Kraft’s formula: Drop the price to download the app. As in, drop the price to zero.

For the past few years, since its launch, the smart phone app was 99 cents to download. It was bread-and-butter food-type content — recipes, meal suggestions.

The motive behind making the downloads free was to build a wider and stronger consumer base.

The best way to do this, explained Ed Kaczmarck, director of innovation and new services, was to unveil a new model: a “fremium,” with a free base, with premium content available for a small fee.

“That’s where we think the sweet spot is.”

Kraft also credits its strong relationship with Shopkick, a consumer loyalty app that rewards people for shopping in stores.

It’s a partnership that’s benefiting both parties, Kaczmarck said, although he wouldn’t give any actual numbers.

“What I can tell you is the importance of mobile has increased and is reaching a new level this year.”

And the key to this success was dropping the price on a popular product — to nothing.

These come from John Graham, who has 35 years’ experience in sales consulting during good times and bad:

1. Count more on your reputation and less on your relationships. Today’s faithful customer may be somewhere else tomorrow, retired or may no longer be in a position to help. You may find yourself dealing with new managers, gatekeepers or voice mail. Many companies now use a group process in their purchasing decisions. Having a great relationship with one of the team members may not be enough. That’s when your reputation will support your sales proposal.
2. Share all you know. One of the best ways to differentiate yourself from the competition is to be free with your expertise. Unless the prospect can understand and appreciate your expertise, choosing a vendor becomes a matter of price. The goal is to have the prospect come to recognize and value your role as an expert. It can only occur if you openly share your knowledge.
3. Pay special attention to new accounts. When you first win an account, there’s usually consensus on what needs to be done and how to do it. That may result in some quick, early wins. The customer is pleased at the rapid progress. Expectations and enthusiasm run high. That’s the most dangerous time in a new account relationship. Studies show that customers expect bumps in the road at the beginning of a relationship, followed by steady improvement. But progress may slow after a fast start, usually because you and your customer tackle tougher issues. You may have to retool your solutions. 

             John R. Graham is president of Graham Communications, a marketing services and sales consulting firm founded in 1976.  Mr. Graham can be contacted at 40 Oval Road, Quincy, MA 02170 (617/328-0069).

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A recent study of 414 Millennials’ Facebook habits showed that while 75% of people said they “Liked,” a Facebook page, 69% never came back. About 15% of those surveyed said they come back monthly.

Other findings include:

• 86% visit Facebook every day; 9% at least twice a week
• Millennials often use Facebook to “stalk,” “creep,” or check other users’ profiles
• They’re constantly changing their statuses, playing games, and staying in touch with other people
• 75% of Millennials “Like” organizations
• 45% “Like” products
• 48% accept friend requests from groups or organizations, and
• Suggestions from friends led two-thirds of Millennials to a new Facebook group; only 22% went out on their own to search for a new group.

What can a business do to bring in Millennials to its web page — and keep them interested?

The best way to feed and nourish your relations with Millennials means striking a balance with rewards, samples and useful information.

But be careful not to pile too much on them too fast, warn the study’s authors.

Millennials can become overwhelmed by your attention, so it’s important to find workable balance.

All types of business will want to prep for a fast-approaching change in the way customers pay for goods and services.

Experts say that within the next decade, smart-device swiping will have gained mainstream acceptance as a method of payment and could largely replace cash and credit cards for most online and in-store purchases by smartphone and tablet owners.

Many of the folks surveyed by Elon University’s Imagining the Internet Center and the Pew Research Center’s Internet & American Life Project believe that by 2020, the security, convenience and other benefits of “mobile wallet” systems will drive widespread adoption of these technologies for everyday purchases.

Not everyone expects the transition to happen so quickly. Some who are generally positive about the future of mobile payments expect this process to unfold relatively slowly. What will hold back adoption?

These folks believe that  a combination of factors will conspire to slow down smart device payments. Among the things holding consumers back:

• privacy fears
• a desire for anonymous payments
• demographic inertia
• a lack of infrastructure to support widespread adoption, and
• resistance from those with a financial stake in the existing payment structure.

To download the full report, visit here.

Most companies say their IT department lacks some of the skills they need to adequately support the business, according to a recent survey from the Computer Technology Industry Association (CompTIA).

Of the 500 business and IT managers surveyed, 93% said there was some gap between the technical skills of their company’s IT staff and the skills the organization needs. For most (83%) of the organizations, the gap was described as small or moderate, but 9% said their IT department’s skills are far from where they need to be.

The most commonly cited areas suffering due to a lack of IT skills were:

1. Employee productivity
2. Customer service and customer engagement
3. IT security
4. Innovation and new product development
5. Speed to market of products and services, and
6. Profitability.

The biggest challenge for organizations: Technology changes so rapidly that it’s difficult to train current employees or hire new people with cutting-edge skills.

One tool that can help companies overcome that challenge: online self-study programs for IT employees, which half of organizations said they’re using. That’s often the most cost-effective way to provide training, and it can also allow staff to learn new skills with a minimal impact on their day-to-day work.

As for what specific training companies are offering IT employees, the skills given the highest priority by the managers in the survey were:

1. Networking and IT infrastructure
2. Server and data center management
3. Storage and back-up
4. IT security
5. Database and information management
6. Help desk and IT support
7. Telecommunications
8. Printer, copier and fax management
9. Data analytics and business intelligence
10. Web design and development, and
11. Customer relationship management (CRM) applications.

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Sales organizations that maintain high levels of employee engagement generate 19% higher revenues than average companies, according to a recent Hewitt Associates study.

Meanwhile, companies with low levels of engagement average 40% less revenue than their competitors. The question today’s sales managers need to ask themselves is: How can I engage my reps in such a way that it drives higher levels of performance?

Here are three ways to do just that, and, ultimately, generate more sales:

1. Create a culture of empowerment. Employee satisfaction levels have reached an all-time low, according to an annual Conference Board study. One of the biggest contributing factors: Employees feel they have little (or no) stake in the company’s success. That feeling’s been magnified over the past few years as employees have been asked to take on additional duties with little or no reward. Most managers who have overcome that problem (or avoided it altogether) have one thing in common: They empower their employees to pitch and pursue new, innovative ideas. For sales managers, that means giving reps an active voice in how the department is run.  A few key strategies:

• Offer a monthly incentive to the reps who comes up with the most effective way to help boost sales.
• Schedule town hall meetings once a quarter, during which salespeople can air their grievances, and/or suggest new ways of doing things.
• Create senior titles and positions so salespeople have an incentive to develop their leadership skills (and you can start delegating low-priority tasks to reliable subordinates).

2. Establish shared responsibility. One of the main reasons sales pros fall short of their goals: A lack of mutual accountability (between manager and rep) for results. Research proves managers who excel at developing average reps into superstars follow these three steps:

• They take an active role in helping reps succeed: Some managers ask reps to write down three goals they want to achieve. Then the manager adds three action steps he/she’s willing to take to help the rep accomplish those goals. The shared responsibility builds trust, boosts morale, and increases the probability goals will be met.
• They offer rewards and enforce consequences: Ask sales pros what would motivate them to reach their goals, and then develop specific incentives based on that feedback. Also, make sure reps are aware of the penalties for low performance (and enforce those penalties).
• They schedule firm follow-up dates and adjust goals accordingly: Top managers make it a point to meet and reevaluate goals on a regular basis.  Salespeople who know their manager will be “checking their homework,” so to speak, are much more prone to stay on top of their goals.

3. Be a strong and loyal advocate. It’s never been more crucial for managers to stand behind their people, providing reassurance to both customers and the C-Suite that every salesperson is doing the best job he/she possibly can. In a more-with-less marketplace, where salary increases and bonuses are difficult to come by, loyalty may be the only thing that keeps a top salesperson from testing the job market. Look for opportunities to go to bat for your salespeople, and consider sending a departmental email every Monday, acknowledging something positive a rep did the week before. A good manager knows how to discipline an employee for doing something wrong, but a great manager knows how to reward an employee for doing something right.

Source: Bloomberg Business Week

These five con men went down in history for the infamous way they fleeced the general public: 

1. Charles Ponzi: While many people may not have heard of Charles Ponzi, most of them are very familiar with the term Ponzi scheme. Ponzi was an ex-con who discovered a loophole in the international postage market which he then exploited to in an attempt to make thousands of dollars in illicit profits. Despite the fact the scheme proved unprofitable, Ponzi began convincing executives in cities around the country that he could guarantee a 400% profit on any investment they made in his postage gimmick. Much like Watergate, the Ponzi case was so highly publicized that it is now used to describe any similar pyramid scheme that crops up in the media.
2. Soapy Smith: Some might argue that Soapy Smith was more of a shrewd businessman than he was a scam artist. But the arbitrage which made Soapy famous was a quick-hit scheme where Soapy would set up on the streets of a city and sell bars of soap for a dollar a piece. The way the scam worked was that Soapy would allow his audience to watch as he wrapped several bills of various denominations around the bars of soaps, then wrap the bars of soap and toss them into a bucket. Soapy would then sell the bars for a dollar a piece, allowing everyone in the crowd an opportunity to win big bucks. Smith would even hide a shill in the audience, who would walk up and buy a bar of soap with a hundred-dollar bill inside to drum up attention. The catch: Smith would switch out the bars of soap with big bills wrapped around them for an entire bucket full of worthless bars of soaps.
3. Bernie Madoff: Madoff is the modern-pay Charles Ponzi, taking the rich and famous for millions, then convincing them to invest more of their savings month after month with false profit sheets that ensured them their money was doubling, and then tripling, despite the fact the entire economy was crumbling.
4. George Hull: George Hull made hundreds of thousands of dollars back in the early 1800s by perpetuating a public hoax known as the Cardiff Giant. Hull put the nine-foot “giant” on display in various cities, and charged a nominal fee for people to come and view the corpse which was propped on-stage. The hoax was so profitable that P.T. Barnum first offered to buy the giant from Hull, and then – after being turned down – Barnum suddenly came up with a Cardiff Giant of his own. The public was none the wiser until the two giants were both on display in the same city at once. It wasn’t until years later that the original “giant” was dug up that it was finally proven that the Cardiff Giant was nothing more than a statue all along.
5. Frank Abagnale: Abagnale was famous for pulling both long and short cons back in the 1960s. His endless string of forgeries, check scams and fast-money grabs were so legendary that they eventually became the subject of a major motion picture (and eventual Broadway show) called “Catch Me If You Can.”

His proof: A 2010 video of EPA Region 6 chief Al Armendariz in which he says EPA’s basic strategy is to “crucify” and “make examples” of oil and gas companies.

Armendariz has since apologized for the analogy, saying, “It was an offensive and inaccurate way to portray our efforts to address potential violations of our nation’s environmental laws.”

He prefaced his analogy in the video by saying it was “crude and maybe not appropriate,” but used it anyway. He has since resigned.

Inhofe will use the video as proof that EPA is set on destroying fossil fuel-based energy companies.

He says EPA has been intimidating fracking companies into paying for alleged damages to water quality that the companies didn’t create.

Read Inhofe’s statement here.

1. When making an appointment by phone, start by talking about what you’re selling. It doesn’t make any difference that the person you’re calling doesn’t have any idea who you are or the company you represent or why you’re making the call. Just charge ahead. This will be almost 100% successful in getting the prospect to hang up.
2. Don’t spend time and money finding ways to cultivate prospects. If prospects aren’t smart enough to figure out the value your solutions can bring them or how your knowledge and experience can benefit them after talking to you for a few minutes or getting a letter in the mail, don’t bother trying to share your ideas and expertise with them.
3. Never take time to ask questions. When you’re in front of a customer, use every minute to do as much talking as you can. Asking questions or trying to get the prospect involved in the conversation is counterproductive.
4. Never listen to what the prospect is saying. Remember, you’re there to make a sale, so don’t get sidetracked when the prospect starts talking about issues or problems. Even though it can be difficult, stay on track and be prepared to being the conversation back to getting the order.
5. Always assume that the prospect is looking for the lowest price. Have at least a three-tiered pricing schedule in your briefcase. This way you’ll be ready to lower the price when you call back and prospects tell you they’re not interested or your price is too high. A few days later call back with a new, lower, “manager approved” price. This pricing system is certain to create customer confidence.
6. Don’t bother trying to figure out a prospect’s problems. You don’t want to get bogged down in the prospect’s issues. This will only deflect attention from your presentation. You’re there on a mission, so don’t let anything distract you.
7. Forget about small accounts. You’re only interest in getting the big fish in your boat. Put all your time and effort into going after the big ones. Small ones are too much bother, and servicing them is not a good use of your time.
8. Don’t waste valuable selling time following up after making the sale. Follow-up is for Customer Service. Keep going forward; don’t let yourself look back. How can you be expected to meet your quota if you’re servicing accounts? If the customers need something, they’ll call the office.
9. Stay focused on making the sale and ignores the prospect’s buying process. Getting on the prospect’s wavelength is for inexperienced salespeople, not pros.

When customers look no further than price, chances are, no one’s adequately deliver the message to them on the superior value you offer.

   Here are 10 proven ways to help customers become value-conscious rather than price-conscious, adapted from the book Pricing with Confidence, by Reed K. Holden and Mark R. Burton:

1. Identify. Concentrate on which products or services are better than those of your competitors. Recognize that value, quantify it, and put it into competitive benefits. Make sure your customers can explain why you’re more valuable than others in your industry. Confidence in value breeds confidence in pricing. To really stand apart, try to pinpoint areas where your unique advantages intersect with the customer’s critical needs.
2. Establish credibility. When you discuss prices with prospects and customers, you need to be able to stand behind what you’re saying. Try to understand how the prices were arrived at. What process was used? What criteria were used to evaluate pricing options? Without answers to these questions, you may be put on the defensive and hard-grinding customers will sense weakness.  
3. Show knowledge. Let your customers and prospects know they need your knowledge and skills. There’s a great opportunity for salespeople who recognize the opportunity to gain knowledge and develop expertise as they work with customers.
4. Anticipate. Some prospects make unreasonable demands just to measure a salesperson’s response. Salespeople who can control their emotions and hold their ground are usually able to handle unreasonable demands. They look at pricing as a problem-solving process, exchanging information and generating creative tradeoffs and alternatives.
5. Pinpoint key problems. Prospects usually forget about price when you identify problems and help solve them. It’s your job to point out the relative advantages of your product or service and show how it will help prospects solve problems.  
6. Analyze the competition. Look at all aspects of your competitor’s offering, not just product or service and price. How satisfied does the prospect seem to be with the present supplier? What value can you bring to the table that your competitor isn’t offering? You can’t come up with a competitive strategy without fully understanding the present supplier’s position, strengths, weaknesses, strategy and resources.
7. Recognize the change in customer loyalty. There’s far less brand and vendor loyalty than in the past. When customers don’t understand value, they may shop around for the lowest price. Successful salespeople resolve the loyalty problem by directing the presentation towards value, not price. They uncover the customer’s need, analyze the costs associated with that need, and translate features of the product into what it will do for the customer.
8. Understand the customer’s position. Customers are paid to press for concessions, especially in price. Effective salespeople don’t give in to every demand for fear of losing the sale. They try to find alternative tradeoff opportunities that will get the customer to think in terms of value and not price.
9. Create. Look for conditions for satisfying customers. This is a key to overcoming price objections. Give your customers ideas on how to improve their business operations. During your dealings with a wide variety of businesses, you probably pick up ideas and techniques that can be helpful to other customers. Try to pass along helpful suggestions to customers. They appreciate this type of concern and it will get them to think a lot less about price.
10. Focus. Customers want you to focus on how you are the same as your competitors to level the playing field on price. But you have to focus on how you’re different and feel confident about the services you provide to make your solution better. Take the understanding of how you create value and build the confidence you need to be successful in today’s tough world of customer negotiations. Make your customers respect you and want to do business with you.

A recent MarketingSherpa survey of 1,500 sales and marketing execs found the most effective way to drive buyers to their company websites is by providing valuable digital content.

Fifty-percent of respondents agreed content creation was “very effective” in terms of attracting top-notch prospects to their companies’ sites on a regular basis.

Keyword research, adding tags to posts, and blogging were also considered highly-effective practices (click here to see the full results of the survey).

The bottom line: Unique, well-written content gives search engines something to index, and supports the engine’s goal of providing the most relevant results in response to a query.

You do all you can to impress, woo and build a relationship that turns into loyalty. So how can customer service pros nurture those dating-like relationships?

Business expert and author of Kiss Your Customer, Andy Masters, says you can do a lot of the same things young couples do (without missing curfew or parking in the woods).

Build the relationship

1. Be creative. Sending roses on every occasion to a girlfriend may seem romantic, but it soon becomes predictable. What’s expected is often under appreciated.

Lesson for your service pros: Switch it up. Reward customers when they don’t expect it with different things – discounts, written (We love you!) notes, sample products, inclusion in a focus group, etc.

2. Recognize big events. Couples celebrate the anniversary of their first date, wedding, the first time they had a drink together, adopted a puppy … anything for a reason to celebrate.

Lesson for your service pros: Keep track of and recognize important dates – customers’ first purchase dates, birthdays, professional and personal accomplishments. Send handwritten notes, chocolates, balloons, soft pretzels, sparkling cider, etc., to celebrate them.

3. Laugh. Couples laugh all the time – at funny movies they see together, at shared experiences, at themselves and the silly things they have done or will do.

Lesson for your service pros: Use humor with customers when appropriate. One of the best ways: Make light of yourself, but avoid jokes that may unknowingly offend others.

Seriously, the mega social media site has decided to turn some of its influence and power into an altruistic pursuit: Encouraging people to offer organs to help those needing transplant.

The aim is to teach people about organ donation, and raise awareness to levels that will stimulate an increase in people signing up to be organ donors.

There are 114,000 people in the U.S. who need a life-saving transplant. An average of 18 people die each day, according to the Facebook announcement.

Facebook and its 161 million members already are the No. 1 source for acts of kindness, representatives point out. For instance, last year Facebook users tracked down and returned treasured mementos to Missouri families who thought they’d lost everything in the Joplin tornado.

Doctors say it’s possible that Facebook’s initiative could be a real game changer.

It’s easy to get involved.

Facebook users can declare and update their organ donor status. That — and other health-related information — will appear in the Health and Wellness section, along with links to state and national registries.

Facebook users are even encouraged to share their own stories about what led them to make the decision to become an organ donor.

Some publishing industry people have described it as a canny PR move, since Facebook is expecting to get its IPO paperwork approved in the next week or two.

The four sale-killers, and their alternatives, as listed in the April issue of Customer Service Advantage:

• “I want to …” That takes the focus off customers and what they need and places it on what you think they should have or do. Instead: “You may want to …”
• “You should …” It often comes across as condescending. Customers want to think they know what’s best for them. Instead: “Have you considered …?” or “What do you think about …?”
• “Can I have a minute of your time?” You’ll almost always take more time so don’t set up the wrong expectation. Instead: “Is this a good time to talk about this?”

• “I can’t do that, but …” A sale should be on customers’ terms. It’s best to avoid the word “can’t.” Instead: “What I will do …”

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