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Which is Better – Marketing or Sales?

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There is a difference between marketing and sales. It is important to understand the difference if you want to stay in business and make money.

I know some people who spend all their time and budget on marketing. They go out of business.

I know some people who spend all their time on sales (prospecting, sales conversations, sales pitches.) They also go out of business.

If you want to increase your revenue, don’t confuse the sales process with the marketing process… and vice-versa.

This applies to every kind of business — retail, service, B2B (business-to-business), wholesale, food service. It is always about the product that will meet the felt need of the customer at the time… and the attitude they had when they came in.

If you haven’t heard by now, people buy from those they Know, Like, and Trust — sometimes known as the KLT Factor. (If you run in marketing circles you will have heard this until you are sick of it. The word on this is out in some sales circles, as well. If this is new to you, use your favorite search engine and look it up. Check my blog, too. I have written about it before.)

The marketing phase is the “conversation” between you (your business) and the potential customer/client where they get to know you, decide if they like you, and come to trust you.

The part where you convince them to actually give you money is the sales phase. If you haven’t already laid the groundwork for them to know, like, and trust you, you are wasting your effort when you try to sell them. Additionally, you are probably losing the opportunity to ever have them as a customer.

Both phases are necessary and must be done in the proper order.

Think about your own experience as a customer. Do you buy from people you don’t know? (You have to have at least heard about them in order to even be a potential customer.) Do you buy from people (businesses) that you don’t trust? Do you buy from businesses you don’t like?

Your (potential) customer is just like you.
Successful revenue generation is a blend of marketing and sales.

Marketing is the education component. You are educating them on who you are, what your products are, why they can trust you, and why you are just like them. Yep, it is initiating and developing a relationship.

Sales has an education component, too. But that education is about the product/service and why it is the solution to their immediate need. (And it is only about 1 product/service at a time. You can sell them another product/service later.) You must continue the relationship that you started in the marketing phase. And you must deepen it.

At the right point (in the sales process), you ask them to give you money. When they do, the sale is completed. And you can be sure it’s because they know you, like you, and trust you.

Do you favor one over the other? Or maybe you disagree? Share with us in the comments and we can discuss amonst ourselves.

Need help with understanding more about this? Or figuring out if you are doing it as well as you might be? Contact me and let’s review your marketing and sales processes. If you’re like most businesses I see, there are things you can do to improve it. Of course, if you’re happy with your current revenue stream, then feel free to ignore this.


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Doing Business on the Edge of a Cliff?

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I recently went to a potential client’s site and have lots of lessons to share with you. This is an $8 million-per-year (revenue) business with the potential for much higher. However, they also are doing business on the edge of a steep cliff and don’t even know it. Yet.

I’m telling you this, so that you don’t have to make the same mistakes they have. Additionally, I see these kinds of mistakes in businesses all the time. You really don’t want your business to be one of them.

Every one of the items below is easily the subject of an post… or a chapter in a book. And we might cover them further in the future. However, let this post be a wake-up call for you and your business. You don’t have to make the same mistakes this business has.

Pinching pennies
Most of the time, I see businesses err on either spending too much money or too little. An under-capitalized business will tend to spend too little. An over-capitalized business will spend too much. But a business that starts on a shoestring and later makes good, tends to keep the “frugal” culture they had to adopt in the early days.

They tend to look for the cheapest solution and apply “Band-Aids” to any problems or needs, instead of the best solution. In the end, you get what you pay for.

Organic growth
Organic growth can be good or it can be bad. I often recommend a small business to stick with organic growth as it lets them implement solid foundations… if they have the foresight to do so.

But, sometimes, organic growth can be unplanned and chaotic growth. This happens when pursuing business without forethought as to how to serve the new-found business. If you are trying to grow your business based on every opportunity that you chance upon, you will be having unplanned and chaotic growth.

Your business can grow into a well-tended yard (organically) or into a weedy field (also organic.)

Owner Abdication
The owner/leader working in the business instead of on the business… and fostering a culture of same.

Why do I call this Owner Abdication? Because the owner is the leader of the business. A major function of the owner is to plan for the future of the business, oversee that the plans are carried out, and make whatever adjustments are required. Whenever the owner gets down in the trenches and does the work of the employees, he is abdicating his position as leader.

The sad part is that once the owner does this, no one else can be the leader, either. He has modeled how the company is supposed to run. And this ends up as a company with a bunch of workers but no leader.

Systems Lack
If a business doesn’t have systems, that means that every day is a new day… and each customer encounter, each business transaction, each decision is customized for the moment. It might be based on experience, but if the experience is missing… or flawed, then the transaction is also flawed.

When you encounter a business with poor service, employee (and owner) overwhelm, and/or “a crisis a minute” drama, you have discovered a business with poor (or missing) systems.

Process Ignorance
When you ignore the importance of process, you are risking everything on key people staying healthy and available, not to mention creating an inconsistent business.

Process is related to systems. A process is how you do something, and in what order, so that you get repeatable results. Processes can contribute to systems. A process can be as simple as how you answer the phone (before the third ring, announcing the company name, your name, and asking how you may be of service.) It can also be very complex.

If you don’t have processes for all the routine things in your business, every day is a new day and each interaction requires employee thought and decision (and, possibly, guidance.) Additionally, there will be no consistency in your business.

A corollary to this is to have processes, but not have them documented. When a new person joins the team, they have to learn everything by osmosis. Additionally, if a key person leaves, the process knowledge may walk out the door with them. Documenting the process is cheap insurance.

And more….
There are more mistakes this particular business is making, but discussing them may not be a good value for you at this time.

Please note that this business is enjoying a level of success — both financial success as well as growth. These are good things. But the success is taking a serious toll on the employees and on the owners. Further, their business is in a precarious spot as a result. And it doesn’t have to be that way.

It doesn’t have to be that way for your business, either. The sooner you put the remedies in place for your business, the sooner you can enjoy success, growth, and increased profitability, yourself.


Concerned that your business is making these mistakes, too? Want an experienced eye to look it over and help you decide what to do about it? Contact me. The business you save may be your own.


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Strategic Referral Partners — Worth Their Weight In Gold

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I was visiting with a colleague who had come to the Think Tank recently (my monthly business brainstorm/answers meeting.) As we talked, it came out, once again, how important it is to get new customers through referrals.

It doesn’t matter whether you have a retail business with a storefront, a service business that you operate via telephone or the internet, or a manufacturing business that wholesales to distributors. No matter what kind of business you are in, you need new customers… and the best ones come from referrals.

I have written before about the advantages of referral partners. Today, I want to talk about why they are your most important source of new leads — in some businesses, they are the critical source of new leads. (Hint: it has to do with psychology and how we humans attach value.)

Imagine I call you up on the phone (or we meet at a networking event) and I say, “Hi, I’m John Simmons and I can really help your business. I have a proven track record of showing businesses how to find more customers, get more sales from existing customers, improving employee engagement, and boosting their bottom line.”

What’s your reaction?

You will listen (politely, I hope) while a lot of questions pop up in your head. They might be something like, “Oh really? (in a skeptical tone of voice.)” “If you’re so good, why would you need to be calling me?” “Is this a scam?”

You will probably also be saying things (to yourself) like, “this is too good to be true” and “this guy is sure full of himself.”

Now, imagine the very same phone call or networking meeting, BUT it is someone else (besides me) who is saying, “You should meet John Simmons and work with him. He has a proven track record of showing businesses how to find more customers, get more sales from existing customers, improving employee engagement, and boosting their bottom line. I’d love to put the two of you together.”

Your reaction is likely to be more along the line of, “Oh really? (in an interested tone of voice.) That could be interesting… tell me more.”

The better you know and trust the person who is telling you this, the more strongly you will consider what is being said. In fact, if your situation is right, you will may start bugging the person for an introduction.

Now, you aren’t likely to rush up to me and plunk down your credit card begging to work with me, just on their say-so, alone. But, if your interest or your curiosity is piqued enough, you will start to check me out and verify that what is said is true… and would likely work for you. But, even if you don’t jump on it right now, you will be much more inclined to consider working with me in the future.

The same thing holds true for you, your business, and your customers. They expect you to say good things about yourself, and they discount it when you do. But when someone else says good things about you, your business, and your products or services, they listen.

What does that mean for you? It means that strategic referral partners who can (and will) give testimonial referrals for you should be one of the primary ways you go after new business.

But those partnerships don’t just happen. You have to cultivate them. But before you ask others to start referring business to you, take a look at yourself. How many people do you refer to others? Do you go out of your way to be a referral when you meet someone who would be a good potential customer for another business? If you are like 98% of business owners, the answer is “not really”.

Naturally, if you want to be on the receiving end of such partnerships, you need to be on the giving end, as well. You’ll need to train others to give referrals for your business (and probably train them how to do it, too.) Don’t bother to keep score. There will be people who will never run across an ideal customer of yours in order to refer them. That’s okay. You are in the same boat with other people’s businesses, too. You don’t want them keeping score, either. Just keep helping others and your reputation will precede you.

What’s your best strategy for getting referral partners? Share with us in the comments and let us grow, too.


Want to know more about referral partnerships and how to set them up, and how to maximize them? Or maybe you need training on how to be a good referral partner yourself, so you can start the ball rolling. Contact me and let’s talk.


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Transforming Bad Stuff to Good in Your Business

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At the end of every quarter, you should do a review of your goals and progress (or lack thereof.) Then, decide what needs to change… and start to change it. After all, if you don’t change anything, you can’t expect your results to be different.

Here is a tool to help you review your previous quarter and stop any behaviors that are preventing you from having the results you are wanting… and expecting.

This doesn’t have to take long. You can do it in as little as 15 minutes. But you do have to actually do it. Having the intention to do it, won’t be enough.

Get a pen and paper, find a spot you can focus on it, a cup of coffee, tea, or favorite beverage (but keep your head clear), sit down, and answer the questions. By the way, if you didn’t catch the hint with the “pen and paper” reference, you need to write out the answers. Don’t just think the answer or type it into a computer. (Studies have shown that good things happen in the brain when you write it down.)

1. Did I reach my revenue goal for the quarter? And am I on track to reach it for the year?

2. How am I doing in regard to expenses? Profitability?

3. What do I need to stop doing?

4. What do I need to start doing?

5. What do I need to keep doing… and do more of?

6. What am I tolerating that is holding me back?

7. Are there any ways that my behavior is contrary to my goals?

8. What one thing am I doing that is taking me in the wrong direction, is a waste of time/resources, or is something that I am not invested in?

9. Knowing what I know now, how do I need to adjust my upcoming goals/performance?

10. What one activity, if done consistently, would make the biggest difference in my business this year?

That will give you a good, solid look at what is working… and not working, in your business, right now. If you know that, you know more than (at least) 50% of small businesses.

With that new-found knowledge, take a fresh look at your current quarter goals. In light of what you have learned, what do you need to change in this quarter’s goals? Next quarter’s?

Remember, you get the most bang for your buck by detail planning the upcoming 90 days for your goals… and then working the plan.

Knowing what you know now, what will you do differently? Share with us (in the comments) so we can learn, too.

Having problems with reviewing your goals? Or maybe with figuring out what went wrong? Or how fix the problems you have identified? Contact me. I have a proven record of insights into business, management, and the issues that hold you back. I’ll bet we can find solutions for you.

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Do You Have “The Happiness Advantage”?

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Today, I want to share with you a secret of success.

That secret is happiness.

Perhaps your first thought is, “John, don’t you have that backwards? Happiness comes AFTER I succeed.”

Nope. Success does NOT breed happiness. If you aren’t happy before you succeed, you won’t be happy after you achieve any measure of success. (Note that momentary joy or satisfaction are not the same as happiness.)

In fact, research shows that being happy is a precursor to success. And that is “the happiness advantage.”

What is “the happiness advantage”? It is a 31 percent improvement in productivity. It causes a person to be 37 percent better at sales; 19 percent better at problem diagnosis and problem solving.

But don’t take my word for it. Shawn Achor has been researching happiness and success for over 10 years. On this TED Talk, Shawn shares what they’ve learned… and what it means for us. It’s about 12 minutes and they go by really fast (that happens when you are laughing a lot.)

Shawn Achor: The Happy Secret to Better Work
Shawn Achor The Happiness Advantage
(Click on the picture. If it doesn’t start playing for you, copy and paste the following URL (between the brackets) into your browser.)

[http://www.ted.com/talks/shawn_achor_the_happy_secret_to_better_work.html]

To sum up what Shawn has to say:

Happiness is not the result of success, but rather the inverse. We are more productive, creative, have more stamina, and lower stress when we are happy.

For 21 days in a row, do these things each day:

  • 3 Gratitudes
    Write down 3 new things that you are grateful for
    (This teaches your brain to scan for the positive things.)
  • Journaling
    Journal about 1 positive experience you have had over the past 24 hours
    (This allows your brain to re-live it.)
  • Exercise
    Every day.
    (This teaches your brain that behavior matters.)
  • Meditation
    Focus your brain on one thing.
    (This allows your brain to get over the cultural ADHD that we have been creating by trying to do multiple tasks at once and allows us to focus on one thing at a time.)
  • Random/conscious act of kindness
    Write one positive email to someone in your social network praising or thanking them.
    (This trains your brain to positivity and spreads it to others.)

Go ahead and give it a try. The clients I have shared this with have reported a major turnaround and breakthrough in their lives and in their businesses. Wouldn’t you like “the happiness advantage”, yourself?

What has been your experience? Has it worked for you? Tell us about it in the comments.

Need some accountability? Or maybe you’re not sure about that meditation thing… or journaling… or you need some additional, personalized instruction on this. Contact me and let’s talk. I’ll bet we can find a way forward for you.

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