Archive for August, 2007

Cozying Up to Frigid Prospects

Friday, August 31st, 2007 | Jessica Castaneda

You know the ones, prospects who never take your calls, send you straight to voice mail or are heading into yet another meeting. If only they would give you five minutes of their time, you could tell them why your solutions are faster/better/different and how you can positively impact their business. Just five minutes! It’s frustrating. So much so that sometimes you just want to get into your car and head over there in person. And that is not such a bad idea.

But, before you stand outside their door screaming their name ala Marlon Brando in “A Street Car Named Desire,” you may want to put a plan together. That’s where a Target Account Program (TAP) can help. As the name suggests, a TAP is intended to help you target and get in front of your business’ level 1, gold-star, key prospects. It is a planned, scheduled and methodically executed multi-week program that uses a variety of marketing approaches – mail, in-person visits, calls, e-mail, etc. to help you stand out from the crowd. TAPs can vary depending on your target audience, but usually they involve in-person drop-offs of information about your services delivered in a clever and interesting manner often accompanied by a small giveaway that ties in with your message and theme.

Even the most cold-hearted prospect can’t ignore someone visiting week after week dropping off clever, funny or meaningful information – that is professional, interesting and always relevant to their business.

Choosing the “gold-star” prospects

In the book “Positioning: The Battle for your Mind” veteran marketing strategists Al Ries and Jack Trout write that an average person can rarely remember more than seven brands in any given product category. And that’s in a high-interest category. In low-interest categories, the average person is hard-pressed to remember more than one or two brands. Because of the clever and personal nature of TAP programs, they are a great way to get you a coveted spot in your prospects’ minds. But, because of their success, it’s natural to want to include as many prospects as possible in the TAP. Why not? If getting into the brains of 10 key prospects is good, 20 must be better, right? Not so fast.

The key to a successful TAP is planning, and the first step in planning a TAP is developing a pristine prospect list. Here are some critical things to consider:

Industry – Keep in mind that a key element in a TAP is the drop-offs. You’ll want to make sure you can actually get to your prospect or at least to the front desk at their company without running into obstacles such as security guards or key card access. Pharmaceutical companies and financial institutions are a couple of places with added security. And, unless you’re interested in a stint at Guantanamo, you’ll want to get approval prior to leaving drop-offs at government locations. A little due-diligence will go a long way to ensure you have drop-off friendly companies on your list.

Geography – It’s important to consider the geography of your prospects relative to your sales force. While you want to include your top 10 prospects in the first TAP you do, it may be more feasible to break up your prospect list by geography to ensure your sales force can effectively visit the locations within the schedule and not have to do a drive-by drop-and-run. It’s also important that your sales force has the opportunity to ask if the prospect is available and, if given the chance, the time to meet with them right then and there!

Another key point about geography is that what works in Mayberry doesn’t necessarily work in Manhattan. If your business covers several markets, you’ll need to consider whether the same TAP campaign will work across all areas, or if you’ll need to tailor your message for better impact.

Company Size & Organizational Chart – When developing your prospect list, think about the size of the company and the level within the company you are targeting. The goal is to aim as high as appropriate in the organization. A general rule of thumb is the smaller the company, the higher on the organizational chart you’ll target. While chances are slim you’ll get in front of the CEO of a Fortune 100 company (nor would you necessarily want to), you’ll most likely be able to present your company’s services to the CEO of a mid-sized organization. 

That said a common mistake made by sales folks is targeting too low a level within their prospects’ companies. I call this the “C-level syndrome.” Often sales people – especially those more junior – target middle-management because they are an easier pitch. The problem is they often aren’t the key decision maker – the person who can do the most for you – most quickly. For best results, you’ll want to do some digging and find out who the highest-level person is in the area you are targeting. If you aim at a mid-market CEO, they may tell you to talk with someone under them – but now you come armed with the boss’ recommendation. If you target a middle manager, more often than not, that’s where you’ll stay.

Politics – If you decide to go after new business within an existing client (penetrate untapped areas of the organization), it’s a good idea to let the people you’re already doing business with know about your efforts. If not, your great client in the Widget division might get peeved to see his counterpart from the Gizmo division wearing your polo on casual Friday. It sounds petty, but it happens … a lot. The last thing you want to do is spend your time (and money) dropping off gifts as peace offerings to people you’re already working with. The best way to mitigate this etiquette faux pas is to tell the people you know well in advance that you’re planning a drop-off campaign, and that you would appreciate them putting in a good word for you with your target. You have limited drop-offs and with their help, you can make a better impact. Chances are they will be more than happy to comply. This way no one feels left out and your TAP penetrates even deeper into your target organization. 

These are just a few points, but they can make a huge impact on the success of your TAP campaign and your effort to gain new prospects. Execute them correctly, and before you know it you’ll be sitting face-to-face with that frigid prospect who is no longer “away from their desk.”

Jessica Castaneda
Marketing Director
ClearEdge Marketing

Is Your Marketing Strategy Truly “Strategic”?

Wednesday, August 22nd, 2007 | Kathy Dooley

A critical consideration when developing an integrated marketing program is to ensure it is directly tied to — and fuels the success of — your company’s business and sales goals. Sounds logical, right? Yet many organizations mistakenly focus their marketing efforts on tactics such as creating a “slick” brochure or a flashy Web site rather than creating a strategic marketing plan that yields measurable results.
 
Moving from tactical to strategic marketing requires a shift in the marketing mindset from “what we think makes sense to do” to “what we know we need to do” in order to drive profits. It requires a fundamental understanding of your organization’s mission, brand and top five or six business goals, and an in-depth analysis of the marketing investments that will have the greatest impact on each objective. Then, and only then, can a truly effective marketing strategy be created; a detailed plan that clearly describes the blend of marketing tactics that will generate the greatest ROI for the company.

Effective marketing and communication strategies are inextricably linked to an organization’s existing (and ideally fully operational) business plan. They show a direct correlation between enterprise goals and marketing initiatives. As a real-life example, I recently spent two days facilitating a strategic planning session for an IT professional services company with significant growth objectives. By the end of the meeting, the firm had not only created a precise action plan and timetable for achieving its revenue and profit targets; it also identified specific marketing strategies designed to drive the achievement of these objectives.

Below is an example of how marketing tactics evolve directly from the strategic plan.

Strategic Goal: Obtain annual ROI of at least 18% in the next two years

Strategy:
-Facilitate the identification and opening of 20 new accounts

Tactical Approach:
-Targeted account program: Establish and implement a plan that incorporates at least five, multiple medium touch points (e-mail, direct mail, in-person and perhaps even a sponsored event) for each key prospect. ClearEdge Marketing’s research has shown that an effective TAP campaign can be 20-30% more effective than traditional direct mail programs.

-Keep in touch program: Launch a compelling, knowledge-based communication program that allows your company to get a foot in the key decision-maker’s door. Periodically provide — via e-mail, direct mail and/or in person — compelling information about industry issues and challenges that matter to them. Leverage newsletters, article series, case study campaigns and/or blogs as the communication vehicle for persistently reaching out to the clients you are trying to win.

Strategy:
-Increase revenue derived from existing accounts by 30 percent

Tactical Approach:
-Introductory letter: A custom letter that highlights your success within the organization and  includes internal testimonials and referral contact information.

-Sponsored company event: Schedule and conduct executive roundtables on hot industry topics at four major client locations. Design event for maximum interaction between your sales team and a cross-section of existing and prospective client managers to generate internal introduction and referrals.

The most important thing to remember on your way to becoming a strategic marketing organization is that, in the end, only results matter. Just as you do in your strategic planning efforts, institute a fail-safe method for tracking, measuring and communicating the impact of your marketing programs on the organization’s bottom line.

Stay tuned for more strategic marketing insights…

Kathy Dooley
Marketing Director
ClearEdge Marketing

Small Business Blogs Offer Big Business Lessons

Tuesday, August 21st, 2007 | Sarah Schunk

For anyone who questions the pervasiveness and business value of blogs in the marketplace today, the New York Times Small Business section has some stories worth reading. Marci Alboher describes some exciting successes several entrepreneurs have achieved as a result of their blogging ambitions in her article “Blogging Your Way into a Business.” From people who began writing and ended up with a profitable business to savvy entrepreneurs who saw blogging as a way to build a marketplace, the article describes another way the Internet is building communities of consumers. I believe the blogging lesson for established businesses is that new customers can be found and won through creative, true and valuable blog content.

In the U.S., more and more people are turning to their computers first when they need something—to get the weather, to get directions, to look for entertainment possibilities, to shop, to travel, to find medical information, to find love, to find friends. Businesses that can be reliable, creative, entertaining and honest providers of information through smart, regular blog content can build a readership (an audience) and eventually increase their consumer base.

One mistake many business blogs make today is that they are writing what they know, but they are not writing what potential consumers are interested in or hungry for. A successful, sticky blog requires careful content analysis. If you are looking to share valuable knowledge with consumers, make sure it’s knowledge they need right now. Does it speak to their current needs and challenges or are you speaking only to issues you/your business leaders find of greatest interest?

What is great about blogging is that success can be quickly analyzed. Readership numbers, whether they are growing or stagnating, will quickly tell you whether a blog is capturing an audience. Blog readers and Internet users are infamous for passing on information and article links when they find them of value. If your blog is striking chords, it will grow by reader-to-reader sharing and not just through your blog marketing efforts.

As a business works to develop its blogging capabilities, it’s important to pay attention to all the cues audience members send. If you are getting feedback from readers and the number of readers is growing, you are on to something. If you are writing into a void with little audience response, it’s time to analyze your content and what your audience wants.

Read some of today’s most successful business and marketplace blogs to gather ideas. To get you started here is a global ranking of the 50 Best Business Blogs from The Times. And be sure to take a lesson from successful blog entrepreneurs. Get to know your audience early and well. They will be your best gauge for how to write and develop blog content.

Sarah Schunk
Senior Writer
ClearEdge Marketing

About This Blog

Monday, August 6th, 2007 | admin
Our goal is to provide clients and partners with sage, proven insights that will improve their marketing effectiveness. Our entire team, from our President and senior marketing managers to our design, online development and communications staff members, will contribute regular entries to this online resource.

To learn more about blogging as a marketing and communications tool, contact the ClearEdge Marketing team today!

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Escape the Margin Squeeze, Move Up the Value Chain

Wednesday, August 1st, 2007 | Leslie Vickrey

Staffing, across all professions and skills, has always been a competitive field. But growing rates of VMS (vendor management systems) solutions at large- and mid-size businesses have given a new kind of dread to the phrase “cut-throat competition.”

I have had several staffing clients in the technology and finance and accounting sectors come to me in need of VMS advice. They want to know how to avoid slashing rates to the brink of profitability just to stay in the competition for new business. What I tell them is this: The VMS trend is here to stay so it’s time to decide. Do you want to remain a staffing vendor or are you ready to evolve into a valued solutions partner?

Many staffing businesses are finding success by simplifying their approach, eliminating consultative work and fulfilling talent requirements within the confines of VMS pipelines and procurement-style staffing. And why shouldn’t they? The contingent staffing market is strong, and it’s growing. Human Resource Executive Online recently profiled the rapid growth of the contingent workforce and cited a 2007 Staffing Industry Analysts study, which predicts that in just two years 10% of the U.S. workforce will be contingent talent.

The staffing industry has also rapidly evolved along with the growing contingent workforce. This past May, workforce expert Doug Berg shared with BusinessWeek how traditional staffing segments (clerical and technical) as well as new segments (such as medical and legal) are fueling contingent workforce expansion. As more highly skilled professionals join the ranks of contingent workers, many staffing firms have broadened their services to support more complex recruitment and workforce management needs. Some staffing firms are now both talent and service providers, offering services that can include project-based solutions, managed services, outsourcing, offshoring, training, human resource consulting and more.

The reality of VMS has created a crossroads for staffing firms who have evolved into combined service and talent providers. The rates and the standardized procurement-style fulfillment approach that VMS customers demand do not reflect the value-added service offerings these businesses provide. However, in the marketplace and to their own teams (recruiters and sales staff), they are often still seen as staffing providers who belong in the procurement supply chain rather than as solution providers that partner with senior-level decision makers and board-level executives.

For businesses that are determined to maintain their higher-end services and solutions, redefining their marketplace image from the inside out is critical to escaping the margin squeeze. If clients, partners and internal teams still see your business as a contingent talent provider, they will keep your business tethered to traditional staffing and today’s low-margin VMS opportunities. But if your business is able to communicate and demonstrate value to business leaders and decision makers, it will hurdle over and beyond the procurement role to remain a trusted consultant and value-added provider.

“Great,” some businesses might say. “We will update the Web site, create a new brochure and bam: we have a new image.” Unfortunately and at the same time fortunately, it’s not so easy. It’s unfortunate that retooling a business’ image is hard because it does require time and investment at a time when competition is stiff and businesses are already fighting tough margin pressure. However, it’s fortunate that not any business can just change some words and implement a new design to quickly become a high-value solution provider.

Building a new marketplace image requires significant business and marketing changes. Below I have created a general outline of the major steps that must be taken when redefining a staffing organization as a business solutions provider. In between these major milestones are numerous internal and external changes that must occur in order to successfully shed the staffing image and redefine a company.

Five Critical Stages of Staffing Image Transformation

1. The Business Assessment - Ensuring solutions are what you are providing and can provide.
Staffing is now different from solutions and the VMS model is making that a reality. You cannot become a solutions provider by creating a new name for staffing services. It’s important to begin an image change by taking an honest look at the services you provide today, what your business is capable of, what your business is best at and how you want to change. It is at this stage of top-to-bottom assessment of existing business operations and future-state goals that allows businesses to truly decide whether they belong in the staffing or solutions arena.

2. The Message Conversion - Retooling business messaging from the inside out.
To be seen as a solutions provider you must talk like one, which requires a comprehensive assessment and update of a business’ entire messaging platform—from internal messages (mission statements) to external messages (how you explain your strategy, services, and VALUE).

3. The Talent Evolution - Changing the way you sell and maybe who sells.
You don’t sell solutions to the same people you sell staffing to and you don’t take the same sales approach. Solutions sales start at higher entry points in organizations and require a different foundation of knowledge. For many businesses, becoming a solutions business requires the addition of new sales talent, and for all businesses it requires a serious approach to training, which is the subsequent stage discussed below.

4. The Compensation Upgrade - Manage the business and your sales team the way you want to be perceived.
You cannot run a solutions business but reward your sales team on headcount as a staffing firm would. A company must retool compensation plans to ensure they clearly line up with both business and vision goals. If sales teams aren’t rewarded for selling solutions, they will not sell solutions.

5. The Training Push – Training the whole gang.
It’s amazing how many businesses offer solutions, but their internal teams still talk like they work for staffing companies. Transitioning into solutions services requires strong training for staff members at all levels and areas of a business.

6. The Ongoing Campaign – Getting the solutions message out through various marketing and communications mediums.
Redefining an image requires a long, ongoing campaign leveraging both traditional marketing (advertising, Internet, sales literature, etc.) and proactive communications (speaking engagements, hosting events, publishing studies, writing articles and more).

I look forward to discussing and debating these stages of image transformation and the challenges of moving up the service provider value chain with you here on the ClearEdge Blog.

Leslie Vickrey
President & Founder
ClearEdge Marketing