In a recessionary environment, sales and marketing managers should prepare themselves for lengthened sales cycles and decreased pipeline velocity. Tried and true tactics that have always worked — e.g. month-end discounting, bundling and promotions — will begin to sound increasingly desperate as sales reps struggle to make the quotas that were set months ago in the budgeting process. Customers — those in a buying mood — will buy on their own terms, and it is increasingly unlikely that they will be “sold to.” Therefore, price erosion will take hold as vendors struggle to adapt the new competitive conditions.

With reduced headcount and frozen budgets, organizations may be tempted to put technology and capabilities investments on hold. However, now is the time to act; below are some low- or no-cost actions organizations can immediately take to retain a competitive edge though tough times…

1. Get marketing and sales aligned through the establishment of unified goals, common metrics and aligned compensation plans. All too often, objectives and metrics are departmentally aligned. If marketing is incentivized to do one thing (such as increase quantity of leads) and sales something entirely different (focus on highest value leads), the organization is ultimately going to get what it pays for — i.e., disharmony and angst. In this tough environment, sales and marketing leadership needs to agree on a common set of organizational objectives (e.g. revenue, profit, market share, cross-selling, etc.). More specifically, sales and marketing leaders need to create and agree upon a cross-departmental definition of what constitutes a “lead.”

2. Profile both successes and failures. In a November survey conducted by the Aberdeen Group, respondents recognized a top (51 percent) strategic action as the ability to identify high-value prospects by analyzing and segmenting the characteristics of desirable customers. If the organization is not already doing so, it should immediately create processes to identify and focus resources on the most promising leads based on the newly aligned goals and objectives.

3. Go collaborative. Next, the organization should establish an iterative feedback loop between departments to continually refine the lead definition and prospect profiles. This includes putting mechanisms into place for team members to provide feedback and rate the quality leads and campaigns based on the organizational objectives and the lead definition outlined above. In the same November study referenced earlier, more than a quarter (26 percent) of the respondents had already implemented internal social media capabilities (such as a wiki) to facilitate this type of knowledge sharing. Whatever the mechanism, employees should be encouraged and incentivized to share best practices, tips and success stories. Creating an alignment and a knowledge-sharing culture will teach the organization to repeat successes and avoid mistakes of the past.

Aberdeen is currently conducting its annual State of the Market survey of key business challenges, competitive threats and technology trends for 2009. Click Here to participate.

bookmark to:

Viral marketing, a colloquial name given to a subset of social media marketing, is growing like a wild weed. Traditional marketing giants like Unilever and Comcast, to name a few, are increasingly active in using the SMM tools to promote their brands and interact with consumers.

One has to wonder: is it just a flu or has the virus spread so deep as to become a reality?

I firmly believe we are on the way to a pandemic, and SMM will rule modern marketing. Yes, we are infected (in a good way) and there is no vaccination. However, I still feel the virus is just showing its symptoms, and a few things need to happen before it settles in and becomes reality. Let me give you the reasons why I believe we will get irremediably sick, why that is a very good thing, and what I think will have to happen for us to get there.

There are plenty of reasons to explain why SMM will be huge. I know everyone has favorites, so I will dare to give you mine…

Word of Mouth: Every marketer’s dream (especially traditional marketers) is for their product, brand or campaign to generate WOM. It is one of marketing’s basic rules for success. The best way to get the message through effectively is by having people recommend it to one another. The problem has always been the cost of generating high volume WOM. With the internet, this problem is pretty much solved. One example of this is bloggers, who have become a trustworthy source for information. If you get a big blogger to talk about your product, the impact this may have on sales can be greater than a regular TV campaign.

Targeting: So far I have not seen a more effective targeting tool than the internet. Advertisers are confident their message is reaching relevant audience, which makes each hit more efficient in delivering a message.

Engagement: With the possibility of better interaction with the audience, marketers now have the obligation to change the way they approach their target market. New marketing has to be engaging for the audience to stick with it. And by engaging, I mean it has to add value to the consumer either by being funny, instructive, informative, or whatever it is that makes it worth the audience’s time.

Cost: Please bear in mind that by cost I don’t mean cheap. However, SMM is not exclusively for deep-pocketed advertisers. SMM can be ideal for any kind of budget. Advertising is now within reach of everyone, and for the first time quality will be what differentiates good marketing from average marketing.

It would look like infection is imminent. However, I think some things need to be accomplished for SMM to settle in as one of the most important trends in marketing:

Involve Traditional Marketing: For SSM to become big, it is imperative that the big brands get involved with it, understand the benefits of using it, and help to further develop it. SMM has been making big efforts to differentiate itself from traditional marketing, but I fear this has also led to traditional marketers not understanding this new language and therefore not engaging with it.

Metrics: The SMM community needs to agree on the way impact is measured. Just as traditional media’s metrics are standard (GRP’s, SOV, TRP’s, etc.), Social Media needs standard ways to measure the impact of different campaigns. We need to be able to tell advertisers how their money is doing, and they need to be able to compare these results both against what their competitors are doing, and against what other agencies offer.

Academia: It is important for this new trend to start teaching and researching; to unify concepts, debate them, and generate new ones. Social Media Marketing can no longer be an empiric subject, and we need to make sure we get it into universities and colleges.

bookmark to:

Community and collaboration are wonderful things.

Fourteen great minds on social media have shared thoughts on what 2009 may have in store for us.  Here’s some of what a few of them are thinking:

• “Although it is now cheaper to launch an initiative leveraging Web 2.0 technology - it requires qualified and passionate people to make them successful.” - David Armano
• “Intimacy touches emotion; emotion powers conversation.” - Pete Blackshaw
• The tipping point has not only *not* been reached, but could still tilt *away* from Social Media.” - Todd Defren
• “Dwindling budgets suddenly make low-cost social media look like the pretty girl at the ball.” - Ann Handley
• “Companies that focus on earning love will thrive during hard times, and kick ass when good times return.” - Andy Sernovitz

Everyone’s thoughts have been assembled in a free PDF download. Or you can read the entire report within the original post.  Also, these predictions are now posted on Slinkset, where you can vote on your favorites and submit your own.

bookmark to:

With the number of online retail sales expected to grow to a whopping $271.6 billion by the year 2011, companies simply can’t afford to fall out of favor with their Web shoppers. Here’s what businesses need to bear in mind as they strive to keep their customers happy during the holiday crunch:

Manage your inventory. “Adequate inventory is something e-tailers can have difficulties with if they experience a spike in demand,” warned Michelle Warren, a senior research analyst with Info-Tech Research Group.

Keep tabs on your technology. Unanticipated spikes in online traffic can send an e-tailer’s servers crashing — and Web shoppers running elsewhere. For this reason, Warren advised to “consider working with your solution provider to ensure that you have the right amount of technology in place.”

Reach out to consumers. With an increasing number of retailers taking their wares to the Web, companies must reach out to consumers as the holiday season approaches. Marketing initiatives from email blasts to direct-mail campaigns remind shoppers of a company’s online presence and can help drive traffic to a Web site.

Enhance customer support. With more online transactions taking place, more questions and concerns from consumers are likely to arise. E-tailers can prepare themselves by bolstering their customer-support channels. A seasonally-augmented contact center for example, can ensure customers’ queries are addressed within a reasonable amount of time.

Hold off on experimenting. If there’s one thing experts can’t seem to agree on, it’s whether or not companies should introduce brand-new CRM capabilities during the holiday rush. “That’s a big debate,” Warren said. “There’s a whole line of thinking that Christmas is the ideal time to test out new technology, but there’s another line of thought that says test it out when it’s not so busy.” Warren recommended companies err on the side of caution and hold off on deploying that new “live chat” feature, for example, until customer demands have tapered off. If, however, the temptation is too hard to resist, be sure to thoroughly investigate the difficulties that can arise.

Prepare for returns. Christmas festivities are only the beginning of the holiday crunch for today’s e-tailers. After all those orders have been placed and packages shipped, e-tailers should be prepared for a steady flow of product returns.

With the right precautionary measures and technologies in place, e-tailers can secure a permanent spot on Web shoppers’ “nice” — rather than “naughty” — lists.

bookmark to:

Instead of scaring you with the harsh reality of the economy, I would much rather give you hope and advice on how to tackle it head on! The solution I’m proposing is “personal branding,” which is the process by which we market ourselves to others.

As a Mashable reader and social media connoisseur, realize that the difference between the branding of the past, and that of the present, is that social media has handed you the keys and a microphone to your future success. What I mean is that you are empowered, and are given the opportunity to let your voice be heard, at the cost of your time. OK, now for the tips…

1. Become an invaluable asset to your colleagues, professional network & clients -  The first people who get laid off are the ones that are not needed for business to be conducted. If the business depends on your services and expertise, then you will, more than likely, remain in your current position, despite the economic climate.

2. Position yourself as the go-to-person for a specific skill - When it comes to branding, you want to own a word or phrase in the minds of others. It’s also beneficial to be someone that gets called upon when a specific need arises.

3. Gain self-confidence and rise to the occasion - The worst thing you can do during a recession is lose faith, be uncertain and show it emotionally on the outside. An individual’s success or failure lies in their mental state. Those who are confident in their own abilities, skills, internal network and the future, will survive and thrive during a period of economic struggle.

4. Focus on social equity, not just monetary equity - On the web, social equity is viewable through the amount of content you produce on your blog, or the amount of engagement you have on social networks. Over time, this equity begins to become a valuable asset to your career.

5. Build contact lists before you need them - I’m sure you’ve heard the phrase, “build a network before you need it.” Well, today I’m offering you a social media strategy if you ever need to recover from being laid off. If you create a blog, join social networks, create a database of your network and possibly start an email newsletter; you are in effect establishing lists.

I speak with a lot of people who get jobs by notifying these “lists” that they just got laid off and are interested in a specific position. The key here is to build these lists out (RSS subscribers, Twitter followers, Facebook friends) before you need them. Then, you have a whole pool of people that can help you out. All it takes is one person from that list to get you back in the game!

6. Go on a branding spree by advertising it everywhere - Your brand needs to be where people are searching, especially where your unique audience is searching.

7. Make your brand so visible that people can’t avoid seeing you - You need to not only advertise your brand on social networks, but comment on blogs, join forums and Facebook pages, as well as write articles for other blogs. If you aren’t already famous, then use the same avatar on all your social networking sites and keep your bio consistent, to the point and with links to your other sites. Make your name and face travel and see some great results.

8. Become so remarkable that complete strangers talk about you - If you have a loud enough voice and take a stand on a topic, you can be a brand that is spoken about by people you may not even know. These individuals might actually be able to pull you into a new opportunity at some point.

9. Be a content producer, not just a consumer - It’s really easy to brand yourself an innocent observer. The problem is that consumers aren’t sharing any value with the world, while producers are building value in themselves and getting their ideas noticed.

10. Have an “endorsement mindset” - Last but not least, and possibly one of the most important things to keep in mind, is the power of positive endorsements. Collect endorsements throughout your life like you would collect baseball cards. You are the chief marketing officer for the brand called you, but what others say about your brand is more impactful than what you say about yourself.

bookmark to:

I’ve seen so many posts about how to fight the negative impacts of a recession on  business success that it’s making me crazy. Why is it that people wait until it’s announced that we’re finally in a recession before they start doing what they could’ve been doing all along?

Customer-focused lead nurturing is one of the best ways to prevent experiencing an adverse impact to customer acquisition during a recession.

Here are a few meaty reasons why lead nurturing is a recession buster…

• You’re already growing a relationship with people who’ve given you their permission to contact them with relevant content.

1. This means you can reach out with proactive dialogue to both learn about what’s keeping them up at night due to this economic shift and then ease their concerns by helping them make the best choices during risky times.
2. You can create marketing content to address these concerns and give them helpful ideas for riding out the storm so they’re in a better position when the winds change.

• Providing continuity of experience during tough times raises your viability as a long-term partner choice.

1. Whatever you do, don’t stop now. If you cut and run to save budget you’re not only wasting leads, but you’re showing them you’ll jump ship when the going gets tough.
2. Do NOT start panicking and use hard-sell tactics. Stick to your story. Your confidence and stability during a downturn does a lot for your company’s reputation, not to mention showing people they can trust you to stay focused on what’s best for them.

If your leads were interested in your product offerings before the recession, they probably need you now, more than ever. Keep in mind that they’ll buy eventually and your goal is to have them buy from your company. Don’t be pushy, be helpful. Prove to your leads that you’re the trusted advisor they’ve been looking for.

If nothing else, a recession gives you the perfect venue for proving you’re focused on them. Nurturing an audience you already have is much more lucrative than flailing about for short-term sales.

In fact, if you go to the trouble to find out how the economy is conflicting with their decision to buy, you’ve got the opportunity to show them the pros and cons of putting off a decision that can deliver a business value they can’t afford to put off.

Lead nurturing belongs in your marketing strategy mix—recession or not.

bookmark to:

A frighteningly long list of retail closures came across the transom during the last few days, and while I haven’t yet fact-checked every point (stay tuned for links, chronology, etc.), I quickly found enough supporting material to merit republishing and amending the list.

The sheer breadth of the damage here is breathtaking. The bloodbath crosses every kind of retail sector, and is clearly not just a reflection of the tough times we’re in, but a harbinger of worse times to come.

Every closed retail location may represent eventual savings for the company involved (after shouldering the actual costs of the close itself, that is), but also represents dozens or even hundreds of out-of-work employees (who are, after all, someone else’s customers), reductions up the supply chain, and rent and taxes removed from that store’s local economy.

In other words, this is bad news with ripple effects that will be felt for months and years to come. (For starters? According to one report, “Consumers will lose $100 million this year on worthless gift cards, from restaurants and stores that have gone belly up.”)

Things don’t look like they’re going to be getting better any time soon given the following news reported in an AP article today…

Consumers nationwide are reeling from job losses, tanking investment portfolios and sinking home values. They are expected to hunker down further in the coming months, making it likely the economy will continue to shrink through the rest of this year and into 2009, more than fulfilling a classic definition of a recession: two straight quarters of economic contraction.”

The Commerce Department’s updated reading on the economy’s performance showed gross domestic product shrank at a 0.5 percent annual rate in the July-September quarter, weaker than the 0.3 percent rate of decline first estimated a month ago, and the worst showing since the third quarter of 2001.

One has to wonder how online shopping will impact all of this. Maybe the retailers with a strong online selling model will be hurt less then those without one. For the detailed list of planned retail store closures, click here.

bookmark to:

A world-class marketing database is an environment that has the ability to change and adapt in lock-step with your corporation’s changes while also enabling you to learn from the data within itself. This allows for better marketing decision-making capabilities which, in turn, will inform you on how to adjust your database.

A world-class marketing database is not just software; rather, it is a dynamic, living organism comprised of marketing database strategist(s), architect(s), and developers who are constantly in-touch with the direction of your corporation’s marketing efforts, sales initiatives and goals.

Here’s the truth: There is no turnkey, world-class database that will handle any and all of your marketing needs and will maximize the ROI of all “your” marketing efforts. That said, the name of the game IS maximization of profit, not just increased response. In order to achieve that, a customized marketing database that can grow, change and adapt to your business’ needs is crucial.

Your company’s mission, vision, product line, sales channels, current and future customer base will drive your database. If you find yourself saying “But all of those aspects change over time,” then you’re on the right track. Those things DO change, which is why your database needs to be able to change and grow, not stagnate in times gone by while holding you back like an anchor.

The road to any world-class database starts with a simple definition of your marketing needs and goals, both short and long term. From that definition a discovery phase should take place to survey the land. Something as simple as a SWOT data analysis of your current marketing efforts will help uncover gaps in your existing strategies. A side-by-side comparison of your marketing strategies can help you identify overlap in these efforts as well. If you have the budget for hiring a consultant to help identify existing data stores in your organization outside of the marketing arena, this can also help to save both time and money.

The fact of the matter is that your company will spend as much (and likely more) time and money on trying to fit your data into a one-size-fits-all database as you would building a database that is designed to fit your specific and unique marketing needs. The short version of the story is that while your cost in developing a database solution will go down, your cost in support, license upgrades, and report development will likely go up.

Some developers believe the solution is a turnkey, one-size-fits-all CRM database utilizing simple querying and point-and-click campaign creation. Sales people often champion the “standard” methodology that their database team uses to store and track marketing initiatives and responses.

Both are wrong.

A world-class marketing database is simply a database that meets all of your marketing needs, whatever those needs may be.

bookmark to:

“CanDoGo is packed full of timely “how to” sales, personal development and motivational advice that answers your questions to help you overcome immediate business challenges. With a true expert community you will set yourself apart every day with CanDoGo at your fingertips. Get concise CanDoGo Insights in video, audio and text formats!”

With categories such as Marketing, Sales Basic, Prospecting, Qualifying, Customer Service and many more, this site is obviously targeted to people who have direct contact with prospects during the pre-sales process and who assist existing customers with service and support processes.

bookmark to:

According to B2B Marketing Trends 2010, a report by the Institute for the Study of Business Markets, the #1 trend getting the attention of B2B marketers is:

Develop approaches and methods to better understand what CUSTOMERS REALLY NEED, beyond what they can say or articulate. Opportunities to CREATE REAL VALUE.”

Here are a few points to consider when sussing out the needs of your customers…

• It’s not your product, it’s the outcome they get by using it.
• The words and phrases you use when you talk about your products, and what they do, are likely not the words and phrases your customers use.
• Issues you think are simple to solve—because you know how your products work—is probably overwhelming to your potential customers. Otherwise they’d have solved those issues already.
• Your customers don’t have time to think strategically - they’re running too fast with all their daily ToDo lists. Helping them learn how to think about solving their issues is a critical skill marketers need to hone.
• There’s a fine line between jargon and helpful, easy-to-understand terminology—which are you using?
• Your customers are smarter than you think. They can smell self-serving sales hype a mile away. Are you focused on helping or hyping?
• People digest things in chunks, not all at once, so give them a little at a time and build the concept within a context that makes sense to them.

In order to align your thinking with your customers’ needs you need to get to know them. And know them well. Guessing won’t cut it. Extrapolating what you think onto them will fall on deaf ears. This is why changing the way you think about your customers requires that you change the way you think about marketing.

Marketing must be reformed into a conversation that has more pull than push. However you market, you need to involve your potential customers. Not just by getting them to click on a link in an email, but by monitoring and reacting to their responses in ways that generate ongoing dialogue about things they’re interested in today. Things they may be interested in next month are too far off their radar, run off by other high priorities that come first.

Marketing Automation systems can help. In fact, I’d stipulate they’re critical to helping marketers develop the intelligence they need to learn about their prospect’s and customer’s interests. As well as in assisting you to establish an ongoing dialogue.

bookmark to: