Category: Business

Business articles by Peter Lyle DeHaan, PhD

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Business

Learning from History

By Peter Lyle DeHaan, PhD

One of the assignments I enjoyed most in college was analyzing case studies. I was, and continue to be, fascinated with learning what founders and their companies have done—both right and wrong. While the success stories are the more exciting and inspirational, it is the failures and missteps that are the more enlightening and educational.

It should not be surprising that I take most seriously the adage, “Those who fail to learn from history are doomed to repeat it.” For those in business, the best histories to learn from are business case studies, especially those accounts of the downfall, demise, or defeat of once prosperous and successful businesses and entrepreneurs. Of course, scrutinizing the steps taken in a remarkable turnaround are also instructive, as well as encouraging for anyone faced with a formidable uphill battle.

I consider the phenomenal success stories, which are uplifting, to be “light” reading and as much entertaining as educational. Success stories abound of the cash-strapped entrepreneur who by focused vision and through sheer determination, bootstraps a dream into a profitable and flourishing business.

In like fashion, there are many accounts of the big-business corporate executive who leads his or her company to the next revenue plateau, into a new line of business, or to revolutionize an industry. Rare, however, are the entrepreneurs who starts with nothing, these individuals are a unique breed. They have the ability to grow, change, and mature as leaders, in parallel with the evolving entity they parented. These are the business superstars; three such examples come to mind.

The first is Steve Jobs who, with buddy Steve Wozniak, yearned to bring the power of computing to the masses. Financed by the sale of their only tangible assets, the pair began making computer kits in a parent’s garage. Apple computer was born and though Jobs was for a season extricated from the company he co-founded, he to the helm, guiding this multi-billion dollar a year company until his recent passing.

The next example is found in Bill Gates and Paul Allen who founded Microsoft. Starting in 1975, by providing operating systems and programming languages, they parlayed their fledgling company into another multi-billion dollar a year juggernaut.

Then there is Michael Dell who started assembling PCs in his college dorm room, hence the humble beginnings of Dell Computer. Now also a multi-billion dollar a year company, Dell set the business and operational standards which changed an industry.

Many, if not most, businesses started with equally humble beginnings. Tales of founders sleeping in their offices so that they could offer 24/7 coverage (and save money on housing). Others started in their apartment, out of a converted warehouse, from their front porch, or even in a garage. Fortunately, those businesses that survived soon left these inauspicious beginnings. In true entrepreneurial fashion, they grew their meager investment into viable, ongoing concerns, quickly moving to more suitable and appropriate environs.

While it is not realistic to expect most businesses to grow into the multi-billion dollar size of Apple, Microsoft, or Dell, it is wise to consider their founders’ paths. Indeed, the precise traits and characteristics that serve one well as an entrepreneur, can become a hindrance and counterproductive as a business grows and matures.

Although Steve Jobs, Bill Gates, and Michael Dell all made this transition (and had books written about them as a result), few individuals can successfully transform their leadership style each time their enterprise metamorphoses into the next iteration of scale, scope, and complexity. Case histories and business literature repeatedly shows that, all too often, the next plateau is met with disaster. Frequently, the entrepreneur turned reluctant CEO, micromanages his or her business, unconsciously reducing it down to a more comfortable size that he or she can successfully handle; at worst, the miscast founder mismanages the business into insolvency.

The astute entrepreneur, well aware of this trap, can employ several strategies to avoid this. One technique is to form an advisory board, consisting of those owning and running larger concerns, to guide the founder’s nascent climb into management acuity. Some bring in an experienced and seasoned business manager to handle the day-to-day management, allowing the entrepreneurially focused founder to concentrate on visioning, planning, or innovating — whatever he or she does best and enjoys most.

One wise founder confided that he always hired management people who were over qualified and paid them accordingly – knowing that as the business continued to grow, they would easily rise to the occasion. Others go back to school and earn their MBA. Another approach is founders who send their kids to college, in anticipation that the next generation can guide the company to the next level and beyond. But that brings up a second caution for small businesses – passing the baton to the next generation.

Although studies differ by degree, they all confirm the majority of small, family businesses are not successfully passed on to the second generation and only about 15 percent make it to the third. There are many theories as to why this is the case. The leading supposition is that the second generation, not needing to make sacrifices to launch the business, lacks the requisite drive and wherewithal to persevere. Another is problems occur when the business is handed over too quickly to adult children who are still too young or too inexperienced.

Some entrepreneur parents attempt to avoid these problems by making their successor children start at an entry-level position and work their way up the organization. But this fast-track status often backfires, engendering resentment from non-relatives who may be otherwise more qualified, better educated, and possessing greater tenure. In attempts to avoid this pitfall, some founders add a stipulation for their children to earn a degree and put in time at another company, gaining valuable experience and acumen before joining the family business. Although this final approach is the one that seems to offer the greatest chance for success, it is by no means a sure-fire strategy.

Other growth problems occur when a single location business adds a second location or acquires a geographically disparate competitor. Since most small business owners employ the simple, yet effective style of “management by walking around,” they find it impossible to successfully and simultaneously manage multiple locations– this is especially true for a service business. Indeed, this common management style does not work for long when the manager is not physically present.

As stated earlier, the results are usually disastrous, rooted in either micromanagement or mismanagement that thwarts growth, hampers quality, and limits profitability. The solution is simple, albeit difficult. Quite simply a change in management style is required. Either the founder must adapt a new way of doing things or find someone else who can, giving them the leeway and latitude to do their job. However, neither approach is comfortable or painless for an entrepreneur used to putting his or her mark on everything that happens and in making all decisions.

A fourth problem faced by the entrepreneurial founder is addressing life-cycle changes. While some may have both the drive and ability to run a business for the remainder of their lives, most get to a point where they want to scale back, be it not handling the day-to-day issues, taking longer vacations, semi-retiring, or not working at all. These are all various forms of letting go; it is hard, if not impossible, for someone who sacrificed to launch a business, makes every decision, and oversees all activities.

The solutions to the first three entrepreneurial dangers all apply to this situation. If there is a son or daughter interested in taking over the business, this may be the best solution, providing there is time to do it properly and correctly. Changing one’s management style is another option, just as is required for the growing or expanding enterprise. Still, all too many founders find themselves in a position where their kids don’t want the business and they can’t change their management style, so they opt for the only other solution; they sell the business.

Regardless of the situation or business dilemma one faces, be assured someone has encountered it before. Don’t struggle with a problem as though it is unique, because it is not. Do some research, read some business books and case studies, and whatever you do, learn from history so that you are not doomed to repeat it.

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer Service, Sticky 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

Measuring Marketing Effectiveness

By Peter Lyle DeHaan, PhD

There’s an alarming trend among marketing folks, especially those focused on e-marketing. Their perspective is if marketing can’t be measured, then it’s not viable. This is incorrect; some marketing results simply cannot be tracked.

Consider print marketing. You can’t count the number of impressions, clicks, or conversions. You have no way of knowing how many eyeballs saw an ad, how many positive, subconscious imprints were made, or the degree to which a brand was reinforced with each view.

The reality is, every time someone sees your ad in print, the status of your brand is elevated in their mind and your organization is held in higher esteem.

This makes prospects more likely to click and to buy when they see you online. And this increases the likelihood they’ll answer your salesperson’s call and ultimately buy your products or services when they have a need.

Without the support of print media advertising, the salesperson’s job becomes more difficult and their sales will be lower. Just because it’s hard to measure the effectiveness of certain marketing, doesn’t mean it should be skipped. Doing so puts an organization’s future at risk.

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer Service, Sticky 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

Is Gamification a Trend or a Fad?

By Peter Lyle DeHaan, PhD

I was quite skeptical about “gamification,” the use of game concepts to motivate desirable behavior among customers (or employees).

I reasoned that while expecting customers to “play games” might result in a short-term increase in brand involvement or purchases, I doubted if it was sustainable. However, I am rethinking my knee-jerk assessment.

As a Netflix customer, I was likely involved in a basic gamification effort. As I posted movie reviews on their site, I was given a “reviewer rank.” As I posted more reviews, my rank would improve.

At one point I had worked my way to the neighborhood of 5,000 out of several million reviewers. Bettering my reviewer rank became a game for me. Yes, I enjoyed watching the movies and, yes, I found it rewarding to share my input with other Netflix customers, but the validation of my efforts came through watching my reviewer rank improve.

However, if it was a “game,” the problem was I didn’t know the rules. I assumed more reviews were good, more readers of my reviews were beneficial, and more people flagging my reviews as “helpful” in comparison to “not helpful” was also a factor.

But this could not be verified, as everything I did was competing with what others did. So I could do something to improve my reviewer rank, but if others did even more to improve theirs, my rank would actually decrease.

I reviewed 71 movies and then abruptly stopped when I realized I no longer enjoyed doing so.

It seems gamification may work after all — at least for a while.

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer Service, Sticky 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

Why Agents Should Stop Selling and Start Serving

By Peter Lyle DeHaan, PhD

I needed to order some ink cartridges for my printer — the kind I can only buy directly from the vendor. There was a problem with the website, so I picked up the phone to place my order.

I told the agent I wanted to order two black ink cartridges.

Not surprisingly, she suggested I buy a package that included two color cartridges as well. “No thank you, just black.”

Upon discovering the age of my printer, she tried to sell me a new printer. “No thank you — I just need ink.”

When I acknowledged that I own several computers from her company, she asked if they were working okay and did I… “No I just want to buy ink.”

Then she offered me a special price on anti-virus software for only…, “No, I only want ink!”

Next, she inquired if I was interested in a maintenance plan to… “NO, just ink!”

Perhaps she was supposed to try to upsell me five times or maybe she was on commission. I don’t know, but I do know the call took twice as long as it needed to, I became irritated, and the likelihood of me buying another printer from them is highly unlikely.

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer Service, Sticky 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

Put the Customer First

Achieve Better Outcomes by Making the Prospect a Priority

By Peter Lyle DeHaan, PhD

I put off buying things. It’s not because I procrastinate (at least not too much), don’t like making decisions, or don’t want to spend money.

Sadly, the reason I often avoid buying what I want or need is simply because it’s too much of a hassle. More to the point, going without some items is less inconvenient than investing the time and enduring the frustration to try to buy them.

Author Peter Lyle DeHaan, PhD

Too many of my negative experiences relate to cell phones. It’s a sad commentary on the industry. Fortunately, I’ve seen some positive correction in recent years. Nevertheless, the following experience from a couple decades ago still supplies us relevant insight.

For quite some time—okay, more than a year—I considered getting three more cell phones. I expected to sign up for a family plan, adding phones for my wife and our two kids.

At a few bucks more each month per additional phone, it was a no-brainer. I could then find my wife when she was out, keep in touch with our daughter in college, and give a nice perk to our teenage son.

However, I put off moving forward because I so dreaded the process.

A Rigid Requirement

The time to act finally came. I gathered my courage to move forward. I called my existing carrier. They confirmed I’d met my contract requirements and could make changes.

“What I want,” I explained, “is to get on your family plan and add a couple of phones.” I was even willing to buy the other phones.

“No problem,” the rep assured. “Each additional phone is only ten dollars a month and some phones are free if you sign a one-year contract. . .and,” she added, “we can replace your current phone too.”

This sounded too good to be true, but before I could tell her to go ahead, she interrupted my short-lived euphoria.

“Oh, there’s a problem. . .” The problem was that they required me to be on a plan with more minutes—many more.

I tried every angle I could think of. More phones, fewer phones, buying the phones, longer contract, and not replacing my current phone.

She was intractable. “No, you still need to move to a bigger plan.”

Doing so, and adding just one more phone, would more than double my rate. I’m not opposed to spending money, but I hate wasting it. Her solution didn’t seem very family oriented. I told her so.

Then I tried an emotional gambit. “I guess I’ll just need to cancel my service and go with another carrier.”

“If you need to, go ahead, but you won’t find a better deal.” Her arrogance appalled me. “We’ve all got basically the same rates.”

“Okay, let’s leave everything as is for now,” I said, not wanting to burn my bridges.

A Cavalier Attitude

Now it was time for plan B.

If only I could talk to someone face-to-face, to do business with a local person who would take a personal interest in helping me. I headed to the local store of a national carrier that does lots of TV advertising.

Several aspects of their pitch appealed to me. I was confident they had a plan for me, and I intended to complete my mission in one stop.

I walked in the door and, as my eyes adjusted to the lighting, a stereotypical salesperson charged toward me—must be they were on commission. Brashly, he ushered me into his office and grilled me on what I wanted.

With each request, he would nod and affirm he could do that. He was typing things into a computer and then he gave me a total. His solution was twice the amount of the family plan quoted by my current carrier. The rates weren’t all the same after all.

I couldn’t suppress my laugh. This irritated him.

“Okay,” I said. “Now, let’s get realistic.”

“Nope, that’s the best I can do,” he answered.

Thinking we were still pursuing a mutually desired goal, I began to reply, when he stood up and gestured toward the door.

“Sorry I can’t help you.” He said the right words, but his tone conveyed the opposite. Maybe he wasn’t on commission after all.

Not ready to give up, I asked if he had any literature about what we had discussed. “We don’t have any.” He sneered. “It’s all online. Just go to our website and order your phones there.”

In five short minutes, I went from ready-to-buy to unable to leave fast enough.

Online, I later discovered his company had a much more attractive package, closely matching what I wanted. I’d have bought it had he only offered it.

A Calculated Lie

On to plan C. Originally, I intended the phones as a surprise, but I needed help. I enlisted the aid of our daughter, who was home for the summer. Having just completed her summer-school job, she had extra time on her hands.

We listed the features we wanted. Then she got busy doing research online. The next day she presented me with a spreadsheet of comparisons. She explained what she learned, we talked about options, and she made a recommendation.

It required a two-year contract, so I wanted to make sure it was right. We discussed each plan’s weaknesses, the fine-print exceptions, and ways they might charge us for services we thought were free.

I agreed with her recommendation and we made a list of questions, the chief one being whether the plan’s coverage area included the city she’d move to next year.

I called the carrier and verified our understanding of the details. He confirmed everything, and a sale was imminent.

Last, I asked if they covered the city in question. “Yes, we do.” The rep said this a bit too quickly and with a false confidence. I doubted his answer and prodded some more. He kept to his answer, but I doubted his honesty.

I ended the call without placing an order. It was good that I didn’t, as we later found a coverage map—albeit a bad one—online. The map showed the city in question annexed from the coverage area.

He lied to me—imagine that. I assume he knew the truth but reasoned that before I figured it out, he’d have made a sale and earned his commission, with no recourse on my end.

A Successful Outcome

My daughter and I discussed our remaining options and revisited the website of our fourth choice. Thinking I would once more attempt working with a local rep, I called their closest office. After several rings, a recording informed me that no one was available and disconnected me.

Next, I dialed their toll-free number. This rep was actually helpful. Why are accommodating employees such an anomaly?

She was the first truly pleasant and knowledgeable person I had talked to during this whole quest. She patiently answered my questions with professionalism. She confirmed the plan’s coverage and told me about their 14-day, no-obligation trial.

I placed my order. The phones arrived the next day.

Sales Summary: Put the Customer First

With my existing carrier, I was willing to buy a second phone, pay an additional $10 a month, sign a long-term contract, and run the risk of overage charges. They were only willing to upsell me and lost a customer.

At the second carrier, their rep got greedy—or was undertrained. He ushered a ready-to-buy prospect out the door.

For the third carrier, a cavalier lie on a critical issue dropped them from further consideration.

After a bad start at the fourth carrier, a well-trained, professional, customer-focused phone rep made a nice recovery and closed a sale.

Sales Success Tip

Seek to help your prospect achieve their goal, and you’re more likely to achieve yours.

Put the customer first.

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer Service, Sticky 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

A Different Perspective on Health Insurance

By Peter Lyle DeHaan, PhD

It happened again. It shouldn’t surprise me but it does. In fact, it has been said so often that most people believe it to be true and accept it as fact. What am I talking about? Once again, a politician has stood up and passionately, emphatically, and convincingly asserted that we, as citizens of the United States of America, have a right to healthcare.

Author Peter Lyle DeHaan, PhD

Wait a minute, we have a right to healthcare? Is it in the Constitution? Is it listed in the Bill of Rights? No, healthcare is not a right, but asserting that it is serves as an effective rallying cry for those who feel under-insured.

People who do not enjoy this “right” imagine themselves as victims and in need of a champion to rescue them from their implied substandard existence. Who will rescue them? The very same politician who pointed out this grave injustice in the first place.

Political rhetoric aside, there are several other misunderstandings about health insurance, as well.

According to Webster’s, insurance is the “coverage by contract whereby one party undertakes to indemnify or guarantee against loss by a specified contingency or peril.” The key words here are “contingency or peril.” Let’s look at some examples.

I have insurance on my house that will replace it if it is destroyed or suffers major damage. Without insurance, losing a home would be a financially devastating hardship. My homeowner’s policy doesn’t cover repairs or maintenance; those are things I can afford to pay myself.

My cars are insured as well. When they are new, I have full coverage in the event of a major accident. The thought of needing to unexpectedly shell out tens of thousands of dollars to replace a car is sufficient justification to pay for premiums with full coverage.

If people had the same expectations of their car insurance as they do for their medical insurance, here is how it might work. First, there would be a five dollar co-pay for gasoline. It wouldn’t matter if the tank were half-full or empty; the cost of a fill up would be five dollars.

This would provide little incentive to buy fuel-efficient vehicles—we would merely want cars with bigger gas tanks! Oil changes would probably not be covered, but that’s okay. Just skip the oil changes and when the engine seizes up, there’s nothing to worry about, because engine replacement is covered.

If you hadn’t reached your deductible, you might need to pay twenty percent of the “reasonable and expected” charges for an engine rebuild, but that’s all. Then there are tires. Your policy would pay to have tires replaced every two years.

It wouldn’t matter if you needed tires or not. So even though there is still usable tread on them, you have them replaced—insurance will pay for them.

Of course, if one of these new tires has a blow out before the two years are up, then you’re out of luck—and you get mad at your insurance company. What about the cost to keep that old beloved car running?

Not a problem, insurance covers it. Never mind that the parts are no longer being manufactured, hard to find, and expensive. Insurance will pick up the tab. The downsides to this incredulous scenario are that there will be lots of paperwork and you can only go to mechanics that are “part of the system.”

“Wait,” you say, “Cars are not people.” You’re right. They’re not. So, let’s talk life insurance. I want my family taken care of in the event I die unexpectedly. This sounds simple, but there is a decision to be made as to just how well I want them to be provided for.

The first reaction is that my family should be totally and completely taken care of—forever. Let’s see, that will be a policy for a gazillion dollars and the monthly payment will be…slightly more than my take-home pay.

Okay then, how about if they are partially taken care of but still need to work. Now the monthly insurance payment drops but is still too high. Okay, how much insurance can I get for fifty bucks a month? I’ll take it!

So insuring our lives is reduced to an economic decision, a cost-benefit calculation. If the tendency is to focus on the expense of life insurance, rather then the benefit, why not do the same for medical insurance?

Back when companies paid all their employees’ health insurance premiums, we, the insured, didn’t care about—or even consider—the cost of that benefit. But as premiums skyrocketed, companies began shifting some of that cost to employees.

This should have driven home the financial cost of company-provided health insurance, but for far too many employees it didn’t. Over the years, I’ve had employees come to me with this common lament about their health insurance: “I didn’t even get back as much as I put in!”

Health insurance isn’t like the lottery. The expectation of receiving more than you paid is simply ludicrous. Yet, for some reason, many people view their health insurance with such a mindset.

I submit they don’t think that way about their auto or home insurance, and certainly not their life insurance. Personally, each time that I write a check from the premium for my car, house, or life insurance, I am thankful that I didn’t need to use it!

What many workers don’t realize is that insurance companies are in the business to make money. Even non-profit insurance companies have to have this attitude. How do they make money?

Quite simply, their income (that is, the insurance premiums you pay) needs to exceed their expenses (that is, the claims they pay and overhead). That means, on average, no one is going to “get back as much as they put in.”

If they do, the insurance company has lost money on them. If the insurance company losses money on too many people, or for too long, they either go out of business or must dramatically raise rates.

Once we recognize the economic aspects of insurance (the cost-benefit perspective), are cognizant of the insurance business model (to make money), and jettison wrong expectations (getting more than we put in), we can move forward with an attitude that health insurance should cover the “big” things and we should take care of the rest.

Therefore, I want a policy that will cover a major surgery, a catastrophic illness, and prolonged treatments. I want to, and should be able to, cover the rest. But how can I do that?

Incredibly, the government has a solution! It starts with a high-deductible health plan. High-deductible means much lower premiums. This addresses concerns of catastrophic illnesses and bills that would result in financial ruin.

My own health plan deductible is $7,500. That means I am on my own to cover most, if not all, of my family’s medical expenses. This brings up the second aspect, a health savings account (HSA). An HSA lets me set aside money, tax-free, for medical expenses. This money can generate a return, which is also tax-free, and when I use the money for medical expenses, it is again tax-free.

With the high-deductible medical insurance combined with a health savings account, I have taken control of my medical costs and saved money. I make decisions for how and when money will be spent on medical procedures, just like every other expense I consider—on the cost-benefit of the transaction.

Lest you become aghast at me turning health considerations into a dollar sign, let me remind you that every other purchase is treated that way. So why not medical costs, too? After all, what we eat has a great bearing on our health, but it is common to bypass healthy and advisable foods based solely on their cost.

We buy life insurance not by how much we need, but by what we can afford. The place we live and the car we drive, both of which can have health ramifications, are again based on cost.

Originally, high-deductible health insurance plans and HSAs were intended for the self-employed, but they have been expanded to include small businesses.

We have an opportunity to adapt a new attitude and take control of rising medical costs; let’s do so.

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer Service, Sticky 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

Don’t Subject Prospects to Double Opt-Out Nonsense

By Peter Lyle DeHaan, PhD

Today I encountered something I had never seen before. I’ll call it a “double opt-out” process.

Author Peter Lyle DeHaan, PhD

More common is the double opt-in process, which requires a two-step procedure to be added to an email list. The first step is to submit your information to an online form.

Since anyone can add anybody’s information, the second step requires you to confirm your subscription by clicking on a link to an email that is subsequently sent to you. This insures that no one is inappropriately or maliciously signing you up for unwanted emails.

In my case, I had received an email—to a list I had never subscribed to—and clicked on the link to be removed. This took me to a page to be added to their “do-not-email” list.

When I selected that option, I was told I would be sent an email message to confirm my intent to be removed. Hence a “double opt-out” process.

There is no need for this, since both steps require me to proactively take action to an email that was sent to me.

Outside of someone hacking my email account, there is no way that anyone could inappropriately or maliciously unsubscribe me, so this “double opt-out” process is no more than a means to limit the number of unsubscribes.

Although I am irritated by the “double op-out” process, it is not as infuriating as email messages that contain no “opt-out” process at all.

Aside from spam, I see this on many emails originating from other countries—and from too many PR firms. Shame on you; you should know better. Not only is it the right thing to do, it is also legally required.

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer Service, Sticky 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

Would You Go Double or Nothing on Your Advertising?

By Peter Lyle DeHaan, PhD

I remember reading a notable case study in my college marketing class.

It was about cereal rivals Kellogg’s and Post. Prior to the Great Depression, their marketing efforts and corresponding market share was comparable. But when hard times hit, Post reacted by pulling their advertising, whereas Kellogg’s doubled their efforts.

When the economy rebounded, Kellogg’s market share surged ahead, while Post’s languished, never to again catch their rival.

While I would never tell someone to double their advertising, I am most willing to advise businesses against scaling back. When advertisers stop advertising, readers notice. (I know, because they often ask me about it.)

The absence of a regularly appearing ad where there once was one sends a negative message. It also fails to build and re-enforce the advertiser’s brand to potential buyers – and even places doubt in the minds of existing customers.

You never know when someone will be in the market for new equipment, software, or services, but when they are, you want them to contact you first.

Consistent advertising is the key to making that happen.

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer Service, Sticky 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

The Trials and Triumphs of Telephone Support

By Peter Lyle DeHaan, PhD

I’ve been thinking a lot lately about customer service via the telephone, even more so than usual. There are some things that I am excited about, while others are a concern.

Author Peter Lyle DeHaan, PhD

On the negative side, consider a large telecommunications company that provides cell phone, Internet, and long distance. Another is a large national banking institution. You know them both. They are notorious for their consistently abysmal record of poor customer service.

If I were to name names, there’s a good chance that either you or someone you know has had a bad experience with them. Actually, saying “bad” would be kind. Uncaring, unconscionable, and unethical come to mind.

With these companies, it seems that once a problem occurs, there is a strong likelihood that it will never be resolved. This is not an overstatement. People have only so much patience, and then they give up.

Excessive runaround, hours spent on hold, and limited energy to pursue a satisfactory resolution eventually overwhelm frustrated customers. Either they decide to accept the problem or they switch providers.

Although some of these companies’ frontline staff truly do care and try their best, others do not. Regardless, there seems to be cumbersome bureaucracy thwarting every move and complex support systems that make no allowances for nonroutine problems.

There is a real opportunity awaiting these two companies—and others like them—if they can just provide effective telephone support. With best-in-class phone support, I envision their cancelation rates dramatically decreasing, customer satisfaction levels skyrocketing, and a whole lot less negative press.

Maybe these companies are simply too big or offer too many services to be effective. Perhaps their help desks are mismanaged or bogged down by bureaucracy. But I suspect the underlying reason is that upper management treats support as an expense item that needs to be minimized.

The reality is that providing good customer service is good business—but one that requires an investment to fully realize.

I recently experienced the trials and triumphs of phone support after my house took a minor lightning hit, affecting our phone, Internet, and TV service. I called my satellite provider and spoke with a woman named Beth in the Oklahoma call center.

The first time I encountered a call center agent telling me her location, I thought it was a bit hokey and an overreaction to the backlash against offshore call centers. But it actually helped me establish a personal connection with her. In the same way, I was positively predisposed towards Beth from Oklahoma.

While waiting for various diagnostics to run, we had time to chat about call center stuff, which I greatly enjoyed. A service call was soon scheduled for the next day, when the problem was quickly fixed and service restored.

However, 2 weeks out and I’m still waiting for my phone and Internet service to be repaired. Multiple phones calls, missed commitments, wrong instructions, and conflicting information: that’s no way to run a business.

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer Service, Sticky 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

A Telemarketing Failure

Use Customer Communications to Strengthen the Business Relationship, Not Ruin It

By Peter Lyle DeHaan, PhD

Back in the days when I had a physical phone line, my provider changed names. I’m still not sure if this was the result of new ownership or merely a rebranding effort.

Regardless, there was much hype surrounding this news, arriving in the form of frequent mailed communications and email messages that spanned several months. It escalated into a telemarketing failure.

Author Peter Lyle DeHaan, PhD

Throughout all this, the phone company repeatedly promised that there would be no rate increases—all that would change was their name. These marketing messages also made hazy hints of new services but withheld helpful details.

My first sign that something was amiss came with my first bill under the new company name. Contrary to their repeated promises, their charges went up, almost doubling. When I called to complain, evoking their pledge, the rep informed me that my past bills had been incorrect.

Therefore, they were not bound by their no-increase promise but had the legal requirement to correct the errors. At least the increase was not retroactive.

This should have been sufficient warning to be wary of what they said, but I was slow to master that lesson. When they called me a few months later—a different marketing tactic—to “lower my monthly rate,” I was quite excited.

With this new plan, I could recover much of what I had lost when they had “corrected” my bill. The rep’s mastery of English was questionable, so at each step I repeated back to her everything I understood her to say.

“You’re going to lower my monthly base rate for local service to $17.95,” I concluded.

“Yes!” she confirmed and then transferred me for third party verification.

Excited, I listened to a recap of my order. “You’re signing up for our unlimited long distance calling package at $17.95 a month; this requires—”

“No,” I interrupted. “That’s not what I want at all.” Fortunately, the verification rep’s communication was clear and effective, saving me from buying something I didn’t want and rescuing me from their telemarketing failure.

So began an all-too-frequent barrage of solicitation calls from my new local phone company. Realizing that I couldn’t rely on what they told me, I’d end each interruption as fast as possible and return to work.

When my irritation over their incessant interruptions became intolerable, I begged them to stop calling me. This proved unsuccessful, so I resorted to hanging up on them. That didn’t stop the calls, but it gave me a small degree of vindication.

When their most recent incursion breached my normally idyllic workspace, I listened to their spiel with a more critical ear. To recap: they called a business line about residential service, they didn’t know my name, and they had no access to what services I used.

At that point, I doubted the call was even from my phone company. Perhaps they had outsourced calling to a shoddy telemarketing firm instead of a reputable one. Or was the call a phone scam? Regardless, it was a telemarketing failure.

When a poorly executed telemarketing effort is indistinguishable from a scam, something is terribly wrong. Intervention is needed.

Marketing Management Success Tip

When pursuing a telemarketing strategy, whether in-house or outsourced, make sure the firm represents your company well and respects your customers and prospects

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer Service, Sticky 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.