Study Shows Cash is Still King for Retail Sales

My training and consulting work focuses on business-to-business selling. But I also keep on eye on changes in consumer trends as this can indicate underlying movements in the way customers think and buy.

The Sydney Morning Herald recently reported that a Reserve Bank of Australia (RBA) study of consumer payment behaviour released on Wednesday found cash is still king, accounting for 70 per cent of all transactions.

EFTPOS and MasterCard and Visa debit card payments make up 15 per cent of all transactions, followed by MasterCard and Visa credit card transactions at nine per cent and American Express and Diners Club cards at one per cent.

Cash is overwhelmingly used for low value payments under $10 and for 75 per cent of payments between $11 and $25 for items such as take away food and bar bills.

Credit Card Loyalty Programs Work

The report aso found that loyalty programs offered by credit card companies do work.

For the average consumer, loyalty programs increase the probability of credit card use by 23 percentage points and reduce the probability of cash use by 14 percentage points.

Building Brand Within the Organisation - Not Discounting, is secret to success.

See this comment on marketing and discounting from Diana Williams the founder of the successful Fernwood Womens Health Clubs...

AG: Have you increased your marketing though, this time?

DW: No not really, not our advertising. What we have done is spent time really evaluating our brand and on building our brand within the people in our organisation, that is our franchisees and their staff. This is a very important aspect of business. When you are in tough economic times you have to manage the brand well. People can be tempted to discount or do things outside what we are trying to achieve.

AG: So you have been very clear on holding your line on discounting?

DW: Yes we have. We are very strong about not discounting - always have been. There are other ways that you can offer value without giving away half of your business. The reason our membership prices are the way they are, is because that’s how much it costs to deliver the kind of service and if we start discounting then the level of service drops. If the level of service drops then it is a downward spiral. We have been able to sustain that so it hasn’t been an issue.

Read the whole interview at Smart Company.

Use a Competitive Analysis to Win More Business.

[This article is a segment from one of the bonus reports you get when you subscribe to The Assassin Analogy sales improvement strategies.]

You must clearly understand how your services or products compare to competitors.

This competitive analysis should be done from the client's perspective. Be objective. Don't limit your findings.

Some people fall in love with what they are selling. This can be a real trap for technical staff who are absorbed by how good (or how complex) their product or service is.

They can get so mesmerised by what they are offering they create a 'halo effect' in their mind around their products or services.

Note: A 'Halo Effect' is when you allow positive factors to cover up, or obscure, potentially detrimental attributes of your solution. Essentially you create a halo that prevents you from seeing any shortcomings of your product or service.

This can stop you from being critical and making a realistic assessment of what your client will see and think when they review your offer.

Compare Your Competitors Like Your Prospect Does

One method of undertaking a competitive analysis is to use a Weighted Competitive Value Chart. (Example available upon request.)

In this chart you list the key features and related benefits ('potential' benefits). Then you assign an Importance Factor (from 1 to 10) against each key feature/benefit.

The subjective part of this analysis is to make a judgement about your main competitors and give each competitor a Performance Weighting for each key feature/benefit (1 being 'weak' to 10 being 'strong').

When the Importance Factor is multiplied by the relative Performance Weighting the resulting variables can be ranked to give an indication of which competitor might stack up most favourably from the clients perspective.

Create Strong Selling Statements

Whilst this analysis may be seen to be somewhat academic, the real benefit for you is you can start to create your key selling statements that will either:

(A) Establish or reinforce your market leadership; or

(B) Clearly explain any obvious differences to minimise any detrimental impact of potentially stronger competitors.

This competitive analysis will also give you extra confidence if (or when) you are asked by prospects to explain or compare your products or services against others on the market.

Presentation Skills Myth De-bunked

For years many presentation skills workshops have promoted the "fact" that the meaning of your message is accounted for mainly by your body language (tone of voice and gestures) - with only 7% being attributable to the actual words you use.

For a detailed exposure of this myth see this blog post by New Zealander Olivia Mitchell.

My view...

Yes, the original research from the 1960's may have been misquoted. However reality is that the impact you - as a presenter - make on your audience is a combined result of your words, voice, mannerisms, gestures, and of course any visual aids or props you may use.

That is... both content (words) and delivery (style) are important.

Yes, the "fact" that words alone account for only 7% of the message is not correct. Doubt this? check one of the many technically-oriented presentations given by Bill Gates - he still gets a message across even though he usually does very little apart from the words he says. (When it comes to presentations he's certainly not an entertainer!)

My message here is that a presenter must manage all aspects of the presentation to get the result they are aiming for from their audience.

Presentations are about communication. It's about getting a result. Moving people to action - either in thought or in person.

To learn more about how you can improve your own presentations skills check out my presentation skills workshop coming up in Sydney and Brisbane.

10 Tips for Business Success

Dan Martin reports from the Business Startup show in London and highlights the presentation given by Rachel Elnaugh (a well-known UK entreprenuer). Here are her top 10 tips - suitable for just about any business I think - not only startups.

1. Is your business worth saving? If it's simply not working, move on.

2. Don't let the doom and gloom get to you. There are thousands of businesses doing brilliantly well in the current climate.

3. Why aren't they buying? Build in feedback loops about why customers don't buy. And remember, price cutting may not be the answer.

4. Is your marketing working hard enough? Keep a track of how your customers find you. If it's referrals, reward the referrers!

5. Banks aren't the only source of finance. Think who has interest in your business: key customers, key suppliers, joint ventures etc.

6. Money isn't the only form of wealth. Bartering, for example, is a powerful way to accelerate your business.

7. Spend time every day planning. If you're on output all the time, you won't get as far as if you step back and think about where you're going with your business.

8. Get help if things are going wrong.

9. Don't let the fear get to you. Everything you think about you get more of so think positive!

10. If you do 10 things and 9 go wrong, focus on the one that worked!

For more information and links visit the article here.

How to Avoid Interrogation Syndrome When Selling

In selling and in networking we are told that asking questions is the right thing to do.

And it is.

But how do you stop your questions turning into an interrogation of your prospect?

- Who are you?
- What do you do?
- How long have you been doing that?
- Where is your office?
- How many staff do you have?
- What products do you sell?
- Who are your customers?
... and before you know it, you are in interrogation mode.

Create a Conversation

When you ask questions you should to be aiming to create a conversation.

Sometimes if you get nervous it's tempting to keep asking questions - as that sort of puts you in control of the communication flow, and gives you something to say. But that can be dangerous, because the other person can easily lose interest if they think all you are doing is 'digging for gold' - looking for information you can use to sell to them.

Suddenly your prospect gets turned off and feels like they are being manipulated.

Share Information as You Ask

The answer is to make sure you share information as you ask your questions.

Sounds simple... but in reality sharing information and maintaining a free flowing discussion is quite challenging. You need to read the conversation and know when it is appropriate to add some extra information without interrupting what the other person is saying.

What sort of information can you add?
- Industry data or statistics
- Client success stories
- A personal anecdote
- Refer to a recent (and relevant) news story
- A snippet of relevant detail about why you deliver your services or products they way you do

Very important note: During this conversation you are not really selling, you are exploring. Your objective should be to find out more about the other person.

For networking: You want to know how you can help the other person, and how they may be related to your business activities (e.g. would they make a good referrer?).

For selling: You want to fully explore their situation and understand their requirements so you can effectively handle the sales discussion. And you need to know that before you start to
present your products, services, or solutions to them.

Asking questions is very important.

Even more important is 'how' you ask the questions and your ability to maintain a free flowing conversation that allows you to be authentic and really get to understand the other person, their priorities, and their concerns.

Can issuing a Press Release save your business?

Getting good PR coverage from sending out a press release is often seen as a 'holy grail' - bringing instant success to the company featured.

But does it really?

A short sharp answer to this question is provided by Mickie Kennedy at ereleases.com. He says the same thing I have recommended to many clients... essentially you need a PR campaign (maybe spread over many months) rather than a one-off media release.

Mickie says there are common elements in successful media release campaigns:

- a series of targeted press releases (at least one a calendar quarter)

- press releases posted on company website

- press releases used as marketing collateral, like customer newsletters, client proposals, etc.

- less hype and more bite; stick to objective newsworthy hooks

Free Sales Improvement Guide for Companies that Sell Technical Products or Services

I have just relased my new 20-page sales improvement guide - for CEO's, HR Managers and Sales Managers.

Download The Assassin Analogy - the truth about why technical staff don't like to sell.

Others have said:

"The Assassin Analogy tackles the biggest challenge of consulting and technical professionals: why they see selling as a bad. In his usual practical and no-nonsense style, Stuart demonstrates why he is one of the leading global authorities on services marketing. This is a must read."

Edwin Trevor-Roberts, CEO, Trevor-Roberts Associates


"Stuart, I recently read your report ‘The Assassin Analogy’ and I must say, it felt like you had written it just for us! You have identified all the elements we struggle with as a service company when trying to encourage our technical staff to use their knowledge and ability to promote sales. But you’ve not left us with the problems, you’ve identified what we can do to overcome their inherent resistance to sales and having a clearly defined structure is very helpful.

This is essential reading for any service company looking to improve their sales ability and it provides great information for anyone attending a sales training program utilising the S.O.X. Methodology."

Steve Russell, Group Human Resources Manager, Siltech Pty Ltd

3 Steps to Sell More.

I'm going to let you in on a secret.

It's an important part of my Selling With Confidence workshop.

If you don't really want to be a salesperson, but have to sell anyway, you are not alone. Most business owners, professionals, technical staff and service providers dind't choose to have a
career in sales. But they still need to sell to get more clients and increase revenue.

Here's the good news...

If you're trying to win more business from your sales discussions there is a three-step strategy to help you zero-in on exactly what your client wants.

And if you do this properly your client will quickly trust you and clearly understand how you will be able to help them.

They will see the 'value' you are offering and be eager to be your client.

= = = =

Most sales people waste their customer's time by:

- Not listening
- Talking too much
- Not really understanding what the customer wants
- Sprouting off about their services or products

= = = =

A January 09 survey of 230 buyers of professional services found the top way professionals sabotage their own sales conversations is by 'not listening'.

'Talking too much' was also one of the most highly rated problems.

You can do better than that.

Next time you have a potential client in front of you try the following process.

Note - this process will build trust and enable you to learn what your prospect really wants. It will lead to you being able to present a strong case for your product or service that is closely tied to what your client is looking to achieve.

It will prevent you from talking too much.

It will help you win more business.

Ask questions using my S.O.X. (TM) methodology:

S = Situation questions
O = Opportunity questions
X = aXtion questions

Ask 'Situation' questions to discover the facts behind the prospects current situation. What is driving their decision now? What do they know about your services/products?

Ask 'Opportunity' questions to identify the scope of their needs. Sure, they may have a problem, but is it big enough for them to want you to fix it? Will they spend the money? What is their opportunity? What is in it for them?

Ask 'aXtion' questions to gain approval to move into the presentation phase. Your presentation may happen immediately after asking your S.O.X. (TM) questions, or maybe you have to meet with other decision makers on another day to present your solution.

Importantly, your presentation will emphasise the key points you discovered from the Situation and Opportunity questions. You will be able to specifically show a strong connection between what they want, and what you are offering.

This is a simple yet highly effective strategy.

However it is critically important you develop your own set of questions that demonstrate your expertise, and that are suitable for your services, and your type of client.

Then you can use those questions to guide the sales conversation, build trust, and gain commitment from your prospect.


Related link:
Consultative Sales Training

Public Performance, Private Joy

Take 4 minutes and watch this video of a well planned, but unexpected performance at Antwerp station. Uplifting!

Are You Fooling Yourself

It's hard work being consistent.

And sometimes it can be boring.

When we start something new - whether it be a new exercise regime or reading the first chapter of a best-selling novel - we get caught up in the excitement. We might even experience an adrenalin rush. It feels good.

But it doesn't stay that way. At least in most cases anyway.

What happens?

We get used to it.

Doing the same thing. Over. And over again.

This reminds me of a quote attributed to the ancient Greek philosopher Aesop - 'Familiarity breeds contempt'.

In other words we get used to it and start to forget why it is important for us. We overlook the purpose of what we are doing. We lose sight of our initial objective because we get bored or lazy.

It is the same with doing your marketing. It is easy to get excited by the latest fad, marketing technique, or piece of advice. But the excitement doesn't last. You get lazy.

You find yourself committed to too many things. Most of which are only half done. Then you let things slip by.

= = =

* Skipping the personal networking events.
* Overlooking the regular newsletter article, or blog post.
* Not sending 'thank you' messages.
* Updating the website only 'when I have time'.

= = =

Sidebar: Many successful business owners pretty much know what
they should be doing. Their challenge is often having the
discipline or structure to implement what they know. This is
where a coaching or marketin mentor program can be invaluable.

For any business, one of the secrets to marketing success is to be consistent.

Of course you need to be doing the right things in the first place. And then ensure you are consistent in your implementation.

That is why - when planning your marketing - you must make choices you can consistently deliver.

An example. For many service-based businesses presenting an informative seminar can be a fantastic way to build credibility and attract clients. As you would expect, presenting seminars on a consistent basis will have even greater impact.

But if you know you don't have the skills, or the enthusiasm, to deliver informative seminars don't make the mistake of including that tactic in your marketing schedule.

Don't fool yourself.

Because if you can't commit to being consistent it is rarely a good idea to do it at all.

Please don't misunderstand me here. I'm not suggesting you should simply ignore every marketing tactic you don't like. (In some cases that wouldn't leave much on the to-do list!)

If presenting seminars was important for growing your business I would recommend you learn effective presentation skills as your first option.

In summary, identify and explore the value of relevant marketing options. Then consistently implement your chosen strategy.

Related link:
Get help to implement effective marketing with Stuarts Marketing Mentor Program

How To Successfully Use Your Digital Footprint.

Remember when you walked on the beach? You could see a trail left by those who had been there before you. Their footprints went this way and that. Some seemed to disappear into thin air. Whilst others were firm and clear in the sand.

You left your footprints on the sand too.

And others could choose to follow you, or not.

Now, in the online marketing world you also need a footprint.

It's called your 'digital footprint'.

And it's very important.

In fact, the topic of creating a digital footprint was discussed at the recent workshops I have given about using social media.

You see, when people 'see' you online, they usually only get a glimpse of you. Maybe they read an article written by you. Or maybe they see one of your blog posts. Or maybe they read comments on your wall at Facebook.

But that's not enough. They will want more... because they only have part of the puzzle.

They need to be able to follow your digital footprint to get the complete picture.

OK, so what is your digital footprint?

My definition of a 'digital footprint' is:
The combination of online information, links and interaction that will lead a prospect to your main marketing message.

Your digital footprint can include your website, blog, social network participation, PDF documents, audio recordings, online presentations, micro-blogging (such as Twitter), photo sharing, video publication and more.

Example #1

Let's look at a simple example. You publish a blog. And you have readers who receive updates when you publish each post. When your readers visit your blog and read your post, what do they do if they want to know more about you? Or if they want to find out details of your services?

In most cases they will visit your website. There will be a link on your blog to your website. That's pretty much standard practice now.

Example #2

Let's look at a more complex example. An example that reaches even more prospects. You publish your blog. But you also use Twitter and you also have a profile on a social networking website called LinkedIn.

Now when you publish your blog post you also send a Tweet mentioning the new post, with a short URL link to your blog. At the same time you are also participating in an online discussion at LinkedIn about a topic you are knowledgeable on.

Someone reading your comments at LinkedIn likes what they see. So they 'follow' you on Twitter - to see what else you might have to say or recommend. They are interested in your 'tweet' about your blog post and visit your blog. They like what they find there and
decide to visit your website for even more details on what you can offer.

See what happened?

Your expanded digital footprint in the second example (website, blog, Twitter, LinkedIn) encouraged your prospect to learn more about you at each step they took.

They followed your footprint.

It was easy for them to find out more about you.

And it was very easy for you to tell them more about you. In fact, you didn't push any information at all. They took it from you.

And the best thing is... by the time your prospect reaches your main marketing message (usually on your website) they have really gained a much stronger image of who you are and how you can help them.

Your digital footprint has done it's job of leading prospects to you.

= =

Need help to create your digital footprint - or help to get your marketing on track for success? Check out my Marketing Mentor Program.

Are You Any Different?

Do you claim any of these:

- We offer the best customer service.
- We really care for our customers.
- Established for 25 years.
- We guarantee the lowest prices.

I hope you don't.

You see, too many small businesses try making big claims about the same stuff everyone else is saying.

So what?

To make an impact on your potential clients you need to connect with their problems. Then show you have clear options to help them.

Making big generalised claims may sound impressive. But nobody really believes it.

How can you identify the problems or pain your prospects are feeling?

Try thinking through these scenarios and how your prospects may be feeling.

(Note: These steps are a small part of a detailed process covered in the Marketing Mentor Program.)

1. Your prospect has come to a crossroad. They have reached a defining moment when they need to make a decision. What would that moment be for your clients - for your business?

2. Your prospect is feeling, or wants to feel, some emotion. What will your prospect feel as a result of using your products or services? Communicate in their language from their perspective - not yours.

3. Your prospect is ready to choose a service or provider. They are wondering if they can trust you. Will you really deliver what they want or expect? Identify the risks they may perceive and
explain how you will avoid that happening to them.

Then consider how you work with clients. What is your focus? You need to easily explain how clients will benefit from what you offer. Why will they feel good about it?

Importantly, you must create a 'flavour' for your business.
A way of working that sets you apart from your competitors.

Now you are ready to create a meaningful 'point of difference'.

You will be able to communicate your difference (sometimes called your USP) in a unique and compelling manner across all your marketing materials.

To create an effective marketing action plan, and get regular support to stay focused on results, join my Marketing Mentor Program.

Join me at International Coaching Federation luncheon Brisbane April 3

I'll be presenting an insightful presentation titled How to Use Online Social Networks to Grow Your Practice . Everyone is welcome - you don't have to be a coach. RSVP essential.

Brisbane
April 3, 2009
11.30am to 2.00pm
433 Logan Road, Stones Corner

View event details here

The Power of Focused Marketing

Yesterday I was presenting a 'round table' session for a small group from my business club.

We were talking a lot about online marketing options, and how all businesses can use their website to generate more sales, enquiries, bookings, or event registrations.

We spoke about how that even applies for businesses that may not appear at first glance to be 'online' businesses, such as accountants and coaches.

Side bar: I often find that business owners are overwhelmed by the choice of marketing tacics. And I don't blame them. As a marketing professional my head also spins with the amount of options available.

At the roundtable session I made the point that you - as the business owner - have to understand what your prospects need to have, know, or learn, to turn them from a looky-loo prospect to a paying customer.

It is that definition of 'what your prospects need' that should be driving your choice of which marketing tactics to use.

- Do they need educational information?
- Do they need to see proof of your credibility?
- Do they simply need the details spelled out for them?
- Do they already know what they want?

Too often it's easy to simply continue doing what you've done before. And that goes for your marketing activities too.

Just keep doing what you've done in the past. Or what your competitors do. Or what is 'done' in your industry.

But the world moves on.

In particular the marketing world continues to evolve.

Now there are more options to consider with all the social media services and tools available. And it's not just a fad. Many of these tools will be around far into the future.

What are your potential clients using, viewing or reading?

Twitter
Facebook
Flickr
LinkedIn
SEO
Blogs
and there's plenty more (these are just the well-known ones)

The question is... What should you focus on?

If you're not careful you can get washed away in the flood of new ideas, tools, gadgets, gimmicks, and hype.

But will it work for you?

Each business will need a different answer.

- Your answer will be partly driven by your business processes.
- Partly driven by what your prospects need.
- Partly driven by your marketing knowledge.
- Partly driven by your personal or business resources.
- And partly driven by your degree of interest in what is being done.

You need to fill any gaps in your knowledge, make decisions about what to do, and consistently implement those ideas.

TIPS:
Don't bite off too much to do at once.
Don't use tactics that are irrelevant for your prospects.

In this case, more is not always better.

You want to use the best combination of tactics to create the business results you are aiming for. Don't just do things for the sake of doing it.

Read. Watch. Listen. Learn.

Focus on what your prospects need to know to move from being a silent observer to becoming a regular happy client.

That focus will give you the power to make smarter marketing decisions, and the power to attract more clients more easily.

Note - If you need help to set and maintain your marketing priorities you may find my Marketing Mentor Program useful.

More Proof of the Power of Models

Yesterday I wrote about how to use a Service Delivery Model to win more business. In summary, your model is a visual representation of how you provide your services.

It gives you the opportunity to emphasise your competitive advantage - and to demonstrate your expertise - when talking with potential clients.

In his 103 Report newsletter Jeffrey Baumgartner discusses the benefits of using a 'Innovation Process Cycle' - check out the groovy cartoons.

His cartoons are a great example of how to simplify a complex process so you can discuss it clearly with other people.

Using a visual model - even in a cartoon-style format - can be a fantastic tool to help you explain your services to potential clients... and win more business.

Need help creating your Service Delivery Model?

Get the Service Delivery Model Toolkit here