Marketing Times December 2011 Issue
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  • 1. marketingtimesOfficial magazine of Sales & Marketing Executives International, Inc. December 2011 ®Christmas Wish List Customers thatThe Right Coach don’t complain 7Expressions My Career Backthat help Digitalme sell Trends on Track!George Orwell’shelp with brandingStrategies for retainingmy profitable accounts 1 marketingtimes 2011 Award Photos
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  • 3. CONTENTS 8 COMPENSATION & COACHING: 2012 STYLE10 AAAAAHHHHH! (AND A LIST OF OTHER EXPRESSIONS THAT HELP YOU SELL)12 SEVEN DIGITAL TRENDS MARKETERS SHOULD KNOW14 ARE YOUR CUSTOMERS ALWAYS RIGHT?16 A BRANDING LESSON FROM GEORGE ORWELL18 HOW TO GET YOUR DERAILED EXECUTIVE CAREER BACK ON TRACK20 PROTECTING YOUR CUSTOMER BASE: 3 STRATEGIES FOR RETAINING YOURMOST PROFITABLE ACCOUNTS DEPARTMENTS 4 CHAIRMAN’S REPORT 7 PRESIDENT’S MESSAGE
  • 4. marketingtimes Official magazine of Sales & Marketing Executives chairman’sreport International, Inc. JEFF FAWCETT, CSE Jeff.fawcett@smei.org It’s been an amazing year for SMEI and we have been working hard with your SMEI leadership team all around the world. Earlier in the year we were in Vietnam to plan for ® our upcoming launch and also in Beijing to launch a new four year agreement for cooperation on SMEI’s professional SMEI OFFICERS AND DIRECTORS 2011- 2012 certification programs. OFFICERS SMEI just completed a four-city lecture tour in China lead by Jeff Fawcett – Chairman our president Willis Turner, CAE CSE, with stops in Beijing, Nathalie Roemer, CME – Secretary Treasurer Clinton Schroeder, CME CSE - Chairman Elect Dalian, Jinan and Shenzhen. The theme of the lecture topic Jeffery Jackson, CME CSE – Immediate Past Chairman was “Creating Champions: The impact of sales training Willis Turner CAE CSE – President & CEO on your organization.” Feedback has been very positive with a local slogan being developed of “People before Profits,” with human resource managers and marketing SENIOR VICE CHAIRS leaders responding to the need for sales and marketing training. In this competitive Lynn Argenbright – Membership world market, sales and marketing managers in developing countries are adopting Lisa Dennis – Affiliate & Chapter Relations Kim Ferguson – Programs SMEI’s certification programs in an effort to reach a globally recognized standard of Ben Mastboom – Europe professionalism. Antonio Rios-Ramirez, Ph.D. – Mexico SMEI’s Senior Vice Chair in Europe, Ben Mastboom has been instrumental in helping DIRECTORS us set up a partnership with HAN University to promote membership and certification Jose Corujo, CME Colleen Francis in the Netherlands. An SMEI study mission to Europe is planned for May 2012. Stay Jeananne Hawking tuned for more information. Mike Hilbert Keali’i Kane We have just returned from San Juan Puerto Rico where we partnered with SME Puerto Karl Post Rico for the 2011 Sales & Marketing Conference. SME Puerto Rico President Carlos Mary Tricaso, CSE Marchi, CME CSE, the Puerto Rico board and staff, made us all feel very welcome. Jack Criswell, CSE – Chairman Emeritus We held our SMEI board meeting, Certification Governance meeting and we ran a Don Covington, Jr., CSE – Director Emeritus successful Leadership Training session. Next year’s Leadership Event will be held in Las Vegas during October. Marketing Times is published quarterly by Sales & Marketing I want to end with a story from my visit to San Juan. On my family’s last day we Executives International, Inc. (SMEI). visited the very large Plaza Americas. I visited the Bose Store, looking for a cable partCERTIFIED MARKETING & SALES PROFESSIONALS ASSOCIATION I misplaced from our speaker system. I was greeted by the local assistant manager Nathalie Roemer, CME – Chairman William, who asked how he could help. He took me to the portable unit area to make Melissa Medley, CME - Immediate Past Chairman sure we were talking about the right system. He asked me where I was visiting from, I said Vancouver Canada. His eyes lit up as he explained his love for Vancouver. He was given the opportunity to open the Bose Store in Vancouver 4 years ago. He quickly SMEI disappeared to the back of the store and re-appeared with the cable part. He put it in PO Box 1390 a bag and said have a great stay in Puerto Rico. No payment was required. No good Sumas, WA 98295-1390 USA deed goes untold in SMEI’s world of Sales & Marketing! T 312-893-0751 F 604-855-0165 As we continue execution on our marketing plan to help SMEI grow, get ready to reach admin@smei.org www.smei.org out and share your SMEI with friends and business associates around the world. Willis Turner CAE, CSE – Executive Editor Have a great holiday season. Copyright Sales & Marketing Executives International, Inc. Subscription Rates: 4 issues/year USA: $35.00 Jeff Fawcett Canada: $45.00 Chairman, SMEI Board of Directors All other countries/territories: $95.00The statements and opinions expressed in this magazine are not necessarily those of SMEI. 4 marketingtimes
  • 5. ®Click here to learn more! 5 marketingtimes
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  • 7. president’smessageWILLIS TURNER, CAE, CSEwillis.turner@smei.orgWow! Time has gotten away on me since we lastcommunicated with you through Marketing Times. As you’llsee by this issue, it has been a very busy and enjoyabletime for SMEI as we continue to develop SMEI globally.It was a great privilege to be treated to the hospitalityof Alan Zhang, CME CSE, CEO of SMEI China as we I also had the opportunity to attend the Grandconducted a four city lecture tour in October. The many Opening Ceremonies for SMEI Vietnam, held inyears of labor in P China are beginning to bear fruit. I .R. Ho Chi Minh City on October 28th. The eventwas very impressed with the professionalism of our leaders was professionally produced and many seniorand members in every city. executives and decision makers attended the event. We presented the certificates to the first CME and CSE graduating class. A great start for Vietnam! CME/CSE Train the Trainer Class in Beijing, P China .R. Ribbon Cutting Ceremony, Oct 28, 2011 Ho Chi Minh City, Vietnam Visit SMEI on: LinkedIn Facebook CME/CSE Train the Trainer Graduates Twitter in Ho Chi Minh City, Vietnam 7 marketingtimes
  • 8. Compensation &Coaching: 2012 StyleBy Barry Trailer 8 marketingtimes
  • 9. SMEI was a supporter again this year of CSO Insights’ 2011 the more likely the answer is to be “no.” If I’m right, yourSales Compensation & Performance Management study. sales manager is making a big mistake. Again, turning toMore than 900 firms responded to our survey sharing their the data, it is interesting to note that as the deal size goes updata, experiences and plans. The picture that emerged from (presumably with the experience and responsibility earned bythis collective is both interesting and informative. being successful), coaching actually tapers off—even in firmsThe interesting part is, that after a year’s breather, quotas with a philosophy supporting rigorous coaching! (See tableare heading north again—(on average increasing $100K) below.)and doing so at a speed that is outpacing compensation(targeted comp at quota down an average of $1150). No I believe this happens for a couple of reasons. First,surprise there, but still worth noting. This also seems to beg managers see successful veterans and think, “I get thisthe question: If 62% of reps met or exceeded their assigned guy what he needs when he needs it, and the rest of thequotas in 2011 (projected from data collected during Q3) time I stay out of his way.” Besides, there are younger,what will change to allow a similar percentage to reach less experienced and remedial reps that need a manager’seven higher numbers? attention. The second scenario is more fear based, withIncidentally, while it’s important that 100% of reps be able a manager that would be willing to coach but fearing theto make their number, you should know that comp plans successful rep will simply say, “Look, I don’t have time forare not developed with the assumption that they will. This this crap. If you want to inspect what I’m doing all the time,may come as no surprise either and it is left to you to decide I’ll go to the competition where they’ll just be happy with mywhether comp design with 30% not attaining their goal is results and let me be.”being realistic (based on past performance) or cynical. And yet, the data show that in those firms where coachingAs with so many other things in life, since you can’t control continues to be conducted even as deal size increases,this you needn’t spend much time worrying about it. Rather, performance also increases and turnover is lower!you should examine what you can do and control to make Don’t be too big, too old, too smart, too proud, too busy orsure you’re in the winners’ circle at end of year. too anything else to not be open to coaching. It’s the #1 keyThe top measures for compensation are quota attainment to mastery and the surest path to you attaining that higherand new account acquisition. These are the results against number you’ll be facing come January.which you will be measured and for which you will bepaid. But you don’t do results; you do certain actions thatare reflected in your results. This is where performance Barry Trailer is a Managing Partner of CSO Insights,management comes in and, specifically, coaching. a research firm that specializes in benchmarking how companies are leveraging people, process, technologyWhat things can you do that, if improved and consistently and knowledge to optimize the way they market to, sellexecuted, will get you the results you’re after? to, and service customers. Mr. Trailer has over 30 years ofThe data clearly support higher levels of relationship professional selling experience and is an expert on salesand process implementation correlate with higher levels processes and methodologies for complex B2B environments.of performance. Have you sat down and planned your Prior to CSO Insights, Barry was vice president of Northterritory, accounts, mix of new/existing business, and American Sales, then president of the GoldMine Division ofdeveloped a game plan and timeline for executing? Yes, FrontRange. He has presented to thousands of sales reps andgood. Now, has your manager reviewed this and provided executives and is a sought-after speaker.you regular and rigorous coaching?My bet is that the more senior and experienced you are, Company’s No Coaching Informal Rigorous Attitude Left to Managers Coaching Coaching Toward Coaching % Reps Meeting 58% 57% 61% Quota Total Rep Turnover 30% 22% 21% Deal Size <$10K 24% 42% 31% Deal Size $50- 32% 40% 17% 100K 9 marketingtimes Deal Size >$250K 29% 46% 18%
  • 10. AAAAAHHHHH!(and a list of other expressions that helpyou sell) Dan SeidmanI’ve always wanted to use that as a title to anarticle. I love the sound of it. And honestly, Istruggled between using AAAARRGGGHHH!and AAAAAAHHHHH! and believe you’ll agreethat I chose the right one.The point of that expression? The fact that itrepresents an emotion, an outburst of feeling.Say it again, right now. Did our title comeflying off your tongue as a good feeling, orone of disgust, possibly despair?We open today’s column with a feelingbecause the understanding of emotions is oneof the least understood, and certainly leasttaught, concepts in selling.Here’s what you want to walk away with, aftertoday’s teaching:You must evoke emotion when you conversewith prospects.How best to do this? By crafting your questionsso that they create, not simply a logical, but agut response from your buyers.How do we know this is important? How do weknow it works?The study of Neuroeconomics is a combinationof research from the fields of psychology,economics and neuroscience. It looks at therole of the brain when we evaluate decisions,categorize risks and rewards, and interact witheach other.Almost every study on decision-making revealsthat when a buyer decides to buy, she or heis first driven by emotion, then validates orrationalizes with logic.Therefore, as a sales professional, we need tounderstand that evoking emotion during asales call is key to helping buyers buy. If youneglect to create an environment where anemotional response occurs, you’ll end upwith a clinical, rational prospect who decideswith his or her head vs. their heart. If thisfascinates you and you want more information,you’ll be captivated by the stories, researchand applications from Jonah Lehrer’s book,How We Decide.Corporate marketing executives understandsthis quite well. For example, at the writing ofthis article, BMW came out with an automobilecommercial that illustrates this point:BMW: What you make people feel is asimportant as what you make. 10 marketingtimes
  • 11. ! We don’t just make cars, we make joy! This means you can develop questions It is accompanied with many images, all connected with the that generate either positive or negative word “joy,” a powerful emotion. emotions. Here are a few examples. It’s time for sales pros in across our planet to intentionally adapt Positive emotions these practices as well. ●Excitement The basis of all our questioning strategies centers on evoking ●Empathy emotion first. Which means we need to understand the ●Hope emotional component of every benefit we offer and every problem solved by our products and/or services. ●Calm When prospects make decisions they will either choose based ●Surprise on benefits, good things they get, or they will be motivated to take action and buy based on avoiding problems, in the present Negative emotions or future. ●Disgust ●Irritation ●Fear ●Embarrassment ●Stress You reinforce the power of emotion when you ask your questions by directly inserting a bit of feeling. Try this one out; “You had customized books ordered for your national sales conference and they arrived at the end of the event? Oh no! What did your boss say?” Now you can assume, the “oh no!” shows you’re empathetic to the bad experience (much like former U.S. President Bill Clinton’s classic “I feel your pain”), but the boss question is a real rough one. Your buyer will most likely go right back to that place and time where his manager, executive or owner got angry with the poor person for letting this mistake happen in the first place. Evoke emotion! Take a couple of your favorite sales questions and use both words and vocal tone to bring some emotion to the surface. For a chart of the 48 emotions and sample questions, send me an email at Dan@ GotInfluenceInc.com. Dan Seidman’s 900 page encyclopedia of best-practices in sales training will be released globally in February, 2012. For a unique keynote or to review your existing sales training program (it might be time to redesign!), contact Dan at 1-847-359-7860 or Dan@GotInfluenceInc.com. 11 marketingtimes
  • 12. digitalTrends 7M arketers Should Know By Chris CharitonChanges in the digital world of marketing 1. Online eventskeep coming fast and furious. As a marketer, According to a recent GlobalSpec Marketingit can be challenging to know which online Trends Survey, 47% of industrial companiestrends are important and which are nothing are increasing their spending on onlinebut fads. One thing most marketers do know events. Online events, sometimes called virtualby now is that digital marketing is marketing events or online tradeshows, are a trend— in other words, with your audience having made possible by high bandwidth availabilityfully migrated online to search for suppliers, and emerging technologies that allow mediaproducts, and services, digital marketing is companies to produce and host highly-the most effective way to connect with your interactive experiences. Online events targetedprospects and customers. to your specific audience offer you an excellent opportunity to showcase your product line,Here, then, are seven digital trends worth build your brand reputation, provide content topaying attention to. your audience, and connect with prospects and customers. What’s more, you can do it all from the comfort and convenience of your desktop — as can your audience. 12 marketingtimes
  • 13. in your industry. Online advertising networks2. Video also offer the convenience of reaching many sites with a single buy, helping you save timeVideo is experiencing a significant growth and make the most effective use of your budget.spurt, in fact, a high percentage of companies Banner ads are highly visual; they offer greatare increasing their spending on video, and it’s branding opportunities and can drive qualified,easy to see why. In the age of YouTube, videos targeted traffic to your website.are cheap to produce; homemade productionquality is not only acceptable, but cool. Alsoworking in video’s favor is the fact that many 6. Testing and Analyticspeople like to watch, not read. Looking for One big advantage of digital media is thatsome good ideas for video? Try brief interviews it is easy to test and measure. A/B testing iswith executives, conversations among product becoming a popular way to optimize e-mailmanagers, product demonstrations, or on-site campaigns, Web pages and other online media.visits to customers where your products are A/B testing basically means you split your listbeing used. in two and send each list a slightly different version of what you’re testing, changing only3. Social Media one thing at a time and measuring what performs better. In addition, every companyAlthough many companies have begun should be performing some type of Web siteimplementing social media, make sure you analytics such as measuring traffic, pageunderstand the specific reasons and goals for popularity, and visitor behavior to help makeyour own social media strategy. For example, informed decisions about optimizing your site.the top reasons companies use social media arefor branding and lead generation purposes,yet only 3 percent of companies state that 7. Online Marketing Budgetssocial media is one of their top three sources The top eight channels for increased marketingfor leads. At this point in the maturation of spend in 2011 are all online — from socialthe social media market, increasing brand media and SEO, to Internet banner advertisingawareness and building relationships are the networks and online newsletter sponsorshipsoutcomes most effectively achieved. LinkedIn and more. In addition, according tois the most popular social media platform for GlobalSpec’s 2011 Industrial Marketing Trendssectors such as the industrial industry, followed Survey, companies spend an average of 38by Facebook and then Twitter. percent of their marketing budget online and 50 percent report that online marketing is a larger4. Digital Content percentage of their overall marketing budget this year than last year. Online marketingA few years ago, everyone was saying “Content should continue to take a bigger slice of theis King.” Well, in many ways, content still is marketing budget in subsequent years, as moreking — digital content — as attested to by marketers experience the ROI associated withthe huge growth of e-readers, the iPad and online programs and discover they can connectother devices for consuming digital content. better with customers and prospects online.And it’s not just Web pages. There are videos,Webinars, downloadable PDFs, e-books,interactive tools and more. Your customers About the Author:and prospects are hungry for content to help Chris Chariton is Senior Vice President of Product Managementthem do their jobs and make better purchasing & Supplier Marketing for GlobalSpec (www.globalspec.decisions. Your job is to create that content and com), the leading providers of online marketing programs forget it to them in digital format. companies interested in reaching the engineering, industrial and manufacturing communities. She oversees all direct marketing,5. Internet Banner Advertising demand generation, product management and market research, as well as public relations and advertising. She can be reachedInternet banner advertising has become at cchariton@globalspec.com.a strong value proposition for marketersbecause of the availability of highly-targetedadvertising networks that can place your adson specific sites frequented by professionals 13 marketingtimes
  • 14. Are Your Customersalways Right?In business, the squeaky wheel almost always windsup getting the grease. Customers tend to be rewarded target the top 20 percent with a top market strategy.for complaining, but that strategy leaves money on thetable, according to marketing consultant Betsy Kruger. Your business can profit from the 80/20 rule by enacting these steps: · Distinguish your top customers – Identify ways the topNo one likes hearing a complaint, so when a customer 20 percent of your customers differ from other customers andcomplains, a business quickly and resoundingly rectifies what characteristics they have in common. Realize that your topthe complaint. The problem with this strategy is that customers are highly profitable.disgruntled customers bring in less profit than loyalcustomers. Your business should focus on gratifyingyour most profitable customers. · Target your top customers – Gratify your top customers with a top market strategy. Discontinue marketing to the bottom 80 percent of your customers by automating all interactionsContrary to popular opinion, the customer is not always with that group.right, Kruger says. · Promote to top prospects – Focus resources on convertingIt’s wrong to reward complainers. You should reward similar prospects into top customers. When you replace yourloyal customers since they reward your business with less profitable customers with these new customers, you canhigher profit. You should value their business since expect your total profit from customers to quadruple.loyal customers value your business.” “You may feel it’s rude to consider some customers as less valuable than others, but research proves it’s true,” KrugerThe 80/20 rule governs all results, including profits says. “The top 20 percent of your customers magnifies yourfrom customers. profit, whereas the bottom 20 percent of your customers magnifies your complaints.” When you sort customers by their profitability, thisuniversal law predicts that the top 20 percent of your I feel it’s rude to reward complainers since loyal customerscustomers will generate 80 percent of your profit. deserve to be rewarded. When you prioritize your customersConversely, the bottom 80 percent of your customers with the 80/20 rule, you are prioritizing your profit.will generate only 20 percent of your profit – andvirtually all of your complaints. This means you should About the Author: Betsy Kruger heads Strategic Power, a marketing consultancy committed to empowering world prosperity, one business at a time. Business Expert Press released her book, Top Market Strategy: Applying the 80/20 Rule, in August 2011. This book enriches marketing and strategy textbooks and shows business leaders exactly how to quadruple their profit from customers. She writes articles, motivates groups, leads seminars, and consults with clients on how to prosper from the 80/20 rule. 14 marketingtimes
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  • 16. A Branding Lessonfrom George Orwell Jim SignorelliAs I walked into my office today, there was a copy of George Orwell’s 1984 on my desk. On the book was asticky note attached to a page with a drawn arrow that pointed to a certain passage. The note wasn’t signed, butI knew that the words “READ THIS!” were written in my assistant Heather’s handwriting.Like most books I was supposed to read in high school, all I can remember about George Orwell’s 1984 is whatCliff Notes told me to remember. And what I remember most are warnings against evil dictators, Big Brother andthe thought police.As I wondered if Heather was trying to send me a message, I sheepishly started reading the passage. By the timeI was done I was ready to give her a promotion.Here is an extract from the passage the arrow pointed to:The book fascinated him, or more exactly it reassured him. In a sense it told him nothing that was new, but thatwas part of the attraction. It said what he would have said, if it had been possible for him to set his scatteredthoughts in order. It was the product of a mind similar to his own. The best books, he perceived, are those thattell you what you know already.The context is less important than the content of16 message. But if you’re interested, it’s in Chapter 9 when the this marketingtimeslead character finishes reading a book he had been struggling to get his hands on.Heather has known for a while that I have a fascination with the similarities between stories and brands. She also
  • 17. knows that this passage supports what I believe is yet associate through brands like Craftsman, Die-Hard,another in a long list of parallels that can be drawn and Kenmore. We gave Radio Shack a “you’ve gotbetween good stories and good brands. to be kidding” snicker when they tried to go fromTo understand why Orwell’s passage resonated with geeky to hip with its new moniker “The Shack.” Andme, I should first let you in on a couple of beliefs then there’s the archetypal New Coke mistake thatI have about brands, in general. You should know taught us that changing an image, especially when itthat I don’t think brands are objects; rather they ain’t broke, can be a costly mistake.are labels given to objects for which we associate Time and time again we hear Chicken Littlecertain meanings. Furthermore, you should know pronouncements by management that “we mustthat I believe that the “best” brands contained within change our identity (read: meaning) or we are goinganyone’s favored set of brands satisfy needs that go to perish.” More often than not, the only thing thatbeyond product or service functions. Rather, they are needs to change is an improved sense of meaningsbrands that have meanings we value as important. that haven’t changed.Mercedes means something important to the owners At its core, Old Spice is a brand we have learned toof Mercedes, as does the meaning of Subaru to its associate with masculinity. Granted, it might be ourowners. father’s aftershave. But “Smell Like A Man,” didn’tUnderstanding this, the real “ah ha!” for me is a bother to change Old Spice’s meaning in order topoint that Orwell makes in this passage about “best reignite its appeal. Rather, it stayed the course merelybooks.” He says they tell us what we already know with a more contemporized frame of referenceand that they are the “product of minds similar to we now have for masculinity. Volkswagen’s Beetleours.” In other words, they don’t create beliefs and found its link to its reverse snobbery roots when itvalues as much as they reinforce what’s already reestablished a cult following by introducing thethere. And they do this by awakening our minds or new Beetle with alternative rock music. It furtheredputting “our scattered thoughts in order.” that link by attaching a flower vase to its dashboard.When Steve Jobs passed away, one of the most Sperry Topsiders, an old, tired brand sold mostlypoignant comments I heard about him was that to men, dramatically increased sales by makinghe didn’t give us Apple computers, iPods or iPads. its long-held association with the good life, on orRather, he gave us Apple. He gave us a meaning around the water, relevant to women and kids.that we could connect with emotionally for those of Thank-you George Orwell for putting my scatteredus who, like Jobs, value what is promoted through thoughts in order. And thank-you Heather. You’veApple’s theme line, “Think Different.” The reason been elevated to Super Assistant.we could connect with this meaning isn’t becauseSteve Jobs put that meaning into our belief system.It was already there. Like a good story, meaningsassociated with Apple are meanings that, to borrowfrom Orwell, “fascinate or more exactly reassureus.” Apple gave us something we were alreadypredisposed to receiving. Jim Signorelli is the founder and CEO of eswThe reason this is an important concept is plain to StoryLab, a Chicago-based marketing firm.see when examining powerful brands like Apple, Signorelli’s 30+ year career in advertising beganHarley-Davidson, Disney, Nike and others that tap as a “copy/contact” with Marsteller and sooninto and/or celebrate our existing values. But just expanded to account management with majoras there are lessons from success, there are lessons agencies like N.W. Ayer, Frankel & Co. and W.B.from underestimating just how important it is for Doner. Over the years, he has worked for a numberbrands to crystalize rather than create meaning. of national consumer and business brands includingTry as they might, brands like stories cannot change Citibank, Kraft Foods, Burger King, Toshiba,beliefs and associated values if we are not ready to Emerson Electric, and The American Marketinghave them changed. Marketing history is rife with Association. Signorelli’s agency has been cited asexamples that prove the point. Oldsmobile learned one of the fastest growing independent companiesthis lesson the hard way when it tried to convince its in the U.S. by Inc. Magazine for three years runningaudience that “This is not your father’s Oldsmobile.”Despite its clever attempt to shed a different light and, in 2010, he was the recipient of the “Smarton its brand, the belief that Oldsmobile is a car for Leader” award given by Smart Business Magazineolder people was too entrenched to be radicalized. and U.S. Bank. He currently resides in Evanston, IL 17As Sears learned through its efforts to shed light on marketingtimes For more information, please visit www. with his wife.“The Softer Side of Sears,” it was impossible for us eswpartners.com.to let go of its harder side image we had come to
  • 18. How to Get a DerailedExecutive Career Backon TrackExecutive recruiter Colleen Aylward wanted to figureout how many executives had been displaced by thepoor economy over the last few years, but before shegot her numbers, she discovered something else evenmore troubling.“No one actually keeps track of those stats,” saidAylward, president of recruiting firm Devon Jamesand author of Bedlam to Boardroom: How To Geta Derailed Executive Career Back on Track (www.devonjames.com). “When I tried to look it up with theBureau of Labor Statistics and even talk to some ofthe bureau’s staff, I couldn’t get a straight answer.”Instead, Aylward took the bureau’s 2010 figures forlayoffs in all categories and cherry-picked the jobcategories that she knew, as a recruiter, to fit theexecutive profile. Her top line figure – 2.5 millionexecutives out of work – is both troubling and tellingof the depth of the current economic crisis.“Many of these are not the high-priced CEOs that arebeing criticized for taking too much money in salaryand bonuses,” she added. “These are the managersin the trenches, who spent decades in the corporateworld making the trains run on time, and have sincebeen displaced by younger, cheaper executives wholack the experience and institutional memory of thosethey replaced.”Aylward’s specialty as a recruiter is to help thosedisplaced executives find work and she has figuredout a few key tips to help those who were insidersfor so long, but now find themselves on the outsidelooking in.Those ideas include:●Be a SpecialistFor many years, an executive’s resume was anexercise in being all things to all people, but that’snot what corporations want these days. They don’t 18 marketingtimes
  • 19. want a general manager of all things executive, but rather, specialists who have niche expertise that can be applied immediately. It’s a culture shift for many executives, so it may seem difficult at first. However, everyone has at least one, maybe even two areas in which they could lay claim to being a specialist. Highlight those areas in your resume and you’ll find a lot more opportunities open to you. ●Be Creative Hiring an executive is a big commitment for many companies, as well as an expensive one. Don’t be afraid of creating a situation that puts you back in the saddle while at the same time mitigating a company’s risk. If a company is on the bubble about bringing you on full-time, offer to take on a specific project as an outside contractor and then tie your compensation to the completion of the project. If you screw it up, that’s on you. If you succeed and deliver, not only will you get paid, but you might also win a full-time gig. ●Get Out and Network The days of working for one company forever until you retire have been over for a while. Executives have to view even their full-time jobs as freelance gigs with a limited shelf life. In that respect, displaced executives should look toward more project work instead of just waiting around for that dream job to drop in their laps. They need to get out, network and use their days not to root out jobs, but rather to talk to individuals in companies that might have a problem your expertise could solve. More often than not, one well-executed project will turn into more. “The old ways don’t work, anymore,” Aylward added. “In fact, they haven’t worked in a while, but the executives who have been laid off over the last few years never had to read that particular news update. They are still vital and have plenty to offer, but they need to find new ways to show it. The dream job doesn’t look at all the way it used to look and executives need to change their perspective if they are going to have a shot in the corporate world of today.” About Colleen Aylward Colleen Aylward is the president of Devon James Associates, a top executive recruiting firm. Her startup clients have included such industry pioneers as Amazon, Visio, Spry/Compuserve, Xylo, Quintessent Communications, Rhapsody Networks, Avenue A, Cranium, InfoSpace, and many others who have depended on her onsite recruiting “war room” approach to kick-start their revenue machines. She holds a BA in Business Administration from the University of Washington. (www.devonjames.com)19 marketingtimes
  • 20. Protect Your Customer Base: 3Strategies for Retaining Your MostProfitable Accounts By Michael Leimbach, Ph.DSellers as well as buyers are taking stock of prioritiesas the economy continues to show weakness acrossmost industries. As a result, most sales organizationsare pursuing new business—which often meanstaking advantage of competitors’ complacency ormistakes in providing service to customers. In theface of relentless competitive pressure, sales leadersare looking for smart answers to an urgent question:How can we protect our customer base fromerosion as competition intensifies?While there are a variety of potential answers to thisquestion, most fail to get to the crux of the problem:a lack of understanding of how customers wantto buy, and a subsequent failure to apply the rightresources in the right accounts to ensure protectionfrom predatory competition.The following discussion offers three effectivestrategies for strengthening your relationshipswith your most profitable customers. The goal isto first free up resources that may be tied up inunproductive accounts. These resources can thenbe applied to create value for your best customers,which will make them resistant to even the mostpersuasive cost-cutting competitor.Strategy 1. Assess Your PortfolioTo strengthen ties with your best customers, start by making sure you know who those customers are. Analyze the typeand quality of business delivered by each account, and assess the cost of sales compared to revenues. Are somecustomers using resources that could be better spent on securing more profitable relationships? Are there customerswith the potential to provide more business? And what is the status of your relationship with your loyal customers whooffer a steady flow of good opportunities? Are they getting the attention and level of service they expect and deserve?When it comes to the less-productive accounts, sales leaders are sometimes surprised to discover how much it coststo keep customers who are not consistently providing good sales opportunities. Often these same customers demandvalue-added services they don’t want to pay for. The resources spent to keep these accounts might be better appliedto building value for other customers.As you evaluate your better, more profitable accounts, look for those that were more productive in the past. These 20 marketingtimes
  • 21. may have the potential to provide more business business. Consider cutting your ties or pulling back again in the future. And look carefully for customers from these accounts, and re-allocate the resources to with whom you have a relationship, but where build stronger connections with genuinely profitable business may have fallen off due to benign neglect customers. Also look at renewing relationships with or a lack of adequate service. These should be accounts that have potential for increased business. viewed as “at risk.” With renewed focus and a Strategy 2. Strengthen and Protect Current “Big R” greater investment of resources, some of these customer relationships could be the source of more Relationships revenues. As you assess your current business, determine whatBut how do you determine which customers are too type of relationship you currently have with eachcostly, and which should be kept and strengthened? customer, and what kind of relationship you want. First, it’s important to keep in mind the differenceWhat is needed is an objective way to evaluate which between what could be called a “Big R” and “littlecustomers are your real “keepers,” and which ones r” relationship. We define “Big R” as long-termshould perhaps be “fired.” Below are some questions relationships with strong company-to-companyyou might want to ask to get a more systematic connections. The best of these customers are loyal toanalysis of your account portfolio. your organization—for reasons to be reviewed in aQuestions to Ask About Your Important Accounts moment—and provide a steady flow of good business.• How do you know which accounts are the most We define “little r” relationships as the networks ofprofitable? interpersonal connections sales reps must build with individual customers. These “little r” relationships—builtYou are probably tracking sales per customer, and on personal trust and confidence in the sales rep—areknow the sales and revenues you are gaining per absolutely necessary, but not sufficient to protect aaccount. But how recently have you compared the cost customer from predatory competitors.of sales for key customers? Do you know what you arespending in terms of time and other resources to gain As every salesperson knows, individual contacts maythose revenues? If you are tracking COS you may have change roles, leave the company, or otherwise becomethis data, but many sales leaders say they have focused unavailable to influence buying decisions. (One studyprimarily on the top line and do not necessarily suggests that as many as 33% of employees changecompare the COS to revenue per account. jobs each year. ) When the relationship between your two companies is strong, the loss of even a key contact• Are you aware of which accounts are regularly is less likely to affect the customer’s commitment andproviding good, winnable opportunities? ongoing sales.As you review your customers, look closely at the So one question to ask is: How many Big R relationshipsquality and quantity of opportunities in each account. do you have among your productive accounts, andAsk these three questions: what are you doing to make sure these customerso Is there a consistent flow of real opportunities? continue to do business with you? The advantage ofo Do the opportunities tend to bring true value having these customers in your mix of accounts is thatfor both your organization and the customer? price is usually secondary for them. Typically they are buying solutions from you that are more integratedo Do you generally win the opportunities you into how they do business and for which they may lackidentify, or are you competing for business at the cost expertise. Their concerns are with the kind of trainingof discounting and providing value-added services the and support you offer, your track record and stability,customer doesn’t pay for? and your capability to grow with them. These factors• Do any of your current customers have create switching costs. This means it is not easy forpotential to deliver more sales? these companies to change suppliers without incurringo Did any of your accounts previously provide significant costs associated with re-training, disruptionmore business? of their business, and other issues.o Are there accounts that have been neglected To retain these Big R customers, you need to:or taken for granted? • Provide high-quality support and serviceYou may find that some of your long-time customers, commensurate with the customer’s investment in youreven key accounts, are taking up resources such offering and the relationship.as technical advice, consulting, and other services • Keep them well informed about yourthey don’t pay for. And some of these customers organization’s technology, business direction, andare not yielding a comparable amount of good development of new capabilities and products. Continued on Page 24 21 marketingtimes
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  • 24. Continued from page 21If you find that you have a lot of these types of need, when they need it. A supplier who runs outaccounts, make sure they are paying their way. of stock or asks the customer to wait to receiveIf they are, make sure they are being well served the materials or products they need may not getand are completely satisfied with the relationship. another chance to fulfill an order.Most salespeople can only manage a few of these So these Transaction customers have theaccounts at best, as they do tend to require a lot of advantage of being low maintenance and lowerhand-holding and rightly expect quick responses to cost in terms of demands on your sales resources.their questions, problems, or concerns. If they don’t At the same time, it is critical to pay attention toreceive the level of support they need, they may hitting their targets every time with quality andbegin to question the wisdom of remaining locked consistency. They need to feel you are providinginto your solutions. them with a fair competitive price, a product orThis is why it is so critical to make sure you are not service that consistently meets their specifications,neglecting the needs of these customers, and that and delivery and availability that fulfill theirthere are adequate resources available to keep expectations—without exception. Since they dothe relationship strong and thriving. As long as have choices and it costs them little to switchyou are demonstrating your understanding of what from one supplier to another, it is imperative tothese customers need from your organization, your be responsive to the concerns of these customers.competitors are unlikely to make headway, even if If they are completely satisfied, they are far morethey offer the lure of discounted prices. likely to continue to give their business to you, rather than to a competitor.Strategy 3. Build a Strong Track Record with Your With competitive pressures to contend with and finite resources, your best strategy is to focus theImportant Transaction Customers time and energy of your salespeople on buildingThink of your Big R customers as buying in a strong and lasting relationships with your mostRelationship style. Then think of another set of valued customers. Taking customers for grantedcustomers you have who do not buy from you all is the enemy of retention. Make sure you knowthe time, but buy regularly on a repeat transaction what kind of relationship you have with eachbasis—order by order. These customers can account, and that your sales reps are aware ofprovide very good opportunities, and may even their customers’ expectations based on thosebe the “bread and butter” accounts you count on relationships. Keep abreast of any changesfor a regular stream of profitable business. Unlike in the customer’s business model and buyingyour long-term Relationship customers, however, preferences. That will ensure you are providing Bigthese Transaction customers typically avoid getting R customers what they need from your company,locked in to a given supplier. Their business model while meeting the very different needs of goodand the products they buy make it possible for Transaction customers as well. If each customerthem to “play the field” if they wish, as they are feels you are providing not only valuable solutions,not going to incur much in the way of switching but selling to them the way they want to buy, yourcosts. These companies are less dependent on a relationship with them will be a strong barrier tosupplier for support, expertise, or long-term mutual competitor encroachment.growth. They are most likely purchasing a solution About the Author:or product that is viewed as a commodity andare more likely to be responsive to offers of price Michael Leimbach, Ph.D., is Vice President ofreductions. How do you ensure you don’t lose Global Research and Design for Wilson Learningthese Transaction customers to competitors? By Worldwide. With over 25 years in the field, Dr.providing them with what they care about the most: Leimbach provides leadership for researching and designing Wilson Learning’s diagnostic, learning,1. Price—These customers do care about and performance improvement capabilities. Dr.getting a competitive price and are vulnerable to Leimbach has managed major research studies incost cutters. sales, leadership, and organizational effectiveness,2. Conformance to specifications—They may and has developed Wilson Learning’s impacthave quality specifications and other requirements evaluation capability and return on investmentthey expect to be met; it’s important to make sure models. Dr. Leimbach has served as a researchthey receive exactly what they need, every time. consultant for a wide variety of global client3. Delivery—How and when do your organizations, is on the editorial board for theTransaction customers need and expect delivery? ADHR professional journal, and serves in aIf you can be faster than your competitors or more leadership role for the ISO technical committeeable to deliver at certain locations at certain times, TC232: Standards for Learning Service Providers.you will have a competitive advantage with these Dr. Leimbach has co-authored four books, hascustomers. published numerous professional articles, and is a frequent speaker at national and global4. Availability—Transaction customers need conferences.to know they can rely on you to have what they 24 marketingtimes
  • 25. Finding all the sales and marketing industry news has never been easier thanks to theSales and Marketing Executives International’s SMEI Weekly. The Weekly providesonly the articles and information that heads of sales or marketing departmentsneed. Sign up today to start receiving great content from the SMEI Weekly.Subscribe today at: multibriefs.com/briefs/SMEI 25 marketingtimes
  • 26. 2011 Sales & Marketing Conference Awards & RecogntionSMEI Honolu Receives Chairman’s SMEI Akron ReceivesGold & SMEI Raymond Bill Award Chairman’s Gold Award SMEI Vancouver Receives SMEI Minnesota Receives Chairman’s Gold Award Chairman’s Gold Award Ritz-Carlton Resort San Juan, Puerto Rico 26 marketingtimes
  • 27. 2011 Sales & Marketing Conference Awards & RecogntionSMEI Hampton Roads Receives SMEI Past Chairman Award Received Chairman’s Silver Award by Nathalie Roemer CME on behalf of Jeffery Jackson CME CSESME Puerto Rico Recognized as SME Puerto Rico President Carlos 2012 SMEI Conference Host Marche CME CSE Opens Conference Ritz-Carlton Resort San Juan, Puerto Rico 27 marketingtimes
  • 28. 2011 Pinnacle Awards Ceremony Angélica Fuentes Téllez Jeffrey Hayzlett, CME CSE Angélica Fuentes Téllez is one of the Jeffrey Hayzlett is a global business most influential women in Mexico and celebrity and former Fortune 100 Latin America due to her proven track c-suite executive. From small businessrecord as a businesswoman, her influence to international corporations, he has in development of public policies, and put his creativity and extraordinary her philanthropic commitment with the entrepreneurial skills into play, launching community, women from Latin America ventures blending his leadership and the arts. perspectives, insights into professional development, mass marketing prowess and affinity for social media.The SMEI Academy of Achievement was established in 1990 torecognize notable lifetime contributions to the free enterprise systemthrough personal and corporate success in sales and marketing. Itis SMEI’s Hall of Fame. Each year, individuals who have made asubstantial contribution are recognized as Arbucle Fellows. RightPhoto: The 2011 Arbuckle Fellow awards were presented, l to r -Jeffery Jackson, CME CSE (presenting) Clinton Schroeder, CME CSE;Lisa Dennis, Jeff Fawcett & Willis Turner CAE CSE (presenting). 28 marketingtimes
  • 29. SMEICareer Center Find the people and careers driving innovation. Dedicated to the sales and marketing Advantages for Employers community, the SMEI Career Center Employers can fill positions faster and is a valuable search and recruitment at a lower cost than other job websites resource for professionals and by reaching a qualified and targeted employers worldwide. The SMEI audience of sales and marketing Career Center offers simple and professionals. easy-to-use tools to make searching for career opportunities and finding Recruit Top Talent qualified candidates fast, efficient Target job seekers committed to and successful. the advancement of sales andConnecting professionals marketing careers. Tools for Job Seekersand employers in the sales The SMEI Career Center gives job Low-Cost Posting Packagesand marketing community. seekers access to inside opportunities Reduce recruitment costs with available only through the association flexible, affordable posting options. and provides the tools needed to quickly find and apply for jobs. Proactive and Direct Recruitment Take advantage of search, email Advanced Job Search and online advertising options to Find the most relevant sales recruit candidates. and marketing jobs from top employers across the globe. Visit the SMEI Career Center Customized Job Alerts Discover the difference the SMEI Stay up-to-date on the latest Career Center can make for you. To opportunities by receiving search jobs, post jobs or learn more, automated notifications. visit www.smei.org/jobs. Apply for Jobs Create an anonymous profile and resume to quickly apply for jobs and have employers come to you. www.smei.org/jobs