Don't Just Manage Your Customers....Engage Them

Monday March 21 2011

What is your company's business strategy?   How you plan to create wealth and deliver on your promises with an offering that turns on your market. Not only could very few employees tell you what the offering or business strategy is for their company, too few business executives can either.  But once you think through what is going on in the market, what you want to do to turn on the market and, at the very least, adequately match  why customers will give you the money you want, then you need to make sure all your sales, operations systems, and marketing systems are connected to the strategy and are working. It is our experience that a lot of systems are only supporting what they were originally set up for.  And, like any system they feed off the protocols, rules, policies, methods of the day.  The intent hasn't be updated or thought through and not many realize it.  All those involved are well-meaning but the system controls the people, not the other way around.  As a result, even when the strategic intent and/or plan is implemented, the present systems will reject them like the human body can reject transplants.  It is often subtle and what is worse, it is often a mindless game of everyone trying to protect and defend old systems, and, without knowing it, are competing with the business strategy. Companies wind up with silos and everyone competing for resources, power and recognition and the company inadvertently is not designed to succeed in the present market.  The offering becomes tired.  Revenues are flat.  Margins suffer.  Tinkering with improvements in the systems won't change the business much and customers are the ones who don't get the benefit of the good thinking and planning.  Execution is weak. For example, you can buy and implement any CRM but if it doesn't support your marketing process (finding and keeping customers), your sales process, and your business strategy... what good is it?   Marketing and sales must be organized to support your business strategy and the CRM is just a tool to help.   Unfortunately, very few CRM's are used this way.  They tend to be sales manager's measurement tools or data management tools and, although important, may not help you take your business where you really want it to go. When you add Facebook, LinkedIn and other networking/customer engagement tools like so many companies do, it is important for these tools to be integrated into current processes (not replace them) supporting the systems that make your business strategy work. If you do not do this they will become a system with a life of it's own that does not contribute much to growing the business. That is why Kevin Robert, my son, as one of the leaders in our business, is presenting an exclusive event sponsored by Microsoft.  We have partnered with Microsoft to create a full solution for years.  Microsoft is bringing together speakers to show you how they integrated their systems to support engaging more customers.  They will show how CRM is quickly evolving from simple customer management to collaboration and customer engagement and how customers expect more control over their interactions with companies, fueling what we now call social CRM. Is your business ready to make the most of your business strategy, especially how to engage customers?  Are you connected to how to do this so you are more important to your business and career possibilities? Because you are a Monday Morning Mentor reader, you can join Kevin at the "Power of Productivity" exclusive event for Microsoft Dynamics - CRM 2011 where you will learn to be responsive, transparent, and personal in your dealing with customers to support your business strategy. Reserve your spot here. Tuesday, March 29th, 2011 12:30 p.m. - 5:30 p.m. Get there early and you will get a free copy of "Engage" by Brian Solis.  You will hear the Managing Director of Facebook, LinkedIn and three authors/experts.   Moving on - Moving Up Have a great week!

Increasing Profits without increasing costs

Today’s business world demands that we reflect on answering tough questions about our business, implement the most practical answers through an engaged team, monitor and reward progress, and keep building a team to get us where we need to go. If I could pick one ‘area’ that we could all focus on that would almost guarantee a return of repeat sales and more profits, I would choose… ‘how do we add more value for our high value customers? It is important to constantly ask and answer the right questions and ensure our action steps are implemented.  Begin by reflecting on: 1.            Who are our best customers?  (define what is your ‘best’ – usually 20%) 2.            What does our business mean to them?  (How do we impact their lives?) 3.            What are they planning and how do we become part of their plans. 4.            What products, services and activities make us the most money 5.            What are the activities that are high-value, high return? 6.            What extra actions keep customers feeling special? The answers to one through five are focused on helping customers and you, get what you want and allow you to stay in a winning position in the game.  Number six can make you just a little better than your competition.  If you are saying you are not worried about competition, listen to Mark Twain when he said “Let us be thankful for the fools.  But not for them, the rest of us could not succeed.” Why is it important to add a little extra, personalized touch to every key customer interaction?  Any customer can go anywhere for a better price but can’t go just anywhere to be happy.  If you listen and watch, you will know what the little extras are and provide them.  If you keep asking and answering questions one through five forever, you will always be adapting and adjusting your value to customers.  Your value proposition and offering will stay linked to the quality of your delivery and how it matches your customers wants…. beyond the price you charge.  The quality of your reputation and how you keep your brand’s promises, not how you generate dollars and cents, will get you through the ups and downs.  It is important to think through every interaction with our best customers and figure out how to add that extra, personalized value. The opportunity is there for any organization or any person.  We have all the time required and the costs are minimal to connect with customers with sincere interest, or moments of added generosity.  It doesn’t always have to be a technological tool we use although connection is faster using some of these tools.  It could be as simple as tracking your customers buying routines using a CRM system, calling and reminding them of it and telling them that you have a special gift to move now.  This isn’t difficult, but above all, ask for the order. MMM Insight: Offer value by actually valuing your customers.  In small or medium sized companies, customers are not just numbers.  They are people and that is your advantage over big companies.   Today customers expect that you know as well as they do, their wants, and where they are going.   Here are some examples of the little memorable things that can make a business stand out: -Arriving at your favorite restaurant and by the time you sit down, your usual beverage of choice is waiting for you. -A brief hand written note from the CEO/Owner with every large order. -A genuine after the sale service call. -A genuine service call while the service or product is being delivered.  Ask them, “How would you like to be serviced?”  Find out what little things are important to them and if taken care of, could be memorable to them. -Our gardener/landscaping company in Mexico walks us around his work when he is finished, shows us how everything is the way we wanted it, it’s cleaned up, and then presents us with a small gift (usually a plant).  What thoughtfulness.  How simple.  What a good  business practice. All of us can figure out what will work, what won’t, and we don’t have to give away the value we charge for.  (numbers 1 – 5)  We can add that extra valued touch without adding excessive costs.  Never add costs to your customer without adding value.  If you treat customers in a special way, they won’t be so upset when you up your prices.  The extra value could justify the costs.  Remember the bigger the personal connection, the more they will remember you.  You will gain access to repeat business and bigger sales. ACTIONS: Make your own list of what extra value touches to give your clients that sincerely makes them feel special.  Implement them immediately.  Better yet, get a group together to create a list of your best customers.  Create standardized routine actions and/or go over each account and determine what they would value that is unique to them and implement your specific actions.  This meeting could be the most profitable use of your time this month.  Your brand loyalty, profits and sales depend on it. Have a great week!

Welcome to the connected economy

. . . where advantage is temporary and nothing is fixed in time or space.  Relationships rule! Here is how things are today: - Change is constant and quick.  Every aspect of business in a connected organization operates and changes in real time. - Imagination and knowledge are more valuable than physical capital. - Products and services are blended as ‘offerings’ and what’s important is making sure you can serve, immediately, be connected and deliver anywhere. - Adaptability is paramount as more companies build permeable networks of business relationships with suppliers, distributors, employees, and even competitors. - Everything is electronically connected to everything else.  Products, people, companies, countries……everything. You are ‘with it’ if you are an effective social networker. Today, dictators are being overthrown by Twitter, Facebook, YouTube, etc.  Propaganda hasn’t got a chance.  Relationships are built or destroyed in a flash.  Everyone wants a better career or better business.  Social networking can be a great tool.  Effectiveness means you block out 15 – 19 hours per week to stay on it.  That eliminates two thirds of those who begin and then drop it.  Like anything else, social networking won’t produce results unless you put in the time and stay committed. It isn’t just about technical tools.  It’s about core ‘Dale Carnegie’ principles says Corey Perlman, author, consultant, and leader of networking boot-camps.  For example: 1.    Becoming genuinely interested in others.  Giving recognition, assistance, time, and referrals to your network, leads to reciprocity.   You will gain lots of referrals from dedicated relationships with a diverse group of contacts. 2.        Don’t just use the technical tools, be a leader.  Be the one to connect others in meetings, shows, seminars.  Be the one who does the introductions, brings people together, and acts like the host.  Be the go to person and opportunities will come your way. 3.   Be a personality. Stand up, speak out, add enthusiasm and feeling in one-to-one conversations and in your public speeches.  People connect with you on a personal level because you are an expert and are engaging..  Write about your expertise and give it away to a target audience and your network. 4.   Be a value-adding friend, help others get what they want.  Find a core group of motivated supporters, people who can leverage their connections and create buzz for you and your business.  Ideally, they are your customers, suppliers and friends.  Again, focus on helping them get what they want.  (If you are thinking “Wait a minute, I want to get what I want”, then delete this e-mail now.  Networking won’t work for you.) The old Rolodex and address books still rules with corporate leaders, even though, today, it is done through technology.  You can be more influential by building your network through networking efforts. Other Actions: - Volunteer in a community activity.  Be more visible while doing personally rewarding, selfless work. - Send real cards such as thank you, good to meet you, thinking of an idea for you, birthday, etc.  (not just e-mails) - Maintain communications by bringing your network together for a lunch, dinner, drink, etc. -                     Get involved in a professional association, service clubs such as Rotary or Chamber. - Offer to host an event at your office, or dinner party, or ball game.  Bring your contacts together and pick up the tab. - Another Dale Carnegie principle…. Learn, again, to be a better conversationalist.  Listen more, ask pertinent questions, don’t talk about yourself, get people on the right topic.  Being a self possessed bore doesn’t work except on TV or in the movies. -                     Occasionally, write a press release about newsworthy events or accomplishments.  Again, the best ones are about showing others recognition. - Create a book of testimonials.  Send them to someone who is asking about your business or services.  Remember to ask them for success stories, and use them in introductions or discussion-starters with first time clients. - Always write your own introduction to a speech.  Never let anyone wing it.  A bad or inaccurate first impression is difficult to overcome.  Effective introductions should humanize you, give you credibility, talk in terms of the listeners interests and get their attention as to why they should listen to you. - Once a year, find a way to garner feedback from customers and let those who participate know the results and tell them of any actions you are taking. - Ask for referrals.  Get good at asking in a natural, but not ‘cheesy’ way. - Start a Master Mind Group or join one. - Set up an advisory board and become available to other boards. What one action  will you take this week that will advance your connections within our connected economy.? Have a great week.

Breathe In, Breathe Out, Now Move On…….

February 28 2011

Breathe In, Breathe Out, Now Move On…….

This was the mantra Larry recently gave to me on the beach in Salchi, our small community in Huatulco, Mexico.  With the terrific, fun loving bunch of neighbours we have there, it is easy to live by that mantra.  Once back home in our hurried business lives, we can become wired to over-analyze, worry too much, and die emotionally from the monotony of the grind, the issues and problems.  Yet when we are on vacation and actually slow down, we are more capable of taking in what is really going on in nature and with people, and more inclined to see a bigger picture.  We realize that life and people have patterns of ups and downs and things are what they are.  Most of the time, everything works out.  Life isn’t good or bad…. It just is.  It is our attitude and perspective that makes it so.

When they are there my neighbours at Salchi, George, Rizwan, Stu, Wendy, Ellie, Trish, Terry, Rick, Larry, Teresa, Gail, Dennis, Brian, Max, Anne, and many others, are blessed to see the ocean, the whales, the birds, the hills, the mountains.  They become more appreciative of life.  Anita, whose home is on top of the hill, loves her gardens, pool, fruit trees, and most of all her friends.  She has such an enthusiasm for life.  She brings that to everything she does.  How do we emulate this state of mind to simplify our business life? 

One way is to be enthusiastic about everything you do.  You could complain about the work to be done, daunting challenges, and the bad news that spreads like wild fire OR, you could be grateful for what you are building and creating.   Let your face, your walk, and your talk reflect your enthusiasm and commitment.

In Salchi I am reminded of another principle.  We all need to slow down and be more appreciative of the people around us including customers, employees, and associates with all their uniqueness and differences.  Then we’ll find they will be more interested in us, our vision, our services, our products.  How simple.  Appreciate what is there.  Get interested in others.  Don’t try to manipulate, force or push your perspectives on others and life and business becomes easier and enjoyable.

Here are three simple, but important actions you could take:

ACTION #1

1. Genuinely care for your people.  Totally engage others in direction meetings.  Ask “Where are we going and how are we going to get there?”

2. Ask them about their future aspirations and how they want to learn and grow.

3. Structure and pay for learning, teamwork and skills development.

4. Only bring in people who complement your learning culture.  A good rule of thumb, “hire for attitude”- skill can be taught.  Bring on board people who can help you live the vision, your values and strategic direction.

ACTION #2:

Recreate your core reason for being in business and brand it by living up to every customer promise.  Exploit what you have and what got you there.  You need to understand the trends and behaviours of your markets.  You need to adapt your offering and make what you have work better than anyone else can, while keeping your eye on profits.  You will not only survive, you will win!

ACTION #3:

Focus on creating value, rather than just getting sales, especially where you lose money by competing on price alone.  Regardless of the economy or size of your company, customers come to you because of what they value.  Low value and low prices cause customers to leave.  Know your customers, know what they value, stand tall and sell.

Which of these simple actions will you take this week to build your business and make the ride more enjoyable?  Jimmy Buffet sings “A crazy man sold me a watch and the only time it tells is…. Now.”   Things are often that simple. If this isn’t true for you, then listen to Margarita Ville with a pop in your hand and sing along.   Places like Salchi or wherever you vacation, is a state of mind and we all need a little more of it.

Have a great week.

Emotional Intelligence is a Myth

Monday, February 21, 2011.

Wow! Today I read a report by a guy who tried to explain the problems of human resources and human capital management.  He went on to say that, “Emotional intelligence is a myth.”  Emotion and logic don’t mix, but both are in us.  The more I read the more confused I got, but I am sure some people found it interesting since he made lots of academic distinctions.

The quality of our interactions, whether it is with customers or internally, determines our productive or non-productive actions, not to mention the productive use of our time and the results we achieve.  You could say these kinds of conversations we have in our organizations create our habitual, unconscious culture.  And the culture greatly affects our results.  Manage the conversations around your business to create productivity.    

I always say to those I coach to watch out for conversations that lead to ‘that’s interesting.’  It usually means, “Thanks for the mental break, but I am not going to use that information and I have to get back to work.”

In business, and in life, we are not in an academic exercise, we’re in a real-time game. Ideas have to pass some tests to prove they will help us with what we are dealing with, and where we are going.  Good questions to ask automatically about these ideas are:  “Will it help me reach my goals and what we need to do in the business?  Is it the best use of my time?  Am I capable of using the idea immediately?  And does it make sense?”

The principles behind successful businesses are usually logical, but sometimes we get lost and confused in analysis, and conversations.  As a result we don’t take enough productive, new actions. It is as if we expect everything to be confusing and complicated, and nothing is going to happen anyway.  I am suggesting that all of us could be even more productive in conversations that build relationships, have value and create action, next steps.  This in contrast to what I call recreational and irrelevant conversations. 

For example:

            -   chronic complaining
-    blaming
-  information with no outcome attained (“that’s interesting”)
- creative ideas with no strategic context
-  solutions NOT on behalf of where we are going

· Define, constantly and clearly, how we define winning around here.

· Ask what is the outcome?.  What do we want to achieve?

· When people give you reasonable plans, ask them to go ahead and try it.

· If it is a problem conversation ask, “What is the problem? 
What are the possible causes?
What are the possible solutions?
What is the best possible solution?”

· Give feedback.  (“Here is what I like about what you said (or did).”)

· Ask if things were the way we wanted, what would be happening? 
How do we make them happen?

·  How are you doing according to plan?

·   What are the most important outcomes to focus on today?

When budgeting time for the most important activities, focus on the uncomfortable activity first and manage the conversations within your culture, and you will boost performance.  Most importantly, keep your eye on the prize -what are you creating for your business and team?

ACTIONS:

Watch yourself this week.  How many recreational and irrelevant conversations are you in? Manage the conversations.  Focus on questions and comments that cause everyone to act on the most important things.   

Try one or two actions mentioned above.

Have a productive week.

Can you be compelling?

Monday, February 14, 2011.

Let's assume you have answered the big questions I have asked throughout January.  You know what you want for the business, and you have examined your offering so it matches what your market wants.  You are ready to take actions to take you from where you are to where you want to go.

A normal action is to define in words what impact you have on your customers, and what you actually do to create that impact.  All too often, smart business people can organize operations and direct and engage their people, but can't tell me, in 60-90 seconds, what they do for their customers.  Most feel doing this is too old hat and it doesn't mean much, so they label it an elevator speech, unique selling proposition or just a simple marketing pitch and stop there.  Can you describe what you do for customers? Can you do it in a way that is relevant, clear, and impactful?  In our Twitter, Linked-in world, attention spans have shrunk; our choices are many; and we seem almost over educated.  What we need is relevance and a compelling message that stand-out.  Even speed (Twitter), without relevance is useless.

So, Mr. and Mrs. Smart and Successful Monday Morning Reader, how relevant are your thoughts and words to your customers?.  You are at a cocktail party, or sitting next to someone on a plane or you are in front of a new prospect or long term customer.... Explain to them what you can do for your market??  Take three minutes right now and answer this on paper:

-  Who are you? (in the market)

-  What is your offering?

-  What impact do you have on the market? 

-  What promises do you deliver on?

Impact isn't just a list of products or what you do.  It is what you do for the market.  A bright, young financial adviser who reads our Mentors, re-branded his work  He said, "I quarterback all the elements and professionals who are advising my business clients on behalf of predetermined strategies.  This gives my clients what they really want, when they want it."

I heard another from an insurance company executive.  "I help people solve the problems of becoming disabled, living too long or dying too soon."

Last week, on a monthly strategy huddle teleconference call that I do for a world wide organization, the leader described how he had everyone in his organization engaged in understanding their offering and then got everyone to practice describing it and presenting it within 60 seconds.  Whether they were in operations or in the field it didn't matter.  Everyone is engaged in thinking from the offering and doing what it takes to support it.

ACTIONS - Part II

Regardless of what you do for your company, some of the things you should do are:

 

1.Engage in the offering analysis asking what impact does our offering have, as it relates to what our customers want?

 

2.Write down your offering and the promises you make to your market.

 

3. Practice it, in front of associates and friends.  Ask for suggestions and improve on it.

 

4.Get everyone on your team to know it so they get it, feel it, mean it.

Every time you are out in any business or social situation give it.  At the beginning of business meetings, group presentations, (one slide), proposals, etc.  Turn on your market.  This is not something you read about.  This is something you do.  You are a highly, productive business player.

Have a great week!

You're not illiterate, are you?

Monday, February 7, 2011.

Einstein said, "What is the point of reading the world's greatest books? If you don't put their lessons to use, you are no different than the illiterate person who has not read them." I ask questions every week that I know some people won't take the time to answer, especially on paper.  I know knowledge is important but I realize it is only a ticket to the game of business.  You still have to play. In January, I have been asking you to consider the big picture.  What is it you aspire to create? What is important to you?  Why do you do what you do?  What do your customers want/need?  How do you change your customer's lives, etc?  Why?  You can't apply a micro solution to a macro problem.  If your business or career is poorly designed, it won't matter how you tinker with your present methods.  You won't succeed at the game.  The most important part of a good business design is having an offering that matches your clients' wants/needs and the operations component of your business is organized to support it.  In other words, you have everything in place to make it work and you are able to access the market with compelling stories, launches and marketing.  If you don't design these three things, nothing else will matter much. Recently a young 'want to be' entrepreneur asked me to look at his idea.  I asked why he thought he could take his idea and turn it into a commercial success.  He said "My passion."  I remember when I was 20, I tried to buy a confectionary store because it was close to the University, a beautiful riverfront park, and a big church -all good reasons for a broke, 20 year old.  Then there was the building of a fishing lodge at the mouth of a river that housed the world's largest speckled trout.  The only small issue was that the Natives of Hudson Bay would automatically be my 50% partners.  I could go on and on with ideas that I created by passion alone. Passion may be the source of some creativity but, until you have stared at the ceiling at 3:00 a.m. and wondered out loud, "How are we going to get through this financial mess?" you won't realize how important the design and execution of a well conceived business plan that attacks those three elements is.  If your business is growing and making profits, you probably have an adequate design and are able to pull it off with your customers and your people.  If you aren't growing, then you can't kid yourself.  You are what you are.  Success once is not ultimate success and even if you are winning right now, don't hold your breath.  Whether you are a budding entrepreneur or a 45 year veteran, you need to constantly take stock of what you do for the market.  Do you deliver the value your customer's demand and can you access the market to leverage, market, and sell like heck to grow your business? There has never been a better or more important time for a business of any size to get back to common sense and no nonsense, aggressive building approaches. Laziness and ego not allowed.  You can't expect old business-as-usual approaches to work.  We all know the world has changed, but you can't expect financial gimmicks or technological innovations to substitute for solid principles and the work it takes to implement them.  If you are willing to truthfully answer the necessary questions and take the necessary steps to improve no matter how different, drastic or difficult they are, you will succeed.  Competitors are growing up in your space.  Opportunities are born from other's wants and needs- and that is a fact.  You can match up with them and convince your market to buy from you.  I just attended a launch session for Microsoft's New Dynamic 2011 CRM.  We are in the middle of installing, training, etc. of this system.  What struck me is the detail given to the product so it helps organizations (its' customers) provide better client experiences, know their customers better, interact and engage clients, integrate with all electronic tools for better presentations, etc.  They designed the product this way because they really got to know what organizations, large and small, need.  I was impressed.  It just wasn't a technical improvement.  It was an improvement based on what could change their customer's lives.   Today, I read that the CEO of General Motors of Canada said, "Our arrogance is over.  We didn't listen and everyone knows what happened.  We were too concerned about our goals (staying #1) and not about our customers."  Wow!  How about us?  Don't leave January behind without examining how you can do the same.  In February we will begin to work on tactics to execute and boost performance. ACTIONS - Part 1 - January   What actions do you need to take to examine whether or not your offering adequately matches what your market is motivated to buy ?  What new offering could you begin to explore? What could be a possible story to the market?  Is it compelling? Now I realize that this is a macro action; but show Einstein that you aren't illiterate.  Take some time knowing the impact of your offering and begin to describe it.  Next week we will work on the story. Have a great week! Kevin D. Crone Your Monday Morning Mentor