Friday, September 18, 2009

What keeps me awake (Part 1)


In my dream, it's next year, sometime. Must be summer, because the grass is verdant and the sky has that deep blue that only happens in July or August.

I'm sitting with Someone Important at End-User X. We've been chatting about business in general, and then he hits me with it:

"You know, we stopped rewarding our key clients in October '08. Had to. Company was hemorrhaging money. Incentives were an "expense", and "expenses" got cut. Now here we are and we're still in business. Our customers and employees still like us."

"Why should we start doing it again?"


I was paralyzed--I searched for an answer, some pithy one-liner that would make Mr. Important realize the folly of doing without rewards and recognition, but I couldn't find it. I struggled to say something, but the words were frozen somewhere between my gut and my throat.

And then I woke up. At that moment I realized that the awake version of Pete didn't have an answer either. That's when I couldn't go back to sleep.

The market needs to find that answer, and quickly. A percentage of the end-user population sees us as an "expense" instead of an "investment", and the current downturn shows in stark relief what happens to "expenses" when things get tight.

Everyone says it's gonna get better. Everybody. And when it does, there will be an expectation that things will return to some point in the past. But if we cannot help our client base understand the difference between "investments" and "expenses" we may not see that change.

"Expenses" don't get reinstated--companies learn to live with less. My livelihood, and that of many others, depends of us coming up with the right words at the right time.

Sleep tight....


Pete

1 Comments:

Blogger Barb Hendrickson said...

But Pete, your dream assumes that what we've been preaching doesn't work in practice. Companies that stopped rewarding their clients, stopped promoting their products, stopped training and recognizing performance SHOULDN'T be doing as well as their competitors that continued these practices.

We should be armed with more than words when we visit with End-User X. Our industry has been "investing" in all kinds of research that documents the economic advantages of incentive programs in all their forms - we need to be sharing this info with our customers - those who are tempted to cancel programs and those who may have never used this strategy. It's logical that companies will cut back, and we should be guiding our customers to pick and choose the areas that will bring them the most return when/if the economy recovers. (And nothing is going back to what was -- we'll be finding a new "normal"...).

If companies can do just as well without all of the programs that our industry has to offer, we need to be re-thinking our profession -- or just have someone hold the pillow over our heads.

9:13 PM  

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