone gives you a sales objection, then he is really telling you that you haven’t shown him anything of value to him. You haven’t justified to him why he should expend his precious resources on you.

If you’ve read any sales books, or been around selling for awhile, you might be thinking “sales objections are great – each sales objection moves me one step closer to closing the sale.” I know that I was taught that years ago in IBM Sales School.

In traditional selling, this is true. Your supposed to get in there, make your pitch, and fight down the sales objections until you get an order.

Consider an alternative – just avoid sales objections completely.

It is possible.

How?

Find out the pains, desires, and values of the prospect. Show them a solution involving your prospect/service that meets these. Find out precisely what they want by asking questions.

Use this knowledge to propel the sale forward. Propel them toward what they want to have, eliminate, or most value. The prospect will sell themselves, and will be able to resolve their own “sales objections”.

If you think about it, your easy sales were like this. Your hard ones, or the ones you lost, weren’t.

I want to make one more point here while I am thinking about it. Finding your prospect’s pains, desires, and values is somewhat different than discussing and presenting benefits to him. Benefits are great for marketing and online selling (because these are non-interactive).

Use benefits for your marketing and online selling efforts. Use questions to determine the true pains and wants when selling. Find out what people and businesses want to avoid, have more of, or desire most. Then show them how you can help them get what they value most.

© 1999-2004 Shamus Brown, All Rights Reserved.

Shamus Brown is a Professional Sales Coach and former high-tech sales pro who began his career selling for IBM. Shamus has written more than 50 articles on selling and is the creator of the popular Persuasive Selling Skills CD Audio Program. You can read more of Shamus Brown’s sales tips at http://Sales-Tips.industrialEGO.com/ and you can learn more about his persuasive sales skills training at http://www.Persuasive-Sales-Skills.com/

Several months ago, I was working in New York State with a group of salespeople. During an exercise designed to identify what obstacles stood between the sales force and their number one prospect, a salesperson related a story about a major prospect who wouldn’t give him the time of day. The problem as the salesperson described it was that several years ago the company’s credit manager suspended the customer’s credit privileges because he was not paying his invoices on time.

As a result of the credit manager’s action, the decision maker swore that he would NEVER do business with my client again. The salesperson’s question to me was, “What do you recommend I do to turn this prospect’s thinking around?”

I don’t believe I have ever conducted a sales training program where someone didn’t offer PAST SINS as a key obstacle to doing business with a key prospect, so I know that this objection is prevalent in just about all markets.

So what are past sins, you may be thinking. A past sin is something that someone in your organization — not necessarily a salesperson — did perhaps several years ago that offended a customer, and in an attempt to get revenge, the customer made the decision to never do business with your company again.

A suspension of credit privileges can certainly sting; such action can certainly be embarrassing for a customer, but is it reasonable and logical to suspend all dealings with the offending company — FOREVER?

Well, in my opinion, of course not. But then again, we’re not dealing with a decision I made. We’re dealing with a decision maker who is a grudge holder. We’re dealing with someone who perhaps doesn’t know how to reverse his rather rigid position and while doing so, save face.

Haven’t you been guilty of making a similar statement? I know I certainly have. Just a few months ago I had a bad experience with a local camera shop. I had purchased a small camera that had a design defect, but because it was out of warranty, the camera shop said that it would cost more to have it repaired than it would cost to buy a new camera. So I took their advice and purchased a new camera.

After about three months had passed, the LED display clouded over on the second camera to the point that it was illegible. When I took the camera back to the camera shop, they told me that I needed to bring in my receipt or the manufacturer wouldn’t accept it. I looked in my receipt file, but I couldn’t find it anywhere. I did bring them my American Express bill that showed the amount and date of the purchase, but the manager told me that I had to have the original receipt or his hands were tied.

“You guys are a national chain,” I said in an attempt to persuade him to help me out. “Couldn’t you use your clout with this manufacturer (Canon)?”

“Nope, without an original receipt, I can’t help you.”

“I’ve done the last business I’ll ever do with that company,” I told my wife.

So I can certainly relate to how the customer felt when his credit privileges were suspended. I’ve been there, as have many of you reading this article. But the question is how do you deal with customers who have stayed angry for years?

Try this approach:

Step 1: Do your dead level best to divert the prospect’s anger away from your company and onto the specific individual who offended the prospect. It wasn’t the entire company that made the credit decision, it was one person — the credit manager. If the offending employee is no longer with the company, it makes the job a lot easier.

Step 2: Say something like, “I’m a human being. I’m also a salesperson. I make my living selling my company’s products. Please don’t penalize me for something another human being did to you.”

Step 3: Compliment the customer by explaining to him what a key “player” he or she is in the local market. Explain that your company is a major player, too, and that it seems reasonable that two major players would be better off burying the hatchet than they would allowing a single incident to fester to the point that the two companies can’t do business together, making you both lose out on potential win-win opportunities.

What you’re doing is playing upon his ability to be “reasonable.” But still to “save face,” it’s usually necessary for the angry customer to become convinced that there’s something in it for him if he does bite the bullet and acquiesce.

Is there any guarantee that this approach will convince the angry former customer to forget his vendetta with your company? No, there is not. There are few guarantees in sales, but this approach sure beats doing nothing.

As salespeople, we are paid by our companies to be persuasive. It’s our job to deal with customers at all levels and in all sets of circumstances.

If you have a prospect that is no longer doing business with your company because of a “past sin” that someone in your company committed at some time in the past, you might want to give this approach a try.

If it works for you, please send me an email to Bill@BillLeeOnLine.com with Past Sins in the subject line and fill me in with all of the details.

Bill Lee is author of 30 Ways Managers Shoot Themselves in the Foot ($21.95) and Gross Margin: 26 Factors Affecting Your Bottom Line ($29.95)plus $6 S&H for the first book and $1 for each additional book.

While heading home at day’s end, you begin reflecting on a coaching meeting you had earlier that day with an employee, Chris. You hope that, this time, you finally succeeded in getting her to understand the importance of spending less time in disruptive socializing in the office and more time elevating her performance. If not, you feel that your only remaining alternatives are to give her a poor performance evaluation or demotion or may even fire her. You’re reluctant to do either of the first two things because you know these would disrupt the positive work relationship you’ve had with Chris. And you don’t really want to fire her. On the other hand, you’re running out of patience; this is the fourth time you’ve said something to Chris about the situation. Admittedly, the first few times, your comments may have missed the mark because you gave her only some casual feedback. But about a month ago, you held a formal coaching meeting with Chris, in which you discussed the situation in depth and came away thinking that she understood the need to change her behavior. In fact, she did change. But after a week or so, she was back to her old behavior.

Sound familiar? The most critical step in the management coaching process – getting an employee to agree there’s a need for improvement – is usually not well understood or well executed. Without that, there’s little likelihood of any permanent change.

Not a chewing out

As the use of coaching rises, so does the confusion over what it is and isn’t. I define management coaching as an interpersonal process between a manager and an employee in which the manager helps the employee redirect his or her performance while maintaining mutual trust. Coaching differs from feedback, although feedback is part of the management coaching process. Feedback is given by a manager or supervisor in response to a specific event or situation; coaching focuses on a pattern of behavior along with strategies for growth and development. Coaching is all about the art of turning situations and events into learning and growing experiences. Examples include missing several deadlines in a short period despite being reminded that meeting deadlines is important, continuing to arrive late for work after being told tardiness is not acceptable, and continuing to interrupt others in spite of receiving feedback that such behavior isn’t appropriate. Management Coaching is not “chewing out”, taking to task, or threatening employees to try to improve their performance. Those tactics can work, but the results may be worse than the original problem. Such approaches tend to make employees passive-aggressive. They will walk the line and do nothing more or less than what is asked.

In general, a management coaching meeting should take place only after an employee understands clearly what’s expected and has received feedback at least once that his or her performance is not what it could or should be. However, in some cases, certain significant events may be the focus of a coaching meeting, before they develop into a pattern of behavior. For example, a manufacturer decided that any safety violation – no matter how minor – would be addressed in a coaching discussion and, if significant, could lead to formal discipline.

Coaching involves these critical elements:

• A two-way dialogue
  
• A series of interdependent steps or objectives
  
• Specific coaching skills and strategies
  
• Courage and conviction
  
• A personal sense of humor
  

The management coaching process has two primary areas of focus: helping an employee recognize the need to improve his or her performance and developing an employee’s commitment to taking steps to improve performance permanently.

While all of the steps in the C.M.O.E coaching model are important, the most critical one is often not understood or carried out effectively – getting an employee to recognize and agree that there is a need to improve his performance. That step is equally important whether an employee has a specific performance problem or an employee is an average performer who could do better. Without a felt need for change and greater self awareness, there’s little likelihood that any improvement will occur or that it will be permanent.

The Center for Management and Organization Effectiveness (CMOE) seeks to improve individual leadership and team member skills within organizations.

For professional information on management coaching, visit CMOE.

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