Kevin Karaffa Joins InfoMentis As A Client Partner

Atlanta, Georgia - InfoMentis, Inc., a global consulting and performance improvement company announced today that Kevin Karaffa has joined InfoMentis as a Client Partner. 

“Leveraging Kevin’s experience will further enhance our ability to execute our customer-focused strategy and growth-oriented business plan.  In addition, it will broaden our reach in the training and consulting space, while providing valuable insight and mentorship to our prospective and current clients,” said Bob Frailey, EVP Client Relationships.  

Kevin Karaffa has served in the roles of frontline sales, director of sales, vice president of strategy, and executive vice president of sales, in both large and small consulting organizations. Using his knowledge of how companies work and what motivates people, he has built a highly successful 17-year career in business development and leadership. He has worked with some of the most prestigious Fortune 500 companies in the areas of performance improvement, employee engagement and increased profitability.  

Mr. Karaffa’s specialty is building long-term enterprise-wide business. As a sales leader, he was responsible for growth strategies to propel and elevate global/national enterprise-wide business development. As a business developer, he served in the roles of account manager, national account manager and global account manager. While working at Ken Blanchard Companies, Mr. Karaffa was a key executive, and was instrumental in transforming the company from a catalogue-based organization into a highly recognized international corporation, which delivered solutions to Global 1000 companies.

About InfoMentis
InfoMentis is a global consulting and performance improvement company providing configurable programs to help our clients enable cultural change. We teach our clients how to more effectively get, keep and satisfy their customers and partners, while at the same time helping them to achieve bottom-line results. Our configurable courseware, e-Learning modules, consulting services and collaborative productivity tools are designed to be adapted for role-based behavioral change for those in marketing, sales, services, support and management around the entire customer lifecycle.

Headquartered in Alpharetta, Georgia, InfoMentis helps industry leaders around the world understand and embrace the value of determining predictable revenue streams. Through our unique offerings, our clients are able to recognize that an opportunity for growth is significant among organizations eager to differentiate themselves. Founded in 1996, InfoMentis has provided performance improvement strategy, consulting and coaching to over 35,000 professionals in 46 countries.

For more information on InfoMentis, please visit www.infomentis.com

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InfoMentis and Savant Group Form Strategic Partnership

Atlanta, Georgia - InfoMentis, Inc., a global consulting and performance improvement company announced its strategic partnership with Atlanta-based Savant Group. Under the terms of the agreement, Savant Group will become an authorized reseller licensed to distribute and deliver InfoMentis consulting and performance improvement offerings in the United Sates. 

“The strength and industry expertise of Savant Group lends itself to countless new and exciting client opportunities,” commented Wendy Reed, CEO.  “Savant’s experience and solid understanding of InfoMentis solutions makes for a strong partnership.  We are thrilled about the key role our partnership with Savant Group will play in expanding InfoMentis’ footprint to new market verticals in the U.S.“

“Our clients will really benefit from InfoMentis content and systems,” commented Savant Co-Founders Stephen Gilkenson and Bill Stark.  “The material is very practical and touches every aspect of customer-facing business including channels, pre-sales, field sales, services and maintenance.  InfoMentis’ focus on making sales execution training stick ensures that each client’s investment produces maximum results.  This is a major problem in the sales training space, and InfoMentis has really proven themselves in this area.”

Savant Group's team is seasoned sales leaders, sales professionals, and training experts. They have experience in dozens of industries with many types of customers. Savant Group has a passion for improving the professionalism and results of the organizations they work and consult with.  Headquartered in Alpharetta, GA, Savant Group has been providing sales solutions since 2004.

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ASTD Atlanta Workforce Challenge 2009 & Expo

HAVE YOU HEARD?

• For the first time, five generations of workers are going to be working side by side. Each generation is uniquely motivated, works differently and requires cultural diversity.
• Talent will be less available from traditional sources and competition for them will be high.  These challenges will have a dramatic impact on human resources, training, education and workforce development. 

SO WHAT ARE WE TO DO ABOUT IT?

• Workforce Challenge 2009 will help you get a jump start on your 2009 talent management plans for how you will succeed as an education, training, development or human resources professional, organization or supplier.
• Come listen to the C-Level Panel's expertise on this topic and how they are addressing these workforce challenges
• Partnering with the Governor's office, a local university and major corporations, this event is an opportunity to come and learn how to adapt and excel in the challenges in our workforce. 

HOW CAN I BE “IN THE KNOW”?

• When:  November 12, 2008, 3:30 pm to 8:30pm
• What:  Workforce 2009 Panel Discussion with C-Level Executives from Governor Sunny Perdue’s office, The University of Georgia, and Verizon Wireless ~ a Top 5 ranked, “Training Top 125”, Fortune 50 company; ASTD Atlanta's Special Interest Group and Geographic Interest Group Expo and National and Local Vendor Expo - all discussing this important topic
• Where: The Carter Center
• Who Should Attend:  Almost everyone will be affected by the changes in our workforce.  If you want to learn, find resources and partnerships to begin to plan for success then this event is for you.

CAN I AFFORD TO BE “IN THE KNOW”?

• You can’t afford not to be!  Hurry and register today!
• How Much to Attend:
• $50 for members, $75 for non-members
• As an added bonus, if you are among the first 100 people who register you will receive a free private tour of the Jimmy Carter Library & Museum prior to the event on November 12, 2008. Or, you can use the free ticket at a later date for a self-guided tour as per the Jimmy Carter Library & Museum's ticket guidelines.
• Member price will be extended if you join ASTD Atlanta prior to or at the event.
• Corporate pricing available for 10 or more tickets - please contact Nicole Siokis for more details at nsiokis@belloaks.com
  

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What Have You Done For Your Most Profitable Customers Lately?
By Gerard Frey and Nora Laughton

With Vendor Specific Objective Evidence (VSOE) and revenue recognition rules taking some of the fun out of negotiating both license and maintenance for normally zealous sales people, high tech companies are having to spend more time analyzing both where their profits are really coming from and what the real cost is of “servicing” each type of customer.  We all know that it costs five to seven times more to acquire a new customer than it does to keep or service an existing one.  Since for most software companies, 60-80% of their total revenue (license, services and maintenance combined) is being generated from their existing install base, it is reasonable that selling to existing customers generates more profit than cultivating a net new customer.

Many companies don’t know who their most profitable customers are, and neither do they have a strategy to keep them.  Perhaps as important, how many companies actually profile those customers so they can develop strategies to attract more customers that match that profile?

How do you know you have the right customer strategy? 

• First, segment your customer base by total spend.  How many customers represent the top 1% of payers, top 10%, top 15% and 20%?   You need to know how many large, medium and small customers you have. 

• Then, develop a sales and marketing strategy by segment that maximizes revenue and retention within that segment.  In most software companies the top 20% of customers generate about 80% of the revenue.  For these customers, you’d likely take a more proactive approach with an emphasis on retaining and growing them.  An example of the type of service you might provide higher-paying customers is a designated account manager—someone they can call for any reason, such as escalation of an existing issue, to order more product, or discuss a migration.  This type of established relationship can help you reach trusted partner status with your customer and enables you to keep up to date on their business plans and needs.

Within the other 80% that generate 20% of the revenue, you’ll find a mixed bag consisting of low-paying customers that cost more to deliver service to than they pay (you’ll certainly want to address that), customers who just cover their costs, and middle-paying customers that, with the right strategies and services, will grow over time into larger customers.

It takes time to determine who the most profitable customers are, but it does pay to spend the time to determine exactly how much services cost to deliver, and just exactly which customers are using those services.  You might be surprised at what you discover.  Some of our customers have changed the services they offer—once they know how much they actually cost to deliver and who is using them.  Look for trends in your customer base.  If your most profitable customers are all in a particular industry or are a specific size, use that information to develop your retention strategies and future sales and marketing strategies.

Once your services initiatives are in place, you’ll need to create the proper organization to support and deliver on them.  To begin you will need to:

• Develop a cost-effective model that supports your service strategies.  Some of our customers establish a threshold of dollars that a customer must pay in maintenance before they will have access to different levels of service.

• Establish clear lines of responsibility and accountability, and ensure that there are defined lines of communication and escalation where applicable.  Goals should be measurable and reachable.  Layers of administration can hinder service delivery levels—the simpler the better.

• Develop a compensation model that will drive the kind of behavior that you want from the organization.  The best strategies will achieve nothing if compensation spurs different behavior.  Effectively, regardless of how important you tell your sales people maintenance is, they are really not going to hear you unless there is compensation tied to it.

Companies that apply the right strategies to the different segments of their customer bases find that their retention rates are more stable than companies that simply throw additional services at customers when they are unhappy.  A well-thought-out strategy can help you determine who your most profitable customers are and how to treat them so that they will want to stay your customers.  What have you done for your most profitable customers lately?

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What Makes Good People Stay?
By Debbie Stovall, PCC and Founder of SuccessRealities

As leaders of organizations/departments, the main resource used to accomplish the organization’s work is its people.  Attracting, recruiting and retaining these resources are vital to successful business operations and customer satisfaction.  So what makes good people stay?  Let’s put it in the perspective of Maslow’s Hierarchy of Needs.
 
Physiological Needs:  Air, water, food, shelter – basically all the elements needed for physical survival.  This is the primary motivator of most employees for seeking and staying at any one particular job – the dollars it produces to meet their most basic of needs.  Compensation should keep pace with performance and experience levels.  One of the biggest issues faced by long-time employees is the fact that their pay, based on a decade ago economy and 4% increases year over year, has not kept pace with what the going rate for that level of experience in the open market.

Safety/Security Needs:  Job security fits into this category.  Given current market conditions we are all well aware that the security in any job is minimal and can change at the blink of the Wall Street ticker tape.   A leader/manager as part of their charge must communicate regularly with employees to ensure they have a feeling of safety and security at their current positions.   An organization run on fear based principles, whether by design or by accident, is draining the workforce of productivity.  Knowing individually and as a group that they are meeting or exceeding their goals and objectives makes a big difference in the organizations well-being.

Social Needs:  Getting employees involved and creating a team atmosphere fulfills this need.  This is a challenge for many organizations today as they are distributed geographically and do not see each other on a daily basis.  So creating the camaraderie and all for one type of feeling requires more effort.  Regional meetings can help meet this need as groups get together and discuss the current state of business and plans for the future.  Knowing your company, organization and group have future plans is comforting.  It says there is sustainable business and growth in new areas, making work more abundant. 

Esteem Needs:  High self-regard and regard for others accomplishes the esteem need.  Self-confidence and sense of value are essential.  When the value, importance and contributions of an employee are validated by the manager, that employee is motivated and able to help build esteem in others.  High self-esteem is an essential element in any leader and how they promote esteem throughout the organization is a driving factor in job satisfaction for both the leaders and the employees in the group.

Self-Actualization:  Making a significant contribution and reaching a high level of self-worth.  Goals, whether group or individual, need to focus behavior on stretching to achieve the most possible.  Achieving goals that push the limits, allows the employee to realize even greater personal potential.  Helping to achieve worthwhile objectives validates self-worth.  Employees in this top level of Maslow’s Hierarchy require more opportunities to be involved with the forward progress of the group and the organization.  And in conjunction, management style, team structures and processes need to remain flexible to maintain motivation.

All of these levels can be met through interaction in the workplace with the critical link being the direct supervisor.  Anyone who manages resources must understand and appreciate what those resources want from their work.  This allows the manager to adjust the management approach to each individual vs. the one-size-fits all management style of decades past.  In summary, here are the things that make good people stay: 

• Compensation – compensation plans are a great starting place, but after 5 years, an employee can typically take their experience and knowledge capital, go somewhere else and get a 10% to 15% increase in their base and possible increases in incentive payments.  Payment for performance and experience needs to be the goal of any company wanting to retain the best of the best.

• Secure and stable environment – define short- and long-term goals and objectives for the organization and cascade them down to each individual employee.  Otherwise, everyone is trying to do everything, creating chaos and mayhem vs. a clear definition of what is needed to grow a successful and stable business environment.

• Involvement in the decision-making process – no business grows on the skills of one person alone.  Involving employees in the planning and execution of a strategy garners ownership and pride in the efforts required to execute. 

• Validation of worth – offer rewards, incentives and motivation.  Knowing you are doing a good job is not enough – others need to know it too and recognize and reward it.  Direct supervisors are the first place to start by ensuring when someone does a great job the employee doing it and the rest of the team knows it and celebrates the success.

• An opportunity to make a real difference – when personal goals and measurable results coincide, an employee has a clear picture of how what they do on a daily basis drives the business forward.  Feeling like they are an integral part in the success is a great motivator.

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It’s Not the Price, It’s the Value!
By Mark Norato

I recently visited a local hardware store to purchase several gallons of paint for a remodeling project my wife and I had undertaken. After I found the color I wanted, a clerk walked up and asked, “Can I help you?”

I answered “I’ve found the color that I want, but honestly, your prices are higher than the Wonder-Mart super store down the street.” The clerk immediately replied, “Sir, you’ve selected our premium brand paint. It comes with a five-year warranty against fading and peeling and will cover in one coat. Because of the way it’s blended, scratches and other surface marks will wash off easily. I’m very familiar with the Wonder-Mart brand, it’s a good, lower-end paint but it has no warranty, and you will probably need at least two coats depending on the color you’re painting over, so it’s not really the bargain it appears to be.” I nearly fell on the floor! This 20-something year old clerk working at a hardware store in Conyers, Georgia understands what most sales professionals don’t…it’s not the price, it’s the value!

The clerk could have chosen to defend his price, which would have been a losing battle since his product was already higher priced, and I was convinced based on my limited knowledge that paint was paint. He could have offered me a discount, which would have only reinforced my opinion that his product was no different than the Wonder-Mart brand in addition to depleting his margins. Or he could have bent himself into a pretzel like so many sales professionals do by using some sort of manipulative sales tactic to “overcome” my price objection. Instead, he simply chose to sell the value of his product in a straight-forward manner that helped educate me on the fact that paint was not paint. This exact same scenario takes place every day in B2B sales, only in most instances the sales professional almost always falls back to selling price.

Consider this fact … regardless of the product or industry segment you’re selling into, when customers are presented with price versus value decisions, 73% of the time the purchasing decision will be based on factors other than price. This is not to suggest that price is unimportant—it obviously is—however, it’s typically not the primary driver in the purchasing decision, although most sales professionals seem to believe otherwise.

This principal should not seem all that extraordinary. If price was the only thing that mattered, we would all be driving Yugo automobiles and purchasing our clothes at Wal-Mart. The fact that Toyota commands a premium for its automobiles and department stores such as Nordstroms thrives on selling premium-branded products proves otherwise. The key point here is that unless you explain what value your product or service brings to the table, the client is left to think that price is all that matters, in which case the cheapest will always win.

So how do you sell value?

• Understand your customer’s needs and expectations and how your product or service meets those needs. Your current customers are your best source of information—use them! In doing so, consider:
• What selection criteria did they use in picking your company?
• How did they evaluate the competitive landscape?  

• Understand your competitor’s products and services and what truly differentiates them from you. Typically companies face the same competitors all the time. Do your homework. Ask yourself:
• If I was the competitor, what value proposition would I be selling? Is it price, service, functionality, reputation, etc.?
• How would I differentiate my products and services?
• Other than price, what components of my product or service can be used to differentiate and drive value?

• Use a consultative approach as opposed to that of a vendor. Ask plenty of questions to understand your prospect’s business, his or her specific problems and challenges, how your product will be used, etc., and then position your value proposition around these areas.

• Focus your selling efforts on the market niche where you add value. Forget about chasing the 27% of any market that purchases on price alone; let someone else pursue these low-margin, no loyalty customers.

In summary, you have a clear and distinct choice when it comes to dealing with price and value. The way in which you respond will either drive the decision towards one extreme or the other. Beyond the basic information contained in generic marketing or sales brochures, very few sales professionals today truly understand the value differentiators associated with the products or services they sell. By spending just a few minutes THINKING through the above bullet points, you’ll be better prepared to deliver more compelling value propositions.

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B-toB Sales: Planning Assumptions 2009
By SiriusDecisions

Nearly every sports fan has heard the story of baseball legend Babe Ruth once standing at home plate and pointing to where he was going to hit a home run. Such a gesture was bold to be sure, but having already hit a round-tripper off the now tiring pitcher and knowing that the wind was still blowing out in Chicago’s Wrigley Field, he had a pretty solid set of assumptions on which to base his prediction. Sales leaders must also build from a solid set of assumptions before they can point to their quota and predict success of their own. In this brief, we reveal and explore five core trends for 2009 that should drive every sales leader’s strategic planning, helping them to drive sales optimization, improve sales performance and “knock the quota ball” out of the park.

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