Increase Sales Blog

Posts Tagged ‘loyal customers’

Have you ever heard the child’s or nursery tune – Oh Where Oh Where Has My Little Dog Gone? I was reminded of this tune after reading this post about 40% of the workforce is looking to change jobs in the Fall of 2010. Given the instability of the current US and probably world economy not to mention the high unemployment rate (almost double of what is was in August of 2001), this is a significant percentage.

Then another posting about banning job descriptions seemed to only add to this employment pot of discontentment. So what is the answer?

Possibly from the 30,000 foot view, why not try consider having a Chief People Officer sitting at the C-Level or C-Suite executive table. How can any company or organization say that people are their greatest asset when their actions demonstrate just the opposite?

When we have a Chief Information Officer, a Chief Technology Officer, a Chief Operations Officer, a Chief Procurement Officer, a Chief Financial Officer and a Chief Executive Officer all sitting around the table and ignoring human capital (human resources) what makes all of that happen is almost as ridiculous as having an agrarian educational system in a 21st century global technology driven economy. Oh, wait, I forget the U.S. is still operating its K-12 educational structure on that farming economy. Please excuse the digress.

Until people are recognized for the value they bring to any organization by having an authentic voice through that Chief People Officer and therefore human capital is recognized by all the other executives, you will still have people anxious to leave and this is beyond the current control of human resources since they are not at the executive table. . Bottom line retention in employees provided they are performing is just as critical as retention of external loyal customers who are also high performing because of their repeat business. By taking such action will not only demonstrate innovative leadership, but will the organization in the black and not the red.

First, in full disclosure, I must tell you that my husband and I are Ford automotive customers and have been for years. My very first car was a 1968 Ford Mustang.

Second, I am impressed by businesses and their leadership that actually get it when it comes to rethinking and doing things differently if they want to keep their loyal customers, their shareholders and stakeholders happy.

Third, I vote with my income by supporting those organizations that live their vision, values while still achieving their mission.

Fourth, if you thought PGA was connected with Professional Golfing Association, you are possibly in the wrong blog.

With that said, I was delighted to come across this article in the Wall St. Journal about the CEO of Ford Motor Alan Mulally.  Here is one rare executive who understands the purpose of business and is making that a reality. The article quotes Mr. Mulally as follows:

“It’s back to Henry Ford’s original vision, isn’t that cool?” gushes Mr. Mulally, reaching for—you guessed it—yet another chart. “It’s all about producing products people want,” he adds. “Our goal is PGA.”

PGA is short for Profitable Growth for All.  What an unusual concept especially in today’s market place where the profit word is almost “dirty” and growth well that just can’t happen given the economy and all. Mr. Mulally is returning to Henry Ford’s original vision.  Possibly others could do the same.

For Henry Ford got it as well.  He understood the purpose of business is to attract and then retain customers. Of course his insistence on any color as long as it was black probably was one of his blinders. Yet, 100 years later, Ford is the only domestic vehicle manufacturer to show a profit and may again be the #1 manufacturer. These results are because of some sound, not pie in the sky, business behaviors.

Sales must work with operations to demonstrate a profit.  This is simple math.  Sales less costs equal profits.  If you too wish to increase sales, then see how you can deliver what your customers want while providing quality, affordability and value.

Henry Ford got it over 100 years ago and you can get it today.

Marketing is all about attracting attention (positive) with the goal to increase sales.  One of the best ways is word of mouth (WoM).  A posting late last year to this blog Return on Behavior said that spending on WoM in 2008 rose by 14.2% to $1.54 billion in the US despite the recession. Additionally, there is a prediction that this figure may almost double to $3 billion by 2013. (Source: PQ Media and WOMMA)

Wikipedia defines Word of Mouth (WoM) as the passing of information from person to person. In modern marketing, WoM is all about getting that buzz, spreading your marketing message like a virus (viral marketing) where very quickly everyone knows about you. This is one reason why having search engine friendly websites to including social media into your overall marketing action plan goals are so critical in today’s technology driven society.

WoM marketing is also directly connected to building customer loyalty. When your loyal customers tell others about your products or services, then they are spreading the good news that is priceless. Of course, you may need to encourage them through reward or incentives programs such as frequent fliers miles, customer service satisfaction online surveys with the promise of a 15% coupon (thank you J.C. Penney), etc.

The encouragement practice is newer as WoM always existed. Now innovative marketers are looking as to how to expedite that buzz. To learn more about this newer marketing strategy, you may wish to read Word of Mouth Marketing: How Smart Companies Get People Talking by Andy Sernovitz.

Finally, WoM helps to strengthen your own brand. In a highly crowded and competitive marketplace, you truly must Be the Red Jacket in a Sea of Gray Suits and WoM helps you do just that. Sales Training Coaching Tip: Remember, you must continually strive to be ahead of the flow and not just with the flow.

Domino’s Pizza has engaged in a mea culpa marketing campaign by honestly admitting their crust stinks along with their sauce and overall take out pizza product. When something does not work and a lot of people know it does not work, it is probably time to let everyone know.

Beyond the standard observations of being a dollar short and a day late, this is another opportunity to learn how to improve your marketing message in your ongoing quest to increase sales. Sales Training Coaching Tip:  Listen to your customers, potential customers and centers of influence.

With Toyota recall  of another 500,000 vehicles, this time this auto giant appears to be getting ahead of the bad news instead of ignoring it. Of course some might argue, they crunched the risk numbers and concluded the potential law suits would be greater than the cost of the recall. Sales Training Coaching Tip:  If crunching numbers specific to risk for poor products or services is your practice before you take action, then this suggests whatever values the company espouses these are hollow words.

Both of these businesses want to retain existing customers and build loyal customers not to mention increase existing market share. This is the goal for any business from the micro single office home office to the Fortune 100.

Now is the time to survey your customers and ask them:

• What they think about your products or services?
• Are you easy to do busy with?
• Are you responsive to all types of requests?
• What could you do better respective to products, services and processes?

Mea culpas happen because those in management were not listening.  This type of behavior is 1000% reactive and not proactive.  Since the purpose of marketing is to gain attention (positive) and to build rapport (positive), then now is the time to ensure you are doing just that after delivery of your products and services.  By not taking that action, you may be in Domino’s or Toyota’s position.

P.S. Remember if you are selling Toyotas, do not drive away in an Audi.

The recent Toyota recall of 5.3 million vehicles with more to come has tested the customer loyalty of Toyota products.  Even though the problem of sticking gas pedals appeared to be known for a while, the company did not give it the necessary attention.  In time, this little customer service nuance became a customer relations disaster.

Public relations to car industry experts continue to discuss the long term customer loyalty effects. Some will say this is just a bump in the bigger picture of Toyota’s loyal customers.  My sense is Toyota has a far deeper  problem that being this one:

Executive Management does not believe in their products.

How do I know this?  The CEO does not drive a car made by his own company.

Can you imagine for a moment what would have happened if a Ford CEO drove a Lexus or a BMW to a major news conference discussing a significant recall?  What message would that had convey? Would you have faith in anything being said by that individual?

When business owners to CEOs (management) do not support their own products or services, this sends a very direct message to their customers both internal (employees) and external (paying clients). Additionally, when significant customer service issues are ignored, these behaviors will come back and bite you on the you know where.

Yet there is an important lesson to be learned here. If you are the small business owner, chief executive officer, sales manager or sales person you must be “walk your talk.”  Saying your products, services or your company is the best is one thing. However, taking action of your talk is another.  The CEO of Toyota failed to “walk his talk” and that will be remembered for a very long time.

This debacle of customer service only reaffirms why businesses and professional sales people need to have a clearly articulated and communicated values statement within their overall strategic action plan that they actively demonstrate.

Toyota has slide show on their website devoted to their values. One slide makes this comment “Want more reasons to believe? Look around.” If I was a Toyota customer and looked around seeing the CEO driving away in a black Audi, would I have faith in the values of Toyota, their products or their services? I think not!

P.S. Read my weekly business column today.

Yesterday’s posting discussed how talk radio gets education based marketing. Today, this posts explores “What does a compelling marketing message sound like?”

Would you like to be in the 30% who realize 8 hours of pay for 8 hours of work specific to your employees productivity or the 70% where you employees are draniing your profit coffers? Sales Training Coaching Tip:  Cite your sources such as: These statistics are from a fairly recent  Gallup Poll

To be able to educate does demand your know your:

• Products or Services
• Industry
• Industry of your target market
• Target markets or markets
• Current potential qualified customers (prospects)
• General market place trends – Local, regional, state, national and international)

Sales Training Coaching Tip: Make sure you have a written marketing action plan along with a written executive marketing summary. This will help you work smarter not harder.
The other implicit demand is to focus not on your or your products or services, but your potential customers and his or her needs.

This shifting may result in you being uncomfortable especially if you have engaged in Product Based Marketing. Yet this traditional approach is beginning to die on the vine even for multi-billion dollar organizations.  For example, Pespi has announced it it stepping away from its past marketing activities during the Super Bowl game and now is pledging $20 million in a social media education based marketing campaign.

One reason for this change from product based marketing to education based marketing is because people are literally and figuratively overwhelmed with data, information and knowledge. Potential customers do not have time to scour the Internet, read the lastest journals or attend local economic seminars.  They are looking to others to help them and if you can provide viable, succinct information without misleading them using a compelling message then you have their attention.  In other words, you are now the Red Jacket in the sea of gray suits.

Maybe you are thinking “I don’t have time to educate!”? Let me ask you one question: Do you waste at a minimum of 12 minutes a day between 8am and 5pm? Given that research about productivity and time management suggests the majority of people waste at least 1 hour a day, then you probably have the time. This is not a case of time management, but rather self management. And that is the subject of the next post – your ability to stay on task, to out sell, to be the top sales performer.

Talk radio especially conservative talk radio gets education based marketing probably better than any industry. Regardless of your beliefs or political leanings, you need to get out of your own way to truly understand and appreciate how this industry secures loyal customers (listeners) and consequently stuffs their piggy banks.

By providing education and then actually inviting their listeners to “check it (facts) out” these loyal fans keep coming back for more and more. Bottom line the more people who listen the greater advertising revenue generated and the goal to increase sales is realized.  Now if your target marketing fits the demographics this becomes a win-win for everyone. Sales  Training Coaching Tip: Without a written marketing action plan including an executive marketing summary, you will be working harder not smarter.

I realized the impact of education based marketing when channel surfing and hearing comments from the listeners (loyal customers some who patiently waited a couple of hours to speak with the host) like this:

• “You have educated me.”
• “Your show is the only one I listen to because of all the facts you share.”
• “Your provide the best details to complex issues.”

Again step away from your own beliefs and re-read these comments. People listen to talk radio because they want to be educated, they want to learn. This approach within the overall sales process has an added benefit – loyal customers who engage in repetitive behaviors.  Maybe this is why Rush Limbaugh can charge as what he calls “confiscatory rates.”

So if you wish to increase sales, construct a compelling message that educates. Sales Training Coaching Tip:  Remember your facts can be checked out (thanks to the Internet) so be careful in exactly what you say. Come back tomorrow to read the rest of this post.

Are you where you want to be? In business and especially in sales, the answer is usually No. Most people want to increase sales, to move their businesses to that next level just like Dorothy did in the Wizard of Oz.  She wanted to get back to Kansas. To make that so for those in business usually requires more revenue and sales is the place to start.

So why are you not where you want to be? Are you facing some of these obstacles:

• Time
• Leads
• Referrals
• Selling Skills
• Marketing skills

This blog will be dedicated to helping you to unlock those obstacles keeping from you being the successful sales professional. The ultimate goal is to remove the confusion and for you to gain clarity around this big picture of sales and how you can increase sales, build loyal customers and have some time for family and friends.

As a published author on sales, Be the Red Jacket in a Sea of Gray Suits, The Keys to Unlocking Sales Success, author of over 1,500 articles, weekly business columnist and contributors to numerous journals and newsletter, my goal is to share succinct and helpful information.

Sometimes messages will be repeated because only after hearing something numerous times will it sink in. For example, put your sales goals to writing. Many sales pros know this, but still fail to do this. Or how about follow-up on all sales leads? Again, knowing and doing are two different animals given what sales research tells us about how many leads are left hanging on the vine to whither away and die. (50%).

Act on your ambition to do more for your company. Become less involved while becoming more involved. The best way to accomplish all your goals is to get help in managing the process. “The process” is what keeps most great idea men and women from success. When you are too busy trying to keep up with all your management tasks, what happens? “You lose your edge against the competition”. Invest in your own expertise. Get a higher return on your idea investment when you are prepared to handle the management tasks of a your company more effectively.

Enlist the help of professional career training and process specialists Leanne Hoagland-Smith, author of BE THE RED JACKET IN A SEA OF GRAY SUITS and this blog, to assess, design, and take action on what is keeping you from growing your business.

Please leave your comments and share this site with others who you may feel will benefit. As always, Good Reading, Good Selling and Good Living.