Magnus Marketing Blog

In today's Wall Street Journal, there was an article in the lifestyle section of the paper discussing the "secrets" of French parents with respect to the creation of well-behaved children. The key pointers are what most people would consider obvious: delaying immediate gratification, telling the child "no", and being consistently firm in an educative fashion - and a few more things. All of which I may add, my parents imparted to me - in fact, I felt incredulous that this article was written or HAD to be!!!

Then I thought about Kohl's and the "YES, we can policy" which has gotten so out of control that the "kids run the store". At least in our store, coupons lack expiration dates, discounts are freely imparted to anyone, returns years old are refunded without question for more money than they are worth (that is opinion, there), and essentially customers can do anything they want.

Case in point: A POS colleague of mine told a customer that there were no coupons. Believe it or not, at occasional points in the year Kohls will actually NOT have coupons, discounts, scratchoffs, etc. The cashier advised the customer in a stern, but professional tone that Kohls did not have ANY additional coupons, promotions, etc. The net result is the the customer wrote a SCATHING letter to corporate which went down thru the ranks. My friend was called into our Store Manager (who knew the story and felt it was overboard) who had to discipline her - as to the new policy of writing anyone up who received a corporate complaint (unfounded or not). That customer claimed that because she owned a Kohls card and was a loyal shopper she should get a discount, regardless of whether there was one available or not. If you even question a customer about whether they have a card and intend to use it to receive a discount, you are labelled rude. If you say "NO" to a customer, they immediately want a manager who will override you and "give it to them anyway". The first words out of a customer's mouth when they come to a register isn't "HI" or "nice day", it's "I want my coupon", "what discounts are available today", "I forgot my coupon, give me my 15%", "any Kohl's cash?".

Without discipline, the customers are too empowered and are running wild. Like children with no rules, the customers get what they want, when they want it, how they want it. Marketers need to be aware of how bending the rules or eliminating them can create even worse customer service, lower profits, and wreck a business.

Consider: Now customers will call managers and write corporate even when the rules are correctly enforced - service levels need to be even higher to keep them happy and "in line". Eliminating coupon expiration dates will erode profits and reduce sales intentions. Customers who abide by rules get slighted and will not shop where they aren't treated fairly. Scenarios that aren't far-fetched, particularly if things do not change to a more compromiseable situation (i.e., Kohl's cash is still redeemed a day or two after expiration or for a good justifiable reason like a snowstorm, versus whenever people feel like using it - even months later!!!).

Hopefully things will change and swing to a compromiseable middle ground which is fair for customers and employees of Kohls alike. And, entrepreneurs pay heed - it is OK to bend a little - but not so far, that you reset expectations and create monsters.

So, as some may have noticed I did not appear on the RecruitingAnimal show as scheduled. I wanted to, however after talking to the Animal - it was not in my best interest to do so. I had listened to his raucous shows in the past and had heard a few with Shally - as he was my client and I wanted to keep on top of what Shally was doing.

In this case, the Animal contacted me because I have the guts to publish the names of clients who don't pay me. I do that because my blog is intended as an educational vehicle which highlights issues and provides insight into situations that occur to business owners and sole proprietors like myself. And, the message is that people should be cautious about working for or with those organizations. My journalistic intentions are 100 percent factual and are not libelous or slanderous in any way.

What the Animal wanted to do was put me on the "hot seat" and would have yelled at me, although he was OK with me not revealing any client names, he would yell at me. In a raucous setting and in an uncontrolled environment what could come out of my mouth may be construed as libel or slander. I may be tempted to reveal a name and say something more of opinion than fact. In addition, right now I am involved in a small claims action against another deadbeat who decided to withhold the last payment. I would not want anything to jeopardize my winning of that suit. Better to destroy deadbeats using the proper channels in the appropriate fashion. I would have loved to go on the RecruitingAnimal show and tell people how to go about really dealing with deadbeats and encouraging the "pen is mightier than the sword" method also.

Also, as I am selling to staffing agencies and would like to work with one again, gaining a reputation as a "chicken" or chickenshit is not a good moniker to have. I could see calling someone and having them say - 'yah, i heard of you - the chickenshit who writes, but wouldn't yell about your deadbeat clients'. Bad. Salespeople like me are groundbreakers, chickenshit I am not.

So, while RecruitingAnimal is supercool and his show is a great forum. Just wasn't for me at this time. I think also most people know the story with Arbita and how Shally is now dealing with his own deadbeat situation (what goes around comes around) and most of the deadbeats are belly up anyway - as they deserve to be.

Remember Justice is served in many ways.

Holiday season is upon us and as I have a second career in retail, I wanted to share some shockingly rude customer stories that left my mouth agape and my hand in my head.

J-LOW: Was working customer service, which luckily was rather quiet when a neatly dressed woman comes up, plunks a Jennifer Lopez shirt on the counter and says she would like to return it. I proceed to execute the transaction which takes less than 2 minutes. Suddenly, as I go to push the final button, the woman says, "Wait, I did not tell you to do it" to which (after she handed me the receipt and merchandise) I said, "oh...well I can always void it out". She says, "I need to ask my daughter and confirm that she wants to return it". She proceeds to whip out her cell and call the daughter, who wasn't available, then call someone - grab a "tell us who to thank card" and proceed to write down directions for some business meeting, call SOMEONE else, then call the daughter again. In between her phone calls, I asked her to kindly step to the side as - uh - there were other customers in line patiently waiting for return service. Finally, after two customers were helped, she looks at me and says, "Ah, well. Just do it - couldn't reach her" turns on her well groomed heel and walks away. My mouth is agape and I am thinking and saying quietly "OH, NO - YOU DID NOT".

I KNOW, YOU DON'T: While running the register as backup, a neatly dressed lady and her mom approach the register. The lady plunks a J-LO flyway sweater on the counter and I ring it up. She rummages in her purse and exclaims, "I have a 20% coupon" - to which I stated: Hm. I don't think there are any 20% coupons, there is a 15% weekend pass out. She absolutely insists, that I - the worker with nearly 10 years experience at Kohl's am completely wrong. She pulls out one thing, then another, then finally whips out the 20% coupon and points and reads - see Thursday through Sunday. To which I add, "yes, but it is good next week - November 17" for Friends and Family. The end result is that she procured another current coupon which actually put her at a better price. Her mom got a gift card for someone. Did I fail to mention - she is a teacher?

COUP-ON: Kohl's is notorious for handing out discounts to everyone regardless of charge status, but it is the brazen people us retail workers absolutely detest. Again, at the register, a gentleman of India origin arrives at the register. First, he swaps a charity polar bear out because the face is a little puffier on one side than other. Then, he swaps out a pink hoodie whose $15 price he questioned because it was a size too small for his child (yes, he held up the line while he called his wife to confirm). And the topper, he pulls out a pick-a-day and pass which was sent only to Kohl's charge holders. When asked, do you have your Kohl's charge - he replies "NO...I don't have one". And he didn't want to open one and as per Kohl's policy, we handed out the "reserved for Kohl's card holder discount" to him anyway.

What runs through these three horror stories is the audacity of the customers who cared only for themselves (narcissim), entitlement, and nastiness/attitude of these three people. The holiday season will be a tough one - not for the mess, not for the hustle and bustle, or new "policies" the management is enforcing - for these kind of people which destroy everything Santa stands for.

*Note to any clients that read my blog: unless the opportunity is spectacular - I am not looking for full time employment.

One of my resolutions is to talk to any prospective clients or recruiters that contact me and talk to everyone. In the event I lose clients or experience financial distress, I would like to have a call list of people that could potentially help me as a resource whether a job or another opportunity.

One day I get a ping through LinkedIN from a recruiter who presents an interesting opportunity for a local company for a VP of Marketing. Hm, sounds interesting so I am willing to talk. The recruiter and I set up a call, which has to be late in the day because I work all day and many evenings. The recruiter calls me and explains that the company insists that the VP of Marketing be local, have a marketing background, and have marketed SAAS. This SAAS was important, and had to be noted all over my resume - she says. I ask, what type of marketing do they want - what is their goal? She said, "Marketing". To which I then had to explain the difference between new business marketing and customer loyalty and strategic development. To which she said that they had some great customers and were looking to go into new markets (ah, I guess new biz, strategy). She kept emphasizing how great the people were there. She wanted me to rewrite my resume to emphasize the "SAAS" (which i had explained I sold SAAS before it was SAAS - but ASP hosted apps). She also expressed concern because the last five years I wasn't in Marketing - no MARKETING. To which I had to explain that my experience now is strategic marketing and sales doing one of the hardest things ever - get businesses with no clients, clients and build a market and marketing program. Ah. I sent my resume, we were to talk on the weekend. I then got an email that her friend's husband passed and she wouldn't be able to talk....and I never heard from her again.

Let's dissect a few points here that made this the worst recruiting interaction ever:
1. The recruiter was NOT well versed in sales, marketing, business development and did not understand what the hiring manager really needed. In fact, I am not even sure the company really knew what it needed, but without the right discussion, that would never be found out. Why did they want or need Marketing? What kind of marketing? What did they do that wasn't working? Why, if they had a sales team, did they need a VP of Marketing? etc.
2. The recruiter was NOT well versed in technology or what SAAS was or the requirements to sell and market SAAS. Almost my entire client base is SAAS which I have marketed and sold for - for over 10 years.
3. I am a passive candidate, you need to work around my schedule not the reverse. If you want to close business for your client, you do what you have to - call me evenings or weekends.
4. Why do I need to rewrite my resume? Why a resume at all? Why not forward my LinkedIN profile to the hiring manager and note points of accomplishment? One other point, I am glad the recruiter thought the company had great people, but that is all in the eyes of the beholder - I fit into certain highly autonomous environments with high value people. They may not be great people in a great culture for ME - not a selling point dear.
5. Finally, I am sorry your friend's husband died and I am sure she is upset, however that has nothing to do with my situation. What if I were married with kids and my husband unemployed for months and I need to feed my children? Isn't that equally as important as your friend? Balance your priorities.
6. Finally, finally - the disappearing act - no follow up, no apology, no split with another recruiter.

I also feel sorry for the client who did not have the opportunity to talk to me. Maybe I could have provided some insight, maybe they could have become a client for me in the future or an employer - who knows.

This is why recruiters get a bad name. With recruiters like that, companies SHOULD have the hiring managers do the job themselves.

I had spoken with a client last week who informed me in a very serious tone that they were speaking with a prospect, a mid-market CIO and asked his advice. One thing he told them was that mid-market CIO's do not respond to emails and phone calls, particularly phone calls from people they don't know. They rely on their own internal network (which apparently you have to break into). She said, no matter how good you are - like you Rachel, it is impossible to sell to these people. A little extra info is that these CIO's are part of the Gartner Group club. My client now wants to stay with shows more than any outbound since that gets faster results.

A couple thoughts went through my mind here (aside from concerns about losing the client):
1. The Gartner Club probably represents 1% of the million or so midmarket companies out there, which means that while you get a few who have a need and visibility - then what of the others who have a need that are not being reached?
2. If the CIO's are are the bell weathers of innovation aren't interested in innovation then what does this say for the economic growth? If the CIO's stay within their network of peers only, how are they promoting competitive advantage for companies through technological innovation or application? They are using the same stuff, by the same people, in the same way? Wow, that's as bad as the marketing people who use the same agencies and tools? Boring.

I also had found a posting from a CIO who wanted to create a do not call list which had a rah-rah agreement from peers.

Then I realized, who cares? The CIO is going the way of prospecting people - walking dead, right? I mean with SAAS and IAAS and all the "as a service offerings" no one really needs a CIO - particularly a mid-market CIO. Consider that most applications will be hosted by "GOOGLE" type companies, so all you need is someone to maintain physical infrastructure. As a salesperson, I don't want to talk with or need to talk to the CIO - they wouldn't know the feature/benefit/need of a SAAS solution for a marketer, accountant, or finance person right? I don't need to call them or need their approval or advice on technology implementation.

So, I guess the CIO's can retain their club and set up the do not call list. No one cares to call on them much anymore anyway (unless it is a pure technology solution).

A recent Inc. magazine posting (one I tried to find, but could not locate) talked about how cold calling can be an effective way to reach prospects and is usually the most reliable way when in start-up mode (lacking funds) to reach new customers. While many people, including myself, indicated agreement and reinforced the points in the posting/article, one asshole - and there usually is one - responded that he never, I mean never responds to cold calls from "SOB rude interruptors" and won't do business ever with anyone like that or that he doesn't know.

Every time I run into these people, I challenge them and ask - well, if you are a startup with a great product or service bootstrapping your company and have very little money to spend on marketing (because you are building an ever better market aligned product) how would you reach out? To which I never received a good answer.

Of course, the asshole isn't spending his days on Twitter monitoring tweets from unknown entities or companies right? My email is either going into SPAM (because it is unrecognized), being lost in the myriad of known emails (many people get "hundreds" a day), or is deleted resulting from unrecognizeability or heading - it may take "hundreds" of spammy like attempts before asshole really READS the email. Not to mention, for example, many of the companies I work with have rather innovative solutions that aren't quite well understood first time out. I may know the asshole on LinkedIN, but as many people say - going through the network will delay interaction by a load of time as I may be dependent on 2nd or 3rd level contacts to pass my introduction along - new businesses have no time with runway at stake to wait months for an introductory response. As a startup with competitive issues and limited funds, I can't spend on advertising and don't want too much web or internet content floating around where competition will get wind and slay me before I get a chance to get some traction.

So the best point contact way to target my potential buyer and engage in discussion that can help me build and align my product/service is through a good phone call along with point targeted email.

Along the lines of the "I won't take calls" are the great people who say "I don't work with companies unless they are vetted by Gartner or have (as I was informed recently) been in business for five years and have named customers". Gartner costs five digits to work with, you have to pay for their services which are generally out of reach for most start-ups and without the support of customers, start-ups don't make it five years. If you don't work with us and the next guy doesn't either for the same reason and so-on, then we have no way of building our business to get those named customers that you need so desperately to prove ourselves.

One of the reasons I believe our economy isn't growing is because of the limited myopic views of not only these type of people, but also companies that refuse to work with anyone or anything "not known" to them. If people and companies are reluctant to invest in the growth of start-ups (interesting though, they will put money into companies that are known like IBM which have a large majority of employees offshore, right?) then they are cutting off local enterprise and shutting out innovation. Will the limiting cliques of social networks kill the innovation of American Enterprise? Would Steve Jobs have had a shot today? Or would no one have bought an Apple computer because it wasn't "liked" on Facebook?

Thankfully, there are some foresighted dice rollers who recognize that their jobs exist because another foresighted entrepreneur created the business they work for and are paying it forward. They are the people that start the takeoff so the myopic can - usually way later - sign on. (Forget competitive advantage, right?).

No wonder this country has lost ground.

Oh my! What weenies Twitter and Email have wrought with the interpersonally challenged. I can't understand why people just cannot pick up the phone and actually speak with people to communicate or get anything done? I love the response one of the reporters or editorializers of the news made with respect to the BlackBerry (Research in Motion) outage. S/he essentially said, this outage would not be a big deal if people would have just used their phone and CALLED people instead of texting or waiting for an email to appear.

We have become a nation of anti-socials, phone reluctant because that would actually mean you have to hear cadence and emotion in voices and possibly be rejected with feeling. Of course, so much easier to hit the delete key, right?

This week, two issues occurred that highlight the need for the kiddies to drop the texting and email and learn how to use the phone.

1) A prospect at one of my clients had a few simple questions about a software solution his company was very interested in using. The prospect was already qualified and was inches away from signing on the dotted line to acquire the software. I sent an email to my client with these questions, the email was acknowledged. I waited, waited, waited - almost five days for a response. Meantime, the prospect is evaluating solutions and response time can affect perception of service. In between I sent another email to my client, which was acknowledged, saying has there been any response? To which it was stated that the company was contacted and was awaiting response. Finally, a week later I gave up, risking the ire of the client, and called. In exactly 2.5 minutes the questions were answered and the prospect was emailed AND called, a response thanking me received not more than 2 hours later. It was clear that my client, who has done this before, has phone reluctance. The deal could have been blown because of a fear or disregard for dialing the phone.

2) A manager at Kohls was overheard complaining that some type of signage was needed at the store. She stated she had emailed the district manager who had not acknowledged the email and ended up bringing signs that were incorrect. She never picked up the phone to reiterate that an email was sent and specifically what she needed. She too is in the younger generation.

Relying on text and email solely, particularly at this generational point is not effective. As in case number one, a sale could have been blown - REVENUE LOST because of a lack of appropriate communication. In case two, the wrong materials were brought or may have not even been acknowledged.

This also goes to the importance of backing up emails and marcom with some type of point contact. With any other marketing channel, email, social media, web will become cluttered with crap - tons of it, more than ever with greater filtering and scrutiny to the point that much of it will be ignored making it REALLY difficult to reach anyone effectively. As long as phones exist, particularly desk phones or published cell - a phone call can make the difference between revenue and "out of business".

Whether intentional or not, some managers tend to "fall in love" with an employee and hold them on pedestals affording them attributes and importance that from my experience is generally not deserved. For some reason, the manager refuses to see shortcomings or issues that generally will manifest later and long after many of the true valued employees have departed or have been irreparably harmed by the presence of the "oh favored one". Here are a few examples:

1. At Kohl's a manager took a love to a an employee who was fast, the person was always finished in the department first, her hair streaming with sweat down her face. She would go to other sections and other departments and get done. She was the backstabber who told this manager how slow I (and others) were which resulted in a disciplinary cut hours for me and others. Now, this would be acceptable - if it were true. See, the reason why this person is so fast is that she doesn't do anything - she puts returns away for her section of the department only and simply shakes the racks into neatness - no rack integrity, no weeding of items that don't belong, no sizing or colorizing, nothing. Plus, she is negative and sarcastically biting to colleagues and customers. In fact, because she doesn't do rack integrity, anyone who follows her (next day for example) has to do it - resulting in a major slowdown and double the returns and work.
2. A manager hires his dream employee, the welcome message was over the top with joy about how the employee would change the business. She has tons of experience in the industry and worked with key vendors, plus knows people. He defended her to the gills citing her experience and knowledge and success. Although in the position for a mere matter of weeks, he said that she will be promoted into a more responsible position (based on what success measures? What revenue growth is she responsible for?). The trouble is - the company is terribly inbred which is preventing any progress to new areas of opportunity or realization of changes in the industry. Additionally, the employee has not recorded any (although titled "business development") indication of real revenue growth or impact at any prior employment siutations, not to mention the person has not stayed at a company for more than 6 months to a year - not long enough to HAVE any real impact. Red flags flying everywhere, plus she isn't as sharp as indicated - and - of course, why didn't she work at the company before - when the opportunity existed?
3. I love to talk about Hexaware and how the US Head hired a Marketing Manager who he thought was just the best, didn't like me very much. Like I say, when "oh favored one" disloyally left for a better opportunity - sulking because she wasn't promoted to a more responsible position...and I came up and worked with my boss (the one who had the right skillset to drive the business needed), the impact was significant with dramatic increases in leads and new business. I and the right fit boss drove what the company was striving for (not to mention I streamlined the marketing budget and cut fat where the prior person just added and added and added).

My last employer favored everyone but me, although my particular skillset and knowledge was absolutely critical to the success of the business. I am starting to believe the employee that is disliked is the one who will really contribute to the success of the organization, probably because they take an HONEST and counter-approach to what the owner believes and sees things without the haze of love or bias.

So business owners, managers, entrepreneurs - fall in love with your spouse - not your employee. Favor those who actually do the job, meet performance goals, show the right attitude and care about themselves and the company's success - and not just one person, but all people. Then you too, will have loyal, happy employees that will do great things for you.

When people write about the influence of corporate culture and the impact it can have, one should look no further than my microcosm of the business world - Kohl's. Recently we had a management change and if anything can be so opposite - this is definitely it.

In addition to recently having an experience that I still have to call corporate about - I was unfairly singled out for a alleged "performance issue" based on the backstabbing bitching of a single colleague. After 9 years of steady and positively appraised performance, gee - what changed in less than six months? The management is imposing policies and expectations without communicating, creating an opposing culture of punishment versus reward. My capabilities were once highly valued as was other aspects of the tenure and knowledge, customer focus, and attention to detail. Now, that is not.

It amazes me how with a management change at the top, in a mere matter of months, an organization can go from being a great fit based on values and standards to something so opposite! It also reinforces the "if it ain't broke" don't fix it - a great team can create great stuff. Even the long term customers, the ones who spend a lot of money with us have noticed the blanket of autonomaton and unhappiness over the staff. It is that palatable - except to the managers.

I will no longer be writing about the Kohls store I work at, if you have nothing good to say - better not to say it. If anyone needs a night/weekend sales clerk who can do everything under the sun on the floor in retail - contact me. :)

I replaced that client and actually got another one, 2 for one which is usually what happens. However, the economy is slow and it is very hard to find the right type of companies to work with. Particularly ones that are B-to-B and have some product or service that they are early phase launching. In fact, my new client an IT solutions company received a major opportunity within about three weeks of calling and have a few leads. The truth is, that usually is my pattern - fast ROI.

The former client has been remitting commission checks to me as deal after deal continues to close. However, none of the hotter newer opportunities closed. Curious, I tried my CRM login, which still worked, and took a quick look. I had meetings and pending deals with large companies noted for follow-up. What I saw in the CRM was interesting - my former client appears to have hired his aggressive salesguy - a smile and dialer. Tons of calls, lots of activity. Explained why none of the pending deals closed.

No matter how many times I tell people that phone banging results in nothing but quick low priced deals that mean nothing to anyone and that real business is developed over time in a more strategic manner, they pooh-pooh until they realize that they secured half the salesguys salary and lost money on whole thing.

Banging the phone, folks, doesn't work unless you have an established brand, credibility, and a strong offer. Don't do it.