TEC Resource Center

By

Direct Response or Bust!

Direct Response

Direct response marketing is a marketing that demands a direct response from your potential customers. This type of marketing is used to answer questions, present your branding, products and the reason you do what you do. Customers love this, as they are offered the opportunity to response, whether that be in the way of signing up for a newsletter, posting a comment on your site or blog, or purchasing a product from you.

So, what does direct response marketing look like? Well, it comes in many forms, including:

  • Social media
  • Digital advertising
  • E-mail
  • Direct mail
  • Print ads
  • Radio and TV ads
  • Coupons or other incentives
  • Telemarketing

Some of the advantages of direct marketing are:

  • A great way to use free time during lulls in business
  • Productive way to communicate and empower you to create more relationships
  • Great way to up- and cross-sell to current customers
  • Low cost way to rustle up new business
  • Used as leverage to turn small sales into large sales
  • Supplement your current marketing program
  • Cost-effective way to reach target markets
  • Offers measurable results
  • Reach outside your local area for new business
  • Increase the effectiveness of your sales force

These are all great things that can come from just taking a few simple steps to putting together a direct response marketing plan and executing it.

“I honestly don’t think you’ll ever find a safer, lower-risk, higher-profit method of increasing your business or profession than direct-response marketing.” Jay Abraham

Direct response marketing is one of the best ways to launch your business on a large scale and reach out to everyone in your target market whether they are in your local area or not. Our FREE test drive can help you put together a great direct response marketing plan and get you on your way to heightened success .

By

Happy New Year – so what’s the plan?

Strategic Planning

We have officially entered the new year of 2018; are you ready to grab that golden ring you have been working towards or is your plan to forge ahead and hope for the best?  Running a successful business is a lot like sailing a ship across a vast ocean.  The big difference is many business owners haven’t taken the time to map out their route with up to date navigational information and calibrated gauges that will assist them to take their journey safely arriving at their visionary port on time.

The thing about the business journey is the map of the ocean we will be crossing is forever changing.  Your competitors have changed, the products have evolved and the consumers are completely different than those the business started out with.  Today’s consumer is more informed, less patient, and has the tools available to assess products on a global basis in an instant.   If your plan is to stay the course I am here to tell you that course more than likely no longer exists in the marketplace.

Take the time today to reassess your journey and identify the reasons you are in business and where and when you will arrive at your final destination (mission, vision, values).  Update the market information necessary to ensure your offering will be well received by the end user and develop Key Performance Indicators (KIP’s) that will help guide your path when land is no longer visible.

Share this navigational plan with your team so they can assist you in the journey.  The power locked inside your employees will be the differentiator if you harness it and use it to drive a culture of success within your organization.  Ensure everyone shares the values you believe in by stating them clearly and often.  Only hire those who will add to the growth of the culture and divest yourself of those that detract from the mission, no matter how integral they may be to the business.    Your mission and vision are why you are successful, not any single employee.

Take advantage of the New Year and start planning today.  The time is right to get your entire team engaged in this new journey.  I assure you the excitement and energy this will bring to your employees is explosive and will give you the power you need to reach that final destination, wherever it may be!

Visit the TEC Resource Center and take a free strategic planning assessment (https://tecresourcecenter.com/strategic-planning-assessment) to assist you in determining how to get started planning the future of your business today!

By

The differences between a Key Performance Indicator (KPI) and a Goal?

I would say this is the most frequently asked question I receive from our client base. The term goal is pretty well established in the business world. Companies have revenue goals, customer satisfaction goals, productivity goals and the list goes on. More often than not however, there is a void or even a lack of understanding on the part of management as to what exact performance measurements can be used to monitor the success of the initiatives put in place to achieve these goals.

Goals are often too lofty or grandiose for the everyday employee to get their mind around. Everyone knows the company needs to grow in revenue and profit to ensure the future employment and the financial growth of the staff. What they don’t understand is how they directly impact the company’s ability to achieve this. Most employees want to work for a successful organization and will do their part if they clearly understand what their part is. Let’s take a minute and better define the differences between goals and KPI’s.

So as not to overcomplicate the conversation we will start with the basic need of a corporation – revenue growth. A typical goal for an organization might be 10% growth in revenue within the next fiscal year. We have all heard of the term SMART goal. A S.M.A.R.T. goal is defined as one that is specific, measurable, achievable, results-focused, and time- bound. Let’s put our goal to the test.

Specific: a 10% growth in revenue is very specific. It is best to do the math so everyone understands what the 10% means.

Measurable: It is most definitely measurable unless you don’t report out revenue.

Results-Focused: Again very result focused

Time-Bound: Yes it is our desire to achieve this goal within fiscal year 2017.

A Key Performance Indicator is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPI’s at multiple levels to evaluate their success at reaching targets. High-level KPIs may focus on the overall performance of the enterprise, while low-level KPIs may focus on processes in departments such as sales, marketing or a call center. For the purposes of simplicity I would like to discuss how this goal will be viewed by three departments – Sales, Customer Service and Production.

The key word at the department level is performance. What are they doing to contribute to the company achieving this goal? Most times these are called initiatives at the department level. How will these departments change their daily activities to achieve a higher level of performance? The sales department is probably most accustomed to this discussion due to the fact that their world revolves around numbers – more leads – more meetings, more meetings – more presentations, more presentations – more proposals, and the more proposals the more revenue booked. Simple, right? Your vice president of sales will more than likely know off hand what these ratio’s look like.

Typical Sales Funnel


The sales department therefore has already established the KPI’s that will help them monitor the success of their team in meeting the goal. The marketing department might be responsible for generating the 100 leads needed (i.e. Marketing Goal).


 

 

 

 

The sales department’s goal for booked revenue will differ from that of the company in that booked orders don’t invoice until they can be shipped. Obviously this is where customer service and production come in. If these two departments don’t meet their KPI’s the goal for the company will be missed. Production cannot produce the product until the order is processed and the company cannot book the revenue until the order is shipped. The KPI’s will measure the success of the initiatives undertaken to achieve the increase in revenue. If any of these departmental KPI’s fall below the expectation for the initiative implemented immediate action can be taken. This allows the department leaders to tweak the program along the way to ensure its overall success.

The sales department is in most cases a little more straight forward than the other two departments we have selected. However, every department should know what they must do to achieve the overall goal of the organization.

Customer Service has to take the call and process the order in coordination with the sales team. If there is a delay in the processing time the revenue for the month or quarter will be missed. The KPI’s of the customer service group might revolve around processing time or number of calls handled per day. But the goal of the department is to process the number of orders booked by the sales group within a specific period of time that will allow production the time they need to produce and ship the product needed to meet the revenue goal for the company.


 

 

 

 

In the same way the production department will need to set their goal to be in line with what the customer service department can process. In some cases they might over produce if there is a high confidence level on the part of the sales VP. See if you can draw out a KPI chart for the production department. If not send me and e-mail (pat@tecresourcecenter.com) and I will work through it with you for your company.

Successfully run companies know that engaged employees who understand how they directly contribute to the goals of the organization will lead to the improved implementation of the strategic initiatives and faster growth year to year. Does your team understand the KPI’s for your organization? Is there a reporting process to monitor the success of your strategic initiatives? I will discuss balanced score cards and KPI dashboards in upcoming blogs. Sign up for our monthly TEC Talk update ( https://tecresourcecenter.com/contact-us ) to ensure you receive future discussions.


By

How do you measure performance?

We have all heard the saying – “if it is not measurable it is not manageable.”  Why then do we spend so much of our time managing the softer side of our employees rather than the results they actually achieve throughout the year?  In some businesses it’s all about the statistics of achievement.  In the sport world for example, each member of the team is evaluated on each aspect of their game and ranked against others in the same field.

In the business world some would say that’s just not possible.  I say that’s due to the fact that not everyone on the team understands how they contribute to the overall success of the organization.  Okay, in the sports world it’s easy, right?  Everyone knows what the vision of the organization is – win the championship of course.  There are clear parallels in business but they might not be as easy to define.

Vision

Most businesses have a vision for the organization.  The question is – can it be as clearly defined and understood as winning the championship?  The easy part of the sport world is that the path to the championship has been well defined.  Rules have been set up that allow the manager or owner of the team to build a clearly understood strategy that can then be passed on to the coaches and players.  In your business you can do the same thing!

The first step is to determine your vision for the organization.  Keep it simple!  Keep it measurable!  If it’s not measurable it cannot be managed – Right?  If it’s too complex no one will understand how to break the vision down into departmental and then individual goals.

Vision Statement

In the next Timeframe the company will Attainable Goal by Differentiator!

Most sports teams set out to win the championship but not all of them have the tools and resources to win it this year.  So their timeframe might be to win the championship within the next three years by rebuilding the existing team.  The same goes for your organization.  You might not have the tools on board today to attain the ultimate goal but everyone should understand that’s where you are headed.

SMART Goals

Thankfully the hard part is done right?  Wrong!  Countless businesses I work with have the vision of where they are headed well in hand and simply cannot understand why they haven’t gotten there already.  The long term goal (The Vision) needs to be broken down into yearly, quarterly and even daily goals for each member of the team.  This is a very difficult task and can only be accomplished through strong communication and teamwork within the leadership of the company.  Obviously, the real long term goal of a sports organization is to build the value of that organization by driving up revenue attained from broadcasting rights and game attendance.  Can you imagine if that is what was communicated to the offensive line on a football team?  They would have no way of relating their performance to that high level goal of the organization.  So winning a championship becomes the goal.  Every athlete can relate to this goal and understands what it means to their financial future.

But winning the championship is still too broad a goal to drive performance on the team.  So that goal is broken down further in to win this week’s game and then again into scoring the touchdown.  But it doesn’t stop there!  It’s about first downs – achieving them for the offense and preventing them for the defense.  “If you control the line of scrimmage you win the game.” 

So what are the SMART goals for you team?  How can you break them down into bit size measurable indicators that can be monitored and improved upon each day?

I like to use the example of the airline that wanted to improve on time performance (Goal) in order to raise the overall rating of the airline.  Anyone who travels can understand how this impacts their lives and therefore they pay attention to this rating when selecting their airline of choice.  In turn this will drive revenue for the airline.  So increasing revenue is the high level goal but the employees cannot directly relate to this goal.  Not everyone in your business understands business and therefore you need to make the goals at the employee level relatable to the worker.

But on time performance was still too broad a goal.  This goal was in turn broken down further in to Key Performance Indicators (KPI’s) for the baggage handlers, maintenance workers, gate attendance, pilots and flight attendants.

Baggage Handlers: Have all bags loaded 20 minutes prior to the flight’s departure

Maintenance Workers: Have all flight checks completed 40 minutes prior to flight departure

Gate Attendants: Have all passengers loaded 10 minutes prior to departure

Pilots and Flight Attendants: Arrive at the plane 30 minutes prior to departure

Of course there is more to it than this but for the purposes of our discussion today you can see my point.  These are KPI’s related to the goal that can be reported and monitored to better understand where the weak points in the operation are.  Once identified you can put improvement plans in place that might include training or improved technology to report problems ahead of time.

So start today.

  • Make sure your vision is clear and relatable
  • Ensure the strategy to attain the vision is well thought out and documented
  • Breakdown the goals into (KPI’s) that can be measured at the department and even employee level.

When differences are discovered through the reporting process, don’t shoot the messenger.  Sometimes the process is to blame for good people achieving poor results.  Ask them for their help in fixing the problem.  If you hired the right people, and they understand what they need to do to achieve the goal you will be surprised at what can be resolved if you are willing to listen with an open mind.

By

Are You Ready for the Future?

We have all heard the expression that “A dream without a plan is just a wish”- Katherine Paterson.  Obviously if we had a dream of taking a trip to another state or a foreign country we would have a plan on how we were going to get there.  Whether we were going to fly or take boat or car, what would we do if the weather delayed the trip or something unexpected caused us to take an alternative route?  In fact we might take weeks, months or even years planning the perfect agenda to be sure we maximized the enjoyment we would receive from the journey.  After all, planning the dream vacation takes careful research and planning.

In business we often forget we are on a journey because it becomes too much like a job.  We lose sight of the fact that we have been dreaming of owning our own business for so many years.  Dreaming of the financial security it would bring or the legacy we would leave behind.  Business owners get caught up in the day to day of the business and forget to work on the growth and strategy of the business.

I recently met a young business owner, he and a friend had discovered a unique niche opportunity while working for a repair company in high school.  They quickly took advantage of this opening and grew their company to $5.5 million in two short years.  During our conversation we spoke about the journey they had taken and how the business was larger now with employees.  They were busy developing processes that would better control the flow of work through the company and struggling to understand the people management process, never having managed employees before.  Having been a CEO of my own business for more than 30 years I of course had more interest in where this young business was headed.  I was impressed by these young guys and wanted to know more about growth projections, margins, and competitors. When I began to ask them about their strategic plans for the future I quickly discovered they had lost sight of the future because they were completely engrossed in the business itself.

These young guys are not alone.  More often than not in my interactions with business owners I find they spend far too many hours working in the business and not enough time working on the business’s future.  In a five or ten minute conversation with my young friends I discovered margins were shrinking due to an onslaught of new competitors entering the market, in turn driving prices down.  The secret they discovered two years ago was out and everyone wanted in.  They had a huge jump on the competition but if they didn’t work on a plan and implement it quickly this advantage would soon be gone and they would find themselves in a defensive position.

In this case they hadn’t planned for the journey at all.  They saw an opportunity and they jumped on it and what a great job they did.  Without a road map for the company they were lost and hadn’t stopped to ask for directions.  I asked them if they wanted to enter the working world once the demand for their product had subsided.  You can imagine the confused look I received.  I asked if they thought this market dominance would last now that competitors were swarming to the table.  Quickly they both agreed that it wouldn’t.  So what’s next is the question I posed.  Not having experienced the planning process before, I sent them back to the office to consider the question and encouraged them to call me for coffee when they had put some thought into it.

For years as a young CEO I understood that we needed to plan, but our so called strategic planning meeting each year turned out the same old hockey stick growth projects with little or no real strategic planning going into the front end of the process.  Each department head told me what they thought I wanted to hear and I bought it.  Later on I discovered the value of planning, I mean really planning, all year long so that the strategic planning meetings were not only productive but eye opening and lead to some of the greatest growth opportunities the company had ever seen.  When the team understood that we needed to become focused as a group on the journey and not just the day to day operation they were empowered to bring forward the good, the bad, and the ugly news about what was going on in the industry as well as our own company.  With this validated information in hand we were able to clearly map out what the future looked like (Vision) and the initiatives that would get us there ahead of our competitors.  Answering the hard questions built into the planning process allowed us to:

  • Better understand our competitors
  • Better understand the trajectory of the industry
  • Build a better value proposition
  • Increase customer satisfaction and
  • Measure our progress on the journey

We have placed a Strategic Planning Readiness Assessment on our website planning page (https://tecresourcecenter.com/planning) that will help determine where your company stands in the strategic planning process.  Feel free to download a copy today.  Don’t find yourself in the position so many others have in the past with decreasing sales and or margins and no real plan for the changes ahead.

Recent Articles

Connect with TEC Online!

Contact Us

TEC Resource Center
Massapequa, NY 11758
Contact TEC
Phone: 631-963-4244