Tuesday, February 10, 2009

Marketing Research You Can Copy Now!

“Talk to your doctor about Cialis,” said the overly friendly voice at the end of the Super Bowl commercial. Just then, there were some less friendly warnings that I think said, “Stop taking Cialis if you experience cramping, or if your liver starts kicking your duodenum, or if an image of the King of Clubs appears on your forehead.”

All prescription commercials seem to follow the same, apparently lucrative even if warning- filled format. Yet, they likely figure, “Since 80% of our prospects will be ‘turned off’ by the little, tiny, insignificantly debilitating side effects, let’s mark up our price to 812 times what it costs us to make it.” Then all the 3-eyed board members laugh manically and go to lunch at the nuclear power plant.

Yet – legally required warnings aside – the pharmaceuticals have several zillion dollars (each, rounded up) to spend on research including demographics/psychographics and the most likely hour we’ll arise in the middle of the night to deal with that little “going and going” problem.

You’re not seeing ED drug ads during the Tyra Banks show but you are seeing Anti-depressants during the Nightly News. You are seeing ED drugs more before Valentine’s Day, but less allergy medicines after allergy season wanes. Not exactly coincidental, and the results are staggeringly profitable.

You think predicting a plumbing problem is difficult? You think aiming your furnace message to the right crowd is tough? Try combing through 2 billion people who all claim individuality, and would like to keep their medical problems to themselves.

Four marketing lessons emerge from these gargantuan models, worthy of emulation. If, in a downward-spiraling economy, you’d prefer to copy than to re-invent with your own wallet, I offer.…

$660,000,000 of Marketing Research You Can Copy Now (This sample will ONLY be open to the public for 24 hours; thereafter only for Coaching Members.)

1. Direction or Call-to-Action – Drug companies always give specific “call to”, “ask” “get a free DVD” advice. Tell your prospect what you want them to do. Especially in a downward economy, leaving them to “guess” is a bad idea, a waste of your ad space, time, and money. This has been my advice for 8 years in a row; significantly more important now. No guessing allowed.

2. Damaging Admission – Drug companies are law-bound to mention anything that occurs in a certain percentage of cases, laughably-frightening or not. Yet in marketing – and here’s the lesson - there is an “automatic filter” that we all employ when an offer sounds too good, too perfect, the be-all, end-all of our misery. Thus, a “damaging admission” is a honesty-inducer, effectively opening the filter toward credibility. Such as - -

“We have the most popular colors and the biggest selection in town!” is ‘typical’ ad schlock, filter set to “high”. Then read, “We have virtually all colors, but navy blue sells out the fastest.” This one is far more specific, interesting, urgent, and allows the customer to ‘accept’ other statements more readily. The trick is to make your “admission” positive.

What is worthy of admitting? What % of calls are handled same day; how often are you late; what’s your customer retention rate; what’s the warranty claim rate. Any of those ‘exacting’ numbers are more believable, turning, “We have the #1 Best Service Department in Town!!!!” (Unqualified, highest “filter” rating, common) into “Voted #1 in with a 96.6% Excellent Rating!” (Specific, limited, credible.)

3. Targeting – This is actually the most important one, but put here on purpose. The “who” you want to attract must match the audience for the media. This is why you won’t see Viagra ads on the Tyra Banks show, but you DO see anti-depressants during the Nightly News. Not coincidence. What is your targeted audience watching, reading, listening to?

The best target – by far – is your current customer base. Immediately after is a shocker: former customers. Then referrals, then those “like” your customers, then those in proximity to customers. This is the most efficient method of contact, with the highest “probability” of sale, now more important than ever. Leaving your customer base “to chance” financially suicidal. Your competitors will gladly invite them to dinner, serving you as the main course.

4. Benefits over price – In a weakened economy, “cutting prices” up front is common, but often interpreted as “desperate, quivering, weak” negating any real gain. They don’t know how much a furnace tune up should cost; discounting up-front is pointless.

Make sure your price cuts are positioned powerfully after benefits are spelled out. The drug ads speak initially of “improvement, health, increased energy, no soreness” and other benefits, then offer a free 1 month Trial, making it irresistible.

Offering a free energy survey, plumbing ‘freeze free’ inspection, 4 outlets for the price of 3 had better come after value points made. Also, better to “bundle” services as a discount once in the home, such as, “I’ve invoiced you for the water heater today, but since you’ve already paid for the trip charge, we’re reaching out to customers who’d rather not pay it again on a small repair. So, with your permission I’d be glad to take care of any other smaller repairs while I’m here, or could I ask you a few questions about your plumbing and heating system?”

See, this way, you’re adding to the transaction size, getting closer to an agreement sale, locking in the customer, and filling up a tech’s time with billable hours, gaining valuable “future sales” information simultaneously. Not bad for 2 sentences.

LIMITED TIME CASE STUDY ACCESS: Problems on the website, and several other places too

Okay, now the LIMITED TIME ACCESS to a free rewrite, using most if not all the above. This was for a P&H company’s website, which was about stupid looking anyway. No one could find it either. (Not my specialty, so I sent them to www.markethardware.com)

The home page copy was rotten. But it was taken right out of their oversized, junked up Yellow Page ad. (A failure from the start, but they told me, “But we already had it!” as if that was a bonus. Like saying, “No need for Salmonella, I already have syphilis!”)

Then, if you DID call them, their CSR had NO CLUE how to “convert” a call into a sale, upsale, or an appointment for that matter. Very pleasant, but largely ineffective. (This wasn’t my specialty either, but we spent a year on this subject and found it is a profit sinkhole of epic proportions. Get this fixed. Call or email here for options.)

I was hired to do the copy rewrite, several pages, lots of good money invested. Here’s the OPENING paragraph only, rewritten using the lessons you’ve just read:

‘Typical’ Company A Opener: “Our Plumbing and Heating company is always available, 24/7, to serve the needs of our many customers. We’re #1 in the service area in quality and dependability. We know plumbing and heating. We have a great selection and best prices too! So, for ALL Your plumbing or heating needs, call on us today! XXX-XXXX.

Okay, even though I’m about to throw up after writing that schlog, which is painfully reminiscent of virtually every amateur with a braggy but low performing ad, here’s the rewrite...

‘Atypical’ Company B Opener: Your plumbing and heating system doesn’t always work perfectly. (Nothing in my house does!) But your call is welcome here – 24 hours a day – and routed to one of 5 stocked trucks, with a skilled tech that can solve your problem in ONE visit, 94% of the time! (We’re working on the other 6%!) Company B doesn’t waste your time hunting parts or guessing. Gives us a call at XXX-XXXX.

Be specific. Target your message. Give “admissions” to raise credibility. “Position” yourself powerfully, not negatively. And finally,

“Ask your marketing doctor about advertising. Should you experience pain or lack of customers in this recession, stop taking the advice of your whiny competitors and contact someone who’s actually solved the problem in real life, not just seen it on TV.”

NEXT UP ON THE CALENDAR:

Adams Hudson heads to the ACCA Conference and Expo in Fort Worth, February 23-26. Will they change the locks while he’s gone? Will anyone in his seminar learn the methods that put nearly 400 people in a Home Show booth or increased a post card’s results by 17 times?

MegaMarketer Coaching Call – next Wednesday, February 11 at 1:00 Central
TOPIC: Continuity Income and Maintenance Agreements.

Thursday, January 22, 2009

Contractors Are Fired Up!

At some point, it’s just ridiculous. And I love it.

Tuesday, we had a Teleseminar called “Your 90 Day Contractor Marketing Map”. This was under-promoted (intentionally) to a tightly controlled list.

For reasons I’ll let you figure out, we got 41 pages of questions. I couldn’t answer 41 pages of questions if you gave me a two week head start. (I did answer about 15).

But that’s not what I want to tell you now, this is -—

Contractors are fired up. They – I mean you – are not taking this economy sitting down. Oh sure, you got some lazy dogs with less excitement than McKain’s wardrobe designer, but those people are in every industry. I’m talking about the scads of contractors who are pro-active, revved up, and fully accepting that we all make our own economies.

Now, if you work for someone else, this doesn’t apply. But if you’re at the helm, in a commodity, “must have” service then you own your future. You can “re invent” the commodity to become more valuable, more desirable, with better benefits than any “normal” commodity by some creative marketing and packaging.

And that fires me up. But what happened after the Teleseminar choked me up a little, yet excited me far more….

When I read the 41 pages of questions, I saw it written between the lines. I caught the enthusiasm to “Change what you can and not complain about what you can’t”. Good enough for me. Things are changing, they will not go back to the old way. The economy, customers, marketing efficiency, contractor/client relationships, but more than anything, your attitude – even amid dismal headlines – is inspiring.

We pay each other, you and I. I get paid in dollars to straighten out a marketing mess, you get paid in dollars from the hopeful result. Yet when it comes back here in the form of appreciation, or excitement, or the motivation to get to the next elusive level, I feel like we were paid with something far more valuable than currency.

What I “suspected” was in the now-famous 41 pages of questions, came back in the form of your response to our effort to answer, solve, simplify. If you were any part of the following, I thank you from the bottom of my little capitalist heart. If you weren’t, doesn’t matter. You’ve read this far and that’s enough for me.

It’s going to be a great year. Yes it is.


This is what contractors are saying about our teleseminars:

“You Marketers seem to make sales sound so easy! Very encouraging. You have a strategy for everything; looking forward to learning them!”
Larry Baxter
Medicine Hat Refrigeration & Air

“The teleseminar was the most information packed hour I have ever been a part of.”

Skip Farinhas
GMC Air Conditioning Services


“Great information on all aspects of running a contracting company. I couldn’t take notes fast enough!”
Debbie DeGrace
Comfort Air Distributing

“Fantastic info – I can put these ideas to work right now!”
Dana Mack
Atlas Butler Heating & Cooling

“Adams is crazy. Excellent information – why give it away?”
Brian McDonald
Outer Banks Heating & Cooling

“Missing these teleseminars would be detrimental to my business!”
Juan Cardona
JC Heating & Cooling

Thursday, January 15, 2009

Let Me Tell You A Story

Ahh, the nostalgia of car trips. Took one this summer with the whole family, written about in these pages and was only KIDDING about trying to drive and swat my children simultaneously. I actually stopped the car. Anyway.…

Just got back from taking my son to the Sugar Bowl in New Orleans. It’s a 5 ½ hour drive there, even with 515 horsepower from my grossly “un-green” car that may cause Global Warming all by itself. Yes, I’m a consumer pig. But to all you Prius owners, I only drive it 1500 miles a year, causing less than half the pollution your battery packs take to make and properly dispose of. So there.

The above paragraph is an illustration of how numbers don’t have to be boring. There are 4 sets in there, but you got caught up in the “story” a bit. I teased you emotionally with my son; others wondered, “What car has 515 horsepower?” or “Why only 1500 miles a year?” Still others got your Lithium batteries in a wad because you thought I was running mate to the Al Gore Anti-Christ. I created “opposition” and tension on purpose. A scant few of you might’ve wanted the story to go on.

Even though I really DID make the trip outlined above, I’m asking you to make your contracting ‘story’ more interesting. There’s a story in every job, every home, every drop of energy saved (or wasted), every procedure you offer. And it sells.

The clients of ours who have been getting a lot of press for having their best years ever in 2008 (some of it NEGATIVE if you can believe it) know a “story” sells. They sell their story in their ads. Their CSR sells their difference instantly, their techs know and tell why they’re better, how the homeowner WINS by choosing them, “…just like all these others in these testimonials.” (Social proof.) Their support materials – proposals, leave behinds, newsletters, even invoices - reflect the story. It’s a good one, every time. People buy.

Mostly, they compound the reasons (we call these “Sales Stackers”) why the customer should buy, pay more, buy more often, stay longer, and refer willingly. That little list, properly addressed in your sales and marketing process, can make you millions. (Note: Sales Stackers will be ONE strategy discussed at our next national Seminar at the ACCA Conference & Indoor Air Expo, Fort Worth TX, February 24th. (I’d register now if you haven’t already.)

The record-setting guys are beating up many of you –even subscribers to this very newsletter – partly because they’re getting more leads. Duh. You knew I’d say that because that’s what I’m overpaid to do. Many think my job ends when the phone rings. They’re telling a story in the ad, however, that’s only 1 of the 4 parts it takes to multiply your sales in this or ANY economy. The entire list is:
  1. Lead Generation
  2. Conversion
  3. Margin Boosters
  4. Repurchase and Referral Rate

That’s it. There are no more. Sure, you can “save” some expenses, but name all the business breakthroughs you know about from “great savings”. Growth comes from the above.
Your ads are the most “visible” place you tell your story. Lay two ads side-by-side, same size, same product, same color usage. In less than 5 seconds, ALL of you can pick the one that “appears” higher-quality, higher imaged, and more professional.

You’ve just proven – again - that legitimacy desensitizes price resistance while adding to quality perception. (This is scientifically proven by people who do such things for a living.)

Gosh, and I never mentioned COMPETENCY of the contractor in the ad, did I? Clearly, I didn’t need to.

No one will ever get to know your competency if your ad repels people from the start. (I’ve published lists of contractor ad mistakes for years; no space to cover again.) But don’t mistake a good ad for a “slick” ad.

I got a Manufacturer’s Marketing book the other day (HVAC) and almost laughed. All the ads were all very slick… and mostly stupid shrines of self-absorption.

Here’s the kind of questions that only about TWO manufacturers out there will NOT be offended by:

Have their “marketing people” ever been to a prospect’s home? Do they have any idea why customers call you? It’s pitiful. These ads tell virtually no story about why a prospect should choose you – the contractor – yet more than enough to present that “Manufacturer X” is a big, bloated blow-hard whose products have a nice paint job.

Then, on occasion, an ad gets you inside a home. Once there, you’ve been brainwashed into selling “against” others (brands, competition) instead of “for” the homeowner. (Unless you’ve been coached by Drew Cameron, Joe Crisara, Rick Hutcherson, Charlie Greer, Bob Sinton, alarmingly few others.)

I’ve hired enough contractors, spoken to several thousand others, interviewed hundreds of customers on their experiences and it’s all basically the same.

For the most part, contractors rehash boredom, blending into the sea of sameness that virtually assures that the contracting image problem will remain healthy for decades. There’s no excitement, no energy, no story.

The Formula Works. Not Implementing the Formula Fails.

Most “sales presentations” have less enthusiasm than a funeral program. (Component 2 in the Formula fails here.) Most contractor value propositions for upsells are boring or non-existent. (Component 3 fails here.) Reasons to stay in the information loop or get the Agreement program are told about as convincingly as a Rod Blagojevich campaign promise. The follow-up process generally consists of an invoice, followed by immediate short-term memory loss that you actually had a customer. (Component #4 fails here.) Good luck on that referral stream.

You think this economy is going to reward that? It’s not. You’ve got to change it, and 2009 seems like a darn good time to get started. The economy is going to eliminate marginal players anyway, but why become collateral damage because you “seemed just like them” in your story? Guilty by association is rarely rewarding.

Get different. Get a little radical. Tell a Marketing and Sales Story that makes me want to buy, and I will.

Tell a story just like your competitors and I’ll yawn. Hide like the scared ones and I’ll forget you exist. Thump me ‘til I pay attention, make me glad I did, and I’ll tell the world.

Questions for You to Consider
  1. Can I instantly pick my ads out in the Yellow Pages?
  2. What distinction am I “known” for? (If you say, “I don’t know”, that is a problem.)
  3. Is my customer funnel a pro-active process… or a manic reaction?
  4. Why would someone call me again and refer me? (If you say, “Because I’m good and fair” please know that I “guessed” this because 90% of your competitors said the same thing. Think “process”.) And lastly…
  5. Why does Adams drive overly powerful, gas-guzzling cars with little or no social redemption and even less luggage space?

Need a Marketing and Sales Story of your own? Get a plan, some quality marketing, a solid sales process, and retention methods that are so good they’ll scare your competition either into obscurity… or working for you.

“Your Marketing Map for the Next 90 Days” Teleseminar (free to register) is January 20. Click here to join. I’m only getting a couple hundred lines this time and about 160 are gone. Register for free here.

Monday, December 22, 2008

Plumb Dumb Sales Crumbs

Maybe my plumbing system is paying me back.

A previous editorial about "How Not to Sell Plumbing" got tons of response from every contractor type. Most of you "saw" your techs or knew of others just like that: a mild aversion to selling a customer, even one who virtually handed them a Visa card, with upselling hints as subtle as Paris Hilton's nightie.

Apparently, other parts of my plumbing system were getting jealous.
The toilet in my children's bathroom started making some sort of gurgling noise. Mostly at night, when I was the only one awake, just to be creepy. I'd be blissfully reading my Road & Track, when at 1 a.m. the sound of someone strangling a Bullfrog would emerge through the walls. Most unsettling.

The toilet in their bathroom was from the "Pre-Stupid-Era" when men were men and toilets were resource-wasting ceramic cyclones. You could flush a full grown Coconut Tree – nuts and all - down this thing without a whimper.

Yet yesterday morning, telltale leakage spelled the end. The whimpering was mine.
So, we called a DIFFERENT plumbing company this time, hoping for a dose of professionalism and long-term concern. (HINT 1).

The appointment was painless enough. The CSR's lack of enthusiasm had me imagine she was past president of the insomniac's club, but she got the facts right. (HINT 2.) Oversights: Didn't ask if we had an account. Nor if we were "Agreement" members. (Both 'yes' to our commercial property, but NOT at home. I'd have thought this important.)

Plumber arrives an hour after stated appointment window, sans apology or explanation. Didn't ruin my wife's day or anything, but during Christmas, schedules are tight. (HINT 3)

After a brief description followed by three grunt-filled responses, he skulks upstairs to survey the problem. Seems the whole company has a "Let's Have a Lethargy Contest!" attitude. (HINTS 4 and 5). Question: How enthused are you in the face of full-fledged sourness? Just a thought.

Finally, after pondering the situation, he utters a gravely misleading comment that he THINKS is doing us a favor. It isn't.

He says, "Yeah, this thing is worn out. We can replace it. I'd recommend a to replace it." So far so good. My wife is nodding in acceptance. Then he says it:

"You could go to Lowe's or something and get it cheaper. Then we can reschedule for next week and put it in."

My wife, queen of budgetary sense, thought this was a "nice" thing to do. I, however, staggered for words. Still am if you can believe it.

I speak with contractors every week who "wonder" what happens on jobs, what happens with the CSR, the upsell, the Agreement program, customers leaving… and they never know stuff like this goes on. They never know the risks being taken, the words being said, the sales being given away.

Undeniable Truth: The tech thought he was doing me a favor to save some money. That's how he buys. Ever had a waitress at a 5 Star restaurant say "You can get that steak cheaper if you cooked it yourself"? Please tell me the difference.

The point is to DELIVER on the request. My request, the company's mission, the solving of the problem.

The lead and the job was theirs. It was "in the bank". A referral source.

If I'd wanted the ultimate in money-savings, I'd have gone to "Big Box Enemy of Mankind" myself, and called "Larry the Halfwit" to install it. Four bolts and a wax seal. I get it.

If I'd wanted to go to mountains of trouble to save $50 or $100 or whatever, would I have called a legitimate service company?

Oh, and let's not forget… there are other plumbers who actually install toilets.

Since I was already going to Lowe's, I stopped to see the stunning array of toilets. After seeing 47 variations on waste evacuation - fully expecting to find one that'd turn the magazine page for you – I asked the very helpful Lowe's Lady for her opinion. She had one by golly.

She was clear, concise, informed. Talked me "out" of a more expensive one, and actually chose the EXACT same model as Mr. "Please Don't Make Me Sell You Something". Then she asked, "Are you putting this in yourself?" After turning around to see who she was talking to, I answered, "You can't bet your rear I'm not." Guess where this conversation is going.

Smiling she said, "I've got a list of plumbers here who'd be glad to get the work, all qualified, all reasonable."

And therein lies the trouble. Not only did I try to give my money and my business to them, they willingly referred me to the jaws of the competition. Lots of them. All to "do me a favor." I don't want a favor. I want a toilet. (HINTS 6-10. At least.)

The dramatic conclusion to My Toilet Saga will be coming to an ezine near you soon.

Questions for you:
  1. How do you train YOUR techs to handle a situation like this where the equipment isn't "on the truck"? Are they actually doing it?
  2. Have you ever asked your techs if THEY offer "Money saving options" to customers?
  3. Do you have a "policy" on selling what you sell… and not what others sell?

Send any responses to this article to mailto:questions@hudsonink.com

Forward this editorial as much as you darn well feel like it.

Wednesday, December 3, 2008

The Timing and Training of Market Leadership

"Black Friday” sounds rather ominous to me. Though retail in-store sales were “only” up 5.1-7.2% over last year, depending on which horrifically negative expert you choose to fear, this was to be followed by a booming “Cyber Monday” for online retailers.

No matter the outcome, this’ll be followed by “Identity Theft Tuesday”. There’ll be the traditional day of rest to filter your personal data, and then it’ll be “Male Enhancement Offer Thursday.” There’s nothing like Spam for the Holidays.

True as this is, there’s much to be learned from the onslaught. “Congruence” with the season matters, as does incremental timing within the season. (You wonder why we put “Holidays” instead of “Christmas” on our Card offerings? It ain’t for being PC boys and girls – my stance there is well-known – it’s so ‘your’ card has a chance of staying relevant ‘til New Year’s.)

Likewise, we’ve all heard the lazily disregarded radio ads that tout “Summer’s almost here!” in September or “School’s just around the corner” in November. Sadly, we’ll continue to hear Christmas references until it becomes an utter embarrassment to all Wise Men.

The money spent on being perceived as “late, lazy, and/or irrelevant” undoes most any claim you’d have to being fast or efficient. Your example trumps your words, sort of like parenting, but with faster public humiliation. (Spears and Hilton families may beg to differ on this point.)

The antidote for the perception of being behind is of course, to lead. You may ask, “Lead what? Lead how? And what ever happened to your request for submissions on the not-so-sharp non-salesperson who missed 3 sales opportunities while he was replacing your water heater?” Talk about timing!

Leading is an even more fearful concept in a time of great hand-wringing, “holding back” and “Let’s just wait and see what happens.” I’ve long persisted that the last one is more correctly stated as “Waiting to see what the leaders in my market do first, so I can make sure it’s safe to do something.” The leaders lead. The followers follow.

Most would say they would unfearfully lead if they only “knew” what was coming. Let me remind you I’m not talking about going into battle. Or before a Grand Jury. I’m only talking about marketing leadership, or in the case of the current economy, a marketing presence while others retreat. An unrisky strategy if ever there was one.

So, “marketing leadership” becomes easier when a bunch of “me too’s” falls from existence. The marginal contractor, made moreso by his marketing invisibility, will likely fail in 2009. There’s not enough excess to support the invisible. The corollary of “visibility” holds true and can easily be deemed as leadership. Would you rather run a race against 25 competitors or 10? The timid’s response is “Depends on who’s competing!” And the answer will always be, “The leaders”. I presume you’d like to be included.

Yet this year, marketing visibility with efficiency will be our push at Hudson Ink. There will be no “street wise” example overlooked, no tightwad’s angle cast aside. Likewise, though I’ve been saying it for 5 years, your bloated YP budget has got to go. Now. Your resistance to lead before the need arises, cannot wait any longer. A healthy market is forgiving to slackers in the pack; a tight market grants no leniency. Same goes for us.

I’m in this thing with you. (I won’t bore you with our plans, but suffice to say they’re identical to the ones suggested for you.) I’ve joined another Coaching Group, helping create an entirely “different” Coaching Group (more about this in upcoming months) and am staunchly encouraging readers to join in their own. Why?

A mastermind group’s input is potentially the most efficient system on earth. Problems get sliced, diced, repackaged, solved by example, and focused upon with laser-like intensity. You don’t feel like your market’s only pioneer (the ‘arrows in back’ analogy coined by followers no doubt) when you hear a gaggle of “Go for its” from those who’ve been there, done that.

Yes, we offer Coaching Groups but I’m not trying to “sell” you ours (Platinum is sold out anyway) yet I urge you to get involved in one filled with a leadership mentality. You rise – or fall – to a bracketed level of performance and attitude.

NOTE: We are having a F*R*E*E ACCESS Teleseminar for ALL SMI READERS on December 10, 2008. I’m putting 6 of the highest paid Contractor Coaches on the phone for ONE HOUR. All are required to share a strategy or tool worth at least $10,000 to you. I cannot accept more than 500 attendees. You must register here.

Quick Report on a couple of Groups to Avoid and Embrace here.

Now, this finally brings me to the smorgasbord of “Group Think” support by listing the answers to a question posed two issues of SMI back.

The Missed Sales Opportunities

Sometimes I think I have all the answers, and just then God laughs at me and makes me trip over something. Like the other week, I asked for “three ‘missed’ sales opportunities" from the plumber who was at my house. From a DELUGE of reader emails, it appears he missed FIVE opportunities. Counted ‘em myself. Here you go…
  1. The Sump Pump. This was so obvious Stevie Wonder and Estaban both wrote in with the right answer. Of course, I told the plumber that I wanted him to look at it before he left and let me know. He didn't. I still have the problem and will call another to solve it. Sorry.
  2. The “Tankless” water heater. Ugh. He actually told ME about this option, to which my wife, also known as, “What’s a budget and why would you want one?” expressed interest. Never told me the price, availability, installation time, benefits… nothing. Me and my “budget” are secretly relieved.
  3. The Maintenance Agreement. Talk about a softball. I’m standing there in 4” of mud on a Sunday, faced with Emergency OverTime Double Secret Upcharges with hints of gas fumes in the background… and not ONCE did the word “Agreement” emerge. (This company DOES offer them. I guess you have to beg them for it, along with certain quotes.)

Nearly all of the respondents got those right, for example:

“I would recommend our Maintenance Plan or complete home plumbing inspection – this reduces the chance of another one if these last minute, Sunday afternoon issues and maybe save water,” said Tim Bruce, General Air Conditioning, Inc.

“He missed the upsell on the water heater (tankless or high efficiency), cost to bring gas installation to code, and replacement/repair sump pump. Not to mention a service agreement on the new unit,” explained Garth Hepler, Roth Heating & Cooling.

Yet the real “thinkers” added the following….

Paul Guzman of O'Connell Plumbing, Inc. wisely suggested a Flood Detector/Alarm.

And Tom Hawkinson of Air-Tech Services saw another angle when he suggested, “Hey, Ronnie turned off the water heater for you so you wouldn’t die from carbon monoxide poisoning. Good move on Ronnie’s part (maybe the only one). But wait…how do you prevent carbon monoxide poisoning in the future? Well, sell the customer a carbon monoxide sensor, of course.”

So there you have it. Timing, success, and mastermind thinking all rolled into one. Makes you think there might be a connection among them. Hope you’ll join us on our F*R*E*E* Coaching Teleseminar on December 10. I may not ever invite these people back here again, so you’d better go register and see what the heck’s going on. You might learn something from us, and almost certainly, we’ll learn something from you.

Have fun,

Adams Hudson

Friday, November 21, 2008

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.

Thursday, November 6, 2008

“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”?