Monthly Archives: January 2013
In talking to hundreds of sales managers, CFOs, CEOs and business owners over the years, I’ve encountered a somewhat disturbing trend. This trend is a behavior pattern that I’ve encountered when discussing my products and services. This pattern, while common, can be deadly.
The pattern I’m referring to centers around statistics and how these decision makers react to them. When statistics begin to go down, the first thing many of these decision makers do is cut back on expenses. The idea seems logical at first; if your sales and profit are down, you need to cut expenses to balance out the P&L statement. However, I believe it is a mistake, and sometimes a huge one. I’ve even seen many salesmen do this (and I have too in the past).
The first thing a company MUST do when facing a slight dip in sales or profit is PROMOTE. Economy is important, but you have to promote as a first action. If you fail to promote, your slump will either get worse or be prolonged. If you think about it, promotion makes the most sense. To promote means to make your business, product or service known and well thought of. If sales and profit are down, and you rein in your expenses and fail to promote, you rob yourself of the opportunity of garnering more sales and closing the deals that are close to completion. New customers who may only now be ready to buy or entertain presentations will not be able to find you easily. Old customers may not know what specials or other products you have. All of this means that the action that can directly add sales and profit on an immediate basis – PROMOTION – will not occur, and your business will continue to slump.
The same thought process works for individuals also. If your personal statistics are down slightly, you need to PROMOTE. Salesmen who experience lulls or dips in their sales need to promote and get their name and products out there. Work hard to get appointments, make more calls, send more emails, disseminate sales materials, etc. Other employees can get their statistics up by promoting and PRODUCING. Sometimes, if your job doesn’t directly relate to sales, the action step is to produce. For example, if the Accounts Receivable clerk has a responsibility to process invoices, send out invoices and receive payments from customers, each of these responsibilities can be measured in statistics. Then, if the number of invoices sent, checks in, etc., start dropping, she can Promote by calling people directly for payments, asking sales departments if there are any pending sales to invoice, etc. She can then Produce by getting those invoices out and checks in.
Promotion doesn’t always have to cost a lot of money.
It can be as simple as emailing your customers and prospects to let them know you’re there, or better, that you have a product or service that can really help them. Email blasts are good for broad contact, but you should also send personal, individual emails or messages that focus on a specific product or service for that customer. Make sure you tie in how that product will help that particular business or individual. Other forms of promotion are phone calls, cold calls (when done correctly), website ads, how-to You Tube videos, etc.
My company is positioned to help businesses in two ways: promotion and economy. We consult with customers and help them design one or more marketing pieces, such as flyers, postcards or promotional items. Our relationships with manufacturers helps us save money while promoting.
Our connections also help customers save time and money on their office supplies, toner and printer supplies, business forms and A/P checks. It is a good strategy to use cost savings on these items to pay for promotional actions.
If enough companies and business owners stopped complaining about the economy and just PROMOTED, we would go a long way toward turning our entire economy around, not to mention putting extra money in our pockets.