What really matters?
and what doesn't...
One of the toughest to master, but unquestionably highest value skills in life, is learning to sort the important from the unimportant. Then, of course, having the discipline to focus on what really matters.
I was reminded of the power of this skill and the discipline to use it in reading Howard Mark’s most recent memo, What Really Matters?
So, I have unabashedly ripped off his title, and I will try to channel my best Howard Marks and render my version for the financial services sectors I serve.
My goal is to help you evaluate what matters to sales and marketing leaders. But, to get there, I think I need to walk you past what doesn’t matter.
🚫 What doesn’t matter: Short-term events
How much will the Fed raise rates? When will mortgage rates stop rising? Will there be, or are we in, a recession? How long will this last?
All of these fall into the category of things we can’t control, and even the powers that be (i.e., the Fed, Wall Street bankers, and politicians) don’t have a great track record.
Real estate, insurance, and lending will shape the market.
It could be slow and lumbering or whipsaw on the way to a new normal.
There are simply too many inputs, contributing factors, and unintended consequences to make short-term predictions and position for any competitive advantage.
Is there anything in this data that will make you do something differently? Should you?
🚫 What doesn’t matter: Market psychology
Lots of folks are telling you what consumers should be thinking and doing.
Often they are wrong.
One of the worst things you can do is to go into the market with a message or strategy shaped by CNBC or other market squawk boxes. This is entertainment spun around macro-trends by market-makers and economists, not empirical data coming from your customers.
Your best bet is to educate, inform, and respond to your audience — your micro-market. These are the folks in your CRM, on your email list, and following you on social platforms (e.g., Facebook, Linkedin, YouTube, TikTok 🙄).
You don’t have an audience?
We’ll immediately put that on your TODO list, and then we’ll discuss this further down the page.
🚫 What doesn’t matter: Short-term sales and marketing performance
This one will be controversial, but might be the most important.
When the market is in transition, customers become paralyzed.
It might not even be bad advice.
What is the right thing to do? In many cases, haste makes waste, as the adage goes.
Your standard performance metrics (e.g., applications, units, revenue) will suck. Customers are all playing the wait-and-see game. And pushing harder is only going to push them away.
Put these metrics on hold or shift them to activity benchmarks.
Setting expectations around activity might be more appropriate to encourage sales agents and marketing folks to stay in the market without turning on the boiler room tactics.
We want to make (useful and interesting) noise that keeps customers tuned in.
🚫 What doesn’t matter: Forecasting
One of the most common reactions to market challenges is to begin forecasting.
Note that publicly traded companies often suspend forecasts during volatile markets. They’re telling the market honestly and transparently that we don’t know what to expect in this market environment.
When we forecast in uncertain markets, we’re tricking ourselves into an alternate reality. One that is often idealized.
This can be particularly dangerous if you begin to operate consistently with the assumptions in your forecasts.
Instead, it’s better to be pragmatic and reactive as markets transition.
✅ So what does matter?
What really matters in a transition is to shift your focal point from near to far.
Let me take you into the cockpit to explain this point.
When you’re landing a plane, you pick an aim point near the threshold of the runway, and you hold that fixed in the windshield as you descend on your final approach.
But, as you approach that aim point and go into the flare (transition), you shift your focal point to the end of the runway. This gives you a nice soft passenger pleasing landing.
We’re in transition.
It’s time to shift your focal point to what you need to be doing to be a top performer over the next five to ten years (or more).
I think you will be more successful if you focus on blocking and tackling — systems, data, sales enablement, and resource management.
You should:
scale your sales and marketing resources with automation;
create consistent and responsive customer experiences with automation;
design intentional sales operations — sales processes that execute with fidelity and generate activity data that can be analyzed for opportunities;
turn your sales operations data into a competitive advantage;
give your sales agents the A/ML technology to prioritize leads and activities using predictive models and values;
invest in content — you’re experts; act like it; publish unique insights into the market, products, and strategies to help customers sort through the confusion and gain trust;
expect your sales agents to be expert advisors, and support them in that pursuit;
turn your customer and portfolio database(s) into your primary lead source.
Asymmetry should be your word for 2023
In one last homage to Howard Mark’s memorandum, I will close in the same way he did — discussing Asymmetry.
The big winners on the other side of this messy market will be asymmetrical to the larger market. They will not look like their competitors.
Asymmetry reflects exceptional skill.
There’s a reason unicorn startups rise out of recessions, and Quicken Loans rocketed past traditional retail mortgage operations with their unique consumer-direct approach.
What does asymmetry look like?
Marketing that is growing your in-house customer database — leads and subscribers,
Sales agents that are having more substantive conversations than their peers,
Companies serving their portfolio and new customers with innovative experiences and products that engage a more diverse range of needs.
What matters?
Gaining the exceptional skill and insights that allow you to shift your focal point down the runway and the guts to make that transition.