Wednesday, June 19, 2013
WHAT IS YOUR FLIGHT PLAN FOR BUSINESS GROWTH? - Part 2
How To
Increase Your Number Of Clients
It is interesting how many companies when income curves become stagnant tend to whip sales & account management teams to do more of the same, when better incentives might be the simple solution.
For example, a company experiencing income stagnation applied a compensation program that paid the sales person 10% of the profit per sale. So when a $1,000 sale was made the company retained $900 whilst the sales person was compensated with $100.
Upon consultation the company calculated the following 3 simple questions:
- Average worth of
first purchase from new client?
- Average number of
times new client will purchase in the first year?
- Average number of
years client will continue to purchase?
The company responded...
- Average profit of
$200 for each new client first purchase of which the company kept $180
& compensated the salesperson with $20
- Average number of
purchases per year was 5
- Average number of
years new client continued to purchase was 3
Based on this the company accumulated approximately $3,000 profit over the average lifetime of a new client of which the company kept $2,700 and compensated the salesperson with $300.
Upon further consultation, the company was advised to:
- Compensate the salesperson with
100% of the profit from every first sale they produce
- Compensate salesperson with 10%
of every ongoing purchase from new client
- 10% ongoing compensation to
continue ONLY if salesperson maintained new client to continue average
purchases (5 x per year over 3 years)
What do you think happened?
First, the salesperson was compensated $200 instead of $20 for every new clients sale therefore, the sales team was 9 x more motivated
Second, the life time value of each new client was worth approximately $3,000 therefore, with this strategy the company now keeps $2,520 and compensates the salesperson with $480
Ultimately, with the sales team greater motivated, the company TRIPLED it's number of new clients in only 9 months!!!
Evidently there are many additional ways to increase your number of clients and so, look out for our next newsletters.
All the best with your business!
If you would like to discuss how to improve your organisations capability in the areas of Leadership, Communication, Presentation & Sales then simply contact us for a complimentary, no obligation conversation.
Go to www.EffectiveCommunication.com.au to find out more
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Wednesday, June 5, 2013
What Is Your Flight Plan For Business Growth? - Part 1
3 Ways To
Geometrically Grow Your Business
The human brain is a remarkable, creative asset capable of processing and understanding complex and intricate concepts. Yet at times, unable to recognise the obvious and simple.
Some examples of this are:
Ice cream was invented approximately 2000 B.C. Yet, it was almost 3,900 years later (1900's) that someone figured out the ice-cream cone.
Meat has been on the planet at least 6,000 years. Bread was baked since 2,600 B.C. Yet, it took almost 4,300 years after this (1700's) to commercialise the meat sandwich.
The modern flush toilet was invented in 1775, but it wasn't't until 1857 (82 years later) that someone developed toilet paper.
Once these and similar connections are made they seem so obvious and our remarkable brains consider why these ideas were not materialised sooner.
Believe this or not but a number of ideas and unmade connections exist today, even in this generation known as 'Technological'.
Many of the non-materialised ideas and connections are 'right under our noses' in the business world. In other words, you are surrounded by untapped solutions that can dramatically increase your income, leverage, influence and success!!!
The question you must ask yourself is, "do you see them"?
Very simple ideas and connections can quickly develop your and your organisations ability to better lead, communicate and sell in totally ethical, respectful and honorable ways.
EffectiveCommunication.com.au helps to uncover hidden assets, opportunities and possibilities that are not producing maximum results.
Here's one simple idea:
There are only 3 ways to successfully increase your business. Yes, three.
Ice cream was invented approximately 2000 B.C. Yet, it was almost 3,900 years later (1900's) that someone figured out the ice-cream cone.
Meat has been on the planet at least 6,000 years. Bread was baked since 2,600 B.C. Yet, it took almost 4,300 years after this (1700's) to commercialise the meat sandwich.
The modern flush toilet was invented in 1775, but it wasn't't until 1857 (82 years later) that someone developed toilet paper.
Once these and similar connections are made they seem so obvious and our remarkable brains consider why these ideas were not materialised sooner.
Believe this or not but a number of ideas and unmade connections exist today, even in this generation known as 'Technological'.
Many of the non-materialised ideas and connections are 'right under our noses' in the business world. In other words, you are surrounded by untapped solutions that can dramatically increase your income, leverage, influence and success!!!
The question you must ask yourself is, "do you see them"?
Very simple ideas and connections can quickly develop your and your organisations ability to better lead, communicate and sell in totally ethical, respectful and honorable ways.
EffectiveCommunication.com.au helps to uncover hidden assets, opportunities and possibilities that are not producing maximum results.
Here's one simple idea:
There are only 3 ways to successfully increase your business. Yes, three.
- Increase your number of clients
- Increase the average value of each sale per client
- Increase the number of times your clients return and buy again
As a business leader, it's significantly less daunting for you to focus on and develop these 3 criteria. It's so easy that you should take a look at this simple example:
- Calculate your
current number of clients
- Calculate the
average value each client spends per sale
- Determine how
many times these clients purchase from you per year
By way of example, let's say you have 1,000 clients who average $100 per sale and purchase 2 times per year.
1,000 clients x $100 per transaction x 2 transactions per year = $200,000 total income
Now, look what happens when you improve these 3 criteria by just 10%
1,100 clients x $110 per transaction x 2.2 transactions per year = $266,200 total income
Wow, a mere 10% improvement in these 3 criteria increases your income by 33.1%
A 25% improvement in these 3 criteria almost doubles your income to $390,625. Yes, almost 100% additional income!!!
By focusing on this idea alone is one small way organisations improve by increasing income by 20%, 50%, 100% and more.
This simple geometric growth formula works equally as well with non-financial goals. For example, peak performance sports coaches break down every element of a game and it's plays into an identifiable process. They then rate the team per element based on a scale of 1-10. Then by simply focusing on 2 or 3 elements to improve them by only a small percentage produces exponential, compound impact and results.
So you see this simple idea and concept works for business, sports and every area of your life when applied.
Look out for our next newsletter titled 'WHAT IS YOUR FLIGHT PLAN FOR BUSINESS GROWTH? - Part 2'
In the mean time, if you would like to discuss how to improve your organisations capability in the areas of Leadership, Communication, Presentation & Sales then simply contact us for a complimentary, no obligation conversation.
Go to www.EffectiveCommunication.com.au to find out more
CLIENT TESTIMONIAL
"In my capacity as Building Manager within the Leighton Holdings Group I have been associated with EffectiveCommunication.com.au (EC) since early 2004.
I involved EC with our Westmead Hospital team in a High Performance Team Workshop to better align our project objectives to the performance of each key staff member. This was a critical process as the project team was relatively new.
Accountability Maps were created against each identified objective. The outcome was the creation key performance communication indicators stating the involvement of particular members of the team. We are monitoring this process quarterly to ensure we achieve what we agreed.
The process that EC put us through in
preparation for the Westmead Hospital Workshop assisted in making sure the day
was successful. I have since used this process and EC's input on our 100
Pacific Highway (a commercial high-rise development) project.
I
know some of my staff could not have communicated their input on the two
examples above without the preparation work EC put them through leading up to
the workshop. EC are retained on an ongoing basis to conduct training for our
business and to assist on individual assignments as required. I highly
recommend EC to future clients."Steve Holden - Building Manager
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Monday, January 21, 2013
STAND OUT WHEN COMMUNICATING & PRESENTING WITH EXECUTIVE LEADERS
Connecting with Executives doesn't happen automatically.
Understanding what is important to them and learning how
they think is of the upmost importance.
For
more than ten (10) years that EffectiveCommunication.com.au has served
multinational organisations and their leadership. Here are some of the comments
Executives have shared as to how you can stand out and make a difference.
A lack of preparation is always obvious
Executives stress
that preparation is critical. Their advice is to do your homework thoroughly.
Understand what is going on in their world / business right now.
Tip: Learn
all you can by about the Executive leader by talking to mutual contacts, check
the Internet, check for press releases or analyst reports etc.
If you want to play in my sandbox, you cannot seem nervous
You must look, sound and act confident. The Executive will
hesitate or delay if your body language does not back up your message.
Tip:
Practice your conversation ahead. Make sure your posture is open and you lean
into the table. Be sure to sustain eye contact for a full sentence or thought.
Pause for a breath at the end of your thoughts. Envision your success!
Set the context for the meeting. I may have forgotten
The
Executive has a lot on his or her mind. They may have forgotten the purpose of
the meeting so be sure to define the issue and its impact.
Tip: Executives
appreciate knowing what you ultimately want them to consider. State your
"ask / outcome" upfront.
Be brief and then be gone
Executives have a lot on their
minds. They run from meeting to meeting. Time is very important to them so get
to the point quickly. Do not go into unnecessary details. If there is an
analytical base that is necessary, email it to them in advance for review.
Tip: Focus on what
the Executive needs in order to make a decision. Have any supplemental
information, charts, graphs, extra slides etc. at the ready.
More words are not an indication of more thought. Often, it
is just the opposite
Keep your points simple. Do not over-talk an issue. Be
very concrete and very specific. The simpler your points, the easier it is for
them to make a decision.
Tip: Executives always want to know the risks and the
scope of the opportunity.
I appreciate just having a conversation. I am not a fan of
big slide decks
If slides are not critical, do not use them. Slides that are
your speaker notes diminish your impact. The more slides you have, the more
things can go horribly wrong.
Remember, anything that is on the slide is open for
discussion. Your slides must tell a complete story. Executives hate when they
have to dig to find the story.
Tip: Your transition statements from one slide
to the next are critical. They provide context for what you are about to say.
Expect pushback
Executives don't want to make a mistake.
They typically will have questions or need more information to help them
decide. You should not be thrown by questions but rather view them as an
opportunity to demonstrate your conviction or commitment to an idea. They are
not trying to trap you or derail you.
Tip: Make a list of the questions you
think the Executive will have ahead of time and determine how you will answer
them.
Try to figure out
what is key to the decision. That is where the bulk of the questions will come.
Making an Executive connection takes time and effort. Your
Executive level conversations and presentations are a moment of truth. If you
do a good job, you advance your cause and the perception of you as a leader. If
you do a poor or mediocre job, you fall into the abyss.
All the best with your future communications and
presentations with Executive leaders!
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Tuesday, December 4, 2012
HOW INFLUENTIAL ARE YOU WHEN COMMUNICATING & PRESENTING?
No matter how good your products and services, people will only be interested to the degree your organization and you demonstrates influence.
Robert Cialdini, author of ‘Weapons of Influence’ & ‘The Psychology of Persuasion’, is a leading expert in the area of influencing.
In Robert’s books, he identifies critical principles that generate desirable change. Below are the 3 key points.
To be influenced during your communications and presentations, your audience must:
1. UNDERSTAND YOUR ARGUMENT
You must be logical and insightful. Everything has to add up.
The points of your ‘Argument’ should be easy to follow, especially if the audience needs to make a change, such as discontinue a campaign or revise projections etc.
The language you use must be clear. You cannot leave audiences wondering what you mean. For example, "The fire communicated to the next building." (Does that make sense to you?) Or, "The ideology is for an uptick baring further devolvement of the economy." (What does this mean?)
Finally, if your audience is to understand your ‘Argument’, you must be concise. Burying your points under unnecessary information will work against you.
2. ACCEPT YOUR ARGUMENT
People will accept your ‘Argument’ if they see it as consistent with the direction they are already following or the commitments they’ve previously made.
Audiences are more willing to take a recommended action if they see evidence that others similar to them are following your suggestions. This is why testimonials, examples and case studies are a MUST!!!
Finally, audiences will be more open to accept your ‘Argument’ when you provide proof from credible sources, which are very easy to gain from the internet etc.
3. TRUST IN YOU
People prefer to invest in and say “yes” to those who communicate and present with confidence.
History has also proven that people invest in and say “yes” to people they like. Thus, it is essential you develop genuine rapport. You can't take an existing relationship for granted!
People also trust those to whom they attribute relevant authority or expertise. Obviously, if you have ten years or more of experience in your field of business, you will be seen as an expert. However, if you are new to your field or organization, then simply use the collective credibility of your organizations history, people, success etc.
Lastly, people trust those who go out of their way to provide products and services ‘above and beyond’ what is typically delivered therefore, what more can you do?
Influencing others can seem daunting, but when you pay attention to these 3 key principles, it is easier than you think!
All the best with your future business communications & presentations!
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Tuesday, October 16, 2012
ARE YOU TRUSTED IN BUSINESS?
Being a Trusted Advisor in the eyes of your clients is the Holy Grail.
Being a Trusted Advisor is what you must be when selling products and services.
It takes time and perseverance to develop such a relationship, but the rewards for both parties are enormous. However, be aware there are some things that will erode the relationship. Assess what follows to insure you are doing nothing that puts this all important relationship in jeopardy.
1. Telling Is Not Selling
Lead, but don't tell. Nobody likes to feel you are the parent telling them what to do. People respond best when you involve them in determining an action plan or next steps. Their preference is for you to give them strategies on how to think or decide. Ultimately, it is up to the client to choose.
2. Accept Blame
If things go wrong, perhaps with a delivery or an install, take ownership and do not become defensive. Concentrate on what can be done to resolve the issue and never, never lay blame.
3. Focus On A Win Win Outcome
While people want a subject matter expert, they don't want someone only focused on the end game. It will erode the relationship. Remember, it's not about you; it's about them!
4. Demonstrate Your Expertise Is Based On A Professional Network
You are not Yoda, so relax. If you don't know the answer and you're the subject matter expert, admit it or use your network.
5. Listen More Than You Talk
It's easier to say you are a good listener than to be one. The number one skill for being a Trusted Advisor is good listening skills. The client should do most of the talking, not you. Try not to fill blank airtime.
6. Stimulate Imagination
Of course, ask questions but ask questions that get the client to think. A constant barrage of "fact" questions will not engage or help people to envision a new way of thinking.
7. Watch The Person's Reactions
Any changes in your client's body language or voice should be duly noted. If you see them looking perplexed or if you see their body language getting rigid, be sure to make adjustments in your body language; Lean in; Be more affirming; Smile.
8. Show Empathy
People need to see you care. Validate their issue or problem with a statement such as, "That must have been disturbing." Or, "I am so sorry that happened to you."
Even a simple nod or sympathetic smile can mean a lot to a person when they are stressed. If you feel something is bothering your client, pay attention and acknowledge what you see. "From the look on your face, I can see this is difficult to discuss. Am I right about that?"
9. Call Back
When there is a relationship, the client expects you to return phone calls quickly. Even if you don't know the answer, be sure to return the call, instead of waiting. Any update means a lot.
10. Avoid Being Distracted
Today's multi-tasking world makes it difficult to feel it is okay to do just one thing at a time. Your client expects you to focus only on them. Never glance at email, take a phone call or watch people in the hall. Your client will not feel valued and will become annoyed.
11. Be Interested
Reach out to your client throughout the year for other than the sale. Send articles or whitepapers. Notice any trends in their industry. If you see their name in the paper, do send a note.
12. Diagnose Based On Correct Assessment
It is easy to make quick judgments, but resist the temptation. Wait until all the information is in before making any recommendations.
These twelve tips are essential tips for being a Trusted Advisor. These principles will give you the pole position when your prices are not as competitive as others. And, you will be too valuable to lose as long as you remember what is important.
All the best with your business!
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Monday, September 17, 2012
Amazon CEO, Jeff Bezos & The End of PowerPoint As We Know It!
The next time you deliver a PowerPoint presentation that matters, a product launch, investor pitch, new client meeting etc. — take a cue from Amazon CEO Jeff Bezos and ditch your bullet points. When Bezos unveiled the all-new Kindle Fire HD this month, his presentation slides were light on text and heavy on images. This style of delivering presentations is fresh, engaging, and ultimately far more effective than slide after slide of wordy bullet points.
For more than ten (10) years EffectiveCommunication.com.au has trained thousands of business people with the same proven communication & presentation tools many global business leaders effectively use. Famous leaders such as Facebook founder Mark Zuckerberg, Yahoo CEO Marissa Mayer and Microsoft CEO Steve Ballmer.
Light on text and heavy on images works for any leader, in any industry. And no, the leaders noted above did not invent effective communication & presentation styles. Instead, they choose to apply simple and proven tools.
Business leaders across the Asia Pacific & Americas EffectiveCommunication.com.auserves constantly contact us with thanks for revealing the same simple and proven tools.
Now back to Jeff Bezos. The typical PowerPoint slide has forty words. It was nearly impossible to find forty words on ten slides of the Amazon presentation. Bezos told the story behind the new products in images and text.
The human brain processes information more effectively when information is presented in pictures and words instead of words alone. Neuroscientists have also found that when a slide (or advertisement) contains pictures and words, it’s best to have the picture on the left side of the page or slide and words on the right. This is exactly what Bezos did with the majority of his slides.
For example, Bezos introduced the new Kindle Fire HD with a series of slides that just showed images of the products features and services (movies, games, photos). He also played a new video ad (most people don’t use enough multimedia in their presentations. Video clips are engaging and memorable. Just keep them short!!!). On the final slide where Bezos revealed the price, he included a picture of the device on the left and words on the right:
Earlier in the presentation, Bezos unveiled the Kindle Paperwhite, an e-reader with a higher resolution display and patented built-in light. Bezos said, "the battery lasts 8 weeks". Unfortunately, most presenters would have added '8 weeks battery life' to a long list of bullet points/features on one slide. Instead Bezos showed a picture of a calendar with the months September to October highlighted as a visual. That’s memorable!!!
Audiences will recall the text "8 weeks battery life" easier because it was connected with the image of the calendar.
Again, a little text and a lot of pictures speaks more than visual aids full of only text.
Maybe you are thinking - it works for Bezos because he’s revealing products that people can see and touch. Not correct… This proven technique works during any presentation, even for the most complex ideas.
In no way are we advocating that you ditch PowerPoint. Instead we recommend you ditch PowerPoint as most people know and use it - dull, wordy, and overloaded with bullet points.
Image rich presentations work effectively because pictures appeal to the right hemisphere of the brain, the emotional side.
You can have great ideas backed up by data and logic, but if you don’t connect with people emotionally with the use of appropriate visual aids, your ideas won’t matter!!!
All the best with your future presentations.
For more than ten (10) years EffectiveCommunication.com.au has trained thousands of business people with the same proven communication & presentation tools many global business leaders effectively use. Famous leaders such as Facebook founder Mark Zuckerberg, Yahoo CEO Marissa Mayer and Microsoft CEO Steve Ballmer.
Light on text and heavy on images works for any leader, in any industry. And no, the leaders noted above did not invent effective communication & presentation styles. Instead, they choose to apply simple and proven tools.
Business leaders across the Asia Pacific & Americas EffectiveCommunication.com.auserves constantly contact us with thanks for revealing the same simple and proven tools.
Now back to Jeff Bezos. The typical PowerPoint slide has forty words. It was nearly impossible to find forty words on ten slides of the Amazon presentation. Bezos told the story behind the new products in images and text.
The human brain processes information more effectively when information is presented in pictures and words instead of words alone. Neuroscientists have also found that when a slide (or advertisement) contains pictures and words, it’s best to have the picture on the left side of the page or slide and words on the right. This is exactly what Bezos did with the majority of his slides.
For example, Bezos introduced the new Kindle Fire HD with a series of slides that just showed images of the products features and services (movies, games, photos). He also played a new video ad (most people don’t use enough multimedia in their presentations. Video clips are engaging and memorable. Just keep them short!!!). On the final slide where Bezos revealed the price, he included a picture of the device on the left and words on the right:
Earlier in the presentation, Bezos unveiled the Kindle Paperwhite, an e-reader with a higher resolution display and patented built-in light. Bezos said, "the battery lasts 8 weeks". Unfortunately, most presenters would have added '8 weeks battery life' to a long list of bullet points/features on one slide. Instead Bezos showed a picture of a calendar with the months September to October highlighted as a visual. That’s memorable!!!
Audiences will recall the text "8 weeks battery life" easier because it was connected with the image of the calendar.
Again, a little text and a lot of pictures speaks more than visual aids full of only text.
Maybe you are thinking - it works for Bezos because he’s revealing products that people can see and touch. Not correct… This proven technique works during any presentation, even for the most complex ideas.
In no way are we advocating that you ditch PowerPoint. Instead we recommend you ditch PowerPoint as most people know and use it - dull, wordy, and overloaded with bullet points.
Image rich presentations work effectively because pictures appeal to the right hemisphere of the brain, the emotional side.
You can have great ideas backed up by data and logic, but if you don’t connect with people emotionally with the use of appropriate visual aids, your ideas won’t matter!!!
All the best with your future presentations.
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by effectivecommunication.com.au
Monday, August 6, 2012
COMMUNICATE PAST THE GATE KEEPER
Wouldn't it be great if when we called a business person, we would actually get him/her on the other end of the line?
The reality is that nine times out of ten, we end up talking to the person's voice mail or the administrative assistant. Decision-makers are busy and want their phone systems and administrative people to run interference for them.
Getting past these "gatekeepers" can be tough. Whether talking to voice mail or to the assistant, your challenge is to make yourself important enough to gain access or receive consideration. The following tips should help you to open the gates:
First and foremost, make the gatekeepers your ally. Show them respect. Be overtly friendly and sincere. Be natural and warm as a way to distinguish your self from the many other callers hoping to gain connection with the decision-maker.
Consider the gatekeepers as essential to your knowledge base, not as your enemy. They can help you learn more about key executives, divisions or the company's initiatives. Do everything you can to engage them in conversation so that you can ultimately ask them some questions.
Never try to pretend you are an old friend or family member of the decision-maker because deceptive practices rarely work. If the administrative assistant says the executive is tied up and offers you voice mail, always ask when you might get ten minutes of the executive's time. Typically, this statement will prompt a conversation about why you are calling. If you have done your homework on the company and have identified some of their problems, you should be able to gain consideration with a strong value proposition. You should also be able to ask the person additional questions about your perceptions. The more you know, the more you can fine-tune your communication and sales approach, but be cautious of making people feel like you are interrogating them.
If the administrative assistant still refers you to voice mail, be polite and thank the person.
If this is a repeat call to the executive and the assistant again suggests voice mail, tell the person that you are interested in sending some information to solve a specific / common business challenge. When possible, share a quick testimony of how a similar company benefited by using your business product(s) and service(s).
A simple template to share a quick testimony is:
INCIDENT: What was the specific challenge similar company experienced
POINT: What was the key benefit / outcome having engaged your business product(s) and service(s)
Then, ask a few more questions about the organization. You might also ask if it is possible to have the executive's e-mail address. If the assistant says to send information to his/ her attention, pay close attention to how the company's e-mail system is structured. You may be able to decipher the executive's address from the information the assistant has given you
RELEVANCE: How is your key benefit / outcome relevant to the decision maker you ate trying to connect with
If you are returning a call, be sure to state it. The gatekeeper could give your message priority.
If the gatekeeper does give you valuable information, consider sending the person a small token of your gratitude. If you do so, the next time you call, you may get even more consideration.
If you get the executive's e-mail address and send the person information, ask for verification that it has been received. Place a call to the person as soon as you see the message has been received.
Decision-makers are often at their desks by 8.00 a.m. and rarely leave before 6:00 p.m. so that is a good time for the executive to answer his/her own phone. The lunch hour is another possibility.
Continually, fine-tune your elevator pitch and practice it out loud so that when you do leave a voice mail, it is listener-focused. Also, make sure your message is very concise, under 60 seconds. People rarely listen all the way to the end of a long message. Remember to say your name, company name and phone number both at the beginning and end of the message. Pause for a second or two between each statement so that your enunciation is clear. Make it easy for the person to call you back. Be sure you come across as a strong communicator with a positive, upbeat voice.
Listen very carefully to the voice on the other end of the line before you leave your voice message. Try to get a sense of the person's communication style and emulate it.
Strive to make a positive impression with whomever you communicate with, even if it is a machine.
Gatekeepers can either be your friend or your enemy. If they see you as just another annoying salesperson, you will stand little chance of getting the decision maker to take your call. If they like you and see you as a nice person, they will give you consideration.
Everything depends on your communication approach!
All the best with your future communication and presentations.
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