Articles
“Do it my way or die”
Making the sale to your only customer
by John GrahamRead at your own risk
Running out of customers is worse than running out of gas. You can always get
gas even if the price is high. Finding a consistent flow of customers is a far
more daunting and often frustrating task.
Every sector of the economy is coming to understand a fundamental reality. We
are coming face-to-face with one idea that’s abhorrent to the American
business psyche. That idea is “limitations.” We don’t like
to think there are any boundaries, particularly when it comes to customers.
But think about what’s happening:
• Car sales are essentially flat, as are life insurance sales
• The savings rate is below zero for the first time since 1933
• Government and business sponsored retirement and healthcare programs
are on their way to extinction
• Home sales have depended on financing gimmicks that have allowed just
about anyone who breathes to buy a house
• The home improvement explosion had been financed by rising home values.
Now they’re being financed by “no payments until 2008” or beyond,
as are giant TVs and other home appliances
• Movie attendance declines steadily
• Millions of Americans are driving vehicles with price tags equal to or
greater than their annual incomes
•
Insurance agencies and other businesses grow mostly by taking customers
away from each other or acquiring competitors
• The proliferation of communication channels make it difficult to achieve
brand identity
• “Free” and “discount” are the operative words
today
• And perhaps the most accurate barometer of all is the growth of Wal-Mart
as it meets the needs of the financially strapped middle and working classes.
Reading a list such as this can be dangerous for anyone who is easily
depressed.
Ironically, this has to do with reality, “doom and gloom. It’s
about the reality found in the news columns of The Wall Street Journal, rather
than the upbeat, go-get ‘em, nothing-can-stop-us, ego-stroking and pathetically
pretentious full-page, full-color ads that pay the newspaper’s bills. The
latter points to caution, while the former fosters denial.
The problem rests with continuing to use a post-World War II mindset that was
based on monumental pent-up demand, something that’s missing today. That’s
the reality.
The frustration is felt everywhere in business. Nothing seems to work even as
well as it did a few years ago. Everything from advertising and telemarketing
to cold calls and trying to get through the door is dysfunctional. All the gimmicks
fail and the “All I need is 20 minutes of your time”
mantra of today’s salespeople seems pathetic compared to the time
when the welcome mat was out everywhere.
Get comfortable with the new reality of one customer
There is another side to this coin that’s facilitated by the Internet and
epitomized in the iPod. In fact, it appears that the iPod’s genius may
be more cultural than technological. It plays to the growing “stay out
of my space” mentality that affects the way we drive, get through the supermarket,
listen to music, watch TV shows, do our banking, and make just about any purchase.
Consumers are saying, “I want what I want the way I want it when I want
it.” In effect, “I make the rules.” The iPod is the delivery
channel of this dominant outlook. Whatever you want, your iPod will get it for
you. That’s the message.
With the downloading of the first song, the floodgates were opened wide and there
was no turning back. TV shows, movies, podcasts and more were available on your
iPod so you could see and hear what you wanted when you wanted to see and hear
it.
As everyone who shops on the Internet knows, there is only one customer. You.
The iPod pushes that envelope further than ever. In doing so, it inscribes forever
the message, “I’m the only one who counts. Do it my way or die.”
A February 2005 Yankelovich Marketing Receptivity Study revealed that 69% of
customers are interested in products that permit blocking, skipping or opting
out of marketing. It’s the “get out of my face”
mentality.
The copier salesperson called with an offer to reduce the cost of current equipment
and supplies, recognizing that the current lease arrangement would be ending
in the not too distant future. “I would like to show you how we can save
you money,” said the salesperson. “That’s not necessary, just
tell me where I can review it on your website.”
The owner was interested, but not receptive. That’s where it stands
today.
What it means for businesses
What are businesses to do with this “customer of one” reality? How
are they to connect with the customer without wasting time and money?
1. Erase the past from your mind. For example, the effectiveness
of the once powerhouse “Yellow Pages” has been declining in
the face of Internet search capabilities. Yet, many businesses have continued
to dutifully buy ad space. But as Brian LaPointe, president of Federal
Heating and Engineering, Co., Inc. of Winchester, MA says, “One of
our major equipment dealers notified us that the manufacturer is no longer
supporting co-op Yellow Pages advertising.”
It’s dangerous to cling to what worked yesterday.
2. Stand up to stand out. Far too often, companies talk a good line, but
they’re actually risk averse, always playing it safe, not wanting to really
put themselves on the line.
The president of a commercial printing company in Pennsylvania made a point of
describing how the company delivers on time. It’s extensive in-house capabilities
give it the ability to meet tight deadlines that others are unable achieve due
to dependence on outside suppliers.
Since on-time delivery is important to printing customers, the consultant recommended
that on-time delivery become a cornerstone of the company’s branding: “Your
job is free if we don’t deliver on-time.”
The guarantee would be accompanied by an appropriate disclaimer. Yet, the
president backed away.
If something is crucial to attracting and holding customers, then step up and
figure how to deliver on what the customer wants.
3. More frequent contacts count. A survey of an insurance organization’s
customers revealed that frequent contact reaps positive results. In fact, it
plays an important role in shaping how customers feel about such other factors
as price and service. Those clients who received the most contacts by the insurance
agency also indicated their loyalty by having the highest scores for renewing
their insurance with the agency.
Whether it’s regular visits, receiving helpful information or asking their
opinion, systematic contacts have a positive impact.
4. Be there all the time. Too many companies play the game of “marketing
roulette.” With one bullet in the chamber, they keep pulling the trigger
until a shot is fired.
It’s not surprising that the line waiting to buy the highest-priced advertising
is for the Super Bowl. It’s almost the story of “desperate advertisers” since
this annual extravaganza delivers the single largest number of viewers. As it
becomes more difficult to reach people, look for the Super Bowl annual advertising
ante to keep going up.
Reaching people today calls for a comprehensive and diversified strategy that
aims at reaching a host of sliver-thin niches with a variety of activities and
includes everything from email, web ads, fostering buzz, direct mail, public
relations, events, media advertising and community relations programs.
The goal is to engage customers all the time in a multitude of
ways to build the brand. Anything less is ineffective because the customers we
take away from someone else would themselves go elsewhere in the future. Breaking
that pattern means being there all the time.
We need to change our thinking and recognize that an endless supply of customers
has come to an end. The only way to attract and maintain customers today is one
at a time.
John R. Graham is president of Graham Communications, a marketing services and sales consulting firm. He is the author of The New Magnet Marketing and Break the Rules Selling, writes for a variety of business publications, and speaks on business, marketing and sales issues. Contact him at 40 Oval Road, Quincy, MA 02170; 617-328-0069; jgraham@grahamcomm.com.