Apr 2009
The 24 Hours of Innovation...
28/04/09 08:45 Filed in: News
For a while now I have been watching the Board of Innovation site. Although there is a much larger goal and purpose behind this site, I particularly like the area that talks about Business Models and how you can build any business model with only 10 blocks.
They are hosting the 24 Hours of Innovation Event starting on May 15th at 10am CET and it will go through to May 16th at 10am CET. During this time they will have different time slots, each featuring an exciting innovation ranging from an innovation award to creativity sessions. There will be auctions and interviews with a number of global though leaders regarding innovation.
I have been asked to participate in the “My half time pep talk for 2009”. During a particular timeslot, the Ideas2Revenue blog will be showcased. The overall view is to share views on the first half of the 2009 year as it relates to innovation, and to give ideas, suggestions, and a pep talk for the next half of 2009. So....any specific topics you would like us to promote or discuss? Any ideas for the remainder of 2009 on what you feel we should be doing to increase innovation and entrepreneurial spirit? Let us know....
They are hosting the 24 Hours of Innovation Event starting on May 15th at 10am CET and it will go through to May 16th at 10am CET. During this time they will have different time slots, each featuring an exciting innovation ranging from an innovation award to creativity sessions. There will be auctions and interviews with a number of global though leaders regarding innovation.
I have been asked to participate in the “My half time pep talk for 2009”. During a particular timeslot, the Ideas2Revenue blog will be showcased. The overall view is to share views on the first half of the 2009 year as it relates to innovation, and to give ideas, suggestions, and a pep talk for the next half of 2009. So....any specific topics you would like us to promote or discuss? Any ideas for the remainder of 2009 on what you feel we should be doing to increase innovation and entrepreneurial spirit? Let us know....
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The first customer....
25/04/09 14:25 Filed in: Customers
If you ask an entrepreneur, many of them will tell you that the first customer is always the hardest. I challenge this saying and that maybe this saying belongs in the same bucket (read: trash can) as “Build it and they will come”, and “Build a better mousetrap and customers will beat a path to your door”.
Now, I do not want to play down the fact that getting your first set of customers involves some work, but I firmly believe that if you have your mind in the right place then it is much easier than what some early stage companies are facing. I believe the challenge is a fundamental one where people are viewing their company, their solution, and their day to day operations as business practices that take place “behind the scenes” and without customer involvement or interaction. Simply put, If you just take an idea and start developing it without client involvement, then you risk building something that does not truly meet their needs, and will take much more work to get into paying clients hands.
Would you like to have a good saying? If so then start with “go find a customer problem, and solve it...and you will have a solid business”. In fact, modify it just a little bit to be “go find a customer problem, build a relationship with these customers and involve them throughout the process of building a solution to solve their problem...and you will have a solid business”. If you involve them throughout the process not only do you build a solution that meets their needs, but you actually begin to build relationships with your first set of customers and reference sites.
So, if you are an entrepreneur looking to build a solution that will change the world....start thinking about your first customers now, and not after your development is complete. If you are not sure how to do this, then we can help. If, however you have already built your solution and are now searching for your first set of customers, then all is not lost. We can still help, however it will still require you to change your mindset to be more inclusive of customers into your business and not exclusive.
Would you like to have a good saying? If so then start with “go find a customer problem, and solve it...and you will have a solid business”. In fact, modify it just a little bit to be “go find a customer problem, build a relationship with these customers and involve them throughout the process of building a solution to solve their problem...and you will have a solid business”. If you involve them throughout the process not only do you build a solution that meets their needs, but you actually begin to build relationships with your first set of customers and reference sites.
So, if you are an entrepreneur looking to build a solution that will change the world....start thinking about your first customers now, and not after your development is complete. If you are not sure how to do this, then we can help. If, however you have already built your solution and are now searching for your first set of customers, then all is not lost. We can still help, however it will still require you to change your mindset to be more inclusive of customers into your business and not exclusive.
Do not think of the color red!
20/04/09 19:30 Filed in: Questions
When dealing with customers and potential clients, many people in business know to ask the basic standard questions; Do you have budget? What is the process you have to go through to get this purchased? Who else do you have to involve in this decision? etc. However, very few people truly appreciate the power of questions and what it can do to either help...or harm you.
As you can see from the beginning of this post, you can very easily guide someone to a particular answer based upon the questions and statements that you use. Although this may bring a tear of joy and happiness to the eye of your VP of Sales, the reality is that when you are digging deeper to get a true understanding of a clients particular needs, and business requirements you have to be careful with the questions that you ask. The last thing you want to do is to ask questions that will lead them to give you the information that you want to hear. Of course you think your idea is a great one. Of course you think that the market desperately needs your product or service. It is good to believe this...but just make sure you are not using your questioning process to simply help you confirm your beliefs. The goal should be to build and use questions that will reveal “insider” information which you can then use to build your product or service, clearly define your pricing strategy, identify the most efficient route to market, and to understand the “hot buttons” which will give your marketing and sales momentum the kick that it deserves.
Many companies get caught in the trap of thinking that their sales team should be able to uncover this information and to communicate it back to the rest of the company including development. The thing you have to remember is that your sales team is paid to close deals. It is in their blood to ask questions, and lead a conversation to a decision point and next steps. This combined with the fact that you should not be distracting your sales team from what they are supposed to be doing....selling, means that they are not the best people to be doing this activity. Think about the last time you went to buy something and a sales person approached you. Right or wrong....I am willing to bet that if you think back to this situation, and how you felt, you may remember how you instinctively become just a bit more guarded about what you said to this salesperson. Do you want your clients feeling the same way when you are trying to uncover information about their needs which is vital to the success of your product...and your company?
So, the next time you are looking to truly understand your client needs and business requirements, ensure that your questions are not leading them to give you answers that you want to hear. It is better (and much cheaper) to hear the hard truths regarding your product or service now....and not 12 to 18 months after you have already taken it to market. Also, be sure to send in the person (people) who can most effectively put your clients at ease. If you approach this properly, and understand these concepts then you will build a successful business from a commercially successful product or service....which will allow you to focus your attention on your business which is in the BLACK....and not in the RED.
Postmortem deal review...
16/04/09 22:13 Filed in: Sales
When is the last time you have done a postmortem on deals that you have won?
Many sales teams and organizations know the importance of doing this type of review on lost deals, but for some reason not many understand and fully appreciate the value in doing the same type of analysis on deals that they have won. If you are not taking advantage of this opportunity, then you are missing out on building longer lasting relationships with clients and truly understanding the value your solution is providing.
Although you may like to think that the customer bought from you because your product or service is “the best”, but the reality is that this is very rarely the reason why they purchased. Think about it for a moment...with today’s economy, people do not buy a solution unless they can clearly understand and articulate the value of that solution to their particular situation. With purchasing approvals having to go even higher within an organization even for the smallest of deals means that somewhere along the line someone has had to build a business case to justify this purchase. If you do not understand this business case, or were not involved in helping the client to build it, then you have just lucked out on getting this business.
The bottom line is that it is impossible to make something that you do not truly understand repeatable. This is especially true when it comes to sales.
So, take the last 5 deals that you have won and do a postmortem review. Go back to these client and ask them to help you understand the value that they are receiving from your product or service. Find out what you did right....and find out what could have been improved. Find out what was important to them in their decision and business case justification that motivated them to move forward with the purchase of your solution. Once you have gathered this information, pick up the phone and talk with the top 5 deals you have listed on your current forecast. Talk with these prospects to see if they share the same issues, and are looking to realize the same type of value from your solution that the 5 current customers are now already enjoying.
Many sales teams and organizations know the importance of doing this type of review on lost deals, but for some reason not many understand and fully appreciate the value in doing the same type of analysis on deals that they have won. If you are not taking advantage of this opportunity, then you are missing out on building longer lasting relationships with clients and truly understanding the value your solution is providing.
Although you may like to think that the customer bought from you because your product or service is “the best”, but the reality is that this is very rarely the reason why they purchased. Think about it for a moment...with today’s economy, people do not buy a solution unless they can clearly understand and articulate the value of that solution to their particular situation. With purchasing approvals having to go even higher within an organization even for the smallest of deals means that somewhere along the line someone has had to build a business case to justify this purchase. If you do not understand this business case, or were not involved in helping the client to build it, then you have just lucked out on getting this business.
The bottom line is that it is impossible to make something that you do not truly understand repeatable. This is especially true when it comes to sales.
So, take the last 5 deals that you have won and do a postmortem review. Go back to these client and ask them to help you understand the value that they are receiving from your product or service. Find out what you did right....and find out what could have been improved. Find out what was important to them in their decision and business case justification that motivated them to move forward with the purchase of your solution. Once you have gathered this information, pick up the phone and talk with the top 5 deals you have listed on your current forecast. Talk with these prospects to see if they share the same issues, and are looking to realize the same type of value from your solution that the 5 current customers are now already enjoying.
A fair exchange...
08/04/09 16:47 Filed in: Sales
One of the sayings that I have picked up over the years and continue to tell people is that sales is all about a fair exchange of value for money.
It has been my experience that many early stage companies truly struggle with finding the right pricing strategy for their solution. They often go through the standard process of calculating how much it takes to manufacture their product including materials, time, etc. They then add a certain percentage of profit that they would like to receive from each sale....and they settle on the price. However, many of these early stage executives then have a tendency to come back and revisit this topic a number of times, either because they are not seeing sales traction, or because they feel that they may be “leaving money on the table”.
In our program, Building Sales Momentum Through Client Driven Development, I have set out a process for allowing you to set your pricing strategy and to be comfortable in the fact that it is the right strategy. If you go back to the statement that I used when starting this post is was that it should be a fair exchange of money for value. If you agree with this then, the variable that you need to figure out before you can calculate money is to understand and calculate the value your offering provides to your customer.
Now...notice in my initial statements that I used the term sales which is not to be confused with the act of selling. The art of selling is to uncover and understand your clients needs and to understand what they define as value. It is about demonstrating how the value of your solution far outweighs the price that is being charged. Through the Ideas2Revenue program, you will be walked through the process of identifying, engaging, and incorporating clients into your process early so that you may accomplish this. Although our program is not just about a “selling” or any new magical techniques to help you “sell” we do however offer you a number of ways that you can begin to question and truly understand the value of your solution and the impact on either the personal lives of your clients or the impact on their organization as a whole.
So, if you have struggled or if you continue to struggle with the pricing question....then understand that you are not the only one however know that there is an easier way. Yes, it is possible to have confidence in your pricing strategy, and to ensure that you are offering your clients a fair exchange of value for their money.
How we communicate has changed...
06/04/09 20:53 Filed in: Sales
I am sure that I am not the only one that has said this over the last few years. In fact, I am sure that you have heard it from a number of people even over the last few months.
I was at a house party with some friends who my wife works with in the local education system. Somehow the topic of email and the lack of live conversations came up. We had a great conversation with the hostess of the party and she was telling us about how even in the office where she works, they use email as their main form of communication. She went on to tell how several of the people she worked with operate so much through email that even if she did have a conversation with this person, they would ask her to send an email with any types of commitments or activities that need to be completed. She communicates more by email, than she does with a live conversation with her coworkers a few cubicles away! My wife and her then spent a few minutes talking about how many of the children in the schools rely more upon social networking, instant messaging, and texting in order to communicate with their peers. In many ways they have a hard time communicating with each other on the phone or in person and often opt just to send a quick text message or tweet.
So, what is the big deal? Well, it really began to sink in on how the world has truly changed as it relates to how all of us, including our children communicate. Although I am of an age that is more comfortable in picking up the phone and calling someone, there are more and more people that the only way you can communicate with them is through some sort of electronic medium. I looked at my own children and the amount of texting, and instant messaging that goes on with them and their friends. In their world the phone is an antique.
Even though this topic is one that has many different views and this one topic can fill a whole blog by itself, my point was to simply bring it up so that you can think about it in your own terms. The one thing you always have to remember is that people buy from people. Relationships and a feeling of trust and sincerity go a long way when dealing with current as well as potential customers. If you are communicating with them through an electronic medium like email, then you may very well be loosing out on the opportunity to build trust and demonstrate your sincerity with your clients. It is next to impossible for you to read body language or to even show true sincerity in your voice when it has to be communicated via a keyboard. So, pick up the phone and call someone. Spend a day calling your current customers or even your potential ones. Although you may not be able to change the world back to the time when the phone and live meetings were how business was done, but who knows maybe by simply making a phone call you can set yourself apart from your competition.
I was at a house party with some friends who my wife works with in the local education system. Somehow the topic of email and the lack of live conversations came up. We had a great conversation with the hostess of the party and she was telling us about how even in the office where she works, they use email as their main form of communication. She went on to tell how several of the people she worked with operate so much through email that even if she did have a conversation with this person, they would ask her to send an email with any types of commitments or activities that need to be completed. She communicates more by email, than she does with a live conversation with her coworkers a few cubicles away! My wife and her then spent a few minutes talking about how many of the children in the schools rely more upon social networking, instant messaging, and texting in order to communicate with their peers. In many ways they have a hard time communicating with each other on the phone or in person and often opt just to send a quick text message or tweet.
So, what is the big deal? Well, it really began to sink in on how the world has truly changed as it relates to how all of us, including our children communicate. Although I am of an age that is more comfortable in picking up the phone and calling someone, there are more and more people that the only way you can communicate with them is through some sort of electronic medium. I looked at my own children and the amount of texting, and instant messaging that goes on with them and their friends. In their world the phone is an antique.
Even though this topic is one that has many different views and this one topic can fill a whole blog by itself, my point was to simply bring it up so that you can think about it in your own terms. The one thing you always have to remember is that people buy from people. Relationships and a feeling of trust and sincerity go a long way when dealing with current as well as potential customers. If you are communicating with them through an electronic medium like email, then you may very well be loosing out on the opportunity to build trust and demonstrate your sincerity with your clients. It is next to impossible for you to read body language or to even show true sincerity in your voice when it has to be communicated via a keyboard. So, pick up the phone and call someone. Spend a day calling your current customers or even your potential ones. Although you may not be able to change the world back to the time when the phone and live meetings were how business was done, but who knows maybe by simply making a phone call you can set yourself apart from your competition.
A must read....
03/04/09 08:23 Filed in: Books
One of the key areas in this book is that on several occasions he discusses the importance of having customers or potential customers involved in your development. Although I would like to claim that Clayton Christensen stole my idea :-)...we both know that he didn’t. The concept of working closely with current and potential clients just makes sense.
If you are looking for the overall high level strategy for your company and solution then again this is a must read. If you are looking for a specific process that will help you to identify, contact, and work with potential clients within your target market industry, then may I recommend the Building Sales Momentum Through Client Driven Development program :-).