How to get through the credit crunch - keep the focus

I will start by admitting that I do not understand the losses made by the banks as a result of the sub prime lending in the US. In the Daily Telegraph it stated that the losses to the British banking system of more than £20billion are equivalent to 3% of our GDP. The US expect to lose £72billion, Japan £5billion and Europe will lose £61.6billion.

These are huge figures. But as I say I don't really understand how they made such a hash of it. It would appear that there are humungous numbers of payment defaulters in the US.

Moving on however is the impact it will have on our economy. The DT Business section highlights a downturn in M&A activity as a direct consequence of the credit squeeze. Banks no longer have the money to fund them or if they do it will be at very high interest rates.

So what does the creative agency do to get through this turmoil? Are there any benefits that can be gleaned from this situation? The answer is a most emphatic yes - we will all have to become leaner and fitter!

I believe that the answer is to go back to basics.

• Build a strong reputation - become famous for something
• Deliver value laden services or products - exceed client s expectations
• Build long and strong relationships - people work with people they like, know and trust
• Manage the cash - do everything that is legal, decent, honest and truthful to manage cash
• Look after the talent - Good ones go, the poor ones stay. Make sure you give them no reason to move
• Promote yourself as widely and as effectively as possible - internet marketing affords cost effective new ways to get in front of new clients
• Be innovative - what got you there wont keep you there so be on the alert for new ideas
• Get the processes right - efficiency means using the scarce resources where they generate the best returns
• Watch the profit line - winning on price is the fools way to grow. Keep the margins high!
• Enjoy yourself - get some harmony back into your life!

Simple stuff but hard to implement. Done well they will ensure you get through the crisis.

See you on the other side!

Persistance versus Persecution!

"Life is difficult" according to the opening line to the book "The Road Less Travelled" by Scott Peck

But is is not the only thing that is difficult

Selling is difficult.

And one of the most difficult things to balance is the need to make contact with the client without appearing to stalk them.

It is a fine line to tread. Too many calls and emails and the client will think that they are being stalked and will eventually kick you out, not for any rational reason to do with your offer or the sale but because they cannot stand the bombardment of emails and telephone calls.

However, leaving them alone and not communicating with them will almost certainly mean that they drift off to other projects or worse still to your competitors.

The secret is to keep in contact by offering relevant information. Keep them posted with updates, news items, feedback. The headline in the communication could be - "I saw this and thought of you" as it summarises what you might tell them.

Sales Pitch - you present to real people not automatons

Buyers are people! Never forget that! Even if they try their hardest not to behave like a real person, behind the façade is a human being with all the frailties that you and I possess.

Buyers are people! Buyers have their careers to think of as well as their company’s long term goals. A bad decision can negatively impact a career, hence the motto “No one ever got fired for buying IBM”. Think about the buyer as a colleague rather than the enemy or the barrier to entry.

Buyers are people! Buyers are looking to minimise the risks. The service they are looking to buy has certain risks attached to it. By taking the time to minimise the risks the agency stands a better chance of being awarded the contract.

Buyers are people! A sales pitch, tender or a beauty parade is a form of mask worn by commercial buyers to hide behind. Find ways to get behind the mask to interact with the people. Always remember that people buy from people that they know, like and trust.

When you enter into a sales pitch remember that one of the goals is to reduce the risk to the buyer as a person as well as in their role. Get to know them and you are well on the way to success.

If you want to know more, call me on 07956 532963 or link to the website www.credence-uk.com

or go to my Squidoo lens for more information

After the sales pitch - the debrief

It is essential that you follow up after a sales pitch even if you have won.

Winning or losing is simply an outcome of a complicated decision making process that you want to understand in its entirety. By having a debrief it allows you to get inside the heads of the prospective client and understand more about what is driving them and their decision making process

Here are a few questions to consider:

• What did you like/dislike about our written submission?
• What did you like/dislike about our presentation
• What did you like/dislike about the way we handled the entire pitch?
  
• Do you think that we understand your business and the problems you are facing?
• What were the key factors in deciding who you would use?
  
• Who else was pitching and why did you select them to pitch?
• Having completed the pitching process, is there any other way that you might have considered doing it?
• Would you consider asking us to pitch for other projects?
• If yes, what projects are forthcoming?

There are more but the point that I am trying to make is that you carry out a formal debrief.

Done well it will build up the relationship with the prospective client and may even open doors for more projects.

Feel their pain - how to improve your sales pitch

When constructing your sales pitch it is vital that you prioritise the information you will present.

The most important and therefore the highest ranked is - what is the client looking for. What is their problem, their pain, their barrier to success. Be really diligent and use your experience and business acumen to discern what they want. Yes, they might want increased visibility for a new product in a new market. But why? What is the driver for that. What is pushing them to introduce a new product? Find out all you can

The least important pieces of information are your credentials. Assume they know enough about you by being asked to be in sales pitching process. Don't waste time telling people all about your past, they can find that out by themselves.

Be the Pitch Doctor and ease the clients pain! Do you recall the song " A spoonful of sugar helps the medicine go down"? Be the agency with the best bedside manner

Pitching bloopers

Credence is compiling a list of pitching bloopers such as these below. If you can add to it please let me know. They will be published so hide the details if needed

Cheeky!

A colleague of mine had successfully completed the pitch and was being entertained by our Middle Eastern hosts in Dubai. Half way through the meal he passed wind thinking it was a local custom. The head of the Jordanian delegation remarked "You might be thinking that you are engaging in a local custom. You are not. That is the sole preserve of children and animals.

Cheers!

After a significant pitch to a Japanese delegation, the MD turned to the Chairman of the Japanese conglomerate and offered the following toast "To Pearl Harbour!"

Tangled wires

At a pitch by Pratt and Whitney, the first speaker tripped over the microphone cable, knocked over the lectern, cut his hand on a shard of glass and tore his jacket on the upturned lectern. When his partner walked on to the stage a witty little wag said very loudly "Ah! Mr. Whitney I presume?"

Any more??

please email me on bloopers@Credence-uk.com

Perfect Pitching - rehearse it first

For many of us the idea of pitching is against all we stand for. For us the beauty parade should be a thing of the past. It is old fashioned, costly, time consuming and judging by feedback from clients it is not foolproof.

Ideally you should not be pitching for new work. If you get involved with the tendering process and or build a relationship with the prospective client there should be no reason to pitch. They should trust you to deliver the goods.

However, we do not live in a perfect world and culturally here in the UK we are all asked to pitch.

Here are the top 5 tips that will help you to maximise the chances of winning the pitch:

1. Understand what the client really wants. Delve in deeper. Ask the awkward questions. Challenge their thinking
2. Find out if you have a realistic chance of winning the pitch or are you making up the numbers. They will not answer a direct question but they might tell you who is the current incumbent, how long they have been in place and the quality of the relationship which might in turn tell you how likely you are to win it.
3. Make absolutely sure you know the budget. If they are not prepared to divulge it then walk away.
   
4. Get to know who the various people are in the decision making process. For instance who is the sponsor, the budget holder, the user, the gate keeper. They all need to be bought on board
5. Do a full dress rehearsal. Preferably in front of an independent but knowledgeable expert
   

We are willing to act as that independent expert. We will come along and see the full dress rehearsal after reading through the client brief.

Call me on 07956 532963