marketing & sales: Let Go of the Past

I call it FIP. Fine in the Past. It refers to all the sales and marketing efforts, ideas, policies, principles, techniques and strategies that worked well in the past (i.e., before 2010), but are no longer effective.

I still recall a poignant moment with an attendee at one of my seminars. During the break, he came up to me and said this: "I've been in business for 17 years. And we've done well. But now it seems like everything is changing, and I don't know what to do."

He went on to explain he had built his formerly thriving tool and die business on certain core principles: quality workmanship, competitive prices and good service. Those principles, adhered to with discipline and conviction, had brought him word-of-mouth business consistently over the years. But they were no longer working, and his business was floundering. The pain and confusion were written all over his face as he contemplated the prospect of seeing his business wither away.

Those principles are some of the most common examples of FIP. At one time, you could distinguish your business from others on the basis of these and other FIP principles. Now, however, the bar has risen. Because there is so much churn in our marketplace and the competition is so fierce, the kinds of service and quality that were sufficient to distinguish yourself from your competition are no longer sufficient. Your customers expect previously outstanding levels of service and quality from every supplier. What was sufficient a few years ago is still necessary today, but no longer enough. Your job is to create an attractive operation that will pull customers to you and then keep them coming back.

Be sure to avoid these additional FIP practices:

FIP #1: Creating sales by relying totally on outside salespeople. It was OK to hire a number of salespeople, give them some basic training and then charge them with "Go forth and sell a lot." Sales territories were geographically based and each salesperson was a clone of the other. Accountability was a nasty word that no one repeated.

Alas, this FIP practice is a prescription for inefficient sales practices. The better approach is a variety of sales methodologies based on the potential and dynamics of the customer.

FIP #2: Sales management by pay plan. In other words, pay them straight commission and everything will take care of itself.

That worked for another generation. Unfortunately, today's work force rarely is motivated by just money.

FIP #3: Reliance on "on-the-job" training. Everyone can learn how to be an effective salesperson. Just put them out there in a sales territory, and sooner or later they will figure out how to do the job well.

When the job of the salesperson was simpler, and the customer less sophisticated, this was fine. Today, of course, it positions your sales force as the less educated, less competent one in the market.

FIP #4: Hiring by "feel." When it comes time to hire a new salesperson, find someone who has some experience in the industry and whom you "feel" good about.

This is a prescription for a group of clones who please the boss but are rarely what the job demands. There are far more sophisticated and effective hiring criteria and practices than this one.

The list of FIP positions can go on for quite a while. These are the most common. If they apply to you, it is time to rethink your position and move your sales and marketing efforts into the 21st Century.

By Dave Kahle

Dave Kahle has trained tens of thousands of distributor and B2B salespeople and sales managers to be more effective in the 21st Century economy. He's authored eight books, and presented in 47 states and seven countries. Sign up for his weekly Ezine, or visit his blog at www.davekahle.com.