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There's Value in Knowing Bad
Practices©
by Al Hahn
You hear a lot about "Best Practices" these days. In fact, my
company researches and publishes studies about the best practices of
marketing and selling services every year. We also teach seminars using
these best practices. I have published articles in this magazine about
them. It seems like I hear this term all the time.
But what about "Worst Practices?" We can’t all be best, can
we? Doesn’t anyone have a bad practice? You bet! I see them all the
time. I don’t know why it took me this long to realize it, but it would
be just as valuable to know what doesn’t work, wouldn’t it? So, in the
interest of helping you avoid the mistakes of others, here are some
practices that don’t work very well.
1. Depending upon corporate or product marketing to also provide
services marketing. This is a common mistake. My experience has been 100
percent consistent that this doesn’t work. It sounds good. Corporate or
product marketing has all the resources. It will help us to be more
consistent. We wouldn’t want services marketing to be different from our
product marketing, would we? The problem is that no organization ever has
enough resources, and product marketing will always dominate in this
group. In one case, a service organization was convinced to transfer their
lone service marketer to product marketing. By the beginning of the next
fiscal year, more than 60 percent of this marketer’s goals were for
non-service objectives. Service lost a big part of their meager resource.
This is typical for this worst practice.
2. Service product managers with no marketing experience. Here’s
another dog that won’t hunt. Product management has some serious
marketing overtones that operations people just don’t get. It could work
as long as you understand this and organize around it, but if you believe
that these people are performing marketing tasks without any training or
experience, you’re just kidding yourself.
3. Not paying commissions to salespeople for selling services.
Excuse me for being politically incorrect, but this is just dumb.
Salespeople, as a good friend of mind who sells likes to say, are
coin-operated. Services don’t sell themselves and salespeople just give
away things they are not compensated for selling. Don’t try to skimp
here. Better to pay an extra commission than none at all.
4. Pricing committees. Pricing is one of the four Ps of marketing.
It must be aligned with the other Ps to work effectively. Committees that
include finance and service operations types will just muck things up.
They don’t understand marketing or pricing strategies. Besides, too many
cooks spoil the broth. You know the old saying, a camel is a horse
designed by a committee.
5. Business prevention committees. This is another committee,
operating under various cover names, dominated by service operations
people. They are particularly good at finding the 100 things that could
possibly go wrong with any new idea. That’s the problem with those of us
who come from a strong service background. We have good diagnostic skills,
and we have seen almost everything go wrong at one time or another. Put in
the wrong place, we will kill any attempt at innovation and all new
business opportunities.
6. Depending on corporate for public relations activities. If your
company produces a product (other than services), your PR staff probably
doesn’t "get" service. They also don’t know the media and
editors that follow services. If you’re lucky, they might help out to
write a press release, but then they won’t know where to send it. Take
responsibility for this important function into your own hands, even if
you have to hire your own agency.
7. Selling professional services through your product sales force.
Enough companies have tried this to prove it doesn’t work. Selling
custom professional services requires a consultative selling process,
higher level calling, and a longer sales cycle. These are all pretty
incompatible with most product sales forces. They usually wind up giving
these services away to move more product. O.K., I do know of one software
company that used product salespeople closely teamed with professional
services representatives and made it work. Another exception is in selling
packaged professional services, sometimes called managed services.
Otherwise, it doesn’t work. Most companies have to set up an entirely
separate sales team to sell high-end custom professional services. You
also will need a bid desk to help assemble complex proposals.
Well, that ought to get a few letters of protest. Sorry, if you disagree
with me, but I am just reporting some things I have observed more than
once. Actually, I have seen these practices fail many times. If you have a
genuine exception, feel free to let me know. Better yet, if you have a
worst practice that you have tried or observed, pass it along. I’ll save
any new ones I receive for a future column. You’ll be saving your peers
from serious trouble.


© 2002 Hahn Consulting. All rights reserved. *All other
names and trademarks belong to their respective holders.
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