Some weeks back, I sat in the audience with 150 or so of my close associates and strangers, listening to a presentation on the importance of business planning. The slide deck employed stunning scenes – beautiful naturescapes with few titles or bullet points. One slide showed a broad, slow-moving river under a bright blue sky. You could barely make out the speck of a rubber raft floating lazily downstream. The second slide was a close up of the craft, caught in class 3 rapids, complete with white-knuckled rafters. The third slide showed the steep waterfall. And the message – you must have plans to turn your company around in these troubled times and row together to get back to calm waters. Those who do will lead.

Social CRM is essential to avoid going over the edge of the waterfall.

It’s 4AM – don’t ask why I’m up @ this hour. My mind is racing with thoughts, questions and ideas. Random things mostly, like how did English become the most used language in the world? It is one of the most complex languages with more exceptions and contradictions than rules. Take the word “Bow.” Is it pronounced BOW, as in Bow and Arrow? Is it pronounced BOW, as in the bow of a canoe or the courtesy you show to someone of honor or royalty? Oh, wait, what about the word bough, as in a branch of a tree. That’s pronounced the same way. It’s a confusing language with seemingly endless twists and turns.

And how well you understand the words and choose them to communicate your thoughts, dictates how well you will exchange ideas and information. And isn’t that the very basis of selling? It’s how effectively you conduct dialogs with others.

Ronn

You know the famous Einstein definition of insanity, don’t you?

Like so many others, we have been trained as a professional sales people. We attended the classes, read the books, listened to the tapes and bought the CDs. They taught us how to ask the questions, focus on customer needs and make stellar sales presentations. Sell the benefits, not the features. Some of the best, most highly recognized experts – Zig Ziglar, Gitomer, Hopkins, Rackham among them – have enjoyed great success telling us how to become better at sales. They all have one thing in common, too…the tactics and methods they teach are well known to our prospects. The people we sell to have learned what we do, and they have figured out how to turn that to their advantage. Our customers and prospects know what we are doing – Many of them have read the same books and attended the same seminars too. So how do you stand out from the competition? How can you avoid doing the same old thing over and over again, hoping for a different result?

There is a different approach to selling that I am just beginning to investigate. It is a selling system that, at first glance, is a bit counter-intuitive to what I learned from tapes, book, and seminars over the past 20+ years. Does this system work? Stay tuned. I will update this Blog as I continue to dig deeper into this. But at first glance, it is worth investing my time and effort to understand this fully.

I sat in on a Webinar today. The topic sounded very interesting. It was part of a series of professional development presentations by a well-respected organization. It looked like a good investment of my time.

What a disappointment! The first slide should have tipped me off to lower my expectations. It was a garish background with a 7 or 8 word Title – all in CAPS. There were at least 8 bullet points each with 10 words in small fonts. My ears were working on listening to the presenter ramble on as my eyes were scanning all the words on the slide. My brain was trying to resolve what my ears and eyes were doing. Two minutes into the first slide I gave up.

Wait! It’s Communications 101, isn’t it? You’re a highly respected expert, aren’t you? You do this for a living. Do you really get paid to do these? Don’t you know how to give a good presentation?

Okay, calm down. I’m committed, so give it a chance and see what … NOPE! Second slide. More non-stop Blah, Blah, Blah. Same noisy background. Same overload of bullets, each with too many words in too small a font. You have officially lost me. I tried, but this is a waste of time – yours, mine and anyone else with a pulse that signed up for this.

But, wait, there is a place to post a comment. I wonder if I should ask something like did you ever review this presentation before you gave it? Or maybe I should ask when was the last time this presentation was put on a word diet? But I suspect they would know who posted such a crass remark or trace it back to me. So I settled in and paid half attention. 45 grueling minutes and 30 slides later, are we done yet? They asked for questions and, here’s a shock, no one submitted any.

I did notice one thing – The entire presentation was a monologue. The speaker talked at the audience and never attempted to engage, never asked a single question, not even a rhetorical one Asking questions is really a simple thing to do. It is a very effective technique for involving an audience, of maintaining a dialog and keeping their interest.

But more on that later, the boss is on the line. She wants to know what I thought of her presentation. Should I tell her or not? What do you think?

Have you ever watched kids? Your own, the neighbor’s youngsters or even the ones on TV? They are natural born sales people, especially the younger ones, say ages 3 to about 6. They have unbridled curiosity, loads of energy and boundless determination. Just watch them. You’ll see what I mean.

Tell a child something, and they will ask you “Why?” It’s almost automatic, isn’t it? Give them an answer, and what do they say? “Why?” Answer again, and, you guessed it, they come back again with “Why?” Now, if they ask you for something, and you tell them “No,” what do they say? Yep. “Why?” Explain it to them – doesn’t matter if you give them reasons or simply say “No” again, and their response… “Why?” Tell them “No” again, and you know what they are going to do, don’t you? Yep, they’re going to move up the organization and find someone else to ask – most likely your spouse or your partner – fully expecting to get a different answer.

Curiosity, energy and determination. They don’t mean to be a nuisance. They are not intentionally torturing you. They have a simple objective – they want to get you to say “Yes!”

Funny how we lose some of that curiosity, energy and determination as we grow up! There are valuable lessons we, as sales professionals can learn from observing kids.

So let’s see. Where were we? Oh, yeah. You were looking at your Bottom Line, weren’t you? And I was saying if you like that number, just wait, and if you don’t like your bottom line, wait. In either case, it’s going to get worse!

You won’t like this, but all those expense line items, well guess what? Rent, utilities, insurance, benefits, advertising, the cost of a ream of recycled paper for your printer. You know which direction they’re all headed, don’t you? How about taxes? Federal, State, County, Local. They all want a “Modest Increase” to fill their budget gap. Please, don’t get me started on the politics of that! So let’s do a quick calculation. If your Bottom line is what’s left over after you subtract your expenses from your revenues, and those expenses are increasing, what do you think that means for your Bottom Line? You got it! Not good!!

So, the first thing you should do to fix this is? Raise Your Prices! No, I’m serious. When is the last time you gave yourself a raise? Don’t you deserve one? Even a very modest 2.5% increase will have a dramatic impact on your bottom line. If you have invested in knowing your clients, understanding their business and adding value to their business…If you have been doing a stellar job of keeping your clients satisfied, they will not leave you. And there is the key, isn’t it?

What’s that? You can’t increase your prices, because you’re afraid your customers will leave you? GOOD! No, wait a minute before you go and read some other Blog. If you raise your prices, who are the customers that are going to leave you? Look carefully at each and every one of your current accounts. Mark the ones you think would leave you first, then analyze your profit margin on each. I’ll bet the ones who would bail on you over a modest price hike are the ones with the lowest profit margins. I’ll bet they suck up the most support time and company resources too. Go ahead, analyze your customers. Then ask yourself, what could you do if you freed up those resources that these low margin clients are taking up? Could you improve your support of your higher value clients? Could you dedicate some of those same resources to giving top notch service to a couple of new clients? More on this in my next post.

Yes, this looks like a very risky proposition. Yes, you must have a plan in place how you are going to announce any price increase. But there is nothing you can do which will boost your bottom line as quickly as raising your prices. It will show up with the very next sale you book. And what are you going to do about those customers who leave you? Introduce them to your competitors. Let them waste their limited resources on low margin clients.

In an earlier post, I pointed out that there really are only three ways to improve your bottom line – reduce your expenses, raise your price and sell more. I am certain others will say there are more options, and I am not saying they are wrong. But humor me for a moment, while we explore that last option – Sell more stuff.

There are only two places where you can sell your stuff – New Business and Clients. Okay, let’s look at your clients first. Why? Because that is where you should start. It really doesn’t matter what you sell, you should always look at your clients, current as well as past ones, first. Why? Because they know you. They bought from you before, and, unless you have done a really lousy job of nurturing a relationship with them, they will reply to your emails and they will return your calls. Your company has an investment in winning their business and, hopefully, earning their trust, so I highly recommend you start with your client base.

Get to know your clients. Learn as much about them as you can. Know what they do, who they are, and how they work. Know who the key contacts are, who their supervisors and their assistants are. Know what their purchasing process is and how their budget cycle works. Know as many people in their company as you can – from the Gatekeepers and the workers on the loading dock to the folks who review, approve and sign the requisitions. Find out everything you can about their business – is it growing, shrinking or on life support? Sure, this takes time and effort, but these folks have already bought from you. They are the folks that can offer you the best ROI on the time you invest to get to know them.

Your clients can do many things for you. They can continue to purchase what they have bought from you in the past. They may very well be buying things that you can offer them from other companies. If you have done a great job of adding value to them, they can refer you to others they know who may buy from you. You can follow your contacts as they move to new jobs with other companies. Satisfied clients can be one of your greatest assets. Make it the top priority of your entire company to make each and every client a “Raving Fan.” It will pay off handsomely.

New Business? This of course is an area every company must focus on. It means new revenues to your company, so you need plans, strategies and tactics for this business segment too. There are only two places where you can “Win” new business from – Start-ups and taking business away from your competition. It takes time to develop new relationships and to earn their trust. One tactic which nearly always is required in the sales process is references. Here’s one way you can use your client list.

“I know that your success depends in some part on my company delivering you the products/services you need, on time and at a fair price. The Top commitment of my company is to make sure that we have satisfied customers. Our focus is making all our customers comfortable that we do what it takes to help you be successful. Here is a list of all our clients. Please, feel free to contact any of them and ask them how well we are meeting that objective. And if, by chance, one of our clients tells you there is an issue that we have not addressed, I want to know about it right away.” This is the most powerful marketing you can have. Whether you are the first in the door or the last company pitching, this can win you New Business…but only if you have have “Raving Fans” as clients. Just one more reason to focus first on your customers. Happy Selling!

Many are deep into planning for 2010 – some of us are still thinking about it too! Forecasting, budgets, projections. With the continued uncertainty of the economy, does it really make sense to go through this exercise? If you find yourself asking this question, maybe you should consider the alternative.

If you don’t have a plan, then you should plan to Fail! Yeah, heard that one before, haven’t you? But the past 10 or 11 months, you have had to revise your numbers on a regular basis. Why? Because your revenues have just not met the goals. And why is that? Well, your Head of Sales says the clients and prospects just are not making purchase decisions. So. what are you going to do about that? Here are a few ideas:

1. Congratulations! At least you have the smarts to make a plan and track your performance. At least you know the value of having a budget and revising it regularly. Too many companies go through the process of planning, only to have that plan relegated to the left hand drawer, never to see the light of day. Companies that do that are addicted to business’ most addictive drug -
Hopium!

2. So where to start? Well, let’s start with what you know. Look at your most recent bottom line – Revenues minus Expenses equals what was left over. That was the bottom line. Past tense. If you don’t like it, wait a minute, it gets worse. If you do like your bottom line, just wait a bit, it probably gets worse too. Why? Things change. That bottom line was as of the last time accounting ran the numbers. What really counts is what it will do in the future. Well in this very basic form, there are some variables. The Top line is revenues – what do you expect to happen there? Are they decreasing, flat or increasing? Those are your only three choices. What are you forecasting for your revenues next year? Be honest! No fair dipping into the Hopium…you are going to be held responsible for hitting your revenue numbers. Next thing to look at, and this is where it gets scary, are the expenses. Again, what are you forecasting. Again, you have the same three options – decrease, flat and increase. Keep in mind there are lots of different expense items, and every line must be scrutinized to see what it is going to do in the coming months. Rent, utilities, insurance, and many other “normal business expenses” – you know which direction these are headed, don’t you? Salaries, benefits, marketing and many more line items. Each and every one must be carefully looked at, managed and tracked. You may forecast some of these to decrease, but recognize it takes time for changes to work through a business. In most cases it costs money to implement efficiencies and cost reductions. The good news is small changes add up. They make a difference. So plan to manage your expenses carefully.

Okay, now that you are done with that grueling exercise, again, what does your new, forecast bottom line look like? Are you satisfied with it? Hmmm?

3. If you are not pleased with the result -and like most of us, you probably are not – what can you do about it? Well, you do have a few options. First, you can sell more stuff – more widgets and services. You can close more business. Second, you can raise your price. Third, you can shut your doors. Sorry, but there you have it. Those are your options. Short of buying the competition out or hitting the lottery, I can’t really think of any more.

I didn’t intend for this to get this long…but it is really important to the health and well being of your business. I will expand on how you can approach selling more stuff and how and why you should consider raising your prices in my next post.

I signed up for a “Virtual Summit.” It sounded vaguely interesting, and I am always up for learning new things. The title, Social CRM, was something I knew very little about. Sure, I know what a CRM is. Yep, I know a bit about Social Media – I am active on LI, I have a FB account, though I rarely go there. I opened an account on Twitter, but never did anything with it. MySpace, Youtube, Mashable, Technorati, DIGG. I know what they are, but that’s about it. So I’ll spend a few minutes looking at a Virtual Summit and go back to my business, right?

WRONG Social CRM is HUGE! Maybe not yet, but it won’t take long. 5 webcasts by experts in the field, chats, case studies and white papers galore. I know I was only able to scratch the surface. There’s so much more to understand and learn. But here’s the gist – the future of how B2B and B2C work will…no IS changing. It is inevitable. It makes perfect sense. Any company who does not embrace this paradigm shift will be relegated to play catch up with those that do. Conversely, those companies that invest the resources to understand and harness the power of Social CRM and actively plan to integrate the strategies and fully engage their clients, prospects and staff will lead. They will be rewarded with increased sales, lower costs and stronger brand recognition. Not bad for half a day of learning from a web-based tradeshow, huh?

So where to go to understand more about SCRM? A quick Google search offers lots of options. One of the leading companies in the space is Lithium, www.lithium.com. They hosted the event. I joined their community and am watching the posts in their forums. There are lots of articles and blogs posted on the web too. As I learn more, I will gladly share.

Familiar question?  I’ve asked our kids this very question many times over the years.  How odd that I am asking myself this same question.  I guess it is a starting point as I focus on finding a new job.  And focus is the right word.  This is a challenge – for me and for many others.  I am hardly alone here.  The headlines and talking heads on the cable news have been shouting about the dire circumstances of the huge job losses.  To be successful at this, I must be focussed on the job – finding a new way to support my family.  There is nothing that is more important.

So step one is develop a plan, Step two is to execute that plan.  Step three is review and revise the plan. Step four is…win the PowerBall and not worry about finding a job?  Not great odds of that.  

So the plan is:

    1. Research – find out what assistance is available – online, with professionals and tapping into my connections.  I am not the first to face this, so why should I reinvent the wheel?  There are lots of resources out there that can help.  So find them, use them and learn.  

    2. Set goals/milestones – develop a detailed timeframe to get defined tasks done. Sets daily goals and arrange my time to take max advantage of  it.  Review my daily goals early and often. Ditto for the look back at what I accomplished every evening.  Arrange coffee meetings, lunches and network events. I need a resume or three, some cover letters, references, personal business cards and maybe my own website. What are my strengths, my accomplishments and my weaknesses.  What do I do well and what do I hate to do?  

I have a four pronged approach -

• Most jobs are found by referrals. So who do I know that knows someone who needs someone with skills like mine?  Find them and ask.
• Online applications and job websites – I am not a great fan of these at this point.  Do you know anyone who has gotten a job using them?  I don’t.  But they are still a resource, so I need to use them.  Social networks fit in here too – LinkedIn, Twitter, Facebook…lots of them.  Do these work?  don’t really know.  So investigate.
• Proactive target searches.  I don’t know if this works, but it makes some sense. Identify those companies that I want to work for.  Find out as much as I can about them.  Do I know anyone there? Can I arrange an interview to find out more about them, hopefully with a C-level type.  Is this an effective method of finding a fit?  Don’t know, but it’s worth a try.  
• Lastly there’s the headhunters.  I know a couple.  I need to understand what they do and whether it’s a good investment of my time or not. Find out, maybe over a cup of coffee.

And that’s a start.  There’s work to do. Lists to create. Data base tracking and appointments.  Hey, I’m a sales pro. Now I have to go sell something that I know really well.  Myself,  Wish me luck!

These are extraordinary times.  Economic uncertainty makes it very problematic to detail sales projections for the coming year with any degree of certainty.  Clients and prospects alike are reacting to this by cutting expenses and putting off new expenditures.  How can you forecast sales revenues in a climate like this?

Now, more than ever, you need to be in touch with everyone in your pipeline – past clients, current ones and prospects.  The message must be very clear – we understand your situation and we are here to assist you.  We will work with you and deliver what you expect.    The companies that use this difficult time to plan and execute ways to provide solutions and value will succeed.  Others who sit, wringing their hands with worry about how they are going to make it will not.