Tightening The Reins

Chinese curse or not, we do live in interesting times.

One common phrase, philosophy and set of practices current in business is to “tighten the reins”. With thoroughbred horses this may reasonably be perceived to “nobble” performance levels. So too in business.

Yes, a figurative tightening of all things can mean that risks are reduced, focus is narrowed – often onto cost containment – and greater control is exercised.

Among the additional consequences are a lessening of flexibility, a de-emphasising of creativity and innovation, a loss in recognition of the opportunities which exist, and sensitivity to the need for change.

Introspection can and does lead to enhanced efficiencies. Equally, a loss of an external focus may compromise effectiveness, relevance and competitive advantage.

The dynamics of society, the global economy and marketplaces are such that losing touch and becoming disconnected are real and all-too-often outcomes. Getting in touch with internal operations and micro-managing processes can often be at the expense of recognising, respecting, responding to and capitalising on multi-source inputs and rewarding outputs.

OPPORTUNITY COSTS

The old adage “What gets measured gets done,” retains its currency. So too does acceptance of certain innate biases within companies, typically emanating from the offices of owners and managers, as well as the corridors of power that inevitably lead to the boardroom.

Corporate cultures and philosophies are often moulded, refined and espoused by the leaders. Training, education, life experiences and nature all played a role and influence performance.

However, little consideration is often given to the lost opportunities caused by initiatives and directions like “tightening the reins”.

Quantifying them is often difficult, if not impossible. So too, measures of competitive standing and market positioning.

Notwithstanding those difficulties and initiatives, opportunity costs are borne by entities, large, medium and small in the long, immediate and short-term. It is therefore important that all strategic corporate decisions are founded on well-informed analyses of all available facts. In short, don't be blind to opportunities.

RISK – AVERSE,

OPPORTUNITY DENIED

Much of the fun and many of the rewards in business flow from the vagaries in dealing with people; be they customers, clients, suppliers, associates, competitors, staff members, shareholders or investors. Enjoy the ride!

The mantras of “cash is king”, “lower debt” and “avoid risk” are well and truly articulated in all phases of contemporary society, business and politics. Perhaps it is time to re-introduce certain realities, like:

•  Risk cannot be avoided, just minimised

•  Change is a constant state, not an option

•  Life is a terminal condition.

Truly great, successful and profitable entities expect, encourage, learn from and profit through failures. Their essential common creed is:

Fail often – but in small measures.

BIG, HARD DECISIONS

“Tightening the reins” usually avoids major marketing, often capital-intensive decisions.

Errors of judgements do not occur if decisions and choices are not made.

However, hope, scope, visions and growth are typically not fulfilled when big, hard decisions are suspended.

In short, one should be aware of the consequences and do not close one's mind to options and alternative courses of action.

ALLOW A LITTLE SLACK

Champion thoroughbred horses like Phar Lap, Black Caviar and Sea Biscuit, whether racing in a sprint or staying event, were always allowed a little slack in the reins.

Giving natural leaders there head is, well, natural. They have the right and the expectation to stretch themselves, to aspire, to achieve and to sustain. So too business.

Financial and operational prudence are ill-defined benchmarks. Intuition is a fundamental ingredient and a guiding value. It is also subjective.

A tightening of the corporate reins should be applied judicially, to avoid unnecessary and unintentional constraint.

To do otherwise, will bring down the wrath of the stewards, the Clerk-of-the-Course, or the shareholders and the marketplace, if you will.

KEEP YOUR HEADS DOWN

“In the land of the blind, the one-eyed man is King”. It is a saying which has particularly pertinent at present.

With so many management teams responding to calls to “keep your heads down”, the vision and perspectives are limited. Being constrained to the parameters of the figurative trenches impinges on the prospects for action.

Those who take a calculated risk to stick their heads above the “turrets” may well find a landscape, the marketplace if you will, with countless unfulfilled and non –competitive opportunities.

WHAT IF?

Changes and improvements in performance inevitably flow from changes in attitudes, perceptions and confidence levels. Each of the latter can be materially influenced from objective evaluations of situation analyses.

Therefore, the initial steps to address and to redress the emphasis of “tightening the reins” involve the agenda of all future management, marketing, planning and selling meetings to feature prominently fundamental questions:

•  What if we do...?

•  What if we do something new?

•  What if we do something different?

•  What if we stop doing...?

Long may you reign over hesitancy.

Regroup, Re-Growth

The dawning of a new reality.

There is an increasing awakening among business owners - big, small and micro - that the consequences of the Global Financial Crisis (GFC), the end of the capital expenditure mining boom and the debt dilemmas of Europe have included unintended, undocumented and non defined changes in business cultures, philosophies, policies and practices.

Customer service standards, relationships and instances of referrals have all been adversely affected.

The needs of in company signage, corporate literature and public utterances about commitments to and the pre eminence of customer service, quality, value, change and innovation remain. They stand Stark naked and contradict the daily experiences and perceptions of team members, clients, customers, associates and suppliers.

The ideals persist in the minds of some, but their attainment and maintenance are impeded, filtered and blocked by a seemingly omnipotent preoccupation with cost cutting, retrenchments and operational containment. Ideals are often compromised by marketplace realities. Words are debased by actions.

CONFUSED MESSAGES

Confusion abounds. Contradictions militate against well intended endeavour.

At the same time staff members are encouraged to extend themselves, to reach out to clients and customers to provide service excellence, to ensure accuracy, quality and value. Statements - if not pleas - are made for them to reduce costs, eliminate waste, rationalise inventories and to implement cost - free efficiencies.

Not surprisingly, in many instances morale is down, tensions are up, performance levels are inconsistent and tolerance levels are wafer thin. In short: the rubber band has been stretched to near breaking point.

BODY LANGUAGE SPEAKS VOLUMES

Most conspicuous in many businesses through Australia, New Zealand, Britain, Europe and North America at present is the overt body language of service providers and professionals.

Arguably, the gestures are unrehearsed and unintended, but they do speak volumes to the clients and customers.

The rolling of eyes, the shrugging of shoulders and the figurative dropping of shoulders should perhaps be confined to the underperforming Australian Cricket Test teams. Sadly, the attitudes are toxic and infectious.

Coaches of all codes of high performance sports and business people implore their people to look and to act like professionals.

Verbal slips are like dropped catches, they lose matches. Sales and relationships are literally walking out the door.

MAKE A STATEMENT

There is need for business leaders to assemble their team members to make a statement, to recommit to the corporate vision and ideals, to redefine the goals, the service values and, above all, the beliefs which have, do and that will continue to drive the company, its people and network.

The benefits will flow. Rekindling a sense of pride, positive self image and aspiration will be promptly rewarded.

Reason, not rationalism, should be the fundamental driving force.

Understanding, support, compassion and passion will and does engender cohesion, interpretation and confidence.

Declarations by business leaders and owners about tolerance of prudent risk taking, single shot failures and suboptimal performance will promote a sense of adventure, desire and proactive behaviour. Being in control is often founded on the reassurance of support from higher ranks.

DO SOMETHING DIFFERENT

One business truism is worth repeating:

“Nothing meaningful or better will

happen unless and until you

do something different”.

“Holding the line” will, at best, maintain the status quo. It is an attractive and appropriate proposition for very few entities, business owners, nations and individuals.

“Holding out” is perhaps worse, because one is then dependent on external factors, forces or entities to initiate a change for the better.

“Holding on” begs the question... for how long? It also implies you have encountered the ubiquitous “cliff” and are dangling precariously.

Now is the time to “let go”, not to hold on. The later implies and typically results in consolidation, contraction and solace.

To regroup and to seek regrowth necessitates an unshackling of mindsets, paradigms and the micromanaging of processes.

In many instances spreadsheets should be set aside and emphases on cost savings need to be reprioritised. All people need to figuratively and literally stand up, stretch out and walk about.

Talk, engagement and interactions generate refocus. They stimulate enthusiasm, facilitate recognition and differentiate one from the predictable, inertia, the mundane and lethargic norm.

DON'T COMPROMISE

Tangible and intangible rewards await those who commit to uncompromised customer service excellence, quality, value and consistency.

Investments in time, money, people and resources will doubtless be required. It will involve outlays before benefits, an orientation to outcomes rather than to processes, and most particularly, a bias to longer - term strategies, in preference to shorter - term tactics. Step up now:

Step 1:     Regroup

Step 2:     Refocus

Step 3:     Regrow

Enjoy and profit from the journey.

Differentiate Customers From Consumers

Sales, profits and customer satisfaction leakage are a fundamental current reality. A key important insight in the cause is that too few business owners, managers and service providers are aware of, sensitive to or see the need to differentiate between their customers and their consumers.

The consequences include sub-optimal sales, disenchanted consumers, fractured relationships, a lack of loyalty and isolated instances of previously scarce recommendations and referrals. Often there is a bewilderment and a sense of alienation on both sides of the relationship.

The apparent disconnect between business, service providers and their consumers is widespread. It explains in part the seeming chasm between the perceived service standards provided by companies and the experiences recalled by both customers and consumers.

A recent national Australian study revealed that 82% of business owner and manager respondents stated that the service offered by their businesses was either “good”, “very good” or “exceptional”.

Customers didn't agree. Only 8% nominated one of those three categories in their assessment of service standards in Australia.

UNDERSTANDABLE CONTRADICTIONS

The disparity is understandable. Many relationships in business-to-business circumstances are founded on the contacts between the product or service provider and the Purchasing Manager or Purchasing Officers.

Recent detailed analyses of 250 Australian companies of all sizes and across a wide spectrum of professions and industry sectors revealed that 63% of senior managers confessed to not knowing their customers in a full and any meaningful manner.

Isolating and studying the criteria utilised in the selection of companies, products, services and people enable effective and efficient strategies, tactics and campaigns to be formulated, documented and implemented.

With little or no direct contact between suppliers and operations executives, line managers, operatives and “hands-on” utilisers of products and services it seems reasonable that for the latter to believe customer service is poor or completely lacking. They typically conclude that specific suppliers “don't care” and “don't understand”. In the absence of personal interactions, it is indeed difficult, if not impossible, to convey a sense of caring and understanding. Emotions often influence, determine and overwhelm perceptions.

Clearly, greater effort is needed for all those in business to reach out, connect with and to engage with existing, prospective and past clients.

MULTIPLE CONTACT POINTS

The mobility of the contemporary workforce contributes to the fracturing, termination and fluidity of relationships.

Personal rapport is with the individual, including those who leave the business. Respect and demand for products, services and brands are therefore vulnerable and exposed to rapid dilution.

Dedicated efforts are required to establish, enhance and to sustain multiple, often interactive person -to-person and cross-departmental interactions.

To not to do so can literally see business, revenues, profits and relationships walk out the door as the employees leave positions and the employment with a company.

The loss of momentum and continuity can be, and is, taxing on revenue and necessitates the redeployment of considerable resources (time, money, people and equipment) to address and redress the circumstances.

Business purchase decisions can be, and are often, materially influenced or determined by external consultants. Therefore, ongoing relationships with them are imperative.

Likewise, intimate knowledge of who specifically scripts tender documents accords strategic advantages. Certain, high-profile international IT hardware and software suppliers dedicate some 25% of their workforce to be on secondment to work within client companies, assisting and complementing staff members to outline criteria for major capital and consumerable expenditures. Very smart. Some leaders like to not only know intimately the decision makers but to also be, figuratively, “at the table,” when decisions are being made.

Imagine the inherent power of product and service specifications nominating particular brand names and model serial numbers.

BUSINESS - TO - CONSUMERS

The scenario differs little with relationships involving consumers.

Females, typically the sole or joint heads of the households, fulfil the primary role of customer in up to 70% of instances.

It is she who transacts the purchase. Consumption, enjoyment and satisfaction often lie with other family members. Few direct channels exist to provide direct feedback to suppliers from the latter group.

Yet most importantly, they are the very people who evaluate and nominate specific brands, products, services and outlets. Alas, the unseen power behind the throne.

For example, up to 55% of the criteria applied in the selection and purchase of a “family motor vehicle” are determined by the children. Some younger, and discerning consumers simply won't be seen “dead” in certain brands of motor vehicles.

For the disbelievers, it is well to ask the mothers of three-year old girls about who decided which garment was to be bought – and which colour .

TRANSGENERATIONAL INFLUENCERS

Managing Director of the Grand Cinemas network, Allan Stiles knows well, and closely studies his customers, consumers and spheres of influence.

He is alert to the influence and essential roles played by grandparents and grandchildren. Who have a material impact on the sale of soft drinks, popcorn and chocolate.

Furthermore, the scheduling of screenings take account of these contributors to decisions.

Allan Stiles and his team members are forever vigilant in providing clean, appealing and safe ambiences. Sometimes the core product, the movie, is a secondary consideration or determinant.

NO ONE IS IMMUNE

No entity, private or public, product or service is immune to the ever -changing influences of customers and consumers.

In today's marketplace many businesses are in earnest battles to win the hearts, minds and money of existing, prospective and past clients.

They might need to take note, to learn and profit from a basic tenet of military strategy:,

“KNOW THE ENEMY”... customer, consumer

DIY Advertising.... Tread Carefully

The internet gives access to a seemingly limitless array of applications, information, graphics and capacity.

For the uninitiated, unskilled, naive, but often well-intentioned, it exposes owners, managers and the business to the prospect of mediocrity and, possibly, embarrassing incompetence. Beware unskilled endeavours on-line (and in life generally).

Internally generated images of entities, properties and individuals are often unprofessional and compromised, and responses marginalised.

Evidence abounds in all media and public presences. The poor quality, irrelevance, unappealing presentation and marginal readability of much real estate advertising and promotion are proof-positive of the contention.

Newspaper advertising volumes for the real estate sector are down by as much as 80% in some mass circulation publications. Among the common responses by those in the real estate sector is that the blame lies with the medium, rather than the content.

A close study and analysis of what pages are left for reading by intending home buyers quickly highlight a regression to the 1950s and early 60s: the “selling era” has been reborn.

A bias to Product, Price and Place is occasionally relieved by a focus on Person. Photographs for most real estate agents appear to have been taken on a mobile phone and transmitted direct to the publication. Any consideration of quality appears to have been overwhelmed by an emphasis on cost-saving. False economy indeed.

Would you buy a home from the person featured in such photographs?

Many direct - mail - pieces and hardcopy catalogues for hardware retailers, homeware networks, electrical contractors, plumbers, tradespeople and discount operations suffer from the same deficiencies. Little wonder response rates from direct-response communications have halved during the past five years.

In many sale and discount catalogues the things that are most discounted are the images and brands of the company, the products and the services.

LOW COST, LOW RESPONSE

A large pool of experienced, qualified, creative and innovative advertising professionals, including wordsmiths, graphic designers, media planners and strategists exists throughout Australia. They are largely unrecognised, under-valued, under-utilised and begging for the chance to address challenges and provide effective inputs for clients who value quality.

The costs of such talents are a sensitive issue, one which overwhelms appreciation of the value inherent in such intellectual property.

It is these professionals who appreciate the roles and importance of target-marketed communications, with a strong element of emotion that provides the foundations for establishing, sustaining and enhancing a compelling reason for customers and clients to visit (on-line and in person), to stay longer, to purchase, to revisit, to reconnect and, above all, to become strong brand advocates.

SAVE OR MAKE MONEY

The pervasive, enveloping forces of the current tight and competitive local, national and global economies and marketplaces have, understandably, been instrumental in instilling a sense of need and a strong drive for business owners and managers to undertake actions that save money. Save me, please!

The essence of commerce, enterprise, entrepreneurism and business is to make money, not to save money. The two are, in many respects, divergent mind-sets.

Eliminating risk taking and constantly lowering costs ultimately lead to inertia, regression, entropy and loss.

In a marketplace that is experiencing widespread reductions in communication, (volume and quality), the effect of an ability to stand-out, to make an impact, to resonate and to influence with well-crafted and executed advertising, marketing, merchandising, promotions and selling is immense. But, the full potential will not be realised by DIY (Do It Yourself) advertising in particular.

RESPECT

Overall, greater and more consistent respect needs to be assigned to corporate identification packages, brands, packaging, premises and staff presentations.

Now, more so than for any time in the past decade, disciplined adherence to standards must be invoked and maintained.

Advice, input and feedback from life partners, family members, employees and close associates do not qualify or achieve the status of objective, detailed and professional contributions.

DIFM MARKETPLACE

Significant strategic and structural changes in buying patterns and preference have been conspicuous and influential in European and North American marketplaces. There has been noticeable progression from the DIY (Do It Yourself) market segments in hardware, food and a host of other categories to DIFM. That is, “Do It For Me”.

Consumers are happy to pay for the service, the professionalism and enhanced presentations.

Sadly, Australian businesses have been slow to embrace the service and its opportunities.

In advertising, marketing, merchandising and promotions there is much to be gained by those who have recently lapsed into DIY advertising to evolve, develop and progress to DIFM advertising.

The selection and placement of fonts, wordings, headlines, graphics and the selective use of spacing are an art form.

The innate nuances have multiplying and magnifying impacts on consumers' responses and actions. This is simply an aspect of advertising and marketing that should be left to the professionals. Personal preferences have little relevance.

"Deploying Countervailing Forces"

Countervailing forces create tension, which in turn, establishes the dynamics of change, for better or for worse.

In business the two dominant forces are corporate culture and marketplace demands. Both need to be recognised, respected and managed, if a leader is to achieve and enjoy optimal performance.

CULTURE STRICTURES

Established, conservative entities often have prevailing cultures that demand and expect compliance and conformity. These often serve a self-interest to maintain the status quo.

Many trade and professional associations underperform because of a dominant presence on boards of executives from large, major and established member entities, whose self-interest is served by retention of the prevailing standings. Sadly, that can and often does lead to inertia. The question arises, “whose interests do we in business seek to serve?” Beware vested interests!

Little wonder that many companies, products and services have lost touch with market-force demands, expectations, needs and wants.

At all times and with each corporate culture an external focus is imperative. Such orientation will ensure relevance, currency, competitive advantage, benefits and above all, persistence.

DEPENDENT INDEPENDENCE

Conversely, co-operatives, buying groups and marketing networks suffer strategically and tactically because too many of those in their respective supply chains have little regard, respect for or appreciation of the innate value of a good brand. In such instances, the key issues are a lack of discipline, structure and endorsement of standards. Independence is a virtue for one, but not for an intended integrated collection.

In many instances, a prime casual factor for a lack of the essential characteristics of adherence and discipline are poor or an absence of appropriately applied recruitment and induction procedures. Managing expectations should be applied to those within the network, as well as among customers and clients.

Ownership and membership involve rights and obligations. Single-dimension rewards such as lower bulk-buying purchase prices are typically short-term, can be and are readily countered by competitors and are counterproductive in the pursuit of cohesion, integration and tolerance.

A state of corporate entropy soon follows. That is, - inevitable and steady deterioration: all things go to a state of disorder, in a word, disintegration. Look around, evidence of such abounds. Companies are folding, brands are disappearing and associations are merging.

MARKET FORCES

The market appeal of change, and innovation demands that businesses and associations invoke, promote, celebrate and reward a spirit centred on dynamic adherence to polices and discipline.

That involves risk, a tolerance for failure and the need for resilience to adapt, adopt and to enhance as an integrated, cohesive force.

Marketers applaud this approach, espousing the belief that consumer and client dictates determine the appropriate, and often changing set of rules and success-rate determinants. Their convictions are founded on the contention that “those who write the rules, determine the appropriateness and relevance, and are rewarded accordingly.” Consumers and clients accord such rewards in the form of increased revenue.

THE SCENARIO

True leadership is not a simple art. It involves compromise, often sub-optimal choices (typically in the short-term), the acceptance and tolerance of risk, failure and the ongoing need for change, innovation and creativity.

Time, money, resources and effort are needed to be invested to educate, inform, enthuse and ensure adherence to policies and philosophies by those within the supply chain and to foster appreciation by those whose needs and wants are intended to be fulfilled and satisfied.

All business environments exist in a field-force of countervailing forces. Care must be taken to review, analyse and, if necessary, refine the following elements:

•  Corporate Culture

•  Corporate Driving Force

•  Marketplace demands and expectations

Achieving a balance between those forces is the mark of a good leader.

EFFICIENCY IS NOT ENOUGH

The principle and practices of the “Six Sigma” concept seek to eliminate variation, errors and waste in production processes. Costs are minimised; efficiency and productivity, within a set framework and template, are achieved, optimised and maintained.

Efficiency is a cornerstone respected by seemingly all adherents and advocates of Six Sigma.

Effectiveness is quite another dimension, because change and dynamism are not necessarily totally compatible concepts to that with Six Sigma.

Therefore, the countervailing forces of the production, auditing, cost control, marketing, merchandising, advertising and promotional need to be managed and, to the extent possible, balanced.

FIRST STEPS FIRST

The initial phases for a company, product or service to reassert itself in the marketplace often is founded on a review, refinement and enhancement of corporate cultures, company driving forces and the ability to identify, analyse, service, fulfil and satisfy the ever-changing needs of consumers, all within the parameters of a disciplined, integrated and cohesive network and supply chain.

In-store, On-line, By-mobile

Business evolution is fast becoming revolution.

All cycles - product, strategy and campaign - are being concertinaed by a staple diet of creativity and innovation.

The full and true measure of opportunity is being shortened. It is not yet a case of “the quick and the dead”, but it's getting there.

Casual visits to stores, complemented by the traditional of window shopping have given way to on-line visits – before the buying cycle has advanced beyond the early phases.

Look around. One readily identifies the trappings and consequences of further advances. A total of 23 million Australians own and operate some 25 million mobile phones, of which 14 million are classified as smart-phones.

The world is now fast going off-line, making obsolete personal computers, the internet and, yes, tablets.

A mobile world has arrived and with it new opportunities, as well as inevitable failures for those entities that are not restructuring and revolutionising their processes, practices and philosophies.

apply yourself

Three increasingly popular and utilised smart-phone applications are making huge impacts and are changing local, national and the global business landscapes.

QR CODING

Quick response coding is expediting the retrieval of information and the processing of transactions. There is less need for service providers with extensive product knowledge. All the information is readily available to the consumer via their smart-phone.

Processing of credit card transactions can be finalised without the necessity of signing, verification of signatures and confirmation of 3 and 4-digit codes numbers.

That is convenient and appealing.

URL

Uniform Response Locators is an application which enables the intending purchaser to collate data about the availability of nominated and preferred products, the prevailing prices and the location of competitor premises instantly (within defined geographic parameters), all from within the first business visited.

It puts a whole new complexion and timeframe to the concept of comparison shopping.

Those businesses that aren't “wired” to and for the application are literally not in the race, or on the shopping list.

NFC

Near Field Communication enables retailers, manufacturers, distributors and consumers to interact and become actively engaged with prospective purchasers.

A walk down a supermarket aisle with a wired shopping trolley can generate a mine of information about displayed merchandise, special offers and joint promotions. The application informs, influences and directs consumers, empowering them with information, choice and seemingly limitless authority to buy or to ignore.

The one common dominant characteristic is mobility and the means is a hand-held piece of mobile telecommunication hardware.

FROM PASSIVE TO ENGAGING

One striking feature of the contemporary “mobile” economy and marketplace is the innate need for and advantages to engage with existing, prospective and past clients.

Some business leaders and innovators have been quick to embrace the principle of “joining the conversation”.

Reliance on passive mass-media-based advertising campaigns that are centred on discrete 30 and 60-second radio and television placements or in set-sized print and outdoor advertisements is waning. The consequences are evident in the stock-market values of traditional mass-media companies.

Previous “rivers of gold” revenue streams, particularly enjoyed by newspapers, in real estate, homebuilding, land development, motor vehicle sales and employment have migrated to on-line channels and are fast evolving to mobile application sources.

The content, context and style of communications are under constant review and refinement. New has become news – with strong underpinnings of value, worth and relevance.

FROM SCARCE TO PLENTIFUL

An integral aspect of the transition to the current “mobile” economy and marketplace is the obsolescence of the “dark art” of traditional economics.

The discipline of economics was founded on the allocation of scarce resources. That belief and the consequential economics business model are understandable, given their genesis during the mercantile era of centuries past.

Mercantilists dealt with the exchange and trading of “things”. In essence, if one had a “thing”, then by definition another didn't. The need or the want for such determined its monetary value. Economics assigned relative values and priorities for the determination of what resources would be allocated for the extraction, manufacture, development or growth of differing commodities (typically, things).

In the current “mobile” economies and marketplaces entities, consumers and governments have to contend with abundance, a seemingly endless supply of information, channels, sources and audiences.

Access to such is often just a click away. For many this is a daunting reality. For others it offers choice, power and influence. Arise, the informed, discerning, price sensitive and demanding consumers. These are individuals and subgroups who are not economical in the use of those options available to them.

Multichannel and omni-channel are phrases and concepts that are and will be essentials for competitiveness, relevance and to be capable of managing and fulfilling customer expectation.

Care must be taken to ensure that the focus is not on the process, but rather on its application. Success will be enjoyed by those who respect the need to be effective and efficient in which “How”, not “What” is applied to realise the apparent boundless scope for growth and development.

THE BIG CHALLENGE

Many of the global on-line leaders, including Facebook, have found it difficult to generate income and profits from the migration to mobile.

That is a storyline common to many local businesses which have recognised and then embraced the changing trends. Many have become bemused and frustrated by the marginal quantifiable returns.

Therein lies the big challenge. Adroit strategies, judicially applied and maintained will be rewarded and competitive advantages enjoyed. One fundamental will be the need to build effective bridges between in-store, on-line and by-mobile.

Selling Era Returns

Regression. It is a chilling thought for business leaders and marketers. More disturbing is that for many businesses it is, seemingly a current reality.

Individual, sector and collective advertising have regressed, gone backwards to pre-1962 style advertising.

A review of much current advertising highlights a preponderance of product/price/place cataloguing in national, state, metropolitan and local newspapers, together with the copy of direct-mail pieces, along with the focus of television, radio and online communications. There is scant or no evidence of projecting the promises, advantages and benefits of value.

Little wonder business owners and managers report limited and spasmodic responses to advertising (regardless of the media utilised), heightened price sensitivity and a decided lack of consumer loyalty, repeat and referral business. These are natural consequences of communication which lacks emotion, positioning, brand imaging and, above all, consumer and broader market education.

“Price catalogue” advertising and merchandising presumes consumers/readers/ viewers/listeners are aware of brand attributes, are informed about features and points of difference, have determined value and are now simply seeking to conclude a purchase decision based on the best available price. That is a reasonable presumption for not more than 20% of customers for a broad sweep of products and services.

The primary concern for marketing analysts and strategists should correspond with that of all business owners, managers, sales and service professionals. The core focus should be on the 80%+ of prospective customers and consumers who could be, and will greatly value being educated, marketed and sold to, so that they can conclude informed discerning and value-based decisions.

Sadly, too many jewellery, hardware, fashion accessories, cosmetics and other discretionary product categories are being “sold” on price discounting.

Bold price-centric “Sale” advertising copy replies on the economic rationality of consumers, in an era in which established business models have been replaced, and which is driven and influenced by sentiment.

Calls for significant 0.5% and 1% reductions in official interest rates by retailers, home builders, real estate agents and property developers are, perhaps, understandable, but misplaced.

Lower interest rates will not stimulate widespread improvements in consumer and public confidence. A lack of confidence is not the major impediment or “head wind” that is inhibiting demand and sales.

Consumers have changed. By and large, they are not afflicted by a lack of confidence. Most individuals, couples, families and corporate executives and boards of directors have embraced and are adhering to a strong measure of financial prudence.

In short, they can spend, but are not doing so because they feel the “rewards” from saving exceed those enjoyed by spending at this time.

A large percentage of the full-and multi-page price-centric newspaper advertising is not recognising, addressing or redressing the new marketplace frame-of-reference.

WHO'S TO BLAME?

During a recent interview on Perth radio station 6PR, host Paul Entwistle stated that he had withdrawn from his university studies in marketing because his lecturers exhibited a consistent over emphasis on price-based marketing.

He earnestly believed that he was being subjected to lectures on sales, not marketing and that there was a better and more profitable way to do business.

It was a sobering wake-up call from an astute, 30-something media commentator.

Perhaps a new product-oriented selling era has evolved. To Paul, it had all the hallmarks of regression, and with it all the downsides of extreme price sensitivity, lack of loyalty and widespread ignorance and indifference about the innate value of recognised, trusted brand names.

IN-TOUCH MARKETING

The companies, products, services and applications that are enjoying local, regional, national and global success have common philosophies, attributes and marketing strategies. Apple, Twitter, Microsoft and Nike respect and utilise their recognised and trusted brand names, with an emphasis on product and service development, enhancement and support.

For these entities, innovation and creativity are not aspirational goals. They are realities and imperatives - core values. Discounting, sales and price offers seem incompatible and inconsistent with their respective and collective market presence.

There is a certain “feel-good” factor in deciding to buy, own and operate those brands. The measure is subjective and the outcomes are value and customer satisfaction.

POST-WAR BABY BOOMERS

There is nothing post about the “baby-boomer” generation.

Those born during 1945 – 1962 experienced and were an integral part of the birth of marketing and the consumer era.

The first school of marketing in the world was established at Harvard in 1947. Birth rights were assigned to the “Consumer Era” in 1962, as the first of baby boomers reached 17 years of age, left school, secured employment and began consuming in earnest.

The emphasis on product features was subsumed by brand names, images, fun, freedom, choice and emotion, Carnaby Street, Jane Asher, Twiggy, The Beatles and projected images, to which the new consumer era purchasers wanted to relate.

Many younger generation X, Y and Z members relate to, enjoy and are influenced by the music, lifestyle pursuits and images of the marketing era.

CHANGING DIRECTION

The calendar year 2013 is a tipping point, during which there will be a change of direction by those seeking success. They will discard regression, embrace progression and become involved in the procession of emotions, marketing and value.

Arm Yourself, For The Battle For The Mind

Social media, and the internet in general, are largely “blind” media.

They can be frustrating, time-wasting and inefficient.

Entries and enquires about wide-ranging but pertinent topics, products and services elicit countless responses, most of which are irrelevant and unappealing. Information overload abounds.

Use of SEO's (Search Engine Optimisers) simply cluster companies, brand and service names, among large, often spuriously ranked groupings.

Being on the shopping list has very little quantifiable and lasting value. Nor does the standing of being “first amongst equals”.

Establishing and sustaining unique, differentiated presences in the marketplace is difficult.

In the brave and new world of digital, mobile, on-line, multi or omni-channel reality, the importance, nature and value of effective branding is deepened and broadened.

PROMOTE BRAND NAMES

Investments in brand names have strategic and tactical implications.

Recognisable, well defined and promoted brand names, that have a consistent and conspicuous presence, enjoy almost unassailable competitive advantage.

Traditional mass media channels are fracturing. Forced choices between channels and brands are redundant options. Integrated multi-channel (or omni-channel) communications are imperative, because it is difficult to select a single medium and to analyse its effectiveness among targeted audiences.

Interestingly, the most effective, most profiled and most heavily used social media are brand names which have entered the general public lexicons and been transformed from nouns to verbs. Think, Google, Twitter and Facebook, each of which now implies actions being taken by followers and users of the respective social media brands.

Moreover, these social media icons have been their own promotional product platforms.

BATTLE FOR THE MIND

Since its creation in 1969, by advertising and marketing leaders Jack Trout and Al Ries, the concept of “Product and Marketing Positioning” has been the foundation of all great advertising, marketing, merchandising, promotional and selling strategies and campaigns.

Astute business leaders and product managers were quick to learn that the battles for market share, revenue, profits and competitive advantage were not being fought in the streets, the marketplace or economy, but rather, in the minds of consumers and clients.

The mind is a dark void, free of the external visual, aroma, touch and spatial stimuli.

Visual merchandising professionals often refer to “scotomas”, that is, “store blindness”. Consumers simply do not see, perceive or respond to product displays, signage and attractive visual presentations.

The innate nature of on-line and social media is brand blindness. For those who overcome these barriers, filters or distortions, better times and competitive advantages await.

Positioning and reinforcing the brand name in the mind of the customers and clients through effective use of promotional products is fundamental.

In many instances the mind is uni-dimensional. That is, it brings to attention one brand... the first brand... the brand that wins the battle for the mind.

ON-LINE ENHANCEMENT

The widespread disillusionment among business leaders about the lack or spasmodic return from investments in on-line and social media is best addressed and redressed by effective cross-media promotions, that heavily accent brand name promotion.

At the forefront are, or should be, promotional products in their many guises and applications.

On-line, and in business life, it is better to be first than it is to be better. Those who are first (in the minds of existing, prospective and past customers and clients) do not have to contemplate being better. In marketing, first is an absolute. The first company, product, service or person is recognised and often accepted as the universe. There are no comparative measures.

SHARE OF MIND

The long-held adage in advertising of “share of mind equals share of market” is a truism which should be pillar for promotional products.

In short, all business people need to recognise, respect and adhere to the principle of getting there first and staying there. One effective means to that ideal is promotional products.

CONCLUSION – NO CONFUSION

To achieve “cut-through” in marketing and advertising it is important to avoid clutter and distractions.

Promotion products, by their very nature, are focussed, specific and brand oriented.

Accordingly, they are an important, pre-emptive and complementary component to an effective integrated and disciplined multi-channel mass media campaign.

So go on, do your job. Go out and promote that which works well in the contemporary market place... brand names and promotion products.

Reach Out, Connect, Engage

Omni-channel and multi-channel are in-vogue phrases and concepts. They reflect the presence and need for parallel and compatible avenues to reach out, connect with and to engage existing and prospective clients and customers.

TWO-SECOND ATTENTION GRABBING

Consumers and corporate executives are increasingly scanning media sources, with little inclination to undertake detailed study and comprehension of the wealth of available information.

Therefore, the challenge for all communicators is to grab and arrest the attention of targeted audiences within a 2-second time span. That equates to a maximum of four words.

In short, think and develop skills in creating and enunciating headlines. The trends evident in the transition of newspapers from broadsheets to tabloids should be applied by all businesses. Single-word headlines can be effective in projecting statements and challenges, while also injecting emotions in many topics.

Short, pithy newspaper, catalogue and outdoor advertising headlines are effective means to generate increased contact with on-line channels, which provide detailed and comprehensive information and intelligence to progress and expedite the purchasing process.

TALK IS CHEAP

Much is made of the personal and intimate nature of on-line and social media interactions.

It is a characteristic and skill found wanting in many communication strategies. Engaging people, customers and clients on-line involves personal, individual and real-time interactivity.

There is nothing more customer-centric than having the individual believe that he or she is the centre of their own unique universe.

Interestingly, the aspects of personal contact and intimacy are elevated when cross-channelling strategies lead to verbal communication. The spoken word has the added attribute of nuances and emotions which are readily registered and valued by consumers and prospective customers.

Talk is cheap, but wages are high... an understandable and predictable sentiment. However, when measures are applied to sales conversion, effectiveness, efficiency and productivity, talking directly and personally to a customer is value.

BE ACTIVE, NOT PASSIVE

Out-bound, unsolicited telephone calls are widely tainted with negative stigma. Inertia-selling techniques elicit defensive and negative stereotypical images.

Recent marketing study findings reveal that some 98% of company-initiated telemarketing calls are rejected or declined in the first instance.

The single biggest reason for the lack of success of such calls is “the time is not, or was not right”. Numerically, it is double the percentage assigned to having no interest in or demand for the product or service on offer.

Significantly, 83% of survey respondents stated that no attempt had been made by telemarketers to schedule a follow-up call. Alas, opportunities lost.

A distinctively different set of responses arises when consumers who initiate contact on-line are invited to receive an immediate return telephone call by landline or mobile. This is particularly the case when considerable emotion, subjectivity or information analysis are involved in the purchase decision.

Buying commoditised, price-sensitive products and services involves a very different set of dynamics. In such circumstances on-line communication alone will often suffice.

VERTICAL CHANNELS TOO

Omni-channel and multi-channelling is not limited to lateral relationships. It should also involve vertical channelling. An example is the relationship between the interest and demand which is stimulated and generated by mass-media placements and the closing of the buying process by disciplined, well-informed and appropriate selling by point-of-purchase service providers.

Huge percentages and dollar values are forsaken and lost because front-line staff members are not aware of the conduct or the specifics of marketing, advertising, promotional and merchandising campaigns. Compounding the issue is that management does not involve staff members in the campaign launches and schedules, with particular attention to formulating, documenting and implementing particular sales strategies, to optimise sales and profits.

TEMPTING TECHNOLOGIES

The introduction and application of divergent technology in the interactions with customers foster disconnection and a lack of engagement between consumers and service providers who are the essential brand ambassadors and image builders of companies, products and services.

It is now possible for consumers to visit supermarkets, walk the countless aisles, make product selections, pay for the purchases and leave the premises having had no interaction with supermarket employees.

Fading brand loyalty will become an increasingly conspicuous phenomenon in the near term.

CONCLUDING COMMENTS:

Omni-channel and multi-channel is now a non-negotiable reality. The concepts applied must be vertical and horizontal for the full potential to be realised.

From Unknown To - Understood

Economic boom times accommodate, tolerate and facilitate large measures of inefficiency and ineffectiveness.

Inherent in many past mass marketing strategies and initiatives were varying percentages of poorly targeted communications. Wastage factors were typically sizeable, but arguably affordable because of the sheer volume of business potential. Some customers simply fell in the cracks and felt that way, with little recognition of their plights, disappointments and unrecognised and unfulfilled needs, wants and aspirations. Little wonder that customer loyalty was mostly read about in marketing and sales publications, rather than being experienced and enjoyed in business relationships.

Since the onset of the Global Financial Crisis, many management teams have necessarily reviewed, refined and enhanced many aspects of business operations and processes. Understandably, budgets have been reined in. Communications have become better and tighter focused. Wastage and leakage factors and costs have been identified and are being progressively eliminated.

Among the more notable and costly inefficiencies of the past were generalised advertising, marketing, promotional, merchandising and selling initiatives. Customisation was applied occasionally, if not sparingly, because of a lack of substantive information on primary, secondary and tertiary target audiences.

ON-LINE, ON-SONG

Being on-line and connected has established a whole new world of expectations, demands and disappointments among consumers.

Pre-GFC, mass media campaigns were typically generalised and lacked strong measures of productivity, particularly in social media. The bold, general headlines were and remain, for many consumers, turn-off factors in cyberspace.

For businesses, effective emails, texts, Twitter, Facebook and YouTube exchanges need to be personable, intimate and respectful.

Purchase agendas are not determined or set by the corporate communicators. The potential or actual consuming communicatees are most responsive to positive information, intelligence and personal experiences or commendations.

The self-belief that one is unique, different and discerning is alive and well on-line and on the streets. Communication styles need to reflect those attributes and ideals.

MISS UNDERSTOOD

Many women are justified in being “miffed” about being ignored, not recognised or being misunderstood. Their roles, importance and influence in stimulating purchases and expediting the various stages of the buying cycle were and still are often over-looked, not studied, analysed, respected or addressed.

Lagging demand and poor sales volume can be explained, in part, because of the lack of sensitivity and responsiveness by marketers and management teams to the unique and divergent perceptions, preferences and dictates of female consumers. For example, some 72% of the decisions for families to contemplate and decide on the purchase of a new residence are initiated by the female head of the household.

There are a discrete number of “hot-buttons” which “turn on” the purchase drive of these key customers and consumers. Sadly, detailed analysis of the advertising, literature and promotional literature of new home builders, real estate agencies and property developers readily identifies glaring deficiencies, inadequacies and inappropriate texts. The target audiences appear to be unknown or misunderstood.

Motor vehicle dealers, networks and manufacturers exhibit the same insensitivities and suffer losses of potential sales as a consequence.

Retailers at large could profit appreciably by connecting with and being focused on the mind-sets, perception parameters, and purchase paradigms of female consumers. This includes hardware stores, some of which are conspicuously “macho-male” in advertising style, store presentations and sales staff employment practices.

THE NEXT STEP

The era of generalisation and broadcasting is waning, if it has not already elapsed.

Narrowcasting is an imperative, or put another way, mass customisation is in vogue.

Individualised, personalised and direct communication minimises wastage, shrinkage and leakage. Efficiency, effectiveness, productivity and velocity are optimised when investments are made into the researching, understanding and servicing of discrete sub-groupings and individualisation.

A mutual sense of understanding fosters confidence, peace-of-mind and assurance, which, individually and collectively, generate urgency, demand and optimal performance.

We should all know intimately and in detail our products, our markets and the economy. However, that is not enough. The needs exist for all entities to truly know, understand, value, to reach out, connect with and engage each and every targeted customer, consumer and client.

The journey typically starts with the unknown and unknowns, ultimately progressing to the understood... that is when you, your business, products, services and people will have arrived.

Sentiments Rule, OK

Economists are seldom right.

It is a recurring theme and reality. Put simply, economics is not an exact science.

There are too many variables for one to be definitive on any one issue or projection. Moreover, there is little scope for or recognition of the importance and nature of human perceptions and sentiments in economic equations.

For example, take the recent public statement by the Governor of the Reserve Bank of Australia, who has a doctorate in economics no less, when he pleaded with Australians to dispel their “gloom and doom” and to accept that nationally the “glass is half-full, not half-empty”.

Wrong! In reality there are two glasses. One is overflowing and the other is half-empty.

However, the physical reality of an overflowing cup is being tempered by the prevailing, pervading and apprehensive consumer sentiments. It is a classic case of the consuming public's perceptions becoming the economists' reality, if not nightmare. They just don't add up.

Long established, supposedly immutable economic principles need to be set aside. Consumers, like economists, need to be re-educated. The appropriate steps are recognised, sequential, basic and effective.

An overwhelming majority of consumers are now aware, alert, discerning and constantly exposed to multiple news sources and headlines which highlight the challenges being confronted by Greece, Spain, the Eurozone, the United States of America, as well as the Australian retail, tourism and construction sectors.

The “hard” news of the mass media, which centres on facts, statistics and other “concrete” aspects of news, holds little appeal to consumers at large. Those that do bear relevance and influence are largely negative in nature and character.

Whilst a significant percentage of people may be innumerate and financially incompetent they do tend to have an intuitive feel about things “that do not add-up”.

Therefore, consumer sentiments must necessarily be recognised, accepted and respected as a filter through which most, if not all communication is received and processed.

INEFFECTIVE ADVERTISING

Countless businesses around the world are reporting marginal responses to advertising campaigns, notwithstanding unprecedented discounts and offers.

Some have questioned the creativity of the advertising messages. Others have doubted the effectiveness of the various media channels. Both are justified, but for reasons related to the use of creativity and of the respective media, rather than to those two factors in isolation.

Few, it seems, have recognised the role and importance of consumers' sentiments.

There are 3 generally widespread realities in the marketplace. The first two explain, in part, the reasons why consumer demand and reactions are so sparse. They are:

•  Consumers are not listening

•  Consumers are not responding

Individually and collectively these two considerations define the challenge and the specifics of a brief which needs to address the need to “meet the market realities”.

Little wonder, those advertising campaigns which spruik, or better put, scream “save, save, save” or “sale, sale, sale” are ineffective.

A reorientation of focus from product, price and promotion to consumers, individuals and sentiments will generate interest, urgency and demand.

No consumer segment is immune to this spreading virus of disconnect. Most advertising is dismissed as just “noise”. A recent major study revealed that brand recall in the past 2 years has declined from 27% to 15%. Good marketing communication evokes emotional responses by projecting images or the promise of positive experience. Look no further than the communications of the brand Coca-Cola for a great example.

Case studies of consumer inertia and disinterest abound in electrical appliances, housing, real estate, financial planning and the same circumstances exist in numerous business-to-business scenarios.

A better and detailed understanding of prevailing consumer/corporate sentiments will be an effective first step in generating sales.

Repackaging the headline, the message, the offer and the very sentiment of the ‘advertising' is needed.

Significantly, for those entities which embrace these principles and address the challenges, enhanced performance standards are in the offing, regardless of overall volume of a sector or region. Redirection of existing demand is readily achievable.

FIRST THINGS FIRST

For most things in life there is a logical sequence. For marketers at present a new adage has evolved.

“Open the consumers' minds

Before you open their pockets”

This may and probably will involve the re-education, refocus, reassurance and reaffirmation. In short, the mind needs to be settled before the deal is settled.

Attention and priority needs to settle on the prospective, existing and past clients rather than the antiquated sales philosophy of the price, place and promotion.

It's All In The Mix

A magical two word business solution.

The suggestion may appear to be simplistic. However, the current malaise of the overall retail sector, as well as that being experienced by individual shopping centres, precincts and communities will to some considerable extent be addressed and redressed by a prime focus on a fundamental marketing imperative... that is, a good tenancy mix .

It should be an immutable rule for all lessors and property owners. A balanced, attractive tenancy mix which satisfies a full spectrum of consumer needs, wants and aspirations is an effective magnet which generates customer traffic. Thus, it is and must be Sine Qua Non.

Moreover, range, selection and choice hold the interest and attention of consumers who are inclined to visit more often, stay longer and increase purchase amounts. That is a sweet mix of optimising share of market and share of wallet. A compelling and profitable thought and reality. Never forget, an appropriate tenancy contributes to a great customer experience. That will result in high customer retentions.

The same principle can be extended beyond the bounds of the retail sector. Every business needs to ensure it offers a balanced, attractive product/service mix.

Qantas provides a striking case study on the consequences of a poor, limited product/services mix.

Two decades ago the airline enjoyed 42% market share of the inbound and outbound Australian International travel business. Today, that figure has shrunk to just 18%, with a continuing downward trend.

The causal factors are many and varied, not the least of which is the destination offerings. Throughout Europe Qantas has two destinations, London and Frankfurt, Germany. That pales into insignificance when companied to the 30 plus European cities serviced by Singapore, Cathay Pacific and Emirates airlines. Lesson learnt. Point made.

The same principles apply to pharmacists, veterinary surgeons, advertising consultants, engineers and real estate agents.

KEY PERFORMANCE

Therefore, achieving, sustaining and enhancing a balanced, attractive tenancy mix and product/service range is and should be a primary Key Performance Indicator (KPI). Some will contend that is a matter of “going back to the basics”. Astute business people, property owners, lessors and analysts will understandably question why there was ever a departure from the basics.

A GOLDEN RULE

Retail yields, internal rates of return and other financial measures should, ideally, be secondary criteria. Moreover, they should also be dependent on first achieving and sustaining a balanced, attractive tenancy mix.

Sacrificing a small percentage of yield in the current marketplace to ensure the maintenance of a sound tenancy mix is logical, establishes the foundations for stability and for sustainable growth and is a wise investment decision.

MAXIMISE OR OPTIMISE

The seeming conflicting between the goals of maximising rental receipts and yields against that of a balanced, attractive tenancy mix raises the perennial question, “is it best to maximise or to optimise?”

Evidence abounds in recent times of a widespread pursuit of maximising rentals (often measured in terms of dollars per square metre per annum). The criterium is applied to shopping centres and precincts with liberal abundance, reflected in the typical oversupply of jewellery stores, coffee lounges and phone retailers and casual leasing tenancies. Income is usually maximised in the short-term.

In the intermediate to longer-term such complexes and locations become boring, narrow in scope of their offerings and appeal, and progressively lose customers. Therefore, maximised rental income can be and often is a false economy and goal, with profound, negative longer-term affects. The income of the lessor or property owner and the buoyancy of trading conditions inevitably declines and under-perform over time.

SAGE ADVICE

Ross Duffield is a well established, successful Western Australian businessman, retailer and shopping centre lessor.

He owns the 21 store Perth metropolitan area Carine Glades Shopping Centre, which is anchored by an independent IGA Supermarket. The centre consistently attracts more than 42,000 customers per week. A number of the lessees enjoy annual seven figure gross profits. Understandably, the retailers are happy. They are also respected and valued by Ross and his company.

The pillars of success which are applied by Ross include:

•  A good tenancy mix is imperative. It is why customers visit the centre.

 

•  Beyond a good tenancy mix, it is important to seek out and secure the very best targeted retailers one can get.

 

•  Establish a justifiable rental structure, which is fair and equitable to all concerned. Retailers must be allowed to profit from their expertise.

 

•  Be severe, set standards and never compromise. Fantastic, that is discipline.

 

•  Ignore inappropriate retailers and retailing businesses who are prepared to pay excessive rents. Stay focussed on a balanced tenancy mix.

 

•  At all times be open to and aware of changing consumer needs and opportunities. In short, stay relevant.

PERFORMANCE REWARDS

There is much to commend the proposition for a detailed review and refinement of the procedures which determine the remuneration of executives, in particular those in retail property sector.

Maximising rental receipts by having a tenancy mix which features 11 jewellery stores, 8 gift retail outlets and 7 coffee lounges could arguably be appropriate for incurring executive income penalties, not bonuses.

In the final analysis, there is only one arbiter of the degree to which a business is “customer-focussed”. That is the customer. Very few consumers, if any at all, will applaud extreme duplication of business types in a mall, streetscape or locality. Moreover, no research has ever revealed increased customer satisfaction based on high rental income. Measuring a balanced, attractive tenancy-mix is difficult, bordering on impossible. The criteria applied by consumers are subjective, emotive and variable. A reasoned person may contend that a fair and equitable quantifiable variable is consumer traffic counts.

Now that is a refreshing perspective and one that should be put in the mix.

Managing Expectations

Every prospective and existing customer and client arrives at the premises, on the telephone or on-line with expectations. These can be and are influenced, or indeed often determined in part or in whole, by past experiences, word-of-mouth references, advertising, website designs, literature, premises presentations, image, reputations and the attitudes of staff members.

Achieving and sustaining satisfaction are functions of the consistency and continuity of the service provided. This can involve numerous people, departments and sections which contribute to the experiences encountered and, hopefully, enjoyed by the customers and clients.

Among the consistently best service providing entities are those that embrace the “horizontal organisation” philosophy. In essence, the traditional pyramid organisation structure is turned on its side, and hierarchy or seniority have no consideration with individuals accepting and embracing responsibility and authority for ensuring customer satisfaction by managing their expectations. Everyone is a nominal manager.

No gaps are tolerated in service provision, authority, responsibility or communications. Reception, sales, service, production, logistics, credit and support people recognise, accept, embrace, endorse and celebrate their respective central and integral roles as team members charged with managing customer expectations.

Care is taken to ensure that all relevant people who contribute to managing the expectations are advised in timely and appropriate ways of their roles and of the commitments given to customers.

Those expectations can and do include personal presentation, the standards applied to cleanliness, accuracy, timelines and the attitudes of team members.

It is well to remember that the first person to interact with the expectant customer is seldom the last person in the organisation to do so. The expectations remain the same.

EXPECTATIONS CHALLENGE

The overriding challenge for team members in pursuit of consistently meeting clients and customers' expectations is to engage, commit and to develop sustainable mutually rewarding relationships. Each is largely founded on attitudes.

FACE THE FACTS

Fundamental to recognising, responding to and fulfilling expectations are the unimpeachable virtues of truth, facts, realism, information sharing and empowering clients and customers with attractive and viable choices.

“Get the deal or contract on any basis” is now a redundant philosophy. It's okay to say no, or to reset unreasonable and unachievable deadlines and benchmarks for delivery, price and service standards.

Above all else it is logical, acceptable and to be applauded for one to make a profit.

Being open, transparent and honest is greatly valued by customers. It meets their expectations. Most expect nothing less.

ANALYSE THE PLAYING FIELD

Many aspects and factors can and do contribute to the fulfilment and to the failure of meeting expectations.

Each service provider, team, section or department needs to recognise that they are, at one time or another, the axis or axle in a dynamic rotating wheel of service delivery.

The spokes of that wheel are:

•  Culture

•  Structure

•  Geography

•  Sequential flow

•  Authority levels

•  Accountability

•  Responsiveness

•  Product knowledge

Individually and collectively they need to be strong, consistent and complete. Otherwise the ride can be exceedingly bumpy, costly and involve considerable maintenance and remedial costs.

COMMUNICATION LOOP

Not unsurprising is the reality that inadequacies in and among the communication channels, vehicles and communicators cause the greatest and most recurring deficiencies in meeting expectations.

We need to enhance our communication skills, better use all available channels and be forever conscious of the need to avoid presumptions when dealing with customers. A lack of comprehension on the part of either party to a communication exchange creates filters, barriers, impediments and causes confusion, annoyance, frustration, misunderstanding and results in expectations not being understood or satisfied.

COSTLY CONSEQUENCES

The consequences of not fulfilling expectations can be quantified in terms of:

•  Productivity losses

•  Income sub-optimisation

•  Client satisfaction shortfalls

•  Relationship fractures

•  Lack of loyalty

•  Absences of referrals

•  Impaired company images

Each can be and often is a heavy burden, whose presence is reflected on the bottom line... You can bank on it.

Here is a sobering reality check. In dealings with external clients and customers one error, delay or fault typically has a cascading impact on between 5 and 7 people associated with or dependent upon that single direct client. Take pause. It is not difficult or very taxing to recognise and visualise that interdependent chain of relationships.

THE NEXT STEP TO FULFILLING EXPECTATIONS

Asking questions of customers, clients and internal associate service providers is empowering, satisfying and reaffirming.

It is the initial step to ensure that everyone knows and cares about what is expected of the company, the product, the service, the team and the individual.

Four simple direct questions provide clarity.

•  Do you know what I have committed us to?

•  Do you understand what is expected of you?

•  Do you comprehend the priorities and timelines?

•  Are there any reasons we can't fulfil the expectations?

From there it is simply a matter of confirming the outcomes, following through, following up and celebrating the attainment and fulfilment of the expectations.

Well done. Well managed. Expectations fulfilled.

On The Radar Screen - Turbulance Ahead

This is your captain speaking.

Welcome aboard this around-the-world flight, visiting some of the globe's economic and political hot-spots.

Fasten your seat belts. There is turbulence ahead.

We can and will ride it out, but it will be a bit bumpy. It may be necessary to reset our course several times to negotiate the conditions which lie ahead.

Be advised, we will be changing altitudes at various times in an endeavour to find the smoothest possible passage.

Our route on this trip has us tracking north and west. We do not anticipate any tailwinds. Therefore, the engines will need to work at full power and there will be no early arrivals.

Late in the flight do keep your eyes open, because we will probably see the sun setting on a number of countries, as we have known them.

European air-traffic control has issued a warning. There is a heavy flight of capital out of Greece to Germany, creating some congestion and its own slipstream. We will remain mindful of this. However, it should not cause us any major concern or delays. The impact will be relative(s) and should be limited to certain suburbs in metropolitan Melbourne.

Our instruments are showing a drag on the left wing and we expect that to increase over France. We are monitoring the situation closely. The atmosphere in Spain and Portugal may exacerbate conditions.

The global forecast is for a series of storm fronts to gather and stay over Europe for around a decade. There will be flooding in specific localities and businesses will bear substantial costs, many will incur damage (to revenue, sales and growth) and some will be washed out to sea. Analysis at this time has identified much structural damage and the re-building program will be long, complex and costly.

In most instances, there is no insurance cover to off-set the costs and premiums will be regraded. That appears to be a prudent policy, with little risk that it will not occur.

National business, political and economic lexicons will witness additions. Already, there is widespread and conspicuous evidence that the Greeks, French, Spanish, Portuguese and Irish are experiencing difficulty comprehending, articulating and applying simple words like austerity.

We have received word that the volcanic Mt Etna in Italy is active, which is in stark contrast to the national government. The former Prime Minister has been found to be a “Little Emperor” without clothes. He has given up his political party in favour of another bunga-bunga party. Advice is that we should avoid that airspace as a precaution to possible fallout.

A large depression has been identified over Ireland. Yes, that is correct and confirmed... to-be-sure, to-be-sure.

Here is an interesting aside. European business schools, political science facilities and universities are offering new and refresher courses on profits, costs, margin risk and capital management. At this time interest and enrolments are sparse. It seems many of the potential students are otherwise engaged in reclaiming and Occupying The Streets of cities throughout the continent.

The worst of the storms across the Atlantic Ocean over the North America continent have passed and dissipated. A lot of rebuilding is needed, not the least of which is confidence. This will be no tea party.

Regrettably, no one is showing or paying any interest. We will be avoiding that area because wind-shear and down-draughts will make it hard for us to take off and achieve any uplift for some time.

Reports have been received that China is experiencing an unseasonal cold chill, which is affecting the local atmosphere. Movement and air-traffic have slowed appreciably.

There are fears of a pending avalanche which will affect Beijing. We are assured that the Central Communist Party is drafting a most positive forecast...

Our scheduled stopover in India has been cancelled. We have received advice there has been another earthquake which has shaken the country. Five more cricketers have been found to be negotiating to cheat with the bowling of no-balls, wides and donkey-drops.

Hold on. Disregard that advice. It seems the situation is normal. Oh, my goodness!

We have been able to connect with the Australian-owned and sited Jindalee Over The Horizon Radar System and can report we are tracking what appears to be a significant number of well-heeled Australian consumer refugees, who appear to be trekking overseas for relief from high prices, appallingly bad customer service and an incompetent Federal Government.

Ladies, gentleman and children, we anticipate a relatively soft-landing after a somewhat “bumpy” ride.

And so, please sit back, enjoy the spartan service (with due deference to the Greeks) and have faith. There is only one way, and that is up. And at the moment the First Officer is in full flight using the sextant trying to conclude which way that is.

Love Me Tender

There is a certain sameness about tenders. Compliance to the provisions of the tendering process promotes commodisation of tendered documents and the tendering entities. The sole point of difference is the quoted price.

Little wonder the concepts of value, originality, innovation, relationships and negotiated, mutually rewarding agreements are discounted and, often, dismissed.

Politicians may well promote, endorse and revel in “level playing fields”. Commercially, it is an ill-advised limiting strategic option in which there is only one winner... occasionally and rotationally. In the longer term no one wins and costs rise because of unallocated expenses which must be amortised on all projects and stock items.

In the prevailing straitened economic circumstances and with a price sensitive marketplace, an increasing number of business owners and managers are adopting the attitude that they and their entities cannot afford not to pursue every opportunity. Inadvertently, they do so at their own cost and detriment.

Saying “No” and turning one's back on an invitation to submit a tender takes mental strength, a strong and singular focus, complemented by the resilience of a sound corporate philosophy. It is a refreshing, appealing alternative to being one of a long list of compliant, non-differentiated tenderers.

Being the same soon develops into a market image of being... “same ol', same ol'”.

Similar templates and market consequences can be applied to those “bricks and mortar” businesses which choose to compete on price on-line with their global cyber space competitors and substitutes. Street-smart and tech-savvy consumers and clients are well connected, informed, discerning and price sensitive. They are also becoming increasingly numerate. Two-structure pricing policies (in-store and on-line) quickly disconnect the value of brands, services, businesses, physical presence and loyalty.

In the book “The Jindalee Factor” , which provided insights on Australian entrepreneurs, Professor Roger Smith and I were able to highlight the belief of several sustainably successful leaders of commerce that it is prudent not to pursue all available deals.

The profit incentive is not desirable. It is an imperative. Profits pay for premises, stock, staff and service, without which an entity “wilters on the vine” and the client is left unsatisfied and unfulfilled. “Unprofitable profitability” could only ever be considered and accounting term which measures cashflow. One cannot profitably invest cash flows in the long term.

A general slowdown in economic activity accords opportunity to review, refine and develop operations, strategies and to pursue those prospects which represent genuine, on-going value.

BRUTAL REALITY

There is no tenderness in the tendering process. It is a statistical and historical reality that only a percentage of tendered submissions and entities will be successful and profitable.

One need look no further than the appallingly poor recent track record of major engineering and construction corporations which won business with successful tenders and have recorded consistent, significant and increasing losses.

Losing such tenders has proven to those tenderers who were not granted the contracts to be winners.

NON COMPLIANCE

Whether the objective is to win custom on-line or in a tender, non-compliance is an appealing attribute because it provides scope for difference, enhancement and betterment

AT WORST

At the very least, entities that are requesting tenders should be made to pay for such. Decisions to participate in tendering processes should, and often can be complemented with a creative drive to find a better, faster and cheaper way than that stipulated in the tender document.

Remember, rules are for guidance, not obedience.

One should never apologise for being original, innovative, creative and profitable. Each is an attribute and building block for growth, sustainable competitive advantage and the delivery of value through quality products, services and experiences, and relationships.

Ill-Will Blows On Goodwill

Another GFC casualty.

Goodwill and its innate, tangible, attractive and now in many instances, past value for business owners, investors and prospective purchasers has been dealt a foul blow by the consequences of the Global Financial Crisis (GFC).

Like, and because of, rampant reductions in prices, goodwill has been extensively discounted. Its fate runs parallel to that of customer and client loyalty... heavily qualified or being a quant recall from the past.

The concept of goodwill is founded on the belief, expectation and established record of sales, margins and profits that future income, dividends and competitive advantage are “bankable”. Repeat and referral sales have traditionally been the cornerstones for payment of goodwill, along with the anticipation of stability, growth and sustainability.

Some models and templates which determine the actual worth of the goodwill, which is inherent in individual businesses and sectors, provide for multiples of past and current annual gross or net profits. Many of those calculation structures are being refined or, indeed, discarded. The future vision, it seems, is clouded by volatility, change, shifting consumer sentiments and significant structural changes in commerce.

It is just another consequence of the “now” society in which we all operate. The concept of loyalty has necessarily been revised, like that of personal relationships. It is a circumstance that futurist Alvin Toffler wrote about in the 1970 book, Future Shock . Transience is the very essence of modern society.

Life partners are inclined to vow monogamy-with a qualification. That is, adherence to “serial monogamy”, in which I will be “faithful” to you when I am with you, but I won't be for long.

For businesses, that makes the currency, appeal and viability of “loss leaders” somewhat redundant. In short, each encounter should be a profitable experience. Delayed financial returns from hoped-for long-term relationships may simply and unreasonably inflate profit projections and goodwill valuations.

The short-term horizons applied for the calculations of goodwill related to medical, legal and accountancy practices are understandable. Information Technology (IT) consultants often express frustration about the lack of value that is typically applied to their practices. Perhaps it's just another VIRUS!

GOODWILL ATTRIBUTES

Entities which enjoy substantial, consistent and increasing goodwill worth tend to exhibit a common set of attributes. They typically centre on:

•  Committed allocations of resources for product/service development, innovation and creation.

•  Stable pricing policies, based on offering value, rather than on discounting advantage and the conduct of regular sales.

•  Dedicated allocations of upgrading premises, systems and distribution networks. Currency in those attributes generates bankable currency flows.

•  Considered, disciplined and scheduled professional training of all staff members and appropriate stakeholders.

•  On-going investments in upgrading communications networks, because effective, efficient and timely two-way communication is the lifeline for all entities.

•  Adherence to the process of structured planning with respect for the need to implement, monitor, quantify and refine time-oriented goals and benchmarks.

•  A culture which promotes, supports, recognises, celebrates and rewards change, having fun and a pervading belief in a positive team spirit.

Sadly, there is a noticeably short list of recognisable international iconic businesses that project all of those attributes and the related profitable benefits of goodwill. Apple, Facebook and BMW are examples.

Within Australia, Liquor Barons, Liquor Legends and The Coffee Club come to mind. Encouragingly, there is an increasing pool of businesses which are striving to justify their goal to be numbered among the local entities which warrant payment for, and the benefits of goodwill.

For those in the retail sector, I refer to the acronym so often used by Jeff Rogut, the Executive Officer of the Australasian Association of Convenience Stores, being:

R.E.T.A.I.L – Retail Excellence Takes Attitude, Innovation, Leadership.

Focus on those three pillars and avoid the distractions of siren calls for discounting, outsourcing to overseas call centres and constant reductions in staff members, inventory and systems.

Sentiments Are Not Sentimental

Fickle consumers.

How can retailers possibly cope?

Actually, it is the sentiments of consumers rather than the consumers themselves that are fickle, and thus hard to analyse and forecast.

Much consumer sentiment is the product of newspaper, television, radio and magazines headlines, stories and innate editorial biases. Accordingly, they can and do, in many instances, change daily.

This is a reality strikingly evident in the discourse between, opinions and expressed buying intentions of participants in focus groups.

One is left to conclude that consumer sentiments, to a large extent, are an “effect” rather than a “causal” factor, which must be considered in the planning of the marketing, advertising, promotions, product lines, inventory and financial forecasting of many retail businesses.

Over-riding consumer sentiment can be materially and significantly affected by the public statements of politicians, bankers and other spheres of influence.

Declarations by high profile retail industry spokespersons about price deflation, sales leakages to internet on-line retail websites and entities, rampant price discounting and a general sense of lack of consumer loyalty can influence prevailing sentiments. More disturbing, it can awaken, educate and influence consumers to consider and try competitors, substitutes and alternatives as means to satisfy their needs, wants and desires.

Compounding the issue is the lack of uniformity in such expressions, driven largely by short-term, often conflicting, self-interest.

Some industry leaders even get very sentimental about the whole issue, to their and businesses' detriments.

ECONOMIC SHORT-COMINGS

Expectations of economists typically exceed the disciplines and the practitioners' capacities, training and abilities. To expect economists to accurately forecast within .1% interest rates 12 – 24 months hence, is unreasonable and, above all else, their attempts to do so, unbelievable. So too are such forecasts.

Many economists determine their projections on established or unique modelling. Retail association spokespersons use or refer to similar templates and concepts.

Many business leaders share a general consensus that economic forecasts are inevitably wrong. The major point of disagreement is just how wrong the economists are in their forecasts.

Interestingly, a common deficiency of economic modelling is the absence of consideration of and tolerance for the role and influence of consumer sentiment.

It is estimated that the sentiment of consumers is a variable that can influence demand, and thus sales, profits and dividends, by up to 25% of standard economic forecast modelling.

Hence, it seems that consumer sentiment is something that business people, retailers in particular, cannot do with or without.

FILTERED SENTIMENT

Consumer sentiment is a cruel, fickle master. It is also a rewarding but not compliant servant.

Sentiment is a filter through which consumer perceptions are developed, established and, over the short-term, sustained.

It can and does impede and block out communication. Moreover, it is often a pre-emptive factor which determines whether purchase, investment or consumption will be contemplated. That is a powerful variable which will directly and, most importantly, indirectly impact on spending patterns. Care must be taken about the capacity for mass consumer sentiments to change and to do so rapidly.

One need not look beyond the fortunes of retail brands in the “beach culture” sector of retailing to register a salutary lesson.

BE DISCIPLINED

Consumer sentiments, and their importance to all businesses underscore the importance of a principle enunciated in my co-authored book on Australian entrepreneurs which was titled, The Jindalee Factor. That was

“Plan long. Manage short”

Don't attempt to plan in anticipation of sentiments or manage oneself around them. Consider, respect and allow for them, with appreciable tolerance for variability.

THE YEAR AHEAD

If one is not able to accurately and consistently forecast mass media headlines 7, 14 or 30 days ahead, then no attempt should be made to project consumer sentiments or to believe that concise sales and profit totals can be documented and “banked” in advance, based on those premises.

Likewise, economists' statistics about the future should be studied carefully and then, in most instances, be summarily dismissed. Economics is the discipline of the allocation of scarce resources, not of declaring within .1%, the official interest rates and the All Ordinaries Index, twelve months hence.

Accept the fact that the headwinds which has been spoken and written about so freely since the onset of the Global Financial Crisis (GFC) in August 2008 will persist during 2012. They will be fluky, inconsistent in direction and in intensity and they will be compounded by the changing tides of consumer sentiments.

In short, astutely set course for the finish-line, but be flexible, malleable and responsive. Recognise the nature, role, importance of and influence of consumer sentiments. Don't attempt to control such emotions. Rather, reach out, connect, and interact with consumers and at all times endeavour to guide (but not unjustifiably talk-up) their sentiments.

If one possesses a high tolerance of risk and has a “business auto-pilot”, then at least push the reset button!

Value Pricing

Value is an intriguing, complex, subjective, and often misunderstood concept which is the product or consequence of a convergence of quality, design, price, predictability, and, often, originality and individualism. Sadly, to many, value has been reduced to a single dimensional scale. That is, price, and with it the whole precept has been debased.

Above all else, value is determined, accepted and appreciated by individuals, consumers at large and the marketplace. It is they, individually and collectively, who assign the relative ratings and weightings of a disparate set of attributes and characteristics to determine the “true measure of value”.

Advertising texts that scream “Great Value”, typically because of cheap and discounted products, miss the point. The primary thing discounted in such instances is the inherent value of a brand name.

IT'S LORE, NOT LAW

It is bemusing to many that lawyers and the legal fraternity are dismayed that they and their skill-sets are not valued.

The self-determined and self-measured sense of worth, common among those students of the letters of law are greatly influenced by a profession-wide culture. First-year undergraduates are exposed to a belief system, highlighted and reinforced by lecturers and tutors, that is quantified in six-minute modules. Career path aspirations, income expectations and assessments of one's worth to “the firm” are all extensions of the six-minute fee charging mind-set.

Conversely, consumers and clients have profound interest in “concrete” outcomes in their dealings with lawyers and the law. They want accurate assessments of legal decisions (from and within courts and tribunals), set predetermined costs and defined projections of time schedules.

Rationalisations, equivocations and references about the vagaries of legal processes simply serve to compound the annoyances, frustrations and sense of a lack of value felt and expressed by so many corporate and individual clients.

Considerable competitive advantage and growth potential lie unfulfilled in the legal landscape for practices (and legal practitioners) that are prepared to take the risk (as so often undertaken by other professionals, including management consultants, engineers, accountants and bankers) to be “concrete” in their costing estimates and evaluations of probable outcomes. If only they would...DARE TO BE DIFFERENT.

WORTH PAYING FOR

True value is worth paying for. Consumers revel in a sense of satisfaction in knowing or concluding that he or she has a balanced sense of value.

During the course of 2011 I was approached by a Melbourne-based professional event management group which was to conduct and promote a public conference.

The projections and related statistics were impressive... A total audience exceeding 300 senior corporate executives from targeted and defined business sectors, each of whom would pay in excess of $4,500 to register and attend an intense three-day program of diverse speakers. Specific dates and venues were nominated.

  “Would you be interested in having the opportunity to address that audience

  profile?” I was asked.

Expressing the affirmative response seemed unnecessary and meaningless. I ventured forth with the statement:

“Yes, subject to the brief, the set objectives and conditions of my appointment. In short, what will be the fee and expenses?”

I'm still not sure, but I think the response was awe-inspiring, or alternatively, breathtakingly audacious:

  “ YOU will be expected to pay $4,500 to address the group for 45 minutes.

  All travel, accommodation and meal expenses will be your responsibility.

  However, we will offer a discounted registration fee so that you can hear

  the other speakers.”

I offered some well-intentioned gratuitous advice, with the rider that being gratuitous and not involving any fee the advice did not represent value. My contention was that if I was not worth paying, then she should find others who were, to pay them and to appreciate the value.

Value reigns supreme. Subsequent advice received at our offices was reassuring. The proposed public event did not proceed and the event company promoter lost a considerable sum of money. The marketplace had expressed its own value judgement.

TAKE OUT VALUE

“Long after the price is forgotten, the value will be appreciated.”

It is a long established, tried and true axiom of business.

Successful and professional marketers repeatedly espouse the need to de-emphasise the features of a product and service in favour of emphasising the advantages and benefits which are determined, appreciated and valued by customers and clients.

There is little point in knowing one's product if there is a lack of knowledge and understanding of the perceptions, attitudes, expectations, needs and value determinants of customers and clients.

PRESCRIPTION FOR SUCCESS

Increasingly, retail pharmacists are assigning priorities to offering, promoting and capitalising on services which complement and enhance the income generated by the dispensing of traditional medicinals. Significantly, greater than 50% of adult consumers currently seek out and take complementary medicines.

It is they who determine if each and both sets represent value. Professional vanity can be and is an expensive attitude of some medical professionals. However, there should be no reticence about the concept of fee for service.

Trained and experienced market researchers, do have much to offer in addressing this issue. Now is a good time for all pricing structures to be reviewed and refined. New pricing models should be tested before implementation.

It is important for one to remain objective and dispassionate in studying consumer preferences, buying criteria and buying habits. The data which is retrieved and collated must be analysed without any value-judgements by the researchers. That is a measure of the worth and value of the research to the client.

The logical progression of the process extends to the interactions between companies, their representatives and consumers.

Business people need not agree with their customers, but they do need to understand... that's value and valuable.

On Side With On-Line

On-line communications and statistics should be, and are, the friends of those in business. However, one needs to look behind the statistics for understanding, value and worth.

For many, the staple diet of statistics in the mass media about the growing presence and influence of on-line channels of communication and supply is both intimidating and overwhelming. Equally, those data can be misleading or incomplete, not revealing the full story.

Take for example the fact that up to 67% of people now go on-line when intending to buy or are buying a wide range of products and services. Seldom reported is the fact that the fastest growing sector of on-line contact for purchases is mobile – that is, via mobile phone and tablets. (Perhaps we need to heed the advice of former Australian Prime Minister Kevin Rudd to take a Bex tablet and have a lie down).

The latter factors represent opportunity for bricks and mortar retailers. They establish and reinforce the reality that many consumers are going on-line when actually out in the marketplace, in retail precincts, shopping centres and in stores. Understandably, they are cross-referencing the comparative values and prices available in-store and on-line.

Effective, courteous and professional customer service, complemented by the appeal of convenience and immediacy – an imperative for “now” consumers – are compelling reasons for consumers to conclude the sales in store immediately. Such advantages need to be promoted and exploited. Indeed, astute service providers involve themselves in the practice of consumers going on-line by providing comments, background information and making informed value statements. It is imperative, and is impressive to many intending buyers.

At present some 37% of the 24 million mobile phones that operate in Australia are smart phones. It is estimated that this figure will increase to over 50% by June, 2012. Hello!

The very best of businesses are also utilising on-line channels to personalise messages to discrete target audiences and individuals. It is now the most effective and efficient means to reach out, connect with and engage consumers.

2010 was a benchmark year in marketing and commerce. For the first time ever in Australia, investments in below-the-line advertising (emails, text, telephone, direct mail etc) exceeded those of above-the-line advertising, which include the mass media of television, radio, print and outdoor signage. Again, the market leaders of the latter group are embracing and utilising on-line to complement and enhance their value packaging. Television New Zealand is at the forefront of the movement.

A NEW SHOP FRONT

It seems ironic that many shopping leases which are signed and, albeit often reluctantly, accepted by business owners, stipulate that at the expiration of each three or five year term lessees are legally obliged to outlay from $30,000 to $1 million for store, layout and fitting upgrades.

This stands in stark contrast to the standards and outdated presentations of many websites and online presentations (our own included). The internet has become the new shopfront. First impressions are influential in image building, revenue generating and relationship development. Tokenism is not sufficient.

For the 47% of Australia's 2.3 million operating businesses which do not have a website, a simple message: Get one, and fast.

However, be selective in your choice of consultants. I for one find it hard to accept the periodic faxes received at our premises with the offer headline:

“Websites For Dummies”

Classification as a dummy does little for one's self-image and ego. Furthermore, dummies are inclined to accept anything that is offered. Neither is a sound foundation for positive, mutually rewarding and sustainable relationships.

DON'T OVERDO IT!

Many on-line communicators lose appeal, relevance and business by testing the tolerance of their targeted prospective, existing and past clients.

Daily transmissions are seldom responded to daily. That surely is making a definitive statement. Weekly transmissions too can be testing. Therefore, to be effective in marketing, one will need to ignore the advice of health professionals. That is, be irregular. Communicate when you need to and when you have a compelling offer, often with a time limitation. Such missives will have impact, will resonate with recipients and will generate additional revenue.

BE GRAPHIC

Extensive attitudinal research has consistently concluded that graphics in email transmissions are often deemed to be irritating distractions or some simply overwhelm the message. Often it is the graphic that is recalled rather than the essence of the message/offer, the product the service or the company itself.

Moreover, graphics consume a lot of computer capacity and time.

Therefore, good graphics are like good fashion - understated. They can and should make a definitive statement.

COMPETITIVE ADVANTAGE

Astute, contemporary marketers possess, exhibit and share comprehensive and compelling detailed product knowledge. The most prolific visitors to websites and recipients of texts, emails and direct mail from the major and significant operators in a sector, are the astute business people (competitors) themselves.

They subscribe to the philosophy:

          “KNOW THY ENEMY”

Effective, current intelligence is the essential prerequisite for sound cash-flow generating strategies.

YOU STILL NEED TO SELL

The highest ratios of sales conversion remain with the personal contact between the customer and a service provider. Statistics don't lie, always. Where possible, appropriate and economically viable, encourage consumers to talk to an individual service provider. A convergence between the emotional and the human quotients does wonders for the bottom line.

RING THE BELL

The essential message brings to mind a recent past Australian Federal Government funded advertising campaign about national security. Steve Leibman, the veteran television personality implored people to:

“Be aware, not alarmed”

That is sage advice, particularly about on-line.

It's Raining Training

A great train of thinking.

To train or not to train. That is not a question. It is a dividing line, between those who will strive and thrive, and those who will wilt and fade away.

There is growing evidence that investing in training is one effective avenue to develop business and to counter depressing levels of sales and revenue leakage.

There have been many lessons learnt since the onset of the GFC (Global Financial Crisis) in August 2008. Among those are:

•  Price discounting is ineffective in achieving sustainable sales increases.

•  Sales events have themselves been discounted in value and integrity.

•  Bargain pricing has inflicted irreparable damage to many brand names.

•  Reduced inventory and staff numbers have made conspicuous impacts on customer service standards.

•  Customer loyalty cannot and will not be “bought” by loyalty card points.

•  On-going multi-channel communications between businesses and customers are imperatives, not options. (Hello! on-line and social media.)

•  The rate of change and innovations is increasing.

•  “New” and “local” have become the black in marketing.

•  The cornerstone for establishing, maintaining and developing relationships with existing, prospective and (yes) past customers is PERSONAL.

It is these points and more that constitute the parameters and framework within which truly effective training must be formulated, documented, implemented and supported.

CALL TO ACTION

The findings of a recent comprehensive study of some 2000 chief executives of companies and departments throughout North America, Europe and Australia by an international finance group were stark and compelling.

Some 62% of respondents nominated internal and external customer service as the primary need for training and enhancement. A total of 43% contended “corporate culture” was an area of concern and in need of improvement.

Both those factors rated higher in the priority listing than the wish and need to improve “productivity”.

On balance, upgraded customer service standards and an enhanced corporate culture will and do inevitably lead to greater cohesion, pride, self motivation and productivity.

Clearly, it is important to look closely at and respect the importance and value of the “bottom line” in preference to a single focus on the top line.

Most sobering were the conclusions of those chief executives who participated in the study. Some 71% stated it was difficult if not impossible to quantify any increases in customer satisfaction, sales, profits and productivity as a direct result of recent training activities. Some 18% believed there had been “marginal” or short-term improvements in performance standards.

Just 9% of respondents concluded that training in customer service and corporate culture effected and sustained significant enhancements. (Note: 2% did not respond). The lesson here is that the “right” training, to the “right” people by the “right” trainer, for the “right” reasons and the “right” desired outcomes is essential.

LESSONS LEARNT

Business leaders who have decided upon and are committed to undertaking training to address the prevailing market-forces and to achieve a sustainable competitive advantage are to be applauded.

However, the findings of the study among their 2000 corporate peers are worthy of reflection.

Training in and of itself is not the answer. The keys to effective people and skills development are numerous, complex and integrated.

At a recent public event in Australia an executive from a public listed training company proudly declared his accredited and registered training group was most effective in securing government funding for the training of client company staff-members.

Subsequent detailed and specific probing about the skills of the trainers and their comprehension of the diverse aspects of service excellence and positive corporate culture revealed a disturbing and significant inadequacy in skills and knowledge.

This was another case of waste in terms of money, time and resources – soothed somewhat by the realisation that it would be government funded. As if Australia needs more government waste!

Another case study is equally enlightening. An international hotel group sought training in customer service for its high turnover, typically casual and part-time hospitality service providers.

It transpired that the female executive who initiated the approach was not qualified or experienced in Human Resources Management or training. She appeared to have little or no authority and would need to refer all matters requiring decisions to an unnamed senior executive.

The two hotel brands had no formal job specifications (which detail the human attributes necessary to fulfil differing employment duties and functions), no formalised induction procedures, little structured or scheduled and customised training programs for individuals, groups or departments, and no infrastructure to support, reinforce and complement any training undertaken.

The professional trainer who had extensive skills and experience in consulting to businesses and conducting interactive workshops on corporate culture and quality customer service was then advised he would not be paid a set professional fee. Remuneration would be a percentage of the increase in sales revenue from those hotel departments whose staff-members would be involved in the integrated and structured training schedule.

The negotiations ceased immediately.

In the first instance, the value of the professional consultant was not recognised or quantified. Secondly, how could a trainer have faith in the ability of a hotel group which was so evidently deficient? This was not training in customer service or corporate culture. Rather, it was un-abased drive to improve the sales closure skills of staff-members.

Moreover, the activities were ill-focused.

The most immediate training needs lie within the ranks of senior executives.

ESSENTIAL STEPS 

Corporate executives and professional external and internal training experts who seek, expect and, indeed, demand successful outcomes in their training activities, especially relating to customer service excellence, need to progressively address the following issues:

   CORPORATE CULTURE

Ensure that the overriding corporate culture (both formal and informal) is understood by all people, is documented, verbalised, respected and adhered to. In essence, the corporate culture is an expression of the personality of an entity. A fun learning experience is to have team-members express the culture, of which they are part, in terms of humanoid characteristics.

 

It is and can be a revealing exercise.

 

RECRUITMENT PROCESSES

Each company should review and refine carefully JOB DESCRIPTIONS (detailing the duties to be undertaken, the authorities to be exercised and the responsibilities which are assigned to each position).

Job descriptions should be cross-referenced to each JOB SPECIFICATION (the human attributes necessary for the performance of each position to be fulfilled).

Care must be taken in the differing phases of recruitment to recognise that fewer than 24% of adult Australians have an appropriate psychological profile to be an effective, efficient and engaging service provider.

NOTE: Promotion of the above listed factors is an excellent means to generate interest in employment by the best available recruitment prospects, who are typically keen to be involved with the best prospective employer.

INDUCTION PROCEDURE

A comprehensive, disciplined induction procedure develops an appreciation of the values and nature of an entity.

 

The first step to achieving higher planes of customer service standards is for team-members to think and state: “I understand”.

 

Full understanding of the interdependence of positions, departments and duties contributes to optimal outcomes of customer satisfaction and productivity.

 

TRAINING NEEDS ANALYSIS

It is imperative that each training experience be customised, that the training objectives be defined and shared, as well as the commitment of each participant be secured from the outset.

 

“Singing from the same hymn book” has a certain harmony about it.

 

Understanding WHY the specific training is being undertaken is an imperative prerequisite if the WHAT and the HOW are to be embraced and subsequently implemented.

 

INTERACTIVE SESSIONS

Rightly or wrongly, to greater and lesser extents, each individual believes that he or she has much to contribute to the training exercise.

 

Everyone should be given the scope and opportunity to provide input, analysis and to give connection to the jointly determined outputs.

 

DEFINED OUTCOMES

The initial euphoria, motivations and aspirations which flow from training programs are usually extinguished within 72 hours, three weeks or six weeks, unless benchmarks are set, monitoring processes are installed, on-going feedback is provided and regular refinements are encouraged.

 

External trainers, catalysts and change facilitators need to be complemented with internal project leaders, or “Concept Champions”, if you will.

 

The best results are achieved and maintained when someone is assigned the authority and delegated the responsibility to ensure focus, cohesion and commitment are retained.

 

THE EASY PART

Now for the relatively easy part...that of conducting the training. The sentiment correctly reflects the importance of planning, research, preparation and selection.

 

One final checklist

 

•  Right training

•  Right people

•  Right trainer

•  Right reasons

•  Right outcomes