Marketing MapQuest

Last issue’s editorial, about how to “NOT” sell things to customers in need set a record. It achieved the highest click through rate of any editorial in 2008. (If you don’t know about “click through rate” it has nothing to do with how fast Dorothy and her Ruby Slippers get back to Kansas. Nothing.)

Why do I tell you this?

1. To brag. Look, I’m a marketer; we live for stuff like this.
2. To let you know that your customer’s response is a vital measurement of your message relevance.
3. Measure anything you want to improve.

None of the above affected the story’s popularity of course. (Read here if you were one of the 3 people who missed it.) The above list is merely the outcome, the result, and the trailing indicator of what to do next.

Wall Street is full of trailing indicators that give forecasters the upper hand (and lower GI issues) in picking what to do next with the money... if anything. Equally in marketing, trailing indicators help you spot rising trends, products on plateau, those in decline.

Trailing, Forecasting, Surprising Results

In these pages and in coaching groups, we’ve long been pushing “down” in YP expenditures. Seems illogical since we design ads for a fee, indicating either business idiocy or inability to cite profit as a sole reason to recommend.

Results are generally a huge savings, with either no discernable lead drop (provided the ad is improved) or an increase in lead count.

Though certainly not due to contractor’s insistence for better cost per lead, yesterday’s Wall Street Journal cited that the Yellow Pages print and online are in serious financial straits. Shares of R.H. Donnelley and Idearc (top publishers) have plummeted 99% in the past year. Looks like the world realized the decline of relevance all at once.

Though there are a couple dogs in this next media, we’ve pushed way “up” in targeted direct mail, meaning a higher quality list at a lesser quantity of mailing. Our real push started in June 07 as the new construction fallout was apparent and markets were poised to be flooded with low-cost competitors. The higher- than-expected results help launch what we now call “Cluster Control” (Entire Seminar devoted to this winning strategy at the ACCA National Conference, February 24-26 in Fort Worth, Texas.)

Conversely, we’ve advised “down” for broad mailings – Card decks, blind “occupant” mailings, and others chosen primarily for volume. Bad idea. Let your competition be fooled after a huge mailing has him saying, “Why isn’t the phone ringing?” Hear me: Frequency over reach.

As the economy worsened through Spring 08, contractors began reporting better than average returns on a proven cash producer.

Customer Retention got a large, unintended boost this year. Seems if “asset protection” is wise in a downturn, it’s hard to name an asset more valuable than customers. (If you shout “Money!” please recall the source of that money.)

What’s Working Now

When you read the above, you can sense the leading indicators. Though I’m a little shy to project too far out, there’s broad insight from contractors who’ve shared healthy results.

Example from Real contractors…

Bill Stribling at Sullivan Service Company is a great guy. Very well-liked by customers; but, like many contractors, sort of “overlooked” Customer Retention. He got more serious about it last year. He said, “To say things have been slow is putting it mildly – we were almost to the point of calling our own numbers just to make sure the phone still rings! Then the newsletter you did for us went out. Suddenly it’s all anyone is talking about – church members, friends, and thankfully, customers!”

Jimmy Eanes, another contractor friend of ours told us “I sent out 6800 issues to my customer base and during the next 4 weeks, over 124 calls came in. Some of them we hadn’t spoken to in 3 years! We sold $169 tune-ups (great idea) yet normally have trouble selling them at $79! Plus we sold 12 complete systems for $62,728. Basically, my customers love the newsletter… and we do too!”

Juan Cardona in West Virginia noted, “Though I sure don’t tell my wailing competitors, we just had our best October ever. It feels good to be able to serve more people.” Main factors: Good hire from summer; Fleet-wide truck wrap; “Clustered” Direct Response; Newsletter.

What’s clear from the above – Decisiveness. Action (largely resistant to over analysis or needing approval), Willingness to change and track. Not easy in turbulent times. Maybe you need.…

Your Marketing Map for the Next 90 Days

To help all of you move forward, we’ve launched the most ambitious schedule of our lives, with 2 upcoming events in December, another TBA in January -

1. Marketing Map – Webinar on December 3 hosted by ACCA for ComfortU members. Go here to join or register.
2. First Time Ever. No plans to repeat. Coaching Club Bonus Meeting – December 10. Six of this nation’s hottest (and most expensive!) contractor consultants will be in my office visiting. I figured, “Why not put ‘em to work!” Basically, there’ll be $35,000 a day worth of talent on the phone for those who register soon. Sales, Hiring, Customer Service, and Marketing topics covered. Require each expert to “GIVE AWAY” a tool or idea worth a minimum of $10,000 on the call. Thought about making you pay for this one ($1000? $500?) but it’s a no-cost event. Limited to 500 lines. Am not buying any more than that. Register or miss out, your choice. A surprise announcement may be made.

“Hey, Let’s Lose Some Sales! Blame it on the Economy and Cheap Customers!”

A True Story (much as I hate to admit it.)

It happens. I was nervously preparing a speech to my church, (for BOTH services, 2500 members or so) and as you might guess, I’m “just a tad behind” getting ready. I decide to take a shower at the last possible second, since its considered bad form to reek at the lectern. Then, since I have remarkably sensitive powers of discernment, I notice….

NO HOT WATER!

That’s right. Go ahead and laugh. I took a shower that would give a Penguin hypothermia. As a result, I complete the entire cleansing process in 2.8 seconds. Possibly God’s way of making sure I wasn’t late.

Anyway, the water heater was in the home when we moved, 11 years ago. Figured it’d be “on the list” soon enough. We did the roof three years ago (no, I don’t remember by whom, haven’t heard back) and paint the next summer. (I referred him ONE $11,000 job, never acknowledged, never got re-contacted. Oh well. Guess I can’t remember him to refer for the neighbors across the street.) Since we’re now contemplating a kitchen remodel, the water heater must’ve gotten jealous.

When I swung open the basement door, I though I heard, “FIX ME, FIX ME! I’m gross and underappreciated!” in a rusty little voice. So by golly, we did. Called the plumbing company that also does our heating and air. Things went downhill from there.

The rest of this story might be a tiny bit painful. Please know I don’t do individual consulting any more (except for Platinum members) but thought you might find this valuable. Also realize that most homeowners would just be happy to get hot water again. They’re not even THINKING of telling you where they might be “sellable”. This story reveals the other side of the sale...

The answering service on Sunday had no idea who I was. Understandable actually. Told her everything again. Tech calls me back. “HAY!” he says at Volume 12 “CAIN’T GIT THERE FOR TWO HEURRS.” Understood. What he lacked in couth he made up for in conversational economy. He said he was busy, but his timing bore a remarkable resemblance to the NASCAR race. Ten minutes after the final lap, the doorbell rang.

“HAY! I’M RONNIE WITH and…” since I refuse to put the rest of this article in capital letters for fear of grammatically-correct hate mail, just know that Ronnie doesn’t have an “inside voice”. People two blocks away became startled when he spoke.

He did a good job telling me of his “trip charge” for a Sunday visit. Understood. Said it had gone up from $69 to $80 recently due to fuel prices. However, my wife promptly pointed out that fuel prices had “dropped dramatically… so was the trip charge going back down?” For the first time in our 87 year marriage (rounding up), I actually gave her “the look”.

I gave Ronnie an out by complacently saying, “It’s a moving average, so…” but Ronnie interrupted, feeling compelled to defend it anyway.

For 5 minutes he discussed the $11 rise. He told of customers who were mad about it, didn’t understand it, and the problems the CSRs were having with explaining it. Frankly, this sounded more like “their” problem than mine, so guess who wasn’t interested?

Sales mistake: Ronnie forgot that my “real” problem was no hot water. NEVER confuse your customer’s problem for a reason to vent your own or to create a problem that clearly wasn’t. It got worse.

Ronnie and I ventured indoors, he stopped. “HAY! I GOTTA PUT ON THESE!” Sorry. He put on his Shoe Covers, but instead of “GOTTA” he should’ve said, “At , these are required to protect your property.”

Small Sales Infraction: “Justify” your behavior, habits, and practices as your “difference” on every opportunity. Otherwise, is it a burden… or branding?

As we walked toward the Neolithic Water Heater, just past the dinosaur bones, I pointed to my sump pump, which had worked overtime scavenging the water produced by the erupting heater. “HAY!” I said just to get him back, “After you finish with the water heater, my sump pump is very erratic. Works when it feels like it.”

“Will do” Ronnie said as he fondled the water heater. “OH man, this is gonna be a problem…” and his voice trailed off. I left the basement, Ronnie, and the heater to work things out.

Eventually, Ronnie tells me he “can’t” get a gas water heater down there like I had. Said the last plumber fouled things up. Said it was too dangerous, code wouldn’t let him, plus if he did (though he’d already said he “couldn’t”) he’d have to move it way away, run more gas lines, lots of cost. Recommended full electric, but said there was another option for “instant” hot water, no tank, a bit more cost. Would get us the estimate on both. Stop right there.

Two sales mistakes: Told me everything he couldn’t do, compounded this with “bad history”. Sometimes this is done to support the upsell, but in this case, he told me what a mess things were, how the last plumber was an idiot, “code violator”, etc. Failed to mention why his company had stood inches from this area repairing a sink drain, but never mentioned my water heater was a Saturn V rocket, spewing Carbon Monoxide.

Ronnie had unwittingly entered the Serious Risk Zone: What if I had put the water heater in? Or my beloved, well-meaning, but now-deceased relative? Or an ill-guided representative from this company? Is Ronnie psychic, or just regularly prone to insert shoe cover in overly loud mouth? A brief detour…

In top automotive sales-training curriculum, you NEVER say or agree that the clapped out trade-in is “junk” even if the owner uses that word. You are to say, “Well, you’ve certainly extracted lots of miles out of that one…” or “You must be pretty good with maintenance to have nursed it this long” but you NEVER agree or suggest that it’s junk, or that “their mechanic” must be an idiot. Same thing here. It gains nothing.

Ronnie tells us he can’t finish the job that day, but has shut things off to be safe, which we appreciate. Says his supervisor will get with us early Monday to report and suggest. He does. Says to remove the old one (a job and a half) and install a new 50 gallon “low boy” all electric heater will be $850.

Two more mistakes: First, the “exact” number of $850 is too round, imprecise. Prices weren’t broken down. Since I don’t browse the water heather section often, how am I to know if or how this compares? Is the labor $50? Or $500?

Second is worse: Fails to quote us the “other” option that my wife was honestly interested in. We then would’ve had comparative value instead of mild sticker shock, and actually gotten to choose. In terms of the kitchen remodel we’re planning, this might’ve been worthy. Did he ask? Too late now. Ronnie needs to cancel his Psychic Friends membership.

Though very shaky in his sales presentation, we half-reluctantly bought from the company. (A lesson in there by the way. They mail us several times a year, call us for reminders, thank you’s, treat us very well on the HVAC side, and have an “agreement” with them. I’d call myself a “tentative” customer on this side. We’ll see.)

Would others have done so? Overlooked the missteps? Checked around? Bought more if asked?

Epilogue: Those of you convinced the economy is solely to blame for hurting sales; look inside to see if a little training investment mightn’t be well spent. Anyone in touch with customers needs it. (Hint: your CSRs commit even more sales infractions.)

If you think this is the “end” of the story because it was the “end” of the sale, then you’re definitely a candidate for improvement. Why?

Because some who were reading closely figured out that Ronnie also missed three, rock-solid, nearly guaranteed sales. But he didn’t even try. Send me your answers here: askadams@hudsonink.com

Questions:

1. How can you raise your average transaction size on every call, starting now?
2. Do you believe that great Customer Service Skills also sell?If so, what are you doing about it? (If not, please hand the reins of management to someone else, immediately.)
3. What are you doing to be remembered and referred that is different from “all the others”?