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The Strategic Sales Rep. vs. The Order Taker

A new article:

The Strategic Sales Rep. vs. The Order-Taker

Thoughts on Selling by Alan Walsh, Huntington Consultancy Founder & CEO

http://www.slideshare.net/awalsh8174/the-strategic-sales-rep-vs-the-ordertaker

A Lesson From Politics on Business Communication

By:  Alan Walsh, Owner, Huntington Consultancy 

Among the complex factors determining the outcome of the last Presidential election was a significant difference in communication style, methodology, and delivery between the opposing camps. While The Republicans were communicating “lofty thoughts” and “civics lessons” that were issue-focused, the Democrats crafted a set of communications that were “short & sweet”, simple, jingle-istic whenever possible (developing a word or short phrase that would be instantly recognized as representing a more complex thought or concept), and focusing on core hot-ticket issues of voter self-gratification (as determined from polls, town hall meetings, and other sources).

As the success of their communications grew, the Democrats’ messages were presented with more & more of a lofty air, implying “We Get It..They Don’t” and instilling this belief in their adherents to psychological advantage. The Democrats made better use of the internet in getting their messages distributed; thus making better use of their campaign funds and drawing voters into a more personalized relationship. Often, adherents conveyed the message for the campaign.

In other words the Democrats made best use of, and appealed the most to, basic tenets of human nature; in the most effective way.

Before anyone gets their political “underwear in a knot”, let me comment that this is not a political manifesto for –or- against either party. The Reagan campaign in its time did much the same thing to their hapless Democrat opponents. Reagan was a master at reducing complex thoughts into simple, popular, easily-remembered phrases & jingles and planting them in peoples’ minds.

The Reagan campaign used this communication strategy effectively when the internet was still pretty much a “gleam in its daddy’s eye”. We all recognize now that the internet age has brought about a revolution in the style and delivery of communications; opening up whole new realms of possibility & challenge, and lending exponential power to the communication methods described above; if done properly. The Obama campaign made good use of this added dimension.

Businesses which want to survive and thrive would do well to absorb these lessons into the fabric of their communications.

 

  KEEP IT SIMPLE STUPID

The time-honored “KISS” principle serves well in guiding the crafting of effective business communications.

Simplify..   Shorten:

We’ve all watched company ads on TV that left us scratching our heads afterward about what they were trying to say – or sell. No offense BASF, but I remember an ad campaign of yours that left me saying – “Huh”? Lofty, multi-faceted communications just don’t work well; especially in this day & age. “Manifestos” are quickly ignored and forgotten.

Likewise we’ve all seen ads where they tried to get “cute” or “clever” with the result that the “trick” was a poor fit to the message, or the message just got “lost” in the nonsense. I can’t think of one off the top of my head, but there have been many.

Conversely, we’ve seen ads that communicated strong messages well with very few words or none at all. Budweiser and Coca Cola come to mind.

We live in a “bullet-point” world now. Complex messages tend to get lost in the background clutter, and people don’t have the time or patience for them. They especially don’t appreciate communications that are drawn-out, vague, or communicate above or below them.

Communicate in ways that fit in with the society’s contemporary language usage. People relate better to language that’s in common use.

“Jingle-ize” whenever possible. If you can establish a simple word or phrase to represent and replace a complex thought or concept in the customers’ minds, it makes communication simpler and you tend to gain “ownership” of that talking point; almost as if you copyrighted it. Whole business identities and brandings have been built around such “jingles”.

Know Thy Customers:

The key element in effective communication is understanding the “talking points” that resonate with your customers on a personal level. Society has taken on a much greater personal gratification / quality-of-life orientation than in past generations; which were burdened with global war, nuclear-age cold war and sacrifice for the greater good. A different societal mind-set existed then. Personal talking points that would have had little effect, or been looked on as being “self-centered” by past audiences, now resonate strongly with the new generation. It’s just a reflection of the times, but important to understand for business communications going forward. Even if you’re selling business-to-business, try to reach the key decision-makers on a personal level; and give them reasons to justify with their own people that they made the right decision buying from you.

Businesses are more & more recognizing this “personal” element. For instance, aerospace companies have been running ads that are crafted as “civic messages”, touting “defense and security”, to build public goodwill and cement themselves in the public’s minds as “key players”. Northrup Grumman comes to mind.

Do the research.

The internet’s a great place for any business, especially a small cash-strapped one, to see what works and what doesn’t. In fact, the internet is just as useful for research as for communication. Just go on Facebook or a similar site and see what’s attracting “Likes” and “Comments”. The values, interests, and personal desires of society are laid out for our edification on a daily basis; expressed in their own words. So are the communication efforts of competitors. Likewise, you can go to places like LinkedIn and see what other business people are saying & thinking. It’s all there to observe.

Get to the Point

Any ad man will tell you that certain styles sell. Without making a qualitative judgment, I’ll just note that “Sex” still works well if used properly (even though certain segments of society are increasingly finding it repugnant} –and- “Friendly.. Touchy.. Feely.. Warm.. Safe.. Secure” is taking on increased importance; amongst other styles.

Whatever “flavor” you want to give your communications, you’ll be wasting your breath if you don’t get to the point; quickly. You can have all the “sex symbols” or “friendly, warm, fuzzy style” you want, but if you’re not appealing to a real and direct want or need, and doing it with a quick, simple, memorable message, you’re wasting your time and the customers’.

Get Their Attention, and Give Them Something to Remember

Sometimes, it’s just not possible to get across everything you want to say with a simple message or “jingle”. In such cases, use the simple message or “jingle” to capture their attention and draw them into the more complex message. You’ve got to get their attention before you can tell your story. Plus, the simple message or “jingle” will be remembered way after the long message has faded; especially if you finish with it. Reagan did this well. He’d start off with jingle-istic phrases and work into more complex statements in his speeches; finishing off by reinforcing the jingles. Later, when the long speech was forgotten, people would be quoting the jingles.

Differentiate Yourself

A car is a car, but lots are sold for their “safety”, or “sexiness”, or other “fuzzy qualities”. Those “qualities” are often planted in customers’ minds with well-crafted messages and images. By associating your products or services with desirable or friendly “qualities” in customers’ minds, you will “own” those “qualities” and differentiate yourself; carving a unique niche.

Just as in politics, you’ll have competitors making their own offerings. Sometimes those offerings will be stronger than yours; sometimes they’ll be the same. Where you can, stress those offerings of yours that are unique and/or stronger than your competition’s. Otherwise, try to build an aura that disguises or downplays your weaknesses and gives you the edge on the common points. Politicians do this to each other all the time; usually through some “likeability” factor. If you’re personally attracted to the politician, you’re likely to overlook flaws and weak “fighting points”.

Use Visuals

“A Picture Says a Thousand Words”. A single image can convey a whole message. A set of images can attach “qualities” openly or subliminally while you’re stating your main message; or can be your main message. Images are “eye candy”, and are usually well-received. They fit in well with the concept of simple, rapid communication. They can “define” your brand. Use them to advantage. Just consider the image at the start of this article. It defines the topic instantly and attractively.

Credit & Collections: The 500 LB Gorilla in the Room

By: Alan Walsh, Owner, Huntington Consultancy

www.huntingtonconsultancy.com

info@huntingtonconsultancy.com

(714) 465-2749

 

A Topic That Makes People Uncomfortable

Credit & Collections is a topic that makes business people grit their teeth. By human nature, they instinctively shrink away from it.

Denying credit runs counter to our sales-oriented business mantra.. and few people like to make collection calls.

Sales forces resent the whole function as an intrusion on their selling activities and customer relations. They want no part of helping in the collections effort for fear of damaging their sensitive customer relations.. they want unlimited credit extended to everyone.. and they fear & resent the Credit Department contacting their customers.

Collections people tend to be shunned, and feel unappreciated. Senior managers are forever trying to find ways to blunt the Credit Department’s “teeth” for fear of damaging customer relations; and often intercede inappropriately in collection efforts.. short-circuiting the process and damaging the credibility of the Collection Representatives in the eyes of the customer. General Managers are usually sales-oriented, so they give a much more sympathetic ear to the Sales Staff than to the “evil” Credit Department.

Small businesses are especially sensitive to Credit & Collections.. because they covet every sale.. their credit review/assignment resources are usually slim to none.. and the owner is often the one who has to pick up the phone & ask for money because there’s no one else to do it. They find it awkward & painful to shift from selling-mode one minute –to- collection-mode the next. Many businesses have failed because the owner just couldn’t bring him/herself to make the hard calls. Turnaround experts make big fees taking control of businesses and doing hard collections the owner can’t emotionally deal with.

Yet Credit & Collections is necessary in every business. Even internet companies face the prospect of having customers challenge credit card transactions; and then having to justify getting paid to the credit card company.

 

Uncollected Receivables Raise Havoc to Company Financials

The damage done by an uncollected receivable is wide-spread. Not only does the company lose all the revenue to cover the money spent buying/producing the products & services and putting them in the customer’s hands.. but also the revenue that would cover the proportionate portion of overhead expenses, and the profit piece, are lost. Plus, most companies still pay the salesman a commission despite the fact that the sale was never collected.

 

Improving the Credit & Collection Function

No business can stand to have any significant losses due to uncollected receivables for long and hope to survive, and yet Credit & Collections is usually a less-then-optimum function in most companies; relegated to some corporate back-water. That having been said, this article presents some practical suggestions based upon experience by which companies can improve their Credit & Collections efforts.

  

The Corporate Culture Must Change

From the President/CEO on down to the people making the collection calls, an attitude and culture change is essential. This is done by recognizing what a sale really constitutes.

A sale is a mini-contract. You agree to deliver goods or services to the customer within a certain timeframe, at a certain price.. and the customer agrees to pay a certain amount to you within a certain timeframe. Failure to pay constitutes breach of contract –and- theft.

All communications with the customer regarding the unpaid receivable should be made in an unemotional, fact-based, even-handed manner; stressing the contractual business obligation. All communications with the customer should convey a consistent message; without short-circuiting interference being introduced at any level of the company. If the company decides for whatever reason to “eat” –or- forgive the debt, it should be done in a manner that doesn’t undercut the credibility of the Collections personnel in the customer’s eyes.

 

Get Sales Into the Picture

The organization that needs to make the biggest cultural change is Sales. They need to be made aware that they’re part of a bigger organization.. that uncollected receivables are hugely damaging.. and that they have a role to play.

 

The Expanded Role of Sales

Sales is the front-line of the company. They’re the company’s eyes and ears in customer relations. There’s much they can and should contribute to protecting the company.

• Sales physically visits customers, and is in a position to make observations that can be used in making credit extension decisions; such as the condition of the business.
• Sales can sniff out customers who look likely to default and/or disappear.
• They can advise Credit promptly when the customer actually closes their doors and/or vanishes.
• Sales can go out and pick up checks. It’s much harder for a customer to dodge unpaid debts when there’s someone standing at their desk.
• Sales can intercede when the customer isn’t answering collection calls.
• Sales can convey Credit messages from the company to customers in a close and personal manner.
• If a customer disappears, Sales can make local inquiries to get clues for tracking the customer down.
• Sales usually knows how to navigate the customer’s internal organization better than Credit.

In severe cases, company management should be prepared to make customer visits too.

 

Giving Sales Their Wake-Up Call

So, given the reality that Sales is the natural enemy of Credit & Collections, how does management elicit their cooperation?

A very direct and effective method is to pay their commissions based upon on collected sales. No Collection.. No Commission. Suddenly, collections become an important factor in their lives. They still won’t like it, but it will force a fundamental change to their mind-set. There’s nothing like hitting someone in the pocketbook to get their attention. Besides, why should they get paid for a sale that was never fully consummated?

It would also help for someone from Finance & Accounting to make a brief presentation to Sales showing the ways in which uncollected receivables damage the company. Most sales people are not very sophisticated in such matters, and need to understand it. They need to comprehend that their prospects are tied to the overall health of the company.

 

Management’s Wake-Up Call

Many companies pay bonuses to managers based upon company performance. But bad debts never seem to figure into the formula. Time for a change. There should also be some clear and coherent rules as to when managers can intercede in the credit & collection process; and how.

Credit & Collections is a Whole-Company Concern

At the very least, Credit and Sales should be meeting periodically to discuss customer statuses. Problem-accounts can be discussed and strategies for joint action devised. Sales should also have the opportunity to discuss the possible increase of Credit Terms for good customers who represent increased sales opportunities. I would expect the President/CEO would be paying attention to these discussions, if not actually participating.

Why do most companies restrict Credit Personnel to working from their desks? A surprise strategic visit to a past-due customer by a Credit Rep. can be very effective in shaking loose money and/or achieving a payment plan. Face-to-face contact is much harder to dodge than a phone call; and psychologically powerful. The Credit Rep. can also visit a new customer to gather information on determining appropriate Credit Limits; or reviewing the limits on an existing one. Besides, face-to-face contact establishes relationships.

In sticky “big-bucks” situations, perhaps the Sales Manager, and/or the President/CEO should be paying the customer a visit. Ratcheting up the attention in this way can be extremely effective.

Know Thy Customers

Of course you need to understand your customers and adjust accordingly. For instance, if you sell materials to a customer who does contract work, he’s not likely to get paid for his work until his contract is complete. When he gets paid, you get paid. Your payment terms will mature, and then he’ll start stalling you. Unfortunately, most aren’t sophisticated enough to bring this situation to your attention up-front, so bad relations ensue. This is an opportunity to become proactive and work out realistic terms that enable your companies to work together on a long-term basis; building loyal customers.

Turning the Tables.. Why Should Sales Have All the Fun?

Credit also needs to take the big-picture view and look for opportunities to promote the company with the resources they have at hand. For instance, years ago I developed an inventory-financing program that enabled new customers to acquire inventory, and existing customers to acquire inventory for expansion, on extended terms. The customer would be required to sign a lien against all their inventory until the debt was paid. The program was hugely successful and enabled us to increase our business by about 1/3 over two years. Only two customers defaulted, and we were able to recoup enough inventory to keep our bad debt losses to a pittance. Customers could use the inventory to open new stores, and have time to get them self-sufficient before the debt came due. It was a win-win for everyone, and of course made Sales very happy..  as well as building loyal customers.

Conclusion

There are other things that can be done, but this article should get the main point across and provide some food for thought. Credit & Collections should be made a whole-company concern, because the whole company is impacted.

A Critical Attribute to Look For When Hiring

By: Alan Walsh, Owner, Huntington Consultancy

www.huntingtonconsultancy.com

info@huntingtonconsultancy.com

(714) 465-2749

I’ve hired a lot of people in my career. My success rate has improved substantially over time. There’s much to be said for learning and seasoning from experience.

Of course one must evaluate the candidate’s specific skill & talent sets, and background checks will sometimes (not always) reveal useful information, but then we get down to the qualitative factors – those elements of a candidate’s makeup that signal a likely winner.

Much has been written about this, and employers look for many different things. Interviewers ask a variety of questions to draw people out. Tests abound for the same purpose. But over the years, when taking into account all available input, I’ve found that one factor rises to the top as a strong signal of a candidate’s suitability.

For me, a candidate’s CURIOSITY has been a very telling personal attribute which has served me well in separating the “wheat from the stalks”.

I always look for people who are naturally curious. A wonderful set of traits usually comes along as a package deal.

Many humans aren’t very curious. They move through their lives in a rather mechanical manner, doing the things required to survive and not spending a great deal of time observing or assessing the world around them. Their work tends to reflect this posture.

Then, there are the curious. It seems to be built into their DNA. They’re forever looking around and questioning the world they observe. It seems to be so ingrained in them that they’re not even aware of their differentiation from the rest of humanity. It’s not that they’re cynical and forever challenging the world. On the contrary, they tend to be very positive and eager to learn.

• The curious are alert, attentive, and observant.
• They think for themselves, and accept little at face value.
• They’re self-confident and independent; which is not to say that they’re poor social fits. That has nothing to do with it.
• Because of their eagerness to learn, they’re usually brighter and more knowledgeable than their less curious peers.
• Their work reflects a tendency to select the paths and methodologies that make the most sense and produce the best results.
• They tend to communicate along clear, rational lines.
• They find weaknesses and fix them.
• They identify opportunities others can’t see.
• They usually require less motivation or direction than their peers.
• They want to expand their minds and grow.
• They tend to be fun and interesting to be around.

There are exceptions to any situation, and certainly not all curious people possess this entire kit-bag of personal attributes; but the trend has been so strong in my hiring experience that it stands out as my most reliable single qualitative measure.

Of course, I’m not referring to those who are forever annoyingly asking “Why”, like a two-year old. Those people just have maturity issues and should be avoided.

When I think of the quintessential curious person, I think of Michelangelo. He was raised in the home of a minor bureaucrat of no particular note, and he spent most of his life living on the financial & political edge at the fickle mercies of the Church, and yet his curiosity led him in directions that culminated in his being recognized along with Leonardo Da Vinci as a consummate Renaissance man; with accomplishments that span the ages.

We can’t all rise to the level of Michelangelo, but I’ve observed that the curious tend to have the same “fire in their bellies” that drove him. They tend to surprise pleasantly.

The curious don’t fit in everywhere. Many entrenched bureaucrats want “drones”, and consider the curious to be annoying or threatening. I’m not one of those managers. Of course, the curious find such bureaucracies choking, and usually don’t stay for very long.

If you’re a hiring manager who shares my vision of what constitutes a valuable employee, I highly recommend that you include a “curiosity assessment” in your portfolio of interviewing tools. You won’t be sorry.

Cashflow is King

New article from Alan Walsh: Cashflow is King.

Click to go to article on Slideshare

Free Articles on Business, Economy, and Career – Primarily Targeted to Entrepreneurs and Small Business Owners

For some time now I’ve been posting articles on Slideshare primarily targeted to Entrepreneurs and Small Business Owners. There have been many views, but the real indicator of value has been the 1,000+ downloads readers have done.  Feel free to browse and find articles of value to you.

The Great Paradox of the Digital Age: Finding Wisdom

Ron Rosenbaum, in a recent Smithsonian Magazine article, captured the essence of the topic eloquently.

To paraphrase:

“All the great thinkers of all the civilizations past and present are one or two clicks away. The great library of Alexandria, nexus of all the learning of the ancient world – that burned to the ground – has risen from the ashes online.  And yet - here is the paradox – the wisdom of the ages is in some ways more distant and difficult to find than ever, buried like lost treasure beneath a fathomless ocean of online ignorance and trivia that makes what is worthy and timeless more inaccessible than ever.”

“The historically illiterate, internet intellectuals, and hucksters of the purportedly utopian digital future are decapitating our culture, trading in the ideas of some 3,000 years of civilization for … Buzz Feed.”

Quoting Goethe … “”He who cannot draw on 3,000 years [of learning] is living hand-to-mouth.”

An endless choking mass of “info” spews forth from every digital device; simultaneously presenting unparalleled opportunity and challenge.

Hordes of the mentally hungry prowl the net, seeking instant gratification.

“Instant experts” pop up everywhere.

In all this swirling mass lie the snippets that separate the informed from the deluded.

As has been the case since time immemorial, the hope and opportunity of each individual lies in sorting through the “noise”, seeking the pearls, assessing, and thinking.

As always, this is a challenging but worthy enterprise with the reward of rising above the uninformed mass.

As always, knowledge is built upon knowledge and must be taken in steps.

Of course, one man’s wisdom is another man’s folly; which is where our individual discriminating judgement comes into play. Even the great library of Alexandria probably contained it’s fair share of ancient BuzzFeed.

Don’t let yourself be lulled and mentally dulled by the ever-growing mass of digital noise that increasingly invades our lives. Despite our best efforts to develop artificial progeny, the human mind is still the most powerful tool we possess. Use it as your “Alexandria Librarian”. Don’t “live hand-to-mouth”.

Good Hunting,

Alan Walsh, Owner, Huntington Consultancy

Marketing .. The Neglected Element

The ether is filled with companies and individuals offering marketing services of one form or another.  Most apply a “shotgun” methodology.

Every successful business initiative requires some research, forethought, and planning.  This is especially true in developing a marketing strategy.  Unfortunately, far too many businesses neglect the most important element of all .. identifying their core constituency.

Shotgun marketing may work in some circumstances, but in most cases you’re much better off identifying your core constituency and tailoring your marketing to them.  Even if your “shotgun” marketing message does cross their paths, they will likely ignore it. People are attracted to businesses that reach out to them on a more directed and personalized basis.  You end up wasting time & money and turning off the very target group that would do you the most good.

There’s never been a better time to address this key question.  The internet is filled with resources to help you in your search.  Be creative, and take the time.  It‘s worth the effort.  If you already have a field sales force, are they canvassing their territories for appropriate candidates?  Have you defined your desired customers sufficiently so that they know what to look for?  If you use independent marketing reps., how well are they identifying and penetrating the desired market segment?

Who are your core constituents?  Where are they?  What is their nature?  What makes them unique?  Who are their key players?  Which are the most important targets?  What do they really want & need?  Who are your competitors, and how are they reaching out to the same market segment?

The answers to these and related questions will not only help you target the correct constituents and select the proper media to reach them .. but will guide you in selecting the tailored message that will “ring” with them, and will help you in determining how viable your product or service offerings really are.  Sometimes you may think you have the ideal “mousetrap”, but until you properly study your core constituency you don’t realize that some tweaking is necessary to truly “sell” them.

Once you’ve penetrated your core market, then you can go back to the drawing board and determine other peripheral constituencies that would be worth reaching out to .. and how to go about it.  Undoubtedly the method and message used in reaching out to these peripherals will also be customized, but the process of identifying them is the same.

Good Luck.

Alan Walsh, Owner, Huntington Consultancy

Interesting Facts About U.S. Small Businesses

• There are more than 22 million small businesses in America.

• Small business accounts for 99% of all U.S. businesses.

• Small businesses employ 53% of the private sector workforce and contribute over half of the nation’s private gross domestic product.