Final Presentaion (Page 1)

Transcription

An Alternative Sales Force
Nuvo Newsweekly
AAN Convention
Memphis, Tennessee
May,1999
Table of Contents
1. Ten Things You Won’t Learn At Nuvo
2. Common Characteristics of Many Small-Medium Sized Alternatives
3. The Traditional Methods and Their Results
4. The Nature of a System-The Horror of Rational Thinking
a. A Predictable System
b. The Myth of “Money-Motivated” Employees
c. Why Changing People Nor Changing Compensation Will
Substantially Change Your Results
5. Defining the Absolutes
a. Viewing the “Billable Hour” as interest rate (opportunity cost)
b. What work should be eliminated from an AE’s work week?
c. Viewing Contract Retention as Interest rate
1. Three Year Sales Progression
2. The 52-Week Report and Its Implications
3. Why Contract Clients are More Than Golden
6. The Myth of Special Sections
7. Establishing Your Sales Staff as “Uniquely Preferential”
a. Why “Business as Usual” Can Hurt You -Doing the Daily’s Work
for Them
b. The Importance of Research
c. Client Assignments
e. Requirements of a Nuvo Sales Professional
f. Display Tree Diagram
g. Salary Level Requirements
h. Core Values
8. A Different Approach-The Written Presentation
a. The Five Universes
b. Tracking Effectiveness and Results
9. The Maintenance Program
a. Tracking Effectiveness of Ads-A Few Notes
b. ROI/ROE-Kehoe Training
c. Reassurance Plan
d. Tracking Effectiveness and Results-The Maintenance Chart
10. The Pudding
11. Questions and Answers
(Beware of ideas which work just enough to validate your mistaken belief in them...)
THE BEST OF INDIANAPOLIS ARTS • ENTERTAINMENT • NEWS • OPINION
Ten Things You Won’t Learn At Nuvo
1. How to manage your time each week.
If you aren’t adult enough to understand the difference between productive time and wasted time, then
we apologize for our interviewing error.
2. Ten ways to verbally manipulate your client.
The mark of a manipulator is the inability to present overwhelming evidence of the cost-effectiveness
and value of the media buy. There is no other reason to buy. You are allowed one opportunity to sell
“your way”, and there won’t be a second.
3. How to choose statistics that favor your publication over another.
Your competitors will be waiting in the lobby as you leave. Honesty will always get you further. If your
stats aren’t favorable, you shouldn’t be there in the first place, and I hope we don’t have to thank you
for your bad judgement.
4. How to “motivate yourself” to sell more.
That process was finished years ago. Recognize your limitations and structure your career accordingly.
5. How to find other people, situations, or events to blame for your low sales.
A system creates results uniformally. Low sales for all means you look at the system. Low sales for one
person means you look at the person.
6. How to squeeze more money from your client base.
For each client, there is an appropriate ad size and an appropriate frequency. Beyond that is stealing.
7. How to protect yourselves from editorial, production, or administration.
You all belong to the same team. You just have different tasks to perform. If you feel there is no
uniformity of direction, take it to the publisher alone.
8. How to be better than your colleagues and make more money.
In a learning organization everyone improves at a fairly uniform speed. In a non-learning organization
the individual is paramount and techniques for success are hoarded and compartmentalized, thus
retarding the company. Any tactics that work better than the current ones will be systemized and the
originator will then be worth more to the company.
9. How to “cherry-pick” the best prospects.
You already know who your best prospects are. If they’re still hanging on the tree it’s a system problem.
0. How to cover-up your lack of media knowledge in front of a client.
Again, if you’re here, you shouldn’t be.... Be there twice and you won’t be with us.
Although the AAN editorial and design elements pride themselves on being
forward-thinking and cutting-edge, the sales management structures and
thinking have usually been decidedly traditional and resist change.
EVERY AAN paper (outside of arts, nightclubs, restaurants, etc.) is by nature a secondary buy. For the most part we have no desire to be bigger than the dailies, just better at our
niche. Traditional “media kit” selling (cold-calling, tele-marketing, or otherwise wandering
around aimlessly) works just enough in a commission environment to validate a sales manager’s belief in it. Commission sales also tends to:
1. Push salespeople to make inappropriate sales, such as companies who will get little or no return on
their investment as the alternative paper doesn’t deliver a strong audience for them.
2.Push ads that are oversized for their needs. What research shows us just when a 1/4 page is
appropriate?
3. Pressure advertisers to buy frequency they don’t need.
4. Limit learning and growth as time spent learning is minimized to make sure every available minute is
spent “on the street”.
5. Create competition between salespeople.
6. Limit cross-learning as a salesperson is reluctant to give another whatever knowledge gives them
“the edge”.
7. Allow salespeople the ability to play games with the perk or contest systems (such as putting off a
guaranteed sale to next month if this month’s goal is already reached.
8. Create the “country-club” rep who spends half his/her time playing golf (figuratively) because
his/her income is generated by a run list full of the older, bigger accounts.
9. Create vast differences in the selling styles of each rep, creating vastly different impressions of the
paper with each advertiser they touch.
10. Create “territories” or “Industry Specialists” which are arbitrarily bounded, resulting in lost focus
and revenue.
11. Waste the sales manager’s valuable time by making him/her a babysitter, psychologist, or motivator
(which we believe can’t be done-period).
Unfortunately, almost every AAN paper remains on a commissioned system. When it fails, they fire the
weak sales staff or the manager. Every sales reporting tool is focused on, and reports on, the week. Not the month,
not the industry, not the year, not the three to five-year sales plan. Precious little time is spent designing the ad
which will promise the highest return for the advertiser. Precious little time is EVER spent defining a targeted campaign for an advertiser. A commission structure leaves the rep always looking for the better deal, leading to high
turnover and a lack of continuity and passion for the paper. An alternative paper also tends, therefore, to churn
through their advertisers over time, allowing unhappy ones to walk out the back door while all the attention and
glamour is focused on the one that came in the front. A senior rep (presumably the most qualified one) protects
his/her run list with vigor, which in turn means more hours spent collecting and producing ads as well as phone
time, while the junior rep (presumably the most unqualified one) is working his/her way through the phone book
picking out potential clients he or she can suitably disimpress with their lack of training and knowledge. Under a
salaried structure, the most competent rep is ALWAYS doing the presentations, allowing the junior reps to learn.
Due to the much smaller profit margins at free papers, it is very hard to attract quality reps. Every paper has
one or two, but the rest are a crapshoot. What works at the Post may not work at a free paper due to the lower quality rep we can hire.
What I would HATE to see is another seminar which focuses on such useless topics as “Seven Proven
Ways to Close”, “Eight Ways to Verbally Manipulate Your Prospect”, “Nine Ways to Cover Your Lack of Advertising
Knowledge”, “Ten Ways to Explain Away the Lack of Response to an Ad”, or “Eleven Really Neat Contests Which
Will Waste Your Reps’ Energy and Time”.
Think long-term instead of weekly. Think strategy instead of tactics. Think of advertiser’s needs first instead
of revenue. Think “marketplace” instead of getting the “big one.”
Many (if not most) of these papers are in their “teenage years”, meaning they have reached a level where
they have corralled all the “easy” money and an infusion and talent, strategic thinking and change are required to
move them to the next one.
Common Characteristics of Many Small To Medium-Sized Alternatives
Market:
1. Tend to be strong in editorial-supported industries (music, film,arts, nightclubs)
yet typically only a bit player in growth categories (furniture, auto, real estate), no matter
how many ideas have been tried
2. Little, no, fractured or misplaced positioning messages in local media
3. Little or no real understanding of what constitutes “good” vs. “acceptable” growth in the
market
4. Too much attention placed on the alternative being “No.1” instead of its “rightful and
earned” rank amongst local media.
5. Marginal or horrible retention rates amongst contracted clients
Internal Structure:
1. Tendency towards fear-based management ie: commission and “prove yourself to me first
philosophies”
2. Tendency to solve sales woes by hiring different people to operate the same system that
didn’t work up to standard years ago (33% turnover)
3. Key advertising relationships (the foundation of future prosperity) which haven’t yet been
mutually beneficial are manned by inexperienced just-out-of-college grads or worn-out
traditional media salespeople who don’t seem to find a niche no matter where they are hired.
4. Tendency towards conservative, traditional (although admittedly not prosperous) management
with little or no bent towards ground-breaking ideas (and this inside a group supposedly
“cutting-edge”...)
5. Lack of inclination to consistently use other alternatives and personnel for idea generation
6. Lack of behavioral standards
7. Little or no in-house marketing support
8. Little or no true understanding of what sales work is profitable and which is not
9. Compensation systems tend to put reward on work which is not truly profitable nor earned
10. Little or no opportunity cost analysis
11. Little or no information from management as to profitability, budgeting, analysis, etc. In other
words “I don’t trust you guys enough to give you this information but please trust me when I
tell you you know enough to do the job the way I want it”
12. Incredibly, territorial selling is still around even though the alternative is a primarily urban product
13. Training, if available, simply tends to reinforce the ineffective- “If you can’t close these accounts
we’ll retrain you (we’ll just speak more loudly this time...)
14. Little technological assistance
The Traditional Alternative Sales Methods and What These Methods Result In:
a. Unacceptable retention of contracted clients (7x or more)
b. Unacceptable average frequency of contracted clients
c. Failure to positively differentiate
d. Growth curve relatively flat after five-seven years
e. Presentation effectiveness unacceptable
f. Morale levels unacceptable
g. Compensation not even-handed or appropriate
h. Harmful perception of other departments
i. Problematic client assignation system
j. AE turnover unacceptable
Last year’s AAN research indicated the average paper will have approximately a 33% turnover in your
sales force. 33% of your accounts (yearly!) will be transferred, 33% of your clients will be exposed to your “
instability”, and 33% will be “on the block”, especially if these clients were sold by a “My personality is my
biggest asset with my clients-”my clients like me personally”-type rep.
ALL clients should feel a relationship with the PAPER as the paper brings them the customers and the financial ROI. The relationship with the AE should be a pleasant one, but never a primary one. They should be reassured that they get the same ROI and same service no matter which rep they get. Our new clients get a welcome
letter from the publisher thanking them for their decision and also to remind them that they are, in fact, supporting
and financing the mission of the paper, not just buying ads. A company should never be held hostage by the needs
and whims of the sales force.
There are some very, very good reps out there and a restructured, client-focused, long-term contract and
presentation-focused sales approach will only magnify his/her results.
The facts state that the salespeople who are making the most money are the ones who tend to stay, and
thus they can be brought into the leadership fold as critical elements with more responsibilities. It’s with the reps
who are in their first three years who cause the most turmoil amongst your potential clients and your sales results.
It’s the low pay amongst this group that causes the team to veer from its long-term goals. These two groups need to
be managed and treated differently because of these differences.
...Yet a Tremendous Resistance to Change...
The Nature of a System-Getting Past the Horror of Rational Thinking
1. Not confining nor restrictive, but instead simply a method to produce acceptable
results consistently
2. All papers have a “system” already, and (surprise!) it has produced consistent
results!
3. If a new AE is simply handed the same system that has produced unacceptable
results, then what are the real chances of producing extraordinary results?
4. Every AE, as well, is primarily “systematized”
5. “Great” AEs, then simply are ones who implement a more effective system.
6. These methods, in turn, are mislabeled as “personality traits” rather than tactical methods
7. Surprisingly, most managers fail to take the most effective tactics and incorporate them
into the company system, instead allowing the paper and publisher to become dependent
upon the individual, thus creating a “hostage” situation.
8. Once a system has been created which produces results up to standard the quality and
quantity of the employee will change as well.
a. A Predictable System
1. One Standard Deviation-Nine Points Outside the Lines (9 of 52 or 17%)
2. Two Standard Deviations-One Point Outside The Lines(1.9%)
3. Three Standard Deviations-No Points Outside the Lines (happens only three
times in a thousand)
b. The Myth of “Money-Motivated Employees”
Salespeople are motivated not by money, but by the belief that money will buy things that will bring them
self-esteem, respect and a sense of accomplishment.
People who go into sales do so for the money-no doubt about that. I’ve never tried to convince our sales
team they’re not motivated by money nor do they need more of it. What they spend it on is also of no concern to us.
Our only concern is how their belief and drive towards these goals is manifested during the minutiae of a 40-hour
work week.If these beliefs are that strong, and money is the primary Pavlovian Bell, then their desire to do things
that do not result in almost immediate gratification are also affected tremendously.
EVERYBODY has a comfort level-one at which efforts to improve their situation becomes more and more
limited. When your rent is overdue or your baby doesn’t have food the desire to achieve whatever level these things
won’t happen at is tremendous. This level usually centers around:
1. A comfortable living space
2. Convenient (preferably good-looking) transportation
3. Clothing which mirrors self-image
4. Entertainment when desired
4. Money to waste when desired
For most Americans you can well imagine this level is achieved somewhere between $20,000 to $40,000.
Consciously, we all will certainly say we WANT more, but how many people REALLY stay past closing time to do so?
In other words, the willingness to do more operates on a sliding scale...
A salesperson typically has many accounts unsold, and more work to do than a normal week possibly allows. Therefore, the OPPORTUNITY to make more money is usually omnipresent. A conscious choice is made to limit
these endeavors to a 40-hour work week, and that choice is the employee’s, not the managers. How many of your
“money-motivated” employees have second jobs? Or do they simply want the “highest-paying 40-hour a week job
that I can get without letting it interfere with my personal life”?
Don’t confuse the desire to spend more money with being motivated by it...
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c. Why changing people nor changing compensation will substantially change your results
1. Deming’s “Joe T. Manager” -always placing blame on “controllable variables” (AEs,
timing, admin, etc.)
-Once supported by publisher, this becomes both acceptable AND a self-fulfilling prophecy
2. The best possible system will still be bound by limitations:
-Public perception of your content and intent
- Economic boundaries (recessions, size of market, industry limitations)
-Distribution limitations (retail trade zones)
-Competitors (rates, expertise and perception)
-Supporting publicity
-The “output” of your hiring, training, compensation and management “systems”
3. However, within your current boundaries there is not only room for increased sales but also room
for increased profit from existing sales
4. What a sales manager’s REAL job is:
“To continually strive to maximixe profits by the creation and testing of methodical and timely processes”
Viewing the “Billable Hour” as Interest Rate
a. Commission and Salaried employees both share a common currency-the billable
hour. It doesn’t matter how the AE is paid-what does matter is how the spend the
40-hour work week. If every AE has a yearly target then by definition they have an
hourly target as well.
Example:
An AE with a target of $100,000 is then divided by 2000 hours to get a billable hour of $50 per hour.
If $200,000...then $100 per hour.
If $300,000...then $150 per hour
If $400,000...then $200 per hour
What is critical to a well-managed sales force is a basic understanding of what time is spent by the AE
doing work which, logically, an intern or a $5 per hour employee can do and what time is truly used to bring in
NEW revenue.
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What work should thus be eliminated from an AE’s work week?
a. ANY billing tasks-Several sales managers we’ve talked to indicated their reps
spend at least 2-3 hours per week on collections and billing. Assuming a five- person
sales team, this equates to 520 to 780 hours of time spent collecting money you’ve
already earned, or roughly the equivalent of 1/3rd of a new salesperson. Using the
figures above, this translates to anywhere from $30,000 to $120,000 in revenue lost,
while a collections clerk costs roughly $15,000.
These figures are for one year only...what you may have lost over 5-10 years at an acceptable ret
tention rate is phenomenal.
There is NO argument that “if we didn’t use the reps to collect it wouldn’t get done”. The AAN
average for bed debt is 1.5%-2%. If your collection efforts are failing to meet this number then your sales
methods and prospect selection methods as well as your credit policies that are failing, but not your reps
who are fault...
Furthermore, once your reps begin making the collections calls then the client will begin to avoid
ANY contact with your paper, now and likely in the future as well. Better to set up a “good guy-bad guy”
type of scenario rather than touch with someone who liked your paper and was willing to spend money in
it. Most companies, at one time or another, have money difficulties....they’ll remember the few companies
that were understanding and helpful. Remember, much of your revenue is dependent upon small local
entrepreneurs...if you fail to understand their risk-taking you’ll likely lose their business.
What work should thus be eliminated from an AE’s work week? (continued)
b. Meetings redundant to paperwork or paperwork redundant to meetings.
c. Meetings that don’t result in significant change or knowledge for all. If you are currently meeting
once a week to engender change and improvement then you’re wasting four days a week.
d. Useless and time-consuming conversations with advertisers which are neither focused nor
productive.
e. Any travel associated with copy or proof changes (we had logged an average of 22 man-hours
per week shuttling copy or $4,158 in lost billing hours PER WEEK or $216,216 per year) -this was
solved by the addition of a $56 courier culled from our distribution staff .
f. Expense reports-take last year’s mileage numbers and create an average bonus check per month
or per quarter-thus eliminating time-consuming paperwork each day. If you fear your AE’s won’t drive
as much anymore then you either have a sales staff you can’t trust or a manager who doesn’t know
where they SHOULD be going each week...in either case an indication of bigger problems.
g. Performance reviews-If an employee gets a bad three-month review then the manger should also
get one for letting this employee waste the company’s money for so long...Every employee needs to
know daily if they are on the right track or not.
h. Any work which hurts profit such as excessive proof changes or irrelevant promotions. A streamlined
alternative sales force will always produce positive results for advertisers. “We’ve been able to keep
our costs down even during this growth period. So this year we’re happy to tell you you’ll get 8, 124
more readers at a CPM that was lowest in the city last year already!”
i. Any excessive paperwork that is aimed at proving to the manager the AE is actually work in.
Viewing Contract Retention as Interest Rate
1. In 1995 we has a total of 489 customers who placed ads with us. Of these, only 12 had an existing
contract with us by Jan. 1st of 1996.
2. By 1998 the amount of clients currently on 7x or more contracts has risen to 81.
3. The average contract has gone from 6.4 times to 14.9 times.
4. The average insertion rate in 1995 has an ADDITIONAL 36% discount off the frequent rates, which
has been eliminated.
Not coincidentally, many of the above figures are actually a RESULT of commission selling...
a. Commission salespeople are far more likely to get a signature on ANY contract rather than come
back empty, thus returning a contract of lower possible value or frequency.
b. They are also more likely to accept a insertion NOT in the client’s best interest, thus assuring low
retention.
c. They are more likely to accept insertions from customers who will not receive acceptable ROI,
thus assuring low retention.
d. They are more likely to accept contracts without first assessing a client’s long-term needs, thus
wasting client dollars OR causing negative positioning.
e. They are more likely to play games with incentive and spiff programs.
f. At any rate, you have to question the probability of the short-time rep’s desire to sell a long-term
contract that spans a time period (52 weeks) which the rep is not even sure he’ll be there to reap the
commission.
(We have now a 85% retention rate standard-meaning 85% of all contracted monies are re-signed for the year... This
translates into approximately 36% of yearly budgets booked by Jan 1st...freeing up 3,600 manhours for new business
development for a five person staff)
Why Contract Clients are More Than Golden
When a contract is re-signed, it is usually a validation of your paper’s effectiveness in producing an acceptable level of ROI. It is easier to get a client to take a chance than it is to prove all year long the chance was
worth it.
You can plan growth around the categories of long-term clients. You can use them for referrals and testimonials. They are the backbone of your future runlists yet at some papers they may be treated as “gimmees”. Don’t
make this mistake.
A papers presentation/close ratio is likely 20%. It probably takes 50 times that many contacts to uncover
one who’s willing to really listen to you. (Count on 25 well-worked prospects to get one to listen and you may close
one of five for at least an insertion). Thus, you can count on 249 of 250 contacts to be fruitless in one form or another
before one contract is signed.
In this scenario, then, it’ll take ANOTHER 250 contacts to replace one lost through shoddy maintenance...for
a total of 500 contacts to get back where you started.
Our experience showed us that it takes between 18-24 months for a lost client to be willing to talk again....
A contract client typically produces far more frequency and revenue over the long run and thus is far more
lucrative for the page.r
However, getting a contract to sign and stay takes far more time and handling than most commission reps
want to spend. As long as reps are monitored and rewarded for short-term behavior it is extremely unlikely that
long-term thinking can be implemented ...
Long-term clients have less payment difficulties and contractual monies are certainly easier to predict for
cash-flow and budget purposes.
Revenue-Chasing-The Myth of Special Sections
(Note: This discussion is NOT inclusive of EDITORIAL special sections (editorially-themed issues determined at editorial discretion) but instead is
aimed at the frequent use of “supplements” by the sales managers and staffs as a method for increasing local sales. However, much of the information
regarding wasteful sales activities can certainly be applied to the editorially-driven section as well.)
It’s not entirely surprising that special sections are given such a revered status by publishers and sales managers in the
AAN-after all, they typically account for the lion’s share of the biggest sales weeks every year for every paper. What IS surprising,
however, is the proliferation of these sections within professional organizations which have neither analyzed them for profit NOR
total value. When such a true analysis is done, it will likely be no surprise to the rank-and-file AAN salespeople to find most sections, at most papers, are nothing but a massive spin-in-place exercise which does nothing for the paper except cause the sale units to
veer away from their long-term strategies and competencies.
There are some papers, of course, which do prepare some kind of a preliminary profit/loss analysis for each special issue as
it certainly seems reasonable for management to see the relationship between the revenue and the
myriad of editorial and design expense additions. However, the tendency to prepare the analysis as simply:
-
(Special Section week’s revenue)
(Editorial/Design/Distribution expenses)
____________________________________
= Total Profit
is, at best, short-sighted and at worst, dangerous to the health of an alternative’s long-term sales growth....
There are two critical errors commonly made when assessing special section total value. One is the assumption that a special section is a valuable editorial addition from the reader’s point of view ( not inclusive of the Best Of, Arts Guides, etc. issues as
these tend to not only differentiate the alternative paper from the competition, but they also define it in many cases). The second is
the blind guess that these issues actually improve the yearly sales totals.
From the Editorial Point of View
The belief of “editorial value” stems from several assumptions which have one unifying characteristic-they aren’t based in fact.
(1) Readers need the variety
(2) Readers love this stuff-they’ll flock to our racks!
(3) Readers will keep this around-the shelf life is tremendous
Let’s examine the nature of these assumptions instead of blindly believing them either because they sound good or because we need a
reason to rationalize the sales efforts...
(1) Readers need the variety
Any paper’s readers, according to Media Audit, fall
into two very distinct categories:
Cume Readers-those who pick you up at least once a month,
and
Core Readers-those who tend to pick you up every week
The difference between these two groups is tremendous. One is a “user” and one is a “reader”. The core group will
pick up the alternative because their connection to the editorial
content is high, while the cume group typically feels no such
connection on a weekly level (in defense of the cume group,
they will indeed tend to respond favorably to questions regarding your paper in an in-house survey, but this favoritism does
NOT translate to action on a weekly level on their part).
In any case, the WEEKLY readership tends to be
ONLY approximately 50% of your CUME reader total (maybe
closer to 60% at a few papers). In other words, ANY special section will reach only 50% of your readers! (but chances are the
sales kits are selling the whole cume...). This merits some additional thinking-who exactly are the core readers of the alternative in each city , in what characteristics are they different from
the cume readers, and WHAT benefit exactly are they receiving
from eight or more additional pages of specialized content?
The Media Audit in Indianapolis reported that the weekly readership was actually LESS likely to be interested in several of our
old special sections as the weekly reader was older, MORE educated, had MORE money, was LESS likely to be single, had
ALREADY purchased a majority of their large buys, etc. If you
also factor in the extreme likelihood that these people are fervent
“readers” (of magazines, books, etc.) and thus more likely to be
reading the alternative on a weekly level REGARDLESS of specialized content then management needs to question if their special sections are reaching the targeted audience AT ALL. For
some papers, this certainly means the audit number for certain
activities (buying Honda automobiles or attending rock concerts
or frequent internet activity) is actually LOWER for special
issues than it is in the cume readership.
If the answer is “variety”, fine, but we should also
worry about the editorial health of an alternative whose core
readers find the editorial tedious and in need of specialized content. At any rate, specialized content, if added at all, should be
added only to the extent in which such content is used by, and
is useful to, the reader. In other words, the impact of technology on the alternative reader is tremendous, but it happens
DAILY, if not every hour. Fashion, on the other hand, already
revolves around seasonal usage and descriptions and lends itself
to quarterly reviews. Restaurants/Food as specialized content
may have some validity in a seasonal “guide”, but should NOT
be used as an alternative to putting the equivalent energy and
interest into the weekly cuisine section as the readers who eat
out frequently will be reached in much greater numbers by an
expanded weekly cuisine section than they will by a wasteful
quarterly review.
(2) Readers love this stuff-they’ll flock to our racks!
If the answer is some variety of “increased interest”,
then keep in mind only half the cume readers will even see it,
and the chances of a passer-by seeing a starburst on your cover
(identifying the new special section inside) and saying to himself
“Wow! I’ve never read this paper before but now I will!” is
almost nil. The 18-49 year-old educated readers in each market
who choose NOT to read the alternative do so for a reason-there
has been either a conscious or unconscious conclusion that the
paper does not warrant interest to them, and these reasons likely
have no connection to whether or not there is enough special
section gardening information.
(3) Readers will keep this around-the shelf life is tremendous
If the answer is “increased shelflife”, then think again.
As much as we would hate to admit it, very precious few readers
EVER keep their copies for more than a week, let alone a
month. Half the readers keep it only as long as it takes them to
forget to pick up the next three week’s issues! Although we
might hear “Nuh-uh! I was over at a friend’s house and he still
had last year’s issue lying around” we would be deceiving ourselves if we didn’t see it as merely a case of bad hygiene versus
intense interest in the product.
We sell against the magazines and monthly products
using “we’re here and now weekly” terms; to pretend our readers
are instead trained to analyze content and to prepare a coffeetable scheduling process is simply rationalization. We should
simply face the painful fact-99% of our readers trash our papers
when they’ve read whatever items of interest to them. “Time
spent with the paper” is certainly a valuable measuring tool, but
inaccurate self-deception should be curbed.
If the answer is what we expect, and most papers do
special sections sheerly because it’s an easy answer to “How do
we make more money?”, then now we have the makings of a
more practical analysis as these variable are concrete, provable,
and easily changed.
From a Sales Point of View
There are number of traps many alternative sales staffs fall into with the
sale of special sections including, but not limited to, the following:
1. The special section is used as an incentive (or “relationship-builder”)
for industries not currently found in strength in the weekly issues
2. The special section is sold as an addition to current clients
3. The special section is sold with the implicit message “You should
advertise with us now-we’re writing about your industry”
4. The special section is sold usually less than two months in advance
It may be a bit hard to believe, but any of these traps, on its own,
DECREASES overall local revenue over time.
The Relationship Builder
All AAN papers, of course, share a number of common characteristics.
In the display sales arena, this typically translates to strong music, nightclub and
arts revenues but weaker auto, electronics, technology, fashion and real estate
revenues, among others.
Many papers attempt to build bridges with these recalcitrant industries by creating special sections for the advertisers, hopeful that this strategy will
build long-term contractual relationships. Although there will always be cases
where it seemingly DID work, and AEs and sales managers willing to testify to
this, the truth is the vast majority of these special section “clients” do NOT
return to the paper the other 51 weeks of the year, nor do they become longterm clients at all. (Beware of ideas which work just enough to validate a mistaken belief in them.) If they did work, then there would be more than a precious
few papers which have created a critical mass marketplace in non-traditional categories, AND more cases of these sections growing in size year after year after
year.
In addition, in an industry with 33% sales staff turnover, it would be
even more difficult to create a long-lasting relationship with clients who only see
value in the paper for one or two times a year.
Special Sections Sold as an Addition for the Clients
Selling special section to existing contracted clients is not negative as
a concept, but the method of doing so can be. Clients rarely have an inherent
desire to meet or chat with a salesperson just for the sake of doing so. Any contact with a client should be valuable and productive to the client, not just the
AE; therefore, in most cases, unwarranted contact with the client should be minimized (this should not be confused with ignoring the client).
With this in mind, it’s evident a sales rep will only get a precious few
moments with a client each year. A rep should be assisting the client with creating the appropriate share of the client’s marketing plan or media mix. If there is
an appropriate and beneficial special section which occurs during the client’s
contract length, then it should be included on the contract and agreed to at that
time (a double-sized ad at a reduced rate works well). This way the client is
never surprised by a call from the AE telling him/her about the “exciting new
supplement we’re creating” or “Guess what? We want more money from you
than we agreed upon before!”.
In other words, it’s preferable to sign clients to special sections at the
client’s budget time, not after. After this point, it’s just plain irritating and offensive for the client (and objectionable to the AE) for a salesperson to hammer
away at the “golden geese” which pay their wages most of the year. In addition, a
large foundational base of display revenue will be created for that section
months and months in advance, freeing the AEs to harvest the smaller and more
elusive short frequencies while at the same time minimizing AE burnout and
staff stress.
“It’s a Special Section About Your Industry!”
Almost every AE at every AAN paper has run across the “I’ll buy an ad
if you write a story about me” prospect. These requests are uniformly turned
down as a matter of course due to “our journalistic integrity.” Does it make
much sense, then, to return to this prospect a few months later and ask him to
buy an ad because “this time we ARE writing about your industry.”?
Leaving the potential lost integrity issue aside, what actually happens if
this sale is made is far worse-the client has just had his/her original self-serving
belief validated by an AE whose main objective is to get SOMETHING in writing so he or she can “ring the bell” for the sales “motivational contest.” For the
vast majority of these clients, their buys with that paper will now be limited to
those issues surrounding their industries.
Again, there will be a few papers who will find the above statement
objectionable, as almost every paper can point to one or two clients who were
“introduced” to the paper through the special section and “is now a long-term
client.” The problem is that over 90% WON’T be, but no salesperson is likely to
track and record such an abysmal showing. Memories can be very selective...
Selling the Special Section a Few Months Beforehand
The editorial calendar is set before the year begins so it doesn’t make
much sense to wait until a special section is near before selling it. If one complaint is heard more than any other about the current status of “special section
selling” practiced by many of the AAN papers it is this: There is always a time
crunch.
Most businesses, large or small, work off a budget. The budget, in
turn, is set once a year. The chance of an AE arriving at a prospect’s door at the
right time during the budgeting process, therefore, is about 1 in 365. Sure, an AE
can play the odds, but a much better bet is to find out when the budget is set
and ask for a once a year meeting prior to that time at which the value of entire
paper is sold-including the special sections.
It is a bit arrogant to assume that your special issue will be as exciting
as you think it is to a prospect who’s weighing hundreds of options for his/her
advertising dollar. It is arrogant to assume every business you call on has a “slush
fund” of non-budgeted available cash stashed away just in case such an opportunity as great as your special section came along. In addition, even if the prospect
DOES have some additional money available it is likely (as most clients are small
businessmen) that this money represents profit or out-of-pocket cash, and thus
the likelihood of him/her being wary about the expenditure is even greater than it
would be if the money was part of the yearly budget. He/she is also more likely
to carefully watch what return the expenditure created, which will almost certainly be lower than normal as frequency was ignored in hopes of getting that elusive
signature...
Other Considerations
Even in the face of the above warnings, there will likely still be sales managers who will swear by the effectiveness of these
special sections. The main rationale is simple: weeks which have special sections have higher sales totals than those which don’t.
There is no argument here, but instead a suggestion to cease thinking in such a limited fashion. Increased sales are worthless unless
there is profit; increased sales are fruitless unless there is an acceptable level of client retention; increased sales are useless at a high
level of cannibalization of contracted insertions; increased sales are costly if they result in a high level of AE burnout; and increased
sales are at best a wash if lost opportunity costs outweigh the temporary gains.
Consider the following chart:
1997 Sales
Gift
Guide
Gift
Guide
$45,000.00
BMS (Sold by
BMS (Sold by
Classified so not
Classifiedsonot
change
display)
changeinin
display)
$40,000.00
Best
OfOf
Best
Summer
Guide
Summer Guide
$35,000.00
Guide
ArtsArts
Guide
Average Line
Revenue
$30,000.00
$25,000.00
Series1
$20,000.00
$15,000.00
$10,000.00
Temporary System Change
Trend Line
Trend Line
$5,000.00
49
51
45
47
43
39
41
35
37
33
29
31
25
27
23
19
21
15
17
13
9
11
5
7
3
1
$0.00
Week
This chart is the actual sales curve for an alternative paper. You’ll
notice the high totals on the chart correspond to particular special sections. What is a bit less noticeable is the results of the
sales totals for the 1-3 weeks preceding the special sections. The
Summer Guide, the Arts Guide, the Best Of, and the Gift
Guide all experienced losses below both the average line and the
trend line-a very costly occurrence. Why?
One reason is because all contracts of variable frequencies (4-39 times) were placed by the AE into the special section weeks by pulling them out of the preceding weeks.
Another reason is because the emphasis on selling the
special section caused the sales staff to minimize or eliminate
altogether any emphasis on long-term selling, in effect taking
the rare face-to-face opportunity to sell the value of the section
versus the value of the 52-week paper, an opportunity which likely
will not be repeated for 6-12 months which in turn hurts the
sales efforts for the rest of the year (It’s very important to limit
special section to only those which bring in a more profitable
billing per hour worked than a normal week, otherwise a net
loss can be expected due to the cessation of long-term selling.)
One reason could also be the effect of sales contests in
which the AE is, in fact, rewarded for short-term sales and thinking versus long-term competency.
Something to consider-for example: If a Restaurant
Guide is important to your readers and it brings in an extra
$15,000 in revenue, wouldn’t it be easier to simply divide the 8
pages of editorial content by 52 weeks, add this 1/8th page to
the weekly cuisine section, and then ask your display staff to
come up with a lousy $288 a week to pay for it and call it even?
Then the AEs can show the restaurant prospects the level of
commitment to their industry every week of the year instead of
once or twice (and save a lot of stress and burnout for both staffs
in the process...)
Now consider the 1998 chart and the effects of the elimination of short-term selling and the
implementation of special sections as contractual arrangements versus additional insertions:
1998 Sales
$45,000
Restaurant
Restaurant
$40,000
BMS
BMS
Average
Line
Average Line
$35,000
SummerFun
Fun
Summer
Gift
Guide
Gift
guide
Best Of
Arts
Guide
ArtsGuide
Best Of
Revenue
$30,000
$25,000
$20,000
$15,000
$10,000
Trend Line
Line
$5,000
53
49
51
45
47
41
43
37
39
33
35
29
31
25
27
21
23
17
19
13
15
9
11
7
5
3
1
$0
Week
The difference is dramatic. Although there were still drops
before the special sections the total variance has been halved as
well as the average distance between trend and average lines. The
more interesting result was the creation of an “in-control” system where the sales results were within one standard deviation
83% of the year.
Did the yearly sales suffer as a result of eliminating
emphasis on these “cash cows”? No-by keeping the AEs on track
with long-term selling the average line throughout the year
increased 8%, the trend line was far more predictable, the AEs
work environment was far less stressful, and the client retention
rate increased to 86% (clients with more than a 4x contract who
resigned upon contract expiration). The high sales point (so far)
of the 1999 sales season was the “Nightlife” section, sold entirely
on contract without ever leaving the office, and during convention week to boot. (In addition, the most impressive change was
that the 1997 totals came from 9 AEs, and the 1999 team will
surpass that total while using only 3.5)
What will the future hold? Special sections will
remain entirely at the discretion of the editorial department,
resulting in only a handful (5-6) “special issues” aimed at reader
value versus advertiser (if special content is determined to be
that important to the reader efforts will be made to bring such
content into the weekly package.) All will be sold on contract
only, and while a system will be created to corral the “event and
sale low-frequency ads” by mailer the AEs will be involved only
at a minimum level.
Special sections should, with few exceptions, serve the
A Simple Method for Evaluating Special Section Sales
paper and the readers by maximizing that targeted industry’s ad
content in the OTHER 51 weeks of the year. A restaurant guide
actually hurts the paper if the restaurants ads do not strengthen
the cuisine section year ‘round (the notable exceptions are
Christmas gift guide, summer guides, etc.). Thus, a better evaluation method is needed.
Assuming:
A=runlist total for the issue
B=ROP ads (non-special section ads which would run anyway)
C=contract residuals (the total value of additional ads contracted
to those clients who began running in the paper BECAUSE OF
the special section)
D=Total value of contracts which were RENEWED after the
initial contract (subset of C)
E=Editorial costs
F=Design costs
G=Print costs
Thus, (A-B)+(C+D)-(E+F+G)=Total Value of a special section
(This is a one-year evaluation. For an even truer number, factor
D would span several years...)
real value until six months after the issue.
To be exact, if you divide Total Value by the total
hours spent by staff selling it you can then match that hourly
value against the amount an AE needs to bill hourly over a year’s
time to hit the yearly goals. If a special section only brought the
AE $168 per hour against the $198 he/she needed to bill it
would be fairly clear it wasn’t profitable because of the lost
opportunity cost. There are exceptions-sometimes you have to
present a less profitable section one year as a building process
towards next year, but these should be far and few between and
HEAVILY researched beforehand.
If a sales manager were to assess all last year’s special
sections with this formula, the results could be quite illuminating. Best Of issues, normally seen as the “crown jewel” of special
issue due to its heavy Factor A, actually becomes one of the
LOWEST total values because of its huge dependence on onetime insertions and the massive hours spent selling, designing,
and writing it. (Our highest total value was the simple 8-page
Open For Biz which, although Factor A was low, had the highest
C and D rates by far.)
Does this mean you should cancel your special sections? Of course not-but it should spur the sales managers and
publishers to think a bit more deeply about the chaos a special
section creates and weigh those costs against the primarily limited positive gains.
This is a simple formula. However, you obviously can’t assess
Establishing Your Sales Staff As “Uniquely Preferential”
a. Doing the Daily’s Work For Them
-Any paper has infinitely more control over the local market rather than the national. In most
cases, however, the only personal contact any business owner has with the paper will be the
salesperson. You ARE the paper to them.
-Considering the amount of fruitless contact attempts needed to generate this one precious
meeting, if a paper chooses to to waste it by sending a media kit-equipped rep whose goal is
“to sell them something” then all the paper is doing is reminding the owner how offensive sales
can be. When EVERY sales rep gives the SAME type of message, you can almost be assured one
of two things will happen-the customer will buy the biggest OR the cheapest. Which one are
you?...don’t do the daily’s work for them.
-Every owner (or decision-maker) see dozens, if not more, salespeople. They’re typically pushy,
intrusive, sometimes cheesy but ALWAYS determined to prove why his or her product is the best.
You do have to show why your product is good for them, of course, but if the sales manager
doesn’t take this rare opportunity to show the client how uniquely preferential his/her staff is,
then likely you won’t get a second chance for some time.
-You may remember every bit of conversation you had with this person, but a prospect
remembers you only as one of a group who pitched him. If your message is the same as the
rest (“We’re the best”) , you will be remembered as the same as the rest.
-What if your message was “ I’m sure you’re aware we’re only the third-largest print vehicle in
town, and I’m sure you know how conducive radio is to your product’s message. What I’m NOT
sure you realize is that our paper delivers your XYZ targets at a rate HALF of what any other
medium will charge you, and we can help you retain the same level of reach while putting more
money back into your pocket.”? If delivered by knowledgeable and honest people this message
will be remembered preferentially over the others.
-Most clients wouldn’t be able to tell you which customer in their place of business came from
which medium. To him/her, you ARE the type of customer they’ll get from your paper.
-Some papers allow their staffs to dress casually. I have no doubt they have many difficulties
with prospects seeing their paper as too “out there” or risky. Gee...might as well reinforce those
negative or neutral impressions.....
-Some papers have a “sink or swim” training program, meaning reps are in front of customers
before competency is reached. They may also wonder why their paper has trouble staying
afloat...
-Remember...when you leave a prospect’s office, the guy sitting in the lobby is likely your
competitor. Have you left the kind of impression that will cause a shortening of your prospect’s
meeting with him?
-It is not likely the daily will revamp their entire sales process. They’re too big and too unwieldy.
They have the ability and the resources, but not the mobility.
The Importance of Research
-The primary benefit with Media Audit is your salespeople no longer carry the “burden of proof” statistically or emotionally. With a well-crafted and targeted presentation (breaking down the cume into client-specific categories and presenting your beat-all CPMs) the failure to buy becomes no longer a “fault” of the rep but either a
illogical decision or a 100% emotional one. The other great advantage is obvious-this is a third-party company with
no ties to you that will not stand up to scrutinization.
-It’s imperative a rep understands the nature of an unwillingness to buy-a statistical argument will not
break down an emotional unwillingness nor will a “personality”-driven pitch break down a rational decision not to
buy. There will be exceptions, but few.
-If you tell media buyers and company owners your paper is “cutting-edge” and that “no one can match
your demos”, but that there is simply no available research to prove it other than your own in-house surveys, then
you have probably done no more than convince them their decision NOT to buy you was well-founded.
Client Assignment
-The assignment of accounts, then, becomes a crucial component of good sales management. A large,
multi-million dollar account with a seasoned, by-the-numbers Marketing Director needs the best statistical mind you
have in your stable assigned to the account. A small business owner who is beginning the plunge into the advertising world may need someone who is a little bit better at offering emotional support over the next year. In terms of
maintenance of an account, it’s probably best not to assign a “chatty Cathy” rep to someone who views the calls as
intrusive and time-wasting.
-A note: there will be exceptions to these generalities, and certainly objections from your reps, but never
enough to warrant anything but client-focused assignments rather than territorial and/or AE-focused ones. Once a
sales manager gets onto the business of assigning accounts due to “She has an account right next door”, “He doesn’t have any music accounts like the others do”, “She just lost a client so she has some room” or any other illogical
reason, then he/she had begun a spiral into non client-focused behaviors.
-ANY management system I’ve seen has its faults-the trick is to make sure the system you choose
has certain key elements understood:
1. ALL accounts remain property of the paper, not the AE.
2. NO contracts from ANY advertiser could have been secured without the significant
help of the paper’s reputation in the marketplace-specifically its ability to deliver an
advertisers chosen target as well as your paper’s distribution, its editorial, and its
marketing efforts. This is NOT the result of just one individual’s sales efforts. There is
a huge difference between patting the salesperson on the back versus giving him/her
the impression “it wouldn’t have happened without you”, which leads to too much
individualism.
3. The PAPER (read: sales management and publisher) maintains frequent contact with
the clients, thus assuring a valuable connection should an AE leave or the account
transferred.
4. Sales management should always be choosing the targets. In a commission atmosphere,
it becomes increasingly difficult to discern which advertisers will do well with your paper
and which advertisers are in your paper simply because an AE “gave him a deal”, “stayed
on top of him”, or otherwise manipulated him/her into a contract. You will lose these accounts
in time and either have tremendous difficulty getting them back if at all. Deal-making, if used
at all, should be a management strategy, not an AE’s tool to “snag” an unwilling customer. In
other words, the manager already knows what accounts are on his “Top Two Hundred” list.
Your management system should be the quickest and most professional way of reaching this
list, and most papers’ “protected territory” systems actually prohibit this.
5. Every AE has different talents. If you have three who are equally capable of putting
together the BEST presentation, then great-you’re extremely lucky. If you don’t (and most
don’t as there are always a few who have been there longer, know more, etc ) then you need
to ask yourself before EVERY presentation “If I absolutely NEEDED to get this contract, who
would I send?” If the answer is not “Everybody I have is equally competent”, then you have
a system that will deliver sub-optimum results REGULARLY. The BEST presenter should do
ALL the key presentations, period. Otherwise you’re failing as a manager to deliver the best
results to the other thirty people in your company who depend on you to bring in the money.
There should be a “minimum standard of competency” achieved before anyone gets in front
of a client. Otherwise, you actually do more harm than good. Unfortunately, not many
commission-based employees would be willing to wait too long to get to this level at their cur
rent pay, nor are there many managers willing to put in that much work and time. The fact
remains, however, that most managers might as well admit to their publishers “I inherited a
mediocre system, we work a mediocre system, and my efforts are limited to tinkering with a
mediocre system instead of creating a new one”.
6. The salesperson who serves the paper best deserves to present to the bigger accounts. If
you send your newest and LEAST qualified person into the larger accounts simply because
that business falls into an arbitrarily-assigned territory and you as a manger hold onto an
outdated notion that that is “fair”, then you need to take a second look at your system.
However, the paradox is that your most-qualified person tends to be the one whose been
there longest and thus has the most accounts to maintain already. Thus, less time to present.
But think-you have a system where de facto the least qualified people do the majority of
presentations! In other words, how much time does your best presenter spend on non
revenue-generating activities? What does that cost you?
7. “Tinkering” with your current system is likely NOT the answer. My belief is that using
territories is probably the WORST way to manage a staff, the least productive, the least
efficient, and certainly it causes turf wars and favoritism issues as well. Assume you had
no employees at all and were building a staff from scratch-would you choose territories or
look at alternatives? Saving a few expense dollars by condensing driving ranges comes
nowhere near your loss in lost opportunity costs.
8. The best system for your paper may NOT be one your current staff would all agree to. If you
are willing to change it, are you willing to lose an employee or two? (NUVO had to lose nine
of ten, but we quickly found we really only needed four and those four were very happy to get
$10,000 raises to do the work ten used to do...
9. Design your system from the client backward, not the AE forward.
10. Sometimes our jobs get tough. Sometimes we lose people we liked. But the sales world
isn’t standing still for our papers and thus can’t for the AEs either. Everyone needs to change
and it isn’t always pleasant, but the rest of the company counts on us to make these decisions
in favor of the company, not an individual or two’s “need” to make a few more bucks by
manipulating holes in your current system.
Requirements of a Nuvo Sales Professional
Overview:
-We believe the best sales executive is one that is self-managed: that is, he or she is capable of
creating the desired results without the unnecessary involvement of management. With a small,
salaried staff, it is critical that all execs are sharp, savvy and creative.
-When you are hired to be a part of this staff, congratulate yourself-in the last three years there
have been only a relative few we felt were good enough to represent Nuvo the way Nuvo
needs to be represented. As good as you are at the time of hiring, you will in short order be a
contributing member of the most knowledgeable print sales unit in Indianapolis.
-With such a small staff, it is equally critical your hours are spent productively. You will find yourself
with an enormous amount of free time (unusual in most sales environments), but we expect you to use
that time wisely and to further the objectives of the team.
-We pay our executives well. In return, we expect a desire for excellence and for results.
-Towards this end, we have developed a list of expectations for the sales executive. It is by no means
an exhaustive list, but we feel the overall characteristics of this list will enable you to make the
correct decisions about activities that are not on the list.
Expectations
1. We expect you to turn in all reports, assignments or projects on time. If you cannot, we expect you to notify your
manager well in advance.
-What happened last week or yesterday does not excuse today’s failure to notify your manager.
-Vacations, days off, or anything but the most serious of illnesses does not preclude the successful
handling of your clients or your obligations to your manager or other Nuvo staff members.
-Every assigned task is not written or checked up upon. If assigned to you, we expect it done soon. Sales
managers do not function as day-timers, calendars, or alarm bells at Nuvo. People who need these things
cannot measure up to their teammates for long.
-Your ability to manuevre without management interference is directly tied to your ability to function up to
standard without it.
2. Our ability to retain clients and deliver a return on their investment in us is dependent on the amount of time you
pay attention to it. No clients are to be treated as “gimmees” unless they are of a sufficient size or have demonstrated an ability to do it themselves.
-Weekly maintenance calls are NOT optional. Weekly does not mean monthly or bimonthly, it means
weekly. Your client thinks about his revenue daily, how often do you?
-Our philosophy of not calling the client unless you have something to give is NOT a novelty, it is an
absolute. If you can’t find an article or item of interest to your clients on a weekly basis, then you aren’t
spending your free time wisely. If there is a question that the week is too busy to do so, then expect your
manager will spend a week with you to help you find that elusive hour. If an hour can’t be found, then you
now work a 41-hour week.
-If you are helping a client make money, then he/she will be more than happy to offer your name to some
one who can use the same type of help. If your client list generates no referrals, then either your clients
aren’t happy or your manager won’t be.
-Every client (except ad-savers or inserters) deserves a full presentation. We’ll never know what happens
behind our backs, and incredibly, sometimes no one calls us to ask our opinion before they cancel our
paper. Inserters and ad-savers can become the next contract client, and we expect you are always doing
your best to convert them to contract status when appropriate for them.
3. We have to be the experts in print advertising. We also have to be the most knowledgeable broadcast and new
media experts within the print community. If this knowledge remains only in the presentation phase we miss the
boat entirely. We will always be only an option-a small option for most-in a sea of advertising opportunities.
Failure to understand our niche and the roles, strengths and weaknesses amongst the rest will cement yourself a
reputation as a one-tune bandleader.-Every client should have a campaign. If you do not know what a campaign is,
then find out.
-Every client should have the best possible design. We have no more excuses. Unless you are positive an
ad is fantastic and can undergo the strictest scrutiny we expect you to continue working the design until
you reach the point. If you don’t know what good design is, find out.
-Our philosophical selling tools (Media Audit, ROI, Immediate, TOMA, design) are not optional. If you are
not equally as strong with all of them, find out how to be.
4. You are a member of an elite team, and you are also a member of a larger team here at Nuvo.
-You are expected to act with courtesy and integrity towards all.
-You are expected to operate without rudeness regardless of other people or events.
-Other team members, what clients they get, what salary they receive, what hours they work should be of
little or no concern to you. We have structured it here so as to allow you the freedom to exercise your
initiative to further your goals at a pace acceptable to both you and Nuvo. We pride ourselves on our
fairness in this regard.
-Other non-sales teams at Nuvo are also moving forward, however, they may do so at pace uncomfortable
to you. We are in a rapidly-changing environment at a rapidly-changing paper, and attempts to keep the
status quo will be looked upon with disfavor. Change got these sales team where they are today-all three
respected by their AAN colleagues , beating and/or challenging records, and certainly performing better
than any team in Nuvo history. Change works in your favor.
Salary Level Requirements-Display
(all levels by definition include mastery of all previous level requirements)
L7 Requirements
Mastery of:
-Nuvo mission and values
-Nuvo system map
-Nuvo media profile demographics
-rate card and special section specs
-layout and ad size specs
customer service skills
-Media Audit and ROI theory
-deadline maintenance
-WAR/Maintenance sheet upkeep
-Filemaker Pro/Word skills
-Nuvo editorial mission
-Nuvo history
Familiarity with:
-basic business principles
-basic selling skills
-Excel Skills
-collections procedures
-Deming/systems theory
Able to:
-maintain small run lists up to standard consistently
-meet Nuvo proofing deadlines consistently
-meets dept. deadlines consistently
-handle AE account list when necessary
-maintain account list of $0-$150,000
-Has 60/30/10 split between clients, advertisers and new business
-Maintains a 75% customer retention rate
Personal/Behavioral:
-understands fluctuating nature of work and responds easily to change
-has a thirst for knowledge/fills free time with learning
-accepts and responds to suggestions/criticisms
-volunteers for at least two events yearly
-maintains professional composure at all times
-treats other staff members with respect and courtesy
-searches for and responds to opportunities to increase value of Nuvo to community and
his/her position to Nuvo
-adheres to all company standards and policies without exception
L8 Requirements
Mastery of:
(see level 4)
-basic Deming/systems theory
-has run list of $150,000-$299,999
Familiarity with:
-1st level selling skills
-able to resell or upsell current accounts
-can formulate ROI specs for clients and staff
-has a working knowledge of Media Audit and can pull appropriate reports as needed
-can assist senior AE’s with presentation research, client and industry research
-contributes regularly to staff meetings
-basic ad design concepts
-basic ad copy concepts
-Internet search methods
Personal/Behavioral:
takes initiative towards, and immerses self in learning:
-industry trends
-client information
-business trends
-Media Audit
-has a self-managed outlook towards work and problem-solving
-pushes capabilities and skills constantly
-separates work and personal life on a professional level
-maintains a positive and optimistic outlook through stressful times
L9 Requirements
Mastery of:
-Ability to generate Media Audit reports without assistance
-has good working knowledge of ad design, ad copy and campaign planning
-has above standard client retention rate
-does not lose contracted clients except to natural causes (bankruptcy, new ownership, bad review, etc.)
-is a regular and frequent contributor to dept. and staff meetings
-is actively involved in Nuvo activities and action teams
-begins to exhibit leadership skills
-able to train new employees on any basic skills
-has run list of $300, 000
Familiarity with:
-advanced selling and maintenance skills
-becomes more valuable to client-becoming a media specialist rather than just a Nuvo expert
-is able to help his/her client’s success by offering help outside ad placement
-offers client additional information and value on a weekly level
-can plan and help execute basic client promotions-aids promotion manager
L10 Requirements
Mastery Of:
-Upselling contract clients to a longer-term or increased value contract
-Excellent client retention rate
-Can do ROI and ROE presentations easily and fluently
-Has ability to create presentations with little or no managerial assistance
-Comfortable and fluent in ad design and copy methods and strategies
-Client maintenance record is excellent-calls and services are done weekly on
-a regular basis with little or no omissions
-has run list of over $336,000
Personal/Behavioral
Has an ability to manage large client load AND:
-schedules time weekly to learn new information that increases Nuvo’s expertise
-finds time to assist others junior team members with completing their tasks
-is a recognized leader during team meetings and behaves accordingly
-keeps his/her focus on the “big picture” and is willing to sacrifice personal gain
for team welfare
-first to volunteer for additional assignments when able
-belongs to one or more company Action Teams
-finds additional time to assist company outside the required two days
-begins to think as a manager-begins to have the ability to see or find two sides to every issue
-is uniformally positive in open discussions-always focuses on “How can we succeed?” instead
of “Why we will fail.”
-Never utters the words “That’s not my job.”
-is active in more or more sales and/or civic organizations outside Nuvo
L11 Requirements
Mastery of::
-Advanced selling and maintenance skills
-Is completely self-managed; meetings with sales manager don’t focus primarily on weekly activities but
long-term strategies and value instead
-Begins to develop a “towering competency” in one or more additional media
-Is competent and knowledgeable with the Internet and its applications to Nuvo
-Able to (and does) lead major sales/marketing projects
-Able to teach competently all L4-L7 skills
-Understands and is able to teach all basic business concepts including the ability to relate such concepts
to clients when needed
-Has run list over $400,000
Personal/Behavioral
Has developed a positive reputation within colleague circles as a competent and reputable media source of information.
Core Values and Beliefs
Marketing Department
We value Integrity
We will always interact with our customers, community and fellow employees with honesty,
sincerity, respect and a sense of compassion.
We value Professionalism and Commitment
We will always strive to act in what we believe to be the best interests of the company, and we
will never allow personal difficulties to cloud our judgement or the performance of our duties.
We value Knowledge
We believe learning is the key to understanding our customer’s needs and those of our fellow
employees. We will always strive to incorporate all available resources, facts and cutting-edge
philosophies in order to meet those needs. We are committed to always understand our client’s
needs by being knowledgeable about their industries including their products, their competition,
their opportunities and threats.
We value Creativity
We value creativity. We will always strive to creatively meet or exceed our client’s expectations
concerning quality, strategic thinking, advertising solutions, responsiveness and costs. We will
never represent our clients with inadequate, ineffective, or tired solutions.
We value Passion
We value passion. We believe our company to be one which should attract only people of passion
and dedication to our mission. We believe passion will be rewarded with personal development,
self-fulfillment, enthusiasm and enjoyment.
five universes
Universe One-Highest Closing ratio
-Past or present advertiser
-Has no difficulties with
content of an alternative (advertising or editorial)
-Understands value of advertising
-Presents appropriate target match
-Nightclubs, restaurants, bars, health clubs, etc.
Universe Two-Average Closing (Smallest Pool)
-Industry advertises frequently in
the alternatives (or alternative media)
although not yet in your paper
-Consumer electronics, some furniture and auto, home-living
Universe Three-Low Closing Rate (But you don’t need many...)
-Advertises frequently in mainstream media
but not yet in any alternative media
-Banks, utilities, major retailers, mall tenants, major real estate
Universe Four -(Largest pool but tough to sign and retain)
-Does not advertise in any media
-Doesn’t not understand value of advertising
-Service companies, local repair/maintenance, vintage clothing,etc.
Universe Five
-Advertising Agencies
Tracking Effectiveness and Results
AFTER PRESENTATIONS ARE DELIVERED, EACH UNIVERSE HAS A SPECIFIC SET OF FOLLOWUP PROCEDURES DESIGNATED TO POSITION OUR PAPER FOR THE BUY ...
UNIVERSE I: PAST / CURRENT clients
-Follow-up is TRADITIONAL; presentation are face-to-face
because of our established relationship and the follow-up activity
is determined with each closing.
UNIVERSE II: CURRENTLY ADVERTISE WITH ALTERNATIVES; BUT NOT IN NUVO
Follow-up:
1. Deliver presentations
2. Mail letter explaining intentions while focusing on activity in other AAN’S
3. Call for appointment. If not able to schedule appointment or speak with contact ...
4. Fax “VALUE SHEET” (See Example)
5. Call to follow-up with specific goal in mind: appointment; budget date; next logical
UNIVERSE III: CURRENTLY ADVERTISE IN MARKET (print/radio); BUT NOT IN NUVO
Follow - up:
1. Deliver presentations
2. Fax “VALUE SHEET”
3. Call for appointment. If not able to schedule appointment or speak with contact ...
4. Mail “MEDIA ANALYSIS SHEET” (See Example)
5. Call to follow-up with specific goal in mind: appointment; budget date; next logical
step; etc. step; etc.
VALUE SHEET
SECURE THE FACTS ... INDIANAPOLIS MARKET STATISTICS*:
- # of Indianapolis residents planning to buy a home security system within the next year
... 38,500
- # of NUVO Newsweekly readers planning to buy a home security systems within the
next year ... 3,400
- Average cost of installation ... $99.00
- Average cost of monthly monitoring ... $24.99 (yearly cost ... $299.88)
NUVO’S WORTH
-3,400 NUVO readers are planning to purchase a HOME SECURITY system in the next year.
-The average installation cost is $99.00 with a monthly monitoring fee of $24.99.
-The average customer’s first year expenses are $398.88.
-Therefore, NUVO Newsweekly readers are planning on spending $1,356,192 on their home security
needs.
* The Media Audit, FALL 1998
With the right campaign in NUVO Newsweekly, CM ALARM Co.will be able to capitalize on this market. By
simply reaching 3% of our readers who are planning on purchasing a HOME SECURITY SYSTEM with a consistent
message, there will be over $40,600 to be made this year alone! (102 readers X $398.88 = $40,685.76)
NUVO Newsweekly will help you reach a percentage of your target market. We realize we will not be the
primary advertising vehicle; however, as a supplemental buy, NUVO Newsweekly will put you in touch with your
target market.
I will contact you next week to get your thoughts on the information that was delivered to your attention.
( INTENTIONS ARE TO ESTABLISH WHAT OUR WEEKLY READERS ARE WORTH TO THEIR SPECIFIC INDUSTRY. )
MEDIA ANALYSIS SHEET
Knowing NUVO Newsweekly is an effective source for reaching this market of UPSCALE HOME OWNERS, how can HotSpring Spas of Indianapolis tap into this market?
Current INDIANAPOLIS MONTHLY ad cost:
• 1/2 page 4- color -$2,340
Proposed INDIANAPOLIS MONTHLY ad cost:
• 1/2 page spot- color - $1750
(change current ad - process color / 1/2 page)
Add NUVO Newsweekly:
• 2 - 1/8 page ads (alternate weeks) - $540
CURRENT EXPENSE:
$2,340 reaching 150,100 home owners.
PROPOSED EXPENSE:
$2,290 reaching 150,100 home owners from the Indianapolis Monthly AND an
ADDITIONAL 129,700 home owners by including NUVO Newsweekly twice a month!
SAVE $50.00 per MONTH!
PROPOSAL:
26X agreement:
• alternate every other week.
• Utilize the Indianapolis MONTHLY for image and
brand awareness.
• Incorporate NUVO Newsweekly for promoting specific products and prices that
will appeal to our current target audience.
Investment::
• 270.30 per week .. includes 15% discount for CAMERA READY ART WORK.
( INTENTIONS ARE TO INTELLIGENTLY POSITION NUVO NEWSWEEKLY AS A SUPPLEMENTAL BUY TO
THEIR CURRENT ADVERTISING. THIS MAY POSSIBLY GET THE BUYER TO CHANGE THE WAY THEY’VE BEEN ATTEMPTING TO REACH THEIR AUDIENCE FOR YEARS WITHOUT QUESTIONING THEIR INTELLIGENCE. )
The Maintenance Program
a. ROI/ROE - Kehoe Training
Step 1 of Maintenance Program:
Return on Investment / Return on Expectations
Because most businesses are not in the position to just throw money around; and they base their budget on
last year’s sales or as a percentage of quarterly sales, it is our responsibility to inform them that we will be accountable for assisting them reach their goals.
Step One: Establish specific expectations before an agreement is reached ...
NAME AWARENESS: New business owner may just feel the need to introduce his establishment to the community;
so probe for true intentions, and recommend a plan that will meet the expectations. For example, a Coffee House
calls in requesting rate information. First of all, break from the mold, don’t just start in with your rates and the fact
that your paper rocks. Probe for their intentions. If the business owner needs to create some name awareness;
but does not have a large budget ... instead of selling him the smallest, cheapest ad in the paper; find out some of
his future intentions with the business and recommend a a plan that will grow with him. It may be beginning with a
series of ads on the BACKPAGE of the paper to create the name recognition with your core readers and after a
month or so, as the Coffee House begins to introduce local musicians playing an “unplugged set” on Thursday
evening, then pull him into the book with an ad in your sound section that will generate traffic for specific performances. This way the ROP ad will attract not only the core readers; but it will also APPEAL to an audience who is
attracted to the music industry! Grow your relationship as the client is growing their business.
TRAFFIC: Traditionally, most business owners will admit to not tracking business or state that it is just too difficult.
In this case, attempt to educate to client on specific tracking methods. For example, a local restaurant who is advertising with your paper is unsure to the response they are receiving from his ads. You’ve already informed him that
your readers are not the coupon clipping type due to their lifestyle and household income level; therefore, sit down
with you client and listen for his specific expectations. You may learn that overall the restaurant is doing quite well;
but the owner was just expressing frustration because Thursday nights are not performing well. GREAT! Now
make some adjustment to his ad and Thursday night menu. We know the readers do not clip coupons; however,
from Media Audit, we know our readers are dining out. So first of all reinforce the value of the reader with the
Media Audit Figures (or are supporting research; agree that this is the correct vehicle) and then APPEAL to these
frequent diners by offering up a SPECIFIC Thursday night entree ... the chef will then be able to communicate to the
owner whether or not he is preparing more of that SPECIFIC dish each Thursday night. The owner will then be able
to measure the amount of TRAFFIC being generated from this campaign.
SALES: The bottom line. “I want to sell more.” more. more. more. We’ve all heard it. So, now make it work for
you and your paper. “ I want to sell more!” More of what? Spas? Hot Tubs? Patio Furniture? Pools? Spa accessories? Spa Maintenance Packages? Get Specific! And keep leading the business owner to a specific need. Once
this need is discover, re-evaluate the average reader and come to the conclusion that the paper can deliver an audience that can meet this need. If the paper can not meet this SPECIFIC need, let the business owner know now!
For example, “I don’t feel comfortable accepting a campaign promoting the after market SPA MAINTENANCE
PACKAGE because as we determined, our paper will reach your growth market. The first time buyers. The majority
of our readers are most likely planning to add a HOT TUB to their deck. Your after market crowd will be better
served by utilizing the daily simply because they have already purchased the majority of their major ticket items.”
This honesty will position your paper for future insertions promoting anniversary sales, tent sales, factory clearance
sales, etc. Your paper is now positioned as the market for NEW growth.
ROI TRACKING FORM FROM PRESENTATIONS:
(This form is included in 99% of our presentations)
WHAT RETURN CAN THE SPA SHOPPE ACQUIRE FROM THIS INVESTMENT?
Return On Investment
• The average spa sale is _$2,500__.
• _$900_ of this sale is gross profit.
• Each customer also purchases chemicals and accessories at the cost
of _$250__.
• _$95__ of this sale is profit.
• Therefore, the total sale is __$2,750__ with a profit of __$995_.
• The cost of an ad is $453 / week, for a total of $906 / month.
• Take the ... Total Monthly Ad Cost / Average Sale Profit = _ .91 _.
• The SPA SHOPPE will only need _ LESS THAN 1 _ sales per month to pay for the ads
Reassurance Plan
Step 2 of Maintenance Program:
REASSURANCE PLAN
Clients need to know they’ve made the right decision. Do not just call a client to say you called a client. “No news is
good news” and in this case, it could not be more true. Whenever contacting a client or prospective client, have a
reason for calling. And no, “you asked me to contact you again in June” is not a reason. Because of the
Alternative papers position in most markets, we need to come across as respectable and professional. More than
likely we need to gain the respect of local business owners before asking for a portion of their ad budget.
COMPETITION UPDATE - - Constantly compare your publication vs. other media. Monitor the market for NEW media or FORMAT CHANGES of local radio. Inform your client of the NEW media or FORMAT CHANGES before the competing reps have the opportunity. Fax them articles regarding the changes or call them with a new media option that
will assist them in reaching more of their target audience.
INDUSTRY SUPPORT - - Reading is fundamental. Whenever coming across an article or information regarding an
industry (local or national) that is relative to a particular client ... clip the article and drop it in the mail. It simply
states that you are looking out for their better interests. It also supports your mailing efforts by positioning your mail
correspondence as timely and informative.
PROMOTIONAL SUPPORT - - Develop cross promotional opportunities for current clients. Constantly analyze your
list of current advertisers and search for specific industries that are naturally related. For example, if a local night
club will be hosting a Summer of ‘99 bash every Friday night, contact a local record store who advertises and work
them into the mix.The night club could include the record store’s logo on the print advertising and mention the record
store on their radio spots promoting the Summer of ‘99 bash. In exchange the record store reaches an ADDITIONAL
MARKET for the donation of gift certificates, CD’s and posters for each of the Friday night promotions. Both clients
win!
TARGET AUDIENCE SUPPORT - - Proactively find SPECIFIC articles/sponsorships from your paper that reach a SPECIFIC client’s target market. For example, develop a list of regional music vendors and each month mail them a
package highlighting your paper’s music coverage from each month. ( We also include a monthly list of INDIANA
CONCERTS to reinforce the musicians / groups who are playing locally . This has prompted additional buys for specific CD’S for specific local groups.) By proactively reinforcing the papers dedication to attracting the clients target
market,we are assuring them that our paper is the correct choice!
Both the R.O.I. and REASSURANCE PLAN will assist the paper in developing a solid foundation of advertisers. This
foundation can not be built by bringing in accounts and having 50% of them leave after they complete their agreement. The staff needs to focus on retaining by maintaining. The real work begins after the sale.
Tracking Effectiveneness of Ads
Monitoring results with advertisers is tough, time-consuming and sometimes fruitless. Unfortunately, results are the ONLY thing your paper is ultimately rated upon by the client. You can ad-speak the client to death, but if
you don’t “ring the registers” you’ll pay for it eventually.
Coupons are usually worthless unless the value is extremely high. Restaurants are notorious for demanding results for low costs. But an “image ad” of their signature dish DOES, in fact, ring the registers. It’s just that only
the CHEF would see the results as he/she knows intuitively whether or not they’re making more Baked Alaskas this
week then normal. It’s THIS type of understanding that an AE needs to create with a business owner. Every client is
different. A care repair shop, recently bought, might be dealing with a bad reputation to overcome, a bike shop may
have a terrible location in a strip mall whose patrons are 62% over 55 years of age, a plumber might be demanding
revenue from your paper’s ads even though the truth is he’s rarely at that number and he’s in a time-sensitive business, so callers hang up and call one of the other 50 plumbers in the book.
You can’t “fix” these problems by placing ads in your paper. But unless your AE asks those questions or
know that business, you, unfortunately, will pay the price in the long run. People talk. Bad experiences will multiply.
Your reputation as a good paper to advertise in gets diminished with each client you lose. Upon AE’s, primarily, falls
the burden of knowing if you can really help them or not.
In addition, you don’t deliver your full cume number every week, you deliver probably half. Take away the
readers who just read “News of the Weird”, take away the readers who just use Personals, take away those only interested in politics, take away those who just want to know where “Titanic” is playing, and then take away those
who somehow just missed the ad. THEN you have the people that ad is talking to-a very small % of your readers.
NOW what does that ad say? If you’re selling “home remodeling” in winter, how many people do you REALLY think
you’re talking to? Three?
Suffice to say there is no “program” you can teach your reps to overcome the need of the advertisers to
get response. One way or another, image or not, you actually DO create calls. It’s just a question of whether or not
the agreed-upon time limit is reasonable, and if you have an internal understanding of the nature of the “campaign”
versus a desire to build the biggest “ad-taking” team your paper’s ever had. One works in the long run at a much
better rate of return (read” high retention=less new business prospecting), and one leaves a trail of businesses
who’ve left you for one reason or another and who need an act of God to return to you. Most alternatives deliver a
niche product on a frequency level. If the ad isn’t aimed at that niche, or if the ad isn’t backed by frequency, or welldesigned, or well-placed, or well-managed by an interested and intelligent AE who knows WHEN the account is in
trouble or when the ad needs to be changed, then you’ve got a recipe for problems.
The true measure of your paper’s ability to deliver results will always be tied to your retention rate.
Absolutely. Your ability to RE-sell clients, not sell them the first time. When we set out to change our sales system,
we counted 484 advertisers in 1996, but only 20 who had contracts of any length. That means (subtracting one-time
sales, etc.) over 225 business came to us with high hopes of increased sales and somehow we failed them. THAT’S
what hurt us, not the client’s inability to understand image advertising.
It’s funny. We usually see ourselves as different from our clients. We know more about advertising, we
know all the nifty ad-speak buzzwords. But how many of us would hire a plumber again after they talked us into a repair job that costs $900 but didn’t fix the problem?....Doubt we’d feel better after an explanation regarding basement
foundation architecture....WE need to change to fix our ad problems. The clients will always remain the same-they
rarely get any more understanding.
Notes on an
Alternative Sales force
Nuvo Newsweekly
AAN Convention
Memphis, Tennessee
May, 1999

Final Presentaion (Page 1)

Transcription

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