What’s in it for me? What’s in it for you?

We all buy things, all the time.  We buy jeans, cars, insurance, website design, ecommerce platforms, marketing agencies…  These are high value purchases – things that we invest time in evaluating and think carefully about before buying.

If you think about a successful sales pitch you’ve been on the end of I bet that on some level – emotional, rational, whatever – an evaluation of some sort went on in your head that led you to decide that you wanted what you were being sold.  If asked afterwards, I’m sure you could give good reasons as to why you needed what you bought.

giving someone some money for product or serviceI did a straw poll today – I asked everybody I encountered who had bought something why they bought it.  I got some interesting answers, but there was one common thread - The reason people buy things is because they clealy know what’s in it for them.  Not what it does, but why they like it, it feels good, it tastes nice, how much it saves them, how much it makes them…

One of the things I always realisewhen I’m not selling well is that I’ve stopped talking about benefits.  It’s a tiny little thing, but consciously using language like “this saves you money by doing x…” or “this will make you more money because it does x”, or “this will make you feel good because of x” puts me in my prospects shoes and makes me thing about what’s in it for them.

Thanks for your card, here’s my email address…

Every time I go to a meeting someone hands me their business card and I have to explain I just don’t do them any more.

I’d much rather connect on Linkedin or via BBM then take a card. I just don’t see the point in the digital age of the things, however expensive the stock, or how well designed they are. To me they are as redundant as the fax numbers so often printed on them alongside someone’s direct dial. At a conference you can use a scanner to take details when someone visits your stand – which saves on collating all those cards and data entering them when you get back home. Why should different rules apply outside of the exhibition centre?

Linkedin means you get a lot more than their job title anyway – you can see where they have worked, who you might mutually know and get a more developed understanding of someone than any pocket sized card. I appreciate when you get a promotion it’s great to get that new card, but if like me you own your own company hierarchy is really not important any more.

Lots of business cards but not for our new business agencyThey are also expensive, and ultimately disposable. I’d rather not use paper if I can help it (indeed we have paperless offices in both London and Edinburgh; we are a green new business agency) and business cards are no exception. I’m sure one pack equates to half a tree and I don’t want that sap on my hands just so someone can have a card which details my address details when they probably already have them or we can just swap emails via our phones.

Don’t get me wrong, I’m not refusing to take your card! It’s business etiquette and I understand that – just don’t think I’m being cheap not giving you one back. I’m not, I’m just not into them.

Your incumbent agency doesn’t really do that – they just tell you they do

If a guy calls me up and says ‘we offer laser eye surgery’, I don’t say ‘ah – my dentist does that, sorry mate’.

Jack of all tradesClearly, that would be stupid of me…

Even if my dentist said to me ‘we’ve employed an eye specialist who does laser eye surgery’, I still don’t go ‘Great mate, when can you laser my eyes’.

If I had a particularly creative dentist, he would say ‘don’t you worry about it, we can deal with it all – we outsource to an optician’; I’d still be cautious – it’s my eyes, I don’t want my dentist appointing somebody to start poking about in there…

Please can somebody explain to me why, when I try and sell our social media agency and say ‘we can help you use social media for customer service/campaigns/community building/all the things that a specialist can really do well with social media’, so many marketing people say to me ‘our ad agency does it’?    Social media is fundamentally not advertising…

And it’s not just social media either.  Mobile web?  Digital agency.  Mobile advertising?  Media agency.  Websites in 1995?  Advertising agency.

If there’s an industry of established specialist players, there must, surely, be something they know that my non-specialist doesn’t?  Surely that’s worth taking a look at?  I’ve never really understood it…

Why do some big companies never learn…

I remember selling digital back in the 90s, when the web really started to kick off.  There were massive opportunities for brands that did digital well and as a result lots of agencies were delivering projects and campaigns that showed 4 and 5 figure percentage increases in revenue.  With these as case studies, and a healthy economy, digital was fun to sell.

ostrich head in the sand - our new business agency doesn't do that!I also remember speaking to companies that were burying their heads in the sand when it came to the web – big, multinational companies, whose Marketing Directors were saying ‘Digital is not a priority for us right now’.  A cracking example of the effect of that is the travel industry – in the 90s the established companies were fairly quick to spot the opportunity in digital and take advantage of it, but they weren’t quick enough and as a result others, such as Lastminute.com, took market share.

That was then – it’s in the past, everybody got up to speed, and now the online channel is the key channel for most companies in the travel industry.

So fast forward 15 years – what surprises me is that the mistakes are being repeated.  One of the biggest travel companies in the world, TUI, still doesn’t have mobile sites for most of its brands  and doesn’t show any signs of developing them either.  I’ve been trying to convince one guy in particular (who runs 54 of their sites) that this should be a priority now because in 6 months time it’ll be too late.  Response?  ‘It’s not a priority right now’.

OK there has been a merger and some restructures, and that many sites is a complex project, but is it just me or is it a bit of a no brainer that TUI has to do something?

It’s not just TUI – there are always innovators and always those who are more reluctant to invest in something new, but what amazes me is that there are so many people who are unwilling to spend in new channels despite all the evidence showing that they work and they’re not going away.

The ups and downs of research

Trying to find the name of someone who works for a company in a specific role isn’t always easy. This can be put down to several things, the major one being the unhelpfulness of whoever picks up the phone when enquiring. Either said company has a no-names policy, which is drag but you can’t exactly blame them, or the person on the other end doesn’t know, for whatever reason.

That’s a real shame, as it really could be a major loss for any company if you’re unable to find the right decision makers due to an employee’s lack of knowledge, or unwillingness to help. When our people are calling companies to highlight our different client’s services, a rebuttal on the initial call could be a major loss of profit etc, both for our clients and the prospective company.

trying to phone someoneBut I think the worst thing is the stubbornness you can encounter when calling with an enquiry. To be told they aren’t willing to share information, only to find it 2 minutes later clearly listed on their website, baffles me. ‘I can’t have their email address? Never mind, here it is listed on your website quite blatantly, thanks anyway, we’ll be sure to let your directors know how unhelpful you were.’ Not that I’m a cynic or anything.

Finding a name through perseverance can be rewarding (he say’s without any hint of sarcasm) but not as rewarding as a helpful switchboard operator or receptionist.

Preparation is the key to a successful new business agency relationship

What a month! We’ve been very busy indeed, servicing existing clients as well as kicking off new campaigns. This takes the form of a planning meeting, part of which is about absorbing as much information as possible and part of which is working out how a rock solid proposition.

Clients who come to us with a proposition in place won’t get an easy time of it either. It’s often the case that those clients take a lot longer to prepare – it is a two way street after all. A client has to adjust their thinking and forget the way other new business activity might have been approached. Getting things straight from the start we have discovered is essential for delivery, relationships and sanity!

Every time I now meet a potential client I stress how important this preparation work is. They might have pre-conceived ideas about how quickly a campaign can start and if they do I am quick to address this.

First we consider what services are we actually selling and then we consider who it is we want to sell them too

If you’re already getting business from a sector don’t then say let’s leave it to your new business partner– consider every aspect of that sector first – incoming leads come in bursts and a dedicated campaign strand will make sure an agency gets in front of decision makers who might not of heard of you, however well known in property, or gaming, or publishing you might feel you are. What we do isn’t easy – but just because of that don’t think you’ll leave the easiest targets for yourself – after all time and opportunity are other factors you are buying when you take on a new business agency.

Don’t think in verticals too much either. Think horizontally I always say – let’s nail down the proposition, agree on the market and then create the messaging. Nobody cares about pretty picture anymore apparently. That’s not entirely true but they care more about return on investment and what it is a new agency can offer them an incumbent can’t. And that’s why we always suggest looking at our client’s offer from a product point of view. It helps identify the sell as much as it does for the prospect enable them to evaluate when it is they might want to take a closer look.

Campaign planning meetings aren’t ever easy, there’s resistance, there’s arguments and unfortunately there’s often biscuits.

There’s also ambition and sometimes a little bit too much imagination. Be realistic about targets and base them and what it is you are capable of selling! If you are in a crowded market place you need a better way to stand out then great account management, creativity or lower cost. It’s 2012 and the prospect couldn’t care less – they want to know about the bottom line and how you can help them, and if you still think that’s lower cost please don’t call us.

A proposition ought to make people sit up and listen and a campaign planning session is about increasing to the max the chance of that happening and then all the tactical stuff to support the sales activity – the nice stuff if you like. The strategy stuff has got to be about much more than agreeing an offer these days. Make your prospect community as small as possible and the message as useful as it can be, otherwise you’re just standing on a rooftop shouting, and that’s for the birds.

Our new business agency model and our point of difference

One thing we have learnt over the past two months is that when it comes to fee there isn’t a lot of difference between ourselves and our competition.

This is the busiest time of year for new business agency new business. Potential clients are considering their options and with a new year approaching there’s a desire to grow, to win new work and to find new ways to do so.

It’s a very competitive marketplace, just as it is for our clients in their own fields. We certainly don’t ever bad mouth our rivals, but finding a point of difference is the key to standing out. Or is it?

These days the expression usp has become a bit jaded. Essentially point of difference is still important but less so than what it is an agency does to make a point of difference for potential clients. This is how we sell in our clients a lot of the time

Does that strategy qualify as a usp between us and our competitors? No, we’ve all moved away from trying to sell that way. Quality of people, well we know a lot of good salespeople inhabit our space and long may that continue, and only really good sales people can work in our industry for very long. Fee, well as I said, there’s not a lot in it.

One thing we have noticed is time allocated to accounts. It is industry standard within new business agencies to work on an account one day a week averaging out about five days a month. Maybe six. So you’re getting slightly over the equivelent of a weeks time from an in house business development manager.

Except there is a bit more to it than that; in house bdms, as we know at Icebreaker from our own firsthand experience, have RFPs, tenders, meetings, internal meetings, pitches to complete etc etc. This eats sales time and you will end up with probably about thirty five hours outbound activity a month. We know. We’ve done the maths.

Which is one of the principal selling points of new biz agencies and always has been, and that’s whether I’m selling Icebreaker or back when I used to work as sales and marketing manager at one of our longest running competitors.

However at Icebreaker we think that’s not quite enough. Because one of our three directors and a bdm work on every one of our accounts our clients end up with around fifty five hours dedicated to their sales pipeline.

We were told at a recent pitch this really does make a point of difference between us and our competition. It was nice of the potential client to point this out because we’d of not thought it was such a big deal. But of course it is. It’s a very big deal indeed.

To talk to us about how we’d spend that time working with you email us at hello@icebreaker-bd.com

Commercially astute new business managers are hard to find and spot (so if you are one, please get in touch…)

They’re out there but it can be hard to spot the difference between someone who gets a P&L, either instinctively or due to past experience, and someone who thinks it’s worth a 3 day trek to Harrogate for a £10K project…and at the same time is not too senior (and too expensive) to be doing outbound new business…

The return on investment model is crucial for us.  Clients pay us, clients win substantial amounts of high value, good margin business, clients see a good return, they keep using us for years, they see the value of the cumulative effect over years and everybody is happy.

However, most sales people think in terms of the targets you set them.  If you set them an annual revenue target then all they think about is hitting that revenue target.  They don’t think about margin, cost of winning the work, opportunity cost of the time spent winning the work, a healthy mix of business on your books, etc. etc. etc.  You can train and coach it, but in the meantime you’ll find them spending a lot of time chasing down business that looks to be ‘worth a punt’ but isn’t really good business for you.

Very rarely you come across somebody who just gets it instinctively and can sell.  When you see them, grab them – they’re worth their weight in gold.