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to To The Point list To the Point/May/2005 • Cell phone surprise Beyond convenience, one of the pleasures of using a cell phone is knowing that incoming calls are from people you know. That’s just about over. In the near future, you may answer your phone only to be greeted by a telemarketer. Cell phone numbers are about to be released to telemarketers. Even if you enjoy taking telemarketing calls, you’re going to pay for them. If you don’t want to be bothered, then call Do Not Call at 888-382-1222 or visit www.donotcall.gov. It only takes a minute and it blocks your number for five years. • Mosinee Insurance online Over the past year, we’ve been developing a “useful tools” approach to our web site. It’s www.mosineeins.com. You’ll find just about any insurance form you may need. You can download them instantly. We have archived a number of insurance-related articles on the site, along with press releases. We also have “specialty” sites. There’s www.comp-save.com that offers information on Workers’ Compensation, as well as our Comp-Save service. Then, www.fitnessins.com serves health clubs and fitness centers, while www.lodgingins.com serves the Wisconsin hospitality industry. • What are the factors that drive up Workers’ Comp costs? The Public Policy Institute of California made an analysis of why Workers’ Comp costs had soared in the past four years. In its report, the Institute identified medical costs and an increasing number of permanent partial disability cases as the two most important factors. When employers come to recognize that they are the ones who actually pay the bills for injured workers and Workers’ Comp is really a financing mechanism and not insurance, the need to take charge of the process becomes a top priority. Unless companies have a clear, relentless strategy for dealing with medical costs and work safety, Workers’ Comp expenses will continue to bite into the bottom line. • Why most sales are lost While there are a number of possibilities, two issues stand out. First, is a lack of preparation. According to one report, less than 10% of salespeople actually use a systematic strategy to prepare to make the sale. “Most rely on their experience or knowledge to carry them through,” reports What’s Working in Sales Management. Being prepared means understanding what the customer wants. Noticeably, it has nothing to do with what the customer wants to sell. The second factor contributing to lost sales is quitting too soon. Salespeople tend to think that customers must buy in a specific length of time. If they don’t, the salesperson drops them. Yet, successful salespeople know that it may take even a year or two before a customer signs the order. The ability to manage prospects over longer periods of time is becoming a key skill for every salesperson. • It’s so easy to overlook the obvious We get comfortable with people, procedures and just about everything else. It seems only natural. We like a business to move smoothly, without one crisis after another. We’re not alone. Employees don’t want their “routines” disturbed, either. All this contributes to “change-avoidance.” It’s just too much trouble to introduce new ideas and ways of doing things, including new products and services. This may be what happened at Burger King. The company had 11 CEOs in 20 years and was about to give up its number two spot behind McDonald’s to Wendy’s. As the Wall Street Journal noted, “the Home of the Whopper housed a pretty dysfunctional family.” Then, Greg Brenneman came along. This CEO was a turnaround specialist who had worked wonders at Continental Airlines and PricewaterhouseCooper’s consulting unit. Along with a beefed up new menu designed to attract younger males, he walked the stores and noted that the huge dining rooms were 85% empty most of the time. The new restaurants are smaller, not only saving money but also creating a better image for customers. Why didn’t others see that the buildings were too big and too expensive to operate? Maybe Brenneman said it best, when he commented, “I do restaurant visits every week.” Sounds like good advice for every CEO. • More legs on the business stool With all the dramatic changes taking place in the economy, it’s easy to feel the impact of changing markets. Car manufacturers depend on their financing units to deliver their profits. Others look to overseas expansion to save the day. Even Wal-Mart, the 800-pound retail gorilla, is no exception. The nation’s largest retailer is looking to its grocery stores to fill the gap from lower than expected sales in its general merchandise operations. Nothing stays in place, does it? Maybe this is what “creative destruction” is all about. Constantly being challenged to turn another corner, climb another mountain, solve another problem and come up with a new solution. Maybe that’s really the job. • Enthusiasm wins! According to a study by Rogen International, price doesn’t even make it into the top 10 reasons why prospects choose a supplier. Does that surprise you? Those salespeople who land the big deals do have three characteristics, however: 1) They show enthusiasm and commitment (in other words they believe in what they are doing); 2) they demonstrate the quality of their company’s staff (they understand the power of representation) and 3) they listen to their prospects’ goals and needs (customers can easily detect salespeople who are only interested in themselves, no matter what they say). The formula is simple and clear. But the results speak for themselves. Sincerely,  Tom Helbach Back to To The Point list |
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