The Process of Business Development

I love learning new and better ways to create client engagement.  When it comes to business development and sales, I have read countless books, watched videos galore and studied several “gurus” in the space.  I’ve been through professional training and I’ve also had great mentors.  What I’ve learned is that business development is not a mechanical process, despite what many programs teach.  This topic came to the forefront when I recently witnessed someone who had been in sales for many years trying to apply a strategy he learned through a book he read.  He was surprised it didn’t work, and chalked it up to the prospect not being interested.  After hearing him describe what happened, I think it’s that he lost them the minute he tried to execute a strategy designed to emphasize the scarcity of his offering.

Scarcity is an interesting subject, since it can be a catalyst in the sales process if the potential buyer really wants what you’re selling and they believe that they’re going to miss out if they don’t buy right then and there.  We’ve all experienced it in some way.  “There is only one left, and I can’t hold it for you, so if you want it…”  It can create a sense of urgency or possibly even fear.  It generally creates an emotional buying environment, which often leads to a sale.  And, in most cases there’s little negativity or buyer’s remorse if the scarcity is genuine (or the buyer never finds out that it wasn’t).  Hopefully you’re never using dishonesty when you talk to customers, since your integrity is everything in today’s world of viral reviews.

How did the process go wrong for the sales person mentioned above?  He had read about a systematic way of creating the perception of scarcity.  He was selling a service, and pushed the idea that his company could only support so many projects at a time and to fit them in, he’d have to get a commitment now.  As he described the details of the discussions and shared the customer dialogue, it became very clear that he pushed them away by being too mechanical.  He abandoned his normal customer centric approach for a step-by-step process.  Even when he was hearing clues that they were uncomfortable with his approach, he kept following the program.  Not only did he miss out on that sale, he probably will struggle to gain their trust on future ones.

Whether you’re in sales or you are in some other client facing role, it’s important to be yourself.  Being anything else is not only dishonest, it’s often going to appear very unnatural and obviously awkward.  Processes can help you learn to become better at engaging people or at relationship building, but only when you truly believe in those steps and you’ve adopted them as your own.  Just remember that business development isn’t mechanical.  It can be methodical, but if you become too process focused, you’ll experience your own form of “scarcity”, people who will return your phone calls.

Business Development Hotseat

During a recent interview about business development practices and how that fits into the ActusMR sales consulting offering, Paul Kirch, CEO of ActusMR discusses the importance of business plans and creating customer engagement. The interview was part of an ongoing series of interviews being conducted for the Greater New York chapter of the MRA by Jack Campisi of Qualvu.

ActusMR is known as the Business Health Specialists™ and we’re always looking for ways to help drive business health for our clients. Recently a good friend and client recently shared something powerful and I want to share it with you. It was a simple statement, yet it really resonated. He meant it to pertain specifically to sales, but I say it goes beyond that, applying to all areas of business. To put it in the proper context, I’ll relay the message with you as he did with me, “What’s the most important element that has to exist for someone to award you a project?” I’m going to adjust the question to represent my perspective and ask, “What is the most important element to any business transaction?”

The answer is simple. It drives long-term relationships, loyalty and credibility. Without it, you’re likely to struggle in business, and perhaps, life. It’s probably the hardest thing to earn and the easiest thing to destroy. It’s the secret sauce beyond our training program, The A-B-E’s of Selling™, where we teach people how to “Always Be Engaging” in the sales and business development process. It’s such an important word that many banks leverage it and all U.S. currency references its importance.

If you haven’t figured it out by now, it’s “trust.” If you don’t trust someone you’re doing business with, are you going to do business with them? If you don’t trust your employer or employee, how long will you be connected professionally? Trust in business is everything and it’s one of the easiest things to shatter. Cheating on a spouse, betraying a friend’s confidence, or getting caught in a lie are things that can permanently destroy someone’s trust in you. In business, you represent your company and your company’s actions represent you. If the actions of your company or your team cause you to lose credibility with a client, your level of trust may always be in question with those professionals. Also true is the fact that your actions can permanently destroy your company’s credibility in the eyes of that customer. It can be as simple as over promising and under delivering or neglecting to follow through on a commitment. Trust is easily damaged.

Earning trust in business requires honesty, good follow through, standing behind your commitments and often it requires time. If you’re trying to earn some one’s trust, patience is truly a virtue. Provide them testimonials or references and provide them whatever tools they need to feel you’re someone they can put faith in to do what you say you will. An agreement without trust is meaningless, so always strive to be seen as a person they can believe in. Let your name become synonymous with trust and YOU become the most important element in any business transaction. Talk about driving healthy business…

“Would you like fries with that?” is often the question many think of when they hear about a “franchise model” of business. McDonald’s is one of the most successful franchises in existence and they’ve proven they know how to create a repeatable business. Often each unit has the same design elements, seating types, menu items, staff uniforms, and the like. Whether you’re dining at a McDonald’s in Dallas, TX, Paris, France or even Beijing, China, you should notice a consistency in quality and service. Ray Kroc figured out early on if he could create a consistent model and he could duplicate every piece of that, then the customer experience would be the same at all of his restaurants.

There are many other examples of franchising that we could explore; however, McDonald’s has long been an example of a franchise that others have tried to model. You’re probably asking yourself what a franchise model has to do with traditional business. The book E-Myth Revisited discusses how every business should try and leverage a franchise model. After all, in a franchise, every employee is supposed to receive the same training, each position has its roles and steps clearly defined, ordering and project processes are consistent time and time again, and other efficiency measures are in place and clearly mapped out for ease of duplication. Ray Kroc wanted to be able to run his restaurants at peak performance without having to hire a bunch of expensive, highly educated staff members. While in many service businesses, experienced, highly educated staff is a must, the other elements of a franchise model can easily fit. By creating systems and structured processes, a company can run more efficiently, hire and train new staff more effectively, and create client expectations that can consistently be met.

Does your company ever struggle with new hires? Do you have methods to measure their performance in the first 90 days? Do you have consistent processes for them to follow? If someone leaves, is it a struggle to fill the void they left, or worse, do you know what holes their departure created? Do you know what initiatives they were working on and where those initiatives stand today? Often staffing is the first place where a franchise model makes the biggest impact. If you’re not creating consistent systems, training processes, measurement steps and continuing development programs, then you’re likely to struggle any time there’s a disruption with the current staffing.

Staffing is just one piece of the equation. If you want to create a scalable business with repeatable systems, find a franchise system to model and begin creating systems and processes for each piece of the business. Though it may seem like an undertaking in the beginning, you’ll start to see that you’re creating a business which has clearer direction. In addition, you’ll find that your staff will have a clear vision of the company and where it’s going. A clearer vision leads to increased morale, confidence in the business direction and more efficient internal operations. This doesn’t mean that you become a cookie cutter operation or that you’re ever going to be asking clients, “Do you want fries with that?” Don’t lose what makes you strong and flexible. However, if you focus on repeatable processes where you can, your new efficiencies just might allow you to service your clients more effectively. Next thing you know, they’ll be “super sizing” their orders with you.

How does the franchise model impact training? Look for more on that in an upcoming post.

Welcome to the Daily Apple Blog by Paul Kirch. As the Business Health Specialists™, ActusMR is focused on creating healthy businesses that are sustainable and able to grow during the toughest environments. The Daily Apple Blog supports that by providing tips and ideas, all from the perspective of Paul Kirch, CEO of ActusMR. We look forward to your input and comments!

When change occurs, it’s often a great time to stop and focus on putting a business plan in place. I recently made some changes within my business which made strategic planning a major priority. It took me from being on auto-pilot back to guiding this plane on its course. As adults, it seems we often face changes which can have a major impact on our lives. That impact can be extremely positive or extremely disruptive. Even when it’s positive, it can still be disruptive to other parts of your life, be it business or personal. Major disruptions can lead to stress or even depression, so it’s important to keep things in perspective.

Planning has put things in perspective and has given me a re-invigoration, which I really needed. The focus on planning has created an exciting energy within the walls of ActusMR and it has given me a new roadmap to guide both my team and me. I’ll be making some announcements and sharing more soon, but I’m grateful to have loyal followers such as you.

What about your plans? If you’re running a business, are you revisiting your business plan annually? If not, you should. Recently I attended a Vistage CEO meeting where Kraig Kramers, a nationally renowned speaker presented. He’s an individual with an impressive track-record of success, serving as the CEO of firms such as Metro One Telecommunications, Graphic Arts Center Printing, Guarantee Insurance, Snapper Lawnmowers, Courtesy Coffee, and Munson Sporting Goods, all during some of their most successful periods. During his talk, he emphasized building a one-page business plan and sharing it with every individual within your organization. It’s something that should be updated regularly and used as a tool to motivate, inform and create a “buy-in” atmosphere. Sadly, very few companies have a formalized business plan that isn’t collecting dust (if they have one at all). If this sounds like your plan, it’s time to break it out and update it.

What about individuals? Why not create your own one page business plan? If you’re a sales professional, build a sales plan for yourself so you know exactly how you’ll reach your objectives. Planning is empowering and it creates realistic objectives. Without planning, it’s really hard to tell when you’ve reached your goal. In fact, it’s really hard to achieve goals without planning. One of my favorite quotes is “A goal without a plan is a dream” by Elbert Hubbard, US Author-Printer (1856-1915). His perspective is even truer today in this world of daily distractions and noise we all face. Without a plan, we’re likely to always want instead of achieve.

Planning is power and it’s something very few people take the time to do. Or if they do make a plan, they make it too complex to follow. Start with something simple and set realistic milestones. When I met with my local S.C.O.R.E (Service Corps of Retired Executives) office during my company’s inception, they told me to build a business plan with the following points:

• What I’ll Do (Business Proposition)
• Why I’ll Do it (Purpose)
• What I Hope to Achieve (Goals)
• How I’ll Get There (Strategy)

Keep the business plan simple and you’re more likely to use it. If you have a large, verbose plan, create a summary you can share and use to keep everyone involved. Disruptions are still going to occur, but with a plan in place, you can always keep on the right path, leading you to the destination you choose. After all, wouldn’t you rather pick where you end up?

If you want to learn more about my perspective or to learn more about ActusMR, visit www.actusmr.com or email me at paul_kirch@actusmr.com.

Recently I was interviewed by Tom H. C. Anderson of Anderson Analytics.  The following is the transcript and content from the interview:

Paul Kirch on Selling Market Research

Today I’m talking to Paul Kirch, whom I first met Paul at ESOMAR Congress in Montreal. He is the recent founder of ActusMR (a premiere sales strategy and consulting agency) and is the past president of NorthWest MRA. He has several years of experience in operations and sales management at firms like Common Knowledge/Toluna, M/A/R/C Research, Harris Interactive and Gallup, to name just a few. I thought I’d ask him a few questions about his new business and about how he views the MR sales process.

Tom: What made you decide to start this business now?

Paul: For me, it was really about timing and opportunity. I have been an aspiring entrepreneur for years, but was married to the security of a steady paycheck. Last year, however, a company I worked for was one of the many acquisitions our industry has seen. I was in charge of the sales group and with the new leadership continued to manage the US sales team. I started to think about the vulnerability you have as an employee in today’s corporate world. Though I had a job and the position was what I wanted, I just felt it was time to take control of my future and resigned. Acquisitions are hard, especially if you’re part of the team acquired. ActusMR, Inc. was inspired because I wanted to do something to help marketing research firms. I wanted to leverage my sales and sales leadership experience in a way which gave back. Today, I’m proud to say we’re helping our clients find success and opportunity. It is truly rewarding.

Tom: Thinking about selling in today’s market, what do companies have to do to succeed?

Paul: Today’s competitive environment requires a company to find a way to differentiate from their competition. If you’re selling the same service as the company down the street and your message doesn’t stand out as creating a greater value that matters to the buyer, how do you expect to win on anything other than price? Many firms in marketing research struggle to stand out. Think about gold, one of the most commoditized items in existence. South Africa minted a gold coin called the Kruggerand, which sells at a slight premium. If gold can be differentiated, then any company can if they take the right steps.

Tom: How has the sales process changed from just a few years ago?

Paul: Especially true in marketing research, many times a sales transaction took place between two business owners or senior executives. It was very relationship driven and there was a great sense of loyalty. Today, often we’re dealing with very junior or mid-level executives, or even procurement departments who are hoping to avoid the next round of lay-offs. Their buying motives are different and are very focused on making themselves look good internally. Self preservation often comes in 3 ways: 1. They get the lowest price to save the company money 2. They won’t switch vendors, fearing the new company may make a mistake (thus making them look bad) 3. They micromanage vendors to try to prevent problems, which often back fires

Tom: How do you win these buyers over if they’re so worried about trying a new supplier?

Paul: You have to gain their trust by proving that you create a value that matters to them. What matters to them? You can only find out through asking the right questions and learning about their business and business needs. What’s their biggest fear or pain point and how can you address it in a way others can’t? If you can answer that question and earn their trust, then you can win. Today’s most successful sales people are great at asking questions that uncover real needs. By doing research on the firm and the staff involved, they can anticipate the issues in advance and be prepared with answers that create real value.

Tom: You mentioned purchasing departments. Depending on the organization these can be really tough to deal with. We’ll often pass on RFP’s from Universities or other organizations that send out a one way 30 page statement about what they want with very little opportunity to ask questions or provide project design. What are your thoughts on situations like this?

Paul: When I first heard the phrase ‘procurement department’ in our industry, it caused me some great concern. It is a shift in how research is being purchased and sold. Anything which puts price as a leading factor above capability, weakens what our industry offers. I have written several articles arguing against commoditization in marketing research. We’re not selling commodities, though I think there are firms who have done a poor job of creating differentiation and value that matters, thus fostering the perception there’s little difference between the supplier’s offerings (especially in sampling and data collection). However, when we bring purchasing and procurement into the conversation, we create a scenario where commoditization might fit. Fortunately, very little buying has moved in this direction, but it is becoming more and more common. Like you, I’ve always avoided situations where I have no control beyond the content I put into the RFP. Uncovering real needs, as you stated, is so crucial to providing quality research and more importantly, VALUE as a partner. It’s the only way to do business right, in my opinion.

Tom: How do we motivate our sales staff? Are there any ways you’ve seen that are particularly good/not so good?

Paul: There’s a misconception that all sales people are motivated by money. I’ve heard people say that a sales person not motivated by money is not a good sales person. This is simply not true. As an example, two years ago, I managed a sales person who claimed he was in sales for the money. I revised his compensation plan to give him more opportunity to earn significantly more, but it made very little impact. What I discovered over time is that he did best when he was receiving praise and made to feel important. He went from being a lower to mid-level producer to being one of the top sales people in the company. Yes, he made more money, but it was the pats on the back and the sense of being important which really motivated him. Also, he thrived in an environment where he felt he was part of a team that valued him. Therefore, you need to know what makes your people tick and what will drive them the most. Here’s some other ideas that can work well:
1). Sales Contests – Structure them so that everyone has a chance to win and give cool prizes. Make it something they’d want, but might not buy for themselves (TVs, Flip Camera, trips, etc…) It can be an inexpensive way for a company to get maximum productivity. If you’re always motivating your top sales person, it can deflate the others, so make it fair, fun and competitive.
2.) Enhance Culture – Create a culture where you value the opinions of your sales staff and listen. Some of them have great ideas and a ton of experience.
3.) Embrace Success – Another area that works for motivation is to focus on a recent success during your weekly (or some other interval) sales meeting. Let them share what worked and why, and then as a leader make sure you recognize it as a win. For me, I often made sure others heard about the successes and gave credit to the people who made it happen, without discrediting those behind the scenes. After all, everyone deserves kudos when they’ve earned them.
4. ) Performance Based Compensation – For many sales people, it really does come down to money. Sales people should be putting a significant portion of their earnings at risk in the form of commission. In my opinion, the best plans have quarterly sales targets which are lofty, but not out of reach. Pay a certain percentage up to their target and then offer a bonus or an additional percentage for anything over their target. If they fall short one quarter, allow them to make it up on the next. Motivate them to always exceed their target.

Tom: What doesn’t work?

Paul: First, not treating your sales people as an important part of the team. Secondly, not learning what drives them to succeed (It’s not always money) and creating ways to leverage that. Thirdly, not giving them an opportunity to succeed financially. And finally, making their compensation plans too easy to earn. I see some people in our industry earning very large bases and barely covering their cost to the company with their sales. If you’re paying a large base, set targets which are appropriate and drive them to succeed, don’t drive them into complacency. If they aren’t performing, bring on someone who will. It sounds harsh, but true sales professionals know that there’s a risk for them if they don’t perform and they also expect a reward if they do. However, if you have someone falling short, take the time to help them find their path by trying to help them turn it around. Had I not done that in the case above, I might have missed out on a great success story.

Tom: What level of knowledge should sales staff have? It seems this can vary quite a bit from firm to firm.

Paul: What are the firm’s expectations from the sales person? Are they looking for someone who can be more of an order taker? Or someone who can service the client, but not necessarily be the aggressive hunter? Maybe an inside sales rep? Let’s assume you’re looking for someone who can really sell. Just like any career choice, knowledge is power. If you’re hiring sales people and you’re willing to invest in training and educating people you feel have great potential, then good for you. Often you can hire an inexperienced person at a reduced rate and salary, giving them an opportunity to learn and grow. Others are more comfortable seeking out sales people with a great resume and a ton of experience. Though this is often giving you someone who can produce faster and provide real growth, you have to know who you’re hiring. There are a lot of sales people that have a lot of experience, but they’re really not that effective. Did they work in an environment where leads came to them? Did they have to aggressively open doors and create relationships? What did their clients think of them? Were they someone who worked well with the operations team? This is a big question to have an answer, since market research firms and suppliers live and die by their operational offerings. I was fortunate enough to have worked in operations for 10 years before moving into sales, so I’m able to speak both languages and can relate to the frustrations of the programmer or project person who is stuck cleaning up a mess that someone in sales created by not caring enough to follow through. Experience does matter, but when hiring sales people, I think there’s far too little due diligence done during hiring. Far too often sales people or people hiring them believe that a seasoned sales person can bring a ton of business to them. In reality, buyers of research are often more loyal to the team that did the work and it doesn’t guarantee that they’ll shift their business. When a sales person is confident that a lot of their former clients will follow, it often falls short of expectation. Employers need realize this and align their expectations to avoid disappointment.

Tom: In winning new MR business, how important/effective do you think the various parts marketing are? Are cold calls effective? Are face to face meetings necessary? What about Advertising, conferences, whitepapers etc.? How should we allocate our time?

Paul: This a great question, Tom. First off, there’s a perception that sales and marketing clash. The simple reality is that their end goal (growth) is the same, but the path is different. Marketing is often referred to as “we-we” talk. “We do this, we do that…” Brochures and advertisements are filled with biased messages about what a company can do or will do. It’s important and it plays a very powerful support role to sales if used correctly, however it is very one sided. Good sales people know that selling is less talking about what they can do and more about uncovering what a client needs and then providing solutions that fit. It’s about asking questions and becoming a real investigator. Unfortunately, many sales people have not learned this lesson and spend more time talking about the promises in the brochure. Have you ever sat through a sales presentation where they spent an hour telling you everything they do and you walked away remembering almost nothing? It happens far too often. The key is to engage the clients by getting them talking. How? By asking powerful questions. There’s a phrase that is probably overused, but it’s “find a client’s pain points and then offer a way to ease that pain.” It really does come down to finding out what their frustrations are or what their real needs are. If you can offer a solution no one else can or if you can do it better or guarantee success, then you’re likely to win.

Cold calling ONLY is a very difficult way to make a living and it takes a special type of sales person to make 60-100 calls per day. Still, it is something that most sales people have to do to generate opportunities. Warm leads, on the other hand, are a much better tool to leverage. Conference attendees, visitors to your website, responders to requests, members of your social networking groups, referrals from a client or colleagues, and contacts you’ve met through networking are all great ways to have warm leads which dramatically increases your likelihood of success. Successful sales people often present at conferences, write articles, blog and are very involved in networking, since they know this is going to translate to money in the bank.

Advertising is an area near and dear to my heart. I studied to be a copywriter in college and actually interned for an advertising agency when I was 20. Advertising can work, but like your sales message, it needs to stand out and it needs to use some call to action. Give them a reason to respond… I avoid anything that reduces the value of research in the eyes of the buyer, such as weak discount offers. And, track your ads, by using a special number or code which allows you to follow which publication it was in.

Face to Face meetings are an incredible way to achieve great success. Living and dying by the phone alone is a hard way to grow a business. Though you have to be careful not to annoy your clients, getting in front of them allows you to build rapport and trust very quickly, assuming you’re bring a message filled with value. When you’re in front of a client, you can read reactions and gauge how you’re doing better than you can via telephone. Face to face meetings also show the clients they were important enough for you to hop on a plane to come see them, which goes a long way toward relationship building. When does face to face fail? When you’re unprepared or you spend more time just talking about what you do, instead of learning what they need. If you’re investing in a sales team, budget for travel and you’ll see a faster return on your investment.

Allocation of time depends on several factors. Personally, I like to see sales people travel at least two times per month. In most cases, 1-2 day trips work best, due to the prep work that must go into a face to face meeting. Also, unless it is a key opportunity, I never travel for just one meeting. Try and fill your day with 3 or 4 meetings in any given city to justify your time. When not traveling, part of your time should be spent scheduling meetings for the next trip, researching the clients you’ll visit and continuing to prospect and follow up with existing accounts. You should also expect to track a sales person’s metrics, such as calls dialed, meetings scheduled, proposals, and jobs won. Make it easy for them and for the company by implementing a great CRM solution, such as Salesforce.com. You can even tie compensation to using such a tool, guaranteeing it will get used.

Tom: Is there one type of ideal sales executive or are there different types that work equally well? Personally, what specific characteristics do you have that make you more successful than others? What is an area where you think you could improve?

Paul: There are so many different sales people out there. What I look for are people who are honest and trustworthy, are likeable, work well with others, are driven, understand research, have strong communication skills (written and verbal), think quickly and who want to grow and learn (they must be open-minded). Also, I think a sense of humor is important if used appropriately.

If I look at my own success, there are 7 areas which I think stand out as to why I achieved what I did: 1. I spent 10 years in various operations roles, which allows me to relate to the clients I talk to 2. Clients tend to trust me. I am often able to relate to their issues and offer viable solutions. They often recognize that I want to take care of them. 3. I always believe in what I’m selling. I would stand behind anything I’ve ever told a client and I think they knew I was sincere. 4. I had great mentors and always strive to become better. I still focus on improving every day, not just as a sales professional, but also as a person. 5. “Be a Resource” was a lesson I learned early on. Helping people find work, offering ideas to help individuals, introducing people who can benefit from each other truly striving to help are probably what have given me the most success and fulfillment. 6. Contributing to the industry, such as volunteering for industry organizations or mentoring students hoping for careers in research are things which helped give me recognition and helped me become known by some very influential people. 7. Taking ownership of mistakes. Mistakes happen, but how you deal with them can make the difference. I always try to resolve them quickly and make the client feel as if I am doing the right thing.

Where could I improve? That’s a hard question, since self improvement is a lifelong battle. Related to sales, I’d say the one area I struggle the most is reducing the noise or avoiding distraction. The world we live in today is all about instant and constant contact, we all feel we have to respond quickly to everything and we’re rarely able to turn it off. This sometimes gets in the way of a schedule full of prospecting or follow up with clients. To combat this, I avoid personal email during the day except for first thing in the morning, possibly at lunch and in the evening. I also try to block out time where I avoid non-crucial business emails. I might block out an hour to complete a task before responding to emails. It’s not a perfect system and I still fight the battle daily. I’ve always been praised as being responsive, but as the noise increases, it’s harder and harder to juggle everything we face. For me technology is truly a love/hate relationship.

Tom: Are there any sales techniques that you find rather successful, but that if we asked clients about they would disagree with and/or say they didn’t like?

Paul: First off, I don’t like sales tactics or techniques which aren’t natural or honest. And, if a client says they don’t like it, why are you using it if your hope is to build a relationship? I strive to do what’s right for my clients and prospects and I try to avoid being an annoyance. The reality is, however, when we make a sales call into someone who is juggling 12 items and we get them on the phone, we have a very short window of opportunity to succeed by winning them over. Be direct and to the point and also be prepared. You might just have a few seconds to find a way to connect with them. I try to focus on setting the next appointment and try to schedule a specific time, without being long winded. Ask most people and they say that don’t like to receive sales calls, but they do work if you are focused on respecting their time and their needs. Avoid tactics or techniques which aren’t natural or honest and sell with integrity.

Tom: The word ‘value’ is one you use a great deal. Why is that word so important when talking about sales and growth?

Paul: If you’ve uncovered your clients fears or problem areas and you can offer a real solution that others can’t (or don’t), then price becomes much less relevant. If you stand out as being different and better, you can often charge a premium. In other words, if your client perceives that there is a better value in working with you and your company, you’re moving away from commoditized selling. If you can’t differentiate yourself or your company, then aggressive pricing is often a necessity.

Tom: In your experience how does the value proposition usually differ by size of supplier company?

Paul: Size often relates to the number of resources. Many smaller firms are focused on their workload and on meeting payroll, so they take little time to create real value propositions or value statements. They know it is something they need to do, but it often gets little attention. When it does get attention, it’s done with little thought or direction as they need to move on to the next project. The successful larger organization has more staff and can focus teams on trying to create powerful campaigns and create value propositions which resonate. The campaigns give them more exposure which often translates to trust in the eyes of the buyer. The more we see a name, the more it resonates that they must be good or why else would they be so large and well known? In reality, often the smaller firms are doing some of the best work and they’re extremely focused on giving their clients an incredible service experience. They try to hire the best and brightest that they can afford, since they refuse to let their clients down. Larger firms need more bodies, so you’re often working with less experienced staff and the focus is often on the bottom line more than the level of service. The senior researchers and executives are often overseeing things, but they might be less hands on than they would be if they were in a smaller organization. There are so many ways to create more value and value propositions, regardless of size today. With social media and social networking, the size of the company matters very little. It still requires the right approach and work to get to create the right message, but the tools are there along with other channels to make an impact, thus evening the playing field. In the end, many smaller firms have a great story to tell. They just might need some help uncovering exactly what it is.

Tom: What can your firm do for clients?

Paul: Through our sales strategy group, we focus on helping create a stronger sales approach. We start with an evaluation process to uncover their real needs and create a customized plan. Two core areas revolve around identifying true differentiation and creating powerful sales messaging that complements their operational offerings. It’s important that they are armed with an approach that is actionable and usable. Usability stems from improving networking, presentation and investigative skills (researching and power questions). By asking good questions, you keep your client talking and engaged. When they are engaged, they retain what they hear about you, which rarely happens when you’re doing all of the talking. For example, a client I have been working with recently had a sales meeting with a Fortune 500 prospect. When I asked him how the meeting went, he stated, “I think I’m going to get the project, but I feel funny about the meeting. I asked a lot of questions, but I didn’t tell him much about my firm.” In reality, his new client learned everything he needed and he didn’t have to suffer a sales pitch. Engage and win…

How many times have you heard that certain areas of business are becoming commoditized? When I started hearing the phrase muttered in marketing research, it applied to one or two specific areas, but even then, it was a weak argument. I don’t believe we’re selling commoditized services, but many of the buyers do. Perception is often reality, especially when we don’t do anything to combat it. When this happens in any industry, it signals that there are serious issues on the horizon. Let’s take a look at marketing research and examine what is happening:

• How about price pressure? Before you blame the economy, let me point out that pricing related to many services has been driven down to ridiculously low rates and it started happening before the recession.
• What about reduced loyalty? Yes, many of you reading will talk about your long-term clients and all of your great relationships, but as price becomes more of a factor, unless there is significant value in what you offer over your competitors, there is little incentive to be loyal to one or even a few suppliers.
• And how about decision maker roles? The days of dealing with the owner or senior executives are gone in many sales situations. The motivations of someone in a project management or middle management role are often different than senior staff. When many companies are laying off staff and those that remain know it’s a tough job market, they are very likely to become protective. This often means saving the company money by selecting the lowest price or going with the vendor that will make them look the best overall. Taking risks is not likely to happen when people fear for their jobs.
• How about the introduction of procurement departments? The “P” word has become more and more popular for various reasons. Often these groups use price as a very large criterion for making purchases, moving closer to the commoditization argument.

As an industry, what are we doing to address it? Addressing quality concerns through committee has only created more scrutiny of our services. I think there are many issues which need to be addressed, but are we going about it in a way that creates trust and leads to more credibility? Or are we making price the ultimate motivator for purchases?

I don’t have all of the answers, but I do believe that buying decisions and motives have changed and will continue to do so. Consumers and buyers of any product or service expect more for their money, or they expect it to be at the best price. I am here to tell you that it’s time to stand out or sit down. That may sound harsh, but we need to start shaking things up as an industry. Most companies have never bothered to really define why they are unique, beyond the simple surface answers. If you can differentiate yourself, or provide a special value in the eyes of your customers, you can win. When you win, you can grow and contribute to the economy and also the well being of your employees and their families. We should all be focused on winning. You need it and our industry needs it.

I often talk to clients and prospects about the challenges of doing business today. When asking what one of the most frequently asked questions they hear from clients, the response is often, “what makes you different from your competition?” How many of you have heard or used this same question? When I ask them to tell me what really does make them stand out, often I hear very unclear answers or information that is far from compelling. You have great people? You’re honest? You believe you work harder? You believe you provide better research? Ok, all great things, but your competition claims the same thing and these are hard to quantify without testimonials (which are a great tool if you can leverage them). The best answer I have heard when I asked why they were different, was simply, “I don’t know.” This business owner and talented researcher was looking to stand out and knew he needed to go beyond what his competition was. He knew some things he thought he was better at, but had never dug deep enough to learn what made him different. We embarked on a series of business differentiation exercises and discussions to uncover how to position his firm. It came down to creating a new sales message and approach that works, which he is benefiting from.

Where do you begin? Often the answers lie in the very people you rely on to do the work every day. If you have staff that are talking to clients or supporting the teams that do, these people often have gems of information that you aren’t thinking of. Why not get feedback and input from each of them? What words do they believe describe your firm and why do they believe you are great? This is just one step in the process, but you can often uncover real value by investing time in these endeavors. Also, you bring them into the process, creating a sense of ownership and pride. Not only will this improve the work environment and lead to greater loyalty, but you might just learn what really sets you apart. Stand out or sit down, but do it with your team and dig in to create a new future for your organization.