Archive for June, 2010

Jun 29 2010

Your last great experience?

Published by msallis under Great marketing stuff

Can you remember your last great experience?  I thought I could quote mine - but after a great first interaction the company let themselves down on every future action!  I think every company has an element of great service - but is it consistent? Is it reliant on key members of staff or embedded in the culture of the organisation?With increasing expectations and the ability to tell the world what you are thinking,  ensuring that your customers come away happy is now essential to the business strategy. With the increase reliance on technology, the personal touch can be lost, with the processes driving the experience and not the customer!Take time to listen to your customers, not just on ‘tick sheet’ questionnaires, but talk them about what it feels like to be a customer, what are their motivations and issues. A recent conversation with an outpatient  identified that his biggest concern was ‘being forgotten‘ how simple to solve by staff just reassuring the waiting patient!

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Jun 10 2010

Motivation in Sales

Published by rennieg under Sales Management

Motivation is usually the hottest topic on sales managers’ agendas. However, we find that the principles of motivation are frequently not fully understood. In this post I hope to clear away some of the ‘mist’ that often shrouds this critical issue for all sales managers.

Definition of Motivation

Motivation is the means of encouraging individuals to move towards something they value. In a sales situation, it is how salespeople are encouraged to improve their performance and to strive towards a specific objective or target.

Motivation can be either positive or negative in the way that it works: Positive when it encourages the movement towards something desirable; negative when it encourages the movement away from something undesirable.

Motivation – the positive view

It is thought that positive motivation is more powerful than the other kind: Pushing someone into water will certainly get them swimming but will hardly create a passion for the water.

Similarly, threatening people might work in the short term, but is unlikely to produce sustained effort over the longer term.

Is the objective desirable?

Not every objective is equally desirable. Financial rewards are usually desirable in sales, but other objectives can be equally important.

Such things as status, social involvement & self-development can be equally motivational in a work situation and should not be ignored.

What are motivators?

Frederick Herzberg identified that providing a sense of achievement, offering recognition and giving responsibility are all strongly motivational, whereas company policy & working conditions are merely Hygiene Factors - elements that do not motivate on their own account, but which can lead to demotivation if not handled properly.

These Hygiene Factors need therefore to be removed, to reduce any possible demotivation, before concentrating on those factors that create motivation.

Is the objective achievable?

The best performers prefer objectives that stretch them, but only by a moderate amount, whereas weaker performers accept average performance or worse still, set themselves high objectives that they can never achieve.

The implication is to recruit people who respond to fairly challenging goals and to set targets they can achieve through reasonable improvements in performance.

Conflicting targets?

Too many targets can lead to lack of focus on the most important objectives. The more targets that exist, the more likely they are to conflict.

A good example is when managers stress the importance of teamwork, but then only to reward individual performance.

Stepping stones

The importance of breaking down objectives into a series of more digestible targets has been well proven. A series of monthly objectives is more motivational than a simple yearly target.

The implication is to chunk down objectives into those that can be achieved over a lesser time scale. Their achievement will also generate a momentum of success

Do the necessary capabilities exist?

An obvious one perhaps, but without the necessary abilities, no amount of motivation can raise performance.

An important implication is to ensure that the appropriate knowledge, skills & attitudes have been identified & that they form the basis of your training & development plan.

A link between effort & reward?

Many sales incentives schemes break this rule. Targets are often seen as unfair, or slanted towards certain individuals.

A traditional problem in sales is to set territory targets that bear no relation to the actual business potential of the territory. This can lead to some people returning exceptional numbers by just turning up. Targets must reward effort, not just lucky geography.

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Jun 10 2010

The price is right: or the importance of protecting price

Published by admin under marketing strategy

With the sound of belts tightening already echoing throughout the land, now more than ever is the time to make sure that your price position is protected. It’s true that cutting price is one way of giving your customer better value, but this can be a dangerous route to take - particularly if it is actually unnecessary. It comes down to understanding just how your customers perceive value, before you start offering them “more.” As marketing consultants some of our clients have in the past looked to offer a product or service at a cheaper price, but have not necessarily seen a sudden surge in sales. They had not understood the needs of their real customers - not the purchasing department - but the people who were actually using their service or product. And this made is difficult for them to understand the real value of the product or service they were offering.

Value comprises a mix of costs and benefits. Costs not only consist of the actual price paid, but also perhaps the potential cost of a late delivery or faulty product. Understanding how you can help your customer with all the “costs” associated with buying from you will give you more of an insight into how much real value you can offer. As for benefits, there are of course the functional “it does what it says on the tin” benefits - product capabilities, performance etc - and also the more ephemeral emotional benefits such as confidence in the brand and its acceptability to customers.

It is in really understanding the benefits you are able to offer to help your customers business that will enable you to stand out from the crowd and take the pressure off price. By being able to demonstrate the real value of each of your benefits to your decision-makers, you should be able to protect your pricing and avoid an unnecessary knee-jerk reaction.

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