"Talk Is Cheap"

Talk is cheap… but invaluable.

Sadly, many of those wishing to buy, invest or do business at present are finding it hard to find someone to speak to.

Outward bound telephone calls from companies have fallen in recent times as confidence among staff members has plummeted and anxiety levels have soared.   This is particularly noticeable in the broad finance sector, including professionals in financial planning, mortgage broking, stockbroking and banking.

Clients and customers appear to be keen to discuss, not accounts, but accountability.

Refreshingly, the better performing businesses are those which are encouraging and facilitating all their people to be open, accessible to and engaging with suppliers, associates, customers and loyal clients.

The delineation between frontline service providers and background support staff has been removed. In these turbulent times everyone, yes everyone, is part of the marketing, sales and service teams. This is a very salient message for those in credit management.

NAME CHANGE

“A change is as good as a holiday …”   “A different perspective provides new insights”

The underlying philosophies of these statements are the driving forces for an increasing number of management teams. They seek to embrace a progressive strategy with the intent for an inclusive culture to be fostered, with attendant enhancements in performance, bondship and stability among staff members.

For example, the title, “credit department” has been changed to “marketing support”, or similar.

Key performance indicators have retained the pre-eminent need for financial prudence but not complemented by a recognition that in the contemporary global business environment sales and marketing are impeded without effective, supportive and positive credit policies and practices.

Unquestionably credit managers and officers can and will make it happen. It is they who can address and redress widely held myths which have little or no foundations of truth. Among such are a belief by many existing and prospective clients   that no-one is lending and that all credit terms are being wound in on all clients.

Clearly, there is a need for, and countless advantages to be gained from a re-education and reassurance program for all existing, prospective and post clients.

The lessons are simple:

•  Without credit, business slows to a tedious, unprofitable grind.

•  Without re-education and reassurance, substantial sales opportunities are lost – primarily because of ill founded perceptions.

One fundamental in establishing and sustaining relationships is the need for a strong personal component.

Credit, along with service and support people should be more than just the voice on the end of the telephone line or the initiator of a stream of “payment demand” emails and SMS messages.

A conspicuous, personal presence in the marketplace facilitates and promotes greater communication. Not surprisingly, when people talk, the topic often turns to business and as a consequence sales, profits and increased customer satisfaction evolve.

Indeed, it should be desirable, if not mandatory, for credit people to accompany sales and marketing representatives to the premises of clients at periodic intervals. The costs incurred are a foundation investment in long-term relationships and the well documented lifetime value of customers.

Above all else, the introduction of a credit and/or support person in the regular sales calls of representatives adds to the justification for the visit and a new focus on issues addressed.

It was former U.S. President Woodrow Wilson who said:

“The business of business is business.”

In the current turbulent environment it is not necessary, nor possibly appropriate to “talk up” business. Talking business will suffice. The benefits are direct and indirect, quantifiable and profitable.

Research has revealed that those businesses which maintain regular, positive content through multiple channels (read, different staff members) are consistently among the first paid.

This highlights further, the strategically important role they can and should be paid by creative credit and other “backroom people” who, correctly, identify their primary function to be marketing and sales support.

Image the impact that is achieved by credit people who personally phone clients who settle outstanding accounts within the standard credit periods to express their appreciation and gratitude.

What a refreshing change to overbearing letters and telephone calls of “payment demands”.

Modern business is like politics. Few people are enthused or focussed on the processes of production or legislation. Interest tends to centre on the outcomes, advantages and benefits. In both scenarios a widespread need exists to repackage the entities, individuals, products and services. That is called marketing.

A change from credit management to marketing support has a nice ring to it.

Or is that the cash register recording and banking another sale and establishing a closer relationship?

"Cannibalism Indigestion"

Cannibalism is on the rise around the world. There is evidence of it everywhere… in retail, services, finance, manufacturing, rural, technology, media and even in mining.

It’s dog eat dog.

With offers of 50% off retail and up to 5 years interest free, the behaviour of some is rabid.

The small but rapidly growing drift to online sales is indicative of a broader and deeper evolving trend. In a period of stagnate, if not declining sales, the incremental factor of online sales is further evidence that the broader retail sector is cannibalising itself. Significantly, the increasing use and influence of the internet is not generating more sales. In most, if not all cases, it is simply redistributing the sales and market shares. This is accelerating the importance of cost and overhead reductions.

A widening acceptance of the theories of Charles Darwin may be appropriate, with implied endorsement of the need for structural change, and fast.

CONSOLIDATION AND RATIONALISATION
Indigestion in a number of sectors will soon become apparent to the marketplace and consumers as the acquiring entities are made to swallow many rationalisations and consolidations of businesses, brands, products and services.

Absorbing, integrating and in some instances dispelling cultures will be difficult. And one is not talking of yoghurt. The dominant force in those scenarios will inevitably emerge with enhanced returns, market presence and positioning.

KNOW THY MARKETPLACE
A growing number of astute business leaders are dedicating resources to the identification and analysis of opportunities for mergers, acquisitions and strategic alliances with competitors, substitutes and potential collaborators. For others the need to address the issues of exit strategies and succession plans have become paramount.

The risk profiles associated with such initiatives can be and often are less than business development strategies which involve increased capital expenditure, larger advertising and marketing budgets and expanded inventories.

Capitalising upon and realising the potential will be dependant upon business owners, leaders and managers being objective, detached and strategic in their evaluations of the propositions. Territorialism and unwarranted self-interest defensiveness will be both unfortunate and inappropriate.


THINNING RANKS
The current market circumstances are unique. Projections of outcomes which are based on history and past experiences may have little relevance.

Certainly, middle ranking executives will be among the sacrificial lambs. However, it will be the senior positions that will be thinned, in some instances aggressively.

Stronger leadership will evolve and will be valued by financiers, analysts, suppliers, associates, clients and consumers.

Fragmentation and replication, which have been characteristics of many market places during the past decade, will decline. This will provide for scope and flexibility for business owners and managers to more effectively promote, position and utilise brand marketing principles to secure and sustain market advantage.

During periods of volatility, clients and customers seek out the reassurance of recognisable and trusted brands. As a consequence, advertising messages for brand leaders will be more penetrable and effective. Advertising expenditure can then be reasonably reduced, and a greater concentration of the media utilised be effected.

In short, marketing initiatives will be more effective, and efficient, for some.

It is reasonable to expect that these projections will materialise over a period of 18 to 36 months. After that, most growth will be organic as individual brands, departments and franchise operations recognise and pursue unfulfilled potential.

CAST OFF TALENT
For many of those talented senior people who will be deemed to be casualties of the cannibalistic processes, the scope and temptation will be to exploit their creative and entrepreneurial skills and experiences.

And so from 2011, as the credit crisis retreats, confidence and trust emerges and the true nature of capitalism will come to the fore, a new generation of “start-up” businesses will assert its presence.

The huge amounts of capital within sovereign funds and superannuation accounts will quickly recognise the talent, potential and scope for growth within these entities, which are or will be led by strong, experienced and enthusiastic but previously misplaced and displaced business professionals.

CONCLUSION
Survival today and in the immediate future will be enjoyed by those who are the fastest, fittest and most determined. (The Olympic spirit transcends all boundaries)

Strong corporate cultural bonds will enhance resilience, flexibility and responsiveness.

Cannibalism need not and should not be evident with the ranks.

Change, What Change?

Some things never change,

A lot of businesses and executives get caught up with the challenges of change.

The current dynamic, competitive and volatile market place can be adrenalin pumping, elevating and, yes, in many ways rewarding.

New strategies are formulated, documented and implemented. Complementary, short-term and local tactics are being introduced with the attendant benefits of focussing the attention and actions of frontline staff members. Just to be part of the process is motivating.

New products, services and initiatives contribute to the sense of heightened energy. There is a new story to present, product knowledge to be learnt and competitive advantages to be exploited.

Typically, care is taken to ensure that all staff members are informed, enthusiastic and “on board” as the company “moves forward”. Staff meetings, business development workshops and launch events extend to the prevailing sentiment of importance and progress.
______________


Suddenly, reality dawns. Unexpectedly, unwanted and disturbing statements from existing, prospective and past customer and clients register.

It becomes evident to all within the company that……..

The one constant is not change.
It is the customer’s perceptions.

The train has left the station, but the customers remain on the platform.

Nothing has changed. Customer images, expectations, preferences and intended buying intentions are founded on past and often long standing experiences, references and mindsets.

Clearly, they have been left behind, uninformed, uncommitted and ignorant of any perceived or real new advantages and benefits.

Advertising, promotions and point-of-purchase merchandising will not be sufficient to “move the world” for many customers.

Such communication is typically dismissed as being irrelevant, unless and until the customers have been informed, involved and educated, usually over an extended period of time.

Strategic, long-term changes in image, market positioning, product ranges and services are seldom, if even, time specific events. Therefore the process of osmosis needs to evolve and with it, the consumers and market place at large require education, reassurance and redirection.

Single shot, product driven advertising will not achieve the set objectives. It is probable that a single digit percentage of existing, prospective and post clients will consider the message timely or relevant. Thus, the communication will be ineffective.

Rather, an integrated schedule of ongoing communication through a number of media, including telephone calls, personal visits and mailed invitations to visit and make contact will foster and be a catalyst for target groups and individuals to initiate contact.

In short, presume nothing. That which indulges and embraces the attention, thoughts and actions of those within an entity may have little relevance or recognition among those who are external to the company, for instance.

Consideration may be required for a campaign which will “unlearn” customers, distancing and making redundant past practices, relationships and expectations.

It is a sobering realisation that many lost sales opportunities are founded on the consumer statement :

“But, I thought………..”

Little did they know……… period.

Blame for such cases resides with the change agent and the changing entity.

With a changing world, some things remain the same. Those who have attended class reunions after a lapse of 25 years will know the experience. Suddenly, one finds oneself surrounded by aging, lined and often rounded individuals in their 40’s.

It was not what or who you remember. Life and people have changed. The memories remain……… constant.

The circumstances are mirrored in countless, if not all, business scenarios. Therein lies the causal factor for lost sales, a lack of contact, an ebbing of repeat business and loyalty.

Relationships need to be nurtured if they are to grow and develop, underpinned by ongoing communication.

Gaps in perceptions and expectations are often a consequence of gaps in or an absence of communication.

Perhaps recognition is required for the need to change mindsets, buying patterns and preference by a calculated and disciplined program of communication.

The alternative of lost revenue, profits, repeat business and referrals is not evident in the balance sheet or profit and loss statements. However, the reality weights heavy in many business and management teams.

Therefore, a true and comprehensive understanding of the concept of stakeholders needs to be fostered and promoted among all people in business, with due recognition of the presence and importance of consumers.

So, yes, the one constant in business life is change. However, with consumers it wont necessarily happen on its own.

Sales? Save Your Money

“Where is everyone?”

That must have been the plaintiff plea of countless Australian retailers and business leaders during the traditional, annual June winter and stock take sale period.

Many retailers opened their doors to empty or near empty pavements.

Television news crews, fulfilling assignments to capture the teeming and surging crowds, returned to their studios in search of file footage from past events.

The nationwide retail sector was having a party, but few were accepting the invitation. Where was Corey when you needed him !!! Guest appearances on “Big Brother” were doing little or nothing to the ratings or the bottom line.

Some legal practitioners have made money. They provided the consulting advice that a sale is an “invitation to treat”, as distinct from an” invitation to a treat!”

Consumer indifferences to the sales was palpable. Sales event fatigue was evident everywhere. Moreover, consumers have become sensitive to the reality that there is no or little financial disincentive when they did not respond to a particular sale. There was the common attitude that there was always tomorrow, next week or next month, when the same retail outlet, its competitors or substitutes would most probably be conducting a promotion or similar event with equally attractive offers.

The figurative muscle-power and deep pockets of major national retail chains were funding bigger advertisements with bolder headlines, offers of up to 50% off recommended retail prices and the availability of five year interest free loans. It was all to little or no avail.

Comparative same period sales receipts were down or at best, flat. Given average and typical retail price increases during the preceding 12 months of between 6% and 10%, that suggests unit sales were consistently in decline.

There was little difference in industrial sales and with business-to-business transactions. “End-of-financial year” and “stocktaking sales”, or in essence “clearings” were generally met with stonewall resistance from corporate clients. They too have become financially prudent, lowering inventories and being immune to the temptations of discount prices. The just-in-time philosophy is a lot like that!

WINNING OPTIONS

The time is nigh for investment in the training of people and upgrading (in some instances, the introduction) of efficient database management and customer relationship management (CRM) systems.

Really knowing, connecting with and giving commitment to existing prospective and past customers and clients are collectively the most efficient, effective and immediate means to increase immediately revenues, margins, profits and customer satisfaction. It is never too late.

Relevance of a business, its people, products and services is enhanced from a better understanding of the lifestyles, business circumstances, aspirations and individual needs of consumers, companies, departments and networks.

Such calls for action beg the question, why wasn’t it done before? For some, it was. It is they who are enjoying better, more stable and in isolated instances, significant increases in demand, sales and profits.

A central issue in addressing the evolving and enveloping marketplace is time. Some will contend it is too late. Others will suggest that it will take time. More will state that the current priorities of accelerating cash flows and increasing available cash leaves little time, money or resources to address these propositions.

Each may contain an element of truth. However, Albert Einstein would contend that time is relative.

If no action is taken now, just how much time is left …. to take remedial action or..., period.

It’s time to marshal one’s resources. Energy, creativity, product and customer knowledge, positive thought and actively taking assertive initiatives counts for a lot in these times.

THINGS TO AVOID

A herd mentality is something to avoid at most times, particularly now. The booking of and payment for bigger advertisements (regardless of the media) with bolder headlines and more financially attractive offers will not necessarily be appropriate or prudent.

DON’T DO IT ALONE

Regardless of size or capabilities, the best prospects for success are with the collegiate and strategic partnership initiatives involving suppliers, distributors, associates and customers, together with purchasing, marketing and neighbourhood networks. Common bonds typically provide common platforms for joint and multiple positive flow on effects.

DIFFERENT PERSPECTIVES

Understandably, concerns pervade the business, economic and personal landscapes. There is a reluctance to outlay anything at this time without some measure of surety of a positive and relatively short term return.

Considerable cerebral energy will be expended in determining what new and innovative things can be undertaken to have impact and to provide “value-add”.

Spare a thought then for a little contrarian thinking.

Sideline for a moment contemplation about what new and more can be done.

Attention on what one should and can stop doing…. NOW, is one avenue for freeing up things and channelling available resources to high return activities.

This should be a process undertaken at the margin. For many people their typical week involves up to 30% of time being involved and indulged in things that show little or no economic advantage. No matter how pleasurable, perhaps these things can be deleted or, at best, put on hold.

More available time provides the scope to contact, walk among and engage existing and prospective customers and clients. The rewards can be immense.

"Funny Business"

That’s funny……. interesting and significant !

There exists an important and consistent variable in the attainment and maintenance of high productivity, stable staff composition, customer satisfaction and client retention.

Refreshingly, it need not involve large outlays of capital, investments in infrastructure and systems or the support of expensive incentives.

It is difficult to quantify and is not evident in entity debit and credit registers. However, believe me, it’s impact on market worth, image and competitive advantage is substantial. The contribution to the price : equity value is infinitesimal.

Moreover, management and marketing departments are relieved of the need to authorise and script promotional texts and advertisements which declare that the entity is an employer of choice. This variable is declaration enough.

Many job descriptions and job specifications are lacking, because they do not address this attractive and valuable ideal.

Sadly, in the current volatile marketplace with the pressures of time constraints, stress and competitive forces, its presence is less conspicuous and falls short of being considered ubiquitous . The deficiency is palpable.

You may well have consciously or subconsciously noted the shortcomings in so many business, political and life settings. However, few find themselves able to verbalise the inadequacy.

FUN is like that. It counters negatives, overcomes impediments, creates focus, sustains motivation and fulfils the insatiable need of all stakeholders.

It is not hard work. It overcomes and makes light of hard work. Conflicts are typically cancelled because of fun. Group cohesion is enhanced and sustained by it.

There is no suggestion that one should not take business and the pursuit of excellence, quality, trust and integrity seriously. However, it is often good for all to not take yourself too seriously. Laugh. Have fun.

THE STEPS FORWARD

MEETINGS
An initial step to inculcate fun as an integral part of the business is to call a meeting or series of meetings to enable people to express their perceptions of the essential culture of the entity and the degree to which fun is part of its character.

Team members usually are a bountiful pool of fresh and refreshing ideas on how best to reintroduce, increase and sustain fun.

COMMUNICATIONS
Human beings are social creatures. They have an infinite need to interact. What is increasingly lacking in much of contemporary communication is the word personal.

Interoffice emails and some text messages should be minimised and personal contact encouraged.

Technology is best applied when it complements, not replaces, people and people contact.

TIME
Our time-poor society and typical lean business entities impinge on the relief which is introduced by the fun of interacting with people. It’s not easy and is easy to overlook. However, there is an importance and multiple returns from the provision of regular, periodic and spontaneous “time-outs” for team members to enjoy the fun of rotating duties and focus.

INFORMALITY
In 1983 Tom Peters and Bob Waterman Jnr released their international best selling book “In Search of Excellence”.

It was significant that many of the corporations that were identified to be excellent, tolerated and indeed, encouraged informal structures called “skunkworks”. These typically breached many traditional rules and conventions. Members of these skunkworks enjoyed the informality, fun and self generated energy which evolved.

Core values were respected, but standard practices were at all times subjected to questioning.

CELEBRATE
Daily, countless milestones are achieved, not recognised nor celebrated.
Ask elite sportspeople where they derive most fun in their individual pursuits. The focus tends to be in “PB’s” (personal best), premierships and gold medals.

These symbols and tokens make all the hard work and sacrifices worthwhile. Life in the fast lane of business is no different.

Therefore, we need to create and revere our heroes. It’s fun!

INVOLVE
Connecting with internal and external customers is an imperative for business success in the contemporary business environment.

Networking has been developed to an artform, with countless hours dedicated to expanding the spheres of influence of team members.

Nothing facilitates and expedites better the establishment and maintenance of mutually rewarding relationships than an environment in which fun is a key element.

Therefore, specific focus should be developed to include and embrace associates, suppliers and clients – the pursuit of having fun in business.

UNWRITTEN DIMENSIONS
The introduction and pursuit of fun does not impact on corporate visions, missions, policies, practices or job descriptions. It does, however, add immeasurable value.

Predictably, some people will dismiss the contention because of heavy workloads and a lack of time. Much of that can and is overcome by a change of thinking, which precedes a change of doing. It is a case of :-

THINK IT,
DO IT

The Making of a Decision

Follow up. That is the determining and distinguishing factor between a good decision and a bad one.

An appropriate decision which is not followed up and through can and will inevitably turn into being a bad decision. Conversely, what on reflection may be deemed to have been an inappropriate decision can be converted into a good decision by follow up and astute refinement. Often it is a matter of follow up or foul up.

Thus, the making of a decision is the commencement of a journey not a destination. So many people are intimidated by the need to make a decision, fearing the consequences and being sensitive to the broader possible ramifications.

In an imperfect world, with imperfect information it is improbable that the right decisions will be a matter of consequence and the outcome of contemplation, risk evaluation and deep analysis of all the facts.

With the effluxion of time and an ongoing schedule of monitoring, quantifying and qualifying not only the decision but also the outcomes, outputs and effectiveness can be substantially enhanced.

Seldom does a single decision have its impact and relevance limited solely to its maker. Accordingly, communication of the decision, its consequences, implications, advantages and benefits need to be conveyed to other stakeholders, who have been advantaged and impacted by decisions.

DECISION TREE GRAPHS

Documenting a decision tree can be challenging, complex and insightful. Considerable advantages accrue from the effort. It highlights the intricate web of relationships which evolve from the initial making of a decision. The nature and importance of relationships are graphically depicted. No decision or person operates in a vacuum.

When the axes of time and people are introduced on a graph, a greater sense and awareness of our interdependence is underscored in those graphics.

The resultant “spider web” of consequential follow up actions necessary for the original intent to be achieved and fulfilled are in stark contrast to a single blank sheet of paper.

The documentation of a decision tree involves thought, time and detail. Most, if not all decisions justify and often are improved with an investment of time and dedication.

THE FILTERS

A lack of clear, comprehended communication, cultural differences, resistance, and differing stakeholder self interest can and do influence the consequences. In business, as in war and on the sporting arena, the determination of a strategy and related tactics can be a small play in a much bigger game (plan).

In contemporary business countless decisions are made, documented and communicated by email. A lack of follow up to ensure that the communication has been received, understood, accepted and implemented can result in lost opportunities, failure and have subsequential downside consequences.

The relevance, appropriateness and timeliness of the decision made may be an optimal frozen point in time. Without follow up, the risk tolerance for a lack of success increases, often exponentially.

Thus, success for a decision will often be determined not by what is done and made, but rather by what actions follow the actual decision making.

In a time-poor society doing it right, doing it once and doing it now is a widely held philosophy. However, at all times one needs to value the dimension of time.

COMMUNICATION CHANNELS

The channelling of decisions made through and to specific people is inadequate in itself. Too many managers fill their days and nights channelling communication, demands and decisions between senior management, business owners and subordinate staff members. The channel can extend to and involve suppliers, associates, spheres of influence, clients and customers. A true measure of the veracity of a decision is whether it is challenged, revered and possibly refined as it progresses through a channel or network.

Few, if any, decisions warrant and merit unimpeachable and unquestioning adherence. Middle managers should have the delegated authority and responsibility to initiate actions, to ensure optimal performance. That will require subsequent, subordinate and complementary decision making. It is a chain reaction. Not nuclear in nature, with any splitting of atoms, actions or decisions. And no, its not a matter of splitting hairs.

Disturbingly, it seems that little appreciation and tolerance is given to the need for and reality of following actions and decisions which flow from the original decision.

That is a major contributing factor to the lack of comprehension, commitment and adherence to decisions made about the corporate culture, philosophy and mission statements determined by boards of directors, senior management and business owners. Attractively packaged and framed signs declaring and detailing such decisions too often gather dust and are not read.

The scenarios are not restricted to internal company situations. Suppliers, governments, consultants and strategic alliance partners need to be sensitive to the role, importance and cascading consequences of follow up in the successful implementation of a decision.

A willingness and the ability of dynamic, assertive and successful leaders to make decisions cannot be lauded without an appreciation of their capacity, record and intent to follow up. Otherwise, images of elephants, crockery shops and mirrors come readily to mind.

In conclusion, it is in essence true that arriving at a decision is the starting line in a journey to an often indeterminable finish line. However, clearly, with a decision made there is a race on to follow it up.

Now seems to be a good time to make a decision about what one intends to do (and follow up) as a consequence of having read this text.

The Question Is Y?

So many questions, so many more answers. Experts in abundance and so little insight and consensus!!

It is amazing how just one generation, Y, can cause such interest, debate, confusion and contradiction.

The essential answers will not be found by interviewing or listening to Generation Y themselves. They are confused, are looking for their own answers and identity. Indeed, that is the characteristic which makes them individually and collectively so interesting. It is they who are reaching out to their grandparents in search of finding themselves, their family histories, their sense of being and place in society.

Countless truisms are paraded about those in the market category Generation Y. Each has an element of truth, but in the main suffer from misinterpretations founded on the paradigms and perspectives through which analysts, business people, employers and service providers view this fascinating subgroup.

Perhaps the scenario provides a unique, differing perspective of the phrase and concept “six degrees of separation”. The truisms contain an element of accuracy, but falter by a matter of degree.

In marketing, little things mean a lot.

Let’s address the more common statements and truisms relating to Generation Y.

“YOU CAN’T SELL TO GENERATION Y”

Sound sentiments, but in reality, an error of fact.

Belying that belief are the large numbers of 17 to 30 year olds successfully employed in advertising agencies and marketing departments. These are not instances of sacrilege. Many of these people are creative, innovative and entrepreneurial.

No Generation Y person tends to like advertising that is aggressive, condescending and offers “unbelievable deals”.

This market segment is essentially online savvy. At the time of purchase many have utilised the internet to retrieve, collate and analyse information.

As a consequence, they are informed, discerning and sensitive to what represents value. They don’t need to be sold. To share information and to be educated is an entirely different proposition. They want to connect and interact, not be subjected to intrusive, one way advertising communication.

“THEY WON’T COMMIT”

By the time the contemporary adolescents and young adults graduate from school or university, they have been exposed to countless statements by educators that they can expect to experience at least 7 major careers changes during their working life.

If conditioned behaviour counts for anything, it does create expectations and perceptions.

Thus, it is not that those Generation Y do not want careers and longer term relationships in commerce and industry. It is simply that they have been conditioned to not expect such.

Security may be off the agenda, however research has isolated other aspects and elements which have appeal and are compelling messages in the marketing and employment arenas.

So close, yet so far…

The issue is one of determine time horizons which are relevant and pertinent to those in the target audience.

“IT’S ALWAYS ‘ME’”

No argument here. They are no different to any group of consumers and clients.

Self interest and what is in terms of advantages and benefits for the individual consumer persists and is largely the universal compelling, selling and marketing proposition.

Perhaps the point of difference is the willingness and ability to express one’s wants, needs, desires and values. Extended use of and exposure to multi media does improve one’s communication skills.

“IT MUST BE NEW”

Information and knowledge in the world is reportedly doubling within 18 months. It is difficult if not possible, to keep abreast of change and of current data.

One consequence is that for some, read Generation Y, if it is not new then it’s obsolete, redundant, irrelevant and lacks appeal.

New is now news. It is something to talk about. Consumers have become market, fashion, technology and marketing mavens. That is, personal knowledge and the willingness to share that knowledge establishes one’s presence and status. The phenomena overlaps the truism about one can’t sell to those in Generation Y. With the ready, ongoing exchange of information among contemporary, peer sources of influence there is little or no need for aggressive advertising and high pressure selling techniques.

“IT MUST HAVE STREET CRED”

Those adult consumers under the age of 30 years have a fascinating take on endorsements. For them “celebrity” has a differing perspective.

Credibility is established by what is being seen, worn, utilised or spoken about on the streets. To this select group, peer acceptance and endorsement have higher rankings and priorities to what entertainers, elite sports people and artistes get paid considerable sums to promote.

This could simply imply that scope exists for a second lower level of below the line marketing expenditure and initiative which involves little outlay but generates considerable recognition, comment, interest, demand and sales.

OH, ANOTHER THING….

It is perhaps now apparent that many messages and value propositions need to be repackaged to penetrate, relate to and satisfy those in Generation Y. Fortunately, the refining process is both a fun and profitable journey.

However, too many existing and established businesses do not pay sufficient attention to the messenger, who will ultimately deliver the promise and the message. Therein lies the key to unlocking the unfulfilled, and often, unrecognised potential.

Our research into this subgroup has established a number of essential parameters.

THE PROMISE, THE REALITY

So “Yes, Virginia there is a Santa Claus.” And yes, it is time that you can sell to those in Generation Y, as indeed you can induce longer term relationships, more loyal patronage and less price sensitive buying.

Celebrities, Endorsements and Returns

Is it worth it?

Celebrity endorsement is a bit like that. The concept raises more questions than it answers.

Review of celebrity endorsement is timely, given the fact that in 2006 below-the-line expenditure exceeded that of above-the-line outlays in Australia.

Included in the former subgroup are activities which centre on promotions, merchandising, the hosting of events, product sampling and, yes, celebrity endorsements. That is an issue which must rightly be addressed and countered by the mass media channels of television, radio, print and outdoor billboards, because of and their contribution to the status of celebrities.

Much of the evidence in support of celebrity endorsement is impressive. The use of Paris Hilton by John Singleton, his son and their boutique brewery in Sydney has established a new and growing market segment. “Blonde” beer has been embraced by countless boutique breweries throughout Australia.

The marketing professionals of leading brand names must be convinced. Each year they hand out significant funds to chosen celebrities. Take for instance, Ricky Ponting, the captain of the Australian Cricket Team. His annual income from endorsements exceeds his reported $800,000 salary by Cricket Australia by some 7 to 8 times. That must sound sweet coming off the willow!

LASTING IMPRESSIONS

Bjorn Borg, five times winner of the Wimbledon tennis crown was reputedly receipting some $10 million (Australian) per annum, 10 years after his retirement. No suggestion of tennis elbow there!

ROLL UP OR ROLL OVER

Detractors of the concept often focus on the difficulty of quantifying the benefits and direct economic returns.

However, that does not take into consideration the many different applications of celebrity endorsement. Foremost among the more subtle uses is product placement, popular in movies and some lifestyle television programs.

James Bond did wonders for the image and sales of Ashton Martin motor vehicles. “Big Brother” telecasts feature conspicuous use of the products of sponsors and program advertisers.

In such instances the nuances of personal images and lifestyles are more influential and effective than the detailing of product features, advantages and benefits.

Fashion designers appear to have an increasingly balanced, objective and detached appreciation of the use of celebrities, as distinct from overt, direct endorsement.

“Fashion Week” events and new season fashion releases are experiencing mix fortunes at present as support from recognised, desirable and iconic brands is spasmodic, becoming increasingly an outcome of discerning selections for involvement and promotion.

The key determinant in fashion marketing decision making appears to be where and at which events will the television and still photograph cameras be. Hence, it may well be the red carpet rather than who walks the red carpet that will determine a presence.

Value is now measured by what is on the screen rather than what is on the “clothes hoist”, the celebrity.

THE PURPOSE

Celebrity endorsement is most effectively used in products and services which contain high components of fashion, image and style. In short, subjective assessments.

Most consumers are generally reluctant to be pioneers or innovators. They seek out and are reassured by the imprimatur of someone whom they know, trust and admire.

Thus, the relative importance and high income capacity of identities like Elle MacPherson, Megan Gale and Sophie Hawkins.

Personalities and celebrities whose profiles are founded on knowledge and expertise can be and are able to leverage their public standings by endorsing specific products. Don Burke, the compere of the former television series “Burke’s Backyard” was the cornerstone of a mass media campaign which centred on a new plant. Against a background of drought throughout Australia and widespread water restrictions, the product achieved garden centre industry record sales.

Use of the ubiquitous Wiggles by Boost Juice Bars introduced new young consumers to the product range, together with a few Generation Y parents and an encouraging number from Generation X. It was good for the soul … and the bottom line, even on “Tiny Arse Tuesdays”, a highly successful promotional campaign conducted by the national franchise network.

CELEBRITIES BEHAVING BADLY

The sad case study of AFL footballer Ben Cousens sprinting from a motor vehicle to avoid a random breath test highlights the dangers of associating a brand, a product and service to the image, presence and behaviour of a celebrity.

The German marque which reportedly supplied the vehicle as part of a sponsorship deal, quickly withdrew the vehicle and the sponsorship. Very understandable. The public fall from grace of international super model Kate Moss is another example of the potential pitfalls associated with celebrities.

A contrasting consideration is the financial failure of an investment vehicle which featured in its advertising and marketing Olympic swimming legend Dawn Fraser and television actor Paul Cronin. Their high profile images were utilised to foster a sense of “peace-of-mind” among prospective investors.

The investors and the celebrities lost big time.

TREAD CAREFULLY

The selective use of celebrities can overcome widespread ignorance and apathy about a brand, a company, a product or service.

Endorsements can effect penetration into new markets, capture the attention, patronage and loyalties of those in differing segments and make a statement about certain features and attributes which establish perceived and possibly, real value.

However, prudence should be a virtue in the selection of a celebrity, ensuring that his or her image, lifestyle and values are consistent and complementary to those desired for that which is being endorsed.

Celebrities can and do attract attention, publicity and profile, good and bad. Hence, quality control is imperative for the product, the service and the celebrity.

Imperfect Information, Imperfect Decisions

If only.

Two words. Big meaning. Compelling sentiment.

Too often intent, decisions and actions are ill-founded, because of a lack of information. “If only I knew then what I know now” is a common phrase with significant implications. Imagine an environment in which apologies, retractions and remedial actions were not necessary.

The pursuit and attainment of optimal efficiency and effectiveness, as well as quality customer service would be and is more readily and consistently achieved when all the pertinent information is willingly shared. No one individual, department or sector is precluded from the philosophy or process.

Evolving, establishing and sustaining positive relationships are typically centred on mutual respect and trust, which facilitate timely open, ongoing, two way and complete exchanging of information.

Qualified, filtered and edited communication leads to suboptimal performance and stress in relationships, private, personal and in business.

The reality of much commercial sensitive information and supposed intellectual property is one of subjectivity, rather than objectivity. Upon reflection much of what was considered to be a must for confidentiality is in reality not that essential. If only … the information was provided at the time.

ENABLING POWER

The willingness to share information is energising to all concerned. It underscores a strong element of trust, integrity and respect.

Moreover, it enables and facilitates reasonable, rational and objective forecasting of demand, supply, services and resources.

An early exchange of information provides for effective forward planning and forecasting in which operations are optimised and variable costs are minimised.

Information in isolation cannot and will not convert a “no, we can’t supply” into a “yes”. However, it enables appropriate, often mutual searches for identification and securement of alternative sources, supplies, products and services.

DOCTRINE OF NO SURPRISES

Harold Geneen, the former President of ITT, the trans-national telecommunication and investment conglomerate (which previously operated the Sheraton Hotels and AVIS Rent-a-Car networks) subscribed to the …

DOCTRINE OF NO SURPRISES

Early and ongoing advice was considered the foundation of sound forward planning and optimal performance.

No-one was penalised or disadvantaged by being the purveyor of “bad news”.

The underlying cultural belief was that one cannot always control what happens to them in life, but one can control how one responds to what happens to them in life. Life can and does reflect business.

VALUE FORESIGHT

Understandably many business leaders assign marginal value to hindsight. Premium is and should be accorded the foresight, because efficiency is optimised, effectiveness is enhanced, customer service is improved and relationships are cemented and sustained.

20/20 vision may be a measure of ideal sight. Foresight will seldom, if ever, be so focussed, accurate and repetitive.

However, greater credence and understanding are given to acceptance of the premise:

“It was best and most appropriate decision, based on the information which was available at the time.”

The exchange of information requires the allocation of time, people and resources. It can be and often is intense and exhausting.

However, it does give pause to consider the realisation that up to 1 in 4 workers in the United States of America are employed to correct the errors and deficiencies of other workers. Many of those errors are a product of inadequate and incomplete information. Compounding this reality is the multiplying effects of not delivering the products, services and customer services which are expected, all because of poor communication. The impact on one consumer or client can be and often is felt by up to four others.

If only more information was shared at the appropriate time and possibly in the context of confidentiality, customer satisfaction would be enhanced and the capacity of service providers upgraded.

One most often gets paid for what one does rather than what one says. In the scenario detailed, what one says is a pre-emptive factor to what one can do and how, when and why one does it.

If only…

ERRORS OF MY WAY

Clearly for the sake of comprehension and fulfilment of expectations a significant number of people need to correct the error of their ways and counter the tendency to be economical with the information that is shared.

GIVE IT TO THEM

Any reluctance to share and disclose the full suite of information which is available, necessary and, indeed, imperative actually impinges on the ability of service providers to offer that which will provide ultimate customer satisfaction. So, go ahead, give it to them so that they can and will be able to do their job properly.

KEY STEPS

• Determine one customers service needs
• Establish what information is needed by the service provider to ensure customer satisfaction
• Share the information and ask that one’s confidence is respected
• Ensure the channels of communication are open
• Conclude a mutual agreement of performance standards
• Where appropriate, monitor progress
• Acknowledge, applaud and celebrate successful completion of the task/s.

There's Nothing To Be Comfortable About

Being comfortable is a curse!

Numerous leaders, managers and business owners in franchise networks, buying groups, cooperatives and branded marketing channels know the feeling only too well.

Endeavours to innovate, create, change and develop can be and often are frustrated, impeded, blocked or compromised by some individuals and businesses within the respective supply chains who are less driven, because they are comfortable. The reasons can be many and varied.

Seldom are the causal factors deliberately and intentionally negative to the aspirations of others.

The scenario does, however, raise question of just why individuals and entities decide to join networks and do not commit to higher order goals.

Throughout the world large percentages of businesses and owners are locked into a time freeze zone, reflected in the presentation of premises, products and people, often exacerbated by antiquated systems, processes and practices. Such people are part of, but do not belong. Often their initial motivation was defensive, to enable them to buy better or to block entry of competitors into discrete marketplaces. Attainment of such objectives is relatively easy and prompt.

Comprehension of, belief in, adherence to and endorsement of the overriding corporate culture is not a consideration in such circumstances. Future focus, beyond immediate term horizons of trading days, weeks and months is beyond the scope of some. Why? Because they are comfortable.

Imagine the number of owners of small to medium sized enterprises whose primary orientation is to generate an income rather than to develop and grow a business.

Blame cannot and should not be attributed to individuals. Their original intentions may have been honourable and appropriate, albeit, largely self centred.

Analysis of relevant alternative, available actions is the realm of leaders and managers in collaboration with the particular individual persons or businesses. An awakening to the possibilities and, often, the inevitabilities may be and often is all that is required. Defining, refining and documenting mutually beneficial goals may be sufficient catalysts to induce change. Allowing the status quo to persist is destructive.

Decisions are the responsibility of all. Everyone is compromised, is impeded or is frustrated when no decisions are made. Similarly, knowingly and unknowingly, everyone benefits from decisive, timely and appropriate decisions. Recognition of the upside may not be immediately apparent to all.

Counter arguments and rationalisations based on the need for the advantages of volume (and thus the need for “numbers”) are flawed. Reflect on the wide variability of standards, presentations and practices of many businesses within single branded networks. Sadly, the lore of the marketplace is that the collective whole is reduced to the lowest common denominator.

Thus, the well being, growth and value of individual businesses within franchise networks, buying groups, branded marketing channels and cooperatives are impacted, often adversely, by the fact that one or more of the group are comfortable.

A sense of comfort is palpable, conspicuous to suppliers, associates and, sadly, consumers and customers.

Comfort is the enemy of excellence, leadership, competitive advantage and growth. It is also a contributor to complacency, inertia and decline. It tends to be a state in which the orientation is now, with little regard or respect of the future.

Comfort can also be caustic, destructive and the initial phase of entropy, the concept that states all things tend towards to a state of disorder.

THE CHALLENGE

Some readers of this text will feel comfortable with the message, will file it and will then or move on.

Others will be driven to contemplate a full scope of options and actions. Distractions will arise, some impediments will be encountered and, with the best of intention, they will lapse back to a state of being comfortable.

For a select few, they will contemplate the latent potential which resides within their own business, their network and supply chain. They will be driven to make decisions and to progressively implement such.

These few will then find some comfort in the realisation that the process will start all over again. They may even be inclined to address and redress the issue with those for whom comfort has become the norm.

KEY POINTS

· Seek out, identify, isolate and analyse instances of comfort.

· Determine the causal factors

· Detail latent potential which is an alternative to comfort

· Address the issue with those for whom comfort is the prevailing norm.

· Seek consensus on remedial actions.

· Where appropriate, agree on the parting of ways, for mutual benefit.

· Pursue and secure cohesive joint policies, practices and actions which avoid comfort and realise the full potential.

 

Sensitive To Closing The Sale

Two major impediments short change too many businesses.

The seeming inability or reluctance to address and overcome consumer price sensitivity, together with the need to close the sale are the two biggest contributors to suboptimal performance by businesses, big and small.

In the vernacular, too much money is being left on the table or in the pockets of clients, consumers and customers because of the attitudes and (in)action of business people.

Price discounting, competitor tactics and overwhelming mass media campaigns are in reality secondary considerations for most businesses, in their pursuit of business, revenue and profit development.

The phenomena of “sales leakage” has encroached into the professions. Accountants, lawyers, bankers, financial planners and risk insurance consultants forsake large revenue streams because of an apparent lack of self confidence and pride in the quality and value of the services provided.

Ironically, it is the practitioners and retailers themselves who are most price sensitive. Consumers are typically uninformed or ill-formed on fee and cost structures.

Sadly, hesitant references to costs, fees, dollars and cents accentuate the varying perspectives and heighten sensitivity among the clients and customers.

The appropriate tack is to address the value proposition, of which price is one, but not only the key driver. Value is like an iceberg. Most of the package is not conspicuous and needs to be detailed so that others can appreciate the total bulk of what is being offered.

An anecdote about painter Pablo Picasso provides an appropriate perspective. Late in his life, while drinking coffee the artist was approached by a young child, a fan. Picasso quickly drew a pencil sketch and handed it to his adoring fan.

The father of the child enquired about what the true value of sketching would be. Free of modesty Picasso declared a figure which equated to some $20,000 (Australian).

The flummoxed father responded, “but it only took you minutes to draw!”

Pablo Picasso corrected him: “That sketch, sir, took me 76 years to draw.” That’s value!

Similar sentiments are often expressed about my customised conference keynote addresses. Some people express surprise about the fee which applies to a one hour presentation.

It is only after the facts are detailed that they appreciate the inherent value in a speaker and consultant who insists on a detailed briefing, undertaking background unannounced visits to premises, interviewing nominated leaders, compiling unique PowerPoint graphics, integrating pics into the visual aspects and providing exclusive pocket prompter documents which reinforce and expand upon the key points.

Resolving customer service issues often suffer from identical misperceptions. Understandably, many, if not most, customers are unaware of just what it takes to address and redress a circumstance to the satisfaction of the customer. It takes time, focus and discipline to explain to the customer, so that he or she will appreciate the inherent value in dealing with a company, brand and service provider who is dedicated to customer satisfaction. There are no shortcuts.

It is only with such disciplined approaches to interactions with customers that professionals develop their self confidence and belief in their right to ask for and conclude a sales/deal/contract after having invested time in interacting with the prospective customer.

The fear of rejection is omnipotent in business. Unresolved opportunities to “close the sale” relieves the customer of the need to make a decision and a commitment.

Every professional should recognise that the easiest decision to make for most customers is to make no decision at all. Accordingly, sales, profits and customers are lost to the business and industry, rather than to a competitor.

Many customers love to be sold. That assistance and input simplifies the decision making process. Satisfaction ensues.

Too many options can be and often are confusing and frustrating. Two alternatives can be attractive and compelling.

The asking of questions which identify, isolate and enable analysis of customer needs are the foundation steps of establishing, creating and packaging value. Exchanging that information is a catalyst for expediting the sales closure.

In the current marketplace one seldom, if ever, gets a second chance to conclude the mutually satisfying deal. Therefore, it is totally unreasonable and illogical to be sensitive to price and to hesitate in one’s endeavour to close the sale.

CONCLUSION

External forces in the marketplace, including interest rates, the value of the dollar, consumer confidence levels and competitor actions are often reasoned to be the cause of why sales budgets are not achieved or the full potential is not realised.

In reality, the true and ubiquitous reasons are an inner sensitivity to prices and the fear of rejection by professionals who ultimately lose more than just the sale.