IPEX thread, why have so many printers failed: the conclusions
Friday 17th June 2011
What is the biggest reason so many print businesses have failed? Conclusions
Opinions about the direction of an industry are rather more credible when they come from a mixed group of industry participants. This thread has had contributions from printers, print managers, suppliers and consultants covering a variety of disciplines.
The “2%” who are not leaving their heads in the sand and are forward looking are showing considerable growth. This is possibly because they are more easily able to stand out from this “98%”, the vast majority of printers.
The final summary:
There seems to be a consistent opinion now: printers that won't change from a reactive trade type approach to their customers, or simply can't learn the new skillsets necessary to proactively recommend innovative solutions which improve their clients bottom line - will ultimately fail.
The modern printer needs to provide a range of business solutions to the print buyers business problems. The way in which and the quality in how this is done is where the differentiation lies. Where external help seems to be needed is in making the business process changes to enable them to do that.
(WCA red highlighting)
To quote Carl above, "The ones that fail to adjust will simply not survive."
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- What do the conclusions mean for you? To get back to basics, a printer of any size needs to know : Printers clearly need and want a way forward, but don’t want to be tied into a consultant forever for no value. It may be we are not right for each other, but WCA can help. Contact us for an informal chat about your options and a future for your business that is cost effective.
exactly what they are doing now,
how much it is costing them,
which are the best (most profitable) types of products
What the competition is doing
Very Importantly - what the customer wants now and will want in the future
How to get and use the advantage of knowing all the above
How to prepare for the future
and how to make it happen
Printers don't always have the time to stop and look at these things
That's where an person from outside the company can help.
Running a print business post recession
Monday 18th April 2011
Running a Print business post recession
- Finding remarkable arguments that make you more money in a changed world For many print businesses, current business activity is to cut costs, batten down the hatches and ride out the recession “until things return to normal”. Guess what? Expecting things to return to how they were before the economic downturn is probably unrealistic. Jeff Immelt, CEO of General Electric notes: “ ‘holding on’ until things get back to normal is a mistake for most companies – what we are seeing now is the ‘new normal’ ” This means that a business strategy of doing what you’ve always done and waiting for your market to improve is doomed to failure. Business will not go back to how it was. And if you have to address fundamental shifts in market behaviour, what should you be doing NOW? How things have changed 1. Scepticism and lack of trust – Many customers have information overload from marketing and have noted the collapse of many print based businesses. This has driven some to consider the marketing being used with indifference, frustration, disappointment or outright hostility. - Businesses are not trusted as before. What does this mean? Marketing as performed pre recession is unlikely to appeal, which means that your stated core values and the messages used to promote your business needs to align with changed customer perceptions. Rebuilding trust reputation and confidence may be as important to your recovery as innovation and pricing. Example, AXA is trying to establish trust as a key market differentiator, emphasising the importance of delivering on basic promises. 2. New buyer and seller priorities – Collaboration up and down the value chain will become yet more critical. Looking after your suppliers to the same extent as your customers will become more important as better companies leverage relationships to create “virtual” business empires to create sustainable competitive advantage. Successful marketing strategies will rely on a thorough understanding of the post recession customer and their changed attitudes: you need to find ways to add value to your customer’s offerings at all times. 3. New market structures and increased competitiveness – weaker companies will continue to fail. Stronger companies will continue to take their business. Also, some larger companies have already adopted strategies aimed specifically at killing off weaker smaller competition. Post recession, power will continue to become more and more highly concentrated and competitiveness will get worse not better. You need to differentiate or die. - But you already knew that, right? 4. A consumer shift to thrift – A new type of shopper has emerged in the US and Europe, the thrifty value focussed consumer with reduced “aspirational” luxury spend. This will challenge marketing assumptions like brand loyalty. This will affect the business you are pitching for and the way you need to approach your marketplaces. 5. Barriers to international expansion – Many print based businesses (which includes print managers) emphasise the importance of international growth. However, it is likely that world finance will be depressed for many years creating a deglobalisation pressure. Collaboration and partnership may become the priority for Western companies. So, post recession, if business is not likely to recover to how it was before what does this changed marketplace mean you should be doing right now? You need different and better arguments about value for money which will allow you to differentiate between you and your competitors, and ensure that your sales teams consistently work in a way which leverages those messages. You need to provide better perceived value for money, which isn’t about being cheaper for everything. The aim is to both become the supplier of choice in your market and in turn, build the lifetime value of each customer. The arguments you use to identify approach and service these markets are often referred to as Value Propositions. Good VP’s are business critical: when properly constructed they will force you to concentrate on what your offerings are really worth, and help you to make better choices about where to focus your limited resources. WCA can help. Contact us for remarkable arguments that make you more money and the strategies and tactics to deliver them. Further reading: Chartered Institute of Marketing, The Levitt Group, Marketing Review Vol 10 No 1.
Creating Value Propositions that work
Wednesday 13th April 2011
Creating Value Propositions that work
“Value propositions” are the competitive arguments with which you approach your marketplaces. Effective value propositions should be based on a thorough understanding of your target customer’s real requirements and preferences. However, although business' often think they know which of their features are important, research shows that you really can’t just assume you know which of your product (or services) features are really going to make the most difference to your customers and create superior perceived value.
Good VP’s are business critical: when properly constructed they will force you to concentrate on what your offerings are really worth, and help you to make better choices about where to focus your limited resources.
There can be many factors to lace together in creating this superior perceived value. An understanding of your target customer, your competitive positioning, the resources available and how you can best leverage and present your appropriate key competencies all need to be considered to best advantage. The aim is to both become the supplier of choice in your market and in turn, build the lifetime value of each customer.
So how are you going to become the supplier of choice? How will you make it easier for your customers to do business with you? Can your technology provide the business information you will require now and in the future?
It can be difficult to achieve an overarching perspective from internal staff. Team members will be working in specific roles within the business: it really can be difficult to see the wood for the trees.
This is where experienced external consultancy can be of great value.
Wayne Chopping and Associates (WCA) has specialist value proposition development experience in a variety of B2B blue chip organisations, including the Utilities, distribution and industrial supply markets. WCA can lead or contribute to the project, adding value at all stages, from both a commercial and technology perspective. Contact us to explore further.
Why do system integration projects fail?
Tuesday 1st February 2011
Why do System Integration Projects fail? What can be done about it?
Successful system integration (“SI”) results from a combination of implementing the project activities to a detailed plan, allied to well managed systems engineering. Therefore, if the user requirements, requirements definition, functional analysis, interface definition, life cycle integration, system implementation, risk management, testing and deployment are managed within a formal project framework, the system integration should be delivered on time and within the agreed budget.
But research shows over 70% of SI projects fail, often with business critical as well as financial impact. This doesn't need to be the case.
So why might this be, and what’s the solution?
Ten reasons why SI projects fail (in no particular order)
- Inadequate understanding of the business processes underpinning the systems to be integrated
- Inadequate time and money allocated to business change issues, so the new system doesn’t have the impact expected.
- Technology vendor was economical with the truth concerning what they could deliver, and the customer didn’t spot it
- Business processes abandoned during implementation because no one controlled them
- Requirements changed by the client as the project progressed and the vendor wasn’t managed
- Functionality to be delivered was inadequately specified
- Delivered functionality was not thoroughly tested, so new system failed
- Resources or budget allocated to the project (by the vendor or the customer) pulled after project start
- Unwillingness to spend time detailing business processes, so it isn’t clear how the technology will drive benefit in the business
- Inadequate breadth of skills in processes and technology change management to manage the change.
Our experience suggests that for these projects to be delivered successfully a solid mix of integration skills, technical understanding commercial awareness and project management experience at an appropriate level is required. - but it would be highly unusual to find such a mix of competence in a single individual.
WCA has the team resources and ensures the right blend of these essential competences is available when they are needed, but not charged when they are not. By drawing on these experienced resources we are able to reduce your project delivery costs and maximise the efficiency of deployment. Contact us for more information.
Why do technology projects in print fail?
Monday 31st January 2011
Why do technology projects in print fail? What can be done about it? In today’s competitive marketplace the smart printer knows that better use of technology (MIS, CRM, ERP systems etc) can give better information about business activity, track targeted sales and marketing and drive profitability. After all, in a very competitive market the biggest advantage you have may be your processes… However, the worry is that you know about print and not software, so choosing the right system and managing the business changes to implement better technology systems can be a huge distraction, as well as expensive if the project drags on. - But research shows over 70% of technology projects actually fail, often with business critical as well as significant financial impact. There are reasons for this which crop up again and again, and can be avoided ! Ten reasons why technology projects fail (in no particular order) What you want is the right system delivered at the best price without any nasty surprises along the way. To achieve this you will need help. You wouldn’t expect your car mechanic to specify the and manage the right printing machine for you would you? WCA has in house project management and technology change resources, and a detailed understanding of the print industry. Do you think using us to manage technology would reduce your overall project costs or increase them? By drawing on these in house resources we are able to reduce your project delivery costs and maximise the efficiency of deployment. Contact us for more information.
What marketing areas are less important in 2011?
Tuesday 25th January 2011
We are members of and contributors to an internet group of B2B marketing professionals. The group has prepared a top ten of key trends that B2B marketing professionals think are shaping B2B marketing in 2011. As telling as the areas of increased focus are the areas B2B marketers consider less important in 2011:
What marketing areas are less important in 2011?
- Lead quantity: (see increased focus on lead quality in the top 10 list). What’s the point of huge quantities of leads if the quality isn’t there or you can’t follow them up effectively?
- Marketing cost reduction: (is there much more to squeeze out of marketing without cutting into substance and choking off growth?)
- Marketing outsourcing: (along the same lines as cost reduction). Can you afford to outsource even more without losing core competencies? Don’t you need to learn how to make the most from marketing yourself?
- Push marketing tactics (see focus on pull marketing in the top 10 list). Buyers can get lots of information to help their buying decisions before you even speak to them. They need a compelling reason to interact with you over time, so simple promotions are less likely to work now.
- Marketing asset management (while still important, many marketers have solved this problem with asset and content management tools)
In summary, the trend is toward developing marketing yourselves which fosters a long term relationship with your target customers. Talk to us to learn strategies and tactics appropriate for your business.
What issues are really troubling Printers in 2011?
Monday 17th January 2011
What issues are really troubling Printers in 2011?
Here are the primary concerns raised by people like you. We’ve stated them as they were raised, so apologies of some of the points seem similar
* How do we reduce the dependence on price in every conversation our sales people have?
* How can we create a full account management strategy with the sales team we have?
* Is finding and hiring “better” sales people really the answer?
* Are better sales people actually out there?
* How have print management companies been able to take our business away?
* We are rubbish at sales. What are the basics we should be doing?
* How can we develop a value added sale instead of a price based sale?
* Other than a simple number to hit each month, what else should we set targets for?
* We have no idea of what an “ideal” customer is.
* How can we grow our overall margins?
* How can we turn ourselves into a selling machine?
However expressed, for the vast majority of printers surveyed the issue stated was how to find profitable sales.
The challenge is to develop sales methodologies which add value to the sales process in print and secure long term business, rather than a series of one off sales based on price.
We can help. If you’d like to discuss some ways of managing this business change Contact us.
Top ten B2B marketing trends 2011
Monday 10th January 2011
We are members of and contributors to an internet group of B2B marketing professionals. The group has prepared a top ten of key trends that B2B marketing professionals think are shaping B2B marketing in 2011. Here’s the list.
They won't all be relevent to you at your stage of development, but what if anything does this mean to you?
The top ten
1 - Integration of social media into lead generation programs
2011 will be the year social media evolves from the experimental stage to become an established marketing tactic. Social media will be more tightly integrated into traditional tactics such as email, webcasts, and content assets as another channel to broaden the reach of messages and drive conversions. This also means that more stringent demands for proof of ROI and revenue impact will be placed on social media investment.
2 – Focus on content marketing (content mapped to personas, buyer's journey, vertical, etc)
Content marketing is going mainstream in 2011. If you are not thinking about (and implementing) a strategy that puts your buyers (with their persona and industry driven pain points, preferences, and buying stages) in the center of your marketing efforts - and create compelling content as the currency of your engagement with buyers that influences decisions along the buying process - chances are you will get left behind by more content savvy competitors. With content moving to the center of attention, marketers often struggle to create magnetic content in the right formats and quantities. Sophisticated marketers will apply systematic ways to re-purpose existing content, create bite-sized content for the short attention span executive, and design an efficient content waterfall that accelerates production times, quality, and consistency.
3 - Focus on new business generation & revenue
With many markets making a modest recovery, which is expected to accelerate somewhat in 2011, marketing focus turns away from cost cutting and customer retention and towards growth and new customer wins. Marketing will be expected to show how it impacts new revenue generation. "Last click attribution" alone won’t cut it anymore and will need to make room for more comprehensive ways to show the combined impact of marketing tactics on buyer decisions.
4 - Focus on lead quality
In the past, marketing focus has often been on generating increasing quantities of leads. It was difficult to tell lead quality and impact on sales pipeline, so in the absence of real quality indicators, more was considered better. This flood of leads overwhelmed sales and distracted from the selling part of their jobs. And marketing received the blame for creating poor leads and wasting valuable selling time. Now, with the emergence of marketing automation tools and lead scoring technologies on one side, and tougher requirements for demonstrating program ROI on the other side, look for lead quality to become a critical performance metric in 2011.
5 - Focus on sales enablement
The best leads and nurturing strategy, however, doesn’t help much if sales can't close the deal. Our B2B marketing community agrees that providing sales with not only the right leads, but compelling content, sales tools, and education is going to be more critical as a competitive weapon in 2011. Your competitors are catching up on the latest lead generation and nurturing tactics. And all other things being equal, an educated and motivated sales force and their consultative selling skills will be the ultimate differentiator.
Tom Pisello added a great comment to our B2B Technology Marketing Community, highlighting that a recent survey by IDC found that 24% of B2B buyers found that the sales reps are not prepared for presentations at all, 30% indicate that they are somewhat prepared , and only 29% indicate that they are well prepared. An empowered buyer means that the role of sales will dramatically be impacted, requiring sales enablement and marketing to help redefine and drive a new breed of value selling professional in 2011.
6 - Focus on pull/inbound marketing tactics
This reflects the continued power shift of buyers moving firmly into the driver’s seat, initiating, and controlling the buying process. As traditional interruption style marketing techniques are being blocked and filtered out by buyers, marketers need to shift to inbound tactics using magnetic content that enables buyers to educate themselves about the nature of their problem, available solutions, vendors, and products long before the first personal engagement with a vendor takes place. You want to be the source buyers are flocking to for this high-value content.
7 - Focus on customer retention
Customer retention has provided the much needed revenue stream that enabled many companies to survive the recession as new customer wins dried up. While the economy is slowly improving, many markets are still anemic and it remains critical in 2011 to nurture and grow existing customer relationships.
8 – Focus on marketing intelligence
Marketing automation, online marketing, and CRM systems create tons of data that is revealing buying patterns, customer preferences, and insight into what is working and what is not. Let's put this data into insight and action with better marketing intelligence in 2011.
9 – Focus on marketing automation
Marketing automation is going mainstream in 2011 as companies are taking their online campaigns, lead scoring, and email automation to the next level and integrate social media with traditional tactics. It will be interesting to watch how the decline of email usage by buyers and overall lower conversion rates will impact marketing automation effectiveness going forward.
10 - Focus on branding and awareness
Branding and awareness tactics took a backseat to marketing programs that could demonstrate an immediate and direct impact on revenue. This is slowly changing as budgets are improving and a long term view is taking hold again in 2011, recognizing the importance of a strong brand to influence buyer preference.