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    <td colspan="14" align="left" valign="top" bgcolor="#FFFFFF" ><h1>Four Dangerous Diversions Every Customer Educator Should Avoid.</h1>
      <!--#include virtual="/incl.sharethis.html" -->
      <p>TO: VP Customer and Professional Services<br>
FR: Mgr. Customer Education<br>
RE: Your Annoying and Unreasonable Demands</p>
      <p>Dear Boss, </p>
      <p>Get real! There's no way I'll commit to grow our customer 
        education business 20% next year - not when sales of the products 
        I'm supposed to support have tanked. You should kiss my feet 
        for just staying on the job, you unappreciative jerk.</p>
      <p>That's what you'd like to say.</p>
      <p>But you want to keep your job. So you acquiesce and decide 
        to forage around for education-related revenue streams that 
        aren't dependent on the success of your core software and 
        systems products business. Just watch out. Following are four 
        &quot;breakout&quot; opportunities that resourceful customer 
        educators frequently get seduced by -- and why they can get 
        you into trouble, big time.</p>
      <h2>1. Offer Your Customers Other People's Training</h2>
      <h4>If customer appetite for training on your core IT product 
        offerings has declined, why not reload with courses that may 
        address more timely customer training priorities. For instance:</h4>
      <ul>
        <li> Training on SW applications offered by your key alliance 
          partners</li>
        <li> Executive level seminars on leading edge IT topics User 
          and technical training on popular desktop applications</li>
        <li> Training on business skills like project management and 
          selling</li>
        <li> Training on all of the above -- in a one-stop-shopping 
          training portal</li>
      </ul>
      <p>After all, you already enjoy a warm relationship with your 
        customers. So surely they'll consider you for their other 
        training needs.</p>
      <p>Not so fast! Just because your customers are interested in 
        purchasing training on the above topics doesn't mean that 
        they'll buy it from you. Why buy a sales training course from 
        an IT company when you can buy it from a firm that specializes 
        in sales training? You've got a hard sell there -- particularly 
        since the folks who make decisions about sales training aren't 
        the same people who decide to purchase IT training.</p>
      <p>Don't count on selling your customers industry standard IT 
        technical and end user training, either. Chances are this 
        decision long ago migrated to a centralized training purchase 
        authority where you don't have any clout and that a pack of 
        piranha-like competitors has got there before you.</p>
      <p>As for selling the training offerings of your software alliance 
        partners, this may sound good in concept. But if your partner 
        has their own customer education function they will fight 
        like blazes to keep you from competing with them. And if you 
        win, you lose. Because you wind up with a tremendous learning 
        curve understanding the intricacies of their layered software 
        solution offset by a meager niche training revenue stream.</p>
      <p>High end seminars? It's always chancy for a technology provider 
        to try and sell intelligence on the state of the art. Folks 
        will figure you have an axe to grind. Plus you'll wind up 
        competing with consulting companies that are giving this expertise 
        away. What's more, the half life of these trendy topics is 
        extremely short. So you'll always be behind the curve in keeping 
        your courses up to date.</p>
      <p>Finally, for all of the above reasons -- and more -- don't 
        even think about trying to be a training portal. A number 
        of firms have tried to offer a one-stop training shopping 
        experience, and most have lived to regret it. See our &quot;Training 
        Superstore&quot; article in the back issue area of our Website 
        (<a href="090501.html">http://www.sellmoretraining.com/090501.html</a>)</p>
      <h2>2. Offer Your Training To Other People's Customers</h2>
      <h4>Chances are that 90% of the training you offer is specific 
        to your company's proprietary technology offerings. So you 
        can forget about selling it to firms that haven't already 
        purchased your software or hardware. But let's say that you 
        do have a few courses that could be easily repurposed to external 
        audiences -- for instance UNIX or Linux training -- or training 
        on IT project management skills. Why not give it a shot?</h4>
      <p>Here's why. Because gearing up to promote to and call on 
        other people's customers will cost you an arm and a leg.</p>
      <p>Most independent training companies spend 30% to 50% of revenue 
        on sales and marketing. In moving beyond the comfort of your 
        installed base, you'll have to do that too. Chances are you 
        only budget 5% or so for selling and marketing now. How will 
        your bottom line look minus 40 margin points? Book too much 
        of this kind of incremental revenue and you'll be in the poor 
        house for sure.</p>
      <h2>3. Sell The Tools You Use To Author, Deliver And Manage 
        Your Training</h2>
      <h4>It's tempting. You've developed a nifty authoring tool that 
        lets you turn around new courses in half the time -- or slick 
        <a href="http://www.cornerstoneondemand.com/lms-learning-management" target="_blank">learning management system software</a> to mastermind all of your delivery 
        channels. So why not put a price on them and sell them?</h4>
      <p>For the same reason that carpenters don't sell hammers, that's 
        why. When training companies start selling training tools 
        they wind up in a totally different business -- the software 
        business.</p>
      <p>Oops, the customer wants a feature your software doesn't 
        deliver. Oops, your software doesn't work in the client's 
        computing environment. Oops, your software has a bug in it. 
        Oops, you need a 24x7 help desk to field customer questions. 
        Oops, your software isn't compatible with the latest operating 
        system or Web browser. Oops, your software is a generation 
        behind and needs to be rewritten. Oops, the people you call 
        on to sell training courses don't make purchase decisions 
        on training software. It's not long before the oops and the 
        gotchas begin to mount up.</p>
      <p>So, who cares -- if sales are mounting up, too. Problem is, 
        they aren't. Few customers want to buy training tools and 
        infrastructure software from the same company they buy training 
        content from. They are looking for a content neutral solution, 
        and suspect a spin. What's more, there are dozens of independent 
        software vendors out there looking to eat your (and each other's) 
        lunch, and undistracted by the demands of supporting a training 
        content business.</p>
      <p>It gets worse. Training content people and training software 
        people tend to mix like oil and water. So you wind up with 
        two opposing cultures competing for resources.</p>
      <p>Maybe you will be successful in adding training software 
        to your learning content mix. If so, you'll be the first.</p>
      <h2>4. Become A Training Consulting And Customization Shop</h2>
      <h4>If your mainstay courses aren't selling, why not help customers 
        with their out-of-the-ordinary needs. Gear up your consulting 
        and customization capabilities and go after the workforce 
        retooling initiatives corporations are fond of undertaking 
        during periods of transition.</h4>
      <p>Some of these opportunities can scope out at $10 million 
        and more -- which can offset a lot of empty $1200 classroom 
        seats for sure. Plus, here's your chance to get even with 
        your professional services counterparts who have been grabbing 
        those juicy &quot;reskilling&quot; and &quot;change management&quot; 
        assignments all these years. Hey, we can do that!</p>
      <p>So you transfer in a dozen program managers your professional 
        services organization was about to lay off, pull your instructional 
        designers and media specialists off of core course development, 
        and hit the road after the Big Ones.</p>
      <p>Unfortunately, you're more likely to find Big Trouble. Here's 
        why:</p>
      <p>Trying to scope these one-off reskilling projects can be 
        next to impossible. Each time you think you've got a grip 
        on things, the client reorganizes their people and their priorities. 
        Accountability is lost in a maze of self-directed work teams. 
        Nobody can even agree who should sign the P.O.</p>
      <p>Soon you have ten $15-million proposals out there, hoping 
        that they don't all close at once. Then you worry than none 
        of them will close. Finally, one does. A fast food chain wants 
        to provide touch screen training to 10,000 short order cooks 
        on how to use a new high tech fryolator.</p>
      <p>Uh, oh. The program manager you assigned to the project badly 
        underestimated the dimension of the need. What's worse, the 
        project requires content and delivery expertise you don't 
        have on staff -- so you have to outsource it -- while your 
        own people sit idly on the bench.</p>
      <p>Soon you're missing delivery mileposts, wrestling with scope 
        creep and defending yourself against hate letters from your 
        new client to your CEO.</p>
      <p>And, providing you are able to deliver the goods without 
        totally losing your shirt, what have you got to show for it? 
        A project that did nothing to benefit your core software or 
        systems business, and that is both unrepeatable and non-transferable.</p>
      <p>It's no picnic being a customer education manager. But most 
        of the folks I know who run education consulting and customization 
        shops would gladly trade places with you.</p>
      <p>So, where does that leave you? How can you make your customer 
        education goals if the business units you are supporting are 
        in a funk? Here are a few ideas:</p>
      <p>a) Call on your software and systems business unit counterparts. 
        Offer to help them dig out of their current period of distress. 
        Explore imaginative ways to use education to help them win 
        new business and more deeply penetrate the installed base.</p>
      <p>b) If helping them offers you an uncertain financial reward, 
        try working out a creative quid pro quo. For help on how to 
        do this see &quot;<a href="/e-visory/032900b.asp">How To Take On Good Works Customer Education 
        Assignments Without Taking It In The P&amp;L</a>.&quot;</p>
      <p>c) Step up your customer education marketing programs and 
        campaigns directed at the installed base. For example, perhaps 
        you can offer a &quot;Level Two&quot; certification to try 
        and encourage IT professionals to go deeper into your curriculum.</p>
      <p>d) Consider reducing your cost base so you can achieve your 
        profit targets on flat or even reduced education revenues. 
        Everyone wants to be &quot;creative&quot; on the revenue generation 
        side. Challenge and reward your people for being equally creative 
        on the cost containment side.</p>
      <p>For customer educators, tough times are no time for dangerous 
        diversions. Instead, apply every ounce of your energy and 
        creativity to supporting your core business. You (and your 
        boss) will be glad you did!</p>
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Anon7 - 2021