PerkettPR Introduces our “Effective Executives” Interview Series

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PerkettPR is excited to introduce another interview series, “Effective Executives,” showcasing business leaders from top companies across the globe. Our goal is to continue to share insights, tips, tricks and suggestions from those who have seen it all. How do they work? What keeps them up at night? What tough lessons have they learned? We kick off this series with John Golden, CEO of Huthwaite.

Founded on scientifically validated behavioral research, Huthwaite’s methodologies—which include the internationally renowned SPIN® Selling — guarantee sales success. Huthwaite assesses your organization’s needs and develops customized sales performance improvement and coaching programs for sales and marketing professionals that drive real business results. For more information, please visit: www.huthwaite.com.  Follow Huthwaite’s blog, Twitter stream and Facebook page.

John Golden is President and CEO of Huthwaite, the world’s leading sales performance improvement organization. Golden joined Huthwaite in 2008, where he is responsible for the company’s U.S. financial and operational performance and long-term strategy for success.

Prior to Huthwaite, Golden was the Senior Vice President of education & business development of the Mortgage Bankers Association. In this role, he was responsible for the restructuring and sustainable growth of the CampusMBA business unit. Golden created and executed new marketing strategies, established standards for operating and quality control, and implemented cost controls to maximize profit margins. Before that, Golden was Vice President of the educational services division of Learning Sciences International, a startup company providing professional development products for K-12 educators where he defined and executed the company’s go-to-market strategy. Golden also spent two and a half years at New Horizons CLC, the world’s largest independent IT training company.  As Vice President of products and programs and a member of the senior executive team, Golden managed a $32 million business unit responsible for sourcing, building and providing products and services to franchise locations in more than 50 countries.

Golden started his career in the learning industry at SmartForce (formerly CBT Systems) in Dublin, before moving to the corporate HQ in Silicon Valley, California to launch the first fully integrated online learning platform.

How is leading a business in the U.S. different from leading a company based in Ireland?

In some ways this is hard to answer, as I have never led a company in Ireland.  My leadership experience has all been in the U.S., however, I would say that while there are some obvious cultural differences, I don’t think they are so great as to change the fundamentals of good leadership – which I believe are pretty much global. In Ireland, given its size, relationships probably play a slightly greater role because the personal relationship has always been an integral part of how Irish people do business, whereas in the US, given the fact that many of those you lead or do business with are spread across the country (even the globe) – and you rarely see them face-to-face – the relationship element plays less of a role. In other words, I feel in the U.S. you can operate in a very pragmatic manner and be all about business – whereas in Ireland you may need to temper this a little with the relationship element.

What is the biggest pro of adopting sales software in an organization? Biggest con?

The biggest pro to adopting sales software is that you can provide sales people with real time tools to do their jobs better while allowing sales management to have greater visibility into opportunities and pipeline, which in turn allows them the opportunity to coach more proactively and in a more targeted fashion. It is through this lens that you need to evaluate software before deciding to deploy it with your sales organization. For example, ask yourself “Does it help organize the sales person’s approach to an opportunity; does it reinforce the right behaviors, tactics and approach and does it provide managers with insights to coach to?”

On the con side is the “shiny new toy” syndrome, where management may come across a great piece of software that will provide lots of data for management, but has no real benefit for the sales person – and thus the deployment just sucks up time, resources and money and because it doesn’t benefit the sales person. The data returned is junk.

What advice would you offer to executives looking to find the best software package and implement it successfully within their organization, in a timely manner?

In terms of choosing software, I would refer back to the questions I mentioned above – ask yourself “Does it help organize the sales person’s approach to an opportunity, does it reinforce the right behaviors, tactics and approach and does it provide managers with insights to coach to?” Using these simple questions as a first step in your evaluation process will save you a lot of time and qualify out applications that are not going to be successful.

Secondly is to take an iterative approach to implementation. Don’t try to roll out all the features of a software application at one time. Pick one or two that have the biggest benefits and are the easiest to learn and adopt. Then spend a period of months getting people to use and see the value of them and only then add some others. If you take an iterative approach, especially if sales is your audience, you save a lot of time and angst and ultimately have a more successful implementation.

You have a diverse background including business development, marketing as well as quality and cost control.  Which area are you most passionate about and why?

Running a business is what I am most passionate about because it forces me to draw on all my experiences and it requires a level of dexterity in that you need to be able to switch between the high-level strategic and the down-in-weeds tactical almost at will. At the end of the day, a successful business that is generating good profit margins is a measure of how well all the constituent parts are working together, and how customers value what you do – and this is what gives me the greatest satisfaction.

Having worked for a startup (Learning Sciences International, ) in the past, how did that experience prepare you for your current role as CEO for Huthwaite?

It helped me in so many ways because I am not sure you can ever match the experience of sitting at a cheap plastic table in a tiny office with just a laptop and trying to figure out how to deliver on the bold vision of the founders of the company. It was the first time I had to involve myself in every aspect of a business, so it provided a great foundation for working at Huthwaite. It also taught me that sometimes you have to try a number of different strategies and be prepared to quickly switch when one is not working. I also learned how much a small bunch of smart, motivated people can achieve and this has helped me in subsequent roles. Never fall into the trap of over-investing in resources when proper focus and nimbleness are all that is needed. Learning
Sciences International has gone from strength to strength, thanks to the ongoing vision of their founders – and I am proud that I played a small part in that story.

Where is next for yourself and for Huthwaite in 2012?

2012 is going to be a big year for Huthwaite, as we are releasing some major thought leadership research around sales and marketing alignment and the changes in buyer behavior. I will be deeply involved with this and with rolling out to the market on how they can meet these new challenges.

 

 

Changing the definition of CRM – marriage, not management

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Some companies really get customer relations and service and make it the lifeblood of their culture. Zappos, Virgin America, Southwest Airlines, LL Bean, Amazon, Starbucks and my local Walgreens are a few brands that come to my mind when I think of customer-centric brands. But why do they seem to be the exception rather than the rule? These businesses understand the value in making a customer feel important at every interaction – not just the sale.

Customer service and CRM (customer relationship management) are often described separately in business but in today’s customer-centric organization, service is but one part of CRM. CRM is most often described as a technology process, and many companies – especially small businesses – therefore don’t think of it as applicable to their organization. They may Google the term and be immediately overwhelmed with articles full of terms like software, implementation, SaaS and enterprise. Wikipedia’s definition states, “It [CRM] involves using technology to organize, automate, and synchronize business processes—principally sales activities.”

I like to think that the definition of CRM today goes well beyond technology. I did a recent webinar on the topic of CRM with a panel of really intelligent tech leaders, including a former editor of CRM Magazine, a former CRM analyst and an executive from CRM software vendor, Sugar CRM. These guys are very smart and we covered some great topics – including software, customer service and even social CRM. But we only touched upon the fact that CRM is more than tech.

CRM is the lifeblood of how everyone in your organization manages and maintains relationships with customers.

  • Do you want more customers?
  • Do you care about repeat customers?
  • Do you you want to have a relationship, not just a deal, with your customers?
  • Do you want to see more revenue come in the doors of your business, or higher figures in your next raise as a result?
  • Do you like it when happy customers refer your business, service or products?
  • Do you care when unhappy customers take to social networks like Twitter or reputable business management entities such as The Better Business Bureau to complain about your business?

Then you care about CRM. And so should your employees – not just the sales team.

In that same webinar I suggested perhaps it would help businesses to think of the “M” in CRM as “marriage,” rather than management. What I mean by that is to really think about your customers as a long term commitment. Don’t “manage” them so much as keep wooing them, romancing them with outstanding products and services, and keep the love alive.

To do that successfully, every employee plays a role in treating customers right. Not just sales, not just customer service, not just the cashier at the counter and most certainly not a piece of software. Don’t leave it up to just one department. If the customer is treated poorly by just one employee in your organization, THAT is the experience they will remember. THAT is the experience they will share with their friends. Think of all the marketing, advertising and sales dollars that fly out the door – wasted – when that happens.

Here’s an example. A customer in a retail store is shopping and a salesperson on the floor stops to politely help. The customer spends an hour with the salesperson – finding more than they originally were seeking, but so pleased with the experience that she decides to buy everything that the salesperson has suggested. The customer heads to the cashier and the line is long. There is one cashier. The customer waits longer than she was happy with but nonetheless, makes it to the counter. When she gets there, the cashier is grumpy, rude and impatient, especially when the customer asks if she can have some boxes with her purchase. In response to the rudeness, the customer decides to leave all the items on the counter and walk away from the purchase. She decides that, now that she knows what she wants, she can easily go online and order it elsewhere rather than fork over her hard-earned money to a business who will treat her as though she doesn’t matter.

Another example is an airline. There are multiple exchanges with customers during just one purchase. There is the point of purchase, the airport experience and the experience on the plane. Say a customer finds a great deal on a flight.  He checks in at the airport and sails through security. He’s happy. But on the plane, the flight attendant is snappy and condescending when he tries to order food – and her attitude gets no better, sighing whenever asked for something and generally making him – and all other passengers – feel as though they are an inconvenience. Since he can’t express himself on the plane for fear of escalation, he takes to Twitter and Facebook after his flight, encouraging his 15,000 “friends” that no matter how inexpensive, the experience with that airline isn’t worth it and that they should spend their money with another airline.

Forget what you know and are probably thinking about typical customer behaviors, point of purchase abandonment statistics, or how far reaching (or not) just one customer’s influence is on what percentage of people. Forget about the traditional definition of CRM. Again, instead ask yourself if you care about sales, customers and revenue. Do you care about reputation and brand management? Do you care about the highest return on your marketing and advertising investments?

If the answer is yes, then teach your employees – not just sales or customer service – what CRM means and what role they play in it for your organization. How do you want customers to feel after an interaction with your business? What role does each employee play in making that happen every time? How flexible are policies? What do you want most from your customers and why?

From the point of sale to the marketing department, billing to service issues, every employee is crucial to making CRM work for your business.  It’s about the way prospects find you, why they listen and how they are wowed enough by your business to become customers. It is why your customers become repeat customers. And it’s about the way happy customers tell their friends. As it is in any relationship, you’ve got to keep working at it to keep it great. Don’t take it for granted and make sure you communicate well.

“Customer-centric” just isn’t enough anymore. Technology doesn’t manage relationships on its own. Rather, the best businesses will embrace a new type of CRM throughout their organization – showcasing customer commitment at every level.

Being Thankful in Business is a Good Thing – Brands that GET IT

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We’d like to wish our US-readers a Happy Thanksgiving and send a HUGE thanks to all of our colleagues, clients, community and partners. We’re thankful for your support, your business and your respect.

Over the course of the last two decades I’ve been told more than once that appearing too grateful in business can be a negative thing – putting me in a position of perceived lesser power. I disagree. I think being thankful in business – and for business – is a good thing and I am happy to see social media bringing it more to light. Businesses who appreciate their customers are more likely to reap the rewards of loyalty, repeat business, positive word of mouth and long-term success.

Since I went on a rampage about my negative experience at McGee Toyota recently, I wanted to also take the time to highlight some businesses doing well by their customers. I think it’s important that as our customer voices become louder and more viral, we use them to celebrate what brands are doing right as well. So while I recently gave personal props to Jet Blue and Ideeli, I also took to Twitter and Facebook to ask my community what companies have done right by them recently, and why. Specifically, I asked, “When is the last time a company or brand went above and beyond to make you a happy customer? What did they do?” Here are some of the answers – below. Thanks to everyone who took the time to share and respond, and kudos to the brands who agree – being thankful in business is a good thing.

Chris Theisen: My fav personal experience from @brewhouse http://bit.ly/d2VGn4

Greg Meyer: We had an event at @sushisambachi – they made us feel at home, tweeted about the event, and provided excellent service

Shannon DiGregorio: The Apple store at the Cambridge Gallaria replaced a broken (my fault) iPhone 4 for free after AT&T was awful to me! Love them!

Kristina Bobrowski: @ArtVanFurniture went out of the way to meet my budget/timing needs, & responded to my praise on here. @netflix impressed me too.. My DVDs weren’t coming- they sent me 3 at once to tide me over while they fixed it

Chad Northrup: It was @supercuts. Got a bad haircut yesterday, so returned in the evening. They fixed it AND made my next cut free #custserv

Frank Eliason: my former company, Comcast has been working hard to improve (google my name and Comcast). My current company, Citi, is working to improve http://new.citi.com/2010/11/together-we-are-building-a-stronger-citi-for-you.shtml

 

And from Facebook, where I did not include my friends’ names because it’s permission-based (vs Twitter, which is public), here are the replies:

American Express has the nicest customer service people I have ever talked to. Except for maybe Southwest’s. They always say things like “we’ll take care of that right now for you” or “make sure you have a great day.” Sounds simple but stands out.

Nordstroms this morning made my entire day – live chat customer support applied a promo code for me after my order was submitted so I would get free shipping on an emergency pair of new heels since the Web site wouldn’t accept the code.

Jouer Cosmetics! BEST customer service. I ordered some makeup and when it arrived two of the lipsticks were smooshed at the top. I called to let them know about it, without any expectations. I just wanted them to know about it. They sen…t me two more lipsticks for free and I got to keep the ones I already had. The lipsticks were like $22 each. Also, Huggies…we got a big box of diapers and one whole sleeve of diapers was defective. The tape wasn’t long enough and every time we tried to put them on the baby, it would rip. I called Huggies and the woman was so apologetic. She sent coupons-one for an entire box for free. You know how expensive diapers are! I was a satisfied customer on both occasions!

I’m a huge fan of  Boston-based Rue La La. Ordered some resin plates. 3 sets of 4. The freight carrier “dropped” them on my front step. 3 of them were damaged. I photographed which patterns were damaged and their amazing Customer Service specialist hunted them down, replaced them AND gave me a $40 credit for all my trouble.

USAA – the very best customer service I’ve ever experienced. Every time I call, they offer to help me with my investments, or just to review where I’m at financially, just to make sure I am ok. They will give advice, give me suggestions where I should be putting money and once even said WOW – you are doing a great job. They never try to get you off the phone or rush you. They will even call and check up on recent investments. They are incredible.

Great Customer Service Department. UPS driver sees me at the mail box five blocks from my home. Stops next to my car. Shouts out “Mr. Corbett, I have a package for you.” Now that is great customer service and an employee who lives well the brand!!! Kudos to UPS!!! Living the Brand!

I also think TMobile has done some serious investment in training their reps. I used to think they were awful, now its almost a pleasure to call in. They make you feel like they are on your side – they say things like “yeah, that would make… me mad too” or “that would definitely not fly with me.” You can’t even get mad because they are so helpful now. I’ve been having major BB issues & the third time I called in the rep said, “well, this is ridiculous that you’ve had to call three times, after you get this replacement, *I* am going to call YOU”See More

The Ritz-Carlton has the absolute best customer service in the world. No matter the property, it is top notch. Bali, Jamaica, etc. – all superb. No one comes close.

Zappos. Order something at 10:00 at night and it’s on your door the next day for free with free return shipping if needed . . . Great example of a company that built it’s culture based on customer service from the day it started as a way to differentiate itself.

Pizza Hut in Big Rapids, MI………..awesome service and the C.J.’s special cannot be beat.

USAA is the best. They go above and beyond every single time.

I have to say that Spectrum Health in Reed City has an outstanding policy for good customer service. If someone asks for directions the employee won’t just point and explain. They escort them to the place with a smile on their face! And during parking lot construction they provided men driving golf carts who were at the car before it stopped to pick you up and take you to the door! Way above and beyond is their policy. They tell employees, “Surprise them (your customer). And they do in a good way.”

I third USAA

Readers – if a brand or company has done right by you lately, won’t you help spread the word and thank them here in the comments? Thanks for reading!

Do You Treat Your Customers Like a Deal or a Relationship? A Lesson from McGee Toyota

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What’s more valuable to your business – one customer deal or a lifelong customer relationship that results in repeat business and referrals? You’d think the answer is obvious, wouldn’t you?

My family is in the market for a new SUV. We’ve got a Toyota Sequoia that’s nearly a decade old with about 160k miles on it – and it’s time for us to get a new one. It’s been a good truck for us – so naturally, looking at new Sequoias was part of our purchasing plan. After some other research and a few peeks at various other brands and models, we narrowed our search down to a Toyota Sequoia or a Ford Expedition.

After a lot of discussions, research on both brands and price negotiations, we decided to stick with the Toyota. So my husband struck a good deal and signed the papers with McGee Toyota in Hanover, MA, on Friday. We bought our last Toyota from McGee and we have gone there for every service need for the last decade. So, it seemed to be a natural and feel-good move.

He had such a good experience with the salesman on Friday that on Saturday, after running a road race, we headed right back to the dealership with my sister-in-law who was also in the market for a new SUV.

After another great experience with the same salesman, we sat down do talk price – including an option for trading in her existing SUV (which we were driving, so the dealer could see it on the spot). The natural back and forth took place with the manager in his office (ivory tower) and the poor salesman running back and forth between him and us – trying to strike a deal.

Let me just point a few things out:

  1. We’re repeat customers
  2. We’ve been loyal customers for a decade
  3. We brought in more customers/referrals
  4. We just bought a car the day before
  5. We came after a road race – in our running gear!
  6. The point being, clearly, we were serious buyers.

As I mentioned, my sister-in-law had a car to trade in. And the manager refused to tell her the estimate for the trade in – or negotiate the cost of the car she was trying to buy – until she would commit to buying RIGHT THEN AND THERE. Clearly, that wasn’t going to happen if a) she didn’t know the value of her trade-in, and b) the bottom line cost of the car she wanted to buy, and c) her husband (who wasn’t present) had an opportunity to see the car and hear the possible deal (i.e., value of the trade-in as well as the deal for the new car after negotiation). Oh, and also – why would we commit to buying something without knowing the cost? Who does that?

This was the exact opposite experience than the day before – with a different manager (same salesman). What a shock.

After several rounds with the poor salesman – embarrassed and frustrated, recognizing we were serious buyers and repeat customers, shaking his head and apologizing – that went nowhere, we decided to get up and leave. My sister-in-law wasn’t about to commit to buying a car without understanding the costs or even the courtesy of an estimate or starting point. Why were these games necessary when we were obviously serious about buying?

Before we left, my husband (keep in mind, it was his sister he brought in and thus, he’s naturally protective) stated that he couldn’t believe the way we were being treated after having just bought a car yesterday. And he began asking about the timeframe available to us to change our minds on our earlier purchase, considering we were not only being treated rudely, and being toyed with, but the manager didn’t even have the courtesy to come out and thank us for not only buying a car the day before – but coming back the next day with another customer.

So my husband said he was going to look into the time we had to change our mind on our purchase – unless we heard from them on an estimate for her trade in soon. (Keep in mind, it’s not that he didn’t know the estimate – the salesman confirmed the manager had a price; he just didn’t want to give it to us – wouldn’t write down a number – until she committed to buying on the spot.) The salesman said “I don’t want to tell him [the manager] that, you tell him.” And my husband said, “I would if he ever had the courtesy to come out here and talk to us.”

So we walked out and as we were getting into our car, the manager finally found a reason to walk out and talk to us. He boldly sauntered to our car and walked right up to the window as my husband got out. The manager then said, “Oh, you wanna call off the deal? That’s fine, we’ll rip up the contract right now.”

SAY WHAT?

Does this bullying tactic work on others? Because it didn’t work on us. This man couldn’t give us the privilege of a face-to-face discussion when we were ready to buy another car, and insisted on playing unnecessary, old-school games with a serious customer – and then he comes out with bravado and ego and tells us he’d rather lose TWO SALES than give us a simple estimate?

What is going on here? Would YOU do this? Is this how you treat your repeat customers? I sure hope not.

I can tell you what’s going on now:

  1. McGee Toyota just lost two car sales – over ego. (Ask yourself, will your investment matter to them either?)
  2. They just lost a loyal, potentially life-long customer
  3. They showed how little their customers mean to them
  4. They created a negative brand experience associated with Toyota
  5. We’ll not only never return, and never refer someone to them again, but we’ll continually tell everyone we know not to buy from them – ever
  6. We’re now back to discussions with Ford and may abandon Toyota altogether – we’re still negotiating
  7. They showed that the value of a deal is more important to them than the value of a customer relationship.

A customer deal is great. But a salesman – especially a sales manager (or, perhaps he was the owner, which makes it even more ludicrous) – should be savvy enough to recognize when a customer is a serious, loyal and repeat customer who not only continues to give you business, but also refers others. This manager basically took the customer referral pyramid and chucked it out the window.

Am I out of touch here? Are $40-50k cars flying out the door in this economy? Are ready-to-buy customers flocking to the doors for you? Even if they were, would you treat a long time, loyal customer in this manner?

Make sure your sales team can recognize the difference between a customer deal and a customer relationship – and if you care about your business, train them to treat every customer with respect and gratitude. Even if you are in the car sales business.