Showing posts with label OPE Dealer. Show all posts
Showing posts with label OPE Dealer. Show all posts

Monday, April 14, 2014

No. 4 April 2014

We have all been told that if we would only collect more data about our business or our customers or our industry, we would be so much smarter, our marketing would magically become more successful and we would see instant results in revenue growth and satisfied customers.  If you believe that, then you and I need to talk about a bridge I’m selling. 

Jake Sorofman, in a recent HBR.org Blog, states that “Data, alone, isn’t what makes marketing move the needle for business.”  But he does believe that while “data can play a leading role in developing strategy and bringing precision to execution, it does nothing, absolutely nothing – to stir motivation and create the desire that makes cash registers ring.  Data is important, but it is content that makes an emotional connection (with a customer.)  Marketing leaders must remember that true brand intelligence lives at the intersection of head and heart, where the emotional self meets the analytical self.”

Sorofman lists “four strategic leverage points that allow marketers to deliver the right offers and experiences to the right customer at the right time while optimizing engagement and conversion rates.”  The first leverage point is “observing customer behavior to gain new insights.”  The second is “engagement, where you make impersonal brand messages more humanized, resulting in greater customer acceptance.”  The third leverage point is “inspiration, where moments of human insight and perception are captured, indexed, and harvested for strategic advantage.”  And the fourth is “automation, where speed and precision are used to target offers and experiences across channels for continuous optimization based on measured effectiveness.”

If you are so focused on your data that you misjudge or overlook the emotional connection you must make with your customers with your content and message, your marketing efforts will never be fully successful.

We’ve all heard the description used sometimes to describe a person that states, “He or She is a class act!”  Harvey Mackay says that “Class is hard to define, but easy to recognize.  Similarly, the absence of class is easy to detect – and a serious flaw for anyone who aspires to be successful.”

Mackay continues by saying “class is not an ‘act.’  It’s a deep-seated way of life for those who possess it.  Having class involves good manners, politeness, and pride without showboating, empathy, humility, and an abundance of self-control.  The actions of class-act people speak louder than their words.  You can see it in their body language and the way they carry themselves.  Class always shows without being announced.”

“People can tell if you have class by the way you interact with others.  If you have class, you don’t need much of anything else to be a winner.  If you don’t have it, no matter what you do, it won’t make up the difference.  Money, notoriety or success by themselves won’t give you class.  Class comes from within, not from external sources.”

Jack Canfield, in his book The Success Principles, lists some reasons why being a class act helps you succeed.  He writes, “People want to do business with you or become involved in your sphere of influence.  They perceive you as successful and someone who can expand their possibilities.  They trust you to act with responsibility, integrity and aplomb.  Class acts tend to attract people who are at the top of their game.”

So look closely at your network of friends, co-workers, customers and so on.  Are they class acts?  Whether you realize it or not, they are a reflection of you.

Harvey Mackay says “the good news is that if you don’t like what you see, you can change.  Make a decision to recreate yourself as a class act and see what kind of people you start attracting.  Do fewer things, but do them better.  Change your behavior for the better.  Raise the quality of your attitude.  When you have a higher level of personal standards, you get better treatment from everyone around you.  Once you’re a class act, you can say a lot without ever uttering a word.”

Monday, February 3, 2014

No. 2 February 2014

A dealer, who wishes to remain anonymous, recently sent me an email asking if a lot of dealers who are “aging out” of actively running their businesses look to “angels” to buy them out or do they just close up and sell off their assets, especially when one of their kids does not want to take over and continue the business.  He tells me he is the sole family survivor of a family lawnmower shop that went out of business primarily due to a major catastrophic act of nature, and he chose not to rebuild and reopen.  Now he’s not sure that was the right step for him to take.   He’s been talking to local and regional dealers in his area, and he says they are all asking him to buy them out.  Even the owners of the largest dealership in his area are “aging out” and their son, for whom they kept the business running and successful, has opted out of taking over, leaving his parents hoping they’ll find an “angel” to buy the business or be faced with selling their assets for what they can get.

In the early 1970’s, when I first joined this family-owned distributorship, I noticed right away that our dealer customers were “old” - appeared to be near retirement age.  Now my perspective was certainly influenced by the fact that I was in my mid-20’s, but nevertheless, I worried that our customer base was going to die-off in just a few years.  Many of those older dealer owners did retire, just like older business people do, and sold off their business assets to a multiplicity of other dealers or in a few cases, had a relative take over management.  “Angels” were very few and far between.  But new service dealers kept appearing, often “popping up” close to new concentrations of residential areas.  They saw a future and took a chance, often borrowing the start-up money from a bank rather than hoping for an “angel” backer.  When they were willing to go to the bank because they believed in themselves that much, I was motivated to help them succeed.

For a long time, I’ve thought that successful dealerships, especially those run by owners who had been re-investing in them for many years, were perfect for their kids to take over.  The investment in assets over the years meant that the son or daughter had a solid foundation that didn’t require a huge initial investment and could be paid for over time.  The business real estate might need sprucing up, but the inventory was typically paid for, as was the building and equipment.  The kids had a head-start, in many ways.

If the kids choose to do other things, then the owners have to find another successful dealer who was interested in a branch location, or an entrepreneur who wanted a successful business to buy, not someone else’s failure.  Otherwise, assets could be sold piecemeal to different businesses and owners.

Dealerships come and go, just like any other business.  I’ve read numerous articles on what makes one dealership successful and another one not.  Bob Clements can and will tell you in a day’s seminar how to be successful in an OPE sales and service operation.  The information is out there for the asking.  But at the end of the day, it still comes down to internal drive, planning and a desire to want to be successful.  It’s a challenge you can win, but no one ever said it would be easy.  What would you tell this sole survivor of a business that was washed away in a flood and who isn’t sure of what the right path is for him to take?  I would be very interested in your thoughts.  Please share them by dropping me an email.

"Bad habits are like a comfortable bed,” a pundit once noted, "easy to get into, but hard to get out of." Sticking with what's comfortable might be one of the deadliest habits of all.

In the bullfighting arena, expert matadors have long gained an edge by pinpointing a bull's comfort zone. Former Hewlett-Packard CEO Carly Fiorina has studied this phenomenon. "In bullfighting there is a term called querencia. The querencia is the spot in the ring to which the bull returns," she explains. "Each bull has a different querencia, but as the bullfight continues, and the animal becomes more threatened, it returns more and more often to his spot. As he returns to his querencia, he becomes more predictable."

What are the consequences of predictability? "In the end," Fiorina says, "the matador is able to kill the bull because instead of trying something new, the bull returns to what is familiar (i.e. his comfort zone)."

Many businesses retreat to their comfort zones when challenged. A new form of competition emerges or threatening research undercuts a core product. This is bad news, and who wants to hear that?  "Bad news isn't wine," former Secretary of State Colin Powell once said. "It doesn't improve with age."  The key is how you take the bad news and what you do about it.  Just be sure you don’t keep doing the same thing over and over while expecting new and better results.