business | The Age of the Customer – by Jim Blasingame

Blasingame’s Law of Sales Pipelines…for businesses

May 30, 2014 1:00 pm , admin

Selling is a numbers game.

A maxim is a generally accepted truth. Calling is selling a “numbers game” is a maxim for two reasons.

1. There are hundreds – if not thousands – of things that can cause a fully qualified prospect to not complete a transaction, at least not on your preferred schedule.

2. Regardless of all of the bumps on the path to a signed contract, it’s still your job to produce enough sales revenue to stay in business.

Photo courtesy of EOS WorldWide

Enter the sales pipeline, and it’ll all tie together.

A sales pipeline is a planning concept that helps managers and salespeople forecast sales for any given period – week, month, quarter or year. Think of your sales pipeline as overhead plumbing with faucets positioned at the calendar intervals your business requires. From these faucets you draw the mother’s milk of any business – sales revenue.

Pipeline faucets come with screens that only allow a sale to pass through so into the pipeline you load only those prospects you have qualified. That means the prospects that have answered enough questions to allow you to determine that what they want, and your ability to deliver, will combine to produce a faucet-conforming sale within the timeframe or your forecast. Once in the pipeline, a prospect is either on track to become a sale or a forecasting mistake to be removed.

As you record a prospect’s entry into the pipeline you must include what you know about their stage of decision-making, plus what you have to do to move them to customer status. Identifying what’s left to be done with each prospect – demo, trial, proposal, final close, etc. – will help you forecast which faucet –you can expect a sale to pour out of, whether next week or next month.

At this point, let’s refer to The Bard. In Act I, Scene III, of Hamlet, Polonius famously says, “This above all, to thine own self be true.” If you aren’t honest about a prospect’s progress to faucet-conformity, you’re setting yourself up for forecasting failure.

How much revenue you draw from your sales pipeline depends on the twin standards of sales success: quantity and quality.

Here’s Blasingame’s Law of Sales Pipelines: Load the pipeline with enough prospects on Monday (quantity) to have enough qualified prospects to close on Wednesday (quality) so that you can draw the sales you need from your pipeline on Friday (success).

Forecast sales successfully with quantity, quality and to thine own self be true.

Posted in: Age of the Customer, Storytelling , Tagged: age of the customer, business, customers, Jim Blasingame, selling, small business, small business advice, small business success

Small business lessons from big business mistakes

May 28, 2014 1:00 pm , admin

Here is a true story from which several business lessons can be learned.

A while back, I needed to reach a friend who worked in the local office of a national company. Searching the phone book and online, I found only a toll-free number that connected to an answering system for the entire company. That’s right – this business didn’t publish a local number anywhere. And incredibly, this automated system did not offer an option to connect to any local branch or person. I’m not making this up!

Lesson 1: Don’t create barriers to customers. Even if you think you don’t have barriers, look anyway, because you might. Ask employees and customers to help you find them.

Undaunted, I finally acquired the local number (yes, they had one), but the person who answered said my friend, who was in sales, had been laid off. It turns out that this publicly-traded corporation was losing money, so in order for the CEO to impress Wall Street analysts, who influence the stock price, almost 2,000 employees across the company were told to hit the bricks.

Never mind how valuable these employees were or if those cuts would hurt the company’s long-term performance; the quickest way to increase profits was to cut payroll.

Lesson 2: Performance goals are important for planning, but customers don’t always buy on your schedule. Don’t let short-term expense pressures cost you sales, and worse – long-term customer relationships.

I learned that my friend had been a top producer, but since he was the last one hired he was the first to go. He’s no longer a payroll drain on his former employer, but one of their competitors quickly snapped up this winner.

Lesson 3: In the 21st century, seniority doesn’t trump performance.

So what if this big business CEO had simply installed a phone system that made sure customers could connect to his local offices? The answer is that my friend and several hundred others may not have been fired.

And who knows? By simply eliminating one customer barrier, this company might have needed to hire more employees to handle all of the business that went elsewhere.

Lesson 4: How you run your business – including people, systems, technology and policies – is not more important than the ever-evolving expectations of prospects and customers.

By the way, that big business that taught us these valuable lessons is no longer in business.

Think you don’t have customer barriers? Neither did that big business CEO.

Posted in: Storytelling , Tagged: age of the customer, business, Jim Blasingame, small business, storytelling

Create online customer communities for your small business

May 22, 2014 1:00 pm , admin

A “craze” is something that takes popular culture by storm. A “fad” is a craze that doesn’t last. Social media is currently a craze, but it’s not a fad. And the question is not whether this craze will last, but rather, what will it look like over time and why should a small business care? Consequently, let’s establish a few “social media” points.

Strictly speaking, “social media” is the technology that makes online community building possible, not the community itself. It allows for the creation of and service to online communities, where dialogue and interaction among community founders and members are possible. Ultimately, the term “social media” in a business application should become the more accurate term, “online customer communities.”

Photo courtesy of MySocialAgency.com

In defining community, Webster uses words like association, fellowship, like-mindedness and shared interests. When building online customer communities, we should remember these words. Every small business should create online customer communities, of which there are two primary examples:

1. A company’s profile pages on sites like Facebook, Twitter, etc. Your company leverages these companies’ platforms. These sites are free but have limited flexibility.

2. Communities founded and hosted by your company, oriented around relationships with customers and prospects. An online community is established when customers subscribe to one or more of your channel offerings in order to receive your information.

A channel is a syndication tool or method of content delivery and service to a community. For example, real simple syndication (RSS), a blog, an email newsletter (ezine), a text blast and Twitter are channel tool examples, through which businesses and their communities exchange information.

Merely having a website isn’t practicing community building any more than owning a piano makes you a musician. But a website can become a platform from which you launch and serve online communities.

There is one critically important thing for a founding company to understand about both of the online customer community types: the company cannot control community behavior. Members – customers and prospects – control the community. A founding company can only create the community and influence it by establishing community values, then serving it via the channels and information it offers, which are requested by members.

Always remember: Customers control online communities, not companies.

Posted in: Age of the Customer, Customer Care, Online Content, Social Media , Tagged: business, business communities, customer care, customer communities, Jim Blasingame, small business, social media

Blasingame’s new law of customer relevance

May 21, 2014 1:00 pm , admin

When you take a photograph, the resulting product is two-dimensional: tall, wide, and flat. But in most cases, you want the photo to actually show depth, where images in the foreground and background are all in focus.

In photographic terms, the range of focus front to back is called depth of field. The way to expand depth of field so more of the subjects in the photo are in focus is to add light. Light creates depth of field.

Photo courtesy of Business2Community.com

If you were given a photo of people who were the most critical to your success, you’d easily recognize your customers in the foreground in perfect focus. But as you look deeper into the photo you’d notice the images behind that first row increasingly drop out of focus with each receding row. The reason is because for most of the history of the marketplace, businesses have gotten away with having a very narrow customer depth of field.

When the coin of the realm was to be competitive, that meant you spent all your time thinking about how to serve the person in the foreground, the first row of your business world: your customers. But as I’ve revealed in the past, being competitive has been trumped by being relevant. And in The Age of the Customer, perhaps the most important component of being relevant to business customers is helping them serve the most important person in their photo: their customers.

Let me say that again with Blasingame’s New Law of Customer Relevance:

If you want to have customers for life, help your customers help their customers.

The way to accomplish this is to increase the depth of field of your customer photo. Light up the view beyond the first row of customers so that the second row is completely in focus. This three-step process works every time:

Identify the customer of your customer.
Find out what your customer needs to do to become relevant to their customer.
Whatever the answer to #2 is, help your customer do that.

Executing this approach is how you acquire customers you almost can’t run off. Because when you help your customers help their customers, they know you’re doing more than just delivering stuff; you’ve become part of their team – integrated and committed, like a true stakeholder.

And if you want to pull off the customer relevance hat trick, light up the third row of your businesses photo: Help your customers help their customers help their customers.

I’ve done it – it’s a beautiful thing.

Achieve maximum relevance with customers by helping them serve their customers.

Posted in: Age of the Customer, Customer Care, Moment of Relevance , Tagged: age of the customer, business, customer care, customer communities, Jim Blasingame, moment of relevance, small business

The Age of the Customer®, Part 1: Can social media be dangerous?

May 14, 2014 11:04 am , admin

Infographic courtesy of Digital Sherpa

Can social media actually be dangerous to your small business? Absolutely.

“Blasphemy!” you cry. “Heretic!” you say.

Guilty as charged. Remember, Martin Luther was a heretic with a blasphemous message. Today’s heretic might be tomorrow’s prophet.

Being successful with any of the social media communities is as easy as falling off of a log – for individuals; but for small businesses – not so much.

The goals of these two groups are very different: Individuals use social media primarily to connect and share. Businesses participate in social media communities to pursue a marketing strategy in these target-rich environments.

For professional services providers, like consultants, trainers, writers or any venture that sells information and ideas, social media is pretty intuitive, completely logical and often highly effective. But many classicMain Street small businesses, like a restaurant, dry cleaners, contractor, etc., often struggle to create an effective social media strategy.

Unfortunately, some business owners, especially start-ups, get caught up in the social media whirlwind and, since it’s all the rage, actually believe that spending time “connecting” online will cause sales dollars to roll in. This is where the danger lies because social media activity can become a thief that steals time from effective marketing practices. Effective means those strategies that are known to result in sales.

Even so, social media, with all the attendant sites and applications, may be a craze, but it isn’t a fad. It is real, and it will last. And just like the evolution of websites, in time businesses will figure our how to use social media as an effective tool. But for the time being, some businesses have figured it out, while many are still uncertain about how to produce a social media return on investment.

In order to actually have a social media strategy that isn’t dangerous, practice both/and rather than either/or. Continue to execute your traditional marketing strategy, while simultaneously getting involved in and learning about the 21st century social media universe.

Get a Facebook page and use it, but don’t live there. Acquire a Twitter and do some following, but don’t get sucked into the time drain. Link up on LinkedIn, but don’t forget to unlink.

Allow me to demonstrate that I’m an equal opportunity heretic: As obnoxious as it may be today, social media will increasingly become a significant element of any successful small business marketing strategy.

Write this on a rock… Use social media like any other business tool — prudently.