Words For Hire

Business, PR, Marketing, Social Media 586.461.2103

Groupon Not Such a Bargain for One Business Owner

by

Groupon logo.
Image via Wikipedia

I have been a huge fan of Groupon, a coupon system for local merchants, since I first heard about it last year. The site provides consumers with a way to tap into group bargains without  a group, and local merchants with a way to gain new customers and increase store traffic. Strategically deployed it can enhance visibility for local merchants. One business owner, however, has shared her story of how offering a deal nearly sunk her business.

Cafe owner, Julie Burke used Groupon to offer a deal of $13 of product for $7. More than 1000 consumers bought the deal and the amount of consumers coupled with the failure to account for costs left Burke $8,000 in the red and having to withdraw from personal savings to cover payroll for the month.

According to Burke, she was hesitant about the deal and the revenue share (Groupon would keep 50% of the revenues) but against her husband’s advice decided to do it. Burke does not blame Groupon for her bad experience but shares her experience so that other business owners can learn.

Below are 5 quick takeaways from this business case:

  • Know your cost to provide your product/service. If you  do not have the in-house capability to develop cost data it is worth it to hire an accounting  or financial professional to do this for you. VA Firms or Accounting Agencies can provide you with project based help.
  • Know your capacity. Promotions when successful will result in an influx of business. Do you have the infrastructure, staffing and supplies needed to manage an increase in business.
  • Never let someone else override your instinct about your business. Burke was hesitant to do the deal but moved forward because other trusted businesses had done it successfully. This is a classic lesson. Just because a bigger, higher visibility, or longer established business does something does not mean that it is right for you and your business. Trust your instincts and judgment.
  • If you don’t like the terms, ask for new ones. Burke indicates that she was told that the deals could not be capped. The Groupon CEO indicates that is incorrect. People can be wrong. The sales person may have been new, overly eager to sell a deal, or just misinformed. Even if the sales person has the information correct ask for different terms. If you really want to move forward in a deal, negotiate the sticking points even if means pushing to a higher level.
  • Discount carefully. Discounting to drive traffic seems like a low cost and effective solution but as Burke’s case highlights it may not make sense for every business owner. Discounts may bring in new customers but they may also bring in bargain addicts who will never support your business long term.

To their credit, Groupon’s  CEO left a comment on Burke’s post with an apology, explanation and  promise to “make things right.” Groupon has done a nice job of leveraging social media for marketing and it’s nice to see that they are also actively listening and responding.

I encourage you to read Burke’s account and see what other lessons you gain from her experience. Please do share your insights in the comments so that we can all learn and grow together.

Related articles by Zemanta
Enhanced by Zemanta

Think Small to Go Big

by

Sales for the Small Business Professional

Self-promotion and networking can be overwhelming for small practice professionals. Most would rather focus on delivery of their services than developing business.  Many do well developing and executing marketing strategies but when it comes time to “sell” they feel out of their element. In my work with clients, particularly service and creative professionals selling is a common barrier. They would rather send an email, or find a technological shortcut than to interact with a prospect in a “sales” situation.

Last week a client and friend confessed her tortured feelings about self-promotion. “I feel like I am walking into a room of 1500 people and it’s overwhelming to figure out what to do,” she remarked.  “Great!” I said. “You don’t need 1500 people you just need to make your way through the crowd to the intimate table of 10.”

Any process can be intimidating and overwhelming if you look at it in its entirety. Whether you are a business owner, a job seeker or someone returning to dating, you only need to take it one step at a time. The mental image of a small intimate table helped my client to ditch the willies and focus on a smaller, more manageable task. Giving her the visual of ignoring the larger crowd for the small tribe made the process much more friendly.

The job seeker who is overwhelmed by the unemployment numbers need only focus on their need for one job. They only need an offer from one company. The small practice professional does not need to reach 100,000 people, many would in fact be overwhelmed if their regular client list was more than 50.

If you find yourself getting overwhelmed, do the math. I am sure that like my client you will discover that the way to go big is to think small.

How about you? Does self-promotion freak you out? What tips have helped you overcome the fear?

Enhanced by Zemanta

5 Fatal Social Media Selling Mistakes

by

I spent several years in Sales Management roles in Corporate Healthcare and the lessons I learned have helped me in my professional and personal life. Yet, let’s face it the mere mention of sales makes many people cringe. Even the dictionary defines it in ways that leave you feeling in need of a hot soapy shower.

to deliver or give up in violation of duty, trust, or loyalty and especially for personal gain : betray; to deliver into slavery for money  to give into the power of another <sold his soul to the devil>

However it also offers these definitions:

to develop a belief in the truth, value, or desirability of: gain acceptance for <trying to sell a program to the Congress> ; to persuade or influence to a course of action or to the acceptance of something <sell children on reading>

While the goal of sales is to influence a course of action the process of getting there does not require you to check good manners and ethics at the door.  It is what happens in that space between lead and sale that sets the tone for any future relationship.

When I was in Sales,  before I ever met with a prospective client, a great deal of work went into understanding their business, challenges, competitors, weaknesses and opportunities. Today, technology has facilitated the sales process but it has not eliminated the need to do the work.  Below are 5 fatal mistakes that are made when selling via social media:

Mistake #1: All talk no listening

Contrary to the myth, in sales you learn to listen twice as much as you talk. You ask open ended questions to engage. You want your prospective client to talk so that you can let them tell you their problems in their own words. In social media, you can listen by reading updates or blog posts BEFORE launching into a pitch.

Mistake #2: Failure to establish a connection

I learned to be attentive to details and my prospect’s surroundings. I would search for an “anchor” that could break the ice and allow us to connect. That anchor could be a photo, a book on their desk, or even a pen. In social media, tune in to the other person’s interests and use that to establish a point of discussion. Read profiles, updates and visit blogs to give you an authentic entry point for conversation.Mistake #3: Dear What’s Your Name

I developed a proposal template that was adopted company wide. The template made it easier to gather information that was commonly used – menu of services, company history, etc – but was always customized to fit the prospect. Do not send a Dear {blank name, wrong name, wrong gender} letter or email. Automated DMs on Twitter and copy and paste Facebook wall posts are other examples of this mistake.

Mistake #4: Rushing the Sale

Hi my name is Karen buy my junk. Would you do this in real life? Yet, somehow people believe that technology has eliminated the need for common courtesy. Here too the ugly automated DM rears its head. Your first tweet to a mutual follower should not be “Hey thanks for following, here’s my link buy my stuff.” Build a foundation, find out their needs and then offer solutions.

Mistake #5: Tuning into the wrong station

In sales we talked about station WIIFM (what’s in it for me) The acronym was a reminder that your prospect could care less about what you needed to sell to make your quota, they always want to know what’s in it for them. Forget about what you want to sell and focus on what people need from their perspective.

All of these mistakes can be quickly eliminated by putting the focus on your prospect and not yourself. Make sure that your web copy, and your social media communications focus on them and not you. Ditch the spammy wall posts and automated DMs and instead focus on participating in your community and listening for needs. Selling when done with integrity and a focus on the other person will leave you and your prospect like winners and that is the true beauty of the process.

What has been your experience online? Any other mistakes or recommendations to add to the list?

Enhanced by Zemanta

Creepy Strangers and Bad Sales Tactics

by

Hsssssssss....Trust in me - Vertraue mir
Image by alles-schlumpf via Flickr

In the community where I live, our mail is delivered to a community mailbox, rather than to individual homes. The daily trip to pick up the mail is an opportunity to have small chat with your neighbors. On one recent mail trip, I arrived at the same time as a new neighbor. We exchanged pleasantries as we each went to our boxes to gather mail.

A conveniently placed trash receptacle at the boxes makes it easy to sort your mail and discard unwanted pieces.  I moved toward the receptacle just as she was closing her own box and walking toward the curb. “If you know anyone who needs a babysitter, I live right there,” she said pointing at a corner home. In case I had missed the pointing, she recited the address. A little dumbstruck, I think I must have nodded and smiled and muttered okay. She went on to tell me that she was retired and now cares for children. We bid each other a good day and moved toward home.

She did not introduce herself even after the sales pitch. Should I simply tell friends to show up at her home and trust she was not a serial killer?

In sales and marketing, we have learned that people buy from people that they like and trust. However, those are steps 2 and 3. Before like and trust, there is “know.” This poor woman had skipped right to trust without establishing the basics. Many people commit the same sin daily in their marketing or networking efforts.

On Twitter, people auto DM a sales message upon following. In web copy, companies skip right to “buy now” without a proper introduction. They ask for trust but provide no basis to do so.

Does selling always require relationship? No. When you have the answer to an immediate or urgent need, or there are no other competitors, the sales process is very different. However, even companies with a monopoly will do far better by treating customers as if they have a choice. (Cable and utility companies take note.)

When you skip the all crucial “know” you are sending a message that your potential customers are not important. They are fresh prospects that serve to help you hit your profit margin. Your ideal customer is anyone with the ability to pay. Is that the message you really want to send?

Last week, Joanna Young provided tips on writing with intention and possibility and her tips on pacing and leading is perfect for the sales process:

If you’re writing to open up a sense of possibility in another person, you’ll need to do a little work to take them there. You can’t thrown them straight in.

I like to think of it as walking along a road with someone: you want them to get comfortable with your pace, your rhythm, your presence, before you start to do anything more dramatic.

If you take the time to lead verbally and in writing, rather than rushing head long into the sales process, you will experience better results and create longer-term relationships with your clients.

Do you prefer to get to know a person/company before moving to the sales process? What are triggers that make you feel better about going from stranger to potential customer?

Reblog this post [with Zemanta]

The Baffling Case of the Invisible Client

by

Written by Karen D. Swim

The “invisible client” has derailed deals, reset budgets and unraveled the best laid plans.  Sales reps, insurance agents, and business people across the land have been brought down by this foe of good faith. So who is this puppet master behind the scenes?

The Invisible Client is the decision maker or power broker that you do not initially see.  You are hired by a human being (or group) whom you believe to be your client but in reality there’s another who truly holds the control.  The invisible client may be a spouse, administrator or C-level executive. Their power has nothing to do with title or perceived position but their influence on your client or prospect.

Broken StoolI was a licensed Life and Health agent at one point in my career. I was warned early on about the “one-legged sit.” The one-legged sit is an appointment where only one half of a couple is present.  The prospect may have insisted that they are the decision maker.  However meeting with one half of a couple is a surefire way not to close a sale.

In Corporate a variation of the one-legged sit is common. You work your way through levels of decision makers only to discover that a secretary in a different division has a relationship with your competitor AND the influence to sink your deal.

Sometimes you actually close the deal, and begin the work before the squirrely invisible client makes an appearance. You agree on scope and process with your client. You complete the first phase and the client loves your work. Two days later they come back with a “this is not what we wanted, you stupid dunderhead, you dare to call yourself a professional, change the whole thing” list.

More than a mere nuisance, the invisible client if not managed, can disrupt productivity, schedules, budgets and your ability to do your best work. You can however, unveil the mysterious interloper by using the following tips.

  • Assume nothing. Don’t assume that the lead person is truly the lead. Probe for information by asking questions such as: Whom beside yourself will be involved in the decision? Can you step me through your internal review process? Let’s review how the process will work. Will I continue working with you or will others be involved? How will this work impact other departments? Would it be helpful for me to speak with them before we move forward?
  • Listen for clues. The lead client will often provide clues that an invisible client is lurking behind the scenes. I recently worked with a Career Marketing client but the invisible client was his wife. I heard the clues but did not listen to them. While preparing for the process he mentioned his wife several times. “My wife looked over my old resume and told me it was not effective.” “My wife is a CFO who went through this process 3 years ago.” His wife turned out to be a nightmare control freak who almost derailed the project.

Once you uncover the “real client” you can involve them in the process and gain their approval before you begin work. Work to uncover their motivation and then offer solutions accordingly. For example your lead client may be motivated by the bottom line but the invisible client may be relationship oriented.  In a joint meeting you will want to present the bottom line but also reinforce longevity of relationships, your follow-up process, team approach, etc.

When the invisble client is revealed after the fact you can can still involve them in the process. In the case with the CFO wife,  I suggested a phone meeting with both parties to “maximize her expertise” and walk through the questions. I gave the wife the power she needed, and as a result I was able to continue doing my job without interference.

Finally, if you uncover the invisible client in advance and it’s clear they will be trouble, walk away! Sometimes the best course of action is to hightail it before trouble brews. Better to walk away with grace than to end up in the middle of a nightmare project you wish you had never accepted.

Have you ever had an invisible client? How did you handle the situation?

Broken stool image© Franz Pfluegl | Dreamstime.com

Related articles by Zemanta
Reblog this post

Embrace Your Obstacles

by

Written by Karen D. Swim

“Obstacles are necessary for success because in selling, as in all careers of importance, victory comes only after many struggles and countless defeats.  Yet each struggle, each defeat, sharpens your skills and strengths, your courage and your endurance, your ability and your confidence and thus each obstacle is a comrade-in-arms forcing you to become better…or quit.”—From The Greatest Salesman in the World, Og Mandino

Can you imagine your life without obstacles? Go ahead close your eyes and envision your life completely free of challenges? You may have smiled as you imagined a trouble free zone without stress of any kind. The thought of a challenge free life is appealing until you start to examine the consequences.

If everything was easy, we would never push ourselves to reach higher. Strengths and talents would go undiscovered and we would simply live in complacency. Where’s the fun in that?

As I look back over my own life, those darn obstacles have been my greatest teachers. Obstacles have forced me to overcome fears and try new things. They have moved me from a comfort zone to greater discoveries of my abilities and myself. Obstacles have not blocked my progress instead, they have opened new paths for me to travel and given me just the right tools to navigate the road.

As you consider your own life, I am sure that you have countless examples of the good that came from challenge.  I am acutely aware that there is no testimony without a test.  We have all benefited from being students of adversity. Yet, with every new obstacle is the potential to forget that it is a “comrade-in-arms.” There are challenges that we believe we simply cannot face down and we get scared and want to quit.

Quitting is always an option, of course but it really is not a solution. You may forego the immediate discomfort, but the lingering impact is far more damaging.  You will never build up your endurance to challenge if you simply quit. In the same way that regular workouts make you stronger and faster, obstacles are the weights that build your faith muscles. Each workout makes you stronger, better and more confident.

Embrace your obstacle, it is your partner in success. Use it to make you tougher, smarter and better. You will never regret facing a challenge but it is almost certain you will regret quitting.

How do you deal with your obstacles? Please share your thoughts and insight in the comments box.  Remember you don’t have to be a blogger or even have a website to join in the discussion, everyone can comment.