Time is Money -- But It's All in The Timing

We are all guilty of putting things off. Putting off tasks may free up time, but too often it can cost us money too. Real money. Here are a few examples of how time can directly impact our business, our customers' experience with our business and the sales growth we seek. I bet a few may surprise you.

HOW LONG? Time to acquire a new customer -- In my business, it may take months to acquire a new client (not just a prospect). Sometimes it is just a few weeks. Each customer is hard won and fought for. That "fight" typically occurs for many of you in the form of word of mouth or some form of advertising. What are you specifically doing to keep these customers you have acquired? Screw up their experience and they're gone. Few will stay loyal as a competitor offers a lower price or promises a better experience. Think about the time it would take to replace those customers and the cost to do so. Ouch.

HOW LONG? Time to irritate a customer -- The phrase, "Gone in 60 seconds," comes to mind. But you may not know it. Why? Because for every annoyed customer who confronts you in person, via phone or via letter, there are 6 more who wanted to but didn't. That is why we must always be on our guard, be responsive, and be accessible to our customers. We must always be ready to fall on our swords, so to say. How many times have customers contacted you in the past 90 days to complain? Multiply that by 6. Now multiply that by the typical dollar amount they each spend with you each year. That's the money at risk. Real risk. What will you do to minimize this?

HOW LONG? Time for an effective ad to work -- This is a great question. Let's assume the ad is well written -- conveys a unique selling proposition, conveys how you are different, conveys a "call to action" of some sort, is well laid out by a pro and in a media channel for the appropriate audience and visibility. The answer? Perhaps as much as 6 - 9 months. When I tell people that, well, let's just say I wish I had a camera. They don't believe it. And then I ask them about their own experience with advertising. "Terrible," "poor," "crap," "don't know." Keep in mind that most business owners don't even bother to measure where their business comes from in the first place. Consider this: just because a zero-result ad has been running for several weeks or months does not necessarily mean it is a dud. Simply changing the headline's copy or size may radically energize an ad. Yet, the biggest risk is not the ad's potential for failure, but rather the GAP which can result once the customer sees the ad vs. the customer's experience with the business first hand. It's true. What's been your experience?

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Think About This: Over the past 12 months, how much time have you put into reviewing these sorts of topics? Probably not enough, right?
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HOW LONG? Time to groom a new sales person -- 12 months. Maybe more. This is because people think they know how to sell, their recruiter thinks they know how to sell, and then after 90 days the results roll in. And then everyone is so surprised! "Well, he interviewed so well." "Her references were glowing." The problem is that salespeople have to adjust to a new environment, new team, new product, new service, new processes, new forms, new geography and then still may not be a great closer, or able to build rapport. The new sales person, even after mastering all of what I've mentioned so far, may be a poor project manager or be poorly organized, which will impact the customer experience as much as anything else (more usually).

HOW LONG? Time to ask for a referral -- When the customer says, "This is so great! I really appreciate what you guys did for me." That's the moment. Then, without stuttering, without hesitation, immediately say, "I am so glad to hear that. Can you think of a couple of friends or family who would also benefit from (insert your product/service). When they say "Yes," then say, "You know, I would love to meet with them. Could I ask you to give them a call tonight and just tell them about your experience and ask if I can call them later this week?" 99% of the time you will hear, "Sure." Two days later, give a call to confirm and get the names/numbers. Now when you phone the prospects, they are already 80% sold on you because your client made it happen. Sweet.

HOW LONG? Time to ask for the sale -- When the time is right. Seriously. Could be 5 minutes or a couple of hours or days or weeks into the sale. Every sale is unique. However, the universal answer is: anytime you hear, "This looks/sounds/tastes/feels/smells" great! Of course this assumes you have presented or at least discussed the total solution (don't sell anything naked! -- that is, by itself). Sadly, most salespeople do NOT ask for the sale. Fear has a lot to do with it. Selling from their own wallet or purse can be a factor. Also lack of confidence, lack of practice and lack of training can result in "no sale." How effective are your people at asking for the sale? Here's a stat for you: a typical retailer has a 60% stall rate (customer did not buy anything during the visit). What's your stall rate? What will you do about it?

™© 2007 All Rights Reserved Perception Lab, Inc.

The Best Help for Your Sales Team

As I speak with business owners across the US, one of the things I have found most useful to teach is the Sales Journal. Not a device for measuring sales metrics, but rather to capture those, "Oh, if I could only have spoken with you before this customer came in!" sort of thing. Why? Because salespeople have good days and not so good days. There's always the, "one that got away" story, or the tire kicker or the customer on a "mission" that everyone wants tips on how to better handle next time.

You may be thinking, "Yeah, but I'm an attorney, so doesn't apply to me, right?" Wrong. Every PA, service provider, etc. "sells" themselves to their clientele one way or the other. Most of the time it is just as simple as, "We liked her." Or, "I just wasn't comfortable with him." Even if everything else is equal. Isn't that a hoot? In order for the customer to say "Yes," many deals actually just boil down to a gut feeling in the customer's stomach.

Okay, so how do your salespeople get the right gut feeling to occur in your customers? Your salespeople have to practice and be very comfortable when they interact with customers. Sounds so simple. Yet, any awkwardness or stuttering by the salesperson will doom the sale. Your salespeople need to practice. They need coaching. They need insights and tips. Ask yourself this: do your salespeople tell you their stories? Are they sharing with you their sales struggles? Their sales fears? Their "tried it and it didn't work" sales stories? Hmm? Probably not. Nope. That's because most bosses or owners only care about results and not the triggers to growing those results. And many business owners rationalize this by saying something like, "Well, salespeople have to learn and if they are slow at it, well, it's their commission check that suffers until they get it right." Wow -- what an attitude.

I have a great job: I get to travel, speak to groups, interact with executives and conduct meetings every week. I speak to small groups, large groups, private groups and public groups, and I can promise you that when one person's hand goes up to ask me a question, almost always there are several more that follow. Why? For lots of reasons: people just don't ask questions even when they know they should. Statistically we know that for every hand that goes up, there are probably 6 more that want to, but don't. Don't believe me? How about a flash-back to your high school algebra class. Ouch. But that was then and this is now and now is about getting better at selling.

So, if you can get your sales team to perform better, they actually start winning more business; and who wins? The salesperson? Sure. Their commission checks explode. What about the business? HUGE! And the more salespeople who get with the program, the more the business can grow. And not just because of the one time transaction with the customer, but due to more opportunities the customers have to experience your business, and your people. A great competitive edge. Sweet.

What about you and your team? How well do you know the struggles of your sales team? How plugged in are you to helping them to overcome challenges and help you grow the business (and their commissions)?

As I concluded one my client's training sessions, the feedback was, "POWERFUL!" You see, I typically meet with my client's sales team once a month or every other week, as appropriate. They know how to better handle sales situations because of the training I provide them, but becoming comfortable doing "it" in their own skin took time. And they are still getting better day after day, week after week. For sure there is a period of awkwardness and learning. That's normal. I've found I can easily accelerate this curve however by asking the salespeople to keep a journal and that's where we start at the next session. That way I am 100% sure I am giving them value and the specific answers they need to overcome sales situations the next time they experience them.

Take time today to connect with each person in your business/practice who sells or helps develop your business. Have them keep a journal, and then spend 30 minutes each week reviewing their notes from the previous week. Provide them with specific tips on how to improve. Watch your business bloom –– a beautiful thing.

™© 2007 All Rights Reserved Perception Lab, Inc.

Fly On The Wall

You work hard. You have goals and action plans to grow you practice or business in spite of the economy and tight cash. And then ... your own personnel unknowingly undermine your plans by NOT being the walking/talking company representatives they should be.

Here's a typical observation from the field. Recently I was in the waiting room of a very successful construction company; along with me were two window manufacturer reps. They were chatting as I entered and continued to talk about how best to sell and that they should never talk down the competition to make their own product lines stand out. I guess these yahoos didn't believe such guidelines applied to their own company. These same guys began talking down their own product line right in front of me. Unreal. I couldn't believe it. On they went -- the weaknesses, lack of R&D, poor support -- on and on it went. Ironically, the construction company is their client and the client's receptionist was easily overhearing the conversation, just as I did.

Ouch.

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Think About This: How are you tracking the business results generated from your promotional activities?
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Now, these guys had no idea I was listening to them closely. They should have known as I do not own a cloaking device!

Do you recognize this sort of thing? Have you seen it in your own business? I swear I've observed this same kind of thing in medical offices, automotive repair shops, banks, retail stores, restaurants and salons. You probably have too. How do you feel? Awkward, right? Because it is! Not only because of what was spoken by the employees but because they don't realize what they are saying and the damage they are causing! There's no shame, no embarrassment, no regret, no, "sshh shhh someone might hear us." Nope.

Bottom-line: I can't think of anything much worse than having your own people kill business and ruin brand with ignorance. How well does your staff measure up? Here's a top 5 check list to see how they rate:

1. Do all employees really know the company's mission/vision and act on it each day? (many have no clue)
2. Do all employees know the company's strengths and share some of them with each client? (ditto)
3. Have your employees been to a client-alignment workshop (what to say/do when preparing to meet the client)?
4. Are your employees held to competency standards regarding their position and your brand?
5. Do you formally review the above 1-4 items with your employees one-on-one each quarter for reinforcement and Q&A?

Take action and decide to not let your employees accidentally stain your brand. Not with you, not with each other, not with vendors and certainly not with clients. Be the fly on your own wall.

™© 2007 All Rights Reserved Perception Lab, Inc.

When Your Business Needs Professional Help

Perception Lab, Inc. –– The secure way to grow your business℠

We've all experienced this: your coughing and wheezing; you go to the doctor. Your car suddenly refuses to start; you take it to the dealer. Like many folks, you've tried to loose weight and can't; you join a gym and work with a professional trainer. Your tooth is really beginning to give you trouble, and so you book an appointment with your dentist. Sounds about right, right? Right.

The common line in all the above was this: at some point, you figured it out that you needed professional help. In most of the cases I cited, it was about real physical discomfort (or just pure frustration). But what about your businesses? How long will you put up with your situation's "pain?" It sounds funny, but for some of you, you haven't suffered enough! That is, to realize you need professional help. Read on.

What form does "professional assistance" take with small businesses?

Ah, that's a GREAT question. So how do you tell if you're in need of professional assistance? Hmmmm. Very subjective territory. It's difficult to say UNLESS one has worked with many business across the US from a wide variety of industries and who is able to predict the likely scenarios which warrant such assistance; in this case, that would be your humble ezine consultant (me). :-)

Here are the major symptoms that indicate you are ready for professional assistance. But that's too easy. Let's a make it interactive: I've given you the top 9.5 reasons for seeking professional assistance for your business. All you have to do is read each rationale, if it applies to you, add to your overall score. So, be brutally honest with yourself, right? Right. Let's get started.

Your score is now zero. Start reading and adding (as appropriate).

1. Your business has never been professionally assessed regarding how your market views your business vs. how you want it to be viewed
If this applies to your business, add 5 to your score now.

2. You have no customer feedback data on a regular monthly basis being used to plot your business' growth strategy
If this applies to your business, add 5 to your score now.

3. You presently have zero alliances or joint ventures actively sending you new business
If this applies to your business, add 4 to your score now.

4. You have little repeat business or referrals from past clients
If this applies to your business, add 3 to your score now.

5. Your ads stink (you know it and someone has told you so) and generate little new business
If this applies to your business, add 3 to your score now.

6. You've tried as much as you know to grow your business and have had really poor results
If this applies to your business, add 3 to your score now.

7. Your people need training for customer care, account management or project management, but you don't know where to start
If this applies to your business, add 2 to your score now.

8. You thought the business was going great until suddenly your sales began to free fall and the end is not yet in sight
If this applies to your business, add 3 to your score now.

9. You do not have an advisory board OR your management team does not have expertise in growing a services businesses
If this applies to your business, add 3 to your score now.

9.5 You have zero financial buffer (no cash saved up) and sales are declining
If this applies to your business, add 5 to your score now.

Score Your Business: Add up your scores and see if your business qualifies for professional assistance.

If you scored 35 or better:
DOA: Your business is about to implode unless you act today! Seriously, it may be too late. Let's discuss it.

If you scored 27 - 34
Bleeding Out: You are in bad shape and need help immediately. Call me.

If you scored 18 - 26
Limping: You need help and should get started soon. Send me an email about what you have going on.

If you scored 9 -17
Sore Muscles: You're on the right track, but could easily benefit from coaching. Drop me a note about your business.

If you scored < 9
Pretty much fit. Congratulations! Call me, and we'll talk about partnering together.

™© 2006 All Rights Reserved Perception Lab, Inc.