Yes, Go After Your Competitors' Customers

Is it proper etiquette to try and grab customers from your competitors during a recession? Absolutely! Any time is the right time to go after market share.

Times are tough, right? How can you get your competition's customers to switch to you? Here are some dos and don'ts for keeping it classy while gaining more customers.

DO continue your marketing efforts.

Downturns are when the biggest shifts happen in market share. If your competitors stop spending or cut budgets for sales and marketing, it's your opportunity to attract attention and get noticed by their customers.

DO focus on your core type of customers.

Stick with the customers that you know best. Who buys from you through thick and thin? If you're an airline that primarily caters to business travelers, then target business travelers. If you're having success selling life insurance to 30 to 40-year-olds with teen and tween kids, then stick with them. Now may not be the time to go after an entirely new audience.

DON'T target your competitors by name.

It's just my opinion, but I think it's better to take the high road. If you directly name your competitor, it can come off as a little underhanded and unsportsmanlike. I have recently noticed more insurance company ads on TV using competitors' names when talking about who has the lowest rates. You may gain customers in the short term, but they might be fickle! Also, make sure you deliver on your promises. If not, your competition will most likely point it out.

DO promote what makes you better.

You can indirectly say that you offer something that's better than the competition. In late 2008, McDonald's ran billboard ads that simply said, "four bucks is dumb. now serving espresso." It was a rather obvious jab at Starbucks' higher pricing. Reportedly, the advertising and publicity from the billboards increased McDonald's coffee sales by 30% in 2008.

DO consider adjusting your product strategy.

Think of new ways to give customers what they want. If you're in financial services, customers may want more hand-holding. You could offer free consultations or conduct seminars to help reassure your customers and give them face time with you. Consider creating a blog containing topics and information that's relevant to your customers. Start a Twitter account that provides customer service and support - check out Wells Fargo - or offers discounts and coupons. It could also be a good time to launch new products that suit your core customers' changing needs.

DON'T panic and lower your prices.

Many companies are focusing on price in their marketing and advertising. And yes, price is an important factor for most consumers right now. While a price cut to make your product or service more appealing than the competition may feel like a good idea, in the long run it can undermine the foundation of your products or services. Besides, at some point, you're going to want to raise prices again.

So, go out there and get more market share. What are you doing to take your competitors' customers? If you have any experiences with targeting competitors by name, lowering prices, or adjusting your product strategies, post a comment. I would love to hear from you!

Why Sales and Marketing Need to Get Along

A few days ago, I was participating in a conference call with a prospect, and we were giving a presentation of an on-demand application we offer that allows a company's sales staff to send out variable, custom direct marketing materials. The prospect said something I found interesting, "Let's talk again once we have separated sales from marketing."

My first thought was,"Why would you want to separate them?"

Over the years, I have frequently heard sales and marketing departments within a company complain about each other. It's a bit like sibling rivalry. Sales says that marketing doesn't give them good enough leads. Marketing says that sales doesn't follow up on the leads they give them.

I'm still surprised by the number of companies who have sales and marketing in different "silos." The two departments work independently from each other, and often have different goals and objectives.

With today's down economy and uncertainty in the marketplace, now is the time to unite marketing and sales to create a well-oiled machine. Competition to win your customer's business is at an all-time high. If you don't streamline your process so that you're making the sale, your competitors will.

Why is it so hard for sales and marketing to get along?

First, sales and marketing people often have different personalities. Marketers get squeamish when they think of doing sales. And the best salespeople usually don't enjoy marketing activities. By the nature of their jobs, salespeople tend to be reactive. They must constantly deal with customer questions, leads that need to be contacted, and putting out fires. The sales personality thrives on chaos and the rush that comes from closing the sale. Marketing is more proactive. They are making plans, creating programs and campaigns, and developing strategies and tactics. They are thinking in terms of weeks and months rather than what's on my plate today.

Second, because sales and marketing are often separated within a company (both physically and mentally), they may feel they are competing with each other for respect and recognition within the company. When in fact, for a company to be more profitable, both departments need each other.

Here are some ways to help your sales and marketing departments get along:

Develop a team game plan.
Many times sales has its own strategy and goals while marketing has its own plans. Both departments have the same goal: to bring in revenue. So, create an overall strategy that outlines how marketing will create programs that bring in the customers and prospects, and sales will follow up and seal the deal. It should be a continuous loop with ongoing communication.

Bring them together.
Many times, sales and marketing people are literally across the building from each other. Or even in another building or entirely different city. If possible, have them meet regularly. Have sales people sit in on marketing planning sessions. Have marketing people go on sales calls. When both sides are able to see the whole picture, it can bring a new dimension to your sales and marketing efforts.

Keep everyone in the loop.
Ask for salespeople's input early in the planning process. The direct marketing company I work for, was creating a new series of collateral brochures for an insurance client. Before we developed the creative, we surveyed the field agents to get their input on what messages, graphics, and copy points worked best when they were face-to-face with prospects. By working in the elements the agents wanted, we created stronger collateral materials and increased usage of these materials because agents felt directly responsible for the content. On the reverse side, sales needs to let marketing know if materials should be tweaked, or if the leads that are being generated need to be higher quality.

Think about customization.
Salespeople like to send out marketing materials that they feel are relevant and speak to the customer or prospect. In addition, salespeople may be targeting different audiences or sell only certain products and services. By creating more variable, on-demand marketing materials, sales can use only the materials they need. In addition, they can customize the materials with their name and contact information so that the mailings are truly one-to-one communications. To decide if on-demand is right for you, check out a blog I wrote called "Are you ready to go on-demand?"

Coordinate your programs.
Marketing must let sales know when programs are going to launch. Sales also needs to know what types of leads they will be receiving. What was offered? What was the messaging? Based on this information, sales can modify their approach for follow up calls. And sales needs to follow through on leads with more than one phone call or email. Make sure all leads are solidly pursued.

Talk to each other.
The most important thing is to communicate. Marketing needs to keep sales informed about the campaigns they are running and the frequency. Sales needs to let marketing know how things went on the back end. Were the leads good? How could the programs be improved to get better leads?

Times are tight right now. Both businesses and consumers are shopping around before they buy. Now is the time for sales and marketing to work closely together – from understanding your customers and prospects to creating a strategic plan and closing sales.

The Power of Good Collateral Materials

I recently read an article that said "collateral materials don't sell for you." I agree that a brochure isn't going to pick up the phone and call a prospect, or email an estimate to a customer.

Yet, I believe collateral materials can play an important role in making the sale happen. First, what do I mean by collateral? Some marketers may limit the definition to a leave-behind brochure. To me, effective collateral is much, much more. It can include brochures about your company and products or services, sell sheets, flyers, case studies or testimonials, letters, business cards, even proposals, or a presentation folder.

All of these marketing materials can help support the sale. Different businesses or consumers are at different stages of the "buying cycle." If you're selling financing to lease an airplane, you need to catch a business at the time when they are ready to lease. If you're selling insurance, you need to address consumers who are at different stages in life. Some people know they need it, and are procrastinating. Others may need to be more educated about the benefits of your product.

Just because you call a prospect and ask him if he wants to lease and airplane and he says no, doesn't mean that sales opportunity is over. Now, you should keep in contact with him until he is ready to lease. You can send him a follow-up mailing with a brochure or flyer and your business card. If interest rates or some other factor should change that might make leasing more appealing, you can send him a letter letting him know about the new rates. Then, if you follow-up with a call, he is prepared to talk to you about this new development.

Here are some more ways that collateral materials can play an ongoing roll in the sales cycle.

Build a strong image of your company in prospects' minds.
Your prospect may know very little about you at the beginning of your relationship. By sending her ongoing communications, you create an image of your company and products/services in her mind.

Reinforce your company's brand identity with customers.
You may think that your customers know you and will call when they need something. This can be a costly assumption. It's important to say top-of-mind with existing customers. For instance, you can send a case study with a recent success story. Or, send a sell sheet with new information about a product or service.

Educate buyers about your entire product or service offering.
A customer who has life insurance with you may not realize you also offer long term care insurance and annuities. Collateral materials can help you cross-sell to existing customers.

Provide support and education.
An email newsletter, white paper, or blog can help you connect with your customers and prospects and position you as an expert in the industry.

You may worry that continuing to send materials to prospects will eventually decrease your response rates. However, the opposite is often true. That's because you're establishing a relationship or rapport with your customers and prospects that leads to both new and ongoing business.