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Monday, March 17, 2008

Canvassing works, but . . . (2)

Contractortalk.com poster "Vinylguy" appears to be associated with American Dream Vinyl Company in Central Pennsylvania. This company's outbound canavassing system is combined with an effective website -- useful both for recruiting canvassers and reinforcing the company's credibility in the selling process.

This current thread, Canvassing Does Work, on contractortalk.com reinforces the potential and immediate lead-generating power of door-to-door canvassing. Tbe powerful, immediate impact of hard-rock, in-your-face marketing is hard to deny and I suppose is undoubtedly a better way to go if your business is struggling than conventional advertising, leads services, or waiting for your phone to ring.

However, someone else posted in a separate thread: "Does anyone know how to obtain a do not call list. Also, I have trouble motivating my telemarketers and canvassers, anyone have any advice?" Susan Betz, of Fences of Distinction in Ocala, Florida, responded:

I dunno about motivation. I hate cold-calling. I think most people find it one of the most depressing, soul-less ways to sell. I understand the statistics of it, but it's still not the way I like to do things.

I agree -- both with the thread-starter who urged businesses to consider canvassing, and Susan. The challenge is to find the right balance between assertive and permission-oriented marketing and the answer, for most of us, is an effective system of client referral/qualification with outbound selling and marketing initiatives that are respectful of the people to whom we are trying to reach. The balance depends on what we are selling, and our objectives.

If your product/service has a wide consumer-market range, and you play the numbers game, cold calling and canvassing of course are effective. But this seems a really dumb way to go if you need to reach/serve a much more modest group of powerful decision-makers and influencers, especially in the business and government sectors. Blasting through lists with a canned presentation is hardly the way you are going to win multi-million dollar commercial contracts.

As an example of this balancing differentiation, consider the process of marketing canvassing consulting services. Are these best sold by cold calling, or by references on internet forums like contractortalk.com or , for that matter, this blog?

Or, as another example, consider Destination Clubs, the recurring vacation offshoot of the timeshare. My wife signed up for the High Country Club because of communications on this Internet Forum; she also used the forum to find the rental car company, and we received consistent advice on how to avoid the pushy timeshare salespeople in their special room (through which you must pass) at the Puerto Vallarta airport. In our household, at least, door-knocking canvassers, telemarketers, and virtually any form of 'in your face' marketing will have the exactly opposite effect desired -- we'll close our minds to doing business with you if you try it with us. (And yet, I receive surprisingly few really valid and thoughtful inbound sales calls; ones where the person with a product or service truly relevant to me actually takes some time to know/understand my business before making the inbound call; to which I will listen with courtesy and respect.)

Yes, canvassing works, but I urge you to consider the overall framework and attitude of your business in setting up this kind of (literally) in-your-face outbound system. I tend to share Susan Betz's attitude -- It's simply not the way I like to do things.

Friday, March 14, 2008

Returning home

Our High Country Club villa at Punta Mita. I hope to visit the HCC head offices in Denver, CO, when there for the SMPS Build Business Convention in August.

Our flight home (via Mexico City and New York) departs at 6:30 a.m.; so we have to be up very early to drive to the airport and check in. We'll overnight (Saturday) in New York before returning by plane to Montreal and train home mid afternoon on Sunday. As we journey, there likely won't be much time for blogging so the next entry will probably be on Monday morning.

Clearly, the tourism economy is doing good things for the construction business in this part of the world -- construction, in fact, is the second largest employer after tourism. Hotels, time shares and condos are sprouting up along the Pacific Ocean, ranging from the mass market timeshare stuff, to the exclusive Four Seasons Resort further up the cost near where we are in Punta Mita -- where work is under way for a private air strip for those with the money, and desire to avoid the masses.

I'd say the recessionary winds blowing in the U.S. haven't reached these shores yet. For a Canadian, prices of "tourist stuff" are as expected; restaurant meals can be overpriced, gas is a bit expensive. Food purchased at the large Mega supermarket about 10 minutes away from here is another matter -- we were shocked by how inexpensive everything is. Since our villa has a fully equipped (large) kitchen, and eating involves looking over the balcony to the Pacific Ocean breakers, we ended up eating at 'home' most of the time.

Are vacations healthy for the soul and spirit? Absolutely! I don't think I'm ready to do what the Gecko rental car company owner did, however. He had a successful road building business in Alberta, and sold it in the mid 1990s, and owned a property here. On 'retirement' he decided to move here permanently; and with children arriving on the scene late in life, he decided to start the rental car business. A second career, and not a bad one at that . . .

But in about 10 years, maybe I'll be ready to spend more time in warm and sunny places. In the meantime, we'll take a few vacations each year, and I'll continue connecting the dots about business and construction marketing.

Next trip -- on Tuesday, I fly to Thunder Bay as we prepare to launch Northern Ontario Construction News.

Marketing symbiosis

This Wikipedia image of relationship between Ocellaris clownfish that dwell among the tentacles of Ritteri sea anemones may seem distant this blog's theme, but if you delve more deeply into symbiosis, you will find perhaps the most valuable marketing insights for your business. Looking for business-related examples of symbiosis, I came across The Empty Whitecoat: Customer Innovation and Co-Creation Blog by Chris Lawyer.

As I rested on a hammock at Monterrey Beach Bungalows near Peurto Vallarta, I thought of the powerful importance of symbiosis in nature -- and marketing. Earlier in the day, our guide had taken us into the semi-jungle forest in a controlled nature walk where we were reminded of the amazing bio diversity and integration of different life forms. The tour with Vallarta Adventures promised a concluding experience at a secluded private beach where we could have lunch and rest before returning to our accommodations, and so we headed down a steep dirt road to this little resort, with just six suites, but with industrial catering facilities for hundreds.

We asked our guide about the ownership of this unusual and quaint location, and he tore off a one page marketing flyer from Monterrey Beach Bungalows. Turns out Vallarta Adventures and the resort have a rather intriguing relationship. Visitors to the bungalows can enjoy privacy, meal service, and seclusion at a truly reasonable cost -- subject to a two to three hour afternoon block when the trucks from Vallarta Adventures descend on the beach.

I didn't ask how much Vallarta Adventures pays for its use of the facility; I can imagine, enough to be helpful but not much overall -- becuase of course Monterrey Beach Bungalows receives a free marketing ride -- of the hundreds of people visiting the beach every day, a few undoubtedly express interest in the location, and you don't need many of that 'few' to decide to inquire more, and sign on for the rooms, meal service, and corporate or family retreat at prices far below conventional accommodations. No need to advertise widely, just a simple one page info sheet and a decent website. A symbiotic relationship, indeed.

In marketing, frankly, these mutually dependent and creative relationships are undoubtedly the most valuable and effective -- and your business success will likely depend on your ability to structure similar relationships. Done right, the great symbiotic relationships can last decades, and almost operate on auto-pilot; requiring virtually no management energy and seemingly so much in the background that you almost forget they are there (until you appreciate their business value for the participants.)

To be successful, a truly symbiotic relationship needs these qualities:
  • The businesses are distinctive and independent, but in some important respects provide something that the other needs; which, when fulfilled, serves your own needs.
  • The relationship is of ongoing continuous value; strong enough to withstand changing technology, ownership, and time. (The symbiosis is of such great value to both businesses that it effectively embeds within the respective operations of both businesses.)
  • The symbiosis is comfortable, but not a trap -- you don't want to get in a situation where you are dead in the water without it -- but equally, if both businesses stand much more to lose than to gain by ending the relationship, you don't need to worry that much about any traps.

In our own business, we enjoy certain symbiotic relationships that are essential to our sustainability and continued success; I am not going to dwell on them publicly here out of respect for the quality of the relationship and the association with our symbiotic colleagues. (I would ask permission ahead of time before publicizing these relationships, reflecting the symbiosis, but this blog is written on a much shorter deadline cycle.)

Of course, great organizations are built as well on the symbiosis between employees and the business -- If symbiotic needs are met in a truly satisfactory manner, then we've achieved balance, security, and respect -- and mutual success.

Thursday, March 13, 2008

Sonny Lykos

Sadly, last night as we prepared for a day excursion away from computer and Internet, I learned from Mark Parlee that Sonny Lykos has suffered a stroke following his heart bypass surgery and recovery will be long and difficult.
Sonny is the inspiration of most of the recent postings within this blog, expecially his emphasis on Brand Harmony, and interconnecting the entire client experience in the marketing process.
I hope Sonny is able to recover fully and am praying for his return to good health.

Wednesday, March 12, 2008

We: About client relationships




Do these images really belong together? Yes, in that the tourism and hospitality industries are the places where many of the client-centred marketing principals advocated by Steve Yastrow in his new book: We: The Ideal Customer Relationship are expressed -- though their practical applications are very real for the construction industry, both commercial and residential.

We headed out on a boat yesterday on a Vallatera Adventures visit to Las Caletas, a private island about 45 minutes from Peurto Vallarta after sighting some whales in the Pacific Ocean. The tour organizers appreciate their market and handle it with creativity -- for the (younger) couples out for escape, this is something of a booze cruise, with an unlimited open bar -- but the operators keep things well enough organized so that families with younger and school-age children (ours included) won't feel uncomfortable.

(I especially enjoyed overhearing the rather frank observations by the young tour leader who described how sometimes his job can be hell when clients expect perfection from him, but misbehave themselves -- especially since his salary is a fraction of the money that people blowing money on the tour earn each year.)

We found about the tour through -- yes, Gecko Rent A Car -- where Adam and Denis offered us a 15 per cent discount off the tour's list price and obviously earned some commissions in the process.

As I sat on the beachfront playing Brickbrat on my Blackberry (while Eric snorkeled and Vivian sunned herself) I thought about Steve Yastrow's book We: The Ideal Customer Relationship He sent a copy to me just before I headed on vacation. Yastrow and I engaged in a dialogue a few months ago when I reported on his earlier book Brand Harmony (thanks to Sonny Lykos's introduction).

I enjoyed Yastrow's latest book, again focusing on the basic fact that selling and branding is more about relationships than transactions; and these are unique, individual and thoughtful processes over time -- that lead to the ideal situation where client and business (or groups within clients and businesses) are engaged in co-oerative projects and relationships that transcend the immediate, and work for the mutual benefit of both groups.

In business, these relationships are the opposite of the zero sum game -- and require a whole lot of special qualities and skills that allow employees to work beyond scripts, processes, and formal procedures. Each client relationship, Yastrow proposes, needs to be individualized. Branding -- the overall quality of relationship between client and company -- is not the exclusive responsibility of the marketing department -- it is at root a cultural thing where both front line employees and senior executives create a holistic environment where clients feel welcome, engaged, involved and sense their individuality is respected.

(Does this describe Gecko Rent a Car? Yes. Did Vallarta Adventures get it right -- in a different sort of way?-- Yes. What would have happened if Gecko gave a referral to an organization that paid a higher commission but delivered terrible value? And what is the relationship between Gecko and Vallarta Adventures? We don't know, but I suspect it is healthy.)

Fair enough, such good business is indeed possible, and wherever you can make it happen, ideal. I sense a relationship of this sort is developing with Web Empowerment Solutions who are presently working on our website rebuild. We got things off to a good start when I met with Gilles Cote and Shawn Taylor to discuss the terms of engagement. Impressively, we struck a deal that gives WES some useful operating cash while reducing our current IT cash expenses, and they receive a solid and powerful boost for marketing within the construction industry. In putting the deal together we thought outside the box, with some creativity and effectiveness. So far, it looks like we are getting real value here and I hope to reciprocate as the months proceed.

The challenge with We relationships is that they are time-consuming, potentially expensive, and require an incredible spirit and openness with employees and clients. And here is the big challenge with the concept. While we are all individuals and have unique personalities, not everyone is built the same way -- and many of us (myself included) are really not that good at personal interactions and relationship building. Recruiting and selecting employees with the right qualities is a real challenge and if your organization is currently full of the 'wrong type' you will have an uphill battle in changing the culture and ways of behaving.

In his book, Yastrow suggests some approaches to work around these challenges, but I really think the big issue is whether you can work through all the layers of perception and behaviour in employees and expect them to think outside their silos and relate effectively if they are not hired carefully in the first place and the overall corporate organization and structure is right.

Even then, things don't always work out so well. Enterprise Rent A Car is cited as an example of a business which gets client relationships right, but I would not compare the somewhat tacky 'friendliness' I have received at Enterprise with the real relationship I felt at Gecko.
And in the hotel business, despite all the efforts at creating systems to engage employees and managers in client-centric behaviour, we still have incidents like I experienced at the Hilton Garden Inn at JFK Airport. The hotel and service were fine if unmemorable (okay, it is an Airport hotel), but I really didn't appreciate this email from the hotel:
Dear Valued Guest,
On behalf of the team at the Hilton Garden Inn Queens /JFK Airport THANK YOU FOR STAYING WITH US! Our goal is to ensure your stay was an excellent experience. You may be receiving an email shortly from Hilton Guest Services to survey your stay; it is our hope that you score us either a 9 or a 10 in Accommodations and Service categories. If we did not meet your expectations, please feel free to reply back with your feedback as we will review each comment with my staff to improve future stays. Once again, thank you for choosing the Hilton Garden Inn Queens / JFK Airport.
This note's explicit message is: Hey, they are going to send a survey to you and we want a great score, and please don't blow the survey by answering that "we" are less than perfect!
No! That is gaming the system, and that is the sort of thing that happens too often when organizations try to set up measurement tools and structures to create the We! environment. Ironically, the thank you would have worked a whole lot better simply not mentioning the survey -- and in any case, if I were the hotel manager, I would want -- in fact welcome -- less-than-perfect results as a feedback mechanism to improve my operations. (Oh well, the manager now must deal with the consequences of this blog! I'll be interested in his response.)

So, what can you do?
  • Read Yastrow's books. They are useful.
  • Take vacations. The best way to experience customer service/branding experiences is when you are on the road (or in the air) and experience the service/hospitality industry first hand. They are in the front lines of these crucial branding and relationship-building concepts.

  • Hire carefully and with sensitivity.
  • Let your employees be themselves and don't worry too much if they do their own thing -- in fact encourage individuality. You'll find they can connect with clients much more effectively and ideally, without forcing the issue, create the true We culture that Yastrow advocates.

Monday, March 10, 2008

The Four Point Program (2)

The contractor using the four point self discipline program says he learned it from Jeffrey Fox.

On February 23, I noticed an intriguing post on the Journal of Light Construction forum, and posted a reference to it here: The Four Point Program. I (as usual) also sent an email to the person who initiated the post, to learn more.

Here is the original email and response. It is as worthy as reading as the original post if you are looking for a simple, yet effective self-discipline strategy to manage your time and sales/marketing goals.

Could you elaborate how long you've been using the methodology and how effective it is?

Sorry I didn't get with you sooner. I just realized I had a message.

Regarding your question I've used this method since I first read the book Rain Maker (I can't take credit for developing this myself). Editor's note: I believe the book he is referring to is How to Become a Rainmaker by Jeffrey Fox. It turns what sometimes is an overwhelming day to day chore and makes a game out of it.

What's even better than making like a game is the fact that it works. I attribute that to a couple of things:

1) This system keeps consistency. I have a goal of four points four that day and I have to get it.

2) Points don't carry over so I have to start new every day. Just because I nailed two contract down and got 8 points doesn't mean I get to take a day off from marketing.

3) I give myself credit for the small things like getting a lead. If I'm running out of time and need the points I make it a point to ask people "who do you know that is looking to have any sort of remodeling work done?"

4) It encourages me to work people through the funnel. Again, if I'm needing the points and I have already got one point off this guy for getting the lead, then why not score two more by talking with the decision maker or three more for getting the appointment. Or better yet, let's follow up and nail down that deal with the couple we met with last week and get a contract. I use this system to also help me track where someone is located in the funnel.

Here's the really cool part about it. You don't have to use four points (four just happens to work fairly well for me). When business is slow and you need a shot in the arm, you may want to use six, seven or eight points. When you have more work than you know what to do with then you might be alright to drop it to two or three. Personally I like to just keep it at four because that keeps the consistency and prevents me from having roller coaster months where I'm slammed then nothing, then slammed, then nothing.

I hope this helps some, but again, I give all credit to Jeffery Fox and his book Rain Maker (a must read for any business professional).

I wish I could identify the original poster and provide a direct hyperlink to his website, but I don'thave that information yet -- our communication has been though the anonymous JLC Forum email system. But I can post a reference to the book he recommends, and hyperlink it (and yes, I think Amazon.com will send me a four per cent commission if you order the book through this link.

Chase's new blog

Chase, the director of client services for the Construction News and report Group of Companies, has started his own blog at http://chasemarketing.blog.com.

He checked with me in starting this blog though I'm sure some branding experts out there will question how companies should regulate/manage employee-operated blogs using the company's name and identity! As other employees set up their own blogs, are we going to have a mélange of discordant and confusing voices or (as I hope) a creative environment where ideas grow, share, and are adapted -- while respecting and encouraging the individual expression of each of the company's employees?

There's risk here, of course, which can possibly be mitigated by corporate style guides and blogging rules. (The danger of course is if you get too strict on these things, the blogs turn out totally bland, safe and boring.) But I think the offsetting advantage of increased client communication, respect, and freedom of expression among our staff makes the risk worthwhile. It will be interesting, of course; if Chase and I disagree on issues and strategies-- and that creates a new level of communication (in a highly public manner) as we work through our differences.

In any case, read on -- and notice the new hyperlink section for our employee operated blogs. Other employees may well decide to follow Chase's example. They certainly don't have to do this nor is it a priority. But subject to the common sense rules of good taste, legality, and appropriateness, I'll be happy to see these blogs and link them to my own blog home page.

Sunday, March 09, 2008

About Geckos and Dollars

I'd never associated the Gecko with rental cars, and didn't even know where Buscerias is -- so how did we end up doing business with Gecko Rent a Car? The answer provides some important marketing insights.

As we made our plans for the Punta de Mita visit, we needed to choose a rental car service as the place we are staying at is a little off the beaten track and a car is essential. My first instinct: Get the best price, go on the Internet and select a car from whichever Expedia came in at "lowest"; then cross check to see if there are any negative observations through a secondary search. Dollar Rental Car, one of the less widely known but still recognizable "brand names" came up -- so I booked on line.


Then Vivian forwarded me an email from correspondence she had with an Internet forum (which led her to choose the relationship/destination club we chose.). The other forum member, in a personal email, recommended we try Gecko Rent a Car in Buscerias.

Now, I've never heard of a rental car company named "Gecko", and had the foggiest idea of where Buscerias is, but I hoped they would have a solution to a problem we had with our vacation.

Outbound travel: No problem, we would pick up a car at Puerto Vallarta Airport in mid afternoon in the conventional manner. But return was proving to be another challenge. To get the best fare (in fact maybe the fare proved to be 'best' because of this problem), our flight departs at 7 am. Trouble is, the place we are staying at is a 30 minute drive from the airport, and to allow for international flight connections, this means we must be on the road at three a.m.

I've never been to Mexico before. I read scare stories about driving at night in Mexico, and we were perplexed about what to do. So, instead of dealing with some robotic call centre or "reservations agent" I typed an email to "Dear Gecko" and explained my concerns.

This is the response I received:

Hi Mark we do have a Jetta available for that time frame. The price after all insurances and taxes is 360usd Visa or Mastercard or 325 cash. We can work out your departure. We may have to send a man out there to drive you to the airport. If you want to book this vehicle please send your arrival time, name of airline, flight number, departure time and the number of people in your party. I need this in order to book the vehicle and arrange transportation from the airport to our office which is half way to Mita. Regards Denis

The price seemed competitive, and the service -- well, if they are ready to send someone out to us in the middle of the night to help us return our car, these guys are obviously not following by the rule books I associate with conventional rental car companies. So we signed on.

And so far, the client experience/engagement has been impeccable -- and a lesson for marketers anywhere.

In confirming the rental, Denis told us that we should watch for a kiosk calleed "VIP Service" after clearing customs, but before entering the "mandatory" room where time share shills hawk their wares. Indeed someone had a sign with my name, and directed me forward. And indeed, I ran into the Timeshare gauntlet, where two sales guys asked me "Do I have the hotel voucher" as if we had some kind of relationship with them, but really to get us to some rip-off time share deal or another. Out the door, and then the very visible and well furnished VIP Room, where Gecko had arranged a private driver to take us to Buscerias.

Our driver engaged us as we drove 40 minutes, dropping us off at a hole-in-the-wall place we would never haver found (or even considered) if we were choosing based on the supeficial "advertised" brand rather than real experience and first-hand recommendations.

Denis -- turns out his father is from Montreal, where my wife grew up -- said unfortunately the Jetta hadn't been returned by the previous client, but not to worry, we would get aother, less expensive, car and they would drive up to replace it. He gave me simple instructions about the rules of the road in Mexico. He didn't force me into CDW insurance waivers, "fill up the tank" and other gimmicks. But a hand written sign said they had cellular phones for rent for $20 for the week -- and when he told me the cost of using the phone compared to my Canadian cell phone's overpriced roaming rates, I took the offer.

I asked about the return procedure. Denis said by the time we had been here a week, we probably would be comfortable driving at night. In that case, we could come in the day before, settle up the account, and then drive the car to the airport, and leave it in the parking lot, door unlocked, with the key under the mat. But if we were unconfortable with that option, he would arrange for a driver for us. I thought: "leaving a car unlocked at three in the morning in Mexico... well he knows his business and the local area better than me, and I'm sure he woldn't set up a situation where he felt he would lose his car"

So we got our car; a downgrade, something that would normally annoy me, but we found the lower priced car quite suitable and, with the clear instructions, arrived at our destination. In fact, I thought, why not save some money and keep the cheaper car.

Then I heard the ring on the cell phone -- the one they had rented me. Their driver would bring out the proper car; I couldn't keep the less expensive model because it had been rented to someone else. Within half an hour, with minimum interruption, we had the new car and it looks like it will be a pleasure to drive (no charge for the gas for the temporary downgrade, of course.)

Now, I'm dwelling on this experience at some length, because it teaches some rather important marketing lessons.
  • If you can build relationships with customers to the extent they will refer you personally, you don't need a big brand name, expensive advertising campaigns, and huge sales budgets. Nor do you need fancy offices, "convenient locations" and sophisticated "call centres."

  • If you can build flexibility, trust, and humanity into your business, you can overcome client fears -- often valid -- and keep things simple. So, yes, we'll probably drive back at 3 a.m. to the airport (but it is reassuring that if I don't feel comfortable with that option, an alternative can be arranged.)

  • You still need to deliver the basics: In this case, a clean, reliable car, at a price that is in line with the competition but you can also sell the extras -- in this case the cellular phone service -- without pressure or hype.

  • Little things count a lot: The warnings about the "time share salespeople" allowed me to navigate that maze at the airport, and the driving service to the rental car office helped to overcome the off-site location (which is actually more convenient to us where we are)
Note also that while we may return to this area in the future, we are not likely to be big, loyal, long-term clients; and while of course we would really listen if Denis had other rental car suggestions elsewhere, that is unlikely, as this is a local business. So Gecko has overcome many limitations that smaller businesses must encounter, and done it with class and ability.
These are lessons worthy of remembering for the future.

Saturday, March 08, 2008

Vacation in mexico

While our vacation isn't much more expensive than a conventional Mexican package excursion (at the peak Spring Break week), the travel standards and experience are at first class levels. This requires some planning and co-ordination, of course.

We're in a High Country Club destination club vila in Punta de Mita, near Puerto Vallarta, Mexico. escaping (for spring break) what is turning into a record breaking snowfall winter in Ottawa.

Although we are now far from home, I will resume regular blog postings tomorrow a.m. In the meantime, it is time to look over the balcony onto the Pacific Ocean, as my son sights whales in the water.

Friday, March 07, 2008

Promises, promises

Writer and speaker Lewis Smedes says:

Yes, somewhere people still make and keep promises. They choose not to quit when the going gets rough because they promised once to see it through. They stick to lost causes. They hold on to a love grown cold. They stay with people who have become pains in the neck. They still dare to make promises and care enough to keep the promises they make. I want to say to you that if you have a ship you will not desert, if you have people you will not forsake, if you have causes you will not
abandon, then you are like God.

What a marvelous thing a promise is! When a person makes a promise, she reaches out into an unpredictable future and makes one thing predictable: she will be there even when being there costs her more than she wants to pay. When a person makes a promise, he stretches himself out into circumstances that no one can control and controls at least one thing: he will be there no matter what the circumstances turn out to be. With one simple word of promise, a person creates an island of certainty in a sea of uncertainty. When a person makes a promise, she stakes a claim on her personal freedom and power.When you make a promise, you take a hand in creating your own future.
Lewis Smedes, "The Power of Promises," A Chorus of Witnesses, edited by Long and Plantinga, (Eerdmans, 1994)

Architect Craig Galati in this posting, Keeping the Hard Promises, writes about the importance of sticking by your word, and doing what you say you will do. He of course is talking about meaningful and important promises; not the soft things that don't really matter. Indeed, living up to -- and going beyond your promises -- are essential for successful ongoing relationships and brand/business harmony.

This applies both internally and externally; internally with colleagues and employees (and employers!); externally with clients and suppliers. But what happens when you are in a situation when you fail to complete your promises; perhaps because, made in haste, they are unsustainable, because you cannot complete your end of the bargain because someone else or some external circumstance intervened, or because you simply forgot you made it; or your recollection of your promise is unclear?

I suppose a perfect world answer would be "Never get in that situation" but I certainly cannot claim perfection. In fact, right now I am torn about promises I've made which I now think would be foolish and expensive to fulfill. I know I can 'weasel out' of them on technical grounds (in essence the other parties also didn't totally achieve their obligations that are at the root of the promises) but this doesn't feel right. I don't need to resolve this issue immediately -- especially since tonight I will be heading on vacation for a week -- but I still need to find the right answer that respects the situation and realities, yet maintains the essential trust we need in business.

Craig, in his posting, however, offers some more practical answers.

Practice discipline.
People who have fallen into the trap of not fulfilling promises are not bad people. They have just become undisciplined in their thoughts and actions. They have become more accustomed to telling people what they think people want to hear and less accustomed to considering the implications of the promises that they make. This creates a slippery slope that will take discipline to climb. Take the time necessary to understand your commitment so that you make better decisions and in turn, better promises.

Words matter.
I’m sure that not a single one of us would tell a client, “I’m going to deliver your project two days later than I tell you.” Yet many of us do deliver late, violating the promise. Think of your actions in terms of the promise given; make a promise you are sure you can keep.
Stay focused on important things. Each day we are hit with many things to do. Our task list grows out of proportion with the actual urgency of these tasks. Stay focused on the items that are truly important to you and your clients. I suggest rather than just keeping a to do list, that you develop a promise list and hold it to a high level of importance. Be careful of how many promises you make. Take a critical look at your list and be honest–can you really commit to this new promise?

People don’t trust those who don’t fulfill their promises.
Have you ever been in a meeting where a chronic under performer promises to do something? You can almost hear people’s eyes rolling back. Everyone is thinking, “Yeah, right, sure.” Don’t become the one who loses trust by not keeping your promises. It takes a lot more work to regain someone’s trust than it does to lose that trust in the first place.

Thursday, March 06, 2008

Getting the good seat

I really like this posting by Ford Harding, where he addresses the question: How can you be sure to sit next to the person/people you really want to be with at networking/dinner events? He shares three effective ideas in this Salesopedia article.

The video test (2)

You can view the construction of the new hospital in Sault. Ste. Marie by video link from the hospital's website. We'll be profiling this project in an upcoming issue of the Northern Ontario Construction News.



Well, my first ever 'official' web video broadcast came and went -- with no response (though the broadcast service suggested that perhaps two people were actually viewing it.) The experience is kind of like giving a speech at the top of your voice in a forest, where no one can actually see or hear you. Here, of course, theoretically, everyone in the world can know you are there -- but that doesn't mean anyone is listening.

Not that it matters much, right now. But I know it will be important, if not within the next year; certainly within the next two or three. How can I be so confident? Instinct, perhaps. I remember when I got my first email account in the mid-1990s, and eagerly awaited someone, anyone, to send me an email in response to a print publication article giving the information to everyone. No one responded.

We were early adaptors with digital cameras, as well. This had immediate practical business value -- with remote operations in the U.S., the costs of delivering images would have been astronomical, without the ability to upload e-files with the camera images. Of course, the early cameras could do a fraction of what current models are capable of achieving, at a fraction of the cost.

Then there is wireless Internet. I signed up early for home use. But the real value is in our office. Employees working from home can 'drop in' and quickly connect to the secured server. And working from home, the family room sofa is now my primary work space during the day -- I get lots of stuff done, in relative comfort.

I've written about Social Networking for the SMPS Marketer and believe these resources, while of limited immediate significance, will soon become extremely important for the construction marketing process.

Finally, we have this blog and broadcast emails through Constant Contact. A year ago, virtually no one viewed this blog; now the audience is usually more than 50 readers per day and often more than 100. And the blog and e-letter have, indeed, brought our business valid and useful leads.

The interesting thing about the new video technologies is the way they integrate with other Internet resources. Justin.tv for example, allows you to set a feed right to your blog (I did). As well, it is easy to send out by email notifications about an upcoming broadcast. I used a small list for this morning's test -- it is not my intention to bother people unnecessarily as we get the technical glitches out of the system.

Video streaming and broadcasting isn't quite ready for prime time, in my opinion, but I expect within the year you'll see this has real applications and is a relevant part of your marketing mix.

Testing the video feed


Watch live video from publisher1's channel on Justin.tv



Wednesday, March 05, 2008

Video broadcast test

So what is this, you say? I'm testing the ability to produce live video feeds. The service I'm using at present is justin.tv, but I expect this type of service will be available from youtube.com and other services within the year.

If I'm online live you can just click on the icon and reach my webcam. Justin.tv is currently a free service. It can be linked to mobile or fixed cameras. The basic system I'm using allows only one camera, and of course the camera I'm using isn't quite the broadcast quality of high definition television.

Will these resources be useful in marketing AEC services? Possibly. You might set up a webcam in your office, or at a significant job site, and invite people to take a peek. Comment functions within justin.tv (see the bottom of this blog for an example) may allow some two-way interaction and communication.

While I certainly don't claim to be a high tech guru, I also appreciate this stuff is bleeding edge within the world of construction marketing. In other words, although we are now able to set up our own personal television stations, I don't think we are quite ready for prime time yet.

The right employees; the right business

Look at the employee recruitment page for Hudson Construction in Davis, CA. Linking the employee hiring process to the client testimonials is inspiring -- and probably very effective -- in ensuring that people who wish to work for this company know the importance that satisfied clients are to their careers -- and that their work matters in supporting the business.



Yesterday, at the Greater Ottawa Home Builders' Association annual meeting, I had the opportunity to sit with a couple of people I have known for many years within the association. In both cases, they've held their jobs through successive corporate reorganizations, purchases, transformations, and the like.

One has always been at the big company, as it gobbled up other firms, and became even larger. The other, originally working with a large utility, found his job/environment shifted and changed as it evolved through different stages of deregulation; with new owners acquiring and changing the place -- and his 'place of employment' going through a seemingly schizoid number of name (and ownership) changes even as the essential business remained the same.

I was interested in hearing their attitudes to their employers and business in general -- having survived enough experiences to fill several life-times. Both are still at their work, competent, capable, and knowledgeable. I think they would be valuable at any business. (I'm obviously not naming them or their companies in this blog because obviously they didn't speak openly with me expecting an on-the-record interview!)

One person, who has lived in the corporate world all her life, said she noticed how some employees think like they own the world -- they are in their own space -- oblivious to the real market forces around them, only to come crashing to reality when the business changes or is reorganized.

She said however, she would always prefer the corporate world to the small business where the owner behaves as if he or she owns the world -- while not knowing what is really going on.
The other successful employee described how successive owners and managers failed to get it -- especially seeing the value of the actual business, and its opportunities. He described how he helped turn the business around with simple changes to make it more sensitive to the market and reduce internal 'process' bs. I told him it seems like he has the stuff to be an entrepreneur -- to own his own business. He agreed.

The point about these truly excellent employees is they combine confidence in themselves and a certain amount of healthy ego-pride with a realistic understanding that they only have their jobs, and their businesses only exist, within the real world of clients and the market -- and they resist -- in fact resent -- other employees, managers, and owners who don't get it.

Why is this discussion important for construction marketing? As I've outlined in previous posts, your brand is the sum total of all client interactions with your business -- and the front-line employees who work with your customers are going to leave the most important lasting impressions on them. Finding and retaining great employees in all aspects of your business -- not just the sales and marketing department -- then should be your highest priority. (Of course it is helpful that they do their respective tasks well, because marketing is indeed only one part of the picture.)

Listening to these successful long-time employees, I thought how sometimes we spend too much time listening to illustrious big-name business speakers, top executives, gurus, and consultants. Maybe, we should look at the qualities of our best employees; that is, the individuals who handle their specific responsibilities with exceptional competence, while connecting their work to the larger business picture. Taking these employees' perspectives in hand, you may find you change your branding and marketing strategy far more effectively than by following the conventional metrics.

Just a thought, maybe worth considering.

Tuesday, March 04, 2008

About social networking and construction marketing


Want to reach me via Skype? You can call (919) 373-4286.

Here is a link to my article for The SMPS Marketer about Social Networking. I wrote "Social Networking for Marketers: Where it stands now" in December for publication in the February issue, and a fair bit of change has occurred since then.

First, just as I received the advance copy of the printed article last month, Chase in St. Catharines decided to set up Facebook pages for our various Canadian publications. These sites (plus communications with our clients about the Marketer article) resulted in some worthy leads (and some flaky calls).

I can't say that social networking sites are at the core of our current marketing initiatives, but they have an important place in the future of marketing, and the industry, and if you aren't using these resources, you should begin to understand them.

Meanwhile, in preparation for a week's vacation in Mexico beginning this Friday, I've been boning up on Internet telephony and video link capacities. The place we are staying at has high speed Internet, but cellular roaming charges are really high. And I do not wish to lose touch with or connection to the business back at home. So, for less than $100 for a year's service:
  • I set up a Skype phone number, with a 919 (Raleigh, North Carolina) area code that will ring to my computer-phone in Mexico;

  • I signed up for the broadcast video service offered by justin.tv which allows you viewers to join in the conversation through an instant messaging function. Our designer Raymond Levielle suggests an alternative, referenced here,
    http://www.mvldesign.com/video_conference_tutorial.html, which can allow up to four distant people to participate via video link.
The result of this is that, coupled with our regular teleconferencing systems, employees and I should be able to communicate effectively and inexpensively while I am a few thousand miles away. And of course I will continue blogging.

BTW, if you wish to visit and become "friends" here are some of our Facebook sites.
Ottawa Construction News
The GTA Construction Report
Northern Ontario Construction News

Sidetracks and sidelines

PCL founder Ernie Poole set out 11 rules for business -- put down in handwritten form by his son George in 1948. They remain the core of the company's business principals, but could also be seen as a manifesto for any successful construction business.

One of Ernie Poole’s rules is ‘Don’t have sidelines." — Paul G. Douglas Canadian Buildings Chief, PCL (ENR 1/30/2008)


Ah, for a simple but important rule. "Don't have sidelines". This is one of 11 rules set out by George Poole when he purchased the business from his father in 1948, and Poole's Rules are now the foundation of PCL's success as one of North America's leading employee-owned contractors.

I know Paul Douglas from when, several years ago, he was in charge of PCL's Ottawa district office. Unfortunately, I failed to observe the "Don't have sidelines" rule and this proved to be one of my larger business mistakes.

At one point, for example, frustrated with the high costs of airline travel for the U.S. expansion, I made it my 'thing' to study airline fares and systems, to the point I 'cracked' Air Canada's Aeroplan program. I also took some strange trips, including one day excursions to Hong Kong, Singapore, and Guatemala, in First or Business Class, at astoundingly low fares. It certainly made for good stories (which I still share at times) and presumably saved me some money on my business travel, but was it good for business? Not a chance. Beyond the diversion of time and energy this stuff involved, It probably didn't motivate my employees much to be seen as interested in flight rules and variations.

My second major sideline involved fighting an Internet scam. This little sideline took me around the world, tracking down property records in South Africa, and tracing hotel records in Vanuatu. Coupled with the Airline legacy -- I remember a trip to Houston to meet an Internet forum administrator related to the scam-fighting initiative -- I spent countless hours on the venture; only to back off the fight when I realized that this stressful exercise could do nothing good for the future of my primary business, even though at one point, I attributed the hiring of a local publisher (and a quick $50,000 in revenue) to the scam-fighting project.

Sidelines are dangerous, indeed. they consume energy, passion, time, and money, and don't help your business. They also are tempting -- because you can almost always rationalize that they are indeed relevant and helpful; and may provide you with expansion opportunities and diversity.

So, what about this blog? Well, I hope I'm right in assuming that while it provides some of the intrinsic satisfaction of the sidelines I've just reported, it at least is relevant to the business.

We sell advertising and publish newspapers and websites for the construction industry -- a blog focused on Construction Marketing Ideas is clearly on-topic if only because it causes me to constantly think of ways we can do our business more effectively.

But I keep my eyes open now for relevance; practicality, and relationship to the primary business. And, while these days employers cannot over-regulate the out-of work priorities of employees, I won't forget this Poole's Rule: "Do not permit sidelines by employees." I am an employee, too.

Monday, March 03, 2008

Beyond the extremes

This posting is about marketing extremes -- but you can also look at business extremes geographically. Consider the situation in Dubai and the other Emirates, where everything is over the edge and beyond our regular comprehension, business-wise. And yes, many North American building supply manufacturers and some larger contractors have found good business opportunities in these booming areas.


In selling and marketing, you can find two extremes in perception. At one extreme is the "do nothing" but look for bids approach -- common in the construction industry, where contractors and sub trades descend like lemmings to a public tender posting, and fight to come in low, and "win" the job.

Somewhat related, but of course much better business wise, are the companies that stake their name on their reputation -- they deliver excellent (perhaps under priced!) service and value, and potential clients call them on referral, or repeat business. Sometimes the business relies on one or two steady excellent clients, which works well as long as the few select clients don't run into problems of their own.

At the other extreme, we find the pushy salespeople, using cold calls, canvassing, telemarketing, and other intrusive methodologies, maybe even spam emails. These businesses play the "numbers game" and train their sales reps in the ticks of the trade to manipulate and manage potential clients. Rarely do they rely on repeat business from satisfied clients (though they may say they do); rather, they are always out looking for more customers, one by one, through pure hard rock selling.

Somewhat related to this extreme, are businesses that fork over sizable amounts of money to lead services, advertising in the yellow pages, and the like. This at least generates the inbound calls -- then the selling machine is turned on.

Are these approaches and diverging perceptions on how to market and sell necessarily wrong? Not in my opinion. After all, if the business model works for you, it works. If you have a systematized approach to canvassing that generates enough business, good times or bad, am I right to tell you you are wrong? And if you have such good client loyalty that you really do not need to market your services, should I tell you to drop everything and start canvassing or cold calling? You'd rightfully consider me nuts to even consider the question.

However, I sense that most businesses will do best somewhere in in the middle, with the emphasis on one side or another of the spectrum determined perhaps by your product or service and the way most clients perceive it in the marketplace. Some basic guidelines or measures of success are:
  • How many people do you talk with, on initial inquiry, who ultimately purchase/use the your serve? If everyone is saying 'yes' without question, you have good grounds to raise your prices. If everyone says 'no' you won't be in business very long.

  • How many of your clients become repeat customers, or refer friends? This is a key indicator of success. You want to see virtually 100 per cent positive results here, and the closer you reach this score, the better off you are.

  • How many complaints do you hear; and do clients ever use the word "scam", "nuisance" or "annoying" relating to your business? If these things happen more than infrequently, something is wrong. You may be winning business, but you are probably costing yourself more in long-term relationships and your cost of selling will keep rising until your business is uneconomic (or, if you don't really care, until you can find another 'scamming' game to play.)

  • Does one client count for more than 50 per cent of your business? If it does, do you have a solid and easy-to-implement contingency plan if the client fails to pay a major invoice, or drops you like a lead balloon? It happens, all too often.
I am not going to tell you to do one thing or another; every business is different, but I prefer a balanced approach -- using effective marketing and promotion (including websites, email and advertising) and solid, competent (and carefully selected) sales reps to bring new business in the door, while retaining clients who are satisfied and ready to refer others because of your overall business practices, values and integrity.

Great idea -- but forget the "free estimates" part

This posting on contractortalk.com suggests a simple but effective marketing/strategy.

Here is a fool proof idea:

  1. Identify what city you want your business to grow in. Figure out which newspaper is the most popular.

  2. Find the section where the local Contractors and Tradesmen advertise. Place your ad so that it is in the top one or two spots. Your ad should have your Business name, personal name, Free Estimates and Referrals mentioned.

  3. Make sure the number you list is answered by a real person who has an interest in generating leads from 8 a.m. to 8pm seven days a week.

  4. Make an appointment within 48hrs at the customers convenience, even if it's 9 p.m. at night after you've been working since 5 a.m. When you go, be professional, dress better than your crew of workers, but, in a manner that says, if I have to jump in and hump it with them I can and I will.

  5. Engage Good Selling Best Practices.

  6. After a year, your closing ratio should be better than 1 in 4, your goal should be 1 - 3. If it is, keep doing it, or hire someone to do it. If it's worse than 1 in 4, you su*k as a salesman and you need to get better or hire someone better. If it's better than 1 - 3 raise your prices until it gets to 1 - 3.

  7. Track who advertises in the paper with you. You'll notice there will be a few that are always there and a whole bunch that come and go. Those that come and go are looking for something easy, there is nothing easy about this.

Ok, this has merit, but can we get away from the "free estimates" nonsense? There is no USP (unique selling proposition) here; if you are going to offer something 'free', why not a report on how to do things better, a list of practical ideas, or a reference to a well written blog or website. Sure, you can talk in terms of ballpark numbers -- you want to make sure that your clients are in the range of reality, and your potential clients have the right to know that you aren't way out of their perception. But a full blown estimate with detailed proposal should come with some commitment in return if the job is of any size or significance.

Other posters on the thread debate the need for this extreme level of work effort. I'm not so sure that you can escape that (though the specific hours/schedule may not apply in your business. Ultimately, you'll have staff (perhaps working shifts and rotating on-call schedules) or reach the point that you can narrow hours of operation to your, rather than your clients' hours of convenience, but this is probably not wise at start-up and I've seen through experience the costs of abrogating responsibility and leaving things entirely to others, even when things seem to be going well.

But I'll give the contractortalk.com poster the final word (actually the beginning of his post) because it is the most solid advice I've seen in a while:

What's most effective in marketing is what you put your best and most consistent effort in. Whatever you do, make a two year commitment to do it and stick with it. All of the ideas you and others mention work, but only if you work them consistently. Throwing money at a one time newspaper ad, mailer, door hangers, lead service, etc. etc. is literally just throwing money away. You are going to be in business a long time, take long term approaches so your customers see you as the guy that is always at the Homeshow, always hangs that cr*p on my door, always mails me those postcards..... people trust who they know.

Sunday, March 02, 2008

The challenge of negative press

Countryside Publishing Company, Inc. has been the subject of hostile comments on an Internet thread for it sales practices. The company's products are in fact legitimate, and well-designed.


With more than 600 comments, this thread in The Daily WTF, "So You Hacked Our Site!?" raises some interesting and important questions. Initially, I saw this simply as a case of "slagging" on the Internet; but my eyes perked up when I noticed that the business publishing Federal Suppliers Guide, Countryside Publishing Company, Inc. of Ocala, Florida, is also very much in our neck of the woods -- for several years they've produced marketing brochures, CDs and websites for contractors and builders; using the supplier chain to help fund the work.

Unfortunately, many commenters on this thread's postings describe "Federal Suppliers Guide" as a scam. It is not, and Countryside in fact produces technically satisfactory products including its construction industry books and CDs. Some samples of their work (obtained via Google search) are referenced below.

http://www.countrysidepublishing.com/images/12-summit.pdf

and

http://www.countrysidepublishing.com/images/20-legacy.pdf

The issue here in my opinion is not Countryside/Federal Suppliers Guide's legitimacy as a business -- but the challenges of aggressive selling practices, and the potential negative fall-out from these approaches.

Outbound telemarketing and sales calls by their nature are intrusive; almost no one asks a complete stranger to call them and invite them to spend money. To be "effective"businesses which engage in processes like phone cold calling and door-to-door canvassing, develop tools to break through resistance and barriers and get the order, often leaving a sour taste behind. Regardless of the actual value or legitimacy of the actual product or service delivered (and I am not suggesting any problems with Countryside's products), the selling process leaves vibes that are less than perfect. And this is ironic, because Countryside/Federal Suppliers Guide is offering marketing tools and services for builders and contractors.

In this thread, unfortunately, Countryside is inaccurately described as a "scam" and one of the company's employees -- rightfully hurt by the inaccurate assertions -- comes on to defend the business. Ouch. This just sets off page after page of rebuttal, compounding the negative publicity.

At times in the past (and probably in the future) Countryside's business has competed or will compete with ours; we use supplier chain resources to sell our advertising features; and some people we've approached in the past have recalled experiences with Countryside (one even provided their sales contract to our representative). Searching through other web postings about Countryside, I don't find negative insights -- instead, I sense this company has built loyalty and respect among its employees.

Nevertheless, we can all learn lessons here about effective selling and marketing and the dangers of overly assertive/aggressive techniques. Here, Countryside/Federal Suppliers Guide is being put through a wringer. We must always be careful that our selling process not be so intrusive that the community forms this type of image of our businesses. In the end, while what we do/deliver is what counts the most, if the overriding emotions and impressions created about us is that we are a 'scam', we will find increasing costs and lower sales -- just the opposite of what we (and I think Countryside) are seeking to achieve.

Saturday, March 01, 2008

"Free" eh

This posting by Seth Godin, "May I have your attention please" is worth reading, but I'm not sure if you should go down the path and interpret it that the phrase"Free Estimates" is validated.

I don't think it is wise to spend hours preparing quotes, only for you to be one of several 'players' all being chosen on low price. This is asking for problems, and frustrations. "Free" here should be the general knowledge, insights, and ideas you can share with everyone -- and this is often provided in things like a blog, newsletter, or your website. Once you have the leads, and a track-record of satisfied clients, you can be paid for your work in setting up and estimating costs.

Con artists and sleazes -- beware!

I am not qualified to comment on any specific business, but read the comments and articles in this Florida Today blog entry for an idea of some of the relevant issues.

Con artists and sleaze balls often thrive in recessions, capturing unsophisticated or unfortunate victims among the trades, suppliers, and clients. The reason is simple: Cons prey on the inexperienced and the desperate, and both are easier to find in hard times. The inexperienced are the new businesses which sprout up from laid off or dismissed employees of established businesses; the desperate include, of course, both these new businesses and the failing established firms, scrambling to keep enough cash and sales to keep the doors open.

As an example, one of the oldest tricks in the book is for a GC to bid low, win the job, and then selectively find fault and/or refuse to pay all or part of the sub trade bills, claiming one excuse or another. (See this blog entry from Michael Stone outlining how this practice seems to be reemerging in the communities he serves.)

This stuff happens, of course, because by bidding an uneconomically 'low' job, the GC can win it from a price-sensitive client; but preserve margins (or perhaps just survive) by not paying all the subs. "There are always more out there to do the work," the contractor thinks, and in hard times, there often are.

I well remember a classic example of this sort of problem in the last true multi-year real-estate recession, in the early to mid 1990s. Sub trades burned by a well-established (and therefore bondable) general contractor began running into one problem after another, not being paid -- compounded by abusive "blame the subs" complaints by the contractor. Finally, a group of relatively well funded subs and suppliers did something we rarely see in business -- they petitioned the contractor into bankruptcy, claiming that he was effectively insolvent, despite all his denials. The result: an extremely rare bankruptcy court trial, with witnesses, and weeks of testimony (and some truly huge legal bills). The judge ultimately agreed with t he plaintiffs that even though the business operator claimed he was not insolvent/bankrupt, his systematic failure to pay many bills indeed represented insolvency, and thus bankruptcy.

Trouble is, if you are caught by one of these operators, you are unlikely to have the cash and time to go to the expense that occurred in this example (I remember straining my own limited publishing budget, because we had to have a qualified reporter in the courtroom every day.) So the sleaze-ball gets away with the crime.

What can you do to avoid getting caught in this kind of mess? The basic rules of business, good times and bad, apply, and you can use these measures to avoid being snared.
  • Avoid being caught with one major client. If you do, you are hostage to the client. If he fails, or decides to get nasty with you, you are caught in a vice. While it is good to have large jobs, it is better to have many medium-sized projects with different clients.
  • Listen to your intuition. If something doesn't seem quite right, check it out -- thoroughly. First impressions often are right.
  • Be really connected in your community; providing your community is one of successful business people. (The worst danger however is to be in a community of unsophisticated people -- friends refer friends and some of the worst Internet scams, for example, have found fodder in church and community groups where members trust each other and don't realize an outsider has infiltrated.)
  • If you have a chapter in your area, join the American Subcontractors Association, or at least one of the reputable and well established associations for your trade. You can then call informally on association staff and your peers for guidance.

These are not perfect solutions. The contractor our community pushed into bankruptcy back in the 1990s had previously a very good reputation -- and in fact his family members carried on once he was put out of business. But if you use these approaches, you'll likely be much safer and less likely to fail, good times or bad.