Would You Do Business with Roger Sterling?

Are you a small firm with no sales team, considering hiring someone to acquire new business?

Don’t. Until you consider this: You might be surrounded by business developers, disguised as employees.

Your instinct says, “Employees weren’t hired to sell,” or “Employees don’t have the expertise to sell.”

Sure, you can spend time and money hiring a go-getter who is smooth on the phone and keeps a positive attitude despite hearing “no” 20 times a day. But when she finds someone interested in your services, can she represent your culture—your brand—or is it apparent to prospects that she’s merely shepherding them through your sales process?

Clients today don’t need Roger Sterling from Mad Men. They need people who understand their needs and can make things happen. They need to see value, right out of the gate.

You’ve invested a lot to recruit, hire and cultivate strong people. Before throwing one dollar toward hiring additional personnel for the sole purpose of acquisition, consider leveraging the marketing power lying dormant amongst your ranks.

Employees have countless “Moments of Impression” with clients and prospects. What are they? How do you maximize each and every one, to drive leads, referrals and growth within existing clients?

Employees are the only ones who can truly represent your culture—your brand—by developing the relationships that become the strongest link from your brand to potential new clients.

If you didn’t hire employees to help you build the brand, what did you hire them for?

How to Sink a Brand

The captain of the Costa Concordia has certainly tarnished his reputation—his brand.

He's also extremely weakened our perception of the brands he works for: Carnival Corp. and its Italian unit, Costa Crociere SpA. Even though it's very possible no other captain in the fleet will make this kind of mistake, it doesn't matter.

All the advertising, branding and marketing you do is at the mercy of your employees. Even if the people who work with you don't have the ability to completely sink your brand, they surely can put holes in its hull.

Captain Schettino didn't set out to damage either the ship or the image portrayed by the logos adorning it. Your employees want to do good, mainly because contributing to the company Brand (notice the BIG "B") in meaningful ways helps to build their own personal brands (with a little "b").

(Don't let the caps and lowercase fool you into thinking one's more crucial than the other; they're equal when it comes to gaining market share.)

Only when one brand puts itself above the other does the water start to seep in. Say, for example, the brand decides to flex some muscle by showing off for a retiring team member or cute eastern European woman, disregarding what's best for the Brand. Bad things can happen.

But let's not pick solely on the little "b". It works the other way, too.

The genesis of Brand is derived from executive vision, but ultimately becomes what employees make of it. All too often, Brand runs itself aground by, say, making claims to the marketplace that can't be delivered on, or treating employees like, well, employees and not the important "Brandtenders" they are.

Walgreen's Strategy Paying Off

In my last post, I noted that Walgreen's has embarked on the people-based strategy of training pharmacists to spend more time helping patients with chronic illnesses.

Building relationships with customers, to proactively drive customer engagement vs. delivering reactive customer service, leads to strong and sustainable growth, at least in my book (literally).

A strategy like this sounds good in the boardroom and looks good on paper, but means nothing if it doesn't drive results, right?

Early results are in, and they couldn't be better. Here's what The Wall Street Journal just reported this week:

"Walgreen Co. said June same-store sales rose 2 percent, a reversal from two straight months of decline, as discretionary sales in the front end of the store improved. Overall, sales jumped 8.4 percent, to $5.67 billion" for the company."

This is a sound example of how employees who are aligned with your brand can create real relationships with customers, based on shared values. By improving each "moment of impression" a customer has with a pharmacist--or any employee in the Walgreen's organization--the ripple effect spurs growth in the different products and services a brand offers.

I will keep you updated on AmEx and Comcast, two other companies I applauded in my last post for installing people-centric strategies for growth.

The Wells Fargo Brand: 168,000 Employees

Wells Fargo’s “surprise announcement” of record first-quarter earnings wasn’t much of a revelation to those who’ve watched the bank imbed its brand into the market.

First-quarter net income reached a record $3 billion. And just think--some Wall Streeters suggested Chairman Dick Kovacevich step down after he hit mandatory retirement age (65) last October. They’re not complaining now. After all, he fashioned a brand that's thriving during this historic economic downtown. 

How?

Diligence in lending practices, surely. But, it took something that's been completely missed in evaluations of the bank’s success: 167,500 employees trained to act on a brand message that creates committed customers.

These employee-to-customer relationships built a customer base that buys multiple products from the bank, not just a mortgage or checking account. 

The bank makes it a priority that employees encourage customers to buy all their financial products through Wells Fargo. Kovacevich's goal: sell at least eight products to every customer.

"We want to earn 100 percent of our customers' business,” he said. “The more products customers have with Wells Fargo the better deal they get, the more loyal they are, and the longer they stay with the company. Eighty percent of our revenue growth comes from selling more products to existing customers."

This concept, “cross-selling," is tough because individual products are often sold through their own distribution channels in larger institutions. Kovacevich was a marketing pioneer, moving all products through all channels.

It’s paying off. 

The average American owns 16 financial products from eight institutions, putting the "cross-sell ratio" at two. Wells averages nearly six products per household, thanks to front-line associates and managers creating relationships during routine employee-customer encounters.

That respect is shared with customers during interactions. When you visit a branch, you may see employees wearing t-shirts emblazoned with “I work for the customer.” This thinking has provided big returns--in the form of deposits. 

Tellers and other employees on the front lines try to make personal connections with customers. They say customers’ names when speaking to them, for example. 

Wells Fargo is more connected to its customers than any major American financial institution, and its board of directors was wise to grant Kovacevich exemption from the mandatory retirement age.