FOR BREAKING STORIES AND NEWS UPDATES WWW.MULTICHANNEL.COM ■ VOLUME 30 ■ ■ NUMBER 10 ■ MARCH 9, 2009
To Stop Churn, Always Be Selling
Sales coaching: Sales Executive Council
SHIFTING SCENARIOS AND A COMPLETE INDUSTRY
transformation mean cable and telecom- research says reps who received just three
munications providers are competing for hours of coaching a month exceeded their
the same customers. Therefore, many cable goals by 7%, boosting revenue 25% and
MSOs must reinvent themselves in order increasing the average close rate by 70%.
to maintain a level of differentiation. But Coaches must foster a self-directed learnwhere should executives focus as they strive ing environment by providing questions,
not answers. They must help salespeople
for competitiveness?
A recent Maritz study finds that 54% of build problem-solving skills.
Incentives and recognition: A self-fundcable customer attrition is due to negative
customer experiences and two-thirds of tele- ing, non-cash incentive program provides
motivation to drive increased
communications
customers
sales performance. You must
who defect point to employees
address needs and drive peras the primary culprits. Worse,
formance for sales reps at all
three-quarters of those with a
levels — the top tier, your core
negative experience told at least
and new hires.
one other person. Cable comTop performer recognition:
panies lose more customers on
With self-motivated top pertheir own than competitors take
formers, focus on retention and
away.
continued growth. Obtain feedTo reach a new level of difback from those likely to be referentiation, cable MSOs must
warded before designing incendeliver a customer experience
MARK SYP
tive and recognition programs.
consistent with the brand promMARITZ
Core and new hires: One
ise. Where should a cable MSO
start? With the employees that customers Maritz poll found three-quarters of parinteract with first — your sales force. Here ticipants in incentive and recognition programs aren’t motivated by top-performer
are six keys to building a sales team:
Hiring practices: Recruiting and hiring programs because they don’t perceive an
the right salespeople starts with the desired opportunity to win. A “moving the middle”
end result (“I really want my cable service initiative gives core employees and new
through him/her”). Does the candidate hires an opportunity to earn.
Service-focused employees are part two of
have traits found in top performers? What’s
the solution. A 2008 study found that eight of
the competency model?
Training and reinforcement: MSOs 10 customers satisfied with the services they
cannot wait several months for a new sales- received also said they’d listen to additional
person to be productive. Optimize training sales offers.
When it comes to improving service,
programs and build them around customer
and employee research. You’ll drive better cable MSOs must:
Understand what customers and emperformance from rookies, core sales staff
ployees say: Engage both consumer and
and recognized MVPs.
small-business customers in research. Get
their full take on attitudes. Listen to your employees. Analyze both and identify specific
links to key business results. You’ll likely find
critical gaps between customers’ desired experiences and what employees deliver.
Enable employees to perform: Breakdowns in the customer experience are the
root of churn. All employees, including
technicians and call-center representatives,
must “own” the customer experience. Supply performance aids that build knowledge
and skills. Offer coaching for leaders. Repeat and reinforce.
Motivate employees to excel: Once
standards are set, cable MSOs must establish recognition tools and rewards that are
meaningful to individuals.
Research suggests non-cash rewards are
more effective in driving lasting behavior
change. They are built on choice, allowing participants to earn appealing rewards
that won’t absorb into the family budget.
Integrate a service culture throughout the
organization: Continually communicate a
compelling service mission set against the
brand. Doing this gives energy to the everyday work of customer experience. Dismantle
organizational silos that stymie goal integration and make producing results difficult.
For example, adding a referral program
enables service technicians to become part
of the sales force. With proper training and
coaching, they can identify sales opportunities when interacting with customers.
MSOs are at a crossroads. By employing the right strategies to optimize the sales
process and customer experience, organizations can transform the industry and build
credibility with skeptical customers. ■
Mark Syp is group vice president, major
cable and telco accounts at Maritz. He
develops research and designs employeeeffectiveness initiatives for cable operators.
“Cable companies lose more customers on their own than competitors take away.”
Posted from Multichannel News, March 9, 2009. Copyright © Reed Business Information, RBI™ a division of Reed Elsevier, Inc. All rights reserved.
Page layout as originally published in Multichannel News has been modified.
#1-26092437 Managed by The YGS Group, 717.399.1900. For more information visit www.theYGSgroup.com/reprints.
www.maritz.com • 1-877-4-MARITZ (1-877-462-7489)