Embrace Your Competition: A Critical Success Factor

A client was recently the target of negative advertising by one of his competitors. The two-page ad depicted a cartoon image of a shark in business attire wearing a Rolex watch with the caption “Some Suppliers need a Vice President of Service because they depend on Parts and Service Dollars…”  The second page described how the advertisers’ product engineers are measured on customers use of their parts and services including a 5-year warranty,

From my perspective, these types of claims are troubling for several reasons:

  1. These type of advertisements “trash the competition”.   Sales and marketing professionals understand that going negative is not good for business.  Most manufacturers would not use this approach when it comes to selling their equipment in their primary market. Yet some believe anything is fair game in the Aftermarket.
  2. It demonstrates negativity on the advertiser’s part with respect to the role and value of service to the customer.  Their claim overlooks the importance of service to KPIs like First Time Fix rate or Customer Satisfaction.  This implies that service is not necessarily needed and not strategic to the customer or the manufacturer.  This is just flat out misleading.

I have also seen negative advertisements and claims made against Third Party Maintainers (TPMs) and generic parts manufacturers, and I don’t like it either.  Trashing the competition is just wrong.  The quality and reliability of products and services from these third party suppliers can be just as good or better as those form the OEM.   Furthermore, many OEMs also market and sell 3rd party services of their own.

The bigger issue is not about whether OEMs are better than TPMs, or if genuine parts are better than generic, or even if creating a VP of Service and/or operating service as a profit center is good for business.  Rather, the issue is competition is good for both business and in the Aftermarket for several reasons:

  • Legitimizes the market– Markets are defined by the presence of competition. To win business, competitors must actively market their products and services. As a result, customers are aware of options available to them.
  • Creates choice– Competition offers customers the freedom of choice. The theories of capitalism and free trade are built on this basic premise.
  • Improves quality & efficiency– Competition in the Aftermarket forces third parties and OEMs to continue to find ways of improving the quality of products and services offered while at the same time finding ways to cut costs and improve efficiency.   In other words, competition raises the bar and results in better prices for customers.
  • Leads to innovation– In addition to raising quality and improving costs, competition drives service providers to become innovative. Without competition, it is hard to know whether service providers would focus on finding ways to add value. Would service providers be just as compelled to invest in new systems and technology like SaaS, Mobility, and IoT if not for the impact that competition has on innovation?
  • Leads to greater cooperation– OEMs have the choice to subcontract service to TPMs/ISOs. This helps them improve their cost structure, service delivery and obtain capabilities that they may not otherwise be able to build themselves. Under this scenario, OEMs and ISOs can gain knowledge from each other and use this towards driving innovation, reducing costs, and improving quality

In summary, competition provides benefits for the customers, OEMs and third-party providers. Technology vendors can also benefit from competition in the Aftermarket.  Based on my perspective, if a company resorts to trashing their competition, they are probably troubled in some way.  On the other hand, if a company is concerned about their competition, they should probably focus within their organization to find ways to leverage forces to their strategic advantage and develop a higher value proposition.

Post your comments or questions below!  

What Smarketing Looks Like

(And Why Your Company Needs to Adopt It)

This article is reposted with permission from Tenfold Blog (www.tenfold.com).

Smarketing is a new buzz word in the world of sales and marketing. Actually, it’s a contraction of sales & marketing. Hubspot defines smarketing as: “…the alignment between your sales and marketing teams created through frequent and direct communication between the two.”

Since a company’s end goal is always the same, it makes perfect sense to integrate sales and marketing processes in the pursuit of those end goals. Establishing this common ground makes the process of acquiring leads and converting them a lot smoother. It also makes more sense for a consumer to undergo a more cohesive experience. A disjointed experience between sales and marketing can lead to consumer confusion and lost opportunities. A consumer should never feel like they’re being tossed around.

Instead of treating sales and marketing teams like two competing units, a company that takes a cooperative approach makes them all part of the same team. Bringing them together as allies will positively impact a company’s bottom line as well. In fact, some companies that have joined their sales and marketing forces reported a 20% revenue growth.

So, what does smarketing look like within a company?

It starts with a framework

First, a company’s sales and marketing teams need to be on the same page regarding their target market and what they consider a warm lead. They should also know what their respective objectives are. How many leads should marketing be bringing in? How fast should sales follow up with a lead? How many times should they follow up? Making sure everyone is aligned makes the process so much more straightforward. It’s like a team playing together on a  soccer field; the infield and the outfield both know when and where to send the ball. A clear sales and marketing strategy is vital.

Using common terminology

In addition to functioning within the same framework, a company’s sales and marketing alignment depends on using common terminology for the entire funnel process. Having set terms and terminology will not only make the discourse between departments clearer, it will also make the process more streamlined for the customer. If sales is using one set of terminology and marketing is using another, they risk sending mixed messages to the consumer.

Frequent sales and marketing meetings

Saying that a company’s sales and marketing teams work together sounds nice in theory, but it must also be put into practice. Regular meetings provide the physical coming together of the sales and marketing teams and focusing on a common purpose. Sales and marketing management should also work closely together to ensure objectives are being met or to establish those objectives.

The purpose of the meetings is to track their collective progress and hone the smarketing process. Bringing ideas, resources, and suggestions together in meetings can bolster the entire process. Bringing the teams together face-to-face as allies reduces any antagonism, replacing it with the constructive opportunity to build on each other’s success instead.

Create boundaries

Even though the purpose of smarketing is to bring the sales and marketing teams together, there must still be delineation between their respective responsibilities. Clear boundaries must be set between where marketing ends and sales begins so intrusion can be avoided. After all, sales and marketing are two different specialties that require different skills. Employees must know what their particular roles are in a company and how they fit together to keep friction to a minimum.

Closed loop reporting

Anyone from sales or marketing should be able to tell where a particular lead is in the sales and marketing process. They should never be left wondering: “Hey whatever happened to that guy I met at that seminar in June?” They should be able to open up a program and see exactly where that guy is in the buying process. Business 2 Community recommends using both marketing automation software and CRM software to provide data access for both teams and build transparency.

Closed-loop reporting also offers more opportunities for two-way discussion and input between sales and marketing teams. They can check in with each other to enhance the process or give each other valuable customer insight. Aligning sales and marketing processes makes both sides feel they’re working towards a collective goal.

The moral?

Creating a sales-marketing alignment plan can boost a company’s bottom line by creating an opportunity to build each other up rather than tear each other down. Environments, where the sales and marketing teams are competitive rivals, don’t make much sense when the main objective is the same.

To create sales and marketing alignment, a company needs to improve the relationship and conversation between the departments. Smarketing puts sales and marketing on the same team for the benefit of the company as a whole. Now that’s smart marketing!

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Sales and The Field Service Engineer

Questions from Kris Oldland, Publisher of Field Service News

The following is a compilation of a 4 part series from Field Service News called ‘The Big Discussion’ All four questions with the answers from Michael Blumberg appear here to give you a clear picture on his views of the role of Field Service Engineers in sales to existing customers.

“In the Big Discussion we will take one topic, bring together three leading experts on that topic and put four key questions to them to help us better understand its potential impact on the field service sector…”

It is often said service technicians are the greatest salesmen – what are your views on this?

Service technicians bring a perspective and outlook that makes them great at sales in certain situations. For example, where the sale solves a critical problem for the customer.

Basically, customers appreciate the fact that service technicians are problem solvers and place the customer’s need first. As a result, the service technician has trust and credibility with the customer.

In turn, the customer is highly likely to act on the service technician’s recommendations. Sometimes, the only way a technician can solve the customer’s problem is by having them buy something new like a spare part, new piece of equipment, or value-added service offering.

In these situations, the sale is not viewed as a sale at all by the customer but merely as an attempt by the technician to solve the customer’s problem

Is there a difference between selling service and selling products?

Yes, there is an enormous difference.

Selling products requires the salesperson to focus on the form, fit, and function of the product and how it meets the customer’s needs. Selling products is about selling the tangible.

Selling services requires the salesperson to focus on how the service can help the customer solve a problem, improve their situation, or achieve a better outcome.

More importantly, it is about selling the intangible.

Is incentivising service technicians to “sell” opening up new revenue streams or putting their “trusted advisor” status at risk?

Technicians represent a ready and available channel for generating incremental service revenues.

After all, they are at the customer site almost every day.

However, service technicians may become over-zealous or pushy about selling, and jeopardize their “trusted advice” status, if they lack proper sales training or if their performance measurement system and company culture are too focused on sales.

What impact does the rising uptake in outcome based services have on the relationship between service and sales?

Selling outcome based services requires greater collaboration and communication between service and sales than ever before. Service needs to understand and support the solution that the sales force crafts for the customer.

The sales force needs to have a clear understanding of the capabilities of the service team to craft the right solution.

Basically, service and sales must work as a team. In addition, the service organization must be proficient at sales so they can add-on additional services to better meet outcomes as these opportunities present themselves.

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Why The Customer Experience Should Be At The Heart Of Marketing and Selling Services

Consumers now reside in a digital world where instant gratification is the new currency. The rise of Spotify, Netflix, Amazon Prime Now and Uber ensures they can avoid any pain points and get what they want and when they want it in a new on demand economy.

However, the ‘we want it now’ consumer continues to evolve and now expects a personalized experience too. If online services know what their favorite movies, TV shows and music they like, surely retailers will know what they like too.

Tech savvy users are looking for businesses to lead the way with new technology that continues to treat them as unique individuals. A generic marketing e-mail with their name pasted at the top in a different font is no longer going to cut it.

The evolution of the customer experience has even given birth to the phrase Martech which is the blending of marketing and technology. Industries across multiple industries are all facing the same problem as the digital transformation of everything gathers pace.

Keeping up with all the latest trends across the digital landscape is no longer an option it should be compulsory for anyone serious about the future of their business. The good news is that you are not alone and the fact that 76% of field service providers were reportedly struggling to achieve revenue growth should be the only wake-up call that you need to take this seriously.

However, there are numerous field service winners here too. For example, in 2017 there are many organizations providing seamless digital experiences and delivering faster resolution times. It is often said that technology works best when it brings together and here is a selection of great examples.

The Value of Improving the Customer Journey

Personalization is much more than just another industry buzzword but a reaction to the demand driven by consumers. Providing the right experience at the right time is an art that many are still learning to master. But, the ability to increase 15% percent of revenue and lower the cost of serving customers by 20% is a language that every member of the boardroom will understand.

Do Not Underestimate the Importance of Customer Service

According to Microsoft, an incredible 97% of consumers advised customer service is critical to their choice or loyalty to a brand. But it’s also crucial to remember how this is across self-service, social, phone, mobile and a plethora of devices.

The divide between offline and online is disappearing. No matter what device we have at hand, wherever we are located and if we are using our keyboard, touchscreen or even voice, the experience should be the same.

Poor Customer Service Will Be Punished

It is well understood that it costs businesses more to acquire a new customer than it does to keep an existing one. Savvy consumers will happily shop around for the best deal. Ironically many companies seem to treat their current clients with contempt arrogantly and assume they will stay with them regardless.

The reality here in 2017 is that 64% of consumers have switched providers in at least one industry due to poor customer service according to Accenture. We no longer suffer fools gladly, and a lack of patience or frustration will ensure most consumers will switch providers after only one negative experience.

In this digital age, loyalty must now be earned rather than taken for granted. The only question that remains is what are you doing about it?

Time Is Money

An Amazon Prime account makes one-click ordering and delivery within 2 hours a reality. Maybe, we shouldn’t be too surprised how our time is becoming increasingly valuable. Forrester recently advised that 73% of consumers will happily admit that their time is the most important factor where businesses need to focus.

Pain points such as long-winded automated phone menus, cumbersome online chats or waiting around between 9 am and 6 pm for somebody to call you will no longer be tolerated. Organizations need to manage the expectations of their customers and remove friction to offer a truly simplified service in a timely manner.

Make Way for The Internet of Things (IoT)

With 50 Billion internet-connected devices by 2020, the time to take IoT seriously is right now. Consumers do not care about your product roadmaps; they now expect the same experience with any of their devices.

There is already a long line of competitors offering similar services. Failing to keep up will leave your brand looking like a tired Sears or J. C. Penney store that failed to keep up with the speed of hyper change across the digital landscape.

OVERALL

Advances in machine learning, deep learning, and artificial intelligence have already made real-time personalization a reality. A dramatic rise in expectation levels means that users of all ages now demand the same experiences across multiple platforms.

Mainstream audiences are looking for businesses to lead the way and provide the wow factor through technology based solutions. However, sometimes, they just want greater digital interaction and to be treated as a unique individual from a fellow human being.

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Should Technicians Sell to Your Customers?

I attended a very interesting session at WBR’s Field Service USA 2017 Conference a few weeks ago.  It was billed as an “Oxford Style Debate: Should Technicians Sell to Your Customers?”  The debate about whether technicians should sell has been around for decades.  I know that has been a hot topic of discussion since I’ve been in the industry and I started working as a consultant in 1985.   While the topic has been discussed in countless articles and conference presentations, this was the first time I’ve heard it presented as an open debate.  I found it refreshing because it gave conference participants the opportunity to ask questions and challenge conventional wisdom which helps in formulating one’s position on a subject.

Arguing for technicians as sales people were Tom Vorin, VP of Customer Services, ISCO International and Ron Zielinski, VP, Global Customer Service Coherent.    Arguing against Technicians as salespeople were Andrew Kovach, VP US Lifecycle Services, ABB and Chris Westlake, VP & GM of Services & Electrical Businesses, RK.  Each side did an excellent job in presenting their case.

The argument that Vorin and Zielinski presented was that companies who have technicians sell create additional value not only for their company but for their customers.  In other words, their customers appreciate the fact that their technicians can identify new products and services that help improve their situation and/or business.  Since they already view their technicians as trusted advisors, customers are more likely to listen to technicians’ suggestions than if a sales person approached them directly about buying more products or services.  Basically, technicians are perceived to be objective when advising customers of their options and thus carry an air of credibility around themselves.

Kovach and Westlake’s argument against technicians as sales people centered around three issues. First, technicians are not comfortable in a sales role. If they like to sell, then they would have pursed a career as a sale person.  Second, putting technicians in a sales role can hurt the brand and jeopardize the level of trust that already exists.  After all, customers are not stupid and will quickly catch-on that they are being sold too.  Third, and most importantly, technicians must stay focused on their job of solving problems and keeping customers happy.   Anything else is a distraction and disruptive to the customer relationship.

Of course, each side had an opportunity for rebuttal and the audience had a chance to express their opinion and vote on which position/argument they favored most. The vote occurred before and after the debate.   Although a larger percentage of the audience were in favor of technicians selling before the debate occurred, Kovach and Westlake changed several people’s opinions about whether technicians should sell.  Ironically, after the debate Kovach and Westlake revealed it was staged, that they were asked by the conference organizers to take the against position, and that they do involve their technicians in the sales process.  Basically, they have them identify opportunities and refer them to the sales force.  In describing the sales role of technicians, Vorin and Zielinksi also implied that their technicians work in a similar capacity.    Both sides agreed that the “debate” was all in fun and it provided a fantastic opportunity to present ideas on the best way to involve technicians in the sales process.

In case you are wondering, I agree that technicians should not be selling to customers.   However, neither side of the debate was really arguing that technicians should sell.  They were basically suggesting that technicians can play a role in the sales process by uncovering customer pain points, identifying solutions, and referring business opportunities to the sales force.    Quite frankly, unless, a technician has a sales quota, can overcome objections, and close the sale they are not actually sales people.  I also think that if their compensation is not based in part on some form of sales incentive or commission for closing business then they will never be fully committed to sales.

However, I would not argue for placing technicians in a direct sales role as it could be disruptive or damaging to business.  On the other hand, any company that is passionate about growing their top line revenue, increasing customer satisfaction, and improving their market share needs to adopt a “sales” oriented approach where everyone in the company plays a role in the sales process.  That’s why I agree with the proposition that technicians should be play an important role in uncovering customer pain points, identifying solutions, and referring business opportunities to the sales force.   Bear in mind, the systems, performance metrics and processes need to be in place, and the proper training and coaching needs to be provided if they are going to realize success in this role.

I’d love to read your perspective on this subjective. Do you think technicians should sell to customers?  If yes, please share your experience in the comments section of this post.   Let me know what works and doesn’t work.  If you want some advice or suggestions on how to make it work then schedule a free consultation today.

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Sell More Service By Providing More Value

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Over the last month I’ve spoken to over two dozen Field Service Executives about challenges they are facing when it comes to generating additional service revenue for their companies.   I observed several common themes.  First, every executive I interviewed indicated that they would like to sell more service contracts.  However, they were experiencing resistance from customers as evidenced by low contract attachment rates.   Second, these executives were concerned about whether or not their prices were too high or if their customers really needed service contracts.  After all, this was the feedback they were receiving from their sales teams and even first hand from the customers that had spoken to directly.

This is an all too familiar problem for me.  I’ve encountered this for the last twenty five years as a management consultant. It is also a challenge that many field service executives face.  Seldom is price the real issue why companies struggle to sell service contracts.  In market research studies that I have completed for clients in a wide array of technology service industries, I have found that price is often low on the list of criteria that end-users consider when selecting and evaluating service providers.  Indeed, criteria such as quality of service, knowledge and skill of service personnel, breadth of service offering, and vendor’s knowledge of their business are perceived by customers to have higher importance than price alone.

The truth is “your price is too high” will always be an objection that customers provide when they cannot justify the purchase of a product or service.  In other words, they have no way of logically defending the value of the service being purchased.  Stated another way; they are not able to differentiate the benefits of service contracts from time and materials service.  The problem is that Field Service Organizations (FSOs) often attempt to sell service contracts without providing reasons why a contract is better than simply paying for service on a time and materials basis.   In order for end-customers to rationalize their purchase of service contracts, FSOs must be able to demonstrate the contrast between service contracts and time and material/pay as you go service.

In order to achieve this outcome, FSOs must be able to articulate the value of service contracts to customers as well as to their own sales people. They need to describe what’s included in a service contract that is not included in time & materials. This requires they do an effective job in defining the service contract and answering the question “What’s in it for me (the customer)?”  If the only difference between a service contract and time & materials is that the customer is able to prepay for service, then there is no value and no contrast.  However, if the service contract provides a preferred level of service (e.g., 4 hour response time, 7 by 24 hour coverage, parts, etc.) or preferred price structure then the customer is presented with some real value and contrast.

Ultimately, FSOs must be able to help customers defend their purchase of service contracts.   They do this by offering more value in a service contract than the customer could possibly receive through time and materials services.  Another way that FSOs can help customers defend their purchase is by letting their customers know why they offer service contracts in the first place, and why they prefer customer purchase them.   Usually, service contracts help FSOs do a better job at anticipating and managing service requests. It helps the FSO forecast and plan resources better.  As a result, service contracts benefit the customer which is something customers will understand and appreciate.

If your company is facing struggles when it comes to selling service contracts then perhaps it is time for a marketing tune-up.  A tune-up will identify where there are challenges in your sales and marketing process and more importantly, explain how to overcome them.  If you are interested in learning more, then contact me to schedule a free strategy session where I’ll describe what’s involved in a marketing tune-up, help you determine if it is something you need, and explain how you can get started. Isn’t it about time you stop leaving money on the table and start winning more business.

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The Most Empowering Question You Can Ask

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Have you ever felt stuck when it comes to growing your service business? For example, you feel that things are stagnant or perhaps just not going as well as you’d like.  If your answer is yes, then chances are that you have been doing the same thing over and over again and expecting a different outcome.  That’s called insanity!!

You know you need to make a change but you are not exactly sure how.

All of us in business have at one time or another felt this way.  Most people in this situation ask themselves…”What should I do?”  “What should I do to get better results?”   The truth is this is a poor question to ask.  It is a poor question to ask because it is a disempowering question.

Disempowering questions seldom give us new insights or perspectives that lead to real change.  This is because our mind always tries to find a way of answering our questions. When you ask yourself “What should I do to increase service sales?” you come up with a million different answers.  One answer may be advertising, so you spend money on advertising only to find that it doesn’t help. You may again ask yourself, what should I do to increase sales, and your mind answers…”invest in Search Engine Optimization (SEO)”.  You invest in SEO, yet still you observe little or no improvement.

You continue to ask yourself the same question over and over again and get answers like do more networking, do thought leadership marketing, do price discounts . . . but still no improvement.  Soon you find yourself running around in circles doing different things. You keep doing more and more different things in hopes of getting better results but nothing happens. That’s crazy!  If you keep this up, soon you are likely to hear a small voice inside your head say “Woe is me, what should I do, I don’t know what to do, poor me!”

Poor you is right!

Can you see why asking yourself “What I can do to increase sales?” is a disempowering question?  Asking this type of question creates a vicious cycle that you have to break before it breaks you.  You can break it by learning how to ask empowering questions.  The most empowering question you need to ask and answer if you are trying to grow your service business is, “What value does my company bring to the marketplace?” In other words, what is you value proposition?

The truth is you can’t improve your sales until you are clear about the value you provide. Without a clear value proposition, spending money on advertising, incentives, networking, and other forms of marketing is throwing good money after bad.

In order to define your value proposition you have to answer 3 additional questions:

  1. Whom do I serve?
  2. What problem do I help them solve?
  3. What results do I help them achieve?

These answers provide input to the value proposition formula, which goes something like this…l help X, solve Y, so that Z. Here, X is the answer to the question, whom do I serve; Y identifies what problem you help them solve; and Z clarifies the results you help them achieve.

For example, my value proposition is, I help service managers and executives gain access to new perspectives, strategies, and insights about service management so that they can increase sales, boost profits, and delight their customers.

Once you determine you value proposition and consistently apply it you’ll achieve better results:

  • You’ll gain clarity about whom you help
  • You’ll be more certain about how you help them
  • You’ll be more effective in finding more people like them
  • You’ll find yourself working with people who really understand and appreciate the value you provide them
  • You’ll close more sales

Remember, if you are feeling stuck in your business or career, and nothing seems to be working, you are probably asking yourself disempowering questions. Break the cycle of despair by asking empowering questions, instead!

Now it’s your turn.  Complete the value proposition formula (I help X, solve Y, so that Z) and share it with us in the Comments section.  We’d love to learn what you’ve developed and how you think it has helped or will help you company get more business.  If you need ideas about what to do now that you’ve developed your value proposition, schedule a free consultation today.

The Fine Art of Selling Services

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Managing a Field Service Organization (FSO) as a profit center has become a strategic imperative for many companies.  In order to carry out this mission, field service executives must continually focus on top-line revenue growth.  Yet, research indicates that nearly three-quarters of FSOs are struggling to achieve this objective. My personal observation is that they haven’t mastered the fine art of service sales and marketing.  At issue, field service executives often confuse marketing with selling, and selling with marketing.   While there is some overlap, the two functions are significantly different.

Marketing is Not Selling

Marketing is a set of processes, activities, and/or instructions a company utilizes to create value and customer demand for the products and services it offers.  Basically, this is about turning a need into a want through promotional activities.  According to Jon Janstch, of Duct Tape Marketing fame, marketing is getting someone who has a need to know, like and trust you.

In contrast, selling involves the fine art of persuasion.  It requires that the salesperson utilize a planned, personalized communication to influence a customer’s purchase decision.  Not only must a salesperson uncover a customer’s needs and wants, they must persuade the customer as to the merits of buying their product or service.

Telling is Not Selling

A common sales strategy that FSOs utilize is to involve field service technicians and managers in the sales process. The conventional wisdom is that since these people deal with customers every day, they are perceived as individuals the customer can trust for advice. As a result, they are in the best position to advise the customer on additional products and services they may need to purchase from the company.

This strategy is based on the premise that the field service technician/manager functions as a brand ambassador. Their focus is on building a relationship by solving problems, uncovering new opportunities, and telling the customer how their company can help.  This seems more like marketing than selling.  Indeed, the problem with this approach is that it often results in free consulting. In essence, the customers may not buy but instead rely on information their brand ambassador shared with them and seek competitive bids, or simply choose to do nothing at all.  It also assumes that that service salesperson can spot opportunities and effectively open up a sales dialogue with their customer.

A Structured Sales Process

Field-service leaders can avoid free consulting, increase their prospects, and improve their team’s sales closing rate by implementing a structured sales process and training their service-sales people on this process.  The sales process consists of three basic steps:

  1. Relationship Building: There are two critical aspects here. The first is bonding and rapport. This is how a salesperson gets a customer to know, like, and trust them.   A sale cannot be made without bonding and rapport.   The second aspect is known as an upfront agreement. This requires mutual consent between the salesperson and customer that each is open and willing to participate in a sales conversation. It also requires that when asked about moving to the next stage of the sales process, the prospect can provide a yes or no answer.  Upfront agreements help salespeople know where they are in a sales process with a customer and keep the sales process from stalling or falling apart.
  1. Qualifying: Sales processes may break down if the salesperson hasn’t done a good job of qualifying the prospect.  Qualification is more than just determining if the client has a need and budget.  It’s really about understanding their pain (i.e. problems).  The truth is that people don’t buy just because they like something; they buy to alleviate a pain they are currently experiencing or will experience if they don’t own the product or service. The greater the pain, the more likely they will buy.  It’s the job of the salesperson to uncover this pain.  Once done, the salesperson can discuss the budget that is required to resolve this pain.  In other words, the “pain conversation” puts the budget discussion into context for the customer.  Of course, understanding how decisions are made within customers’ organizations is also part of the qualifying process.
  1. Closing:  The closing step involves two parts, fulfillment and post sell.  Once you understand the customer’s pain, budget, and decision process then you can have a conversation about how your service will solve their pain, what the investment will be, and what it will be like to work with you after they accept your proposal.  That’s basically what fulfillment is about.  Post sell means confirming they are happy with the decision they’ve made.

Iterative Process

It is important to understand that the sale process may involve multiple, iterative conversations. This is because very few products and services can be sold in the first conversation.  The failure of the salesperson to effectively address one step of the process may impact their ability to address the next stage and thus jeopardize the sale.   If this happens, the salesperson must go back and repeat the sales process from where it failed.  This may mean they have to review or revisit previous steps with the customer to get the sale back on track.   It’s also important that understand that “speed kills” when it comes to the sales process. In other words, rush the sales process and you may lose a customer.

Think about your last conversation with a salesperson.  If you purchased from them, chances are they effectively addressed every stage in the sales process.  If not, it was probably because the sales process broke down.  Also, evaluate your own company’s selling process and closing rate.  Does your company follow a structured sales process or are service salespeople simply winging it?   If you follow a process like the one outlined here, do you know which steps are working well and which require improvement? If you’d like to learn more, schedule your free service sales strategy session today.

Make Way for a New Marketing Power:

Service Marketing

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In this week’s blog post, I am sharing an article that first appeared in Field Service Digital on July 15, 2016.  The article was written by Derek Korte, editor at Field Service Digital and a senior editor at Original9 Media.  

Thanks to technologies like the IoT, and enticed by the promise of more revenue and a cozier relationship with customers, traditional manufacturers are now getting in on the service game. It’s a shift that not only blurs the lines between manufacturing and service, but also how companies market those products and services.

Sure, tried-and-true product marketing strategies are still relevant, but service marketing is a different beast entirely, says Michael Blumberg, president of the Blumberg Advisory Group. Below, he explains service marketing’s growing importance — and why it’s so hard to do well.

Is service marketing now more important than product marketing?

It’s not that product marketing is less important, it’s that service marketing is becoming more important. There are several reasons why: First, many companies have made it a strategic priority to build and grow their service businesses. Second, they recognize that services can be sold independently from products and, in some cases, in lieu of products. Third, they recognize that service marketing is different from product marketing and a different approach is need. Fourth, they understand they have to step up their marketing game if they are going to generate more service business.

So products might sell themselves, but that’s not necessarily true with services?

That’s true. You can sell a product by showing the customer the great things it can do because it has cool features, such as the IoT and augmented reality. On the other hand, service is intangible.

There is nothing you can show or demonstrate to the customer before they buy it. Just because a product has certain features, doesn’t necessarily mean that they will buy the service and support that comes with it. This is different sale all together.

How do you convince customers to invest in an unfamiliar service — especially if they don’t immediately know why they need it?

You have to focus on the economic value to the customers of having (or not having) the service available when they need. When you understand that, you can start selling services around that value proposition. Companies that struggle with service marketing can’t explain this benefit to the customer. Instead, they talk about service as an insurance contract. That’s a very general term. It doesn’t tell them anything about how the service will be provided, when it will be provided, or what outcomes it will produce.

What are the biggest differences companies should consider when marketing services, rather than products?

In a product sale, you sell the customers on the form, fit, and function of the product:. You basically sell them reality: what it does, how it works, its dimensions, etc. When selling services, you also have to sell customers on perception: the outcome or defined level of service they can expect. Bear in mind, you also have to sell reality, which is also known as the actual capability to serve, by describing or showing all resources that make it possible to deliver that level of service.

Is it fair to say service marketing is a lot harder — and a lot more work — than product marketing?

It’s a lot harder for a couple of reasons. First, service is an afterthought for many companies. They think that because the customer owns the product, they’ll buy the services, too. That’s often not the case.

Secondly, you can’t market a service like you would a product. Marketers talk about the four principles or Ps of marketing — product, place, promotion and price. But those principles are product-oriented. They don’t work with services marketing. Why? Services are intangible, and it’s hard to market something that’s intangible. To market services, companies need a new mix — the Seven Principles.

Are new technologies changing how companies market their services?

Service technologies like IoT, Big Data, and even field service software enable companies to collect and analyze very granular data about service events, product usage, failure rates, etc.

This information enables them to offer very tailored and customized solutions to their customers in terms of service coverage, response time, pricing levels, etc. The technology also helps companies be more precise about who they market to, when they market to them, and what they market.

Any standout companies that are doing this well?

Siemens, GE, and Philips are doing a pretty good job in marketing their service. They’ve made service marketing a priority because they understand services’ strategic value to their bottom line. They have carefully designed their service portfolios and pricing strategies to meet customer needs and requirements.

Their service marketing and sales people are adept at articulating the economic value of their services, and they are properly trained and incentivized to sell those services. They are effectively leveraging technology to find new market opportunities and exploit existing ones.

Are you interested in growing your service business? Check out my online training course where you will learn strategies, tactics, and insights for Successful Service Marketing ™. As a starter, I’ve put together a brief video that describes the course content. You can access it here.

Got a question? Click here to schedule a free consultation

Excellent Advice About Leadership

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In this week’s blog I am sharing an article written by Suzen Leen. She is Head of Marketing at Kap Computer Solutions Pvt. Ltd.,AP, a pioneer in BULK SMS Solutions.If you are interested in writing a guest post for my blog, please check out my Guest Posting Guidelines

Following your instincts when it comes to leadership is a good thing to do, but you also must continue to learn and know what a good leader does. It goes both ways, and this article will help you figure out what it takes for you to be the leader that is required. Not only will you improve as a leader, but you will help other people.

Make sure to engage people as a leader. You must learn how to motivate, involve, and excite others. Inspire them to engage their passions, strengths, skills, and creativity in the tasks at hand. Do what you can to acknowledge and appreciate each person’s contributions and efforts. You should make them all feel like they did something to move the project forward.

Effective leaders are inspiring. You need to develop the ability to inspire those who work under you, motivating them to work toward a common goal. You can use public speaking to achieve this, but there are also videos, blogs, articles and other methods to convey your uplifting message to your audience.

Good leaders know how to nurture growth in other people. Take the time to support other people. You can do this by learning their strengths, work styles, and passions. Try encouraging them to seek new possibilities and challenges. Remember that every person has the ability to expand the potential of the company.

As a leader, you must have confidence. This will, in turn, instill confidence in your team. If your team sees you doubt yourself, they will begin to doubt you too. Always act deliberately and do not waver, but do not be afraid to change your mind. A good leader is flexible.

One of the most important aspects of any leader is the ability to create a sense of trust among their employees. Employees who trust their supervisor are willing to do more to help the company succeed than those who do not trust their supervisors. Always be truthful when dealing with employees.

Be sure to finish everything you start or you risk losing the respect of the people that work under you. Even if something seems particularly difficult, you should give it your all and see it through to the end. No one will look at you the same if you turn into a quitter.

Be a communicator. Communication is a major aspect of what makes great leadership. If you can’t communicate your goals and vision, then what is there for your employees to follow at all? If you have a tendency to “loan wolf” at work, break out of that habit and begin communicating with your teams.

You should also use Bulk SMS Marketing for instant results, so that you can communicate with thousands of people with a single click https://kapsystem.com can provide you the best Bulk SMS Marketing, even you can also use our API to use it anywhere in any software.

Are you interested in growing your service business? Check out my online training course where you will learn strategies, tactics, and insights for Successful Service Marketing ™. As a starter, I’ve put together a brief video that describes the course content. You can access it here.

I’d love to hear your feedback or answer any questions you may have.