There have been some exciting things going on at ITSMA recently. Not
only is our member community growing (welcome to Utimaco
Safeware, a data security company based in Germany), but we've
also been adding new staff. Chris Koch, former executive editor of CIO magazine,
joined our research team in June. Kerry Johnston, who also came on
board in June, brings more than 12 years of marketing experience to
our European office. Most recently, Ajit Maira, with forty years of
experience in marketing, strategy, sales, and consulting, has joined
our team as the vice president of our consulting and training activities.
Before he joined ITSMA, Ajit served as principal and owner of a management
and marketing consulting firm. Prior to launching his consulting practice,
he was a senior vice president and technology strategist at CA. Over
the years, he has held leadership roles in marketing, sales, and services
for Steinbrecher Corporation, Concord Data Systems, Raytheon Data Systems,
Burroughs, Xerox, Digital Equipment Corp., and IBM. We’re extremely
pleased to be able to offer you access to Ajit's expertise, and we
hope that you have the opportunity to meet and work with him very soon.
On a separate but somewhat related note, you can take advantage of
ITSMA's growth by sponsoring our Annual
Marketing Conference and getting your company’s name in front
of our expanding member community. We've already confirmed a number
of speakers and signed up marketing leaders to attend the event. Past
sponsors have included BtoB magazine, CMP, EDS, IBM, Oracle,
and others.
For more information on event sponsorship, please contact Dirk Mullenger
at +1-661-298-0015 or dmullenger@itsma.com.
What's
Hot
Beyond the Elevator Pitch: How Marketing Can Help Sales Build a High-Credibility Conversation
A company's initial contact with a prospective customer leaves little
margin for error. The first conversation is the most critical and least
forgiving point of the entire sales process. Within the first 20 seconds
you must simultaneously establish relevancy and credibility—or you will
be dismissed as just more marketing noise in the relentless barrage of
sellers looking for attention.
Consider how your company's salespeople respond when a prospect asks
the simple question, "What do you do?" Do they respond with a cleverly
crafted and crisply canned "elevator pitch"? All too often, listeners
react to this kind of pitch by saying, "Oh, really … that's interesting."
Of course, that polite response is a good indicator that they're not interested
at all. Indeed, in the prospect's eyes, we diminish our own credibility
by presenting ourselves as just another self-absorbed vendor. Opportunities
simply never reveal themselves, because our introductory positioning statements
shut them down.
If an opportunity is in fact real, the response we should be getting
is: "That sounds like us. How do you do that?" Another positive outcome
could be, "We've been discussing that problem. Maybe you should be talking
to …." The key to making this conversational transition is to describe
what you do by describing what your current customers were experiencing
before you helped them.
This is where marketing comes in. With its understanding of customers,
marketing can help salespeople discuss issues that prospects may be experiencing,
without coming across as certain that they are experiencing them or that
your company can resolve them. If your prospects are indeed experiencing
those issues, they will probably be very open to exploring them further
with you. This is a powerful way of turning a brief opening monologue
into a value-rich dialogue that leads to real business results. When your
prospects believe that you understand their business, their responsibilities,
and therefore their problem, they will likely believe that you have a
solution to it. At that point, you will have established relevancy.
Consider that initial moment of contact. It must be carefully prepared,
highly relevant, and thoroughly rehearsed. Here is an example of the format:
We work with companies that are facing escalating manufacturing costs
and are looking at the possibilities of outsourcing. We help them analyze
the risks and potential benefits of outsourcing and have the capabilities
to provide the manufacturing services if their situation points to outsourcing
as a best alternative.
This takes roughly 20 seconds to say, but it covers a lot of ground.
Let's break the statements down:
We work with companies that are facing escalating manufacturing
costs and are looking at the possibilities of outsourcing. This
statement speaks to relevancy and positioning. You describe who you
are by the type of company you serve and major symptoms the prospect
might be experiencing. The customer now knows who you are and should
be thinking, "That sounds like me."
We help them analyze the risks and potential benefits of outsourcing.
We now introduce more specific relevancy via the concern they would
typically be struggling with. Notice the balance of analyzing the "risks
and potential benefits."
… and have the capabilities to provide the manufacturing services
if their situation points to outsourcing as a best alternative.
More relevancy. Here we state the value we can provide.
As you can see, this really isn't a pitch in the conventional sense.
There is actually a dialogue taking place within this short monologue.
You are addressing, in sequence, the questions that are popping up in
the customer's mind. Who is this person? What does he do? Is this about
me? Is it an issue I'm experiencing? When we establish relevancy, we are
providing customers with the information they need to answer these questions,
and they invariably agree to continue the conversation.
Unfortunately, too few companies take this matter very seriously. It
is typically handled in an ad hoc, uncoordinated way and in a presentation
format that salespeople have used so often with so many contacts that
it becomes even more embedded and more problematic. Many times, introductions
or "pitches" like these are multiplied across the sales force. Constantly
undermining one's credibility takes a major toll on market penetration
and profitability for both the individual salespeople and the companies
they represent.
Considering how much is at stake with regard to initial impressions and
their impact on perceived credibility, it is surprising how few enterprises
actually address this issue in a thoughtful and disciplined fashion. Marketing
can take a lead role in helping sales craft a relevant introduction to
the company, one that invites real dialogue. It must also ensure that
all supporting marketing materials and sales collateral speak to customer
issues rather than company capabilities.
There is much to gain—or lose—in the opening moments of a conversation.
It is critical to take the disciplined steps necessary to build credibility
in that initial contact, ensuring that the conversation continues and
deepens. Otherwise, your prospective customer will always be just that.
Jeff Thull is president and CEO of Prime Resource Group, where he
has worked with companies such as 3M, Microsoft, Shell, Siemens, Citicorp,
IBM, and Georgia-Pacific as well as many start-up companies. He is also
the author of a number of bestselling books, including his most recent,
Exceptional Selling: How the Best Connect and Win in High-Stakes Sales.
To download the first chapter of Thull's new book, visit www.primeresource.com.
On
the Job
Microsoft's ServicesRadio Transforms Communication with the Services Field
In May 2005, the senior vice president of Services at Microsoft laid
down a new mandate: an immediate halt of random and excessive communications
to Services field personnel. Not only did the company's existing communications
lack relevancy to the field, but there was such a high volume that most
of the recipients simply ignored what was coming their way from corporate
headquarters in Redmond, WA. Those who did want to stay abreast of news
in the Services organization found that they were either:
Unable to do so because they couldn't access the corporate network
from the field, or
Confused by the sheer number of conflicting messages, which made it
difficult for them to prioritize the work that would drive revenue.
Clearly, the communications team at Services headquarters needed to find
an entirely new way to communicate with this mobile—and disengaged—workforce,
and it needed to do it fast.
A New Approach
During interviews and meetings with representatives from the field, the
communications team realized that future communications needed to:
Provide role-specific and field-focused information, including best
practices around various customer sales and delivery scenarios.
Increase the field's connection to the Services organization's mission
and vision by clearly articulating services investments, tactics, and
goals.
Be available in a portable format that doesn't require connection
to the corporate network.
The team considered a number of different formats for the delivery of
important, relevant information, including newsletters, executive blogs,
and online communities, but none of them met all the criteria in their
list. And then the team hit upon the winning idea: a new audio program
called ServicesRadio.
"One of the big things we liked about the idea of doing a 'radio show'
is that it's easy for people to listen to while they're driving from customer
site to customer site," said Scott Armstrong, host of ServicesRadio and
a communications manager in Microsoft Services.
Delivered bimonthly via a mailed CD or downloadable file, the 70-minute
ServicesRadio program includes field roundtables during which high-performing
field employees share real-world examples of successful sales or engagements,
news briefs on key services initiatives and customer wins, and a 15–20
minute technical product discussion with Microsoft Services CTO Norm Judah.
Production
The program, of course, doesn't appear out of thin air. The communications
team spearheads a six-step production process that includes:
Content planning. The team brainstorms ideas for program content.
They focus on spotlighting field employees who are subject matter experts
or who have driven big wins.
Content acquisition. The team conducts prep interviews with
participants during which they review the objectives of the participant's
segment and create a segment outline.
Content development. The program is recorded at Microsoft Studios
to ensure the highest audio quality.
Review. All segments are transcribed so that segment participants
can review them before they are finalized. Once the participants have
approved the content, the communications group lead reviews each segment
and suggests any last-minute changes or edits that need to be made.
Production. Microsoft Studios creates a master CD and sends
it to a duplication vendor. Next, the copies are sent to a fulfillment
vendor for packaging and shipping.
Distribution. This step has been challenging due to the global
nature of Microsoft's field. Today, a CD is delivered directly to each
employee through the interoffice mail system. The program is also available
through an internal Web site that allows employees to download or stream
content.
Results
Now in its eighth edition, ServicesRadio has increased the effectiveness
of the communication from Services headquarters to the field, as indicated
by an 83% satisfaction rating. So far, approximately 1,100 field employees
have subscribed to ServicesRadio, and the team is planning to partner
with the enterprise sales organization to promote it to a wider audience
through a new internal podcast platform.
All in all, the communications team has found the audio program to be
an effective and creative solution for increasing field engagement, improving
the field's understanding of the Microsoft Services organization's mission
and goals, and driving business impact.
Generally accepted to mean meeting our needs today without compromising
the quality of life of future generations, sustainability is without doubt
a big issue that all of us must address. But what role can marketing play
in achieving sustainability? And to what extent can we influence this
enormous subject area?
Here's something that may surprise you: IT equipment is responsible for
approximately 2% of greenhouse gases—roughly the same percentage as emissions
from all the world's airlines. With this in mind, it is important that
IT organisations be part of the sustainability agenda, not only by employing
sound business practices and being themselves well regarded as sustainable
enterprises, but by ensuring that the services they provide educate, promote,
and enable sustainable practices for others, whether employees, customers,
or shareholders.
One trend that has been under the spotlight in recent years is offshoring.
Incurring both positive and negative social implications for both home
and host nations, the balance with regard to sustainability appears to
lie in the way a company employs the practice of offshoring—and the company's
actions towards the various people and communities affected. If your organisation
is the provider of offshoring services, your responsibilities are viewed
by many to extend even further: Not only must you ensure that your own
actions are responsible ones, you must ensure that your customers are
using your services in a responsible way, because their actions
can affect your reputation. When you consider the relationship
between reputation and brand and the effect it can have on business performance,
the reason we must help drive strategy in this space becomes increasingly
clear.
A brief look down the list of companies included in the Dow Jones Worldwide
Sustainability Index demonstrates that a good number of us take this subject
seriously. According to Ninder Takhar, head of marketing sustainability
at BT Global Services, "For a number of years, BT has been working towards
operating in a way that either sustains or enhances society, the environment,
and the economy. Our leadership in the telecommunications sector of the
Dow Jones Sustainability Index for the last six years is recognition of
our efforts in this area. We will now be offering consultancy and solutions
to our global clients to help enterprises to develop sustainable operations
inside their organisations and externally with suppliers, customers, and
stakeholders."
Sometimes trying to convince a client of the importance of sustainability
can be an uphill struggle if his or her own organisation has not yet opened
its arms to the idea. In a special report, CIO.com suggested that the
secret to getting more CIOs to take sustainability seriously is to demonstrate
that it is an opportunity for them rather than yet another cost or bureaucratic
burden. Although changes to the data centre setup, for example, rarely
directly affect the CIO (power costs typically sit within the remit of
facilities), there are certainly areas where CIOs have achieved the holy
grail of business practice: turning cost centres into revenue streams.
One such example involves the disposal of old equipment. The implications
of the EU's Waste Electrical and Electronic Equipment (WEEE) Directive
will be seen by many as adding extra cost to the business, but through
a considered IT asset management strategy, including upgrades for internal
use and sales to the second-hand user market, it needn't add cost.
In summary, strategy, balance, and a long-term view are essential for
an organisation to have credibility when it comes to sustainability. It
is more than a one-off message or PR spin, and it is more than an internal
view; sustainability is about ensuring that the products and services
we offer uphold sustainable practices in the organisations we provide
them to. If we get this right, the world really will be a better place.
Research Desk
Ask ITSMA: What's the Best Reporting Structure for the Head of Services
Marketing?
Each month, ITSMA receives a number of queries through Ask
ITSMA, a resource designed to give members a quick and easy
way to get insight on important services and solutions marketing
questions they face. In this column, we will publish some of our
favorite questions along with excerpts from our replies.
Question: What is the "typical" reporting relationship
for the head of services marketing?
Answer: We've seen every reporting structure under the sun.
Many organizations have the head of services marketing reporting into
the head of the services business, with a dotted line into the head
of marketing overall. This type of relationship ensures alignment with
the goals of the services organization and stays "integrated" with
corporate marketing. We've also seen it work well the other way—direct
line to the CMO and dotted line to the head of services. Reporting
into field marketing can relegate you to "lead development," and
most services marketing organizations want to be more strategic than
that. Services marketing organizations that report into product marketing
often have trouble because product marketers don’t understand
the unique challenges of marketing and selling intangible services.
However, if your company is looking to become more solutions-oriented,
having services marketing reporting to and working closely with the
product marketing group could be very helpful. So, bottom line, there
is no "best" reporting structure; the best reporting structure
for your particular business should reflect your company's most important
priorities and goals.
Do you have a services marketing question? Visit Ask ITSMA to access
our experience, insight, and research results.
One more reason to attend ITSMA events: You’ll pick up some
free swag that might just save your holiday—our lovely lime green
luggage spotters.
Jerry Dixon, an associate director with ITSMA Europe, shared this
story about his recent vacation to Cyprus and Turkey:
On our way out we checked in seven items of baggage between six
of us, but (it turned out later) they only put labels on six of them.
The one they missed was mine so it sat at Stanstead airport with
nowhere to go! When we got to Cyprus and discovered my bag hadn't
made it you can imagine the panic—the bag had important paperwork
in it as well as all my clothes for two weeks. I talked to the authorities
who, eventually, logged the loss (although they said that if it didn't
have the official check-in label, there was nothing they could really
do—it didn't exist in the system). I did get a contact number
for a customer service rep at Stanstead and made the call, but wasn't
holding out much hope for her finding a rather ordinary blue bag
in the piles of luggage lurking at the airport. Then I remembered
the ITSMA luggage spotter, added this to the description, and within
seconds (literally, seconds!), the lady had identified it. She put
it on the next flight and I picked it up 24 hours later, very relieved
indeed.
This was the first time I'd used my luggage spotter. Amazing coincidence!
The ITSMA luggage spotter saved my holiday!
I know this sounds like a naff advertorial but it is exactly what
happened.
You can pick up an ITSMA luggage spotter of your very own at any of
these upcoming events:
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News & Notes