Thursday, July 15, 2010

Discount vs. Differentiation

Good morning, Guerrillas!

One of my first clients was in an ultra-competitive market...really, imagine the World Series/Super Bowl/Lower Oakland Roller Derby all rolled in to one.

This firm was and continues to be world-class as a performer...as does their competitor. Each tiny bit of market share is hard won and guarded fiercely with politely bared fangs...

Even after an on-site visit, I could only make small suggestions to this firm, as they were already doing most of what I would have suggested them to do. They were already on their A-game...as was their competitor. They do have an edge that the competitor doesn't. They seek the counsel of almost every expert in the field that they can find.

Is this an inexpensive process? No. Does it pay dividends? It most certainly would have to or they wouldn't still do it. They are CONSTANTLY stretching, reaching and growing their arsenal on every front. They don't bring a knife to a gunfight. It keeps them from trying to compete on lower levels of the playing field, such as the time-honored tradition of discounting one's services to win a price shopper.

One of my earliest mentors in the business would snarl and gnash his teeth every time he would hear of our firm getting into a bidding war with another firm.

"What are we? Hookers? Car Salesmen?" He would growl, grumble and fume.

You see, we could honestly say that we did a superior job to our main competitor. But our management was absolutely petrified to stand up and say that to a price-shopper. Not even the old "remember-you get what you pay for" chestnut.

Don't discount yourself. Differentiate your firm. Make your customer experience superior, superlative and sublime. Fulfill needs that they don't even know they have. It isn't always in grand sweeping gestures. Disney doesn't create ONE BIG EVENT for you to experience to make you want to come back. They know that loyal raving fans are made when you string a bunch a small moments together that are made magical with just a little effort.

And Disney does not compete on price...you know that and I know that. They dominate by providing an unparalleled experience.

You too can dominate your market in the same way. Do all the things your competitor isn't able or willing to do. *WARNING* It means being extra perceptive and working your ass off. But it pays dividends in the end.

Hardcore price shoppers are usually not worth your time. They want every thing in the world and don't want to pay for it. Even if you make their experience breathtakingly memorable, some of them will still run to the guy down the street next time to save $100 bucks. In fact, I'm sure there are even a few of them that cannot believe that they can't find someone to pay THEM for the privilege of cremating their mama...

The new economy is creating a new breed of these shoppers. Some of these can be won by merely explaining how you are better and why the price variance is justified. But it can't be all talk. You got to prove to them that you were worth it. Do it! DANGER!!! If you really aren't worth the price difference, they'll sniff you out in a second and complain to a hundred people about how you lied and cheated just to get their money...

For many, price is merely an objection. Find out what is behind that objection and you can successfully negotiate around it. Maybe they had a bad experience with a competitor (a firm they may have used for generations) and are looking for an excuse to make a switch. Most people don't know how to go about making a move like this (especially with death imminent) so they fall back on price alone.

Don't be afraid to to use this line (or your own variation thereof) "I don't want you to make a mistake or choose the wrong funeral provider based just on price when there are so many other factors to consider as well (insert your reasoning here).

Plant the seed of doubt...but gently. Most have never given thought to the possibility that choosing the lowest cost provider might just be a grave mistake. (I'll groan for you.)

Handle these dealings delicately. Fight for the RIGHT price-shoppers, but learn to cut loose the ones who aren't worth your time and energy.

When you create the right experience for them, the next time their need rolls around, price should be much less of an issue for them.

As always, I toast your success and remain,

Dan Heaman, CFSP

PS - Down below look for a bit of advice for dealing with the bottom feeders of your marketplace competition...The Chicago Way: courtesy of Mr. Connery!

The Chicago Way

Saturday, November 21, 2009

Violence in the Funeral Workplace

The busy season lies just ahead for most of you...that time when the phone never stops and the prep room is always full and incessant floral deliveries...

Pressure...sometimes of nearly geologic proportions...

Our business is a natural pressure cooker. It can break the best of us. It can turn an ordinarily disciplined staff into a bunch of poo-flinging fraternity monkeys.

Adding the pressure of busier times can really get ugly.

Now, to be clear, I am not speaking of some Fort Hood-type situation...but I am addressing the destructive and demoralizing everyday haranguement and hostility that needs to be removed from your workplace.

After meeting with good friends over good drink last week, and be regaled by the tales of intolerable behavior (often acted out in front of ownership and management types), I see this being a situation that is probably far from unique.

Hopefully, you have a handle on it. You squash the actions before it festers into something that will land you in court...like sexual harassment, intimidation, a "hostile workplace" or any of their bastard relatives.

Strictly enforcing your firm's code of ethics (which should have a section on peer treatment & respect-if it doesn't, get one in there. Now.)

Don't run the risk of damaging the staff you have worked so hard to develop (remember the Guerrillas in the Midst post?), don't risk the liability that a damaged staff could drop the ball on something big (and land your butt in the middle of a legal and PR nightmare) and don't make a bunch of lawyers rich because a pissed-off ex-employee got fed up with the monkeys and your lack of management skills/guts etc.

Violence doesn't always mean gunfire...don't be foolish enough to ignore what's going down inside your own walls.

To end this tome with a more usual tone, don't forget the true meaning of the coming Thursday. Even if the picture isn't perfect and some challenges are facing you, be thankful you have the ability to face them. Be thankful for whatever good the past year has brought you. Being thankful lets the Powers that be know that you appreciate the blessings they have delivered to you, and that's frees them to send more. Read the Prayer of Jabez if you need an additional lift.

All the best to you,

Dan Heaman, CFSP

Tuesday, November 17, 2009

In Search of the Elusive Brand...

A lot of talk is going on about brands. Branding. El Branderino.

A lot of funeral home owners will tell you, "I don't have a brand. I don't need or want one."

Probably because it sounds like work.

My friends, the question isn't whether you have a brand or not (because you already have one, whether you want it or not), the question is, are you managing your brand?

Well, are ya?

Here's the thing...your brand could be as simple as "the cheap funeral home" or "the expensive one" or "the new guy" or "the old one."

What do you want to be known as?

When you detect the public's perception of you, you discover your brand. If you like what their perception is, you work to maintain that perception. If you don't like it, work like crazy to change it.

That's brand management.

Here's the goal to shoot for...

Be known as the place where the service is sharp, the chairs are soft and the bill doesn't hurt as bad as they thought it would...

I didn't say be the cheapest...I sure as hell don't advocate being the most expensive...(especially if you aren't worth it!)

Be the guy right in the middle...the HIGH middle.

Unless you promise and deliver absolute precision and perfection each and every time, don't be the highest.

Match your price with your brand. The world will beat a path to your door.

If you don't know what your brand is, isn't it time you find out?

Cheerfully yours,

Dan Heaman, CFSP

Tuesday, November 3, 2009

RIP - Social Media Super Strategy

Here's a bit of sad news for the Facebook flacks and Twitter twits:

REUTERS – Oct 8, 2009: “Three-quarters of small businesses say they have not found sites such as Facebook, Twitter and LinkedIn helpful for generating business leads or expanding business in the past year, according to a survey conducted for Citibank Small Business of 500 U.S. businesses with fewer than 100 employees."

Small businesses with less than 100 employees...hmmm, sounds a lot like you, doesn't it?

Oops. So much for social media being the "new marketing."

More like the "new huckstering."

Many people are touting social media as the end all, be all solution to your problems.

Don't you believe it.

Jumping on the social media bandwagon, while certainly appealing to most who like to follow the crowd, has led many lemming-like businesses astray.

Back to the basics, people. Drop and give me 3.

1- Smart advertising. For god's sake, stop placing the big Yellow Pages ad in the phone book. Save thousands by making yourself a nice visible piece of real estate in an in-column listing. If you're in a pissing contest with your competitor, be the first one to be man (or woman) enough to zip up your pants. Stop making the ad reps and directory publishers rich on your ego's back.

2- Drop the bulletins and calendars (but gently) I have made many a house call where the competition's calendar was hanging on the kitchen wall. I think that pretty much says it all, don't you? Just do it right. As far as the bulletins go, I asked a room full of 100 or so funeral directors "who has ever consulted a church bulletin before a making a purchase?" Exactly 3 people raised their hands. If you are lucky, 3 out of 100 people will notice your bulletin ad. Take that money being spent on that ad and take it directly to the church and spend it in more powerful, visible ways. You'll reach a lot more than 3% that way!

3- Smart networking. People prefer to do business with people they know, especially during bereavement. Don't be a showboating moron at the next Chamber of Commerce meeting, but be friendly, genuine, approachable and easy to talk to. Seek out opportunities to be visible without grandstanding. Being flashy, loud, boorish, phony, drunk, et cetera will only work against you.

P.T. Barnum famously stated that there was a sucker born every minute. He made millions off by taking advantage of ignorance. Don't fall for every gimmick coming down the pike. Do you think that people really want to be a fan of your firm's Facebook page? How much thought do you actually expect them to give you in the years between their loved one's funerals?

According to Reuters, the answer is "Not quite enough."

Hang in there, better days are a-comin'!

To your success!

Dan Heaman, CFSP

PS - The Ultimate Preneed Sales Letter is generating quite a bit of interest. Maybe you should check it out!

Thursday, October 22, 2009

Be Prepared to Fail

My most recent article published in this month's "The Director" talks about many of the PR events I have successfully utilized for the funeral firms I worked for.

But I have a confession to make...

Not all of my PR events were successes.

I had some pretty lame duds.

The amazing thing was and is that there is no correlation between what I thought was going to be successful and the actual success of the event.

In fact, the success of some REALLY took me by surprise. A couple of ideas that I fully expected to fall flat were the biggest hits.

Don't be afraid to launch a few duds. Remember as a kid when you'd light a bottle rocket and instead of screaming into the sky it just kind of fizzled its way up and

BLAM!!

The report caught you off guard. Because you knew it would be a dud.

The same has happen when you shot one that took off with a roar and then

PPFFFFTTT. Nothing. A pathetic leaky tire sound.

Success with PR events come from unexpected sources and places.

But don't expect any one in particular to be a sure thing.

The public is fickle. And growing more so every day.

Aye, here's the rub.

Don't let your fear of a dud stop you from trying.

Experiment. Be creative. Be tasteful AND bold.

Be prepared to fail, but relish that feeling when the runt of your PR litter brings it on like the biggest, meanest dog in the junkyard.

You'll surprise everyone.

Especially yourself.

Cheers, good and gentle reader!

Dan Heaman, CFSP

Sunday, October 18, 2009

A quick reminder...

A couple of years ago, on this here very blog, I made a suggestion for you to get some easy PR.

It's still good today...you've got a couple of weeks...

Call your local constabulary and speak with the public affairs/community relations officer.

Partner up with them and create a Halloween Safety spot in your town/neighborhood.

Pepper your local media outlets with news releases...

Put notices on local bulletin boards (supermarkets, etc.)

Buy some good candy and dress up your spot with whatever decor you choose.

Let the coppers bring the DARE police car, or McGruff the Crime Dog, or ???

And have a great Halloween!

Hauntingly yours,

Dan Heaman, CFSP