How Marketing Can Support Sales 

Most companies want more sales so developing an innovative marketing program to support your sales force is critical.  Most companies make the mistake of giving more commission, adding bonuses or throwing out some other ‘carrot’ they believe will cause the salespeople to work harder.  Taking a marketing approach can increase sales and help you spend your money wisely.  Consider the following: 

Create More Leads

Because sales reps are motivated by money you want to create a program that will help them make more money by investing in their business.  For example, based on writing a certain amount of business, you could give them an amount back to use to get more business.  In other words, if they wrote $100,000 in business, they would get an amount back that would pay for some other type of marketing in their area such as seminars, a direct mail piece, or newspaper advertising.  Think about gearing the program to the talents of each individual.  If a salesperson is better at sending out direct mail and doing  follow up that is the kind of support he/she should receive from you. 

Promotional Campaigns

The biggest problem with sending information to sales reps is getting them to read the information.  Develop a series of well targeted and short email or mail pieces sent in a series of threes to ensure reps read and comprehend the information.  Consider using letters or emails that contain:

a) Bulleted points
b) Large typeface and lots of white space
c) One promotion at a time
d) Personalized messages
e) Different response channels: phone, email, or click 

Customer Service/Call Center Support

Developing a comprehensive and consistent marketing program to support your sales force can increase sales.  But sales reps that are working hard should know it is okay to call and get information and answers to their questions by calling immediately and at any time.  The more information reps are armed with, the more they can help their clients.  

Some managers think that the reps make enough commission and should take responsibility instead of being spoon-fed.  Remember, if your reps are not in front of clients and selling, they and you are not making money.  Doing everything you can to support them to get them selling more will help bring in sales and profits. 

Marketing consists of many activities that can support and facilitate sales whether in a declining or growing market. Think about how your marketing programs can support your sales activities and try some new activities to rev up your sales.

Superior Performers

The Liquor Control Board of Ontario is a case study in how a company can completely transform itself from a boring retailer to a customer-intense, performance-driven and profitable retailer.  I remember the old LCBO and it has come a long way from the days when there were limited product choices, unknowledgeable staff and drab, poorly located outlets.

As a business consultant I find this company probably one of the most innovative and best run companies in Canada.  The key to LCBOs success is its ongoing strategic planning that has moved them to the top with profitable growth and over 80 awards for customer service, staff training and development, store design, advertising, innovative retailing, corporate communications and social responsibility.  In addition, the LCBO offers competitive pricing. 

What Companies Can Learn From LCBO

What can a construction company, hospital or medium sized business learn from LCBO?    A lot.   As a matter of fact, the LCBO is a good role model for any type of business.    When you compare the LCBO to other beverage alcohol providers on both sides of the border you will find them a sophisticated, international shopping experience.  They don’t sell food like Marty’s in Dallas and Specs in Houston but they do publish one of the most sought after magazines on food and drink I’ve seen and it’s free.

Strategy Drives the Business

In the late 1980’s, the LCBO began to use strategic planning to help develop and reach its goals.  In 2002, the management team was brought together again to develop a new five year strategic plan that began in 2003 to meet the rapidly evolving marketplace.  What is unique about the LCBO is that they believe in long range planning in a fast paced changing environment when other businesses say they can’t do long term planning because of the rapidly changing environment.   The company believes its strategic planning is a continuous process that starts with an internal and external assessment; a mission, vision, values and culture statement; a well defined target customer; objectives and goals; strategies to reach their goals; a stated competitive advantage; and a comprehensive five year plan that encompasses growth, investment and capital strategies as well as productivity and efficiency improvements.  Of course, like any well written and implemented plan they are constantly monitoring performance. 

The company continues to increase customer satisfaction levels, increase sales, improve productivity performance to lower their expense to sales ratio, and continually outperform the beverage alcohol market. What makes the LCBO strategy work is that everything they do from marketing to operations is tied into their mission, vision, values and culture. 

Diverse Leadership

Many companies have strategic plans with all the elements of the LCBOs.  So why does the LCBOs work and others not?  You can understand it by looking at the management.  Like companies I’ve mentioned before in this section, the LCBO management are not just individually good at what they do, they function well as a team with highly capable, passionate people.  And they work long hours just like any business.  But if you look closer you will see that even the board of directors is unique.  There are seven people on the board: three females, a banker, a president of an automobile company, an owner of a pr firm, a government consultant, a professor, one is in the insurance industry, and the CEO and President of the LCBO.  Members of the Board have limited terms.  It is an ethnically diverse board in race, gender and age which brings innovation and new insights to help the company do things better than its competition. 

Respect for Customers

By now we should all know that competing strictly on price, is the road most companies take, but it is not what moves a company ahead of its competition.  The LCBO knows its customer segments and their specific needs and wants.  As a result, the organization has identified the right strategies and focused its resources for long-term profitable growth.  The retail stores, marketing, and training is tied together and exudes a genuine affection and desire to please customers.

Discipline

Creating long-run value means delivering short-run results—every quarter, every month and every week. With eight straight record years in a row you could say that the LCBO is a game changer—innovative and disciplined.  The management pays attention to what it measures so it can get better at what it does.

A Great Talent Pool 

To quote Peter Lewis, CEO of Progressive Corporation, “We have the best people in the industry, as measured by education, intelligence, initiative, work ethic and work record.  We find them and go after them.”  That’s true of the LCBO but there is also a waiting list of applicants who want to get employment at the retail stores.  The company keeps its customers happy by hiring and training people who are happy and talented.  But more than that the management pays attention to whom it hires, whom it promotes, and how it keeps everyone motivated with as much seriousness as it pays to its financials. 

There are many more aspects as to why the LCBO is successful, but it is a company built for change.  It knows that it can’t rely on past history if it wants to prosper over the long term.  If you want to win big, you have to think differently.  That is the lesson we learned from Dell in the computer business, Southwest Airlines, and Washington Mutual’s growth.  Your strategic ideas have to challenge the status quo in your industry to keep ahead of the competition.   

Please send me your ideas about how you or companies you know are innovating and moving forward.  Or recommend some companies you would like to see featured in this column.  Better still call me at 416-239-6103 or 972-239-6020. 

Performance Notes

Costly Mistakes of Bad Hires—Economists estimate that an hourly employee costs up to $24,000 to replace, whereas replacing a manager costs up to 150 per cent of the annual salary in lost productivity and knowledge, hiring, and training expenses. 

Making Horses Drink—In Alex Haim’s recent book Making Horses Drink: How to Lead and Succeed in Business he shares a few ideas from Jim Amos, former Marine captain and now president and CEO of Mail Boxes Etc.  Apparently, Amos spends a lot of time recognizing and rewarding his employees, and believes this is part of the reason his firm has very low turnover and very dedicated staff.  For instance Amos often types letters of appreciation and mails them to his employees' homes along with a gift certificate for a local restaurant.  In addition, Amos sometimes notifies local papers about notable things employees do.  He also holds monthly "Eagle Renewal" employee meetings to applaud promotions, introduce new employees, give a monthly Eagle award to an employee, or announce the peer-nominated Soar Award for going beyond the call of duty. That's a lot of celebration compared to most companies, who might do something of the sort once a year at best. Amos explains, "In the military you [recognize and reward] with medals, awards, and letters of commendation, and these things carry over well into the civilian world."

Linda Addresses Construction Conference           

Linda presented three sessions at the Canadian Institute of Plumbing and Heating’s annual trade show and conference held in Toronto in March 2004.  Linda’s sessions entitled, Sell the Sizzle Not the Steak, Building the Customer Service Minded Organization, and Building Relationships emphasized the benefits of customer service, relationship building and targeted selling in the construction industry.  “I attended two seminars at the CIPHEX show.  The content of the seminars was excellent,” said an attendee.  To book Linda for your next conference or management meeting, contact lhanson@llhenterprises.com.   

Linda in Print
 

If you would like Linda to write an article for your in-house publication, email lhanson@llhenterprises.com.

Please give us feedback on this issue of The Superior Performance Report (click here) and let us hear your insights and what you would like to hear about next time.

Copyright 2003 by LLH Enterprises-reproduction for publication is encouraged, with the following attribution: From "The Superior Performance Report," by Linda Hanson, CMC, www.llhenterprises.com.

Subscribe/Un-Subscribe