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The Market Has Changed -
Have you?
Twenty years as an owner of an advertising
and marketing company has given me something of a unique
perspective on business for a couple of reasons. The
primary of course is longevity, but the other is the range or
spectrum. As an ad agency, we would get involved in
marketing a variety of businesses, not just one and that does
give a person a broader view of things.
Twenty years ago a typical customer went to
their favorite store or service technician and either purchased
or ordered whatever they were looking for. Ten years ago,
I can remember our advertising and marketing customers beginning
to complain that their customers were now shopping 2 or 3
different competitors before making a buying decision.
During that time we, as a marketing company, made very drastic
changes to our sales technique. It’s a good thing that we
- and our long term clients - started changing then because the
market continued to change, but at an even faster rate.
Today the change has accelerated even
further. We’re being told that customers are often looking
at as many as 8 to 10 different suppliers or options, before
making that critical purchasing decision. A decade ago a
60 year old shopper did not even use computers, much less to
shop. Today there are two type of shoppers coming through
your front door. Those that have done research on the internet
and those that are prepared to tell their sales person that they
need to go home to do some research on the internet. And
notice I said research, since not every successful internet
marketer has a shopping cart to take orders on their site.
But they still do a lot of selling on the net, even if they
don’t take orders.
No doubt in this last part of 2008 the
national economic situation has solidified that position even
more. Clearly people are doing more research then ever
before, especially when doing the research takes no more than
sitting down at the computer for a few minutes.
If your change in selling technique has not
been gradually keeping up with the changing market, you are
probably feeling more financial stress today than in earlier
economically challenged times. The reality of the
situation is simple: While the business of sales has not changed
- the clients have. What I mean is that good sales people
lose nine out of 10 times on fresh walk-in traffic while poor
sales people lose 19 times out of 20, if you keep accurate logs.
This represents a 5 to 10 percent closing ratio. So here’s
the bottom line in two parts:
1) With fewer clients coming through the
front door, we need to be better prepared to bring our "A" game.
The good news is that with better-educated clients who have done
their homework, we have seen higher closing ratios than in
previous years. This is the equalizer for a tough market.
Just by the numbers alone, if a sales person closes one more
client out of their last 10 or 20 they have doubled their sales.
2) Listen to what your sales people are
telling you, or if you are a sole-proprietor, listen to what
your customers are really saying. Ask yourself, "Have I
really given my sales people (or myself) all the tools necessary
to compete in this market?"
Remember you still sell a product that people
want and need, but they do not have to buy from you. And
here is the reality of what we are seeing, price isn’t always
the great decider. Far too often people are looking for
value for the money spent, not necessarily the cheapest price.
If you have been reading the financial news then you know that
Wal-Mart has seen a significant increase in business during this
recession, as has McDonald’s dollar meals. But so has many
of the high end businesses. Upscale restaurants, jewelry stores,
custom clothing have all seen steady business as well. And
while it may be true that 7% of the population is out of work,
remember that means that 93% is still working and any marketer
worth his salt should be able to make a living with 93% of the
population still making a living.
The old adage of believing that if the
clients ‘loves the product,’ that you will always be able to
make a deal will land you quickly in bankruptcy court.
Outdated techniques just won’t work in these times. It is
critical that you educate your consumer on the benefits of doing
business with you. Remember that benefits - not features - sells
product and services. Always has, always will. |
