Posts Tagged ‘sales’

How to get my money that is in your wallet

Tuesday, November 24th, 2009

The Guy Kawasaki  video reminded me of something I was talking about recently.

You need to make a machine, that starts at the customer’s wallet, and goes all the way to your bank account. Starts with the customer, via marketing, sales, delivery and support.

It start with giving value to the customer, and having a meshed organisation, so the customer/marketing/sales/product all works together to extract the sale. This may seem obvious but hard to do. Poor sales performance doesn’t require better sales training, or better/new sales people, it needs more cohesion between sales & marketing, and marketing & the customer. If this all meshes, then each piece is easy and natural.

A good example of poor meshing is software development. Customer asks:
“what do you do?”
“software development, using xcf method with agile computing and cloud components”¬† …. this means NOTHING to the customer.
customer asks : “can you program CRMs for my website”
“yes we can”
customer asks : “can you help with our monthly budget reporting ?”
“yes we can”
customer asks : “would I be able to get monthly sales ROI month on month for website sales ?”
“yes, I’ll get back to you on that in a proposal”

Given you do everything, sales and marketing aren’t able to be specific about anything. This is the real swiss army knife approach, we do everything, which might even be true. But you can’t effectively market or sell ‘everything’.

When Bundling Goes Wrong

Friday, January 23rd, 2009

OK – one of the most brilliant marketing strategies is bundling …. or ‘meal deals’.

Think about what they did for Macca’s. Instead of selling burgers for say $3, chips for $2, and drinks for $2 – they sell a ‘meal deal’ for $5.50. You essentially get chips OR the drink for nearly free.

Instead of sometimes only selling a burger($3), or sometimes a burger + drink ($5), they more often sell a ‘meal deal’ for $5.50. Macca’s ends up with a higher average sale price. On average they sell more to each customer.

So what if you have ‘bundled services’ or ‘bundled products’ in your company? Perhaps you’ll increase the average sale. GREAT – we are getting more profit.

WRONG. What if the customer say doesn’t want or doesn’t respect part of your bundle.
– at best you will have increased your cost to deliver that sale (lowering your profit).
– at worst, they wont buy from you, as there is part of the offer they are not interested in
– overtime, you have increased your costs, and will disincent customers to buy from you …. not good

‘Blue Ocean Strategy’¬† clearly says you can attack a market by ripping out unloved features, and reducing costs. (I’ll write up a full review of Blue Ocean Strategy at some stage).

A simple solution would be to offer the components of your service seperately. And be proud of each component, talk highly of each of them. And ask the customer what components THEY want.

Its easy for sales people to think ‘if I put MORE value into the deal’ the customer might be more likely to buy.

Don’t sell them anything they dont want, or dont value. It will just end up a cost to you, and disincenting your customers.

Eventually bad deals, with too much cost, will destroy your company.

If you were smart, and to push the envelope, you have a bundle on offer, that is MORE than the some of the parts.