Sunday, September 04, 2011

Why You Need Mad Customers

Today my family ate lunch at one of our favorite after-church restaurants and I ordered "the usual." This time it wasn't cooked properly. It's a fish dish and initially I thought the fish was bad. Then I realized that the fish wasn't bad -it was still raw (and it's not a sushi restaurant!). Without going into the details, I didn't like the way the restaurant handled my complaint. They handled it poorly. I could have caused a big scene and made demands on the manager and wait staff. Instead I'm choosing to do what will affect the restaurant's bottom line the most - I won't ever go back.

Just because you don't have customers complaining doesn't mean you have happy customers. If customers are yelling at you, at least they are still talking to you and you might have an opportunity to win them back over. And they may even have valid complaints that your "silent but deadly" customers never told you.

Keep this in mind the next time one of your customers gets angry with you.

Thursday, July 21, 2011

How Not Feeding the Seagulls Can Increase Sales

On a recent trip to Panama City Beach in Florida I saw this sign, "Please...Don't Feed The Seagulls." It was posted near our restaurant table where we had a beautiful ocean view.

Guess what this sign made me think about? Yep- feeding the seagulls. I probably wouldn't have thought about throwing food out to the birds, but seeing the sign all of a sudden gave me the idea of feeding them!

And come to find out, I'm probably not the only one.

In his book, Buyology: Truth and Lies About Why We Buy, Martin Lindstrom introduces the concept of neuromarketing. Using brain scans scientists monitor brain responses to certain products and ads. In an extensive 3 year study he researched the effects of cigarette warning labels and anti-smoking ads on smokers' behavior. While smokers claimed that warning labels were effective in curbing their smoking habits, it was discovered that anti-smoking ads stimulated an area of the smokers' brains called the nucleus accumbens, also known as the "craving spot." In other words, cigarette warning labels didn't deter smoking. Instead the labels actually increased a smoker's physical craving to smoke and encouraged them to light up.

As a business trying to jazz up your sales Lindstrom's study tells me this:
  • What customers say they want isn't always what they really want.

  • A suggestion you make to a customer can have the opposite effect of what you intended.

  • Your customer may not truly know why he/she bought from you.

  • Focus groups and customer surveys may be a waste of time (gasp!)


Be mindful of what you are selling. Your customers do have choices - they can buy from you or someone else. However, it's up to you to decide what your services include and what your product offerings are. Allowing your customers to totally dictate how your product works or service is delivered can actually decrease your sales.


Saturday, July 09, 2011

What Shopping Malls Won't Tell You

I enjoyed being interviewed by Jonnelle Marte about my recent mall shopping experience a few weeks ago. The article is called 10 Things Shopping Malls Won't Tell You and was published in SmartMoney.

After reading her article it's hard to figure out what a shopping mall can do to generate more traffic. I've found that many times retail employees don't know much about the products in the store and sometimes don't really care to help me. So it's better for me to do my research online about what I'm buying and then take the next easiest step and just buy what I need online.

But I do feel nostalgic for the shopping malls of the 80's. It was fun to get dressed up with my girlfriends and go hang out for the day or take a mother/daughter trip to a mall a little out of the way.

My first job was at a retail store in the mall. I worked there all through high school and one summer during college. The mall was always busy and I took my job seriously. It was tiring being on your feet all day, dealing with customers of all types, having a boss that was burned out and then getting up the next day and doing the exact same thing. Seems like that may be how malls feel now - tired and worn out.

Thursday, July 07, 2011

What Tennis and Sales Have in Common

Last week I had the wonderful opportunity of attending the Wimbledon Tennis Championships in London, England. While on a family vacation we had a free day and decided to take the Tube (our version of the subway) to the tennis grounds just to walk around. Much to our surprise we were able to see players warming up and were able to watch a few junior matches and women's matches. Here's a picture of Andy Murray warming up that I snapped (just to prove I was really there!).

What impressed me the most was the intense focus the players had on what they were doing.
-- Making a sale takes focus and keeping your eye on the ball.

The players made every shot their best shot possible.
-- Making a sale requires knowing your product & what you have to offer so that every customer conversation helps to advance your position.

You can have all the tools to be a good tennis player (shoes, racquet, etc.) plus skill and athletic ability but no player can predict where each ball hit will go.
-- Making a sale requires preparing for the unexpected.

Players study their opponents strengths and weaknesses.
-- Making a sale is dependent on you knowing what you have to offer versus your competition.

If a player breaks the rules or is unsportsmanlike he loses the point.
-- Making a sale has unwritten rules of integrity and honesty. Break this rule and you'll pay the price in the form of unhappy customers, a bad public image and lost business.

Saturday, June 11, 2011

The 5th P of Marketing: Planet

I know not all small business owners are Marketing geeks like me, but if you've studied Marketing you've heard of the 4 P's: Product, Price, Place and Promotion. About 20 years ago I majored in Marketing in college and the 4 P's were ingrained in every paper I wrote and every project I completed.

I recently read a thought-provoking article in the Spring 2011 edition of @Mays published by the Mays Business School at Texas A&M University called "Marketing 3.0." In this article, author Philip Kotler discusses value-driven marketing that focuses on profits, people and planet.

And that's when the 5th P occurred to me: Planet. This is how your business strives to make the world a better place. It takes "Cause Marketing," which I blogged on a few years ago, a step further. Cause Marketing is aligning your company with a nonprofit cause, like a health food store and the American Diabetes Association, so that your company can enjoy additional PR and exposure from contributing to the cause.

According to Indra Nooyi, CEO of Pepsico “Many companies focus on the financial performance and have forgotten the fact that they owe every society that they operate in a duty of care." Marketers today must consider how their product, service, brand, company and employees impact the planet in the following ways:
  1. Sustainability. "How can we design and build a world in which the Earth thrives and people can pursue flourishing lives," is how the MIT Sloan Management Review defines sustainability. When the notion of sustainability first began hitting corporate America the focus was on regenerative byproducts, carbon footprints and the environment. For example, Kimberly-Clark recently revealed their 2015 Sustainability Goals as follows:
    • 25% reduction in water use and maintain quality of discharge
    • 100% certified fiber
    • 5% absolute reduction in greenhouse gas emissions
    • Zero manufacturing waste to landfill

    Furniture store IKEA recently developed a Sustainability Product Score Card so they can stock the greenest shelves, couches, chairs, and tables possible. It doesn't rate suppliers but instead rates products.

  2. Going green. Greener offices, work spaces and supplies are ways non-manufacturing businesses focus on the planet. A few examples are:
    • Carpooling
    • Recycling and placing recycle bins in high traffic office areas
    • Going paperless when possible
    • Work from home days
    • Energy efficient lights and light fixtures
    • Turning off lights and computers at the end of the day
    • Making 2-sided copies
    • Using non-toxic, "green" cleaning products or requiring your janitorial vendor to use them

  3. Philanthropreneurship: With "Cause Marketing" corporations partner with a nonprofit to help build both brands. Philanthropreneurship, also known as sustainable philanthropy, builds social responsibility into the brand. (I first saw the term in this article in the Spring 2011 edition of @Mays.)

    Think TOMS Shoes - who for every pair you purchase will donate a pair of shoes to a child in need "One for One." Social responsibility is integrated into the TOMS business model. And it pays off. According to the Edelman "Goodpurpose" survey of 6,000 consumers, aged 18-64, across 61 percent in the United States, buyers have a better opinion of corporations that integrate good causes into their business, regardless of the reasons why they do so.

Why is the 5th P so important? People want to feel good about their purchases. Protecting the planet is more economical in the long run. It connects people to your product or service by sharing values. And it boosts another P: Profit!

Tuesday, May 17, 2011

The Power of the Stall - What I Learned from Burning my Eyelashes Off


I burned my eyelashes off! It happened so fast.

I was cooking on the gas stove while wearing a terry cloth robe when my left sleeve brushed across a flame and caught the sleeve on fire. To put it out I began brushing the fire with my right hand which then caught my right sleeve on fire. Realizing that was dumb, I calmly ran outside, threw my robe on the ground and watched the flames die out. Then I returned to the kitchen and finished cooking breakfast. The event was, in fact, completely uneventful. But my daughter did ask, "Mom, what's that smell?"

Later that morning, when applying mascara, I realized something wasn't right. My eyelashes weren't just extra short - they were gone. I had burned my eyelashes off. It was then I freaked out. A delayed reaction set in where I began to panic with what might have happened. My heart started to race as I went through the possible scenarios and horrific outcomes of catching myself on fire!

Thankfully I was able to stall my panic until the fire was out which helped me manage the situation better. This leads me to a concept I call the Power of the Stall. To increase sales stalling can be an important tactic. It's true that sales people want to speed up the sale and buyers tend to stall the sale. But here's how to use the Power of the Stall to jazz up your sales:


  • To make a sale you need to be a quick thinker. But sometimes in our haste to "cut a deal" we make a decision with costly ramifications. Be careful about making quick pricing decisions especially. I once sold a product below cost because I thought the customer would buy other full priced products from me. They never did.

  • Knee jerk reactions can be costly and hard to undo. When a traumatic event occurs in your business, the knee jerk reaction can be to overreact. I once worked for a company where a driver had a car accident in a company vehicle and so they took away all the company vehicles. The backlash from this was costly - valuable employees quit and went to work for the competitor and morale was the pits for years.

  • Stalling gives you a chance to think through the best way to respond. Use the excuse that you need to check with your boss or your operations manager before committing to a sale. This is a legitimate reason to stall in the customer's eyes and it will give you time to think about what is best for your business.

Tuesday, April 26, 2011

Volunteering Will Jazz Up Sales & Make You Enchanting

Building a successful small business includes volunteering in your community. Even if it's just a membership in your local trade association or Chamber of Commerce, you will want to join a group that can help you learn more about your industry and connect you with possible customers.

Working on fundraisers and community service events is a great way to network. Serving on a Board of Directors or an association committee is a great way to gain a reputation for being a hard worker and to let people get to know you and your business. Plus, it makes you feel good to help others!

I recently read Guy Kawasaki's new book Enchantment: The Art of Changing Hearts, Minds, and Actions. A section of his book is called "How to Enchant Volunteers." As a long-time community volunteer who has had my share of good and bad experiences, I loved what he had to say. He lists 8 rules of enchantment for volunteers. Here are my favorites:



  • Set ambitious goals. Volunteers want to know what they are doing is important and that they are making a difference. Set challenging goals so you don't waste their time. The only thing worse that overusing volunteers is underusing them. Amen to that!!


  • Enable them to fulfill their needs. Why did you join a nonprofit organization? I joined Junior League so I could meet other women who liked to volunteer. I joined a trade association when I worked for an elevator company so I could meet potential customers and hang out with existing customers. I volunteered at my church because I felt an obligation to help. Reasons that people join nonprofit organizations are: duty (I should help at my kid's school), belonging (I want to be part of a group with similar jobs or values) or mastery (I want to learn a new skill). Fulfill these needs to enchant volunteers.


  • Give feedback. This is especially important with volunteers because they aren't receiving money as a feedback mechanism. Let your volunteers know how they are doing and recognize them for the hard work they are providing.


  • Ensure the paid staff appreciates them. Volunteers often give their heart and soul to organizations. Be sure your paid staff honors their commitment.
Kawasaki goes on to say that these tips for enchanting volunteers can also be applied to your employees. So true!

Sunday, April 10, 2011

Dumb Rules That Make Customers Mad

Tom Peters calls it "a failure to overcommunicate." I call it "dumb rules that make customers mad."

Here's the story: Last week I was in Half Price Books with a handful of books to resell. (Don't you just love Half Price Books? I feel so "green" shopping there.) When I dropped of my books at the resale (or is it resell?) counter the rep asked for my driver's license and told me she'd call my name when my books were ready. I told her I was going to walk next door and get lunch and would be back shortly which prompted her to say in a booming authoritative voice,

"You MUST REMAIN IN the STORE!"

I explained that I would be back in a few minutes and that I would just be next door to which she repeated,

"You MUST REMAIN IN the STORE!"

I then explained that I was on my lunch break and wouldn't have time to wait in the store and then get lunch. I needed to get lunch while I waited on the books. And again she said,

"You MUST REMAIN IN the STORE!"

At this point I felt like a 3rd grader getting in trouble for talking in class (which I did get in trouble for in 3rd grade). The sales clerk was talking so loud in my face and other customers were staring. I picked up my books and left.

I'm a rule follower by nature. And I respect rules. This situation brings to light that it's important not just to train your employees on rules - but to train them on the reasons behind the rules and how to explain them to customers. Clearly, this clerk was doing the job the way she'd been trained. She was determined to follow what seemed to be a dumb rule to me. All this sales clerk had to do was communicate to me why it was necessary for me to remain in the store. Instead, she really made me mad.

Just so I could get closure on this dumb rule, when I got back to my office I called the corporate headquarters of Half Price Books and asked why it's a store policy for customers to wait in the store after dropping off books. Guess what I was told? "No, it's not a company policy. It must be something that particular store does." I'm still trying to get closure on this one.

Sunday, March 06, 2011

Why You Should Invoice Your Customers on Time

Our neighborhood has a lawn service company that mows yards for a reduced price - so almost every home in the neighborhood uses them. We just received our bill from them for the first time in 6 months! Instead of billing monthly they sent us a bill for September, October, November, December, January and February. Needless to say, what seems like a great monthly price is pretty stout when it's billed in 6 month increments. (The long story is that they have consistently billed late like this for the last 3 years).

This brings up the importance of invoicing your customers. To jazz up your sales invoice your customers on time. Here's why:

  • When I receive a late invoice it makes me feel like the company is overcharging me. It makes me feel like they don't need the money. After all, how can a company make payroll each month if they aren't receiving payments from customers?

  • Late invoices are confusing. Now I'm confused because I can't remember when the lawn care company trimmed the weeds back in September. Invoicing on time will avoid confusion and payment disputes from customers that will take extra energy to figure out.

  • Invoicing on time will get you paid on time. For a small business cash flow is the key to life. A late invoice can mean your customer no longer has the money set aside to pay you. A late invoice may cause your customer to not remember exactly what they are paying you for. A late invoice tells your customer you didn't need the money at the time services are rendered so paying on time isn't that important.

Friday, February 04, 2011

Are you an Effectual or Causal Thinker?

A recent article in Inc. magazine called "How Great Entrepreneurs Think" revealed the findings of University of Virginia professor Saras Sarasvathy. She discovered that entrepreneurs relied on "effectual reasoning" whereas corporate executives relied on "causal reasoning."

Below is a breakdown of the 2 types:

Effectual Reasoning (Entrepreneur)
- Values improvising over planning
- Develops goals on the fly & then reacts creatively to problems
- Doesn't need to predict the future because contingency plans are the fun part
- Operates using "Ready, Fire, Aim"

Causal Reasoning (Corporate Executive)
- Values concrete goals and steps for achieving goals
- Takes the MBA approach
- Values quantitative analysis and market research
- Operates using "Ready, Aim, Aim, Aim"

In her study of successful entrepreneurs Professor Sarasvathy found that only 12% had done market research and 60% had not written a business plan before launching their companies. It seems that effectual thinkers feel that taking "aim" is a distraction that takes valuable time away from actually "doing" what needs to be done.

Having worked in a corporate environment for 15 years and earning an MBA I lean toward the causal approach because it was beat into me. To jazz up the sales of your business I believe you need a combination of effectual and causal thinkers. Each type will hold the other accountable for decisions they have made or need to make.

Saturday, January 08, 2011

The Birthday Effect


I had a wonderful birthday last week. It was a REALLY busy work day plus I had a doctor appointment for my daughter, after school kid chauffeuring to do and dinner with friends and family. I love going to the gym and find that I skip it when life gets busy. But I went to the gym on my birthday because, well, it was MY BIRTHDAY, and I felt entitled to do what I wanted to do. I felt special. As a matter of fact, I felt entitled to do as I pleased (in a humble sort of way) for the entire day. I even thought people might know it was my birthday by looking at me. Isn't that silly?

Think about how you feel on your birthday? Here are some words that come to mind when I think about how I feel on my birthday: special, happy, thankful, excited, giddy, unique, acknowledged, appreciated and noticed.

How can you make your customers feel this way? How can you create the Birthday Effect for your customers?

Part of the Birthday Effect is that it only lasts one day. It has a clear beginning and end. It doesn't last long enough for you to truly get used to the feeling. Maybe that's part of the charm? It lasts just long enough to leave you looking forward to next year.

Until next year I'm going figure out how to implement the Birthday Effect with my customers. And if all else fails, I know how to bake a tasty chocolate cake and light candles!

Friday, December 24, 2010

7 Things to Do Between Christmas & New Years to Increase Your Sales

Trying to make use of the down time between Christmas and New Years? Here are 7 things to do in the next week between Christmas & New Years to jazz up your sales:
  1. Read a bestselling business book. During the holidays the new book display is easy to find at the book store. Pick one that looks interesting and read it to find out what current thought is in the business world. It can also provide content for a conversation starter with customers.

  2. Buy a subscription to People magazine. I got this idea from John Jantsch's book Duct Tape Marketing (plus I've read People for years!). For the last 20 years People magazine has sold more magazines than any other. People will help you get a feel for what the "majority of Americans want to fight, find, lose, gain, have, give or embrace" according to Jantsch. If your customers are men and women ages 25 to 54 then People magazine will tell you what your customers are talking about. Read Jantsch's full explanation and I'll bet you won't think twice about subscribing.

  3. Really clean off your desk. Throw away old papers, file necessary papers, remove all the post-it notes from around your computer monitor, get out the furniture polish or a wet rag and wipe the desk surface clean.

  4. Make and prioritize your list of what you want to do the first week in January. I always feel overwhelmed when the holidays are over and lose the first few days in January because I'm in chaos and trying to do everything on the first day. Keep in mind that your customers will feel the same way and may not be as receptive to you at this time.

  5. Get your tax stuff in order. By April 15th you won't remember half of what you did in 2010 and digging through papers and receipts to get your taxes done will be a huge distraction.

  6. Mentally reflect on your business. Do you have any clients that really bug you or drain you? Do you have any projects or tasks that you dread doing? Is there anything you do in your business day that feels like a waste of time? Think about how you can eliminate energy draining projects or clients so you can focus on increasing your sales and on projects you really enjoy.

  7. Have fun. Spend time with friends, go see a movie, hit the gym, or do whatever you enjoy that helps you refuel to start the new year off with energy.

Sunday, November 21, 2010

Do You Hate What You Do for a Living?

I just finished reading Andre Agassi's autobiography OPEN and was surprised to learn that Andre Agassi hates tennis. He says it several times throughout the book. He even hated it when he was young and winning tournaments all the time. Whenever he confesses this fact to friends they are incredulous and don't believe him. Even now, he doesn't have a tennis court at his home.

Basically, tennis was all Agassi knew how to do and so that is what he did. As a child prodigy he spent his school years on the tennis circuit traveling all over the world. He didn't even finish high school. At times his dislike for the game surfaced in his bad attitude or unsportsmanlike antics.

It reminded me of how small business owners can both love and loathe what they do for a living. You feel boxed into a corner like what you are doing is all you know how to do. You may feel like there are no alternatives available. Guess what? Your customers are on to you. They will know if your business is run by someone who hates coming to work every day. It will surface in poor customer service, low quality, bad employees and eventually reduced sales.

Here are a few tips for jazzing up your sales when you feel like you hate what you do for a living:

  • Focus on what you like instead of what you don't like.

  • Be good, but not perfect. Perfectionism can cause you to focus on tiny details that don't matter and can really bog you down.

  • "Control what you can control," is advice Agassi's conditioning coach gave him. Unhappiness can result from feeling like things are out of control. If you don't have the power to change something then let it go.

  • Take a quick look at yourself. Are you miserable in other aspects of your life? As a business owner I definitely understand that work and home life can be one in the same. Make sure your dissatisfaction at work isn't a by-product of other issues in your life.

  • Figure out exactly what it is that you don't like. Don't get overwhelmed and say that you hate EVERYTHING. If it's the 24/7 schedule find a way to have an employee cover for you at times. If it's having employees you can't count on, make finding better employees a priority. If you can articulate what you hate in one sentence then you are on your way to finding a solution to your problem.

  • Don't quit. You may just be unhappy because a big deal you were working on fell through or you lost a key account. Don't let one failure define who you are or the reputation of your business. All businesses have big losses on occasion. Good businesses learn from it and move on.

Wednesday, October 27, 2010

10 Ways to Snap Out of a Sales Slump

If you've been in business long enough you've gone through a dry spell. Experienced sales people know this will happen. Experienced sales people also know that if they keep prodding ahead things will change for the better.

Here are 10 ways to snap out of a sales slump:

  1. Start with the business you have. Loyal customers are glad to hear from you and will be most receptive to new offerings you have. Spend a few days calling or visiting all of your existing customers and thank them for their business. Keep it short and sweet so as not to waste their time.
  2. Ask for referrals. Don't be afraid to ask your friends and happy customers to refer you or your services to their contacts. Most people are glad to help.
  3. Resist the urge to make a bad deal just to make a sale. You'll hate yourself later for it and the bad deal will distract you from more worthwhile efforts.
  4. Know what you can and cannot control. Justifying your sales slump by blaming the bad economy is not the solution. You cannot control the economy. What you can control is the quality of services you offer, the employees you hire, how you present yourself and your attitude.
  5. Don't get snotty with a potential customer. I remember a sales person from the National Chamber of Commerce cold calling me and being visibly ticked when I didn't buy from him. Not only had I stopped what I was doing to meet with him when he dropped in but I listened to what he had to say. When I didn't buy from him on the spot he got mad and told me what a big mistake I was making. He was probably in a sales slump and decided to take it out on me - but there's no way I'd ever buy from him now.
  6. Focus on what's right instead of what's wrong. When you lose a sale it's human nature to try to figure out what went wrong. Was it my timing? Did I not have a good enough relationship with the client? Was my product not as good? Instead of going through this litany of questions ask yourself, "On my last sale what did I do right? What made the customer chose me? What did I do to persuade the customer my product/service was better?"
  7. Get your act together. In other words, get organized. When you are in a slump it's natural to panic and respond in a desperate haphazard way. Clean off your messy desk, organize your email inbox, update your contact database and wash your car.
  8. Let dead dogs lie. We all have customers we've been working on for yeearrrrsssss who always say, "No," but we keep holding on to the idea that one day they'll be ours. Stop. Move on. Go sell to someone else.
  9. Don't over-celebrate. Keeping your pipeline full will prevent a slump. Continue sales and marketing efforts like networking, PR, advertising and cold calling even when sales are going gangbusters. Be careful not to take a week or 2 off celebrating a big sale because it can lead to a future slump.
  10. Buy a new outfit. You've heard the saying, "If you look good, you feel good." It's true.

Thursday, September 30, 2010

Know When to Zip it!

Have you ever been excited that a client you are working with finally decided to sign up and buy from you? Remember that as soon as a prospective client agrees to sign your contract, writes you a check or says, "I'd like to order 50," then it's time to stop talking. Don't discuss anything else. Not the weather. Not your kid's birthday party. Nothing. Nada. Zip it!!!

I'll never forget one of my sales managers who was in such a hurry to leave our customer's office after the sale that he knocked their clock off the wall and then stepped on it! Without saying a word he picked it up, brushed if off, hung it back on the wall and practically ran out of the office with me tagging along.

It's natural to be excited about making a sale or getting an order - but resist the urge to make idle chit chat as you leave your client's office or as he leaves your office. You could give your client a reason to change his mind. But if you happen to knock his clock off the wall and step on it I'd open my mouth long enough to apologize!

Sunday, August 15, 2010

What do Tupperware & YouTube have in Common?


I never would have realized what Tupperware and YouTube have in common had I not read the book Viral Loop by Adam Penenberg. In 238 pages the author explains how successful companies tap into vast social networks. Beginning with Tupperware the viral networks of companies like Netscape, Hotmail, eBay, PayPal, Flickr, MySpace, YouTube, Facebook and Twitter are explored and the term "viral coefficient" is used to explain how they caught on in the market place.

In the olden days we called it "word of mouth" but with the internet ideas spread infinitely faster, many times within hours. More than one viral loop company has grown so fast that its founders have been awake 24 hours a day for several days making 3:00 a.m. server changes just to keep up with demand. With a viral loop a small business can grow huge in a matter of days. It's Webonomics at it's finest.

Here are 5 quick facts I learned from the book:

  1. Viral loop businesses are web-based, free and users spread the product purely from using it.

  2. You must have a viral coefficient of at least 1 to have truly viral growth. This means for every user of your product, they tell one person each day. On day 1 you have one user and the next day twice as many - and so on. If you have 100 users, on day 2 you would have 200 users, on day 3 you would have 400 users, etc.

  3. Viral loops cannot be initiated and carried out by a marketing department. It has to be built into your product from the beginning.

  4. Be open minded when your product or service shows up or is spoofed on YouTube. Remember the Mentos and Diet Coke experiments? Mentos embraced it and enjoyed $10 million worth of free publicity and a 20% increase in sales. Procter & Gamble CEO A.G. Lafley is quoted as saying, "The more in control we are, the more out of touch we become. But the more willing we are to let go a little, the more we're finding we get in touch with our customers."

  5. Don't hold back on viral opportunities because you are afraid of growing too fast. All of the viral loop companies grew too fast and were glad to figure out ways to overcome their obstacles.

Tuesday, July 13, 2010

How to Argue with Your Customers

Arguing with a customer is a lose-lose. Even when you know your customer is wrong.

I can still remember taking the bait with an angry customer and yelling back. It was a hot day in the Texas summer when I worked for Otis Elevator. The hotel manager at a fancy hotel was mad. I drove down to his hotel to check out the problem myself.

This hotel had an old-fashioned elevator that required an operator. The car door was a collapsible gate that opened by hand like an accordion. Bellmen used this elevator to move luggage for hotel guests and the gate had been banged off the track and was hanging in the doorway. The elevator, of course, wouldn't run and this type of problem wasn't covered in the hotel's elevator maintenance contract.

The hotel manager proceeded to scream at me in the hotel lobby in front of staff and guests. Yelling at the top of his lungs! He claimed the gate "just jumped off the track and broke." I claimed one of the bellmen ran into it with his luggage cart. He claimed his bellmen didn't run into the gate. I grabbed a luggage cart and yelled back, showing him the dents at the bottom of the cart where it had run into the gate. Paint had even chipped off the gate onto the cart. He yelled LOUDER and got angrier!

I won the battle but lost the war. He called my boss as soon as I left.

Use these tips to jazz up your sales when arguing with a customer:

  • Apologize, no matter how much it makes you cringe. Apologizing is one of the fastest ways to diffuse anger. It will shave minutes off your argument and it doesn't mean you are admitting fault.
  • Control your voice. Resist the urge to yell back by intentionally talking in a softer voice than your customer.
  • Allow the customer to vent. Many times people communicate with high emotion because they don't feel understood. Try not to offer a response or solution until the customer has fully explained himself.
  • Don't make threats. Statements like, "If you do ______, then I'm going to do ______" will only make matters worse. Backing your customer into a corner is a short-term win for you.
  • Say what you can do. Once the customer has vented avoid rehashing what has been said and who is at fault. Instead, focus on what can be done to rectify the situation.
  • When in doubt, say nothing. You can't take back words. Even if you retract what you say, your customer will remember you said it. Err on the side of caution. Less is more.

By the way, thanks for letting ME vent! I still get mad when I think about that hotel manager.

Monday, June 07, 2010

The Caboose Matters Most

Our family recently installed a swimming pool just in time for the hot Texas summer! Big home improvement projects typically cause anxiety for me. (Honestly, I believe I have a form of post-traumatic stress disorder from a home renovation gone bad when I was weeks from delivering my second daughter in 2002). However, the pool installation was fabulous! Within 4 weeks we were swimming in the pool. Several friends were so impressed that they asked who our pool company was and subsequently contacted the company for a pool quote.

Once the pool was swimmable there were a few odds and ends needing completion. This is where our pool company took a nose dive in the deep end. Getting the company to finish up their punch list has taken 3 times as long as it took to install the pool and it's still not completely finished. Now we are calling our friends and retracting our accolades for the pool company. All because of a few tiny odds and ends.

Sadly, the last thing that happens is what customers remember. No matter how great your product is or how perfect your service has been the last thing that happens defines you and your business. As salespeople we like to make a sale and move on to the next customer when really we should see the process through until we can waive at the caboose driver.

Tuesday, May 11, 2010

Do You Tap Your Brakes?


On my way to drop the kids off at school today I saw a police car parked on the shoulder and automatically tapped my brakes. I almost always involuntarily tap my brakes when I see a police car on the road. This made me think - do I tap my brakes because I assume I must be speeding? Do I assume I must be doing something wrong just because I see a police car? Or does the police car just raise my awareness of my driving speed?

This happens in sales, too. We may be talking to a customer and just because they mention our competitor or make an objection we assume they don't want to buy from us. We assume we must have said something wrong in our sales presentation just because the competitor's name or product was mentioned. Actually, it should simply raise our awareness of why our product or service is better and how we can best help our customers.

One quick side note about my driving this morning. If I was speeding I wouldn't drive up to the police car and tell the policeman. Instead, I would casually slow down and hope he doesn't see me. Same thing with your customers. If they bring up your competition don't let the conversation be about what the competition can do. Instead, casually turn the conversation to what you and your product can do.

Sunday, April 18, 2010

Would you Rather be Lucky than Good?

I'll never forget one of the biggest surprises of my sales career. I drove 2 hours to give a potential customer a 1-hour presentation in hopes of gaining his business. As soon as I walked into his office he pulled out his pen and said, "Where do I sign?" WHAT? I almost didn't know what to do. Thankfully I had been in sales long enough to know to keep my mouth shut, show him where to sign and then high-tail it out of his office. Less than 5 minutes later I was in my car headed home. How lucky can you get?!

If you've worked in sales then you know people who try to take the easy way out by not preparing as much as they should for a call, by leaning on their personal relationships more than their ability or by not putting in the time it takes to develop their skills.

Being good at sales is hard work. It's not just using a formula that you plug in. I believe we create our own luck by being over prepared, knowing our product and service, and learning and understanding what our customers really need.

But I have to confess - sometimes I'd rather be lucky than good!