A little bit lost in Maryland this summer, my family and I came across Glen Echo Park, a once popular destination that’s seen hard times and is on the way back through the involvement of a dedicated not-for-profit tribe of volunteers.

Most of our visit was spent at the carousel where I was smitten with Smarty Jones. Mmmh, mmh that’s a handsome looking horse – if I’d have been riding I’d have taken Smarty for a trot for sure.

But for the whole time we were at the park, not one child rode Smarty.

What’s wrong?

Why don’t some customers buy your product? If it’s anything like Smarty, it’s great: accessible, goes up and down, has all the features, stands out in a crowd, it’s super-shiny for goodness sakes.

So why does the turkey get a ride whilst good ol’ Smarty puts on a brave face?

It’s the kind of question I get asked all the time. “We have a great product, but there something wrong. What is it?”

Whilst every product has it’s own story, the tale is put together the same way every time — and anyone can do it.

Ask your customers

Act like a consultant and ask your customers. You’ll learn more from what goes wrong than what goes right so make sure to ask non-customers who’ve made an active choice not to buy, and actual-customers who’ve bought but have stopped using. Get out of the building and ask the people who know. Visit, lunch, interview, test, survey — whatever it takes to get the information you need.

Speak to enough customers to see patterns; some will point to lack of priority or urgency, others may point to weaknesses in your product or your proposition. Assume nothing, test everything. When you’re pretty sure you know what’s going on, it’s time to act on what you’ve found.

What are you going to do about it?

There are three layers where you might need to fix things inside the building:

• Message problems are easiest and cheapest to solve. Get together with your sales and marketing team and change your presentations, messaging, communications. Use A/B testing to see what changes work best — especially if you’re web based and have a lot of passing trade.
• Go-to-market problems are more strategic and will probably force a new look at your market, features, distribution, pricing and positioning choices. Everything in this layer is connected so be suspicious of anything that looks like a silver bullet.
• A weak or ill defined core proposition means a fundamental rethink and the discomfort of living with your current product whilst working back through first principles.

After two interviews (my own children, 40% of the carousel kids that day) it was pretty easy to work out Smarty’s problem. Too much competition and a very small market. Strategic problems with no answer in sight means old Jones could be racing to retirement.

What about you? Can you change priorities and raise urgency or do you have to go a little deeper?

Neatly filed under Foundations, Making Promises, Skippiness
Tags: competition, consultants, customers, Glen Echo Park, marketing

What happens when prospects don’t say Yes and won’t say No?

A Maybe is a hole in time. Complex products live with decision cycles that can last longer than a dying star. Entire companies have disappeared into Maybe shaped black holes. Listen carefully and you can hear them screaming “Just one more meeting, and I think we’re theeerrrreeeee…” as they fall across the event horizon.

It’s not always a problem. In a must-win, absolutely-no-choice, do-whatever-it-takes-to-keep-the-lines-open, a Maybe is the bread of life. If you’re operating bespoke — a new kind running shoe specially made for Paula, say — then you’re mission bound to keep the door cracked open.

Sometimes a Maybe isn’t even on the cards; it’s a Yes or a No, period. Simple products, the kind that leap to a decision in a single meeting, shouldn’t be a problem. Assuming you have good products and give good meeting, you’ll walk away with a Yes often enough.

I always prefer a Yes, but what if the choice is between a No and a Maybe?

What’s wrong with chasing rabbits?

Problem is, a Maybe sounds so possible — (just one more meeting). The more well funded you are the more likely you’re able to chase all these rabbits. The less well funded you are the more likely you’ll feel you have to. But as the saying goes, chase two rabbits and they both escape. Don’t confuse busy-ness with progress and don’t be seduced into endless streams of meeting-email-meeting-email-meeting, with your entire sales pipeline sitting at 75% probability.

Here’s the way I see it:

• Major sales take time and multiple meetings
• There aren’t enough resources to go the distance with every Maybe
• Use first meetings to find champions and ask for what you need

Let me explain.

Major sales are complex. New products are an untried cocktail of opportunities, costs and risks that force buyers to sit on fences for as long as it takes. Assuming your product shows promise and you make a decent fist of telling your story, it’s likely you’ll have no shortage of possible customers who are balanced on their fence whilst they “continue” talking to you.

Too many continuations and not enough progress saps the time, energy and finances of any team. The trick to maximising the effectiveness of all three resources is to focus on the “probable” customers and let the “possible” customers wait until they, or you, are warmer.

Find your champion

In other words, only dig wells where you’re sure there’s oil. Sadly, you can’t KNOW where to set up camp, but you can look for the single feature that marks out high potential territory; the presence of an identified champion inside the customer organisation. Not a point man or sponsor who simply arranges meetings for you, a champion is someone who sees the potential of your product, who pushes for progress and fights the good fight inside their own company.

Ask for what you need

How do you find these people? If you’re getting that Maybe feeling at the end of a sales meeting, do what you can to push for a Yes or No. The quickest way is to tell the truth and ask for what you need, “As you can see, we’re a new company and this is our first product. We’re fully committed but we know we’re not right for everybody at this stage. We’re looking for visionaries who can see the potential of what we’re doing and who want to work with us.”

Or, “So, we’re a small company that’s looking to expand by working with some new customers. We’ve had a good discussion today and I get the feeling you’re interested. What are the next steps that will progress our working together and who should we work with?”

Or … something else.

The idea here is to drive for a “Yes, we want to make progress, it will work like this…” or a straight “No thank you” as quickly as possible.

The more open you are about what you need, the more likely you’ll spend your time with probable, rather than just possible, customers.

Is this crazy? Maybe you should do everything possible to keep all prospects warm? Never giving an opportunity to say No? What do you think?

Neatly filed under Making Promises, Skippiness
Tags: customers, meetings, sales

Image copyright: ericajoy via Flickr

Everything I’ve ever heard about Zappos has reinforced my belief that skippiness is good for business. Following this week’s news that Amazon.com has agreed to buy Zappos in a deal that tops $900 million, I’m surer than ever.

Feel-good employment

Under the heading of Success Stories, Inc magazine says,

Zappos, the online shoe retailer that has won renown for its stellar customer service and feel-good employment practices, announced that it was selling itself to Amazon.com.

The article goes on to reference a letter sent to employees by CEO Tony Hsieh, saying,

that although Zappos would be a part of a larger company, it would preserve its quirky culture that focuses on keeping workers happy.

Reading that, and being a little biased about this kind of thing, I see a simple skippiness formula:

(products people want)+(“stellar customer service”)+(“feel-good
employment practices” that “focuses on keeping workers happy”)
=very happy owners.

I don’t mistake a simple formula for an easy formula. Each part is hard work in itself and pulling the whole thing together, consistently, over enough time to build a significant business takes more focus, clarity, commitment and discipline than most leaders can muster. But when it does come together, the editors of Inc pay compliments and investors pay far more than just their attention.

The thing that bothers me is, why don’t more businesses try?

Glad to be involved

Is it because it’s not easy? Maybe, but it has to be worth the effort.

Owning/running/working in a place like Zappos must be better than the opposite – a business that offers products people don’t want, with grudging service and feel-bad employment practices that make workers unhappy. I don’t believe anyone goes in to business or takes a job intending to make it like that. It just kinda happens, especially when leaders are concerned with the pursuit of money as an end in itself.

Running a business in the pursuit of skippiness takes an alternative perspective. It’s the idea that businesses should be started and run with the explicit objective of making customers, staff and owners all glad of their involvement.

This week Zappos “powered by service” proved beyond doubt that if you do a good job, all kinds of money will flow.

Neatly filed under Skippiness
Tags: customers, finance, people, Zappos

Image copyright: pipiwildhead! via Flickr

At its simplest, life comes down to a series of choices, or more often, a parallel of choices.

After deciding which new market or new product to go for, two types of choice dominate the day to day: how should we prioritise our time? and, should we go with option A or option B (or C, D, E, or F)?

This is no time to sway back and forth. You have to make decisions.

How do you decide what to do?

As I was looking in to this I came across a speech given by YCombinator founder Paul Graham at the StartupSchool2008 conference last year, he dealt specifically with the “how do you decide” question. His answer?

Do whatever is best for your users. You can hold on to that like a rope in a hurricane and it will save you if anything can. You can pull on that rope and it will guide you through everything you have to do. Figure out what they want, make them happy doing more of that.

Is he right? Absoloodle! Any choices that are best for customers tend to be pretty good for getting customers too. And customers make everything else possible.

If I could though, I’d add “in the long term” to the end of Mr Graham’s sentence. Running any kind of sustainable business, especially one that skips, is about winning in the long term. So doing whatever in the long term is best for your customers feels better to me.

Whether you’re prioritising time or choosing a fork in the road, put the customer front and centre, think long term, and swallow the results.

Neatly filed under Managing, Skippiness
Tags: customers, decisions, doing

Image copyright: Corscri-Daje tutti! via Flickr

Inside any kind of organisation bigger than the land of Me & My Mate, you’re probably surrounded by people who do a job that’s completely different to yours.

What do all those people do?

I’ve been thinking about the doing part of that question lately, rather than the people part. The way I see it, no matter what the job title or department, the doing falls in to one of only five categories:

Making Promises – easiest to think of as all the things that happen in sales or marketing, some customer services and board functions. Anything that makes any kind of commitment on behalf of the company is a making promises action.

Keeping Promises – everything that even vaguely fits into operations: all the tasks that make the product, perform the service, look after customers, pick up, package or deliver the thing.

Measure and control – all the things involving numbers or making sure nothing gets out of hand.

Support – what gets done in order to make everything else function; what normally happens under the headings of IT or HR for instance.

Leadership and innovation – without getting bogged down in book style definitions, leadership is about direction setting and steering to the compass whilst innovation is all the processes that aim to improve things.

These are not departments, they’re functions, and whilst every person spends most of their time in one kind of role, they probably undertake processes in others, if not all. For example, a production worker is mainly employed to keep promises, but they probably also try to innovate to improve things, keep an eye on production rates and quality, put their arm around colleagues when they need it, and continually make commitments within and for their department.

Ok. So what? Is this anything other than yet another way of thinking about organisational structure?

If every process is about making, keeping, ensuring and supporting promises, or improving the way the whole thing gets done, then every job is about the customer.

So what do all those people do? Let’s hope they’re not wasting any time discussing, deciding or doing anything that doesn’t draw a straight line to improving the life of the customer.

Neatly filed under Innovating, Keeping Promises, Leading, Making Promises, Managing
Tags: customers, doing, people