Where To Look When Customer Attrition Ticks Up

On By Joe DeRosaIn BusinessLeave a comment

UnhappyFace

You’re approaching another quarter-end and your customer retention numbers seem to be headed in the wrong direction. You look around and come up with some quick explanations as to why you’re losing customers. The economy, your competitor that’s selling on price, Obamacare, and lack of sophisticated systems round out the top of your list of excuses. Hey, I get it. Those are the easy ones to point to. The excuses that you can’t control and those that make the blame game so much more tolerable. But if you really want to know why you’re losing your customers start by doing the following:

1. Ask a few that have already left. It always strikes me how apprehensive business people are to follow up with a former customer to inquire as to why they left. Doing this provides an opportunity to reopen the door and establish some goodwill in the form of listening to what’s important to them.
2. Walk the floors. Many executives still hide behind their glass or wood doors. They isolate themselves from reality claiming to work on the “important stuff” as they develop strategies to grow the business. The problem is that many executives don’t know what the issues are and therefore will never be able to develop an effective business strategy. The challenges and opportunities of your business are well known to the “rank and file” employees – the ones interacting directly with your customers. Talk to them and ask them what’s going on.
3. Get in the field. Another tactical initiative that is required to build effective strategies. Meet your customers, your suppliers, referral sources, and partners. Get involved, ask lots of questions. Focus on THEM. Listen. Forget show and tell. It’s not about you.
4. Establish a customer advisory council. Put together a council consisting of existing customers of different industries and sizes. Create a charter that tasks the council with identifying problem areas and possible opportunities. Bring the council together twice a year if possible and two other times during the year by phone. Listen.

The fact is that it’s probably an obvious reason why you’re losing customers. For most businesses and their leaders they just don’t want to listen. It’s easier to blame characteristics that are uncontrollable. But those leaders that roll up their sleeves, get in the trenches, and ask the tough questions are those leaders that have the best chance of reversing poor customer retention numbers.

5 Ways To Make Your Meetings More Effective

On By Joe DeRosaIn BusinessLeave a comment

Improve

Another meeting?  Most days start with meetings and end with meetings.  We spend our days running from one to another, whether in person or via the infamous conference call.  Some companies can’t operate without having a meeting to discuss even the smallest of decisions or topics, while others work hard to minimize the number of meetings they schedule. It’s not that meetings are bad, it’s just that most of them are an ineffective use of time. Little is accomplished during these meetings other than wasting the time spent being in the meeting itself, as well as the time spent preparing for that meeting.

So how can you increase your level of meeting effectiveness?

Here are 5 things you should do before scheduling a meeting:

1. Create and include a clear meeting objective. Provide a brief summary of the purpose of the meeting. Be sure to state whether this meeting is meant to inform, solicit feedback, or make a decision.
2. Invite the right people. The key word here is “right”. Don’t get caught up inviting the entire company to make sure you’ve CYA’d yourself. Have the right people there. The type of meeting you have set will determine who you should invite.
3. Be clear on your time. If you need an hour then schedule an hour. If you believe that your topic may go over an hour then plan accordingly. People hate to attend meetings that consistently run over. You don’t want to create the perception that you’re a poor planner.
4. Provide materials in advance. Many people feel that meetings should be somewhat of a surprise. I can’t stand that approach. Time is valuable for everyone. Why wait until the meeting to drop a 20 page deck on people. Give them time to read through it and absorb it. Having the ability to formulate questions, thoughts, and opinions prior to the meeting is key to running an effective meeting.
5. Schedule critical meetings during the day before 4 pm. The fact is that human nature is such that most people find getting invited to a meeting that starts at 4 pm to be annoying. Hey I know you have to be in the office until 6 pm anyway but still in all, people look to the end of their day to wrap up items that were opened during the day. Many 4 pm meetings become nothing more than place holders to reschedule another meeting when people are prepared, ready, and engaged.

Try taking these 5 actions before scheduling your next meeting and see how much smoother your meeting runs.

Stop Trying to Fit In and Start Being Remarkable

On By Joe DeRosaIn LeadershipLeave a comment

remarkable

Everyone wants to fit in. To be a part of the crowd. Some people go to extremes to remain invisible whether at school, the office, the gym, or anywhere else in pubic. Blending in is part of our culture. Why do you think brand names like Nike, Levi’s, Coke, Asics, Hollister, and Target are so valuable? They represent the main stream. Sure they offer quality and value but they also offer a strong emotional connection to safety. I’m safe if someone sees me wearing Nike, shopping at Target, or buying a Diet Coke.

But success doesn’t come to those who play it safe. Success isn’t for the faint of heart, or those who want to be part of the crowd. No. Success usually comes to those willing to take chances, to challenge the norms of society, to stand out and be remarkable.

Are you remarkable? Do you stand out at work or are you one of the crowd? Do your co-workers look at you as a thought leader? A progressive thinker? Or are you one of the many doers that get things done but not the one “cutting the edge?” Do you invest in building your personal brand? Are you working to create awareness around your ideas and opinions or are you silent, laying back, waiting for the next set of directions to come your way?

History is a great teacher of the correlation between remarkable and success. Thomas Jefferson, Steve Jobs, Donald Trump, and The Beatles all were remarkable for their time. Dimon, Reagan, Lincoln, and Gates made bold decisions, often unpopular, but remarkable in ways that led to great discoveries, financial stability, and peace through power.

We all have the ability to be remarkable. We may not all be Thomas Edison’s or Michael Dell’s but we each possess unique characteristics that if amplified make us remarkable. A great sense of humor, the ability to provide calm during turbulent times, or being able to rally people together for a common cause can be remarkable characteristics. What makes you remarkable?

The Rule of Thumb on Keeping a Prospect Active

On By Joe DeRosaIn UncategorizedLeave a comment

RuleOfThumb

A common question from sales professionals centers around how long a prospect is kept active in the pipeline.  There are several views on this topic and of course I have my own opinion.  But before I share my view let’s look at the 3 major philosophies on keeping a prospect active.

  1. Always.  Until they buy a prospect is always a prospect and you never give up trying to convert them.  You continue to call on them until, by the sure will of your persistence or their exhaustion, they give you the sale.
  2. At the first “no”.  Once the prospect says no, move on.  Eliminate them from your call list.  Forget about them.  They don’t know what they’re doing.  They’ll come back to me later down the line.
  3. Only until I have confirmed the following:  they have a need for my solution, it’s currently an unmet need, it’s currently a met need but I can improve, they’ve engaged me in a professional manner, they’ve asked enough questions that I know they’re considering a change, they’ve brought others into our discussions, for whatever reason the timing isn’t right.

I do not believe in #1 or #2 above.  The first philosophy is what I call “old school” sales.  Keep at ’em.  Ware ’em down.  Go for the close.  Often times the prospects that fit into this category and ultimately buy from you won’t last.  They will either cancel the order before it’s fulfilled or change back to their original provider at a later time when they feel they’ve achieved a safe distance from you.  Focus on establishing the value of your solution with the prospect.  That means that you’ve done enough work to either identify this prospect as a viable candidate for your product or recognized that they’re not a fit.  Great sales people are not just good closers but they are good assessors.  They don’t waste their time on chasing ghost deals.  They know that time is their most valuable resource and they use it in ways that help them achieve “effective success”.

At the opposite end of the spectrum from #1 is the “no” response followed immediately by a run for the hills.  Remember Tommy Boy?  We’re not gonna take no for an answer.  “NO!”.  “Okey Dokey”.  This philosophy is just as ineffective as the prior one.  Just because you’ve heard no doesn’t mean move on.  Of course knowing whether or not moving on is the right approach depends on how well you’ve read the situation.  Is it no for today, tomorrow, or no for forever?  How can you tell?  Did you present your value proposal and get buy in along the way only to be shut down when it came to price?  What was the reason for the no?  Did you ask at the front end of your presentation to be given a reason for any no you received during the presentation?

The best choice is #3.  If you’ve spent time with the prospect and used that time to understand their needs and have taken an honest approach to aligning your product to their need then even if you get a no you’re in a good place to understand that no is not forever.  You’ve identified the need, you know your product can meet that need, and you know a number of different value items associated with your product that will benefit the prospect.  So if it’s no, follow-up.  Get their agreement as to when your next check in will be.  “I understand you’d like to stay put right now.  I also know we both recognized and agreed that this ABCD will help you improve your XY and Z.  I’m going to follow-up with you next quarter to see how timing may have changed to help facilitate this change.”

In summary, don’t keep a prospect a prospect just for the sake of old school thinking.  Trying to force a sale or impose your will on another doesn’t work.  If it does it’s short lived and ultimately you’ll lose the customer anyway.  If that happens you’ve actually done damage to your company’s brand and profitability as it costs money to acquire a new client and fulfill them.  Whether they stay 3 days, 30 days, or 300 days, if they aren’t on the books long enough to get to your break even you’ve lost.

Top 10 Things All Sales People Must STOP Doing!

On By Joe DeRosaIn Leadership, SalesLeave a comment

Stop

I love Sales.  I love positioning a valuable solution in a way that meets a prospects needs and improves their way of life.  Whether the solution saves time, money, mistakes, legal action, or helps to improve employee morale, or puts more time back in the owners schedule to spend with their families or friends, I love the art of the sale.  Over the years I have gone on hundreds if not thousands of sales calls with sales representatives, managers, and even other sales executives and have observed some pretty wild situations.  I’ve seen sales representatives doing double duty as they attempted to sell a product from their personal business while on a sales call for the company they were employed by to a phone call I received alerting me of a situation where a sales representative ran into some trouble with The Law!

I have to believe that these crazy situations I’ve seen over the last 20 years are not exclusive to the Sales profession however it does make me think.  Perhaps it’s no wonder that people in general see most sales folks as sketchy or even a little shady.  Why is that?  Well, I’ve compiled a list of my favorite things – I say this tongue in cheek – that I have seen sales people do over the years in selling situations.  This type of behavior only perpetuates some of the attitudes and perceptions folks have of sales people.  If only ALL Sales people STOP doing these things immediately.  Check them out:

My Top 10 List of Things Sales People Should STOP Doing During a Sales Call: 

10. Flipping your hair during a sales call – this isn’t a photo shoot…or is it?

9. Putting sun glasses on your head during a sales call – you’re not a movie star – if you’re not going to wear them put them away!

8. Saying “trust me” – if you earned it you wouldn’t have to say it!

7. Wearing crooked or snagged neckwear (ties). Rough night? I’m a mess! 

6. Wearing clothing that doesn’t fit properly – this isn’t a site seeing expedition – too loose, too tight, too open, goodness gracious have some pride!

5.Immediately pulling out your favorite brochure – Hurray it’s show-and-tell time!  Everyone sit on the floor and pay attention, I’m about to WOW you!

4. Degrading your competition. You know, I don’t like to say anything bad but they suck, not to mention all their employees have priors!

3. Not turning your phone off when in a meeting. Hang on, this is probably the Pres! You have no idea of how important I am.

2. Not knowing how much business the customer you’re visiting has given you already. So what products do you have with us?  Um, I forgot…

1. Showing up late or just in the nick of time.  The traffic was horrible, the sun was too bright, the clouds impaired my vision, I lost power last night, my electric toothbrush wasn’t charged, I just didn’t feel like going out.

Income Inequality. A Difficult Subject.

On By Joe DeRosaIn LeadershipLeave a comment

Equal

During the President’s State of the Union address he spoke to the country about income inequality. The difference between what one person makes versus another, for the same work, based upon gender, race, etc. Taken at face value I believe most people are in support of income equality. If two human beings are doing the same work, regardless of gender or race, they should be paid equal…of course that also requires all other things beyond those two criteria also being equal. And that’s where the challenge comes in.

Most successful people make significant sacrifices on their career journey to success. Long hours, missed events with their children, wedding anniversaries when they were out-of-town, an occasional birthday missed, or worse yet a birth of a child missed because of work. Many families make a very conscious and deliberate decision to focus on career advancement. This does not mean that they’ve chosen to throw everything to the wind. Perhaps their goal is to be able to send their child to Harvard, or vacation to destinations that provide both educational and personal awareness for their children to actually see what they have relative to others. And what about those that have made big sacrifices only to give back in a big way to their community with their time, skills, or money?

Every human being has free will. Of course ones ability to exercise their free will, or choice, depends in large part on where they live. American’s have the ultimate ability to choose. We can do what we want, when we want, without any interference from the government. Now to be clear, of course there are laws we need to abide by but even those are broken by people who have chosen to break them. The fact is that America was born around the concept of equal opportunity. We are the country (land) of opportunity. The land where hopes and dreams have a real possibility of becoming a reality. But even at our founding there were those that sacrificed much while others did not. That’s just human nature.

So the challenge is not in the concept of equal pay for equal work. The challenge sits with how to assess two different workers’ desires, passions, and commitments. No place is this executed better than in the world of professional sports.

Peyton Manning possesses many of the skills other quarterbacks have. Strong arm, deep understanding of defensive schemes, and the ability to change plays based upon what presents itself during the game. But Peyton Manning is different. His drive, his desire, his intense focus on watching game film over and over again. His personality presents additional leadership skills that make him even more valuable. Anyone remember Ryan Leaf? The point is that it is quite difficult to make things equal when most times the facts prove they are not equal. No two quarterbacks are the same, no two snowflakes are the same, no two CEOs are the same.

It’s a difficult if not emotional topic. It demands thought, conversation, debate, and action. We just need to be sure we’ve explored it as best we can before making things equal based solely on an altruistic perspective.  Being an American means  you have the right to explore, find, and secure opportunities.  It does not guarantee any specific outcome.  Just as we’re warned when we enter the Stock Market, no investment is guaranteed, it is simply an opportunity to invest and the possibility of your investment growing.  Think of each of us as investments.  We all have the opportunity to grow, and we all have the opportunity to fall.  Between luck, chance, skill, desire, commitment and ability the outcome – like a true investment – is never guaranteed.

Losing Key Employees? Stop Making Excuses and Face the Facts.

On By Joe DeRosaIn LeadershipLeave a comment

wake up

I can’t believe he left! What was she thinking, it’s not gonna be any better there. You know the grass isn’t always greener on the other side.

These are some of the most popular reactions from companies who continue to lose key employees. And I stress the word “key” because mediocre employees never leave. Key employees, those defined as progressive thinkers, customer advocates, or challengers to the status quo will always have opportunities to go elsewhere. It’s the employers responsibility to create an environment that is so loved and appreciated that these folks never entertain leaving.

Okay, some reading this may say, “wait a minute, it’s not my job to make people love their job, after all I’m already paying them and that’s where my responsibility ends.” To you I say think again. Leave your “you’re lucky to be employed” feelings at the door. Look around you. Today’s top employers are winning by providing employees with work that is meaningful, purposeful and an environment that is respectful and fun. No it’s not just about having fun, but that’s a necessary ingredient that can’t be ignored. Like leaving brown sugar out of your chocolate chip cookies, fun left out of the work environment will lead to work that’s bland, boring, and even bogus.

In a recent Forbes article on the things make a company great to work for, the number one ingredient for a great place to work was a strong culture. People spend more time and energy working to improve and succeed in a place where they are challenged, supported, and trusted. When you work for a company that micro manages, does not promote professional development, and reserves decision-making just for the company gods, you’re likely to end up with a workforce that’s numb, unengaged, and just looking to get through another day. Meaningful work simply cannot be done in this type of environment.

So to the managers and business owners running your companies as if you’re the only one(s) with ideas, it’s time to open your eyes. Stop running and start leading. Stop micromanaging and start providing opportunities for people to make decisions. And perhaps most importantly, especially for those entrepreneurs that started their business, stop thinking everyone is out to get you. While some people subscribe to the belief that paranoia is something every business person should have, I believe that paranoia should be reserved for your competitors. Be paranoid that your competitors are out to get you because they are. But don’t be paranoid that your employees are plotting to take you down. Trust them. Trust is one of the most powerful gifts a leader can give his or her people. Trust empowers, and empowered employees make for remarkable results.

Where In The World Is Small Business Headed?

On By Joe DeRosaIn UncategorizedLeave a comment

smallbusiness

This week PricewaterhouseCoopers released the results of a survey of 1,300 CEOs worldwide showing a fairly optimistic outlook on the global economy for 2014. In fact more than 60% of CEOs in the United States said they planned to increase hiring this year versus last. What’s interesting is the amount of confusion in the market right now. While we see this high degree of optimism among U.S. CEO’s we are reading about layoffs at Best Buy, JC Penney and Macy’s. Even Johnson & Johnson, a stalwart of Wall Street, and one of 4 companies to still carry a triple-A-rating showed signs of concern in yesterday’s financial news indicating a “slowing due to weak prescription drug sales”. The other 3 companies maintaining a triple-A status include ADP, ExxonMobil, and Microsoft.

In our data hungry society we have the ability to create one story that shows extreme confidence supported by data, and at the same time build another story that shows the complete opposite…supported by credible data. The Consumer Confidence Index shows a slight increase in December 2013 but is still below 80. The national unemployment rate is below 7%. And the stock market seems to be unstoppable. All data points that suggest improvements in the economy and beyond.

But peel another layer off the onion and you’ll see that the number of American’s on food stamps has doubled in the last 10 years. In the last 5 years alone there has been a 51% increase in households on food stamps. In just the first few weeks of 2014 nearly 35,000 jobs have been eliminated by some of the companies mentioned above, as well as, others including HP, Kmart, Sears, and Intel. Major companies from Target to Trader Joe’s have announced major cutbacks in employee benefits due directly to the negative impact Obamacare has had on their business.

And now we get to the heartbeat of our country…small business. The latest survey of small business confidence put out monthly by the National Federation of Independent Businesses (NFIB) shows lagging confidence, low expected hiring rates for 2014, and still limited access to credit markets. The report goes on to indicate that the economy, Obamacare, and the current political climate makes expansion less likely as small business owners tend to withdraw from risk when facing these types of issues.

So how can there be such a disconnect between the confidence of small business owners and that of corporate CEOs? Perhaps it could be the fact that many large companies simply have more options. Capital markets and debt markets are two places large corporations can access that small businesses can’t…or at least struggle to.  Healthcare reform, company benefits, and “big company perks” are areas where many small businesses also struggle to compete.  Finally, there is some interesting data from NFIB that shows a signficant increase in the sale of small businesses.  What would be more interesting is to see how many of these small businesses have actually been gobbled up by larger companies taking them out of the equation altogether.  I’ll dig into this more to see what I can find.  If you have any thoughts please comment.

The fact is, we should be spending our time watching what small business is doing rather than relying on what they’re saying.  Some times there is a disconnect between what we say and what we do.  Not because anyone is trying to mislead, but instead because our actions speak to our reality far more accurately than our words.  Listen AND observe.  It’s not either or…there is much to be learned.

PTO – How Much Is Enough?

On By Joe DeRosaIn UncategorizedLeave a comment

Timeoff

PTO, otherwise known as Paid Time Off, is a topic that evokes major emotions from employees across just about every industry type. Relatively new, PTO seems to have been introduced in the late 1990s as a way to move from traditional vacation time to more of a “bank”-type program. PTO provides an employee with a certain number of hours each year that they can use as they wish…vacation time, sick time, bereavement time, etc. But is PTO driving your employees to be more or less productive? The answer lies in how companies, and more specifically how bosses, manage their employees PTO time.

Human beings are interesting creatures. We require rules, guidelines, and parameters to operate within. In the absence of rules or laws we have chaos. However, even in light of having rules and laws there are still those who hold little regard for doing what they’re told. When someone breaks a law they are called a criminal, yet when someone pushes back against a policy at work they are often referred to as either a trouble maker or a progressive thinker…it all depends on the type of culture they work within.

Many companies are pushing the envelope when it comes to paying their employees for time away from work. Companies like Motely Fool and HubSpot have unlimited vacation time for which they pay their employees. Both companies say that by treating their employees like adults they get better performance. While I agree in concept, the challenge arises when we experience people having different definitions of what it means to be, and act, like an adult.

Still there are companies who have chosen to rule with an iron first. They micro manage PTO to a level that can at times create distrust between management and its employees. Worse yet, these companies end up forcing employees to make decisions based upon the impact that decision will have on their PTO. Do I leave early to go to the doctors and get docked for PTO? Do I stay home during a winter storm or hurricane or go into the office? Do I pick up my child from daycare early because she’s sick?

If management held its employees accountable for their performance at the highest level than PTO would be a moot point. It is in my experience that organizations that continue to employ non-performers are the ones that try to exert the most control…because they have to.  But docking an employee an hour here, and an hour there for time away doesn’t lead to better results. It simply leads to the perpetuation of tepid results at best.

In order to solve the PTO dilemma companies must first decide upon the culture they want to develop. If it’s one of performance then create the structure that provides clear expectations relative to results along with the tools provided to achieve those results. If your goal is to create a culture of dependency and command and control style management then a rigid PTO policy may be exactly what you need to keep your folks in line.

Now more than ever, companies can create highly productive work forces by leveraging technology more so that traditional command and control policies. Before making any changes to your policy first ask yourself what’s most important to you and your business followed by how do I feel about the employees I have today relative to their ability to executing what I define as most important.

What Our Constitution Really Says

On By Joe DeRosaIn LeadershipLeave a comment

constitution

It’s been said that if the U.S. government was a business it would have gone bankrupt long ago. But unlike regular business the government can print money any time it wishes which results in issuing more debt. When a business needs credit it must apply for it and get approved. It must also have a plan to repay the debt borrowed.  When the government needs more credit it simply raises the debt ceiling and prints more money.  The last several years of QE2 show that this approach simply doesn’t work.  The economy has been stagnant…growing yes…but at a very anemic rate.

The U.S. government was born “for the people and by the people” yet operates like none of the people – at least law-abiding citizens – that live here? Our citizens have rules and laws we must live by yet the government seems to operate without boundaries. So how do we get back on track?

We need to get back to the basics of what this country was founded on…principle. I’ve written a fair amount on this topic in the past but a review of our Constitution is really something that should happen immediately to get back on track. Factually there is only one thing our Constitution provides for citizens of the United States…”a common defence”, and no that’s not a misspelling. All other aspects of the Preamble are stated as “establishing”, “promoting”, or “securing” the item referenced.

While Franklin Roosevelt is widely regarded as one of the great Presidents of the United States, the programs he developed and ultimately implemented as a result of his New Deal created permanent provisions for citizens that are now viewed as entitlements. Born out of crisis, and mostly with good intentions, programs were developed to provide American’s with a safety net, but were not intended to become lifestyle arrangements. Our generation’s crisis – The Great Recession of 2008 and ’09 – led to dramatic actions taken to expand that safety net. Today, in some states like Nevada, unemployment benefits can last up to 77 weeks, and are currently being reviewed to extend beyond that. Healthcare reform – or Obamacare – will add more than $6 trillion dollars to our national debt, according to the Government Accountability Office (GAO), and that number is likely to increase given the lower than expected enrollment numbers and the forecasted savings  not panning out.

So where do we go from here? What should our government actually be doing?

Instead of focusing on solving for specific needs Congress should take a macro approach to governing. Meaning, ensuring we have a strong country (defence), knowing that only a strong country can grow and produce jobs. Jobs produce income and income drives economic growth. Without jobs our country is in a scary predicament. We will have to continue to rely on countries like China to purchase our debt. Why does that matter? Because we no longer own our country. If you take out a mortgage on a home or a car loan who is the real owner? You? Not until it’s paid off. Until then you simply operate it…but don’t own it. And when true disaster strikes like The Great Recession, those overburdened or highly leveraged lost their houses and cars. Could that happen with our country? I pray not.

The next area the government should focus on is education.  Growing strong minds is as important as having a strong country.  In fact, I’d argue that the military alone can not secure or deliver a strong country.  Smart, educated people who are capable of solving problems, innovating, inventing, and leading are critical ingredients to making a strong country.  Let our people solve our most pressing problems.  Let our capitalistic structure work as it was intended to work and refocus the governments time and resources on its specific responsibilities as referenced in our Constitution.  Then we can get back on track to fulfilling the American dream.