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President

February 2nd, 2008
Starbucks: One Win. One Loss.

After striving for seven years to become my local SB's "Customer of the Week," I finally made it. I thought there would be more fanfare ...READ MORE

Starbucks: One Win. One Loss.

Saturday, February 2nd, 2008

After striving for seven years to become my local SB’s “Customer of the Week,” I finally made it. I thought there would be more fanfare than there was–a sign by the barista (”Bill is our customer of the week”) and a free drink per day. Oh well. Not sure what I expected.

That’s the Starbucks win.

The loss though is a peek inside a company — and how even the greatest ones can make mistakes. (I recognize this is just one transaction that went bad.)

My friend Ron Rosenberg is sponsoring a “Health Care Customer Service” symposium for a large group of healthcare executives–100-200 high level people. He recognizes the customer care situation facing health providers. (Have you been to a doctor lately?)

He brought in a top speaker who wrote a book about the Starbucks Experience. Ron, thought, “Hey, I’ll buy 200 $5 certificate cards from Starbucks and give them out.”

Then, he thought, “Why don’t I call SB’s and tell them what I’m doing and see if they want to have a few of their people there, maybe to hand out the certificates?”

I’m sure Ron was thinking, “Let’s give the participants an experience of great customer service.” Two of the attendees were even considering putting a Starbucks in their medical facility.  

But guess what Starbucks said?

No. We will not agree to participate in the Executive Forum. No reason. No explanation. Just–No.

Hmmmmm. As he was telling me the story and getting to the punch line, I thought for sure he was going to say the SB Regional Manager not only agreed to do this, but would also throw something else in the mix–maybe a larger certificate, or maybe a scone, or maybe a free song on iTunes, or something.

Or I thought he was going to tell me the SB Reg’l Mgr was going to come in personally and make an appearance–maybe even to say a few words.

But no. Even Starbucks makes mistakes from time to time. Even when their stock is in the tank. Even when they announce they’re going to slow down new store openings to focus on revenue building at existing stores. 

We’re all excused for a slip-up in customer service. But in the new economy, when it’s hard to get in front of decision makers, and when every move you make–good or bad–is one step from the internet (read Seth Godin’s new book, Meatball Sundae for more examples), you had better think about the implication of a minor slip up. I don’t know if Ron will tell the attendees what happened. But he told others–who told others–who told others.

Actually he should tell the attendees about his experience so they can all learn from the incident. If you’re a healthcare provider (or any business for that matter), do you realize that each customer you have is a potential blogger/podcaster/publisher/referrer? And the experience you give your customer can be easily transmitted to others (maybe hundreds–maybe thousands).  The internet can be your friend to spread the good word.

It can also be disastrous. I’m sure someone at Starbucks has a Google Alert for anything written about them. And I’ll probably hear from them. And I’ll blog about that conversation too, if it happens.

I’ll write more on great customer experiences in future posts. Have you had any great ones to tell me about? I’ll spread the word….

January 24th, 2008
O-Bla-Di, EBITDA, Life Goes On…

We’ve recently started talking to venture capital firms.  We weren’t really sure, when we started, if we had much to offer. But there's one thing ...READ MORE

O-Bla-Di, EBITDA, Life Goes On…

Thursday, January 24th, 2008

We’ve recently started talking to venture capital firms.  We weren’t really sure, when we started, if we had much to offer. But there’s one thing nice about venture capital firms:

They are always searching for an objective viewpoint to help them decide on how to grow their businesses—both within their own companies and those that they are looking to purchase.

As you may or may not know, most venture capital firms operate around EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization). EBITDA is calculated by taking operating income and adding back to it depreciation and amortization expenses.

EBITDA is used to analyze a company’s operating profitability before non-operating expenses (such as interest and “other” non-core expenses) and non-cash charges (depreciation and amortization). 

While a lot of this may be out of the control of a sales team, what’s not is the revenue and profit that goes into the earnings portion of the EBITDA equation.  I know, without a doubt, that what we do can positively affect that!

So, what are the biggest problems that cost companies money?  We have found that the biggest offender is not having a sound, comprehensive sales strategy

The sales strategy is made up of 3 things:

1. Your company’s Philosophy
2. Your company’s Orientation
3. Your team’s skills in the Sales Process

What is Your Company’s Philosophy? 

If you set out to sell to any warm body, and not with high intent (operating in the best interest of your prospect, regardless of outcome), you are wasting money.   You should be working with people that have identified a problem that they believe can/should be fixed, they have the money to fix it, and they want YOU to help them fix it. If any of these things don’t exist, walk away.

What is Your Company’s Orientation?

If you think you can sell on the great “features and benefits” of your product, you’re wrong.  You need to be excellent at identifying and communicating the value of what you do and who you are.

What are the specific problems that you solve for your clients and what is the impact of solving them? That is what brings you value. Only then can you relate your value to the “pain” that exists within your client’s world. 

When you have an orientation that is focused on you (the selling company), then there is no space for the prospect’s pain to come forward.  We have a saying. It’s not very clever but it works: Solve big pain, make big $$.

Is Your Team Skilled in the Sales Process?  

I guess I should ask, first of all, if you have a sales process?  Our experience is that most sales people “wing it.”  They don’t have a consistent method that they follow to lead their client from opening dialogue to implementation. 

This is the root of many evils.  Without a consistent method, we tend to use too many resources to chase deals—deals that will never happen.  Without a consistent method, your salespeople often feel the pressure of not knowing what’s next or how to handle pressure situations. 

If your sales team is confident in their process, they operate with confidence, they communicate the value message better, they call higher, and they sell at a premium.

If you are a business owner, don’t fall into the trap of thinking your sales team is “broken.”  It might not be that they need to call on more people, have more appointments. 

The problem might be that they are not effective in the calls and appointments that they have.  What are you arming them with?  Our belief is that arming them with a comprehensive sales strategy directly affects your bottom line and will exponentially increase your business.

January 13th, 2008
How Facebook is Affecting Your Sales Approach …

As a sales trainer, I find most of our work over the years to be skill related. You know...sales strategies...selling skills...closing skills etc., But a ...READ MORE

How Facebook is Affecting Your Sales Approach …

Sunday, January 13th, 2008

As a sales trainer, I find most of our work over the years to be skill related. You know…sales strategies…selling skills…closing skills etc., But a few years ago, that started to change. Clients were bringing us in to deal with “revenue problems” not just sales problems. These are not just semantic differences–and stuff of another post.

But there is seismic shift happening in the world of B2B selling that we’re seeing. And it has to do with how people find information. And it may not affect your selling skills–but it will affect your revenue skills.

Mark Zuckerberg (Founder of Facebook), was on CBS’ 60 Minutes last night and talked about how social media was changing the face of the web–and how information is disseminated. He’s right. And I sense that not too many companies are on to this–I know our company isn’t.

Google recently offerred a preposterous sum of money for Facebook (in the billions). It was rebuffed.

And Bill Gates just sent a check to Facebook for $240,000,000, which represented 1.6% of Facebook’s market value (which puts the value at tens of billions). So why are these guys so into ‘facebook?’

Do They Know Something You Don’t?
Because they know the web is becoming a social media phenomena. When you Google things these days, are you noticing how many more entries are from social media sites (Squidoo, Facebook, MySpace, Flickr, others)? What that means is that more and more of your reputation is being built on social media sites.

That means that when someone Googles your keywords, it won’t be your site coming up. It’ll be someone talking about you and your products. Are you ready for that?

An Assignment From Someone Who Doesn’t Even Know You
It might be useful for you to spend a couple of hours in the next few weeks researching the social media phenomena. I’d been thinking about it–but when I saw the Diane Sawyer interview, it jolted me out of my oblivion. Some things that are hard to understand really need to be understood. And if you’re going to play in the B2B game, then this might be worth a few hours of your time.

In fact, go to Stompernet and watch their video. It’s about 50 minutes. I have nothing to do with that company other than I trust them for insight on the web. It’s quite eye opening.


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