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Business

Tracking Marketing Effectiveness

When Marketing Data Is Absent, You Need to Go by Instinct

By Peter Lyle DeHaan

Though the source of the old advertising quip is in dispute, its wisdom isn’t. The adage laments, “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”

Author and blogger Peter Lyle DeHaan

Tracking Traditional Marketing

When it comes to traditional marketing channels, there’s so much truth in this saying. As marketers, we never know how many people respond to any given ad or, of those who respond, how many buy. Yes, we can survey new customers and ask, “Where did you hear about us?”, but even that collected information is in doubt.

Remember when I said I once ran Yellow Pages ads? This was before the dawn of the World Wide Web and, later, at its early inception, when it was still a novelty. Back then, the Yellow Pages was the go-to source for finding the product or service you needed. As I recall, I advertised in over fifty directories in various markets and from different publishers. But I never knew which ads worked, which were cost effective, or the ROI of any of them.

In an effort to find clarity and obtain actionable data, I had each sales rep ask new clients, “Where did you hear about us?” This was even a question on their onboarding paperwork. If they said, “the Yellow Pages,” the follow-up question was “which one?”

To my dismay, 4 percent of those who cited the Yellow Pages named a non-existent directory as the one they consulted. This brought into question the value of any of their feedback.

In addition to worrying about the accuracy of their responses, I questioned if they gave me the best answer. Given the conventional wisdom that it takes at least seven touches to make an impact on a potential buyer before they become a customer, I wondered which one they gave me. Was it the first touch, the final one, the most notable one, or simply the first one that came to mind? I suspect the latter. Or, feeling pressure to respond quickly, they could have even made up an answer.

The only thing worse than no data is bad data.

In the end, I had to go by what my gut told me and what my marketing budget allowed.

True, some ads were so inexpensive that one sale justified them for the entire year. The same applied to some of my print media advertising. Yet when the budget is tight, it’s easy to cancel ads that you can’t prove are working.

Tracking Online Marketing

This inability to track marketing effectiveness doesn’t carry over to the online world. There we have plenty of data, perhaps too much.

For online advertising, we can look at impressions and clicks, which allow us to calculate our clickthrough rate (CTR). If the sale is completed online, we know how many sales the ad produced, allowing us to calculate cost per sale and clicks per sale.

If we really want to get into the weeds, we can track this by day of the week and time of day. We can look at weekend versus weekday and daytime versus nighttime, along with seasonal fluctuations. We can also track results by geography and factor in socioeconomic data.

With social media, we can look at reach, followers, and interaction, be it a like, a forward, or a comment—whatever analogous label occurs on a particular platform. And when we pay a social media platform to get our message out, we can track results much like any other online ad.

We also have interesting metrics for email marketing. We can look at delivery rate, open rate (all the while knowing that technology underreports results), and click rate. Looking at the number of replies is useful, as is the number of unsubscribes.

Even content marketing has helpful statistics, such as the number of page views, comments, likes, and shares. Yet connecting these forms of engagement to sales is difficult, making content marketing the least data-rich online marketing option. Still, it’s much better than having no information.

The Response

The reaction of some marketers—especially younger ones who grew up with the internet and those with a more recent marketing degree—is to focus on online marketing, where they can measure results and quantify sales. Alternately, they dismiss traditional marketing—which they can’t track—with suspicion, knowing that it wastes half of their advertising dollars, if not more. They just don’t know which half.

This is understandable, but not the wisest marketing approach. Be sure to consider all marketing options—both traditional and online. This doesn’t mean, however, that you should pursue them all. Just contemplate them.

Therefore, employ the marketing options that make sense for your target audience and business strategy, using both traditional and online marketing channels as appropriate. Whenever possible, track what you can to gauge results and drive continued investment. For the rest, accept the unknowable as a part of doing business and embrace the mystery of it, using all the experience you have to produce meaningful insight.

Marketing Management Success Tip Embrace the reality that marketing is part science and part art.

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer ServiceSticky Sales and Marketing, and Sticky Leadership and Management featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan is an entrepreneur and businessman who has managed, owned, and started multiple businesses over his career. Common themes at every turn have included customer service, sales and marketing, and leadership and management.

He shares his lifetime of business experience and personal insights through his books to encourage, inspire, and occasionally entertain.

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Business

Pursue Content Marketing

Indirectly Promote Your Company and Products by Providing Valuable Industry Information

By Peter Lyle DeHaan

I’ve talked about content marketing. Now we’ll delve into it more fully as a practical marketing tactic. Having written nearly five thousand content marketing pieces over the past couple of decades, it’s a subject I know quite well.

The goal of content marketing isn’t like a typical marketing strategy. It’s more subtle than that, much more. Its intent isn’t to sell. Instead, the goal of content marketing is to establish you or your company as an expert in your industry, a thought leader.

Author and blogger Peter Lyle DeHaan

The hoped-for side effect is moving readers into your sales funnel once they know you and trust you as a knowledgeable resource. Be aware, however, that most people who read your content will never buy from you. Repeat readers, though, are likely to form a high opinion of you for your expertise. They may even recommend you to others who will buy from you, even if they don’t.

A content marketing piece should give helpful information as a no-strings-attached public service. It should have no obvious marketing content and must avoid even the hint of a sales pitch. Make sure the content is relevant to your company and helpful to your prospects. This portrays you as a subject-matter expert from the perspective of your target audience.

Content Marketing on Your Website

You can publish content marketing on your own website in the form of a blog. Over time, this takes a huge step forward to gain search engine attention. This is part of search engine optimization—SEO. The result is driving traffic to your site. Be aware, however, that this is not an overnight solution, but a long-term strategy that takes time to pay off.

Even so, a post can go viral and produce an instant impact. And a singular post could also attract the right person who’s eager to buy. Though these are both immediate outcomes that could occur, it’s unwise to plan on them.

Before you begin a content marketing strategy for your website, dig deep to make sure you have enough to say and are committed to pursuing it over time. Figure out a publishing schedule that is both doable and sustainable. Then stick with it. This may be once a month, once a week, or even multiple times a week.

At one point, I posted fresh content three times a week on my main website. It now has two thousand posts, enjoys solid traffic, and experiences year-over-year growth. Be aware that I wrote my first post in 2008 and have been publishing weekly content ever since. But don’t let this discourage you. You can enjoy meaningful results with far less content and time.

Content Marketing on Other Channels

You need not restrict content marketing efforts to your own website. You can also guest post on other sites relevant to your industry. Target sites with more traffic or higher influence than yours.

Assuming they accept guest posts or contributed content, you’ll need to pitch your idea to them. If they like your concept, then you write and send them your piece. Alternately, they may skip the pitch step and simply have you submit your completed work.

Before you send it, make sure it’s your best writing. Don’t send a draft for their feedback or expect them to edit it for you; you should do that before you send it.

A special application that falls under the content marketing umbrella is submitting byline articles to industry periodicals. As a media company, your articles on their site will enjoy greater respect and expanded reach. And if they have a print version of their publication, your content will have the greatest impact and you’ll receive even more industry esteem.

Regardless of where your piece is published, one post or article can have a significant impact. This is because they already have traffic and an audience, which is unlike your own website where you need ongoing posts to attract visitors.

The Outcome

Regardless of where it’s placed, content marketing is a simple and effective marketing tactic that can provide ongoing, enduring results. It establishes the reputation of you and your company, as well as supplying a subtle, but ongoing, source for leads.

Marketing Tactics Success Tip

Embrace content marketing as part of your overall marketing strategy. It will have a long-term and far-reaching impact that will be hard to match with any other tactic.

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer ServiceSticky Sales and Marketing, and Sticky Leadership and Management featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan is an entrepreneur and businessman who has managed, owned, and started multiple businesses over his career. Common themes at every turn have included customer service, sales and marketing, and leadership and management.

He shares his lifetime of business experience and personal insights through his books to encourage, inspire, and occasionally entertain.

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Business

A Primer on Ads

Don’t Overlook the Basics for Your Marketing Initiatives

By Peter Lyle DeHaan

As a periodical publisher, I’ve run ads for my customers. As a marketer, I’ve created and run ads for myself in various publications and on websites. And as a buyer, I’ve reacted to ads.

These experiences provide me with a 360-degree view, able to see ads from a provider, seller, and buyer perspective.

Whether it’s print ads or online, there are two challenges. The first is finding the right publication or platform that addresses your target audience. The second is designing an effective ad.

Author and blogger Peter Lyle DeHaan

The Right Medium

When considering a publication or online platform to promote your message, consider their target audience. This is the foremost concern. Even when secondary issues align, if you’re talking to the wrong audience, your message will fail to resonate with them and generate the outcome you seek.

Quite simply, do the people you want to reach read the publication or visit the website you’re considering? If not, don’t pursue it, no matter how attractive the rates or reach.

Only after you find a provider that can successfully reach your target audience should you consider the cost of the ad, the number of people who will see your message, and if it reaches true decision makers.

The Right Ad

Once you’ve found the perfect advertising medium, you need to design your ad. Some providers will offer to produce an ad for you at no cost, but resist taking them up on their tempting offer. Though they may know how to create ads, they may not know your industry or your business. They may be experts in what they do, but they’re not experts in what you do.

If you don’t have the skills yourself or in-house support to design a professional ad, outsource the task to a third party who can work with you to produce a compelling message.

This is one time when you shouldn’t go with “good enough” or “let’s throw this up and see what happens.” Strive to get your ad exactly right. This includes the ad copy and the artwork.

Use white space in your ad to your advantage, applying it to call attention to your essential message. Avoid having too much text, which makes your ad hard to read and drives readers away.

Also, be sure to give contact information and include a call to action.

If you fail to produce a compelling ad, your ad will fail to produce the results you seek. At this point, the cost of the ad or its reach doesn’t matter.

Ad Outcomes

If your ad doesn’t produce the results you want, either you’ve picked the wrong medium or run the wrong ad. Herein is the painful reality of advertising: the right advertising makes things happen; wrong advertising does nothing—except cost you money.

Marketing Tactics Success Tip Successful advertising relies on two elements: the ideal medium and the perfect ad. If either area is lacking, so too will your results.

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer ServiceSticky Sales and Marketing, and Sticky Leadership and Management featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan is an entrepreneur and businessman who has managed, owned, and started multiple businesses over his career. Common themes at every turn have included customer service, sales and marketing, and leadership and management.

He shares his lifetime of business experience and personal insights through his books to encourage, inspire, and occasionally entertain.

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Business

The Optimum Time to Sell

If We Determine When Prospects Aren’t Open to Buy, Our Experience Will Confirm It

By Peter Lyle DeHaan

Tyler, it seemed, was content to earn his base pay. He showed little incentive to close sales or earn any commission. Because he had one job to do—sell accounts—I expected his close rate would far exceed the office manager’s, who only handled sales when she had to, squeezing the task into her already too-busy day.

Yet Tyler merely matched her low sales numbers, if that. I expected him to close five times as much and hoped he would get ten. Instead, he merely maintained the status quo.

Author and blogger Peter Lyle DeHaan

When I reiterated to him the goal of closing one sale every business day, instead of two or three a month, he was quick with his response about why that wasn’t realistic.

“I can’t close any sales on Monday because everyone is always too busy after the weekend. They’re in recovery mode and don’t want to talk.”

I raised an eyebrow but that didn’t dissuade him from continuing.

“Fridays are just as bad because prospects are focused on wrapping up their week. The last thing they want to do is talk to a salesperson. They’re already thinking about their weekend plans.

“You just ruled out 40 percent of your work week.” I made no attempt to hide my dismay.

He didn’t take the hint to stop talking and plowed forward. “The first thing in the morning doesn’t work, nor the end of the day. Before and after lunch is bad too. And, of course, lunch is out.”

I shook my head, but he didn’t notice, or it could be he didn’t care.

“Wednesdays are bad too,” he said. “I haven’t figured out why yet. Maybe it’s some sort of midweek slump.” By now he was smiling at his great insights. I was not.

“So that leaves Tuesdays and Thursdays,” I said, not trusting myself to say much more and remain civil.

“Yep,” he said. “The ideal time to sell is on Tuesday and Thursday afternoons between 2 and 4:00 p.m.” He gave an excited upward tip of his head, as if to confirm his great wisdom.

“I disagree with your logic,” I said, “but even at that you have two opportunities to sell each week. That means you should have at least eight sales each month.

He shook his head. “Not every meeting will result in a sale.”

This was the first thing he’d said that I agreed with, but I wasn’t going to let him know. Instead, I pressed into his illogical assessment. “Today’s Wednesday. Who did you talk with yesterday afternoon?”

He hung his head and mumbled, “No one.”

“Who are you going to contact tomorrow afternoon?”

“I’m still working on that,” he said.

A good sales manager would have fired him on the spot. I didn’t. A few weeks later he saved me the trouble of doing so.

I’ve also had sales staff try this approach using a seasonal mindset. “August was bad last year,” they say. “Are all Augusts bad? That must be why my sales are down.” Sometimes they extend their logic to cover the whole summer, one fourth of the year.

Then they make similar excuses for any week that has a holiday in it, sometimes for the whole month. By that logic, they eliminate another 20 percent of the year.

Yes, sometimes it’s more difficult to close sales, but that’s no excuse not to try. If they think they’ll fall short, they surely will.

What if they tried a different tactic in August? What if they encouraged each prospect to prepare for fall by buying now? This way they’d have the decision behind them when they returned to work after Labor Day weekend. What a smart way to move into fall.

Don’t think about what you can’t do. Think about what you can do.

Sales Success Tip Your outlook determines your results. Don’t talk yourself out of having a good sales day, week, or month. Instead, expect success throughout the year. Plan for it, and you’ll be more apt to realize it.

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer ServiceSticky Sales and Marketing, and Sticky Leadership and Management featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan is an entrepreneur and businessman who has managed, owned, and started multiple businesses over his career. Common themes at every turn have included customer service, sales and marketing, and leadership and management.

He shares his lifetime of business experience and personal insights through his books to encourage, inspire, and occasionally entertain.

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Business

Pricing, Sales, and Discounts

Price Matters, but Not in the Way You Think

By Peter Lyle DeHaan

A common complaint I’ve heard over the years from my sales teams is that the prices for our products or services is too high. Yet in lowering rates to match the competition, it becomes a race to the bottom.

I’ve seen this taken to an extreme in the book publishing industry where some authors give their books away for free to increase their “sales” numbers or attract readers to buy their other books. Yet it’s hard to make a profit when you give away your merchandise.

Author and blogger Peter Lyle DeHaan

Price

My response to staff when they complain about prices is to point out that they’re focused on the wrong thing. “Never sell by price,” I say. “When you gain a client by price, you’re going to lose them for the same reason.” They’ll bail when a lower-cost option comes their way—and it will.

Instead of price, focus on value, benefits, and outcomes. This is hard to do, however, when the first words out of most prospects’ mouths are “How much does it cost?”

Yes, sometimes an up-front discussion of cost is needed because it weeds out those with a significant misalignment between what you’re selling and what they can afford. There’s no use extolling the features of a $10,000 solution when the inquiring buyer has a $250 budget.

Regardless, it’s essential to train sales staff to move away from selling by price and instead promote your product or service’s virtues.

Though some will surely disagree, as far as I’m concerned, lowering price is not a workable tactic for long-term success or ongoing viability.

Price your product or service appropriately and promote it accordingly.

Sales

Throughout my career I’ve seldom run sales. From a philosophical standpoint, it’s unfair to charge some buyers full price and give others a break.

From a practical standpoint, if you run too many sales too often, you train your customers to never buy at list price and to always wait for a sale. And once you program them to think of you in those terms, it’s hard to reprogram them to embrace a full-price mentality.

One office supply company so successfully tempted me to buy with their frequent sales that I stockpiled enough office supplies to cover me for the rest of my life with most items. Yet, their frequent sales promotions so irritated me that I eventually unsubscribed from their email list. Losing my connection with them, I seldom thought of them anymore. In effect, their overzealous sales turned me from a card-carrying member of their loyalty program to someone who hasn’t bought from them in a decade.

In expressing my dislike of running sales, I must acknowledge that most of my marketing experience comes from selling products or services with a recurring element. Telephone answering service is billed monthly and periodical advertising reoccurs each issue. For consulting, my strategy was ongoing work from each client. Even with book sales, my goal isn’t for a one-off sale but to attract readers who will buy multiple books from me over the years.

When it comes to a business model based on recurring revenue, gaining business through a sale means you perpetuate that special price month after month, year after year. Notably, I don’t have experience in selling a manufactured product or in retail sales.

If I did, perhaps I wouldn’t have such an aversion to running sales, but I do.

Discounts

A discount is similar to a sale. I’ve run discounts on occasion. But it’s always for a strategic purpose.

For example, when rebranding and changing the operational model of one of my publications, I needed to quickly achieve a buy-in from enough advertisers to create a financial base from which the publication could function. I needed this to cover my overhead costs, and I needed it quickly.

To achieve this goal, I identified my top five prospects and offered them a 50 percent lifetime discount if they would commit prior to the relaunch. I sold all five, and four are still with me years later. Based on their early commitment to my vision, I was able to relaunch the publication and form a stable, workable promotional resource that has produced a profit ever since.

Yes, there are times when I wish I could charge these four charter advertisers full price, but it’s worked for them and for me. And I’m content with that.

Marketing Tactics Success Tip

Carefully consider how pricing fits into your marketing strategy. Decide the role running sales will play, if any. Also determine if you will ever offer any discounts and under what conditions.

Approach each consideration from a long-term perspective and not a short-term gain.

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer ServiceSticky Sales and Marketing, and Sticky Leadership and Management featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan is an entrepreneur and businessman who has managed, owned, and started multiple businesses over his career. Common themes at every turn have included customer service, sales and marketing, and leadership and management.

He shares his lifetime of business experience and personal insights through his books to encourage, inspire, and occasionally entertain.

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Business

Sales and Marketing Success

By Peter Lyle DeHaan

Marketing drives sales. You can’t hope to have the latter without the former. Over the years I’ve tapped many marketing channels. Some were successful and others not so much.

At the call center where we specialized in telephone answering service, I made extensive use of Yellow Pages ads. Remember them? It was a different time. Though the Yellow Pages books still exist in some markets, the internet rendered them obsolete. I also ran print media advertising in local business-oriented magazines. I even dabbled in radio and cable TV ads.

Author and blogger Peter Lyle DeHaan

For my consulting business I relied on print media advertising and trade shows, but most of my work came through networking, with some word-of-mouth support.

My periodical sales also occurred through networking and trade shows. Yet the publications themselves became their own marketing tool and the best way to showcase their promotional impact. In recent years my marketing reach has been bolstered by SEO (search engine optimization) and the reputation of my long-standing websites with thousands of pages of valuable, industry-specific content.

Most recently I’ve focused my marketing attention on promoting books. My website is the center of that activity, strengthened by favorable SEO and content marketing posts—I started blogging in 2008. I connect with my fans through my weekly newsletter and enjoy good open rates and meaningful interaction. Social media plays a small but worthwhile role in pointing people to my website. This sets a great foundation for book sales, but I drive additional sales through internet marketing.

The channels you use will differ from mine, but most are worthy of consideration regardless of what business you’re in. We can learn useful lessons from all of them.

Consider some of the common marketing channel options:

  • Retail
  • Direct mail
  • Direct mail followed by a phone call
  • Print media
  • Brochures and sales literature
  • Telephone (inbound and outbound telemarketing)
  • Broadcast media (television and radio)
  • Trade shows
  • Books
  • Networking
  • Referrals
  • Cold calls
  • Websites
  • Content marketing
  • Social media
  • Social media advertising
  • Advertising platforms and banner ads
  • Email and newsletters

Each of these marketing channels has a proven record of producing sales. Unfortunately, these same methods have also been total failures. Campaigns that consistently generate high sales numbers for one company have been colossal flops at others.

The distinguishing factor is not the strategy, but what surrounds it. Remember my ultimate sales and marketing success formula that I covered in the beginning of the book?

Sales and Marketing Success = Personnel + Attitude + Execution + Management Keep this in mind as we move forward.

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer ServiceSticky Sales and Marketing, and Sticky Leadership and Management featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan is an entrepreneur and businessman who has managed, owned, and started multiple businesses over his career. Common themes at every turn have included customer service, sales and marketing, and leadership and management.

He shares his lifetime of business experience and personal insights through his books to encourage, inspire, and occasionally entertain.

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Business

The Special Incentive

Capitalize on Naturally Occurring Motivators, but Don’t Manufacture a False Sense of Urgency

By Peter Lyle DeHaan

In the past, I mentioned a variation of the either/or close. I call it the special incentive close. Here’s how I use it when selling advertising for my publications. In essence it’s buy now and receive a special incentive or buy later without it.

Sometimes an advertising prospect has selected the rate plan they want to be on, but they still haven’t fully committed. Though they’ve mentally agreed by selecting which package they want, they’re delaying in signing the paperwork. That’s when I give them a nudge with a variation of the either/or close. It’s a special incentive.

Author and blogger Peter Lyle DeHaan

Receive Bonus Coverage

“The next issue goes out in three weeks,” I say. “If you sign up today, you’ll get all the online benefits right away, but I won’t start your billing until the issue goes out. You’ll get three weeks free. Shall we do that?”

This is usually enough to nudge most prospects forward to sign the paperwork. Remember, they’ve already mentally committed when they picked which advertising package they wanted. The special incentive close merely gets them to formalize what they’ve already agreed to in their mind.

Lock In Today’s Rate

A variation of this happens toward the end of the year when I consider rate increases for the upcoming twelve months. Though I don’t like to use this tactic often, because it strikes me as a little too close to being sleazy, I do tap it for people I can’t move from mental acquiescence to actual commitment. And, of course, it only works in the fall.

I simply tell them, “We’re looking at possible rate increases for next year, but if you sign up before the next issue goes out, you can lock in this year’s rate for all of next year.” This usually gets them to move forward.

If they press me for what the increase might be, I either give them a realistic range (for example, 3 to 6 percent) or I’ll share last year’s increase.

Sometimes I already know what the new rates will be. Then I give them actual numbers. “Next year, this advertising package is going up 8 percent, but if you sign up before year’s end, you can lock in this year’s rate for all of next year. That’s a savings of . . .”

Avoid a False Sense of Urgency

I’ve seen salespeople, however, who overuse this sales tactic. They do this by manufacturing a disingenuous reason to buy now. This is clearly a sleazy ploy, and ethical salespeople should avoid it.

It might be that they offer a special deal for people who buy today, “so that I can meet my quota for the month. Can you help me out?” A variation of this is “. . . so that I can keep my job.” They tug at our compassion, and we want to help them. Their maneuver often works.

Or: “My boss is gone today,” he whispers, “so if you sign up now, I’ll give you an extra bonus—just between us. What he doesn’t know won’t hurt him.” The incentive could be a discount, free add-on service, or even a BOGO (buy one and get one for free). By lowering his voice, the salesperson treats it like it’s a deep secret between you and him.

I experienced the most deplorable abuse of this tactic once when shopping for a used car. The owner of the lot gave me what I considered to be a fair price for the car I was interested in. But it was a one-day-only deal. When I told him I wanted to check out a couple other cars down the street first, he clarified his offer. It was only good until I left. If I came back—even an hour later—I’d have to pay full price.

I didn’t think he’d hold to his threat, but he delivered it convincingly enough to cause me to doubt. In the end, I reluctantly bought the car from him. Though I don’t feel he charged too much or sold me a lemon, I forever hold a bad impression of him. And he heightened my overall dislike for car salespeople.

Sales Success Tip

Offer prospects a special incentive whenever you can do so honestly and ethically. But avoid abusing this tactic by creating a false sense of urgency or lying to your prospect.

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer ServiceSticky Sales and Marketing, and Sticky Leadership and Management featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan is an entrepreneur and businessman who has managed, owned, and started multiple businesses over his career. Common themes at every turn have included customer service, sales and marketing, and leadership and management.

He shares his lifetime of business experience and personal insights through his books to encourage, inspire, and occasionally entertain.


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Business

The Either/Or Close

Ask Your Prospect to Choose Between Two Options, Both of Which Meet Your Objective

By Peter Lyle DeHaan

Remember when I went on the sales call with Mitchell? In a few minutes I closed the sale he’d been working on for a couple of months. The “secret” sales technique I used is no secret at all. It’s the simplest closing technique available and the easiest to master. That’s why I use it.

It’s called the either/or close.

Author and blogger Peter Lyle DeHaan

The premise is simple: give your prospect two options and ask them to pick the one they like the best. It’s easy for them because it’s the simplest of decisions to make. There are only two possibilities with no variables: it’s A or B.

The beauty of this approach is that either choice meets your overall aim of closing the sale.

Here’s how this worked on the sales call Mitchell and I made: Once I established a rapport with the prospect, I asked one simple question: “Would you like to start service this weekend or wait until next week?”

She paused for only a moment and said, “This weekend.” At that point the sale was made. I only needed to finalize it by having her sign the agreement. She was eager to do so.

I told her we’d send her an invoice for the set-up fee and first month’s payment. But she waved me off and had a check cut while we waited. That’s how motivated she was in switching over to our business. And it all happened because I used the either/or close.

The either/or close is my default method of closing sales. I use it every time. And I close well over half of those sales.

Usually, my two options relate to starting dates. I’ve used this for both selling answering service and selling advertising. If they’re willing to give me an answer, they’ve mentally already decided to go with my company, even if they don’t yet realize it. The only time they vacillate and decline to pick one of the two options is if they’re truly undecided, have a concern I haven’t addressed, or aren’t a serious buyer.

Another pair of options is picking between two rate plans. But I never ask them to pick between the two highest packages. Instead, I ask them to pick between the one I feel will work best for them and the one I feel will work second best. That way we both win. I get a sale, and they get a solution that will work well for them.

There’s a variation of the either/or close that I call the special incentive close. We’ll cover that in the next chapter.

Sales Success Tip

There’s much we can learn about the sales process and selling techniques. Don’t discount the advanced skills and learn whatever you can, but also embrace what is simple and works for you. Use it as your go-to closing technique. For me it’s the either/or close.

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer ServiceSticky Sales and Marketing, and Sticky Leadership and Management featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan is an entrepreneur and businessman who has managed, owned, and started multiple businesses over his career. Common themes at every turn have included customer service, sales and marketing, and leadership and management.

He shares his lifetime of business experience and personal insights through his books to encourage, inspire, and occasionally entertain.

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Business

A Day of Sales Calls

Interact with Sales Staff in the Field to Determine Their Strengths and Weaknesses

By Peter Lyle DeHaan

Mitchell came to us in need of a second chance. With a lifetime of experience in the business world and history of sales success he seemed overqualified to work for our company. But he assured me this was the right job for him at this point in his life. I agreed and offered him the position.

It was a newly created role in a large but underdeveloped market for us where we had a presence but little market share. The metropolis offered much potential, and Mitchell relished the opportunity as well as the challenge. He breezed through training. I set him up in an office, and he went to work.

Author and blogger Peter Lyle DeHaan

He quickly filled his sales funnel with promising prospects, and we were both excited. But he struggled to close them. On each weekly phone call, he’d regale me with the potential that sat in his sales funnel, especially his most promising prospect. Should he close the sale, it would be our biggest client to date.

We both expected it to happen, but after a couple months of futility, he was perplexed, and I was frustrated. I needed to see him in action if I hoped to figure out what was going wrong.

I blocked out a day on my calendar and told him to schedule appointments with his three most promising prospects: one in the morning and two in the afternoon.

The Meeting Objective

On the appointed day, I drove to his office, picked him up, and we headed to his first appointment. It was the big prospect he’d been courting for months. Before we went in, I asked him what his objective was for the meeting. He didn’t understand my question.

I explained that each interaction with a prospect must have a goal to move them forward in the sales process. This could include providing them with more information, learning how soon they wanted to move forward, or asking for the sale.

He wasn’t sure.

I suggested we try to find out how quickly they wanted to act and see if we could get them to commit to a date when they wanted this to occur. He concurred.

I told him to take the lead. He agreed.

He introduced me to her and began making small talk. She seemed irritated. After letting him flounder for a few minutes, I eased myself into the conversation.

“In an ideal situation,” I probed, “when would you like to see a transition to our service occur?”

Her outlook brightened a bit, and we launched into a meaningful discussion about her business, a strategy to move her account to us, and what outcomes she could expect.

Twenty minutes later Mitchell and I left her office with a signed contract and a check in hand.

Once back in my car, Mitchell looked at me and shook his head. “How did you do that?” I explained to him my secret—which I’ll reveal to you later, in the first chapter in “Part 2: Sales Tips.”

A Couple of Feds

As we drove to our second appointment (which was a business lunch at a local diner, something I hadn’t expected or wanted), we discussed the objective of the meeting. This is when I learned that we weren’t meeting with someone in his sales funnel, but with a new lead that had only come in yesterday. He hadn’t done any work on it.

Knowing what my first question would be, however, he already had an answer for the goal of our meeting: it was to find out what they were looking for. This is something he should have done before setting the appointment. I explained that prequalifying a prospect was a smart idea before agreeing to meet with them, especially for lunch.

I wore a suit and Mitchell wore a sport coat and tie. This was the perfect attire for our first meeting, but apparently a bit overdressed for our second. The two men wore business casual. When we sat down in our booth, one glanced nervously between Mitchell and me. Then he blurted out, “You two look like a couple of feds.” He shuddered a bit and forced a smile. I did too.

If he had experience with federal agents interviewing him and was uncomfortable because we reminded him of those interactions, I wondered what type of business he was in and if we wanted anything to do with him or his company.

Again, we had agreed that Mitchell would take the lead, and I would step in if I felt it was appropriate. The guys were tight-lipped about the type of business they were starting and talked in vague generalities that could apply to most any entrepreneurial endeavor. This made it hard for us to evaluate how we might be able to help them or even if we could.

Not meeting our goal, we finished our meal and paid the bill. Mitchell tried to follow up with them later, but they ghosted him. Given how uncomfortable I was with their demeanor, I wasn’t disappointed.

A Cancellation

As we left the diner, I learned that our third appointment had cancelled the day before, and Mitchell had been unsuccessful at finding a replacement prospect to meet with. I was disappointed, feeling I hadn’t used my time with Mitchell to its full advantage. I suspect he was just as discouraged.

Summary

We did earn a large sale that day, landing the biggest client our company had ever seen. Even though I closed the sale, I gave him credit for it, explaining that he had nurtured the prospect and prepared her to buy. Also, we had a 50 percent close rate for the day, another thing to relish. I tried to encourage him by focusing on the positives.

However, I also had doubts, wondering if Mitchell could be a successful sales rep for our company. Though he had the experience and the background, the results were decidedly lacking. I needed to figure out a way to help him turn things around—or we would need to part ways.

Sales Management Success Tip Periodically go on sales calls with your sales team, especially those who underproduce. Demonstrate sales techniques to them by example. Use each situation as a teachable moment. Figure out what you can do to help them succeed.

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer ServiceSticky Sales and Marketing, and Sticky Leadership and Management featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan is an entrepreneur and businessman who has managed, owned, and started multiple businesses over his career. Common themes at every turn have included customer service, sales and marketing, and leadership and management.

He shares his lifetime of business experience and personal insights through his books to encourage, inspire, and occasionally entertain.

Categories
Business

Align Marketing Tactics with Sales Skills

When the Execution of Your Plan Falls Short, It Might Be Time for a New Plan

By Peter Lyle DeHaan

In the book-publishing community, it’s no secret that most authors would rather write than promote their work. In this regard, I am like most authors. Yes, some writers are extroverts and love the activities around launching and promoting a book. Most, however, are introverts like me.

Author and blogger Peter Lyle DeHaan

Add to this the sage advice to “Do what only you can do, and have others do the rest.”

Outsource Sales and Marketing

That’s why I chose to outsource the sales and marketing of my books.

At various times over the years, I’ve hired a book promotion specialist, a book launch team manager, an online ad agency, a book marketing assistant, a social media manager, and an SEO expert. They comprised my marketing tactics.

None produced a positive return on investment, and many produced no return at all. Yet during this time I shelled out tens of thousands of dollars and sold few books for my investment.

DYI Marketing

That’s when I realized I had two choices: don’t do any book promotion or do it myself. Reluctantly, I decided to do it myself, all the while knowing this would detract from my writing schedule and reduce my output.

I looked at the conventional book promotion strategies of traditional book publishers, all the while suspecting that much of it no longer applied in today’s rapidly changing publishing landscape. I made a list.

I also added what leading indie-published authors were doing. Some of the items seem doable and others turned my stomach; just thinking about them made me nauseous.

Yes, Maybe, and No Marketing Tactics

I divided the items into three categories: yes, maybe, and no. This resulted in a list of marketing tactics I was open to do, a second list of activities I was willing to do if needed, and a final list of tasks I was unwilling to do, the nonnegotiables.

With clarity in place, I set about developing a book marketing strategy that would tap into my “yes list” and avoid my “no list.” I’m currently implementing my new marketing plan, and it’s producing results.

Application

Consider the lessons we can learn from my development of marketing tactics tailored to my personality, ability, and willingness.

Imagine you’re a sales and marketing manager whose strategy hinges on your sales staff making cold calls to move prospects into the sales funnel.

Unfortunately, your team struggles making cold calls and resists doing so, even to the point of engaging in passive-aggressive behavior. Repeated efforts to give them needed training and supportive encouragement have failed. And your threats have gone unheeded.

Two Options

You have two alternatives.

One consideration is to replace your sales team with employees willing to engage in cold calls. The other possibility is to look at your existing team’s strengths and weaknesses to develop a strategy around them. (Maintaining the status quo isn’t an acceptable solution.)

Though a fire-them-all-and-start-over approach may tempt you, I encourage a more enlightened solution of keeping them employed and working with them to tailor a more conducive sales and marketing strategy.

This path is even more important if you struggle to find qualified employees in the first place.

Though I doubt your issue is over making cold calls (does anyone do that anymore?), look for a disconnect between your marketing strategy and your team’s adherence.

If you can correct this misalignment through retraining them or changing your management style, great.

Otherwise, evaluate your team’s strengths and weaknesses to develop a fresh sales and marketing plan, one tailored to what they do best and avoids what they struggle with or do poorly.

I did this for my book sales, and you can do it for your team too.

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer ServiceSticky Sales and Marketing, and Sticky Leadership and Management featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan is an entrepreneur and businessman who has managed, owned, and started multiple businesses over his career. Common themes at every turn have included customer service, sales and marketing, and leadership and management.

He shares his lifetime of business experience and personal insights through his books to encourage, inspire, and occasionally entertain.