Wednesday, July 30, 2008

Organ Music

Each year, near my birthday (which now comes at alarmingly short intervals) I schedule a physical. This year, I was told my blood pressure was low (good) and I didn’t appear to have any parasites living with me (my children don’t count).

Yet, during the most demeaning moment of this annual ritual, my doctor said words that strike fear into all males nearing my age: “Your credit card was declined.” Wait, no, that’s not it, it was…

“We need to schedule a laparoscopy.”

Doctors often say the word “we” which generally only means “you”, because I don’t really think he wants to get the “Two for one” Laparoscopy special with me. Same with their receptionists who often say, “…and how do we want to take care of the co-pay today?” in a kind, kindergarten teacher’s voice. Next time I’m tempted to say, “I’m going to pay mine in Candy Land tokens; how about your part?” It won’t be the first office I’ve been kicked out of.

My doctor – whom I truly like – began to describe the Laparoscopy process. He said a Gastroenterologist (Latin for “Your spleen is showing”) will schedule me to come in on a Friday. I already interrupt: “Why Friday?” (I’m thinking it’s to celebrate.)

“Well,” he looks at me over his reading glasses, “because you might need the weekend to rest…” and his voice trailed off like a horror film just before the commercial break. He continued, while sweat formed on my lip.

“On Thursday, you’ll be drinking a mixture of liquid to ‘cleanse’ you completely.” He looked over his glasses again. I could almost hear the organ music. (HA! Get it? Organ music! You don’t get quality humor like this just anywhere.) At this point, I felt it would be inappropriate to ask if by “cleansing liquid” he meant that I would drink a liter of Sprite and shake myself violently until it shot out my nose. (Not that I have any personal experience with that method.) I compose myself.

For the next few minutes, he described the process. What I gathered – and I’m doing my best not to be graphic or technical – is that I would be drinking about 400 gallons of LiquidPlum’r. After this, my organs would be buffed and detailed using a Shop Vac and Orbital buffer. Some of them might need re-chroming. Then, dozens of doctors would recommend an RFP for my EKG hoping I wasn’t NSF.

Okay, that’s what it sounded like to me. I was feeling weak and almost dropped a platelet. After this description, he takes off his serious glasses and asks,

“Does this sound okay with you?”

I immediately wonder, “What happened to the us part?” but decide to ask two important questions instead: 1) Will insurance pay for it? And 2) Will insurance pay for it? My second question was actually, “And what is the purpose of this little procedure?”

He answers solemnly. “It’s to help keep you alive and healthy and loving life for as long as we can.” A bit of silence. Now the insurance question didn’t even rank.

My doctor is no salesman, but he’d clearly crossed the “cost versus benefit” line. Deal closed.

Tuesday, July 1, 2008

Oh No! My Car Has a Hanging Chad

It seemed like a good idea to get new tools. I mean, it was Saturday, there were a ton of Father’s Day specials going on. Plus, it was my birthday. For those of you who keep up with such things, this means I’m a Gemini, which as I understand it means that I’m tall, handsome, and smarter than most Nobel winners, but too humble to admit it. So these things are eerily accurate.

Earlier that day, I’d taken one of my old cars to my favorite shop for a little transaxle leak. Okay, it was gushing enough oil to have triggered an alert to Green Peace. So I drove my trusty truck to what USED TO BE “Where America Shops” and began shopping for tools, atypically clutching coupons and door buster specials. (My wife was proud of my shopping prowess. All of it was her idea.)

A red-vested “Product Specialist” appears, sensing a valid Visa card, “Can I help you find something special today?” he asks. “Well, lucky you,” I responded, “I need a new tool chest, some shiny things to go in it, and it’s my birthday.” Smiling he responds, “That’s a good start!” Things went downhill from there.

Oh, we found the deals. We fondled the socket sets (not together mind you, that would’ve been just weird) and I even selected a lighted work bench, with a drawer and external plug. All was well, and then my cell phone rang.

“Uh, Mr. Hudson” said my normally confident mechanic in a voice that sounded apologetic, “I’ve got some bad news.” I braced, “Hit me,” I said.

“Seems we already did. My dad backed into your car. I am so sorry.”

Wishing Reality was a Dream

Wow. My car is 34 years old, wearing totally original paint. In fact, it is a totally original car other than stuff I couldn’t leave alone. If you’re a car nut, this matters. If you’re not, there’s no help for you.

I finally mustered a response, knowing his dad to be an ageing, very well-meaning supporter of his son’s struggling enterprise…

“I can’t get mad enough to make that dent pop out, so that won’t do us much good. Tell your dad I’m sorry it happened and I’ll deal with it Monday,” I said.

With sincerity that true remorse brings he said, “Hey, we’ve called the insurance company, they’ll be out here Monday. I’ve taken pictures of it. It’s honestly not that bad, but that probably doesn’t make you feel any better.”

His attitude made the difference. He didn’t cause it – which is why they’re called “accidents” – and he’d taken the steps to prove responsibility. No amount of teeth-gnashing, blood-vessel swelling, or name-calling ever helps in these situations, though many attempt this course. All I could say was, “It’s okay. Just a car. No one was hurt. It’ll be fine. Thanks.”

I snapped the cell phone shut, in suspended disbelief, and was snapped into reality by my new best-vested friend, “I’ve got your total rung up for you!” he said beaming. And then the second car wreck of the day ensued.

Wishing a Dream Was Reality

I figured I’d be outa there by noon. It was just 11:40 am. Keep that in mind.

Mr. Red Vest developed a puzzled look on his face as he repeatedly pushed secret buttons on his magic computer. Apparently, the life-ruling computer was changing the rules. “We don’t have any more of that 5-drawer tool chest, even though the computer says I have two.”

The computer lied.

“Can I get the floor model?” I queried, sensing bargains-a-plenty. “Sure,” he responded, “for another 10% off!” I go to inspect for major dents or chewing gum in the drawers. Looks fine. “Ooops, no keys,” he says, “I’ll just throw this lock and key set in with the deal. Is that okay?” I’m slightly less enthused, but he was trying, “Sure thing.”

So we walk back to the check-out and the computer won’t let us check out with this new discount. Ten minutes elapse, and a frowning gray-vested managerial person appeared. He had quiet but stern words with my comrade, whose body language seemed defensive.

Another few minutes pass and he informs me, “Uh, I can’t give you the lock and keys. You’ll have to buy those.” He did the old eyeball glance at the non-speaking manager to let me know why. I felt the value-over-ride switch in my brain click. This switch also bypasses my better judgment, so without thinking I turned to gray vest…

“Are you the manager?” He nods. “Did you just tell him that I am to pay for the locks in this purchase?” He nods. “Do you have any proof that I’m the one who lost them?”

“No,” he utters his first word, and appears to be scanning the store for security.

Stopping point. Note his attitude. Note his cowardly nature. Note his inability to see that his “Product Specialist” has rung up a sizeable total yet believes the $7 lockset is recklessly gratuitous. Note the short guy assessing a marketing meltdown…

I collect my thoughts, sort of. “Since I didn’t lose the keys, can you see any real reason that I should have to pay for them? And before you answer, please notice the $580 of merchandise that will easily fit back on your shelves.”

Need an Attitude Check on Aisle 4

With this, he takes his little official card-swiping necklace thing and swipes it into a machine, allegedly giving me “credit” for the $7 lock in question and turns around. At this moment, I was torn. I didn’t know whether to cancel the sale to teach Worm Man a lesson (ripping the commission away from a man who earned it) or to let his terminal customer service defect go unchecked.

Fortunately, Worm Man catches that I’m staring a $580 hole in the back of his vest. He turns and says, “I really do appreciate your business; we’ve just been under a heck of a lot of pressure lately. I hope you enjoy your purchase.”

Smiles all around. It’s 12:05. I pull my truck to the loading door where I’m told it’ll take “5 minutes” to go get my stuff off the floor. Make that ten. Okay, it’s 12:20, no tool chest. Apparently, the computer never told the loading fellows that it was on the floor. (Funny, the computer never asked me anything.)

They eventually locate the runaway chest and load almost everything in the truck. “You’ll need to go to the warehouse to get the workbench. Just show them this receipt.” It’s not far, but my teeth are grinding to the point of expelling little teeth chards and the guy thinks I’m choking on a Trisket. It’s 12:30. I stuff my wad of receipts in the console. As I’m driving away, it hits me: “Why do I have a wad of receipts?” (This is the male shopping gene. Females look at receipts and say, “I don’t have NEARLY enough!”)

In the warehouse parking lot, I unroll said wad to see I was charged twice for my tool chest. I briefly consider redelivering my entire purchase through their front door.

I’m staring at the warehouse entrance. A big bay door is open, and one lone worker stands at the loading dock. I have a partial order in my truck, an overcharge in my hand, and have spent a full hour trying to give this store $580 of business. Above the door, in faded paint, I see the tagline, “…Where America Shops”, and think, “Not any more.”

Points to Ponder –

What is your customer process?
Why would anyone recommend you? What do you do to encourage referrals?
How hard are you to do business with? What one thing would make it easier?

Thursday, June 19, 2008

Both Are Right, Both Are Wrong

“I’m not getting the leads” says one contractor. “I’ve got too many leads” says another. Both are right, both are wrong.

Not getting leads sounds like the bigger problem, so we’ll attack it first. The questions I go through with each call like this are: What have you done to build leads and keep customers for the last 3 months? (You’ll note the question is NOT “what have you done this morning”.)

If that answer includes adherence to a marketing plan with a good supply of response-oriented ads sifted into the market with a portion of every sales dollar earmarked for retention, then that’s really good.

I’ve spoken with only 4 people this year (out of 400) who have legitimately done this and NOT seen their market results flourish. That’s a pretty decent “hit rate” on results, understandably resultant from strategy, not panic. It’s that old “pro-active vs. reactive” argument, for the 100th time. Those who have done MOST of the right stuff have faltered somewhere in the “monkeying” around with otherwise proven ads, or “sort of forgot” to do customer retention. That party has a way of coming to an abrupt halt, which brings me to this —

Those with “too many leads” sometimes short-circuit their success by saying, “I’m so busy, I don’t really need to market anything.” Had a guy call and cancel his summer newsletter for this very reason. So the very things that got him busy, he’s willing to cut off in the busy season, not recalling that “all this business” will not be there in the Fall, or in the winter without an attempt of retaining them.

As I’ve oft repeated, marketing is a mix of math and behavioral psychology. If one of those doesn’t “hit”, then they both fail. Often the “hits” are made in combinations of efforts, such as we’ve discussed.

The killer newspaper ad – if not followed up with good sales skills, timely installers or techs, service reminders and newsletters – is no better than a LOUSY newspaper ad because the “bottom line results” don’t really change. Remember, keeping a customer costs 1/6 of getting him. Generally his referrals are free.

Get a plan. Work the plan. If you’re successful with it – like most of those of you who do follow the strategies we advise – then let it continue to pull customers, rather than leaving you in the unenviable position of having to push yourself on them later.

Wednesday, June 11, 2008

Forget The Politics Of The Following

This editorial has nothing to do with Global Warming (or that my 430 horsepower car is contributing to it, so just BACK OFF!), or Health Care issues, or even hanging chads. It has everything to do with presentation of your message. Whew. I bet I still get hate mail, sued, or potentially both.

McCain won New Hampshire. Romney came in second. McCain is the best speaker and presenter. Romney is second best. Please notice the parallel. No, this isn't always the case, but for a job in which your presentation can override presumption, it is of tremendous, far-reaching consequence.

I have blabbed to you frequently about "image" and "relationship building," which I realize are weenie and conceptual topics for this contracting audience. I knew that then; I know it now. But it doesn't mean the value is diminished. Quite the contrary. Here we are talking about the Presidency of the United States, where everything is measured, weighed, and scrutinized including whether there's an over-abundance of ear hair before entering the voting booth. And yet "we the contractors" feel the public turns a blind eye when inviting a "trustworthy, reliable, and honest" person into their home.

It's "packaging," boys and girls. And if I don't like yours, I'm not calling. If I KNOW that "Toothless and T-shirted Larry" can frame a wall or unstop a drain or bang in shingles better than you, then he's proven himself. But if I don't know that as 100% of his hopeful "acquisition market" does NOT, then he's not getting the call. Doesn't matter how cheap he is, and it sure doesn't matter how good he is because I'm never going to find out.

The market has moved. The retailization of Contractors isn't just here, it's being modified as we speak.

The bar has moved. "Fast Service" is a sad threshold to tout, as nullified as saying "Color TV!" on your Hotel Marquis. Quantify your service speed and excellence to me.

The sales environment has moved. When Og heated his cave with a stick fire, that was "good enough" for Ug. Sadly, Og's commodity-thinking is still pervasive (with commensurate image) in product, solution, and presentation. Homeowner's are 3 clicks, 1 cell phone call, or 0.2 seconds from specific, personal, adaptive, custom solutions for virtually every whim they have. When your online florist reminds you of your anniversary AND your wife's preference AND suggests a complimentary gift for your receptionist (strategy right there), it'd be reasonable that your contractor could remind, schedule, and professionally upsell with appreciated services, too. All automated, by the way. Og'll never know what hit him.

The credibility quotient has moved. You think I need to read another story about elder rip-offs, break-ins, child abduction, or assorted scams to think "just any contractor" is fine in my house with my wife and children? Sorry, welcome to the millennia of unquenchable skepticism countered only by burden of proof, most of it yours. Did we mention your image and relationship building yet?

3 Strategies to Differentiate in 2008

Effective "packaging" and presentation strategies are well-known. We've been pushing a few, worth re-mentioning (and more detail in the links below) but make your move toward: 1) Customer Retention with a referral campaign linked inside it. This has moved way beyond newsletters: live or electronic follow ups, automated reminders, website involvement. 2) Publicity and PR. Huge this year. The ACCA Conference has an entire seminar devoted to it; some of the strategies revealed have NOT been popular with everyone! 3) Cluster Control of neighborhoods. Sequential surround mail, door hangers, thank you's, all intertwined.

These are exciting times. Made more exciting by the contractor willing to change his or her thinking to embrace. Know that the marketing methods we squawk about are less about lining my pocket and more about you raising your company's image and "attractor factor" now. More than ever, 2008 is poised to surge contractor choices in your market, thus "distancing" your company from the other candidates will never be more important.

Regardless of who provides your marketing solutions, make sure your "Differentiate in 2008" campaign cry is well-known. Let the "voters" choose you. The attraction to great packaging is not "debatable" nor is it new...

Post-debate television interviews, for the first time ever, were able to calculate millions of voters who "instantly" shifted their Presidential preference to a well-packaged candidate named John F. Kennedy in late September of 1960. All due to their admitted bias that "He just looked and sounded so good."

I'm voting for you to do the same.

Steps to Counter the Economic Slide

Please choose the one that most accurately describes your feelings about the Contracting Service Profession:
  1. "It's a pure commodity. My prices are too low and I still can't sell a job. No one will pay more for a job than the lowest going rate. In fact, I'm thinking about losing money on every job but making it up in sheer volume. It would be great if the phone would ring soon. Ooops, I have to go now, Judge Judy is on.
  2. "It's a price-elastic commodity, with a tremendous upline. In the leanest times, my services are still required. Preventive maintenance is even more important to avoid or eliminate costly 'surprises'. If my fearful competition pulls back, I can win customers even more easily (including his). I can aggressively attract customers, turn them into clients, and hold them for years, simply and strategically.

During a recession, many business owners wish their services were commoditized. Though the recent boom created more millionaires than any period in history (who can still spend according to their created lifestyle) many "optional" services will be crippled or eliminated.

Yet, the contracting service businesses will likely see little real downturn in need. Many contractors will perceive a downturn, largely of their own making, and "choose" to pull back in their marketing, customer retention, training, and acquisition strategies. This will doubtless prove them "right" in their gloomy economic outlook.

Fearfully, these contractors will cut back on marketing and advertising. They'll quit contacting their customers as often, choose not to restripe the truck, or update the website, and pull their presence to a shadow of its former self. This creates an interesting scenario...
  • How much would you pay RIGHT NOW to PROHIBIT HALF or more of your competition from advertising? I mean, consider the possibilities. Looks like that’s on the verge of happening. Or this…
  • Remember how you were all worried about the shortage of ‘good technicians’ out there? Not for long. Due to construction cut-backs, they’ll be applying to work so often you may want to consider selling tickets. Choice hires are coming.
  • Since customers may rightly cut back on some ‘big ticket’ purchases, preventive maintenance will be bigger than ever. Get ready.
  • Likewise, they’ll be “cocooning” more, meaning in-home comfort and services to improve health and energy savings will be in bigger demand. This opens the door to…
  • Set up additional income streams through alternative products and services. IAQ analysis, humidity controls, water purification and filtration, home security measures - - basically whatever services you can offer that improve the ‘at home’ experience for your customers, go for it… with a vengeance because you can.

Remember that the fearful contractor is NOT advertising, is NOT hiring, and is likely losing customers to the non-fearful contractor, who kept his head and refused to be intimidated.

Also understand that the flood of job-seekers has two potential downsides: 1) More low ball bidding, and 2) More ‘scam’ stories headed our way. (Desperate people do desperate things.) My point: Separate yourself NOW.

Rigidly control your customer base, enhancing the relationship, step-up credibility measures, increase your request for ‘ratings’ by your customers at sites that allow AND for testimonials on your website, to use in your other marketing. If anything, now more than ever is time to PROVE you’re the contractor of choice for even more reasons.

It’s time to choose. Will you participate and support the natural economic lemons of life… or will you make lemonade? Your reaction is your future.

Leadership In Readership

Whoo boy, changes everywhere. After my last speaking gig - which are always fun while being nearly permanently exhausting - the variety of questions and personalities interesting...

One contractor would be in line, looking downward, asking me to sign a copy of his book but admitting, "Looks like this is going to be a slow year; I've got to cut back on Yellow Pages; I've got to get the phone to ringing; I've got to..." and it was all a bunch of painful, if not overwhelming, demands placed on himself by .

The NEXT guy in line would say, "Oh man, I am SO fired up! I can't wait to cut my YP budget down to size; but first to clobber the doomsdayers with that service postcard from the PowerPack and put some money in the bank! Plus, I'm starting on the Cluster Control campaign in May! Awesome!"

And there I'd be, meeting person after person at the same event, in the same business, facing the same opportunities, with MOSTLY the same need... and approaching them as differently as if they were alternate species.

“Hello, Sad Sack Contracting, how may I make your day somewhat miserable?”

Those with the ‘downtrodden, victimized, woe is me’ syndrome are usually like that in everything. Their success rate corresponds, as does their circle of friends. Further, the corporate “personality” likely borders on marginal bitterness, though others in the company might do their best to combat. Yet it’s hard to remain sweet living in a Pickle jar.

Sales and referrals probably parallel the mood, in mildly dirty environs – from trucks to office to warehouse. I have a hard time seeing slap-happy company picnics in this crowd. Overall, the owner feels a little “alone” in his misery, though sharing it subconsciously.

“Thanks for calling Contrarian Contracting, where our biggest differentiation is you!”

The more upbeat companies have an attitude of not just surviving, but thriving. New days bring new challenges, and even in trouble, an opportunity exists. A missed sale is a reason not to “sigh” but to ask “Why” and gather seeds for the next one. Their attitude is also magnetic.

I am thinking of two cases of very positive contractors, who are also friends… who are also competitors in the same town. They work off each other, sharing and mutually referring jobs they do not or cannot perform. They figure, “Hey, if I can’t get the job, he may as well.” They have streams of worthy job applicants, keeping the current staff not only thankful but feeling mildly on the button. A good thing. The upbeat never feel alone, seeking help, companionship, sharing, like-mindedness.

Can a contractor go from being one to the other? I know of several cases, but none where the contractor didn’t a) Admit he couldn’t do everything himself. b) Accept help from others, even if he initially disagreed. c) Was finally willing to let a+b mean he MUST share the credit for the success with others; take only the blame of failure.

In other words, a leader. And the one thing all leaders have in common, regardless of background or personality is followers.

It's All About Balance

This is a year of adjustment. And a good one at that. Yes, I used the word "good." There are times that competition is just too thick (real estate) or the money too easy (sub-prime mortgages) and the result is a watershed. Natural ebb and flow. Don't expect this editorial to be a regular face-washing of fearsome facts; expect instead practical responses, techniques, and adaptive recourses. Strength required.

Fortunately, the strong will get stronger. Had a teleconference last week with 88 of the strongest students/fellow marketers (but posing as contractors!) I could've ever wanted. The 11 "Gold" members had questions, one after another, about doing better this year than last, news be torpedoed along with those silly enough to cower as a result. Amen to their commitments, and happy to stride together on that.

Yet, no matter WHAT time of ANY year, I hear this all the time: "I NEED MORE LEADS!"

Thus, most all contractors would contend, the more leads you get the better. True to a point but keep a couple things in mind, oh ye of hyper-aggressive tendencies...
  • A flood of leads that creates diminishing service thereto is the easiest way I know to screw up a good reputation... with great unlikeliness of gaining it back easily.
  • Pushing the "BUY ME NOW" coercion button with your trusted, coveted customer base, is an excellent way to force loss of same. You have any friends you can do that with? You have any EX-friends who used to try to sell you something every time they saw you?
  • Having a "Best Offer Ever! No, I Really Mean It This Time" every other week is a fantastic method of credibility destruction.
Yes, I'm a Direct Response copywriter, paid decently for the craft, which I dearly love. Yet, a realist. I'm concerned with ANYONE attempting to put an arm around a customer relationship while regularly shoving the other hand into their back pocket to extract a Visa card.

If you want to see your customers again and again (THE GOAL of in-home service contracting, by the way), this method is better reserved for late night infomercials. It also happens to be an excellent way to be targeted in your local news' next contractor sting. Just a thought.

It's about balance. And right now, working to generate a ton of leads, while working to build a real customer relationship with each of them is the far wiser path. Leads to more referrals, more upsells, less stress over "where are my sales coming from?" Hey, they overwhelmingly come from warm prospects and customers, far more rarely from complete strangers.

Many upcoming opportunities to move into "known" realm among your market exist.

  • The Guerilla marketing tactics for being 'known' (TOMA) are in your PowerPack.
  • Home Show results are actually stronger this year, so far. (Could it be the "Chicken Little" theory already in place?) Your TradeShow Secrets book is full of info on that. (If you don't have a PowerPack, half of what I suggest may sound daunting to recreate, or like gibberish. Sorry. I assume "customership" for most of you. A tactic you'd be wise to emulate when speaking to 'your' market.)
  • Gold-plated opportunities for the aggressive Retention expert abound. Thank you cards, requests for testimonials, requests for referrals, movie passes, fruit or chocolate gifts will endear and differentiate you. I will be playing heavily upon the "work your customer base" theme for the next 90 days. Either take notes and take action or take offense and look elsewhere.
  • AutoResponder sophistication on your website - More 'easy' ways to sign up, better communication thereafter, relationship building throughout. THIS IS NOT A REPLACEMENT for REAL MAIL follow- up, by the way. That backlash has already occurred. Advanced Tip: Your website is a way to calm and educate customers about "real" ways to save and stay comfortable that have NOTHING TO DO with anything you sell. You get creds for that, my friend.