Last week I decided to bite the bullet and create a blog for my company. I chose Wordpress, because I had some experience using one of their blogs for a client in the past. I found it simple to set up and I was live in under 20 minutes. Awesome. I’ve since added 6 of my articles to the blog that I have written for Catalog Success Magazine.

I’ll be adding more content as the weeks progress. You can check out my new blog at: http://gilbertdirectmarketing.wordpress.com/. While you are there don’t forget to leave a comment, so I know you have visited.

Also, if you have your own blog, or read a great blog that I should have linked to my blog roll, let me know and I’ll add it. So are you blogging? On what subject? What have the results been like for you? How are you currently promoting your blog? Let’s start a discussion here.

If you would like to discuss this offline, email me at jimdirect@aol.com.

For those readers who believe that I am off base in my assertion that downsizing is for weak management, let me say this. 9 out of 10 companies that layoff employees, do so for the absolute wrong reasons. From what I have seen, most companies downsize before all other expense reductions measures have been exhausted.

Two weeks ago, I discussed the two largest areas of revenue bleeding for most companies; their call center and their website.

To read that article click here: http://www.catalogsuccess.com/story/story.bsp?sid=176865&var=story.

I’m willing to bet that if you just fix the gaping holes in those two areas, you can win back enough revenue to get you through tough times without affecting headcount. Unfortunately that’s the road less traveled. The easy way out is to cut staff. I’ve been faced with that issue before.

To me it’s a clear choice. Layoffs are not an option. As a manager they’re not even on the table. So to put my money where my mouth is, here are two short stories of how I have handled such crises.

Crisis one, how it was resolved:

Years ago, I was hired to do a turnaround for a direct marketing company that wasn’t profitable. In fact they were losing a ton of money and had been for quite a while. So what did I do:

1. I trained our customer reps constantly and consistently how to convert more inquiries to sales, cross sell more effectively, recommend exchanges rather than returns, and handle all complaints as an opportunity the build customer loyalty. The training process was simple and the reps even had fun with it. For more on how to do it see my article series: http://www.catalogsuccess.com/story/story.bsp?sid=92018&var=story

2. I looked very carefully at metrics, most notably LTV (lifetime value), and ROI payback (this was a catalog company) over time. I ruthlessly got rid of anything that didn’t work. And believe me when I tell you this, there was a ton of media that was not performing even on the front end, much less on a LTV basis. Our major point of entry for prospecting was lead generation. I dumped a great deal of two step lead gen programs and added in much more list rental names.

3. I had one of the major catalog coops build inquiry and retention models, cutting out waste by only mailing to names of old customers and prospects that were in a buying frame of mind.

4. I set up new small scale tests of other direct marketing media, print, package inserts, card decks, and tested new internet media (it was early in the game) adding in affiliate programs, search and email. The point of this is simple. Just because you have to cut, it doesn’t mean you can’t or shouldn’t test.

5. And I renegotiated everything. I cut our marketing expenses just for catalog printing and mailing by 20%.

I hope this helps. At the very least let this show you that there are other area’s to cut costs rather than knee-jerk your way to laying off employees that work hard for you. I was able to cut enough expenses so I didn’t have to let go of even one person.

Bottom line. Make the decision not to cut, draw a line in the sand and start reviewing everything. Next week, I’ll tell you the second story about the start up that ran out of money (and provide you more tips within the story).

Jim Gilbert is the President of Gilbert Direct Marketing, Inc., a full service catalog and direct marketing agency. His linkedin profile can be viewed at http://www.linkedin.com/in/jimwgilbert., or email him: jimdirect@aol.com.

Don’t you dare read my column this week, unless…

…Unless you have voted!  

If not, stop reading here.  Walk out of your office, home, or wherever you are and proceed directly to your assigned polling station. 

There is too much as stake this time around, so I implore you to get out and vote.  Republican, Democrat, who cares, just go vote.  Sure there may be long lines, but this is your one and only opportunity to make the biggest difference you can possibly make in your lifetime.

And one thing is for sure; your vote will count in the history books!  Either the first African American, or the first Woman in office. 

I spent over 3 hours in the Florida heat (it’s still in the high eighty’s here, and the line was outdoors in the sun!) with my wife and 8 year old for the privilege to cast my ballot.  FYI, no hanging chads today, it was all done by “scan tron” (number 2 pencil not necessary)

One interesting point, and this goes more to marketing than it goes to voting choice.  About an hour after we arrived, a truck pulls in with Obama logos emblazoned on its sides.  Said truck then proceeds to unload coolers, and in a low-key way, they hand out bottles of water to keep the masses happy and without heatstroke.  Good job!  And LOL they gave water to all.  No partisanship here! 

Rant over!

As to last weeks column on downsizing, I got a few interesting comments, some appreciative for my views, and of course some who thought I was way off base.

So next Tuesday, for those who believe that my, “downsizing is for sissies” argument doesn’t hold water, and that I don’t know what I’m talking about, stay tuned.  I’ll prove my point to shut the naysayers up (and I’ll serve up some tips to help you reduce costs as well).

And to put my money where my mouth is, I offer this challenge. 

If your company cannot figure out how to save money so as not to downsize, contact me.  I will help the first two companies to contact me pro bono (as long as I can use the case studies in future columns).

Now close this window and go vote please!

Jim Gilbert is the President of Gilbert Direct Marketing, Inc., a full service catalog and direct marketing agency.  His linkedin profile can be viewed at http://www.linkedin.com/in/jimwgilbert., or email him: jimdirect@aol.com.

There have been some high profile layoffs in our industry in the last few weeks.  With our economy on the floor, companies presently seeing slumping sales, and the outlook for the rest of Q4 being painted as “bleak”, I’d say we all expect more downsizing to come.

Last week I wrote about how to bulletproof your career in this economy by cutting costs.  I have many more cost cutting/revenue creating tips for you (Forthcoming, stay tuned).

But first I’d like to address all the C-Level folks who read my column (and the rest of you too of course).  Let me begin by making the assertion that your business is not very efficient.  No matter how well you run your business, you’re still bleeding cash out the door in many places.

Here let me help you out. 

1.    Your call center doesn’t convert enough prospects to customers. 

2.    Neither does your website.  Most likely your website converts customers in the single digits.

3.    Right now, someone is speaking to one of your call center reps, or on your website, and getting pissed off.

4.    Did you hear that?  That was the sound of clicking away and the phone hanging up.

That’s just 4 of the areas I see daily that ALWAYS need work (the lowest hanging fruit usually). 
In short, no matter how you slice it, both your sales acumen and your customer service, well needs major work. And if you only fix that part of your business, you’ll add back enough revenue to probably help you through the storm. 

Examples: How much revenue do you create if you convert 1% more sales in your call center or website?  How much more gross profit do you get by reducing returns by a percent?  There is plenty of stuff here to fix.

Which is why, I don’t believe in downsizing, rightsizing, layoffs, cutting headcount or whatever euphemism you call it in your company.  To me, that’s taking the easy way out… the path of least resistance, and it’s a sign of weakness… unless ALL other options for cost cutting and revenue increasing have been completely and thoroughly exhausted.

If not you’re going to mess up the lives of some people who deeply care about (their jobs and your company), and desperately need their jobs. 

Remember, the job outlook is bleak.  Many of your employees who get let go are will absolutely have a hard time in this economy and your actions could have devastating consequences.  Some could lose their homes.  Money troubles at home are one of the leading causes of divorce.

At some point, you really need to look deeply at your company and take the hit.  It’s not the market, the economy, your products and or your employees who got you in to this mess.  As the leader of this ship, it’s your responsibility.

THERE IS HOPE – JUST FOLLOW MY LEAD!

So Mr./Ms. CEO, President, CFO, etc., all you have to do is look and I guarantee you’ll find ways to lower costs in your company – and do so without affecting quality.  In fact, you look in the right places and you’ll likely increase quality. 

I implore you to look at processes, not people.  I beg you to take the high ground here, the road less traveled, forget about headcount, get past the political BS your executives are telling you (remember they are scared of losing their jobs too).  Get out and speak with the lower level employees, and if you find one who is not too scared to tell you that really need to know (translation: the unfiltered truth), then listen. 

And finally, this is my challenge to you…

If you cannot find where to cut costs, then contact me and I’ll help you   I’ll choose two companies to do this for pro bono, (but only if you let me use the results of my help in a future column here).

Jim Gilbert is the President of Gilbert Direct Marketing, Inc., a full service catalog and direct marketing agency.  His linkedin profile can be viewed at http://www.linkedin.com/in/jimwgilbert., or email him: jimdirect@aol.com.

Two weeks ago we defined the four major touch points of communication (which I call the 4 crappy communicators) as:

1. What you’re thinking;

2. What you actually say;

3. What the other person hears; and

4. How the other person interprets what’s heard.

So what is the secret to being a great communicator?  Simple!

People who are excellent communicators make sure that what they say is interpreted correctly! 

Most people communicate to be heard, meaning that they are concerned that the person hears what they say. 

But there is one step beyond that as described in # 4 above, and it takes some training on the part of the speaker.  Next time you are speaking, watch the other person closely.  Did they get what you said, or are they just acknowledging your words.  With practice you’ll be able to notice some differences.  If you are not sure, ask the person you are speaking to, to mirror back what you said and see if you delivered successfully. 

Some of other traits of gifted communicators:

1.    They can be very animated.  They convey their meaning through movement, body language and even “hand signals” (like “air quotes” and such)

2.    They speak with intentionality.  They choose their words carefully, making sure that their words, like tools are the ones that leave no room for interpretation.

3.    They are very descriptive.  They use analogy, metaphors, anything they can to make their point (beware, too much of this can ruin a good conversation, watch to see if the person’s eyes glaze over when you are speaking)

There is one bucket of communicators that you don’t want to ever fall into - the person who speaks to hear themselves speak.  These people are not really concerned about people getting it, from what they say.  All they want to do is speak, to get it out, so they can feel satisfied that they communicated.  They forget to “look over there” when speaking, because their primary concern is to get the communication out; like if they say it, you’ll get it.  When dealing with those people, especially in business, make sure you be the better communicator.  Mirror back what they just said to you to make sure you get it fully.

Also remember communicating is a two way street.  Be an active listener and don’t just accept what you hear. 

Finally, as a listener, and interpreter of communication, beware of duplicity.  Remember, there are a lot of BS, subterfuge, and political agenda’s in business.  Know whom you are communicating with and adjust accordingly.  Make sure you listen past the BS so you can get to the real meaning.
Well that’s it for this week. 

Hope I delivered this communication effectively.  If you have any questions, feel free to ask. 

I can be reached at jimdirect@aol.com.

Jim Gilbert is the President of Gilbert Direct Marketing, Inc., a full service catalog and direct marketing agency.  His linkedin profile can be viewed at http://www.linkedin.com/in/jimwgilbert., or email him: jimdirect@aol.com.