Yearly Archives: 2010

Buffleheads and Geese

Buffleheads and Geese

           We have the luxury of operating ENS Media Inc. from our waterfront home on Lake Simcoe, although I’m on the road all over the continent as much as I am in the ‘office’.
          Sometimes amidst airport security checks and eating alone in restaurants,I forget to stop and smell the roses. Yesterday I was sitting in my ‘office’ watching the buffleheads and geese playing in front of my dock while I coached a client on the phone on how to increase her revenues.      
          When I got off of the phone, it struck me how fortunate I was to be able to enjoy watching nature and still do business at the same time. I took a few minutes to write down all of the reasons that airport security checks and boring restaurant meals really don’t matter.
          While others fight rush hour traffic to get to their offices, I’m often answering emails and helping clients while I sit in front of my fireplace over my morning cup of coffee.
          When you have the daily pressures of expense budgets to cut, increased competition and revenue budgets to achieve, it can be difficult for you to stop and smell the roses, or as in my case, watch the buffleheads and geese.
          But your health, general wellbeing and your productivity depend upon you occasionally taking time to revisit all of the positives your career has to offer.
          And those of us in the business of selling advertising do have one of the most satisfying careers in the world.
          I was reading earlier this week that many economists, for example, are pointing to advertising as one of the key influencers in restoring consumer confidence, consumer spending and our economic recovery.
          Wow!  That has to be pretty satisfying, knowing what we do can actually spur the economy and create more employment!
          But our careers offer much more than that.
          Those of us on commission have virtually unlimited incomes. And while sometimes our incomes might take a hit with economic declines, those of us who are good at it will never be unemployed.
          We learn something new about advertising and about our clients’ businesses every day, and our world is changing so fast there is no time to get bored.
          What we do isn’t dangerous or life threatening and it’s exhilarating and rewarding to watch our creative ideas reach fruition and help grow our clients’ businesses.
          Why not take time to make a list of all of the things you like about your advertising sales career…. your own buffleheads and geese? Then refer to that list the next time you are frustrated by traffic jams or difficult targets.

Crack the Category

Play ‘Crack the Category’

         
          I was talking to a station manager the other day who is experiencing double digit sales increases.
          When the president of his company visited the market to learn the secret to their success, the station manager said, “Did you see that little fruit market on the way here? They’re on the air. Did you notice the hot dog vendor at the car wash on the corner? They’re on the air!”
          This station is actually having inventory problems!
          Stations that are counting on the traditional retail categories, car dealers and furniture stores, are not cutting it today. There are 62 registered businesses in your market for every 1,000 market population, and we estimate that 50 of those 62 are prospects.
          That means in a market of 150,000 people, you have 7,500 prospects. Our research reveals that 82%, approximately 5,600, of those business owners cannot recall having seen a radio rep!
          I’m a little hawkish when stations talk about business being tough in the face of the research we’ve done and the successes we’re having. There is lots of room for growth, in any economy, once we start calling on new categories.
          And here is the beauty of breaking a new category;
1.) It’s all about share of voice. When a new category advertises on your station, by virtue of being new they have the dominant share of voice and share of mind with your audience. New categories always get high returns on their investment.
2.) Once your new advertiser starts to steal market share, their competitors follow suit and advertise too. I have one station that had no recruitment advertising four years ago and they now have more than $300,000 a year in recruitment advertising. I have another who had no law firms a couple of years ago and they now have four law firms on air with 52-week campaigns.
          Cracking new categories is more difficult than selling known radio advertisers. As long as no competitors in the category advertise, everyone in the category captures their ‘fair share’ of the market by default, and everyone is relatively happy.
          To open that new category door, start with a valid business reason for your first call. Some information about their market, an article from one of their trade journals about the power of branding…..anything that positions you as an expert who wants to help them grow their business.
          Why not do yourself and our entire industry a favor? Run a new category sales contest for your team. I’ll guarantee you that three years from now you’ll have multiple competitors from every category you crack!

Were You Following Pessimistic Forecasters?

Oops! Were You Following Pessimistic Forecasters?

 
          I worry about managers limiting their potential when they rely solely upon alleged ‘forecasters’ when setting their targets.
          In the U.S., for example, forecaster Barclays originally predicted a 4% decline in radio revenues for 2010. They have had to repeatedly revise their forecast for radio upwards. They are now forecasting radio will grow by 7.4%!
          How many stations have limited their growth or just barely achieved pessimistic targets based upon Barclays’ or other forecasters’ original gloomy forecast?
          Is your business plan a self-fulfilling prophecy?
          One of the stations I work with consistently just barely reaches target every month. I can’t help but wonder, “Would they still have ‘just barely hit target’ had we set the targets higher?” Or, “Do they quit selling when they reach their goal?”
          Henry Ford said it best when he said, “Whether you think you can, or think you can’t, you are right!”
          Targets are unquestionably important motivators and can be self-fulfilling prophecies. When you plan for 2011, we recommend not sticking your head in the sand or simply going along with industry prognosticators.
          Don’t simply look at things as they are, or predicted to be. Look at what could be and what you can do to get there.
          When we work with stations in their planning cycle, we have two underlying principals we apply to targeting. 
          First; targets must be realistic. By ‘realistic’ we mean from your point of view and your staff’s point of view…get their input. ‘Realistic’ is a perceptual term, but whether you perceive targets are achievable or unachievable, will dictate your level of commitment to them.
          Secondly; targets must be challenging. There is no satisfaction or sense of achievement in hitting ‘safe’ targets. Push the envelope with extraordinary initiatives and you are destined to hit extraordinary targets. 
          One final thought on targets. Don’t measure ‘success’ by your share of alleged radio budgets. Build a plan that helps you capture a larger share of overall marketing budgets….your station will grow and overall radio budgets will grow as a result of your efforts.    
          Jack Welsh once said, “Our problem is not that we set our aim too high and miss. Our problem is we set our aim too low and we hit our target.”

What They Learn in Buyer’s School

      What They Learn in Buyer’s School

 
          In my younger days I once facilitated a marketing and sales course for OIPMA, the Ontario Institute of the Purchasing Management Association….now there’s a mouthful.
          Anyway, when they first approached me I asked, “Are you sure you guys want a sales training course?”
          Their answer impressed me. These professional buyers wanted to learn what sellers were learning so they could counteract their sales tactics. So while we’re going to seller’s school, never forget your buyer has probably gone to buyer’s school. 
          Old-fashioned cold calling without a valid business reason for the contact or high pressure closing tactics won’t work with these savvy buyers and business owners.
          During the breaks in these training sessions, I casually inquired what they had been taught at ‘buyer’s school’ prior to my sessions. Here are some of the highlights;
  • Be skeptical of sales people who push for quick decisions on major purchases. Take your time and do your research.
  • Ask for references and follow up on those references. Also try to get the names of unhappy customers you can contact.
  • Don’t try to be an expert in everything you buy. Bring someone from inside, or outside, of your organization who is an expert in a particular product or service to advise you and ask pertinent questions.
  • First price is seldom best price. Always ask for value added, lower prices, credit terms and other concessions.
  • Never see a sales person who ‘drops in’. Always make an appointment and be prepared to focus on the presentation.
  • Get every promise in writing.
  • Always ask about after–sale service and warranties.
  • Try to get three quotes, and don’t always choose the cheapest. Trust, service, delivery, expertise and reputation should be considered in addition to price.
  • Have your conditions and criteria prepared for the meeting and don’t let a sales person bully you into changing your parameters.
  • Have your “no” prepared and rehearsed to end cheesy attempts by the salesperson to sell you. Telling a salesperson your budget is gone or you have decided to choose another vendor are fast ways to get them out of your office.
 
          Just as smart buyers try to learn how we sell, you need to learn how each buyer buys.  Do you have a sales process to understand each buyer’s style and to overcome each of the tactics highlighted here?  Try round-tabling your salespeople’s thoughts on each of these tactics in your next sales meeting.

Passionate about your Clients

Are You Passionate About Your Clients’ Successes?

 
          Both of my daughters followed me into advertising sales. Like me, both started in print but wisely moved into broadcast. And you might think they learned from me, but I’m proud to say they’ve succeeded largely on their own.
In fact, I continue to learn from them.
          Just last week my daughter Julie was describing one of her radio clients to me in her usual passionate fashion. When I told Julie I had never heard of that client she said “Are you kidding? They’re huge! And very successful!”
          Embarrassed by my ignorance, I decided to learn about this hugely successful advertiser.
          Then it dawned on me. The reason Julie is successful is she believes that all of her key accounts are the best at what they do!
          She digs and probes until she uncovers something positive about each account that she can believe in. That belief then manifests itself into the passionate energy necessary to create successful campaigns her station’s listeners can believe in.
          Are you as passionate about your clients’ successes as you are your own? Do you take the time to dig beyond the mundane surface to help your clients uncover their most salient attributes?
          You know enthusiasm is contagious, but does your sales process help you grow your enthusiasm for every client? Or do you simply view clients as a means to your end or as accounts receivable problems?
          Your most difficult clients can be challenging. It’s up to you whether you turn that challenge into a positive or a negative!