A Growing Contagion ... Neglected Customers

Published: IPA Bulletin - January/February 2010

There's a new, contemporary definition for abuse. It's called neglect and it relates to customers. The only way we will improve is to perform according to what makes a meaningful contribution to each customer's needs.

I had part of the sales team around me as I made calls to targeted customers with whom the sales team had not been able to get appointments or whom they were hesitate to call. On this particular call to a nonprofit, fundraising organization, the executive director was chewing me out:

Your representative hasn't been by to see us in two years ... we weren't big enough to be worth his time ... well I'll have you know that we've grown, a lot ... we're a lot larger now than we were, and we've already gotten this year's (2010) budgets approved, and selected vendors we're going to work with ... so I don't know why we should waste our time seeing you or anyone from your organization ...

I listened as she continued to beat me up. She was absolutely right, and I didn't argue with her. When she was finished, I was very contrite and agreed that everything she said was true. After some discussion, I asked if we could stop in to see her and drop off some information and material that might be useful in her fundraising activities.

Eventually, in that same phone call where my client was being ripped apart, the executive director made an appointment to see my client's vice president of sales and marketing and the assigned account executive. In addition, she made arrangements for her creative director to sit in on the appointment. The report from our client after the sales call included information that the nonprofit had indeed grown significantly it its annual budget fund drive needs, but was very interested in - even grateful - to receive a copy of:

• Current Trends in Fundraising,
• Several relevant case studies, and
• A review of new technologies and capabilities our client had developed for nonprofit, fundraising organizations.

Part of the unfolding story at this particular client is that they have well over 100 neglected customers just like the fundraising organization. My client's sales representatives have not personally taken any useful information, samples, and meaningful suggestions to these customers in well over six months.

At a visit with a second client, in the very same month, the president confessed that he had personally received phone calls from three major, assigned prospects that they used to serve. Each major prospect had been assigned to a different sales representative. Not only had each of those three sales representatives not followed-up on those assignments, but additional inquiry by the president revealed that there were other major accounts that also had not been contacted.

He was angry, frustrated and somewhat confused as to how this could happen; and, for the most part, he just wanted me to listen to him blowing-off steam. His company was in desperate need of additional business, and he was wondering what else he needed to do to get the message across of what he expected sales representatives to be doing.

Organizational and Market Conditions

Last year was an especially tough year for almost everyone in our great industry.

Over the last 60 days, I've talked to frustrated CEOs, two of whom fired what I considered to be highly talented and experienced vice presidents of sales and marketing. The CEO felt he had to do something to reduce his organization's costs and send a message to the Business Development Team regarding what was expected. (This occurred at different organizations from the two mentioned in the introduction to this article.)

Sales representatives are emotionally (and financially) beaten down. Reduced production teams are on short hours, and too many CEOs are asking themselves, "How long can we make our diminishing cash last?"

However, what I'm also experiencing is that  many customers had a "bump" in demand at the end of 2009 and at the beginning of 2010 regarding their print needs as well as a wide range of other needs. They had waited so long to order until there was no question regarding their needs. Additionally, though most organizations are still on tight, restricted budgets, their senior managements are clear in their objectives to make 2010 a better performance year than 2009.

In the last month, with two different clients, I've taken their list of "neglected customers," and - on the phone with the assigned sales representatives at the table with me - called and obtained appointments. My batting average? Well over 500 - even with the obstruction of voice mail.

After a series of successful calls and appointments, I tend to ask the sales representatives and CSRs in the room who were observing, "Did I do anything magical? What did you hear and what did you observe? Let's review."

Comments tend to run the series of: "Nothing magical! You did your homework regarding each account and you were purposeful. You didn't stutter or stammer; you knew what you were going to say. You asked for background information, what their business is about, and the history - before the call is made. Then you made it interesting for them to want to see you, telling them that you were going to bring them useful information and review what's new, improved, and what's worth their time for growing their revenues."

Renewing the Client Relationship

To effectively prepare to call for that "renewal of the working relationship" appointment, there are some basics I try not to shortcut. First, do your homework regarding the customer, and the supplier. That includes a review of:

• The target account's website;
• What they've bought;
• Estimating history;
• Their credit status;
• A brief discussion with customer contact personnel (e.g., sales representatives and CSRs about any nuances); and
• A reflective discussion of what business we aren't getting or could offer that would make a difference in what the customer can accomplish.

Almost always, this last item is significant but is seldom discussed in a group setting.

Homework regarding you as the supplier includes:

1. Profiling what types of customers we excel at servicing;
   
2. Profiling who we enjoy serving (and why);
3. Profiling who we need to avoid (and why); and,
4. Perhaps most important, profiling who needs and appreciates us the most?

Answers to these questions tend to provide a direction of whom to call first, and elevate my effectiveness in renewing a Sales Team's faith in their skills - a faith their employer needs renewed.

After the appointment is obtained, there's a debriefing of what I heard from the customer on the other end of the phone. In addition, we discuss what I believe are proper questions to ask when going on the sales call as well as useful information to take to the sales call and share with the customer. This will ensure that the customer's time with the supplier is properly invested. Finally, the sales call objectives include creating an opportunity for follow up with the customer.

All this is documented to the team that will make the call to the target account, and copied to the individual to whom they report.

What Are We Experiencing?

My observations include that all the customers and customer markets our great industry might serve need - more than ever before - for our member companies to improve these customers' economic well-being. That process cannot occur without our best representatives feeling a deep sense of mission to serve. A servant's heart is required (and not optional).

Above those issues, our industry needs leadership - on the front line - of our associations, members, and suppliers. Without leadership that knows what - and then shows how - to create and capture opportunities, we're just playing with ideas.

So to borrow from a timeworn cliche: either take the lead, support those who will, or get out of the way. In short: Lead, follow, or get out of the way.

Do you know your top 30 customers' priorities, their sources of pain, their objectives for 2010? The answer too often is no (or huh?).

If you don't know the answer to that question, how can you expect to provide those most important organizations with relevant suggestions, solutions, and programs that improve their business performance?

This is a new year, and the only way any of us will improve 2010 over 2009 is to perform differently and according to what makes a meaningful contribution to each customer's needs.

There is one final question remaining to be asked: Do you believe this article is worth distributing to your Sales Team?