Here’s a scenario we have all seen.
One of your AE’s sells a big Digital/TV schedule to a Personal Injury Lawyer. That’s YAHOO time.
Then we turn the client over to production.
A producer puts together a commercial that looks like every other lawyer in town. You’ve seen the ad. Lawyer, nice tie, law books in the background. “At the law firm of Joseph Smith, we specialize in helping injured people…”
The client likes the ad because its looks like all the ones he’s seen in the past. Except that ad has already been done for years in your town. It doesn’t differentiate your client from the 8-10 PI lawyers who have been on your station for 20+ years.
So, what’s about to happen? Your new lawyer’s campaign is headed to the “lack of results” dumpster.
You are experiencing what I now call CHIP. Churn In Progress. And CHIP happens!!
Where’s the miss? It’s with our producers. Well-meaning folks who can produce technically beautiful spots that don’t work.
One of the issues we need to pay more attention to is our churn in new business. As we all pay more and more attention to new business development, we’re writing more new business. And we’ll need to continue to grow that number. In fact, my bet is that all of us (AE’s, sales managers, GM’s, AND even consultants) will be judged by how effective we are at new business.
But if we write a lot of new business that doesn’t renew, it’s like being on the hamster wheel—running like crazy and still falling behind.
How can you reduce your new business churn significantly? One way is to make sure your AE’s are asking for enough money to move the needle.
Another huge way is to improve the marketing expertise of your producers and AE’s.
One of my favorite marketing lines is that there are “Riches in Niches.” It’s my way of saying that if a category (like personal injury lawyers) already has a couple of dominant players, you will never win by adopting a “me too” strategy. You must carve out a niche. We’ve helped lawyers and other clients all over the country do that and achieve measurable results. Those clients renew and renew and have no doubt about the power of our Digital and TV products.
Its Marketing 101. But almost none of the people producing ads for clients know that, and damned few of your AE’s do either.
You might be reading this and thinking that it’s a commercial for our company. Yes, I feel strongly that this is one of the KEY things we help our partner stations understand. But even if you have ZERO budget for this, you can still find ways to train your folks. Find some great new marketing books. Or some golden oldies like Trout and Ries 22 Immutable Laws of Marketing. The concepts they outline are more relevant today than they have ever been.
What is the economic value of reducing the churn on your developed business? What would it be worth to you to significantly increase the new business clients who renew?
I think we need to remember that it’s not just new business we want. We want to grow the total business, and I think increasing our retention of new business clients is one way to do that.
Have a GSM or GM meeting in your future? Why not have Jim Doyle or John Hannon speak to your meeting about how to turn your sales staff into a Sales Force? We promise powerful, thought-provoking content customized to your company’s needs. Contact Jim Doyle at firstname.lastname@example.org or call 941-926-SELL.
We’re also taking reservations for our 2018 High Performance Sales Manager’s Boot Camp – January 28-30th in Tampa, FL. Do you know someone who could benefit from this high intensity training? Someone who would walk away saying what this LSM did after attending Boot Camp – “This was life changing in both my personal and professional life in many ways… But not in the motivational type of way. In a real-world, step-by-step, instructional action plan type of way!” Interested? Go to BOOTCAMP or contact Anne Fowler, email@example.com or call 941-926-SELL (7355) for more info.