Archive for December, 2010


Marketing Consultant Lead Generation Minneapolis St Paul Minnesota AtlantaAs an update to my post “Lost“, I thought I would share a study I just read which was recently published by the University of Michigan on empathy.  I am not stating that there is a cause and effect here, but rather underscoring the need to add empathy to our sales and marketing communications and interactions.  Here’s an excerpt.  You can read more at University of Michigan.

ANN ARBOR, Mich.—Today’s college students are not as empathetic as college students of the 1980s and ’90s, a University of Michigan study shows.

The study, presented in Boston at the annual meeting of the Association for Psychological Science, analyzes data on empathy among almost 14,000 college students over the last 30 years.

“We found the biggest drop in empathy after the year 2000,” said Sara Konrath, a researcher at the U-M Institute for Social Research. “College kids today are about 40 percent lower in empathy than their counterparts of 20 or 30 years ago, as measured by standard tests of this personality trait.”

Maybe we should just… stop texting and emailing.

Lee Stocking
Prairie Sky Group
Driving Sales Through Customer Focused Marketing
lee.stocking@gmail
651-357-0110

Marketing Consultant Lead Generation Minneapolis St Paul Minnesota AtlantaIt was the night before new years and all through the house, not a creature was stirring… unless it’s sales trying to make their year-end forecast. Or perhaps they’ve given up and are trying to figure out how they got into this position.

The sales forecast is the single most visible metric in corporate business today.  Profits may be more important, but the sales forecast is more visible.

Sales forecasting in many companies is essentially a negotiation process.  The CEO negotiates with the board.  He gives them a number he thinks they might buy and hopes to hell the VP of Sales, by some miracle, can make.  When the VP of Sales gives a number to the CEO, he low-balls it, because he knows the CEO will over-extend them with the board.  He gives his people targets he knows will be really difficult to make, but with good intention, because he wants them to stretch and to be in sales you must be optimistic.  Sales people and marketing people negotiate with the VP of Sales.  It often has little to do with reality, even though it’s guised in bottom up process.

I know this sounds cynical.  But go talk to the VP of Manufacturing or Services; he’s busy dividing everything he hears by two so he doesn’t get stuck with excess inventory or too high a headcount.

In many, but not all, organizations the whole forecasting process pretty much sucks.

A key symptom is multiple forecast numbers.  There’s the one that everybody thinks they can make, but no one has the courage to fight for, and then there’s the one that gets imposed because no one trusts that people will really do what they say.  The problem is that there are multiple forecasts; the actual one, the stretch one, the one you told the boss, the backup, the worst case, and the other one.

Everyone knows there are multiple forecasts, that’s why the VP of Mfg is hedging his bets. But no one knows which one is the real one.

So what would happen if everyone trusted each other and had just one forecast.  The one everyone thought would be challenging, but was realistic?  Make this year’s New Year’s Resolution to trust your people and have just one forecast.  It’s surprising how hard a team will work when they are fighting for the same thing.  On the other hand you can have multiple forecasts and look for someone to blame.

The first thing the CEO tells the board when the sales forecast numbers are bad after he sites the economy is… “You know, I just may have a problem with ‘Sales’.” (Translate VP of Sales.)  This buys him another nine months. But its not the reason the VP of Sales is the most fired position.  It’s because he succumbed to multiple forecasts.  As a result he communicated mistrust to his organization.  That results in lack of performance.

God bless those souls that make their forecasts… those out on the front lines. It’s not easy. It’s hard work.  Those that succeed have a team behind them.  And one forecast.

Rationality is Crazy

Marketing Consultant Lead Generation Minneapolis St Paul Minnesota AtlantaI once had a sales person call me and ask me the three things he should tell a prospect that he was visiting about our product (let’s call it the “Hyper-Scotchamtic 5000” or the HS5000).  He also asked me to be on the call by phone.  I suggested instead of using three things about our product that he think of three questions to ask the prospect.  I hung up and waited for his call back.

About an hour later, he called.  He said the prospect was committed to purchasing the product, but had just once question that he wanted me to answer… “Did the product have lasers in it?”  This was a really strange question.  I asked him why he wanted to know about lasers, and the prospect replied that he was just curious.  He hoped the product had lasers it.  I told him there were no lasers in the product.  He remarked that he would probably take two of our product.  I pointed out that he only needed one and could only use one.

When the call was over, I called the sales person back and asked him what was going on?  What questions had he asked the prospect?  He said he had only asked one main question.  He hadn’t thought much about it, but just blurted it out.  His question was, “What would happen to your business if your biggest competitor got the capabilities in our HS5000?”

Reason and logic, while they seem to form the basis of many sales and marketing campaigns, are not sufficient for their purposes.  Why?  Because we humans are not rational actors.  If we were rational actors, we:

1.     Wouldn’t vote against our self interests

2.     Wouldn’t stay in relationships that were obviously bad

3.     Would work only for money

4.     Would fight wars for just causes

5.     Would all buy BMWs

Ninety-five percent of our thought is unconscious and dependent on frames, metaphors, stories, images and narratives that help us make sense of complex situations. (More in upcoming posts.)  Rationality allows us to function as a society.  Think for example why someone accepts a scrap of paper for the purchase of a flat screen TV, or why we drive on the right side of the road expecting others to do the same.  But is has nothing to do with why people buy or make decisions.  You know this.

So why is it our marketing focuses on the five functions of the product, or our sales interactions talk about the five benefits?  Sales processes that focus on questioning and the detail of capabilities without considering the non-rational components of buying are only partially adequate.  Marketing programs that focus on why the product is better will be failures.  Both because reason has little to do with why we buy.

We can use reason and rationality to understand why we are crazy or irrational (how the brain functions).  But it’s time to get a little crazy in sales and marketing.  Start appealing to the unconscious in B2B marketing.

The prospect in the example above wasn’t using reason when he responded to the sales person’s question; he was reacting to fear and a frame of failure.  He was working though his own narrative of beating his competitor.  He wasn’t using reason when he wanted two instead of one, or when he wanted to know about “lasers”.

Maybe we should start adding “laser’s” to our B2B sales and marketing processes. Lasers that look at the way our brains work might guide us to a new way to market and sell.  Consumer marketing has known this for decades.