Tag: sales

The price you want

FabrizioLeave a comment

You have a good product, some customers, and then you start losing opportunities because they say you are too expensive.

Two options.

You cut the prices (discounts, special offers, etc. fall into this same category). It’s a risky game, of course everybody else can follow you there.

You work on perceived value. And you can go about it like this.

  1. Express value – Many times features are disguised as value, often mere functional value, so you need to start digging what the customer really wants.
  2. Reframe value – It might be that the problem you are solving is not worth the price you are asking, so you need to figure out if there is a deeper feeling, ambition, desire that you can leverage.
  3. Work on brand – Your story, your tone, your appeal can make your product desirable and unlock a fear of being left out.

Cutting prices is short-term (and short-viewed), working on perceived value takes resources and time.

The sooner you start working on 1, 2, and 3, in parallel, the better positioned you will be to ask the price you want.

In context

FabrizioLeave a comment

In it’s most popular form, Goodhart’s law states that when a measure becomes a target, it ceases to be a good measure.

You do not have a healthy company because your revenue increases year after year. Revenue is just one measure of the health of a company, and it should be put in context.

You do not have a great place to work because your engagement score says so. Engagement score is just one measure of how your employees feel, and it should be put in context.

You do not have a terrific team because they meet their targets quarter after quarter. Numbers are just one measure of how well your team is doing, and they should be put in context.

You do not have a successful campaign because you are getting clicks. Clicks are just one measure of the success of a campaign, and they should be put in context.

The point is, measures are easy to game, and the more you put them at the center of every conversation, the more people will be inclined to game them.

It takes time and effort to take the whole picture into consideration. It takes awareness, it takes courage, it takes honesty. It is the only way you can truly assess how you are doing and make adjustments, so that you don’t wake up one day in a place where you had never wanted to go.

Ask this instead

FabrizioLeave a comment

When companies grow and get to a certain size – say, 3-400 employees – the tendency is to add layers of management and middle-management to set the stage for the future growth.

That’s when something typically happens that ends up actually hindering the growth they are seeking.

It is the time when the company stops solving interesting problems and starts serving individual agendas.

It is the time of more and more meetings to find alignment, the time of blaming it on others, the time of politics and gossiping. It is a time dominated by opinions and personal anecdotes. Facts lose importance. Indeed, they barely get measured because everyone is busy pleasing those up the ranks while trying to come out first among peers.

It is where motivation dies and talent retention becomes a serious problem.

So when you hire or promote managers for your growing company, ask them not about their previous experience and their track record. Ask them instead how they plan to manage their team, how they will be handling conflict and contrasting ideas, how they will be making decisions and manage the change that comes from those decisions.

These hires will determine your possibility to get to the next phase. Be intentional about them.

Appropriate

FabrizioLeave a comment

When you are taking decisions that will impact (negatively) others, it’s not a bad thing to ask yourself: Do I really have to?

Often things make a lot of sense on paper: cutting costs, increasing profits, getting some surplus to invest in expansion. But is it appropriate in the here and now? Can it be avoided? Can the policy be changed?

Of course, decisions like these are rarely taken lightly. Just make sure you are considering all perspectives, not just the one that is more common, easier, more anticipated.

Footsteps

FabrizioLeave a comment

We know, from our own experience as employees, that people perform better when they are engaged. And that engagement means different things to different people.

Yet, despite us knowing that, we keep running companies in a standardized way that kills engagement.

We ask people to do shallow work. We keep them busy with emails, internal chats, and meetings. We manage from the top down. We regard productivity and (physical) presence as the same. We do performance reviews with a checklist. We assign titles and roles, so that we can look at nice pretty boxes and feel in control. And every now and then we throw a party to cheer everybody up (better if under the influence of alcohol).

The thing that I find most perplexing, though, is how much small and medium companies (the vast majority of companies out there) adhere to the same trite script.

They are the ones that are actually better positioned to change these practices. They are the ones who could make of their differences a decisive factor when seeking and retaining talent. They are the ones who could truly have a personal approach to engagement, and be flexible enough to make it feel as if each single employee would belong.

Just because your target is to grow, it does not mean you have to follow in some other company’s footsteps.

Doing that is actually killing your chances of growth.