Marketing

Could this Pandemic Create New Business Opportunities?

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Originally posted on LinkedIn.com/in/chipn

For most businesses, now is a time of caution and uncertainty. Mitigation and emergency planning are likely underway. The CDC has provided solid guidance, and new information is forthcoming daily. Communication Plans are being rolled out and revised as needed. Travel and meetings are being curtailed. Disruption may become the new normal for the next several months.

Road sign that reads, "Uncertainty Just Ahead" with a background of storm clouds.

Alexander Fleming, the Nobel Prize winner who invented Penicillin, is quoted as saying:

“The unprepared mind cannot see the outstretched hand of opportunity.”

More people will be working from home, face-to-face meetings will be limited, large gatherings will be avoided, and travel to those meetings or gatherings. Working from home can be challenging for people not accustomed to it, so helping them transition may be very important to your financial bottom line.

Collaboration tools like Slack, Basecamp, and Asana can help maintain productivity and foster necessary interaction. Some tools include video conferencing; tools like Zoom or Webex can help internally and externally. Seeing the person you are speaking with increases engagement and leads to more effective communication by helping you spot nuances, such as facial expressions, that could otherwise be missed.

Secure, easy-to-implement tools (cloud-based solutions have an advantage here) that are easy to learn and use can be a cost-effective way to keep your business on track. Another benefit is building an effective distributed workforce.

But wait, there is more!

You may have important projects you can pull in and start now. That is another way to keep your teams engaged and focused. This could also be an opportunity to enhance skills with online training or research new technologies or business models.

This could also be a great time to buy and sell products and services. Business demands could temporarily decrease in many market segments.

  • Sales organizations could use that opportunity to offer appealing deals to customers and prospects.
  • Buyers could use their ability to purchase quickly to secure better deals during this lull in business.

Reasonable concessions can be mutually beneficial and a boon for both parties.

Negative events like a pandemic are not ideal and should not be taken lightly, but they can create opportunities to advance your business and position you for even greater success once the situation is under control. It is like that old saying, “When life gives you lemons, make lemonade.”

What are you Really Selling? (Hint: Solutions)

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Understanding pain and need comes from asking good, targeted questions, listening to the response, and confirming or drilling down to make sure you understand the problems, their impact, and what would be better if those problems were resolved. This is the foundation of solution selling.

There is a black cast iron pot, filled with gold coins, with gold coins overflowing on the ground near the base of the pot.

Once you understand what your prospect needs and why they need it, you can connect with them meaningfully to increase your win rate by providing a solution to their problem.

It is interesting to see Sales and Marketing people focus on features, performance, cost, and even value without linking them to a company’s specific business impact. That often goes hand in hand with showing 20 slides and focusing on every major feature, which is a great way to alienate your prospect.

A sales adage from the 1940s (source) asserts, “No one wants a drill. What they want is the hole.” Today, that basic understanding of why people and companies buy is often lost in sales and marketing messages. Sales success is all about solving problems and satisfying needs.

Several years ago, my team and I were selling a new Analytics Database that was genuinely different. Still, our message matched every other database vendor: “70% – 100% faster than every other product.” It is nearly impossible to differentiate your product using a non-differentiated message. Don’t treat your product or service as a commodity if it isn’t one.

I flipped the messaging to focus on business needs. We created a weekly webinar focused on Why Fast Matters. Query response time is important, but responsiveness to customer needs and requests is essential. What if they didn’t have to wait a week or two to create new indexes or a month to update a Star Schema? They could just run queries as-is, maybe wait a minute instead of a second or two, and have what they need then and there. That message resonated; we sold the first 50% of that product globally. When the Australian team began using our messaging, their sales also increased. Funny how that works.

Effectiveness is all about results and intended outcomes. Efficiency is about achieving those results with the least time and effort invested. It doesn’t mean that we are looking for a lazy approach to find a win. Instead, it is about identifying repeatable patterns that cut out unnecessary activities, speed up the sales cycle, minimize related costs, and maximize wins.

To better understand what you are selling, view it from your prospect’s perspective. What struggles are they likely facing? Where are the greatest opportunities to help their type of business? Are you analyzing data to attempt to assess their unmet needs? Your insight can become a huge differentiator, especially if you can teach them different and better ways to do something (à la the Challenger Sales Model).

What is the difference between your prospect company and its main competition? This analysis requires a general understanding of the problem space and a more specific understanding of the prospect company, its history, and 2-3 main competitors. It also requires an honest account of how your company and products compare to the competition so you can play up your strengths and limit investment in areas where the fit is weaker.

The next item to focus on is messaging. Below are a few examples from my career –

  1. Analytics & Big Data – The focus here is often on data volume, data currency, query speed, cost, maintenance, and downtime. Those things become essential later in the sales discussion, but initially, companies want to know what problems their product or solution will solve.
    • Some of my fastest deals sold because I showed them how to make better decisions faster and/or identify minor problems before they became major problems. Avoiding problems and unplanned outages were critical elements of the messaging.
    • In one case, I closed a significant deal in less than three months by focusing on how a company could provide customers with five years of transactional data. Those customers could use the data to make better purchasing decisions in less time than the current system took to analyze six months of data. Their sales increased after implementing this modernized system. The winning message was that it helped customers make better buying decisions faster.
  2. Embedded Products – While many companies focus on APIs, features, or cost per unit, I focused on how the product made things better and easier to manage, improving customer support and Customer Satisfaction.
    • I closed a $1.1 million deal in less than two months to a medical device company by focusing on the life cycle of those devices (often 10-15 years) and how their customers needed consistency from machine to machine. Consistency over time was the winning message here.
    • After being approached by a Defense Contractor for a relational database product for a new Flight Simulator system, I changed the discussion to the complexity of flight control systems, the need to correlate 30+ operational systems in real-time, and the importance of taking a verbal command and translating it to specific commands for each related system. That led to selling a NoSQL product ideally suited for this complex environment. Letting our software handle the highly complex workload helped us win this deal.
  3. Consulting Services – These were not contracting or body shop services (commodities) but actual Business and Technical Consulting services with high visibility and impact. In these cases, our expertise, experience, and track record of success in different but demanding scenarios provided confidence. These were often multi-phase engagements to prove our value before making a significant commitment.
    • In a bid against two well-established competitors, we won a deal with a large Petroleum company worth nearly $500K. The proposal included information we uncovered about the system and use case and later verified with the prospect, a section on our people and past projects, and a high-level project plan with firm-fixed pricing. We won the bid, and I later discovered that our cost was $50K higher than the largest competitor and $100K more than the other competitor. The customer told me, “Your proposal demonstrated the understanding of who we are and what we need, and that confidence provided the justification to select your company and pay a premium to have the job done right the first time.”
    • My first million-dollar deal was with a company where we demonstrated our ability to solve problems. They knew they needed help but weren’t sure where. I created a “Pool of Days” concept that provided flexibility in the work performed (tasks, deliverables, and scheduling) but had minimum monthly burn rates and an expiration date to protect my company. The winning messaging this time was that flexibility and the ability to accommodate changing needs without introducing significant risk or additional cost were better ways to buy consulting services. This approach led to many other similar deals with other companies.

The common theme across these examples is helping companies solve their specific business problems. Even when technology was central to the message, focusing on better outcomes for that prospect and their customers was essential. Value matters, but positive results and better outcomes matter even more for purchasing decisions.

Nobody wants to take a chance on a new vendor and be responsible for a high-profile failure. Building confidence early makes a huge difference, and following through to successful implementation creates happy customers who become loyal customers who provide references and referrals.

Success starts with selling what you can do for your prospects from a business perspective. You solve their problems with the solutions they need and avoid getting lost in the noise of unfocused messaging from most of your competition.

Good Selling!

The Future of Smart Interfaces

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Recently, I was helping one of my children research a topic for a school paper. She was doing well, but the results she was getting were overly broad. So I taught her some “Google-Fu,” explaining how to structure queries to get better results. She replied that search engines should be smarter than that. I explained that sometimes the problem is that search engines look at your past searches and customize results as an attempt to appear smarter or to motivate someone to do or believe something.

Unfortunately, those results can be skewed and potentially lead someone in the wrong direction. It was a good reminder that getting the best results from search engines often requires a bit of skill and query planning, as well as occasional third-party validation.

Then the other day I saw this commercial from Motel 6 (“GasStation Trouble”) where a man has problems getting good results from his smartphone. That reminded me of seeing someone speak to their phone and get frustrated by the responses. His questions went something like this:

“Siri, I want to take my wife to dinner tonight, someplace that is not too far away, and not too late. And she likes to have a view while eating, so please look for something with a nice view. Oh, and we don’t want Italian food because we just had that last night.”

Just as amazing as the question being asked was watching him ask it over and over again in the exact same way, each time becoming even more frustrated. I asked myself, “Are smartphones making us dumber?” Instead of contemplating that question, I began to think about what future smart interfaces would or could be like. 

I grew up watching Sci-Fi computer interfaces like “Computer” on Star Trek (1966), “HAL” on 2001: A Space Odyssey (1968), “KITT” from Knight Rider (1982), and “Samantha” from Her (2013). These interfaces had a few things in common:

  1. They responded to verbal commands.
  2. They were interactive – not just providing answers, but also asking qualifying questions and allowing for interrupts to drill down or enhance the search (e.g., with pictures or questions that resembled verbal Venn diagrams).
  3. They often suggested alternative queries based on intuition. That would have been helpful for the gentleman trying to find a restaurant.
Digitized image of a man's face overlaying the globe

Despite having 50 years of science fiction examples, we are still a long way off from realizing the goal of a truly intelligent interface. Like many new technologies, they were originally envisioned by science fiction writers long before they appeared in science.

A spectrum of common beliefs about modern interfaces seems to exist. On one end, some products make visualization easy, facilitating understanding, refinement, and drill-down of data sets. Tableau is an excellent example of this type of easy-to-use interface. At the other end of the spectrum, the emphasis is on back-end systems – robust computer systems that digest huge volumes of data and return the results to complex queries within seconds. Several other vendors offer powerful analytics platforms. In reality, you need a strong front end and back end to achieve the full potential of either. 

But there is so much more potential…

I predict that within the next 3 – 5 years, we will see business and consumer interface examples (powered by AI and Natural Language Processing, or NLP) that are closer to the verbal interfaces from those familiar Sci-Fi shows (albeit with limited capabilities and no flashing lights).

Within the next 10 years, I believe we will have computer interfaces that understand the request (not just the string of words), intuit our needs, and quickly and easily generate correct answers. While this is unlikely to be at the level of “The world’s first intelligent Operating System” envisioned in the movie “Her,” and probably won’t even be able to read lips like “HAL,” it should be much more like HAL and KITT than like Siri (from Apple) or Cortana (from Microsoft).

Siri was groundbreaking consumer technology when it was introduced. Cortana seems to have taken a small leap ahead. While I have not mentioned Google Now, it is somewhat of a latecomer to this consumer smart interface party, and in my opinion, it is behind both Siri and Cortana.

So, what will this future smart interface do? It will need to be very powerful, harnessing a natural language interface on the front end with an extremely flexible and robust analytics interface on the back end. The language interface will need to take a standard question (in multiple languages and dialects) – just as if you were asking a person – deconstruct it using Natural Language Processing, and develop the proper query based on the available data. That is important, but it only gets you so far.

Data will come from many sources – things that we consider today with relational, object, graph, and NoSQL databases. Structured and unstructured data with inconsistent formats must be joined and filtered quickly and accurately. In addition, context will be more important than ever. Pictures and videos could be scanned for facial recognition, location (via geotagging and image searches), and, in the case of videos, analyze speech and background noises. Relationships will be identified and inferred based on a variety of sources, using both data and metadata. Sensors will collect data from almost everything we do and (someday) wear, providing both content and context.

Stylometry will identify outside content likely related to the people involved in the query and provide further context about interests, activities, and even biases. This is how future interfaces will truly understand (not just interpret), intuit (so it can determine what you really want to know), and then present results that may be far more accurate than we are used to today. Because the interface is interactive, it will allow you to organize and analyze subsets of data quickly and easily.

So, where do I think that this technology will originate? I believe that it will be adapted from video game technology. Video games have consistently pushed the envelope over the years, driving the need for higher-bandwidth I/O capabilities in devices and networks, better and faster graphics capabilities, and larger and faster storage (which ultimately led to flash memory and even Hadoop). Animation has become very lifelike and will someday be created with a few simple commands. Games are becoming more responsive to input from multiple sources, and may someday use things like eye movement for guidance. It is not a stretch to believe that the next generation of smart interfaces will come from this direction or something similar, like leading-edge defense technology (rather than from the evolution of current smart interfaces).

Someday, it may no longer be possible to “tweak” results through the use or omission of keywords, quotation marks, and flags. Additionally, it may no longer be necessary to understand special query languages (SQL, NoSQL, SPARQL, etc.) and syntax. We won’t have to worry as much about incorrect joins, spurious correlations, and biased result sets. Instead, we will be given the answers we need – even if we don’t realize that this was what we needed in the first place – which will likely be driven by AI. At that point, computer systems may appear nearly omniscient.

When this happens, parents will no longer need to teach their children “Google-Fu.” Those are going to be interesting times indeed.

What’s the Prize If I Win?

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In consulting and in sales, there is a tendency to believe that if you show someone how to find that proverbial “pot of gold at the end of the rainbow,” they will be motivated to do so.  Seasoned professionals tend to ask, “What problem are you trying to solve?” to understand whether there is a real opportunity.

There is a black cast iron pot, filled with gold coins, with gold coins overflowing on the ground near the base of the pot.

Sometimes a mere pot of gold just isn’t enough to motivate. Usually the motivation is something very personal. What’s in it for them? Not what’s in it for me?

The skill is determining what matters most to the decision-maker and in what order, then showing how the proposed solution will bring them closer to achieving their personal goals.

Case in point. Several years ago, I tried to sell a packaged Business Intelligence (BI) system built on our database platform to the customers most likely to need it. Qualification performed – check. Interested – check. Proof of value – check. Quick ROI – check. Close the deal – not so fast…

This application was a set of dashboards with 150-200 predefined KPIs (key performance indicators). The premise was that you could quickly tailor and deploy the new BI system with little risk (finding and validating that the needed data was available to support their KPIs was the biggest risk, but one we could identify up front). The business impact and ROI were there, and we could deliver tangible value at half the cost of a typical similar implementation. Who wouldn’t want that?

I spent several days onsite with the prospect, identified areas of concern and opportunity, and used their data to quantify the potential benefit. By the end of the week, I could show the potential for an 8x ROI in the first year. Remember, I estimated this using their data, not random or industry figures. Being somewhat conservative, I suggested that even half that amount would be a big success.  Look – we found the pot of gold!

Despite this, the deal never closed. This financial services company had a lot of money, and the CIO had a huge budget. Saving $500K+ on this project would be nice, but it wasn’t essential. While the impact was there, the urgency was lacking.

I later learned he was pushing forward an initiative of his own that was highly visible. The new system I proposed could have become a distraction, and he did not need that reputational risk. Had I made this determination sooner, I could have easily repositioned the offering to better align with and support his agenda.

For example, the system could have shifted its focus from financial savings to project and risk management for his higher-priority initiative. The KPIs could be on earned value, scheduling, and deliverables.  This probably would have sold, as it would have been far more appealing to this CIO and supported what was important to him (i.e., his prize if he wins).  The additional financial savings initially identified would be the icing on the cake, to be reinvested later.

Several lessons emerged from this effort. In this instance, I focused on my personal pot of gold (based on logic and common sense) rather than on my customer’s priorities and prize for winning. That mistake cost me this deal, but it is one I have not made since – helping me win many other deals.

The Power of Simplicity

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“If you can’t explain it simply, you don’t understand it well enough.”  – Albert Einstein

In the first part of my career, I didn’t care much for consultants. My experience was that they would come in, tell you what to do, and then leave victoriously while we were stuck trying to implement something that just wouldn’t work. They seemed to make everything seem so complex—often to justify their cost.

Then, I met an amazing consultant who shared something valuable with me. He explained what he believed differentiated a true consultant from a contractor (something I wrote about a decade later in a Tech Republic article).  He then made me aware of the Einstein quote above. This was one of those pivotal moments in my career.

For many years, I have met many interesting people. Some seemed to try to intentionally obfuscate even the easiest things to make themselves seem brilliant. Others took such a circuitous route that you sometimes forgot what you were trying to understand and fix. And sometimes explanations were just so tangential that the main point was lost entirely. There are likely many reasons for these experiences – some intentional and many not. The real lesson learned is that it wasn’t just consultants who can be incomprehensible, and that clear, comprehensible communication is critical to effectiveness.

Just think about the power of a well-crafted “elevator pitch” when you meet someone new or the ability to quickly explain how your company differentiates itself from the competition (piquing their curiosity, making you the more interesting, or helping your company become the better/safer choice in your prospect’s mind).

Or being able to articulate your business strategy in a way that people understand (and can explain to others). That understanding can create interest, leading them enough to want to learn more and become part of making that happen.

The best consultants, as do the best employees/managers/executives/business owners, have this ability to explain something simply. While this is only one attribute of success (likability, powers of persuasion, integrity, knowledge, and skills are others), it is something that can be taught, developed, and consistently applied.

The power to “explain it simply” is the power to make a difference through better understanding, and that is what communication is all about!