VPs of Marketing and Sales should “have a pint”

People who work to generate revenue for companies understand the long-standing friction between marketing and sales departments. Often the relationship is at best cordial, at worst outright subversive. But the growing consensus, at least among top management, is that the two should be inextricably linked to the same accountability, metrics, and goals. 

A few years back I ran a US company that we moved to Dublin, Ireland lock, stock and barrel. We were a brazen Internet start-up with the requisite start-uppity employees; young, smart and passionate. Work was everything to us and, as Americans do, we personalized and internalized our work life.

Our approach to work puzzled our new Irish employees. They did not understand the heated debates and arguments among our American group. I remember hearing ”Why don’t they just go to the pub and have a pint?”

“Having a pint” as communications platform has stuck with me as a great solution to aligning goals and teams. Regular  off-campus one-on-ones do wonders for relationships and results.

Grab a pint and get over it, as they would tell us in Dublin. Perhaps you’ll forge closer relationships with those whose fortunes are so closely linked to your own.

Make lemonade while the world chomps on lemons

Those of us on the front lines of business development have undoubtedly noticed the growing abundance of webinars, blogs, and articles from various pundits on how to develop accounts in a slump.

Even industries and individual businesses that are still doing well are shell-shocked by the avalanche of bad economic news and consequently are taking a “wait and see” attitude.

Unfortunately our employers and our families can’t afford to just wait and see. They need us to close business. Now.

The last few downturns have averaged 1.5 years in duration. This one may last even longer, and not everyone agrees on when this one even started. Uniquely, the lack of credit availability is truly frightening to sales and business development folks because of the potential impact on customers’ ability to finance their purchases.

Yes, reality bites… and also presents opportunities.  The basic truth is business must get done and your customer still needs you. In fact, as headcount gets slashed within your customers’ organizations, those who survive are taking on the responsibilities of those who are let go and consequently have even more on their to-do list, with even less in time and resources.

This means opportunities for salespeople who can truly help customers face their own challenges and weather the storm.

*Excerpted from the SBDP Newsletter article  “Staying Relevant in the Downturn.”

Should your next sales hire be a “Tweener”?

Continuing the hot topic of Sales 2.0, I had a wonderful conversation today with Sales 2.0 author and expert Anneke Seley, CEO of Bay-area sales consultancy PhoneWorks. Anneke is well-versed in the shift in technique and approach that is disrupting the business development profession.

Checking Anneke’s blog uncovers a interesting interview with a sales vice president Bill Lohr who describes the new “hybrid” sales role he employs at his software services company he calls a “Tweener”: 50% inside and 50% field.

So, the logic goes, opportunities under $500k are managed with clients via phone and Webex, and more complex deals are handled in person — with the same account exec.

Seems to make sense, and it works well for Mr. Lohr. But what would widespread adoption of this new model mean for the profession?

For one, it requires a new sales personality profile. I can’t see many of the attention-deficient outside sales guys I know sitting behind a desk half the time, and I have trouble envisioning an inside rep with all the skills necessary to close larger deals. These are, in general, two different people.

However if technology and customer demands are indeed colliding, business development professionals must adapt. Like they always have. They could even gain real benefits. Half the travel? A great start. A little deal variety? That’s a plus. 

The economy’s troubles are forcing companies to find new ways of buying and selling. The most important thing for sales professionals to do today is to remain relevant to their customers and employers in an increasingly networked and information-rich marketplace.

For guidance in Selling 2.0, look back a century or two

Selling 2.0, the application of social networks to the sales process, is the hot topic of the day. Marketers and selling professionals worldwide are scratching their heads to determine how to approach this new customer psychology. What many don’t realize is that the underlying framework of social networks is based on old school values, such as authenticity, trust, and personal relationships.

In the 1800’s, sales were made based on groups of customers sharing information. Guilds, clubs and informal networks were the driver behind purchasing behaviors. Few sales were “made” by a dedicated salesperson, who didn’t have much influence in industry until the next century. Certainly the modern interpretation of ‘brand’ had very little to do with it. And most of last century’s marketing channels such as broadcast did not exist then.

What did exist was authentic trust relationships and customer referrals. Bankers attended the same church as their customers, tool makers marketed to farming groups and were person to person, and people relied on others to suggest and recommend the products they bought.

Selling 2.0 is all about these things – but with the added impact, speed and network effect of online technology.

What’s old is new again.

Austin start-ups: highly efficient or just cheap?

I have lived and worked in this community for 17 years, through recessions and the most incredible boom times. One thing remains constant – we in Austin tend to “cheap-out”  when seeking the best advice and talent.

Austin’s start-up community is blessed with amazing resources. I love it here: I can ideate a technology product, assemble a team, and launch a product without having to glance beyond Austin’s city limits. Try that in St. Louis or Des Moines. Our entrepreneurial Bootstrap ethos and innovative conferences like RISE demonstrate the power of our community to build new businesses and future employers.

Anyone who lives on billable hours in Austin will likely agree, however, that it’s hard to make a buck in this town.  I spoke with a marketing consultant recently who explained he doesn’t notice the recession because he’s always struggled with finding good work in Austin, even in boom times, and that “people just don’t want to pay for good help here.”

To be sure, I am conflicted. As an avowed bootstrapper I have benefited from our low-cost support structure. I have also felt the pain of many a goose chase from well-intentioned but relatively unsophisticated Austin companies. 

I would posit that our garage culture extends too far into company maturity and our tendency to seek out “free-miums” with consultants and advisers hurts the success rate of Austin companies. Why?

I have a few theories…

1. Austin still trades on the tech boom myth that a cut-rate deal leads to windfall compensation at some future point. How many of you reading this (yes, me too) still hold millions in start-up paper? 
2. The influence of famously stingy organizations on our business culture. Those of us who’ve lived on the receiving end of Dell contracts understand this. 
3. The ratio of service providers to actual work is high. Many of us who love and choose to live in Austin trade a lucrative business environment for the privilege of living here. I recently heard one expert joke that in Austin you make money in  the “travel business” as in “traveling” to “business.”
4. Many Austin executives tend to be overly-impressed with folks from big-name companies, colleges and markets. Sure we have great engineers and designers, but when it comes to hiring the best business experts we tend to look elsewhere. Truly a shame.
5. When we have a critical problem, we do not eagerly seek out new expertise or service provides. We are still very much a do-it-yourself town.

I’m no big spender, but could this skimping reflect a lack of business savvy? Do we believe that tech companies in Silicon Valley and Alley scrimp and save when it comes to hiring the brightest bankers, lawyers, executives and advisers? Maybe now they must, but in my experience they have been too busy making money, launching products and grabbing market share to worry about negotiating hourly fees down another five bucks.

Since opportunity cost is difficult to measure we never know what we miss, and on we go, swimming in our pond, struggling against national competitors with stables of well-cared for experts, advisers and partners. 

My challenge for service providers: Don’t audition for work by doing free work, unless you are truly investing in a company and can afford the time. Estimate your marketable value  and stick with it.  If you don’t value your time, no one else will. Take pride in your expertise.

And for Austin companies still who never seem to make it to the next level? Pay experts what they’re worth. Leverage the best experts and focus on winning. And do it local – no need to look past the Great Hills Starbucks or 360Uno’s for the right person or firm. They will likely respond with more value than you ever  dreamed.

Let’s move the Austin technology community to our rightful place as influencers and innovators.

The Disruptive Online Loss Leader

A slow business environment tends to highlight novel and effective marketing. Among interesting techniques retail outfits are adopting is the co-optation of low-cost, high-margin internet business models as “loss leaders” to get people in the stores and spending money.

Case in point: My wife spent about an hour on Shutterfly, one of the highest-traffic photos sites, attempting to get photo cards printed on the cheap. After a few technical glitches she gave up, and then remembered a friend describing a good experience on Costco’s site.

Costco? for online photos? Turns out the Costco experience was quicker, easier and about 50% cheaper. Being the marketing wonk I am, I thought about what Costco did that Shutterfly couldn’t.

Here’s the breakdown:

1. Wife has superior experience getting the card done and sends them to the store to print.
2. Wife goes to Costco to collect her prints, takes a detour through the store.
3. Costco adds logo on backs of the cards, which are then mailed to family and friends.
4. Husband wonders how $21 photos became $250 in bulk groceries.
5. Costco wins a big purchase, free viral advertising and a happy customer in worst economic recession in decades.

Now try this with other businesses that are supposedly exclusive to innovative online companies. Netflix? Try a video kiosk at McDonald’s for a buck, and grab a burger while you’re there.

Give the Gift of Truly Caring About Your Customers

Over the past few weeks I have been seeking something to give my best clients as a token of my appreciation. The holidays come once a year and are a great opportunity to give to, rather than ask from, our paying customers.

Having decided against cookie bouquets or those squeezie toys that look like computers, I thought about what I could do or say personally that would actually mean something to my clients. I tried to think of gestures or remarks that demonstrate to my customer “I truly care about you and your business.”

I finally settled on exactly that. I called each of my important contacts and left a sincere, personal voice message telling them I really care and thanking them for their business and their friendship over the months/years.

Surprising to me was my clients’ response in a busy holiday season: Many actually called me back and expressed to me things I hadn’t heard before from them, things like their appreciation for helping them in their business, my personal service and other kind remarks. A nice gift for me!

For customer-facing professionals, there’s no better feeling than delivering a solution that really improves the well-being of a customer and being paid a decent wage for it. When you truly believe that your products and services can help people better themselves, their co-workers and employers, you end up doing better yourself. Similar in concept to my recent post on “Business Karma”, really caring for your customers pays dividends beyond the financial. It actually helps you prospect better and enjoy your job.

So don’t forget to show you care through word and deed. You may be re-inspired by reciprocal affirmations which may turn out to be your best executive gifts of the season.

BusinessDevelopments featured in Hall Martin’s blog

Yours truly was featured in an interview today on “Angel Investing in Austin”, a blog by the Director of the Central Texas Angel Network, Hall Martin.

Hall’s blog is a great update on what’s going on in Austin’s tech startup community. If you have interest in funding, start-ups and high tech I recommend subscribing…

Getting to VITO in the downturn

In the good times it was quite difficult to reach VITO (Very Important Top Officer). Seemed he, or she, was always so very busy.

So what’s his excuse now?

Unfortunately VITO’s even busier now. He’s lost the people he used to delegate to. Downsizing has given him two or three more jobs to do, with less budget and more time pressure than ever. So why should he talk with you?

This is our challenge: how do we make ourselves and our offerings relevant in this environment?

First, review your value proposition. What you are offering should be directly impactful in the short term to VITO’s bottom line. Really cool technology with a two year return scenario just won’t get anyone’s attention when they’re worried about making their quarterlies. The only kind of messages that are heard are ones that will lift revenue or reduce cost in the near term.

Next, research research research. Calls and meetings with decision makers must be well-researched and show you have paid the price of admission. Focus on quality and demonstrate you have done your homework.

Touch early and often. You need 8-10 touches, calls email, webinars, etc. to raise your visibility and become a viable resource. Don’t nag, but stay in front. Look for events and announcements that give you an inroad to problem solving.

Be more productive. Sales cycles are extending and budgets are being cut. Use social networking and online technologies that are quite good at cutting pursuit time. Broaden your focus to include more prospects.

Become your customer’s conscience. He is overwhelmed and needs to get things done. Show him he can rely on you to come through, efficiently, with targeted solutions for his problems.

Let VITO know you’ve got his back.

Microsoft playing Santa for Startups

Nothing like a giving away stuff to make friends fast. Works for Santa, and even Oprah, right?

My firm was just selected to join the Microsoft BizSpark program as a “Network Partner”. This means if you run a startup with under 1M in revenues and less than 3yrs in business, we give you bunch of free stuff to support the technology side of your venture.

I believe this to be a great deal and expect there will be many sign-ups based on the value of the licenses alone. The program provides free access to:

• Software. Access to current, full-featured development tools, including Visual Studio Team System, plus production licensing to develop and bring your solution to market.
• Support. Professional technical support from Microsoft and a global community of business experts.
• Visibility. Opportunity to achieve global visibility to an audience of potential investors, clients and partners.

Most technology entrepreneurs know that, when done right, an association with Microsoft can present real client and partner opportunities. The BizSpark is no different and allows smaller companies to gain visibility to potential clients, investors, and partners.

To enter the program, all you need to do is join online and when you do you get near-instant access to the software, and your only obligation is to pay Microsoft a small fee (USD$100) due at the end of the three years (or end of participation in the program)

You’ll need sponsorship from a Network Partner (that would be me). Feel free to contact me with questions.

So, you may ask, what’s in it for Microsoft?They have decided that their future is tied to supporting the next generation of successful companies and by introducing them to their technology stack early in their development. FYI I receive no compensation, just a chance to meet cool new companies and learn what they’re doing.