Closing Your Business to Work On Your Business

News Flash! Starbucks is closing all 7,100 of their USA stores today at 5:30P.M local time! Incredible!

Except … They are not permanently closing up shop. That would be drastic!

Rather … They are holding a 3 1/2 hour mandatory, company-wide training session for all 135,000 store employees. That is dramatic!

That takes guts! And Howard Schultz, the founder and CEO has consistently demonstrated his vision and leadership. We know he has guts!

(Click here to read more about this dramatic event.)

I am sure that many business owners are saying, “How much is that going to cost them to close down all stores for 3 1/2 hours?”

The bigger question – one that I am sure they will be addressing during their training session – “How much will it cost Starbucks if we don’t invest the time to restore our enthusiasm, improve our service and revisit our company’s culture?”

Starbucks has two choices :

  1. Allow themselves to sink down and accept that they have become a commodity as they face increased competition.
  2. Rejuvenate themselves through special training. Re-visit what they must do to elevate the “Starbucks Experience.”

Happily, they chose Option #2.

Whatever short-term loss they have in lost revenue will be gained back in long-term profits and improved customer loyalty.

Here’s my resolve – First thing tomorrow, I am visiting my local Starbucks to see first-hand how they have changed as a result of today’s training!

I realize that it will take some time to rebuild the romance of the “Starbucks Experience.” I am eager to watch it evolve!

What do you think about this? Please add your comments below. This is a great topic for discussion!

Share and Enjoy:
  • Add to favorites
  • Facebook
  • Twitter
  • Technorati
  • Print
  • email
  • Digg
  • StumbleUpon
  • del.icio.us
  • Yahoo! Buzz
  • Google Bookmarks
  • Orkut
  • SphereIt
  • Sphinn

What is Your USP?

“Our faith in the present dies out long before our faith in the future.”

– Ruth Benedict

Do you know your USP? More important – do your customers know your USP? What – you may ask – is a USP?

What does USP stand for? In many ways, your USP identifies exactly what you stand for!

Your USP is your Unique Selling Proposition. It is the specific benefit that your customers get from your product or service. In order to have a successful USP, it is vital that you understand these 2 points:

  1. Your customers need to perceive what you offer as a real benefit to them. It has to be a benefit that really matters.
  2. You must be the first to claim this benefit.

Creating your unique selling proposition also allows you to focus your business. It is a constant reminder of why you remain in business. Why your customers choose to do business with you – and not with your competitors.

Here are a few examples of truly memorable USPs:

  • Federal Express – “When your package absolutely, positively has to get there overnight.”
  • M&M Candy – “The milk chocolate melts in your mouth, not in your hands.”

Are these merely advertising slogans? No. They are operational imperatives.

Federal Express created their business to deliver packages overnight. Long before many customers realized that they actually needed to have their packages delivered overnight. Once enough customers started to see how overnight delivery of packages was important, other transportation companies started to offer overnight delivery.

That is when Federal Express realized that in order to stand out from their competitors, they needed to offer a guarantee. An not just any guarantee. Not just an offer to refund the money if the package didn’t arrive on time. Not just a coupon offering a discount on the customer’s next shipment – (and why would you care about the next shipment if your current shipment didn’t arrive when you promised?)

Their USP – “When your package absolutely, positively has to get there overnight.”

Here’s an interesting sidebar that illustrates leadership and vision. On the first night of operation, Federal Express used:

  • 389 employees and 14 aircraft to deliver
  • 186 packages overnight to 25 cities in the USA

FedEx helped to create the demand for overnight package delivery. There was little perceived need for this when they began operations. Once enough customers perceived that they needed overnight package delivery FedEx needed to cement their name and reputation in the front of the customers mind. And they needed to structure their operations to ensure that they would fulfill their USP – “When your package absolutely, positively has to get there overnight.”

No other package delivery company can claim that USP. UPS (United Parcel Service) had to create their own USP. They had to differentiate their business. That is why you have to be the 1st person or company to claim your USP. Continue reading “What is Your USP?” »

Share and Enjoy:
  • Add to favorites
  • Facebook
  • Twitter
  • Technorati
  • Print
  • email
  • Digg
  • StumbleUpon
  • del.icio.us
  • Yahoo! Buzz
  • Google Bookmarks
  • Orkut
  • SphereIt
  • Sphinn

Features vs. Benefits

“In the factory, we manufacture perfume. In the store, we sell hope.”

Charles Revson, Founder of Revlon Cosmetics

Why are so many voters – especially younger and first-time voters – attracted to Sen. Barack Obama’s message of hope? Why does it seem that Sen. Hillary Clinton’s latest message – “I’m in the solutions business” – is not gaining traction?

Could it be something as basic as the difference between saying, “This will make your stomach feel better” versus, “Trust me, this medicine will be good for you?”

People like to buy, but they do not like to be sold! The sales guru Jeffrey Gitomer reminds us of this basic tenet in each of his best-selling books. Don’t tell us what what you have done in the past – and why it will  good for us. Entice us with a message of what our future will look like. Paint a picture of the future – our future. And help us to see how we fit into that picture. Help us to make the decision. Don’t just tell us your solution.

We will buy hope – if we can see the benefit. Our benefit. Don’t try to sell us on the basis of the quality of the ingredients you put into your perfume. Charles Revson did not build his Revlon cosmetics empire based strictly on a special combination of ingredients. Those ingredients are features – and features do not motivate us to buy. Hope is a little more difficult to see and quantify. But that is a leader’s role – to help us to see hop and to put us in the picture. And that gets the sale most of the time!

This is not a political blog. I am not writing to “put down” a candidate. Nor am I advocating for a candidate. I enjoy observing and analyzing political strategy. I like to learn from the successes and mistakes in the current presidential primaries and apply them to my business – consulting and training. I write to share my observations with my readers.

Here’s what I see so far. Perhaps you agree, perhaps you don’t. But I hope that you will at least read on: Continue reading “Features vs. Benefits” »

Share and Enjoy:
  • Add to favorites
  • Facebook
  • Twitter
  • Technorati
  • Print
  • email
  • Digg
  • StumbleUpon
  • del.icio.us
  • Yahoo! Buzz
  • Google Bookmarks
  • Orkut
  • SphereIt
  • Sphinn

Learning From Political Misteps

“There are two types of people – those who com into a room and say, ‘Well here I am,’ and those who come in and say, ‘Ah, there you are.'”

– Frederick Collins

I love politics! No, not the skirmishing, nor the name-calling and not the ideology. Rather, I enjoy observing and analyzing political strategy and how politicians communicate with the electorate. There are many opportunities to learn from political successes and failures and to apply them to our own business. A case in point – the collapse of Rudolph Giuliani’s campaign for the presidency.

“America’s Mayor” – Mr. Giuliani is the type of person who walks into the room and announce, “Here I am!” His campaign relied heavily on the cult of personality. This might have worked if Mr. Giuliani were selling a new book – enough people would have come out for the entertainment factor and the chance to get close to a celebrity – they might have even bought a book!

But asking people to vote for you is a very different matter. Voters are more concerned about what you will do – for them – in the future. They do not care as much for what you did in the past – your accomplishments and your years of service enabled you to get into the race. When you are asking for their vote, they want to know your plans for the future and how they fit into your plans. They also want a candidate who walks into the room and says “Ah, there you are!” Continue reading “Learning From Political Misteps” »

Share and Enjoy:
  • Add to favorites
  • Facebook
  • Twitter
  • Technorati
  • Print
  • email
  • Digg
  • StumbleUpon
  • del.icio.us
  • Yahoo! Buzz
  • Google Bookmarks
  • Orkut
  • SphereIt
  • Sphinn

I Recommend

“You're not recruiting people just to do tasks.  You're recruiting people to engage and maintain relationships.”

– Tom Wilzius, Management Consultant

As a traditional retail store, your competitive advantage is your ability to establish and nurture strong relationships with your best customers.  In order to be successful in building these relationships, you and your staff need to change your perspective from being “product-focused” to becoming “customer-focused.”  Here is a great tactic to get you moving in that direction:

1) On a regular basis, have each staff member in your department pick out a particular product (or small list of products) that they like – and would recommend to others.

2) In you store, set aside a display area where you stack the products (for sale) and prominently feature the staff member- a short bio – and their written recommendation – why I like this book or gadget, and why I think that you will too.  Make it attractive – but be sure that it is “personal.”  This is the key.  You are not promoting a “product of the month” – that is a “product-focused” attitude.  Rather, you are starting to view your store from a “customer-focused” viewpoint.  The point being, that a personal recommendation is a powerful sales influcencer.

I have been reminded of this marketing tip twice in the past few days.  Yesterday, I received my monthly e-newsletter from Rhonda Adams of The Planning Shop.  She mentioned that her best selling book, “Business Plan in a Day,” is featured on a special “staff selection” table at all Borders Bookstores from now until April 12.

This tactic works – trust me.  Last month, I went into a Borders Bookstore and purchased 4 of the 8 “staff selections” in the business book department.  Who has the time to search through hundred or thousands of titles?  We welcome a recommendation from a trusted adviser.  I admit, I did not develop a personal relationship with any of the staff at this particular Borders store – they are simply too large an enterprise for this to happen.  But … for you, The Independent Retailer who has a local customer base, this is a “golden opportunity” to try out!

The other reminder of how effective this “staff selection” tactic is came from Bob & Sue Negen's terrific new book, “Marketing Your Retail Store in the Internet Age.”  They recommend that you put these “staff selections” on a prominent page on your website.  This is especially appealing to a small retail business – don't try to list every possible product available (in your store or in the catalog) on your website.  Just list – and sell! – a few featured items.  And be sure that your say “Our staff recommends.”  Possibly an even more effective headline would be, “Our customers recommend.”  In either case, be sure to write out the reasons why they like – and recommend – the products.

To illustrate the difference in positioning, compare these two headlines:

“On Sale This Month!”

“Our Customers Recommend!”

The first headline implies that YOU want to move these products.  Perhaps you got a great deal on them or maybe they have been sitting on your shelf for too long.  But the message that you convey is “I, I, I” or “We, We, We.”  In the second headline the message implied is “people – just like you – have purchased these products and they think that you will like them also, because…”

Which is the more effective approach?  Which one is “customer-focused?”  Which will generate more sales and excitement?

Try it! Write me and let me know if this works in your store – danny@thecompanyrocks.com

 

 

Share and Enjoy:
  • Add to favorites
  • Facebook
  • Twitter
  • Technorati
  • Print
  • email
  • Digg
  • StumbleUpon
  • del.icio.us
  • Yahoo! Buzz
  • Google Bookmarks
  • Orkut
  • SphereIt
  • Sphinn

Communicate Effectively and Quickly

“If you can’t state your position in eight words or less, you don’t have a position.”

– Seth Godin

It is difficult to be brief. Try it! State your opinion in a few words as possible. How do you explain your business or service to a total stranger in just a few words – words that the stranger can easily understand? It is a tough task, isn’t it? And yet, increasingly that is what we have to do to retain current customers and to attract new ones. To be noticed – to stand out from the crowd – to move people to take action we must master the art of brevity.

One of the best business summaries I know came from Charles Revson, the founder of Revlon Cosmetics. He said:

“In the factory we make cosmetics, in the store we sell hope.”

Brilliant! All in twelve words. And they are the “right words” because they work. The listener can clearly understand the process and visualize the outcome. The outcome for each customer will be unique because each will define “hope” in their own way.

Will that “hope” renew, revitalize, rejuvenate, restore, rekindle or reinvent? Each customer will choose one or more of these answers – and probably one or more of Revlon’s cosmetics. Being brief, concise and “on-target” has a real payoff.

A few days ago, I wrote an article titled, “The Long and the Short of It.” I commented on the enjoyment and benefit I got from a new book by Dr. Frank Luntz“Words that Work: It’s Not What You Say, It’s What People Hear.” Buy this book! Put it’s principles into practice. Reap the rewards! “Renew, revitalize, rejuvenate, rekindle, reinvent” is one of Luntz’s “Twenty-one words and phrases for the Twenty-first Century.” They work.

How am I planning to put this principle into practice? Follow this scenario: Continue reading “Communicate Effectively and Quickly” »

Share and Enjoy:
  • Add to favorites
  • Facebook
  • Twitter
  • Technorati
  • Print
  • email
  • Digg
  • StumbleUpon
  • del.icio.us
  • Yahoo! Buzz
  • Google Bookmarks
  • Orkut
  • SphereIt
  • Sphinn

The Long and the Short of It

“I didn't have time to write a short letter, so I wrote a long one instead.”

– Mark Twain

Touche, Mr. Twain.  You are correct – it is difficult to condense your message into a few words.  Namely, the right words – at the right time – for the right audience.

Words pack power.  Actually, choosing the right words will help you to deliver a powerful, memorable and actionable message.  “It's not what you say, it's what people hear.”  That is the subtitle for an important new book by Dr. Frank Luntz – “Words That Work.” 

You may recognize Frank Luntz as a prominent pollster and adviser to Republican candidates.  Put politics aside – many Democrats openly admire and envy his ability to shape a focused message and coach his clients to to stay-on and deliver that message with clockwork precision.  We can learn a lot from Luntz's book.  Regardless of your profession (sales, marketing, education, politics, communications, etc.) or your personal preferences, you need to acquire skill in order to persuade others adopt your ideas, products or services.  One chapter of the book is titled, “Twenty-one words and phrases for the twenty-first century.  A few of them are:

“Imagine”

“Renew, Revitalize, Rejuvenate, Restore, Rekindle, Reinvent”

“Patient-centered”

Buy this book.  Learn the lessons Luntz teaches.  People will start to hear what you say.  They will buy your products; accept your ideas; take the actions that you propose.  You will gain power – you will persuade!

The world in which we live and work does not allow us to “beat around the bush.”  If we have a point to make – or we want public opinion we must learn to cut through the clutter.  Don't give your customers 10 reasons to buy your product.  Give them one.  Or, at the most, three.  They will never remember ten.  Get them to remember … get them to buy … get them to take the action that you recommend:

“If you have an important point to make, don't try to be subtle or clever.  Use a pile driver.  Hit the point once,  Then come back and hit it again.  Then hit it a third time with a tremendous whack.”

– Winston Churchill

I love quotations – and use them frequently to make or illustrate a point.  They are succinct.  They are memorable.  They add to my authority and credibility when I use them.. They are powerful.  They persuade.

 

Share and Enjoy:
  • Add to favorites
  • Facebook
  • Twitter
  • Technorati
  • Print
  • email
  • Digg
  • StumbleUpon
  • del.icio.us
  • Yahoo! Buzz
  • Google Bookmarks
  • Orkut
  • SphereIt
  • Sphinn

How Well Do You Communicate? I Don’t Hear You

“It is the recipient who communicates. The so-called communicator, the person who emits the communication does not communicate. He utters. Unless there is someone who hears, there is no communication. There is only noise.”

– Peter Drucker

As always, the late, great Peter Drucker put his finger on the key issue. Unfortunately, too many speakers, salespeople, marketers, supervisors and spouses ignore this point – at their peril!

Communication is a two-way process.

Speakers may speak, but they are only words … unless the words that they speak reflect the experience of their audience. Salespeople may try to sell, but there will be no sale … unless their prospective customer perceives that there is a value for them. Marketers market everywhere everyday … but unless they market the right product to a receptive audience, it is just a waste of advertising dollars. Supervisors try to supervise daily … but most of the time their employees fail to respond in the way the supervisor hoped they would. Why? We know that spouses and significant other talk past each other on a regular basis … and to what result? The divorce rate is at an all-time high.

“What we have here is a failure to communicate!” This is a famous line from the movie, “Cool Hand Luke.” And it comes back to Peter Drucker’s observation:

“Before we can communicate, we must, therefore, know what the recipient expects to see and hear.”

No one can move an individual or an audience from Point “A” to Point “B” unless they really know the audience’s definition of Point “A.” It’s exact geographic and emotional location!

And this may vary from individual to individual in each audience and from audience to audience. If you want to be successful in sales (and who doesn’t?), you should spend more time asking questions of your potential customers than practicing your (one-size-fits-all) “spiel.” Successful marketers spend a considerable amount of time identifying – and locating – a “target” audience – one that has a high likelihood of being receptive to a (personalized) message. When the “communication” is “on-target” a demand is made – that the consumer makes a purchase or, at a minimum, asks for more information.

I am reminded of a book in my library by John Wooden – “You Haven’t Taught Until They Have Learned.” It’s the same principle at work here (as per Peter Drucker): Continue reading “How Well Do You Communicate? I Don’t Hear You” »

Share and Enjoy:
  • Add to favorites
  • Facebook
  • Twitter
  • Technorati
  • Print
  • email
  • Digg
  • StumbleUpon
  • del.icio.us
  • Yahoo! Buzz
  • Google Bookmarks
  • Orkut
  • SphereIt
  • Sphinn

The Power of the Pause

I developed a new training program to help clients improve their public speaking techniques. Its called “Make Your Presentations Sing!” Earlier this week I presented it for members of the Long Beach Nonprofit Partnership. As part of the training, I have my audience listen to several musical examples to clarify my point. Points include: story telling, vocal range, timbre, emphasis, breathing, phrasing, etc.

One of the most overlooked presentation techniques is – The Pause. As in “The Sound of Silence.” – You remember that Simon & Garfunkel’s classic song – “Listen to the sound… of silence.”

Far too many speakers talk too much and they lose the attention of their audience because they forget to pause.

Far too many writers use too many words – their text is too dense. They forget to pause – to use the “white-space” on the page to give more power their prose.

Far too many sales opportunities are lost because the salesperson talks too much – they neglect to use the power of the pause.

We are all guilty of this – to a greater or lesser degree. When is the last time you heard someone pause during a television interview or “debate?” Anyone who dares to pause for effect will never regain the opportunity to get another word in during that segment!

Salespeople are their own worst enemy. The can not stand to hear silence! So, rather than pay attention to their customers’ reactions and observe their body language, they barge ahead and fill the vacuum of silence – with their own voice. To what result? Frequently, they end up talking themselves out of the sale!

The same thing can happen during presentations. Inexperienced speakers “panic” during periods of silence. They worry that they are having a memory lapse. In their mind, the silence lasts for minutes – not seconds. They dare not look out at the audience for fear that they will see boredom – or people leaving. And so it gets worse. The speaker is now panicked – and they speed up, And, as a result, they lose more of their audience!

“A wise person once said that there is, in any good speech, a greater message in the pauses than in the words that surround them”

– Excepted from “The Articulate Executive” by Granville N. Toogood

To illustrate this point during my training, I play Tony Bennett’s interpretation of the Irving Berlin song, “When I Lost You.” I could not find it at the i tunes store. But it is from Tony’s 1987 Album “Bennett / Berlin” and it is sung “a cappella” which means singing without instrumental accompaniment. It is a great example of “The Power of the Pause” to establish a mood, to emphasize your point, to impart a memorable message. Try to locate this track. If you are not moved by the power of this performance, … Trust me, this is worth worth your time and money!

In Timothy Koegel’s book, “The Exceptional Presenter,” he cites a UCLA Study by Dr. Albert Mahrabian that revealed: Continue reading “The Power of the Pause” »

Share and Enjoy:
  • Add to favorites
  • Facebook
  • Twitter
  • Technorati
  • Print
  • email
  • Digg
  • StumbleUpon
  • del.icio.us
  • Yahoo! Buzz
  • Google Bookmarks
  • Orkut
  • SphereIt
  • Sphinn

The Rule of Three in Presentations

Later this week I will be leading a training session on improving your presentation skills called,”Make Your Presentations Sing!”  As part of my research I have come across several references to “The Rule of Three.” 

According to the “Presentation Helper” website, this “is based on the technique that people tend to remember three things.  On oratory it comes up all the time.”  Some examples:

1) “Friends, Romans, Countrymen” – William Shakespeare in “Julius Caesar”

2) “Blood, sweat and tears” – General Patton

3) The good, the bad and the ugly” – Film title

And, of course, we all know that the guiding principle for success in real estate is, “Location, Location, Location.”  So the Rule of Three is not to be taken lightly.  It does appear that there is a natural rhythm or cadence that helps the ear to naturally accept 3 points.  As Granville Toogood writes in “The Articulate Executive,”

“Summarize your key point or key points.  One or three, but not two or four, because the ear likes the odd number (two anticipates three, and four is too many to remember”).

So if you want the audience to remember your message, put it into a list of three – that is if you simply can not reduce your message to one point!  In this case make it one point with three subpoints to reinforce your message.  Some additional examples:

1) “Life, liberty, and the pursuit of happiness.” – from the American Declaration of Independence

2) “Government of the people, by the people, for the people.” – Lincoln's Gettysburg Address

3) “Never before in the field of human conflict was so much owed by so many, to so few.” – Sir Winston Churchill

I would never bet against Churchill or Lincoln when it comes to delivering a memorable message.  If three points work so elegantly for President Lincoln and Sir Winston… well, that will work for me – and for you, whether you are the audience or the speaker.  Use the Rule of Three to your advantage and your audience will remember you and your message.  Ignore it at your peril.  So start pruning the points on your PowerPoint slides immediately!

If you are still not convinced of the power of The Rule of Three, then tune into Comedy Central or listen to almost any comedian.  Here's a quotation from Alison Davis' Insights blog:

As John Kinde writes on his website, humorpower.com, the rule of three is particularly useful in comedy writing because “a funny line . . . is like a train wreck. You know where the train has been, you think you know where it’s going, but then you’re surprised when it goes off track.” So the rule of three sets up the joke and makes it memorable. Like the tee-shirt that reads, “World Class Cities: Paris. Rome. Fargo” The third thing is the kicker that creates the joke.

So, to sum up, here are three things to remember about the rule of three: It creates simplicity, aids recall and makes your job easier. What could be better?

I never try to “top” a good joke, so let me end my post right here.

Share and Enjoy:
  • Add to favorites
  • Facebook
  • Twitter
  • Technorati
  • Print
  • email
  • Digg
  • StumbleUpon
  • del.icio.us
  • Yahoo! Buzz
  • Google Bookmarks
  • Orkut
  • SphereIt
  • Sphinn