Motivate . . . Educate . . . Participate

By: Biff Matthews, President, Cardware International

A Webinar I attended this morning discussed “Blue Ocean Strategies,” a popular
(now in 37 languages) business strategy whose rallying cry is “Don’t Compete
with Rivals . . . Make Them Irrelevant.”

The book was written for people in manufacturing and service industries where
competition is intense.  If you’re reading GreenSheet, that surely includes you. 
The book’s premise is that head-to-head competition is ultimately a losing game
with diminishing returns -  and diminishing profitability.  Those who will be most
successful in today’s environment, say the authors, will do so by finding new ways
to identify unique or niche’ customers, new ways to add value to the services they
provide, and more effective ways to reach the best prospects, away from the din
of competition.

I think the authors are dead-right.  And for MLSs who are highly motivated, I think
there are steps – some obvious, others not– that make success more likely. 

The most obvious requirement is education.  Publications such as this one are excellent
sources of industry news and information, as well as developments that will likely affect
us in the future.  Industry-specific magazines such as Stores, for the broad retail industry,
Convenience Store News or National Petroleum News focus on the issues impacting
those industries. 

A useful distinction:  “Vertical” magazines such as Pizza Today are written for the full
range of job titles (store owners to distributors to cheese-makers) throughout one slice
(sorry, couldn’t resist) of an industry.  “Horizontal” publications, such as Financial
Executive, cut across many sectors, focusing on readers with a specific job responsibility,
working in many different industries.  You can’t read them all,  but you can selectively
scan a few that are relevant to your best customers and prospects, and gain an
understanding of their world that few in your profession ever will. 

Trade shows let you combine knowledge and networking.  If you’re a regular reader
of this magazine, you’re aware of shows sponsored by ETA, ATMIA, the acquirer
associations, NACHA, BIA, ABA, and others.  In our industry, these shows are the
only venues where all the equipment makers, all the card associations and everyone
else involved in the food chain gets together. 

Trade shows have become controversial: companies love them  - or hate them.  
It’s a common perception that attendance is down, overall.  That may be true, but
there are more shows, and they’re cannibalizing each other.  That just means you
have to be more selective.

From my perspective, I can’t afford to put five salespeople on the road, but I absolutely
can get in front of as many qualified prospects as those five people could in a half-year . . .
in 3-4 days at a good show.  ETA cites an interesting statistic:  the number of attendees
vs. the number of exhibitors used to be, at their show,  55% exhibitors, 45% attendees.  
That number has now flipped, a trend they see as positive going forward.  

Nationwide, leads generated at trade shows account for about one-fifth of a business
services firm’s sales.  I think that number is fair for our industry, and I’m certainly
not willing to forgo those leads to save the cost of exhibiting. 

Just as it’s important to keep current with developments in your business; it’s also
important to know what’s happening at the primary shows serving the retail,
hospitality and petroleum sectors:  NRF in January, NRA in May, NACS in
November and NACS Tech in May.

Industry-specific national shows present excellent opportunities for becoming
knowledgeable about a specific sector.  They help you understand what your
customers are encountering, and what’s on their horizons. 

Closer to home, regional shows are venues that are smaller, more intimate, and
often not on the radar of your competitor colleagues.  I just returned from the
Southeast Petroleum Show. I had feared it might be too small for us to be effective,
but there were two key vendors in attendance that, by the time you read this, will
be clients. One show attendee will as well, and it’s a company of substantial size. 
By doing some selective post-show follow-up using the exhibitor list, we maybe able
to do even better.  In some cases, shows also make available an attendee list –
are excellent prospecting tool for the enterprising MLS. 

As an exhibitor at several trade shows each year, I’ve noted increased participation
at small, regional shows on the part of a few seemingly unlikely groups.  One recent
show for retailers had as participants two business brokers.  This may sound to be an
odd venue for them.  Wouldn’t the International Business Brokers Assn. show, or a
franchising show, be more appropriate?  Well, no.  Brokers’ participating in shows
attended by owners of food marts makes sense for the same reason as you attending
those shows: there are lots of prospects, and not many rivals around to spoil the fun.

Doing well in these venues means being fully aware and open to opportunities,
particularly those that are not readily evident.  Show participants and exhibitors
both represent potential B2B business.   Both are also potential lead sources;
I scratch your back, you scratch mine.  And they are potential selling partners.     

While attending shows is important, taking the next step and exhibiting is well worth
considering.  This allows clients to come to you, versus you pursuing them.  A show is
the only forum where you have the potential to talk with hundreds of potential customers
in a short period of time.  Occasionally you’ll find that show rules are tightening and you’ll
either exhibit, or not be there at all. 

There were, for example, no vendors walking the floor at the Southeast Petroleum
Expo where we displayed last month.  In deference to people who had paid to participate
in the event, none were allowed, unless they were exhibitors.  An amiable show manager
may make an exception – once, particularly if you’re new to the field.  But after that,
the benefits of the show go to those who have invested in it.  Even when (what seems
like) the worst happens.

We did an ETA show in Hawaii.  Unfortunately, our booth was AWOL.  Nothing arrived. 
I had a table, so I had sign made up.  It was certainly different, and it gleaned lots of
attention.  Everyone asked about it, all day, every day.  (This is my favorite case study
for making lemonade.)   40% of our visitor traffic was known to us; 60% were new
prospects.  By staying upbeat and approachable, we made it into a productive show,
booth or no booth. 

If this last tale hasn’t made you wary of exhibiting, and you decide to move in this
direction, I would offer a word of serious advice:  treat every visitor to your exhibit
with equal regard .  Warren Buffet drives an old truck, often wears a flannel shirt and
jeans and is apt to have mud on his boots.  That person with the scraggy look may
own a business with hundreds of locations, and by their appearance is testing your
mettle and professionalism.   Make sure yours are not diminished by something as
superficial as clothing.

Working a tradeshow for greatest benefit requires specific skills, and an assertive,
but tactful approach.  Exhibit companies offer seminars on how to maximize the
return on your investment.   Tradeshow publications and industry magazines also
publish articles on getting the most benefit from shows.  Google that phrase
and you’ll find helpful information from numerous sources.    

Success comes to those who motivate, educate - and participate.  Fortunately,
there’s lots of help that’s yours for the asking, but it’s important that “help” go
both ways.  Join an association, chair or actively work on a committee or deliver
a presentation.  Become involved in the industries that make your livelihood possible. 
The result will be that you’ll learn how to help your customers be more successful. 
And that is the only sure way to long-term success.

Biff Matthews is President of Thirteen Inc, the parent company of
CardWare International.  He is one of 12 founding members of the ETA,
serving on its board, advisory board and committees.  (740) 522-2150.

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