Synergy and momentum matter.

Just as there is arithmetic to recovering in the investment market, there is a logic and arithmetic involved in business recovery. Specifically, it’s often easier to lose ground than it is to win it back.

In the investment market, if you lose 40% of your $10,000 investment, you have $6,000 left. When that remaining investment adds 40%, you have… $8,400. What a bother.

Similarly, a recession can create business losses that are challenging to recoup… and they aren’t all strictly in the numbers.

For example, a large business customer may pull its business “temporarily” during a recession. Getting that customer buying again can be an uphill battle. Getting the customer back to or above its previous level of purchasing can be even tougher. During the customer’s hiatus, it has probably been courted by your competition, with great deals, low prices and – gulp – perhaps a fresher approach.

Many businesses reduced their marketing and hence shrunk their visibility during the last difficult quarters. Now they need to regain what they’ve lost in terms of being “top of mind” – ramping up marketing will require serious, insightful and ongoing effort now if it’s been shelved or minimal in the last year or two.

Were your engineers busily designing the next great thing during the slowdown? Great – you can come out shining. However, if the malaise meant that R&D was stalled and that even the best minds in your company were dulled by lack of sales and incentive, it’s time to refresh your approach and your offerings, because your competition will or has done so already.

Has the sales team been keeping in touch with all its customers and prospects, or has it, as in the infamous sales saga of Glengarry Glen Ross been waiting for the “good leads” and better times? There is no time NOT to be selling.

Today… while the past certainly affects your firm, days gone by matter now primarily as a lesson. Starting today, you have the need and you’ve absorbed the arithmetic. You know that a concentrated, energetic and smart effort distinguishes the companies that will soon regain their momentum and reach new heights from those that will not. This is true even if your revenues are down, your staff is reduced and you’ve borrowed money. It will take more work and more applied intelligence to gain ground than it took to lose it, just as it does in the investment market.

How is your company addressing the recovery? Please comment or email us privately with your thoughts.

Maybe it’s because the business climate is hardening, or perhaps it’s because vSA as a company has reached the ripe old age (25) when we’re much hungrier to do what’s right for a client than simply what’s expected. But in either case, we’re encountering an increasing number of situations in which we feel called upon to give our clients answers to questions they may not have asked.

Typical issues include the continuation of business models as well as sales and marketing programs that have become limp remainders of what they used to be. Very basic examples in the sales and marketing arena have symptoms that include dependence on non-working outreach: large commitments to print industrial directories or yellow pages, networking through local chambers and other organizations that haven’t updated their thinking or memberships in years, cold calling for rareified services, and keeping salespeople who cost more than they bring in. More problematic instances involve selling products that have become overly expensive compared to foreign knock-offs, perpetuating processes or technologies that are being washed over by tidal waves of newer ideas, and trying to get more and more work from fewer and less prosperous customers. The most intractable problems are faced by companies struggling to sustain a business service or product line that is – well, today’s typewriter. Products are becoming obsolete faster than ever. A glance into the computer graveyard in vSA’s storage room (or perhaps your own) is ample testimony to this reality.

The need for tough solutions and big shifts in business practices has altered vSA’s work as well, making it harder and yet more rewarding. Marketing is certainly enjoyable when we bring exciting new sales and opportunities. Today, rewarding and fun strategic marketing has married the stern face of business consulting. This partnership has become crucial because when clients call upon us to develop programs to build their sales and market share, we occasionally see that structural changes to their business processes, model or offerings are required before outreach is appropriate. Our work begins further upstream, supporting change to meet the spoken and unspoken needs of the client’s prospects, customers and other influentials.

So, that’s where the courageous consultant comes in. Just like a physician telling a patient that change must start with quitting drinking, losing weight or controlling his mood swings, vSA professionals do the right thing by helping clients build or rebuild for the wild and crazy future. In those cases, we don’t simply put a bandage on the client’s offerings and start marketing whatever we’ve got. Not when the stakes are so high for our client.

Work well independently?

Telecommuting, flex time and virtual business models are all the rage. Outsourcing projects rather than committing to long-term staff additions is popular now, too. No surprise there. The current state of the economy (I can barely wait until we’re no longer using that phrase quite so often!) demands efficiency, forces uncertainty, and makes available some stellar candidates with whom to work. In other words, a lot of great people are out of their former 9-5 salaried work routines. Even the 2010 census work is moving faster than expected because of the availability of outstanding temporary labor. Oh, that’s not much of a silver lining, perhaps, but there it is.

These new ways of working bode well for some businesses, and for some individuals. Streamlined processes, virtual meetings, work from anywhere (okay, let’s not text from a moving car – work from almost anywhere) are a boon for the highly motivated, organized and talented. But what about everyone else?

One of the concerns many thought leaders express about the new economy is that it yields work for the best, brightest and most driven (now including all that consulting, flexible positions, telecommuting, and other non-traditional arrangements). It also continues to offer a range of service work that, at least for now, requires a human presence (from health care to fine cooking). And there are still a number of U.S. manufacturing jobs, although that number continues to dwindle.

But what else? There’s a gap, likely to continue broadening, where there used to be more jobs for the rest of the workforce. As the economy continues to shift, what happens to the worker who needs the structure of an office to maintain motivation? The person who shows up for the assembly line? Where are the jobs for the capable person willing to work steadily all day or night but simply not constituted to come up with lots of big ideas, manage time completely independently or work alone? If you’ve ever been an employer or a manager, you know that these people make up the majority of many a workplace – that’s the way the world is and probably always has been.

This week, Time magazine’s article The Workforce: Where Will the New Jobs Come From? provides hope that there will be new jobs. That’s good. But for any leader or citizen who hopes to see the economy truly thrive again, there’s that other question, not so easy to answer. Will there be enough jobs for the great majority of working class and middle class Americans who do well working for a company, who respond to expectations set by management and who would like to put in a good day’s work for decent pay, then head home to their real lives? That’s a lot of people, and we all need to put our imaginations to work to make sure our economy continues to fully employ and value what continues to be the majority of the population.

Continued funding programs for better roads and bridges? Encouraging young people to go into trades such as plumbing or electrical work, in which shortages are predicted? Putting more adults in the schools to work with the kids? Opening more child care centers, which require staffing? Offering real live tech support? Human cashiers at the supermarket?

What could work and be valuable? What do you think?

To read or not to read...

… and I’d like not to be worried. After all, for me, the smell of a Barnes & Noble is nearly aphrodisiac, and I consider the buying, reading and piling up of books and magazines my birthright. I confess to not having a Kindle or similar device yet, but I know that’s coming. To me, format matters, but content matters more. That’s why I found Fortune’s cover story The Future of Reading particularly thought-provoking. I can’t believe it… could it even be possible… that people will ever lose interest completely in reading? Let it not be so.

Fortune, of course, is speaking largely from a business perspective, especially regarding journalistic concerns. I noticed that I couldn’t find the text of that March 1 lead article, which I first devoured in print while waiting at my allergist’s office, online as I wrote this – since it’s this week’s issue, Fortune would no doubt like us to buy the magazine and thus support the advertising. I certainly understand this. After all, a great deal of vSA’s work is in public relations, media relations in particular. If there is no revenue, there will be no publications. Plain and simple. Fortune, and even Broom, Brush & Mop magazine – difficult as it is to believe – are not mere labors of love.

Here’s my educated guess, based on the cosmic and not-so-cosmic shifts I’ve seen in my decades on this earth and at my desk (including the door-on-file-cabinets that served as my vSA desk in those first daring years of entrepreneurship): Reading will not die. The stature of Amazon and my beloved Barnes & Noble are evidence to that. Sadly, small bookstores and publications large and small have suffered and will continue to do so. The media will continue to adapt, with false starts and many casualties, to new models for advertising and other revenue generation. More and more of our reading will be done on notepads and online. People will continue to love video in all its forms, and many – okay, most – will prefer it to the written word.

But there is a magnetism to writing and to reading, and, despite the challenges of doing it well, there is a certain simplicity and joy to creating stories – just think, most children compose tales and essays as soon as they can wield a crayon or navigate a keyboard. We love our news (both the important and the supremely trivial) and we relish our rehashing of information, much of which will continue to be in the form of articles, opinions and other text.

Fortune, by the way, agrees, by and large: Reading – somehow, someway – will live on. What’s your take?

Will it matter if I send or delete?

So much work, so little time. On a good day, we’ll reach out or get back to five or ten clients and prospects with consulting documents, articles, interactive marketing efforts, design comps, and estimates. Plus, we’ll respond to several dozen more clients and associates about business-related matters, and initiate contact with a few companies we’d like to get to know. Much of this happens by email.

Some days, what we get back bears so little resemblance to what we send out that we must naturally assume that our emails got scrambled and sent to the wrong recipients, and that in return, we’re getting emails meant for someone (who???) who wants to know:

I See Website You Need to Meet

Work from Home for $10000/month!

Start Your Heart Automatically

There are only a few reasons I can fathom for this disconnect, the first being a technical glitch so mysterious that even the most universally admired computer wonks (and you know who you are, don’t you?) can’t figure it out.

The second is that vSA works at a pace so much faster than ordinary humans that our missives shoot out almost as if into the future, and it therefore takes some time for our recipients even to receive them. Asynchrony of time, we’ll call it.

The third, less likely, is that our clients and prospects are variously busy; occupied with other, even more urgent projects; or, in rare cases, disinterested in what we’ve sent. While this is difficult for us to imagine, we’ve heard from other professionals that they’ve had the same impression.

It’s sort of like parallel play among small children – I email you what I’m thinking about. You email me what you’re thinking about. The emails are like two ships passing in the night. This year, some of our marketing programs are fun – really fun. We’re hoping this transitions the ships passing in the night to ships honking, waving and shouting words of affirmation to and fro: “This is great! Gotta do it again!”

I’ll be waiting at my in box, smiling.

Are you tired of hearing the words, “No one could have predicted…” and variants thereof? I am, because the consequences of people in positions of responsibility not thinking outside the box and not planning and initiating appropriate action are often extreme. Here are just a few examples that should be etched into our collective memories:

Predictable given the mood of the public-Scott Brown’s election and the resulting likely (if temporary) demise of comprehensive health care reform: Putting your personal politics aside for a moment, imagine you are President Obama, Nancy Pelosi or Harry Reid – it’s okay, it’s just for a minute. Obama should have become more involved, and Congress should have moved faster – before the Democrats lost their filibuster-proof majority.

Predictable given geological and infrastructure facts-Haiti’s disaster: Construction with few building standards built on a fault line. An airport with such small capacity that only a few planes can be there at any one time. Add one (predictable) earthquake and we have the tragedy we see today. Worst thing? It could happen again.

Predictable given economic facts and indicators-The collapse of the housing market and the too-big-to-fail banks and our subsequent economic woes. As I’ve mentioned in this forum in the past, my father, a retired schoolteacher, accurately predicted the housing market collapse a couple of years before it happened. It’s hard to believe bankers, economists and politicians lacked the same data.

Predictable given clearly inferior engineering combined with neighborhoods below sea level-By now, what we knew and didn’t act on following Hurricane Katrina should be obvious. But guess what? We still haven’t fixed the problem with the levies, even as we rebuild below sea level in New Orleans.

Those are political issues that affect the world. Complacency and inaction are enormous factors in business, too. Consultatively, vSA always urges business leaders to step outside the box to think the big thoughts and then to act on them as needed. We all know how easy it is each day to pursue the latest deal, address the most recent 200 emails and just try to stay afloat keeping up with the urgent. However, it is hardly cliche to remember this: Do not overlook the important in favor of the merely urgent.

Thoughts, examples, strategies?

Not the meeting you were hoping to have today.

Anecdotally, we’re hearing that it’s vicious out there, yes, even more so than usual. Dog-eat-dog business conditions, shall we say? We’re suffering (hopefully) the last moans of a long, wearisome recession, and after all that business has contended with during 2008 and 2009, the fun-meter of commercial endeavor is running on low for many a company.

Certainly, brand loyalty has taken a hit: Just four out of 10 brands held on to at least half of their highly loyal customers from 2007 to 2008, according to the study from Catalina Marketing Corp’s CHKHDC.UL Pointer Media Network, which gathers purchasing data at 23,000 stores nationwide. But the news is more dire than that; the power has shifted away from companies with even the greatest brands. As George F. Colony, CEO of Forrester Research says, “You can no longer own your customer — your customer will own you.” This is true in B2B situations as well as B2C; the win-win balance is way off, bad customers are ruling the roost and, as social media marketer Jeramiah Owyang blogs, sometimes the seller must cut the cord – even during times when you’d think every penny was worth tolerating a lot of nonsense and indignity to attain. He’s talking to marketing firms, “hearing from a few vendors and agencies, that they’re letting go of their least wanted clients. Why? During a recession, vendors are focused on being efficient with all resources, and in some cases, some clients are net negative in time, energy, resources, and morale.” Net negative – that’s a good term to remember.

Too, many of the 8.2 million employees who’ve lost their jobs during this slump are unconvinced that their loyalty to the job meant much when times were tough. To quote a line from the upcoming movie Up In the Air, a fired employee asks the hired gun who’s there to dismiss him, “What are you going to do this weekend? You have money in your bank? You got gas in your gas tank? You going to take your kids out to Chuck E. Cheese?”

It’s not just actions, though, it’s attitude. How many of your price discussions with suppliers or customers have turned unpleasant? How much of the integral way you run processes has been questioned and turned inside out by customers demanding to “see it done better”? How many days do you and your associates go home exhausted and stressed?

There’s another viewpoint about the current economic climate and its impact on win-win relationships, however. Some businesspeople believe that the recession will forge new, stronger partnerships as business becomes more reliant on very solid partners to get the job done in a world of scarcity.Richard Lambert, Director-General of CBI, the UK’s leading business organization, says that, “In a more collaborative, less transactional world, closer relationships with customers, suppliers, employees and shareholders look like becoming the new norm.”

At vSA, we suspect it’ll cut both ways for some time to come – scrappy, messy business deals for many, collaboration for a few lucky others. Firms that want to become increasingly vital and not be pushed around like the youngest kid on the playground must identify their genuine strengths, empower themselves with offerings as unique as they can muster and be nimble… ever more nimble.

Your thoughts?

Once upon a time, all was well with the world.

Once upon a time, tech start-ups talked about their “burn rates” a lot, as in, “How much money will we flame through before we get the next big round of funding?” Some of them had bubbled glass in offices for people who’d never completed the development of the product being funded. Delicious lunches and indoor soccer were not out of the question. Then the tech bust hit  around 2000, for many start-ups signifying the beginning of… The End.

Fast forward to now. We’re kind of deep in the latest recession, a Great One to be sure. Oh, perhaps we’re swimming toward the surface now. But will business be the same as it was before the fall? Or is RESHAPING a more accurate term for what’s ahead than RECOVERY alone?

Well, not ALL is not all fog and mystery. In a time when vSA staff is asked more days than not what WE see ahead, we’re happy to talk about the reshaping (and that touch of recovery) that we, as marketers in the thick of it, are party to…

•   Businesses moving forward with cautious optimism. Maybe not happy-ever-after-times, but better times are coming. Whether, in the lingo of economists, it’s V-shaped (quick), U-shaped (gradual) or W-shaped (another dip ahead) is unknown. However, we’ve likely hit bottom and are on the way back, however gradually, to prosperity.

•   Marketers using the Web. We’re seeing a major surge of Web-related business coming in the door. Why not? People are going online to reach prospects quickly and efficiently. Whether creating an online catalog, interacting with customers or getting your Web site into Web 2.0 or beyond, it’s a smart place to start.

•   Worn-out ways of doing business… flying out the window. Businesses are scrutinizing everything. Are the salespeople delivering the right message? Is the company even selling through the right channels? Does print advertising work at ALL for this company? Should the company focus on its stronger offerings and (gulp) scrap other products? Tough times create tough questions – as they should. We’ll continue to see seismic shifts in businesses – from big mergers to dropped lines and brands, and even to more door closings – as well as hot new companies popping up like mushrooms.

•   Speaking in an authentic voice to build relationships. In a rough environment, trust rules. Savvy marketers are building relationships with the people they need most. They’re using public relations, social marketing, sales conversion programs, and customized grassroots outreach.

•   Executives, coming out of their back-office meetings to communicate new direction. And THAT is good news. Direction, after all, suggests movement. Reshaping, too.

Imagine for a moment that the communication in question isn’t marketing. Imagine you’re at a social event, talking with a stranger you’d like to know. What will keep this stranger talking with you? Will allow him to become intensely interested in what you have to say?

Talk about a topic in which the other person is very interested. (“Oh! You collect spiders?”)

Not only BE truthful and sincere – project it. Interestingly, even when you ARE being genuine, people don’t always believe it, probably because they have been exposed to so much that is false.

Hear and respond to the other person. Answer his or her questions directly, rather than swerving back to what you wanted to say anyway. Eventually, you can get to your message, but don’t force the matter prematurely.

Inspire curiosity. Be interesting enough that the person wants to learn more, and to continue talking with you, and to resume the conversation another time as well.

Now – let’s get back to the discipline of marketing. The principles are the same, but the barriers are higher. When you have something for sale (or, shall we say, “skin in the game”) you face the challenge of appearing biased. Gosh, wonder why! So it’s all the more important to project that you are telling the truth. The type of communication we’ve described above is a slower, more authentic way to build relationships than old-school hit-me-over-the-head-with-it marketing. But IT WORKS. Banks and financial service companies need solid relationships with customers and clients. So do companies whose products require a major commitment of time or money, or a switch to a new technology platform. So does your company, I’ll bet.

Think about the many types of communication you employ – from speaking engagements to webinars, editorial coverage to white papers, social media to sales meetings. Each of these can be studied and, as necessary, retooled to more clearly and effectively speak in an authentic voice.

In a time when trust is rare and business is still recovering from a nasty year or two, is it worth your time to make sure your communications resonate? At vSA, we’re voting yes-absolutely-yes, and the nature of our clients’ communications increasingly reflects our focus on building trust as we build their brands and sales.

Real trust is hard to find.

Even disregarding the in-your-face reality that current economic instability was caused in part by shoddy business practices in the lending and investment markets, marketers during this or any recovery need to pay heed to the one factor more likely than any other to influence a prospect to become a customer.

Not price – it’s trust.

How the heck do you build trust, you may ask? In two words, Get Real. Everybody else is as tired as you are of being fooled again, and again.

How to Get Real and Earn Trust, genuinely.

•    Introducing a product or service? Don’t jump the gun. All too often, companies announce a new product… and it’s not ready when they’ve said it will be. You look foolish at best, incompetent at worst.
•    Provide valuable information. Yup, it can be hard work to say anything that hasn’t been said a zillion times. Every marketer knows this. (Hey, look, I’m writing about TRUST for heaven’s sake – not original for sure, but I believe it’s timely.) Consider some straight talk that’s not a pitch. Gasp. It can be powerful stuff. Using techniques that can include PR, newsletters, informative CDs, the Web, and more lets you position your company as an industry expert. It’s a great way – a REAL way – to build trust among customers and prospects.
•    Keep at it. Hey, don’t give up! It takes time to build trust. Reach out to the same audiences again and again. Keep the messages consistent – if you appear to be inconsistent, customers won’t trust you.
•    Consider testimonials. Real confirmation that others have delighted in your offerings is a confidence-builder for prospects.
•    Listen to your customers. If you survey them, let them know you’ve heard. If they have a concern, address it. If they request technical support, make sure that it is good and that it is prompt. Again, hard work for real results.
•    Know your market. The more you know about your customer’s business, the more that customer can rely on you for solid solutions.
•    Please advise. Whenever you can, use a consultative approach to sales and marketing. That is, inform and advise more than you push the sale. After all, products and services as good as yours practically sell themselves… okay, okay, maybe I’m getting too optimistic here.
•    That brings us to another point: Make sure the products and services you offer DO live up to their promises. Otherwise – poof – the trust is gone.