Revenue Journal®

There comes a time in the course of inevitable economic ups and downs, when "everyone" starts to feel like "things are going to hell in a hand basket." The media is filled with stories of business and industry failures, people start hoarding and cutting back on their expenses, sales that used to be easy become difficult, and company budgets are cut.

There is a sense of impending doom, and financial statistics are reported that reinforce that sense. We are in one of those periods now.

It doesn't really matter how we got here, or how much of it is real and how much is mass hysteria. Having been through a number of these periods, I've come to pay less and less attention to the "why."

The most accurate economic indicator I have ever found is "primary customer motivation." As I interview customers for clients, I learn what is driving them to make the decisions they are currently making. In times of uncertainty, there is usually one big, fear-based driver. In times of economic growth, more drivers come into play, such as the need for status, the need to solve a problem, the need to change one's lifestyle, and the need to experience something new.

I have also found that journalists and economists don't have a clue about "primary customer motivations" until it's obvious to everyone what is going on. And, you can be sure that if the facts conflict with their agenda, the agenda will overshadow the story. That's why any business owner who depends on the press or economists to "guide" him is always going to be a day late and a dollar short. Instead, if he was personally and regularly interviewing customers (or having someone he trusts do it for him), he'd be finding out what's really going on - six months before everyone else (including competitors).

In any economic situation, these primary customer motivation drivers determine what people are buying and how, as well as what they are deciding not to buy.

I am currently working with a couple of clients whose sales are being affected by current economic events. One client is in the luxury travel business and another is in the recreational boating business. In the former situation, high gas prices, higher food prices, and the fall of the dollar against the Euro are causing their customers to pull back on their buying decisions. In the latter situation, high gas prices and a concern about the economy are causing their customers to put off their next recreational boat purchase.

Of course, they're not the only ones feeling the pinch right now. If you are too, here's a recessionary rallying cry for you:

If you want more sales, get serious.

Serious about what?

Those persona articles I wrote recently (here and here), created a bit of a stir out there in BlogLand. Adele Revella from Pragmatic Marketing mentioned my concerns about personas and then went on to describe how those problems could be addressed, including not talking to salespeople about personas, but by relating stories about real buyers. Good advice.

Pragmatic marketing also blogged about my persona blog, with a piece about how people find numerous ways to avoid visiting clients.

Brian Eisenberg quoted Adele's quote, then also went on to talk about how to solve persona problems, using a 4-question survey that will help put flesh on the bones of your personas.

Salespeople (or, I should say, order takers) who are used to taking calls all day are still having a hard time adjusting to the email-driven business world we live in now. The same is true of many small business owners.

The phone is no longer the "instrument of choice" for today's busy buyers. Their preferred way of contacting companies when they are interested in a product or service is via email. And yet, too many salespeople and entrepreneurs are still treating email as an intrusion into their busy day. Because they get so much email and spam, and because they don't want to spend all day typing notes to people, they just aren't giving incoming email buyers the attention that they deserve.

If your salespeople are struggling with, or ignoring, this issue, it helps for them to see the email scenario from the buyer's point of view. It will help them understand how just a few minutes spent responding can make the difference between closing a sale or losing a customer for life. Let's look at this from the perspective of a customer we'll call Jane.

I am continuously amused at the lengths company executives will go to, to avoid talking directly to their customers. They'd rather do their taxes than phone or go face-to-face with a real, live customer.

As a result of this fear, company executives and owners will bet the company on any other data they can get their hands on. They pore over their website metrics. They run web-based surveys. They ask their salespeople (sometimes) and customer service people (hardly ever) what customers are saying. Every so often, they may lurk on an online discussion group.

They demand more and more data from their marketing folks. Every piece of data makes them want more data, because the data they get only raises more questions. Deep down inside, they wonder if it's all BS.

If they found some backbone and focused instead on actually having a few conversations a month with their customers - and listening to the calls that come in from customers - they'd understand what their customers want them to sell, and how they want to buy.

The rise of "personas"

Over the last few years, the idea of customer "personas" has been finding its way into website design. The basic idea, obviously, is to design your website for the types of people buying your product, so it satisfies each type of person's preferences and buying process.

Fear is a powerful motivator. Entrepreneurs use fear to motivate themselves; CEOs often use fear to motivate themselves and their employees. After a while, it's easy to consider fear as a valuable tool, a friend. Too bad it isn't true.

It took a while before the Web really changed the way people bought things, but it has happened. Now people go to the Web first and research the heck out of a subject before they buy.

They scrutinize, analyze, and agonize. They Google and re-Google, fine-tuning their search term until they start getting the desired results. They know exactly what they want and they keep searching until they finally find it, then compare their options, read the reviews, and consider the price and the functions. Once they are satisfied they have found the right product and are comfortable with the company selling it, they place an order.

I'm sorry to say that, over and over, I am finding business owners struggling to make sales because their marketers - in-house or outside - are trying to use yesterday's marketing and selling methods on today's buyers, who have definitely moved on.

Buyers have specific questions. If you're not giving them specific answers, you're not going to capture those sales. All technology aside, this is the biggest difference between "old" marketing thinking and "new" marketing thinking.

The best way to illustrate this is with an example.

Here are some of the most common barriers to revenue that we encounter as we help our clients. Are you making one of these mistakes?

Your company name doesn't tell them what you sell. We call our company Zhivago Marketing Partners for this very reason. It would have been just as easy to call it Zhivago & Company or something similar - but that would not have answered the first, most basic question: "What does this company sell?"

If you're just starting out, make sure your name clearly indicates the type of product you sell.

If you've already invested too much in your non-specific name to change it now, then add a tagline to your logo that says what you sell. Keep it short - no more than five words. Tell them what you sell, using the words people would use to find you.

The customers I interview for my clients range from engineers to programmers to CPAs to physicians to store owners to sailors to dealers to system integrators to women who buy skincare and makeup to salespeople to marketers to CEOs to...well, you get the picture. Just about everybody.

They always have something interesting to say. In fact, you'd be surprised - shocked, even - if you heard how much your own customers have to say about your product and company.

If you interview people skillfully, it's easy to get them started, and once they get started, they can talk for an hour or two about a product, company, and industry. They can tell you what they like about it, what they wish vendors would do, what else they've tried, and what they thought about those products. They will tell you what was frustrating or convenient about the buying process.

They can tell you how they looked for the product, the questions they had, and the tradeoffs they had to resolve before they spent the money. They can tell you the trends they see in the industry, not just based on their own needs, but by observing what others are doing and buying. They can also tell you what would make the most difference for them.

For example, the women I've been interviewing lately for a cosmetic/skin care company have mentioned that they wish cosmetic companies didn't come up with new colors every year.

As the leader of your company, what you decide to do is what gets done. At least, that's how it should happen. What you have control over (to a degree) are your own decisions, your own actions, and the management of your employees. You have some influence with your business partners. You have no direct control over your customers.

Of course, without customers, you wouldn't have a business - no revenue, no employees, no partners. The people most important to your business are your customers.

Whom do you spend the most time with? Employees.

Well, it's that time again. Elections. Always causes a bit of a dip in productivity, and a slowdown of the buying process, while everyone waits to see how the election will turn out.

Welcome to Distraction City.

In our news-dominated culture, distractions interrupt buying patterns. The larger the distraction, the larger the interruption. I tend to think of these periods as distraction-driven mini-dips. If there are a number of them in succession - especially those involving armed conflict or a terrorist attack - the dips can turn into a recession.

During these distraction-driven mini-dips, it's more difficult to generate revenue. Everyone still goes to work, meetings are still held, contracts are still signed, but if you're on the selling side, it always feels like the world is sliding sideways. As you attempt to finalize a contract, it's like talking to someone who is talking to someone else on a cell phone. Or who is pretending to be paying attention to you while simultaneously watching a movie. Sure, they will answer your questions, but they're not "all there." People are no where near as adept at multi-tasking as they think they are, especially if they have an emotional stake in the other task.

It's not just the buyers who are distracted. Sellers are distracted, too.

Major opportunity for you

There's a conflict between the information you want to get from your potential buyers - in order to market to them effectively - and the fact that asking for that information can prevent them from interacting with your website or making a purchase. Asking for too much information too soon is like the owner of a retail store "greeting" you at the entrance and forcing you to sign a guestbook before you can start shopping. Most people would decline and leave the store, which is exactly what is happening on your website - except you can't "see" them leaving without resorting to in-depth web stat log analysis.

How do you find out what you need to know without placing barriers in their way?

New marketing vehicles rise up, get overused, and fall out of favor faster than ever. Email has been through all those phases. Pay-per-click is currently in the falling-out-of-favor phase. Blogging is still on the rise. Blogging is being touted as...

Economies are driven primarily by consumer beliefs and behaviors. When consumers are confident, they buy more. That's why economists watch consumer confidence levels. But that one measurement doesn't tell the whole story.

The real source of consumer confidence

A large portion of consumers are workers, employed by a company. Their confidence is directly linked to the confidence level of their boss. Workers watch their bosses carefully. If the boss is worried about the future, and openly agonizing about competition, slow sales, or too-high expenses, the worker is going to play it safe and hang on to his money.

He'll nurse his old car along; he won't buy a new house; and he'll resist making other purchases until his boss' attitude changes. He will also be more careful with the company's money. He'll watch his business spending. He'll take longer to make decisions, dragging out the buying process.

His boss, the company's owner, is also a consumer - of both consumer and business-to-business products and services. In addition to having an impact on the behavior of their employees, CEOs and the world's growing league of small business owners have a direct impact on the economy. They play a significant role as their company's top dog, and as consumers in their own right.