The A to Z of Small Business Sales - Loyalty and the Value of Loyalty - Part 1
The A to Z of Small Business Sales - Loyalty and the Value of Loyalty - Part 1
Why is loyalty so important? Because it is less expensive to sell to existing customers than to find new ones. Or at least, that’s how the theory goes. I wonder though.
A well-known quote by the author, socialite and dilettante, Oscar Wilde, has “accountants knowing the cost of everything and the value of nothing”. The value proposition is an equally well-known marketing topic frequented by the marketing pros in big corporations.
If you ask about and discuss value propositions, you will likely be considering new sales to new customers or new sales to old customers. You’re likely talking about the sales and not the customers though.
What’s the value proposition for customer loyalty? That’s a question worth considering. What’s the value proposition for company loyalty to customers?
In 1996, Charles F. Fombrun wrote an intriguing book titled “Reputation - Realizing value from the corporate image”. It’s printed by Harvard Business School Press. Blessed by Harvard revered by Corporations makes it worth reading - I guess.
Today, realizing value from corporate image seems to me to be a non starter. What corporate image? Enron et al? And beyond Enron consider all the inquiries by New York’s Attorney General and the United States Senate. Indeed, what image?
Mr. Fombrun starts his book with a quote from Shakespeare - “The purest treasure mortal times afford Is special reputations; that away, Men are but gilded loam or painted clay.” The quote is from Richard II, the Richard of “my kingdom for a horse” fame. Where was the loyalty when Richard needed a horse?
A more intriguing Shakespearean quote for the book might have been from Macbeth. “O what a wicked web we weave when first we practise to deceive.” Perhaps, even talking about value leads us to deceive? Self deception.
Yet there is value in understanding how Mr. Fombrum ‘frames’ (a deceptive word) reputation. He gives it four clear components: credibility, reliability, trustworthiness and responsibility and offers the following definition of a ‘corporate’ reputation:
“A corporate reputation is a perceptual representation of a company’s past actions and future prospects that describes the firm’s overall appeal to all of its key constituents when compared with other leading rivals.”
So there’s the value of reputation from a corporate perspective. It should also give small businesses an idea of where their opportunities are.
First a ‘do’ - add the customer and people to this definition - better still put the customer first. Secondly a ‘don’t do’ - do not be a leading rival of a big corporation - if you do, you are no longer a small business - you are a set past actions and future prospects - nothing to do with people.
People and personality - how they communicate, how they are treated, cared for, supported - is what makes a small business successful. And with people and personality lies the reputation of a small business. Interesting choice of words - lies - don’t you think? Back to Richard II - uneasy lies the head.
After many years in corporate roles and as a small business owner, today I’m a writer. My pith and pitch are words. I play with and on words. I have fun with words and the ideas they express. If I’m a salesman, I’m selling ideas and concepts dn the notion of creating awareness. Today, I’m suggesting what is perceived to work for corporations, perhaps doesn’t and in any case often doesn’t work for small business.
Corporations are large hierarchical organization with investors, staff departments and investors. No wonder they’re impersonal. In such an environment people get lost - it’s called the fog of business. Why is a Human Resources department called human resource? Because a human is seen as just another commodity needed to make the business work.
Small business focussing on people, on customers, on awareness of individual needs and problems and on relationships means the small business will be ‘resourceful’ and adapt to the needs not control them.
I started this article by suggesting loyalty was an illusion. It may be. But does it have to be? Let me suggest that it starts by how you treat people. Where it ends, I don’t know. But in my next writing on the subject, I’ll comment on the surprising phone call that led me to think about loyalty.
The A to Z of Small Business Sales Loyalty and the Value of Loyalty Part 1 - To learn more about this author, visit Norm Tucker's Website.
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Much is made of retaining customer loyalty? Why? Because typically it does not happen. Perhaps loyalty is an illusion in this day and age? Perhaps it always was? Shakespeare wrote many plays predicated on disloyalty.
Why is loyalty so important? Because it is less expensive to sell to existing customers than to find new ones. Or at least, that’s how the theory goes. I wonder though.
A well-known quote by the author, socialite and dilettante, Oscar Wilde, has “accountants knowing the cost of everything and the value of nothing”. The value proposition is an equally well-known marketing topic frequented by the marketing pros in big corporations.
If you ask about and discuss value propositions, you will likely be considering new sales to new customers or new sales to old customers. You’re likely talking about the sales and not the customers though.
What’s the value proposition for customer loyalty? That’s a question worth considering. What’s the value proposition for company loyalty to customers?
In 1996, Charles F. Fombrun wrote an intriguing book titled “Reputation - Realizing value from the corporate image”. It’s printed by Harvard Business School Press. Blessed by Harvard revered by Corporations makes it worth reading - I guess.
Today, realizing value from corporate image seems to me to be a non starter. What corporate image? Enron et al? And beyond Enron consider all the inquiries by New York’s Attorney General and the United States Senate. Indeed, what image?
Mr. Fombrun starts his book with a quote from Shakespeare - “The purest treasure mortal times afford Is special reputations; that away, Men are but gilded loam or painted clay.” The quote is from Richard II, the Richard of “my kingdom for a horse” fame. Where was the loyalty when Richard needed a horse?
A more intriguing Shakespearean quote for the book might have been from Macbeth. “O what a wicked web we weave when first we practise to deceive.” Perhaps, even talking about value leads us to deceive? Self deception.
Yet there is value in understanding how Mr. Fombrum ‘frames’ (a deceptive word) reputation. He gives it four clear components: credibility, reliability, trustworthiness and responsibility and offers the following definition of a ‘corporate’ reputation:
“A corporate reputation is a perceptual representation of a company’s past actions and future prospects that describes the firm’s overall appeal to all of its key constituents when compared with other leading rivals.”
So there’s the value of reputation from a corporate perspective. It should also give small businesses an idea of where their opportunities are.
First a ‘do’ - add the customer and people to this definition - better still put the customer first. Secondly a ‘don’t do’ - do not be a leading rival of a big corporation - if you do, you are no longer a small business - you are a set past actions and future prospects - nothing to do with people.
People and personality - how they communicate, how they are treated, cared for, supported - is what makes a small business successful. And with people and personality lies the reputation of a small business. Interesting choice of words - lies - don’t you think? Back to Richard II - uneasy lies the head.
After many years in corporate roles and as a small business owner, today I’m a writer. My pith and pitch are words. I play with and on words. I have fun with words and the ideas they express. If I’m a salesman, I’m selling ideas and concepts dn the notion of creating awareness. Today, I’m suggesting what is perceived to work for corporations, perhaps doesn’t and in any case often doesn’t work for small business.
Corporations are large hierarchical organization with investors, staff departments and investors. No wonder they’re impersonal. In such an environment people get lost - it’s called the fog of business. Why is a Human Resources department called human resource? Because a human is seen as just another commodity needed to make the business work.
Small business focussing on people, on customers, on awareness of individual needs and problems and on relationships means the small business will be ‘resourceful’ and adapt to the needs not control them.
I started this article by suggesting loyalty was an illusion. It may be. But does it have to be? Let me suggest that it starts by how you treat people. Where it ends, I don’t know. But in my next writing on the subject, I’ll comment on the surprising phone call that led me to think about loyalty.
The A to Z of Small Business Sales Loyalty and the Value of Loyalty Part 1 - To learn more about this author, visit Norm Tucker's Website.
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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Cheryl MatthynssensCheryl is a life skills coach, licensed Chemical Dependency Counselor and a 20 year entrepreneur. Cheryl's dedication to achieving a life of balance led to her expanding her teaching from the simple managing of life's daily challenges to adding financial well being as well. A direct marketer with DrinkACT, she is gaining ground in the online community with her concepts of making sure business owners, entreprenuers and employees have well rounded life styles. She opened up a small affiliate site - The Balance Guide- to help others find resources for mental and emotional well being. Visit Cheryl's blog to see more of the diversity beyond business she has began offering online at www.thebalanceguide.blogspot.com - Visit Cheryl Matthynssens's Website |
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