Eating Peas with a Knife…

How many businesses operate this way? For sure, it’s a balancing act. More than likely, it’s a waste of time. Let’s look at how some business cultures evolved based (loosely) on the evolution of eating utensils. At one point Europeans ate with their hands and a knife they carried with them. Although forks existed, they were rather large and only used to lift large cuts of meat out of pans or the fire or to hold it down while it was being carved. When forks did show up in Venice, they were condemned by the Church who believed that their use was contradictory since God provided fingers for us.

So then, the use of forks was practically sacrilegious. By the time the Pilgrims landed at Plymouth Rock, forks were not as common as in Europe. Spoons were more so and oddly used as forks to hold meat while it was cut. The meat was held down with the spoon in the left hand while cutting the meat with the knife in the right hand. Then they would switch the knife to the left hand and eat with the spoon in their right hand. In fact because of this odd behavior, Americans today continue to hold their meat with their fork in their left hand and cut with their right and switch before taking a fork full. Whereas, in Europe diners continue to hold their meat with their fork in their left hand, cut with their right and do not switch hands.

The use of a fork was still not common in America even by the time of the Revolution. How does this fit in to how businesses are operated? Simply put, some businesses are refusing to grasp (the pun is quit intended) the new technology. Or, worse yet, trying to use the old forms in a manner in which they were not intended. Take the new and still emerging digital media that was created by the internet. Many businesses are still holding on to the traditional and very much offline print, radio and television based media.

Sure, they mention or place their website address in their advertising as part of the call to action but it’s as ineffective as switching from a cutting posture to an eating posture. It is no more efficient than trying to eat peas by balancing them on a knife. At this point, I’m going to substitute peas with P’s; more precisely the basic elements (Product, Price, Place and Promotion) of the tried and true marketing mix.

Yes, if you’ve read this column faithfully (thank you by the way) this is not the first time I’ve gone on about the Four P’s and it won’t be the last! And, yes, a review is necessary. And, yes, I use 5 P’s in my Marketing Engineering Assessment. The first P – the product(s) or service(s) you sell along with their benefits, advantages and features may or may not be common knowledge. Not every one of your current or potential customers knows or easily understands everything you do or offer.

The Second P – price. Are the product(s) or service(s) you offer defining you in the marketplace as low-ball, expensive or, as a great value? Price is all about dollars and cents whereas value is all about an exchange of the consumer’s time, expectation and yes, money for what you are offering. In other words, is it worth it? The Third P – place. Where you do business can be anywhere today.

You can operate a “bricks and mortar” location with or without internet sales support or, you can do all of your business on the internet. Regardless of where it is actually conducted, the value of quality, selection and speed of acquisition must still apply. The Fourth P – promotion. How you promote your business is what this month’s column is all about. It’s time to assess whether the traditional offline advertising methods are of any value to you and to carefully determine if the new and emerging digital media such as social media, web banner advertising and video will serve your needs better.

The Fifth P – people, is an important aspect of digital media. Although advertising print space and radio/TV time costs can be dramatically reduced, there is a need to increase the time devoted to maintaining and managing your social media such as Facebook and Twitter. Digital media results, however, are far more apparent and measurable. You can continue using your advertising spoon and knife or switch to something more practical.

Is You Is or Is You Ain't?

Back in the 1930's, song writers Billy Austin and Louis Jordan wrote "Is You Is or Is You Ain't My Baby?" It was performed by Louis Jordan & His Tympany 5. Here's the last line and the chorus follows: A man is a creature. That has always been strange. Just when you're sure of one. You'll find that he's gone and made a change. (chorus) Is you is or is you ain't my baby? Well, maybe my baby found somebody new. Or is my baby still my baby too?

Is you is or is you ain't ...
There's a lot to be said about this song in the context of business and customer relationships. Can you hypothetically ask your customers: Is you is or is you ain't my baby? Should you hypothetically ask yourself: Well, maybe my baby found somebody new?

But...
But. Now there's a little word with a heck of a lot of clout! Think of how that word can destroy your perceptions of, well, about anything. For instance:

• I love you, but... or,
  
• The check is in the mail, but... or,
• The warranty covers everything but...
  

So, what you think your customers might think about you, isn't as important as what your customers really think about you:

• "The meal was fine, but..."
  
• "Sure, the service is good, but..."

Salespeople, Marketing & Management - Oh, My!
Ask yourself these important questions: Are both your Salespeople and Marketing representing you the way you want to be represented or, the way you think you're being represented? Do you realize that even good Marketing can make things worse if your Salespeople don't deliver as the advertising promised? Do your Salespeople understand the needs of both current and potential (new) customers?

These questions might keep you up at night but they might not be answered as honestly as required. However, if you were to ask your customers the following questions directly, they may be more forthright with their answers. For example: Ask them how they feel about their current or past experiences with your organization. How would they rate you based on service and reliability or, price and selection? You know, their answers may pleasantly surprise you. This kind of analysis isn't always about doom and gloom! Also ask them if your Management always resolves their issues to their complete satisfaction.

Sales Ain't Off for Nothin'...
After this, I'll challenge you to continue believing that your low or lackluster sales can only be blamed on the economy. But, as you'll soon learn, if your honest about it, is that your Salespeople can make you or break you. Your Marketing, even if it's very good, can also harm you. Of course, if it's bad, it needs to be fixed. As for your Management, or perhaps lack of it, it has to be fixed, too! If the "fish" smells from the head down, it also stands to reason that a fresh fish is the result of a fresh head.

Customers Is or Customers Ain't...
In the end, there are only two types of customers - happy customers and not happy customers. Happy customers buy and keep on buying as long as they're happy. Not happy customers may buy, but they don't buy as much and as often as happy customers. I know what you're thinking. Not happy customers don't buy. Wrong! A customer is only a customer because they buy. Happy customers buy, buy more and buy more often. They also have a silly habit of bringing new customers with them to buy, too. So, is you is or is you ain't doing what you're supposed to be doing? And, are your customers happy or ain't they? You can't just sit and wonder if they found somebody new!

Housekeeping...

Well, this will be the last post for today. I had to get caught up. As they say, the preacher is always the worst sinner in the congregation! And, the shoemaker's kids have no shoes. I hope I can stay on the straight and narrow.

But, although many people believe that Samuel Johnson said "The road to hell is paved with good intentions," he didn't! A twelfth century saint named Bernard of Clairvaux may have originated it since he was noted as saying, "Hell is full of good intentions or desires."

Let's see how I do...

Mind Your P’s & Clues!

Five P’s

I’m constantly asked what a Marketing Engineer does. Well, since I’m the only one I know who is a Marketing Engineer because I created the title, I do Business Engineering and it’s based on five P’s; People, Product, Placement, Price and Promotion. Some of you are wracking your brains trying to remember something they learned from Marketing 101. Actually, the classic four P’s (marketing mix) are taught in college. People aren’t included and I’ve lumped classic Place with Placement What’s so important about this? Knowing your P’s will give you the right clues as to what’s going on with your business.

People...

We’re all people, whether we’re the business owner, the customer or the employees. Include your managers and your family if they are involved in your business. Making people happy is one thing. Keeping people satisfied is another. Someone said, “What we are never changes. Who we are is always changing.” Many businesses forget that each employee identifies the entire company. One bad apple will spoil a whole barrel of image!

Product...

Or, service if that’s what you provide. What is it – really? Can you simply define it? What consumer problem does it solve? Compared to other products or services, how good is it and what value does it represent to the consumer? Customers seek out products and services to solve problems. If you need or want something and you can’t find it – that’s a problem! Your salespeople are then problem solvers. I tell my students, when you help solve a customer’s problem, you are properly serving them. Service then is selling.

Place...

I’ve bundled a couple of place concepts in this one. Place traditionally is about distribution. Your "brick and mortar" place of business. Is it conducted at your street location, over the internet or the phone or does your sales go out to your customer’s place of business? I also ask you to consider that place in the consumer’s mind where your business or product resides. Are you positioned at the top of their mind or way in the back? Speaking of positioning, what’s you competitive position. Are you the largest, oldest, first, best…

Price...

Now he’s a subject worth at least an entire column! How does your pricing compare to that of your competition? Well, that’s not as important as the value it represents to your customers. Buying is a simple act of exchanging one value for another. A good buy is paying less for something you think is worth more. If you think your customers only buy on price it’s because they have no other way of differentiating your business from your competitions’. Fix this problem now!

Promotion...

Ok, call it advertising. Good advertising can do more harm than bad advertising. Good advertising can send customers to a business that does not meet their expectations. At least bad advertising doesn’t compound a bad situation. Before you go out and advertise make sure your People, Product, Placement and Price are doing a good job to promote you – then you can advertise to tell your story; a story that your customers can embrace.

Five More P’s of Another Persuasion

After all, Business Engineering is about:presenting solutions based on observation and analysis. So remember the...

• Proper
• Preparation
• Preventing
• Poor
• Performance!

Crossing the Frontline

Give Them an Inch...
The other day I was assisting a client with their new e-tail (that’s online retailing) venture. We were reviewing some of the still yet to be ironed out customer service kinks such as returns and exchanges. What had been revealed to me about my client’s past experiences with their customers was both shocking and a reminder of the foibles of human nature. The old saying of giving them an inch and they’ll take a mile holds true. In order to avoid further unpleasantness even in a totally cyber situation, we had to create a much defined service policy.

Last month’s article delved into the question of whether or not the business’s frontline (those directly selling to or servicing your customers) was robbing their bottom line. In the article, I reviewed how to find the best employees you could afford in order to service your customers in the manner they expect to be served. However, after my client meeting, I realized I could not end the fifth of my P series (Product, Price, Place & Promotion and People) without taking customers into account. Yeah, even people you can’t see!

Bricks and Mortar...
Sure, any of you who are traditional bricks and mortar retailers are already thinking about your inventory shrinkage due to theft, fraudulent returns or exchanges. Some customers, however, steal a lot more than your inventory but, I’ll get back to that later. I tell my students that the old axiom that the customer is always right is not one-hundred percent accurate. More correctly, it’s what the customer thinks is right that allows them to BELIEVE they ARE correct. Change the perception and you change the reality. Selling online? Same thing – define the parameters to assure no misperceptions and to keep a grip on reality. Spell it out!

Let’s look at consumer perceptions and market realities. Have you ever noticed that Starbucks shops are located in Target stores and not Wal-Marts? If we look at Starbucks customers a bit closer, we may also notice that they are quite different than Dunkin Donuts customers. Both groups are as equally passionate of the brand they prefer but that’s where any similarity ends. To simplify my illustration, let’s say that Starbucks customers have a need for interaction (affection). The Dunkin Donuts customers require a need for speed.

Character...
Why is that? And, how do these characteristics translate into something else? Customers everywhere are seeking solutions to their “problems” as it were. A cup of coffee is a solution to a perceived need (or want). They frequent the businesses and buy the brands they support because they’re offered an expected solution based on their previous experiences. But, what is the difference between a Starbucks coffee versus one from Dunkin Donuts? It’s obviously significant to both groups. How does any of this relate to customers undermining your bottom line? Please read on…
I’m going to offer up what I believe is a possible correct answer – personality. It encompasses character, behavior, qualities and individuality. If I may quote Henry James, “What is character but the determination of incident? What is incident but the illustration of character?” All any customer needs to be happy is a sense of control, a feeling belonging and a little affection for showing up. Each visit to your shop or business is an incident that should offer customers a pleasant expectation of some sort. Seems simple right? Give them what they want; offer them what they need. But, what about those, that regardless of your best intentions, reveal their, um, character?

Personalities...
There are many characteristic customer personalities. There are the fixers who seek to either find their own answer or solutions or, completely place their trust in those they believe have the answer or solution. Their crime is asking lots of questions and requiring detailed demonstrations. There are the grinders who can not articulate what it is they want yet expect you or your employees to define it; most oftentimes without a resulting decision or sale. Ah, the know-it-all whose sense of entitlement requires; no demands, your full and complete attention regardless of the reality of the situation. They will also, more then likely argue every point you make. And finally, there are the self-centered who fail to realize that there are other inhabitants of this planet or, other customers in your store. Perhaps it’s the universal social stresses that we all endure. Perhaps they are so overwhelmed by their modern existence as to lose their common sense or decency when they chose to cross your frontline. Hey, they don’t call it the frontline for nothing!