The Basics of Marketing, how to avoid the “What were they thinking” Moments

The Basics of Marketing, How to Avoid the “What were they thinking” Moments

Guest writer Bonnie Feigenbaum introduces her lecture series with this debut blog post: The Basics of Marketing, how to avoid the “What were they thinking” Moments.

Marketing is all about creating a connection between your company and your customer, a permanent place in their lives for your product and a permanent place in their heart for your brand.  In 1971, as a very young child I remember belting “I’d like to teach the world to sing in perfect harmony, I’d like to buy the world a coke and keep them company… “learning the iconic Coca-Cola Hillside singers’ ad by heart.  The ad was so popular that Coca Cola had Hilltop Reunion in 1990 and brought back the singers to recreate the commercial. 

There are many times I watch marketing campaigns roll out and wondered who was the marketing genius who came up with that! For example, McDonald’s does so many customer connection points right and really raised the bar on creativity in my mind when they launched their pizza line in 1989. The traditional golden arches were angled to make the Zs in pizza to communicate with one picture and one word that this is McDonald’s Pizza, a logo within a logo.

In 2018, I was intrigued by Nike’s decision to use Colin Kaepernick as their brand ambassador. I read the article by the Montreal Gazette columnist Scott Stinson, “Nike stands with a bet that outcry from Trump and his allies won’t cost them business.”   Kaepernick choose to “take a knee” using the moment of the U.S. national anthem to protest racial injustice and lost his football career in the process. The US was sharply divided on whether Kaepernick protesting during the anthem was disrespecting the flag. Nike, it would seem, was placing a large bet on the support their target market has for the issue and on Kaepernick’s sacrifice connecting with them.   Would the tagline, “Believe in something.  Even if it means sacrificing everything” resonate?

Nike’s choice did create a social media fervor as some more ardent opponents of their choice of influencer created a boycott hashtag and posted videos of them burning their own Nike shoes, socks and carving the Nike swoosh out of their garments. I would like you to remember one thing these people already paid for the products. Nike already had their money. The only person who was losing was them, as they had to spend money to replace the martyred items. Ironically, putting in practice the Nike/Kaepernick tagline. Nike did their research right, sales increased in the wake of the controversial advertising campaign, with online sales growing by 31% in the holiday weekend after the ad launched, according to researcher Edison Trends.

However, there are other times where I wonder to myself, what were they thinking and how did nobody throughout the whole creative and control process clue into the customer disconnect.

Let us go through some of my favorite fails

Urbn Outfitter was founded in Philadelphia in 1970 and is an international clothing corporation that has retail stores located in Montreal.  My fashion marketing students were trying to determine why there was a significant decrease in sales over the past year.  The Urbn Outfitter store brand sales were declining while the parent corporation’s other brands Anthropologie and Free People’s net sales had increased by 2% and 5% respectively at the same time. Through research the students were able to prove that in general the retail sales for the target demographic had been enjoying a continuous increase in revenue. So, what was the problem?

They investigated further and discovered that the year earlier Urbn Outfitter had launched controversial clothing lines featuring edgy and questionable mental health and body shaming crop tops with messaging like “depressed” and “eat less” while their direct competitor, Forever 21 T-shirts proclaimed positivity with “eat more” and “love yourself” on their tops.

 

We also discovered that some of their product line choices left a lot to be desired.  There was a Kent State University sweatshirt with blood spatters on it, a black and white horizontal striped T shirt with a 6-point yellow star on it reminiscent of the Holocaust and T-shirts in a colour Urban Outfitter identified as “Obama black”.  For the life of me I cannot understand how these items got through the approval process.

 

Another example of product fails because the company did not even think to take the customer reaction into account is Simons, a Quebec retailer. In September 2018, Simons launched a line of bralettes, a type of women’s lingerie. The story goes that when the Simons team was looking for a vision for their new lingerie line, they looked at inspiring Canadian women that were respected and admired. The line was meant to honour women who made historic contributions to Canada. The bralettes were called the Elsie, the Clara, the Nellie and the Beverley. So, while the last names were never used, the ad copy made it clear that the designs were inspired by aeronautical engineer Elsie MacGill, trailblazing lawyer Clara Brett Martin, suffragette and politician Nellie McClung and jurist Beverley McLachlin, the first woman to be appointed Chief Justice of the Supreme Court of Canada. 

Now Simon’s never sought permission from the estates of the first three women to use their names or even to ask if they wanted to be bralette brand ambassadors. Nor did they ask the sole living “honoree,” the Right Honourable Beverley McLachlin who had just retired in December after spending 28 years at the Supreme Court including almost eighteen as Chief Justice.

After receiving a call from McLachlin, the president Peter Simons, immediately gave in to her demands for her a public apology and a request to get involved with fund raising campaign for the Cornerstone Housing for women emergency shelter organization in Ottawa.

 

In his apology, he stated that he sincerely regretted the naming mishap citing the lack of judgment on his part and that they decided to discontinue and destroy all materials related to the line following the call. During the media storm, I wondered where were the women in the room?  I noticed a line in one article, “Simons apologizes for bra named after former chief justice Beverley McLachlin,” by Tara Deschamps of the Canadian Press where Simons acknowledges that there is a deficiency in their corporate culture, a lack a comfort of the staff to stand up and express concerns.

That is what my basics of marketing series is all about.  I will give every employee the tools to spot the potential problems and recognize the opportunities to improve the customer experience.  But it is up to the management in the company to embed that into the corporate culture, empowering their employees to put customer connections above corporate politics.

We will start by reviewing the marketing process which is a good opportunity to show a relationship between several concepts we will be discussing, during the lecture series. During the first half of the series, I will focus on introducing marketing, the marketing environment and then market research. I will explain how we use the secondary data to develop marketing information systems. We will then delve into Consumer Buying Behaviour, comparing it with Business and Institutional Buyers’ Behaviour. We will then discuss the segmentation and positioning process that work in conjunction with the company’s marketing strategy. We will also cover the marketing mix, where we implement our strategy using our 4 Ps-Product, Price, Place & Promotion. In our final lecture, we will put it all together and discuss how to prepare the full marketing plan.

I look forward to helping you discover the full potential and powers of a full formed marketing process for your company.

If you have any questions or comments, please feel free to contact me by e-mail at bfeigenbaum@sympatico.ca.

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Lifelong Learners

Lifelong Learners

In this week’s blog on education, curriculum designer and writer Caroline Slee-Poulos shares the big picture of why we do what we do: lifelong learners.

In education, we like to express the most important goal of any classroom as creating lifelong learners. This takes shape in different ways at different ages. At the younger ages, it is obviously the standard reading, writing, and arithmetic. As adults, it becomes a bit more complex,

We have to ask about goals and the big picture when it comes to adults. As adults, we want to move forward: we want promotions; pay bumps; increases in job title.

I would posit that what we really seek is GROWTH.

Realistically, growth is what we all seek.

As employers, we want hires who know the business. We are noticing that students are not graduating school with the necessary skills for the business. Trade skills are in short supply and require more education than the standard K-12 that is available to students today. Funding at the high school level for the trades has been reduced to a point where students are graduating high school without the necessary skills for our industry.

Take our industry out of the equation.

What does it say about us that our graduates are not prepared for the world of technical work?

I think it says that we are in a situation of catching up. Academics are not quite at the point we need them to be when it comes to “work ready” employees. We can’t expect high school graduates to know everything they need to know when they graduate high school. The reality is, if you invest in your people, they will invest in you.

What we want to see at every level are people committed to learning. This doesn’t mean the stereotypes of the ivory tower. This means having people who consistently strive to better themselves, who push for higher levels of understanding and accomplishment.

At the end of the day, education is all about creating the foundation that leads to lifelong learning. Lifelong learners are known for consistently striving to better their performance and their results.

Aren’t lifelong learners what you want to see in your business?

As Ron would tell you, the time is now. When it comes to your commitment to learning, I would posit that the time is always.

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The Importance of Service

The Importance of Service

Guest writer Mets Kramer is back with a new blog post for us. Read on to learn about The Importance of Service.

Over the past few months, I’ve been travelling to visit numerous dealers all over the US and Canada. During my visits we tend to have long conversations on the state of the equipment market. Everyone agrees it’s been a challenging time and wild ride. Many have never seen such lofty heights, prices and volumes. Machines were both in demand and hard to get and many have had some of the best years. Rental has been strong and many have preferred to rent than sell or buy. One other thing that everyone has in common is a concern about when the music will slow down or stop.  

It’s this unknown future and concern about slowing machine sales that reminded me of my experiences in 2008. In April 2008 I had just joined Terex to help develop the service operations of the new construction equipment group. I was excited to work with my new colleagues and change the organization into a full operating manufacturer.  

Yet, no sooner had I started, then the recession (read collapse) happened in the market. Over a few short months some of the group companies saw a drop of up to 85% in sales. At the same time, I kept in contact with past colleagues at other dealers. There I heard the same, machine sales, regardless of make were down significantly. “But”, they said “The shop is really busy”. It turned out that even with a clifflike drop in sales, people were still out working their equipment.  Furthermore, as the recession continued, more machines came in for major work in place of replacement.  

So here we are again, this time more able to see the economy changing and many dealers are in the same place. Many have not focused over the past years on developing their service business.  This could mean activities including, understanding their currently market share, developing service products or changing the type of work their shop is engaged in. It’s understandable why many dealers have not done this. It’s been a busy time of turning around rental machines or prepping sales machines. Plus, technicians are hard to find and not cheap.  

Yet there is one statement that we have all heard: “Sales sells the first, Service sells the rest”.

With a slow down likely or imminent, now is a great time to start planning what you can do to develop your service business, support your existing customers and deepen your relationships with customers.  

First, understand where you are now. This can be looked at through several traditional metrics but requires some analysis of your business data. Try and find parts and service sales data both by customer and by machine serial number. Group them into behaviors that define your customers.  Consider parts sold through parts, and parts through service. Measure the balance of your labor sales, internal, customer pay or other. You can look at sales vs inventory and so many more. By analyzing this data, you should be able to group your customers, understand what machines generate the most revenue and what percentage of the product support market you’re capturing.   

Second, consider service and parts volume as a measure of engagement. Just like we talk about digital engagement, after sales volumes are a measure of how involved you are with your customers. If you’re not supporting them who is? If someone else is supporting them, are they in a better position to get equipment rentals or sales when customers have more choice during an economic slowdown?

Third, when you understand the situation, develop parts and service products to match the opportunities you’re seeing. Many of these strategies are tried and true and we all know them, like PM filter kits. Personally, I think one of the best programs is a PM program. Why? Because no one really likes doing them, yet they must be done. PMs also bring value and get you a touch point with customers every 250 or 500 hours. A good PM program also lets you measure how much your customers are using their fleets. Are they continuing to work? Are they busy? Parked?   A PM program will give you insight and opportunity to talk to your customer, even when they don’t have any need to buy equipment. During a downturn your sales reps are equipment and fleet managers!

When you do start a PM program here are some rules  

  1. Don’t leave it to your customer to call you! Find a method to monitor all the equipment.  Many machines have telematics from factory, others can be retrofit with hardware for minimal cost. Include it in the cost. Leaving it to the customer increases the likelihood they never call. You are providing a service, make it full service
  2. If possible, set up hourly based PM programs that charge the customer a per hour rate.  Yes, it’s a little more work to run invoices monthly for customers, BUT it builds up a pool of money that will encourage your customer to make sure you do the work. If they pay per service completed, they also have incentive to stop. It also fits their usage, if it’s parked, the PM program costs them no money. 
  3. Follow up! Make sure you use inspection software on every service, take pictures, make notes and come back to your customer with what you found. This shows you’re a great business partner and gets you extra work.  

Finally, developing your service business has one other really important benefit, it keeps your techs working. One of the worst outcomes of a downturn is losing (through layoffs) the people you need to count on when you get busy again in sales. Developing a service program lets you retain your talent and possibly even pick up some new talent. 

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People Don’t Resist Change

People Don’t Resist Change

Guest writer Sarah Hanks deconstructs the challenges of change in the workplace in her blog post for this week: People Don’t Resist Change.

“People don’t resist change. They resist being changed!” Peter Senge

 

On Monday, I was delighted to have the luxury of being a guest on the Industry 4.0 LinkedIn Live to discuss the learnings from success and failures. While the interview was pre-planned a question was asked that surprised me, “You stated that you’ve been doing digital transformation for a decade. What is different now than what you saw then?”

A few years ago, my team was implementing a shop floor quality system. One of my husband’s colleagues was complaining about the IT system that my team was deploying. He called me and I went down to the shop floor during my lunch break. In the conversation with the employee, I learned how frustrating it was to add cycle time to their data input and he didn’t understand the purpose. That single conversation led me to adapt the deployment strategy.

I explained that the goal was to connect the quality process from supplier to customer and drive a systematic improvement to quality. I also shared the link to collect feedback. The implementation went smoother, and the inspector provided feedback. This feedback was included in the future design, making the system better for everyone. When the application was expanded into other areas of the factory, I had several conversations with every employee on every shift. 

Throughout the following years, the end user’s adoption and support has become a top priority. Here are 5 tips that I’ve adopted into my process:

5 Tips for Frontline Team Buy-In

  1. Know the problem
  2. Prioritize a user-friendly interface
  3. Explain the why to everyone
  4. Create a feedback loop
  5. Celebrate wins as a team

Let’s look at each element:

Know the problem. 

Understanding the problem that the technology solves

is important. With the ever-changing technology and continued focus on Industry 4.0, it is easy to get sucked into the popular thing to do. Connecting sensors to machines alone does not add value. However, using those sensors to prevent unplanned downtime is both value-add and it is measurable, as an example.

Prioritize a user-friendly interface. 

Training is a cost to a business. If the user interface is easy to learn, the cost to train the employees decreases considerably. We don’t take hours of training to learn Facebook and shop floor applications should be the same. 

Explain the why to everyone. 

Take the time to have a conversation on the why with every employee. In my experience, these conversations help team members understand the value, ask questions and connect with the project.

Create a feedback loop. 

Collect feedback from everyone and let them participate directly in the journey. Don’t forget to follow up, whether the idea is incorporated or not. Communicate ideas that have been accepted broadly.

Celebrate wins as a team. 

Select a target, such as # of records, # of clicks, or length of time and connect it to a reward. Even a simple pizza party can help continue motivating people through the change.

In summary, the frontline team members are an important consideration in a digital transformation journey. Providing a purpose and easy to use solutions will allow the successful implementation of your digital transformation strategies, and achieve the estimated ROI.

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Global skills shortage and how to solve the problem of a tight market?

Global skills shortage and how to solve the problem of a tight market?

Guest writer Sonya Law tackles a topic that is plaguing every industry write now: the global skills shortage, and how to solve the problem of a tight market. 

“Be an organisation who truly understands what candidates want and values will put you ahead of the pack.  Before you try to fix the talent shortage problem, be clear about your EVP (Employee Value Proposition)and how the conversation will go with prospective candidates.  Work strategically and in partnership with your Talent Acquisition (TA) teams and vendors to solve this problem together.  Organisations who do this well, will secure top talent now and in the future”

The problems we are facing globally are not new in staffing organisations what is new is what candidates prioritise as important.  Candidates know their value in the market and are now going after what they want, we need to be both tactical and strategic on how we do this.

This shift is largely because of the pandemic and is also stress driven, those experiencing burnout are opting for roles where they can work remotely and less hours.  Other considerations are there needs to be investment into management training on how we engage our remote workforce.  

  1. Competitive Salary – Candidates know their worth in the market. Employees who are not being valued and remunerated to that level are also weighing up their options of whether to stay or go.  These conversations need to be taken seriously and acted on and be part of the system of work.
  2. EVP – Benefits are important to candidates in their evaluation of prospective employers.  What is important to the effectiveness of these programs is that they are communicated to candidates. Use of social media and particularly videos and organizational story telling are powerful tools in communicating the benefits of working with an organization.
  3. Flexibility – Post Pandemic candidates expect flexible, hybrid work options and opportunity to negotiate where, when and how work gets done. It is different for everyone and is not a one size fits all approach.
  4. Psychologically safe workplaces – Candidates want to work for organization’s who support mental health and wellbeing is important, who create space and awareness for those conversations is important. Fostering ability to have mental health conversations. Progressive organizations are investing in MHFA (Mental Health First Aid) training and removing the stigma by educating and supporting leaders on how to have supportive mental health conversations.
  5. Purpose, Vision, Values lead organization – Important to candidates is alignment between personal and organizational ‘purpose’ driven statements.  When recruiters can have a conversation with candidates about ‘purpose’ attraction and retention of that candidate throughout the life cycle of the hire improves exponentially.  It also serves to mitigate risks of offers from other prospective employers, when you have built that trust with the candidate.  It is very time consuming and exhausting for a candidate to engage with multiple job offers, if you have built a good relationship, they will happily deal with you to the exclusion of others when this is achieved.
  6. Diversity is not just a token – Lean in, listen and learn.  Organisations who do this well will differentiate themselves from other job opportunities.  Be ready and prepared to have conversations about social impact and CSR (corporate social responsibility) in the interview process, give examples of where this is happening in your organization.
  7. Innovation – Organizations who are focused on Innovation and who have adopted innovative approach like design thinking will be ahead of the game. 
  8. Giving and receiving feedback – radical candor does not work its brutal, we still are not doing this well.  Feedback needs to be timely, specific, constructive and respectful and is more likely to be taken onboard from someone we trust.  Candidates appreciate feedback and not being ghosted by HR and recruiters; we need to improve in this area.  This sets a tone for how feedback is handled within your organization. There is a direct link between proactive and constructive feedback, for increased opportunities for learning, internal promotions and remuneration conversations.  Feedback is important.
  9. Fear of failure – Optimistic organizations thrive when it comes to innovation, recognise that failure is part of learning.  It’s an iterative process, what’s important is implementing a learning culture and growth mindset approach. We need to create an environment where employees can practice new skills without the fear of failure.
  10. Developing leaders – to build their emotional intelligence and to see themselves as a coach and to set them up for success to manage a remote workforce.  Also, the democratization of learning where learning is valued and encouraged at every level.  A culture that promotes that everyone is a leader in their ability to influence at every level.  To foster collaboration and involve the team in what they focus on, and their goals will lead to better outcomes. Employees are more likely to take ownership of a goal when they’re involved and take responsibility for their success. 

How well we do in these areas will define the success in attracting and retaining talent in a tight market now and in the future.  

‘Take care of your people and they will take care of business’ Sonya Law.

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The Key to Equipment Dealer Marketing: Use the Right Lead Sources

The Key to Equipment Dealer Marketing: Use the Right Lead Sources

Guest writer Debbie Frakes reviews the importance of generating leads in multiple ways in this week’s blog post, “The Key to Equipment Dealer Marketing: Use the Right Lead Sources.”

The only way for equipment dealers to achieve consistent success is by having a steady stream of new leads coming in through the door. If an equipment dealership doesn’t have that, then your business will slow and eventually cease to be successful. That means you have to find productive, reliable lead sources for your sales reps to focus on. 

The most important lead sources for equipment dealer marketing and sales 

When it comes to determining the best lead sources for your sales reps, the key thing to remember is that it’s not all about new prospects. You also have a wealth of leads for your reps to reach out to from current and past customers. Here are a few of the ones you should focus on to improve your sales and equipment dealer marketing.

Email open reports 

Emails are essential for any marketing strategy, because they remind customers and prospects of all your products and services, and they can encourage them to purchase. When it comes to lead sources, emails are also a very valuable tool. Your sales reps should be reaching out to recipients who have opened and clicked on your emails. They can even tailor their sales message to what the customer or prospect may be interested in, based on which section of the email they clicked.

Last purchase reports 

Last purchase reports are an excellent resource for sales reps to find leads to contact. They should be regularly calling anyone who hasn’t purchased something from you in an average time period for your industry and market. 

Customers from different parts of the dealer business 

Equipment dealers are actually several different businesses rolled up into one. Critical for your success is to link them together and make sure your various departments are sharing leads with one another. For example, if one of your customers comes in for parts, they can become a lead for the service, rental, and equipment sales sides of your operation. Your sales reps should be reaching out and offering to fulfill all of your customers’ needs! 

Your website 

A lead generating website is important for equipment dealer marketing strategy. Your site should make it simple for leads to give you their information, ask you a question, or sign up to receive emails. Once they have the lead’s contact information, a sales rep can then reach out to them, answer any questions they asked, and ask them if all of their equipment needs are currently being fulfilled. 

Lead generation should be a constant activity 

Your business requires new leads, and using the most productive lead sources is the best way to bring them in. At Winsby, we help equipment dealers develop and implement successful lead generation plans using proven strategies. By combining effective emails with professional, easy to use websites, email list verification, calling, and reporting, we can help ensure a steady stream of new business. 

Contact Winsby Today.

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Hire Slow and Wait… Just a Minute Before You Fire Fast

Hire Slow and Wait… Just a Minute Before You Fire Fast

Guest writer Floyd Jerkins walks us through the process of hiring and firing in a way that transcends industries in Hire Slow and Wait… Just a Minute Before You Fire Fast.

If you’re responsible for direct reports, then you’ve heard the hire slow and fire fast statement. Yea, you may have even heard that from me over the years. Before you actually pull the trigger, I’d like to ask you to consider a few things.

Should Management Be Fired First?

I am a huge proponent that you make sure that management has done their jobs right before firing someone. Firing someone who’s had a poor manager or having been managed by a poor set of systems and processes is like knowing your car is nearly out of gas and getting on a turnpike and blaming someone else for not putting gas in the car. It’s a recipe for failure and disappointment. Who’s really responsible?

In assessing an organization, I would interview key employees. One of the questions centered around their understanding of their job description. I was always curious to learn how close the description is to what they really do. It was alarming how many employees didn’t have one or if they did, it didn’t relate to their job functions.

Accurate Job Descriptions and Orientation Steps

One of the very basics is to have a current job description that properly matches what you want the employee to do. This is a guidepost to not only their performance but setting expectations. It is also the baseline of a performance review.

The start of creating a good or even great employee is when they are new. In the interview, you may have said how great your company is and how well everyone gets along. As soon as the new employee is unleashed into your business, the realities are exposed. Old employees will tell new ones the strangest things.

Make sure the new employee receives a proper orientation. They are already dealing with a new job, a new way to drive to work, and a host of other issues. Make it easy for them to assimilate into the business. Show them the lay of the land. Introduce them to all the key players. You might even consider not having them perform in the role until they get settled in.

Every new hire needs to be frequently evaluated. You want to make course corrections early on, so you do not allow bad habits to settle in. Also, be cautious about the volume of pointing out the negatives. You have to find successes and highlight the positive behaviors to help with the new hire’s phycological aspects.

In the orientation, offer a dedicated systemic feedback system. Depending on your cultural issues, this needs to be in a formal and informal style. What you want to create is an open communication process where this employee can ask questions or verify certain systems or procedures.

Was there enough coaching to bring them along? Did we hire them for the wrong position, and could they be better doing something else for us? Should we set them free? All these kinds of questions need to be asked before you fire.

Why Did You Wait to Fire Someone?

Normally, when you decide to let someone go, it’s came after a long time of evaluating and talking, and well, it can become exhausting. If you think you should have fired someone months ago, you are probably right. Why didn’t you? Did you think that there would be some miracle?

Firing fast is all about making the decisions you should have made. But it should always come after you’ve made an honest evaluation of whether or not the management team has done their jobs right. 

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Your Customer Retention Rate Is Your Future Growth

Your Customer Retention Rate Is Your Future Growth 

Guest writer Debbie Frakes tackles the all-important topic of customer retention in her blog post this week, “Your Customer Retention Rate Is Your Future Growth.” We are often encouraged to attract new customers and can overlook the value of keeping customers for life. At Learning Without Scars, we can’t emphasize this enough. It’s so important to us, we have an entire class on the subject!

Finding new customers is great for business—they help you boost your sales and generate more revenue. However, retaining existing customers is even more important. Machinery dealers know that it is far more expensive to locate new customers than it is to keep the ones they already have. Although we all understand the concept, not all dealers actually use programs designed specifically to keep and develop their customers. 

In this post we’re going to cover the six key retention drivers for growing your business: 

  1. Retain Customers with a Satisfaction Program for continuous improvement 
  2. Customer Internal Referrals more than double transactions each year 
  3. Lead Flow with the right customers in the markets and industries you support 
  4. Convert prospects predictably by selling what they purchase most often and saying “Yes” 
  5. Engage your customers with consistent contact 
  6. Measure and Forecast results

What is a customer retention rate? 

Customer retention refers to the rate at which customers stay with your company for a specific period. The average customer retention of an equipment dealer business is 95.5% per month. Although that may sound very high, what that number actually means is that you are losing 4.5% of your customers each month. Over the entire year, you lose 54% of your customers! 

On average, equipment dealers lose 51% of their customers each year. Only 29% of customers are retained for 3 or more years. Even though it looks like you are retaining most of your customers each month, you’re actually losing more than half of them throughout the entire year. And that pattern just makes business more difficult long term. 

On the other hand, an improvement in your customer retention rate of just 1% each month represents a 12% increase in annual growth. The question is, how can you make that improvement? 

How to boost your customer retention rate: a customer satisfaction survey

One of the best ways to improve your customer retention rate is to conduct customer satisfaction surveys. When they are conducted by a third party, these surveys allow you to learn about your customers and determine any issues before they turn into big problems. It’s important to have them completed by a third party, because customers tend to be more honest about a company if they’re not talking to someone from the company.

A customer satisfaction survey will help you understand your customers’ perspectives, why unhappy ones are unhappy, and how to serve them better. Plus, you’ll impress them by showing how proactive you are. 

Using Winsby’s customer satisfaction survey program, our clients have seen 20% higher retention, 49% more customers, and 123% greater revenue growth over 5 years compared to those who are not using the program. 

Customer internal referrals 

Focusing on customer referrals means making sure your customers are buying everything from you—parts, service, rentals and equipment. Equipment dealers have multiple departments that are almost like different businesses. The good part about that, though, is that a customer can come in for a part, and then they become a potential customer for the service or equipment. The more they purchase from you, the better your customer retention rate will be. 

How can you increase internal referrals? 

  • Understand customers’ expectations— turnaround time for parts and equipment deliveries and service protocols. 
  • Then, you can meet expectations, or manage them if meeting them isn’t possible. 
  • Always call the customer with updates before they contact you.

Ensure you have a consistent lead flow 

Another critical piece of improving your customer retention rate is properly managing your lead flow. Your sales reps need to identify customers at risk consistently, then contact and engage them. At risk customers are current customers that you’re in danger of losing. These are people who start purchasing less and less from you, and eventually they could go to one of your competitors. Customers that are at risk typically haven’t purchased from you in over eight weeks. By reaching out to them, you can encourage them to come back to you to fulfill their needs. 

Engage your customers and convert prospects

You should also be regularly sending out emails to your customers and prospects. In our experience, customers on an email list buy two to three times more often than those who are not receiving marketing emails. By putting your brand, products, and services in front of customers, you’ll stay top of mind and your retention rate will increase. 

First, call customers and prospects to confirm decision makers’ emails to expand your list and keep it current. Then, send emails at least twice a month and show all your capabilities: parts, service, rentals, new and used equipment. It’s also important to identify your website visitors. Distribute leads who engage with your emails or website to your sales reps automatically to reach out to and determine what they need. 

Plus, when you engage with customers, always answer your phone and always say “YES!”

Measure and forecast 

It’s important to look at your past to predict your future. When it comes to improving your customer retention rate and achieving consistent growth, you have to have an idea of where you’re at and where you’re headed. At Winsby, we forecast the growth of Active Accounts for the next 12 months, based on patterns during the past 36+ months, by branch and by department. You’ll learn:

  • Expected losses and gains of Customers
  • Expected number of transactions
  • Expected revenue

You can then use the forecast to develop a plan of the action to take to improve your customer retention rate.

Conclusion 

Retaining your existing customers is just as important (if not more important) than gaining new ones. Use all the tools at your disposal: customer satisfaction surveys, internal referrals, email marketing, consistent lead follow up, and always trying to say “yes” to your customers. 

If you want to increase your customer retention rate and take advantage of all your possible tools, then contact Winsby today! We’ll help you implement a plan quickly. Contact Winsby Today.

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Construction Equipment Used Parts

Construction Equipment Used Parts

Guest writer Alex Weaver writes this blog post tonight on the topic of Construction Equipment Used Parts.

Construction Equipment Used Parts is similar, in some ways, to the automobile or on-highway truck salvage business. A core is purchased for salvage, disassembled, parts are evaluated for inventory, and some parts and components are repaired or rebuilt and sold. The business was created out of a need or demand for additional price points in the construction equipment replacement parts business.  

A successful Used Parts business contributes to overall company goals. Assume, a company has the following high-level goals:  Financial Performance, Market Share, Customer Satisfaction, Employee Satisfaction. Used Parts impacts these goals in the following order. Customer Satisfaction first, Financial Performance second and Market Share third.

Used Parts increases Customer Satisfaction by providing additional price points, and in some cases parts availability. Today, parts availability is not as certain as years past. In fact, some very large consumers of parts have created their own internal used parts operation to support parts availability needs. To insure they have the parts they need when they need them. Customer Satisfaction or loyalty positively impacts market share. Used Parts can impact financial performance by adding a revenue and profit stream for the seller. Used Parts can increase customer loyalty. Used Parts, also, contributes to harvesting a greater share of a customer’s wallet.  

History

The Construction Equipment Used Parts business got its start in the late 1940’s and early 1950’s.  Enterprising entrepreneurs purchased U. S. government surplus war material from World War II   Primarily half–tracks. An armored truck, mated with a rugged bogie and track suspension system in the rear, allowed foot soldiers to quickly move with modern, mechanized attack forces. In civilian life, many found homes in large farms and ranches as a way to deliver feed and hay bales to herds scattered across many acres.  Some 12,499 M3 half-tracks were built by White, Autocar, and Diamond T during World War II.  The track bogie’s required replacement parts and cannibalizing other units became the best, easiest source. The companies that started here, gravitated toward other track type units. And, thus, an industry was born.

As the construction equipment product lines expanded, so did the demand for used parts and components. Product improvements obsoleted older technologies. From Mechanical systems to oil lubrication, hydraulics, electrical, and electronic. Dry clutch to oil clutch, Gasoline Starting Engine to Direct Electric start, Manual transmission to PowerShift, Cable lift system for dozer to hydraulic. Operator Environment – from no operator protection to Air Conditioned, Enclosed Roll Over Protection. Every step of the way, used parts provided opportunity. And, that opportunity continues today.  

Growth & Change – Scope and Scale

The transition from Half-Tracks continues. The number of construction equipment manufacturers has increased. The numbers of product lines and models has increased.

Heavier, bigger machine products as well as compact construction equipment. Many smaller models, and as a result many more customers. The construction equipment market now includes global manufacturers and distribution.  

Some products are now obsolete or out of production. But the original products/machines are still operating. Elevating Tractor – Scrapers, like Caterpillar, 613/615.  The used parts business helps keep these machines running.

It all adds up to used parts opportunity.

Operations

Used Parts can take a lot of real estate. Or not. Some combination of Core (a machine to tear down) storage, warehouse storage and physical space dedicated to core disassembly and parts inspection. Plus, space for counter sales. Some customers want to “kick the tires” or look at what they are purchasing before they purchase. Which means public access to the used parts operations.

In today’s world, there are environmental considerations. How do you wash/clean a core before dis-assembly? How do you capture the waste fluids from a core? 

Environmental Impact

In 1976, Congress passed the Resource Conservation and Recovery Act to increase recycling and conservation efforts as waste became a bigger problem. It is estimated that the slogan “reduce, reuse, recycle” was born at this time. The used parts business is a positive contributor to environmental opportunity. Used Parts maximizes the use of original material.  Reduce/Reuse/Recycle and now Repurpose are all in the used parts “wheelhouse”.

Accounting

Many used parts operations, assign or breakdown the purchase cost of a parts machine, to some larger, higher demand parts or components and value the “by-products “at estimated scrap value. Slower moving inventory is not overvalued. In some cases, the cash accounting model is more suited to the used parts business than the accrual method. Your accountant will have the answer as it applies. Proactive, managed scraping of unneeded material is an ongoing process.

Products

  • Work Tools / Attachments
  • Drive Train Components
  • Hydraulic Components
  • Cabs / Canopies
  • Sheet Metal
  • Structural Parts – main frames / track frames / booms / sticks

Condition

Used Parts products can be in prepared and sold in various conditions

  • “As-Is” – removed during salvage process.  Take off with no condition offered
  • Removed – Cleaned
  • Removed – Cleaned – Inspected – includes condition estimate
  • Removed – Repaired – base product used as core to make some repairs
  • Removed – Rebuilt – base product used as core to rebuild to published standard condition
  • Removed – Remanufactured – base product used as core for complete rebuild

Future

Our industry has grown and prospered by providing customer solutions.  Used Parts, starting with Half – Tracks, has provided, and will continue to provide customer solutions.  The details, models, applications, horsepower, reach, lift, capacity, may change, but the demand and the supply our industry provides will continue.  Used Parts has been a part of every product/market change.  

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Developing a Value Based Training Culture

Developing a Value Based Training Culture

Tonight, we are happy to introduce a new guest writer, Mick Vaught. In his first blog for us, Developing a Value Based Training Culture, Mick emphasize the incredible importance of employee development.

Mick was born and raised in the small town of Williamsburg, Virginia, located in the South East region of the United States. While earning a degree in business administration as well as two degrees in Theology he has used this education as a foundation for educating corporate and distribution employees at all levels all over the world. Mick married his wife of 43 years, Carole and together have raised three married children and 8 grandchildren.  After graduating from college Mick joined the Liebherr America group. While serving as Sales Manager he gained experience working with their distribution network in the United States and Canada. After 20 years of service, Mick joined Komatsu America as a product manager. Mick has worked as Vice President (Articulated Hauler Division) Of Volvo Construction Equipment Company, where he oversaw the development of sales, parts, service and the dealer pipeline with their launch of their new haulers. Mick has also worked as a training consultant for a large Caterpillar dealer, and was challenged with creating and launching their LMS system.Upon retiring from corporate America after 35 years, Mick also established his own leadership development Consulting Company. Here he worked with fortune five hundred companies around the country. The company (L3Learning Academy) also offered a wide variety of consulting services for small business owners designed to address everything from major strategic issues to more basic problems affecting everyday business practices. Mick sold the company, and currently teaches at the Charlotte Motor Speedway STEAM program, focusing on developing young minds with an aptitude towards science, technology, engineering, arts, and math.

Development and Execution of a well-conceived Training Plan.

The cornerstone upon which a successful training program rest.

This training plan exists on two levels:  

  • Corporate – encompassing the entire organization and covering a relatively elastic time period of perhaps several years (this is a reflection of an overall set of goals) 
  • Specific – describing smaller organizational units within the organization and covering a discrete fiscal or calendar time frame (this is a reflection of concrete, measurable goals and objectives) 

Training Plan Elements

Background

The Training Plan will begin with a background section, which describes the following: 

  • A description of the strategic Training Directive for developing a Training Plan. Training should always follow the corporate strategy!
  • Define the core client group. Within this client group there will be field and regional offices throughout the branch locations.  
  • A comprehensive resource audit to determine those materials currently available and any of the GAPs that may exist for planned training expectations.
  • Review the total number of employees and age demographics. Indicate approximately how many of these employees are local and if possible, how many are in each geographic area. 
  • Other pertinent information that may be appropriate under the Background section such as:
    • new or, revised organizational-driven requirements (newly formed groups, programs, branches) 
    • changes in profile of service-oriented delivery versus product-oriented business models within the organization 

The background section will be predominantly narrative in structure with a table or charts to assist in framing the context of our plan.

Current Status

The purpose of this section is to describe what sort of training has been completed to date. This section of the corporate plan will be updated each year, and referenced against the previous year for comparative purposes. 

  • What sort of training has been completed to date? Has the training been Ad Hoc and demand driven or … (competency vs. content based)?
  • Has there been a formal training plan? If yes, to what extent has the training plan been completed? Did training include out-of-town travel? 
  • What are the factors that limit training? 
  • Is there a training budget? If yes, what is it and how much, if any, has already been spent? 
  • Have there been any needs assessment conducted to identify what sort of training is needed by headquarters and field offices? If no needs assessment has been conducted, this may be something to add as part of the overall training plan? 
  • Has a need for training evolved by the type of repeat questions and telephone calls for advice we have received? 

This section will be greatly assisted by including a table to indicate current readiness against total numbers within targeted employee groups.

Mission Statement

The Mission Statement will address what it is we want to achieve in a corporate sense with the training plan. For example, our overall goal may be:

“AS AN EXAMPLE.” 

To ensure all employees have those skills required to meet all competencies needed for their job descriptions and to add value to our Human Capital Management while also driving initiatives to focus on Business Knowledge Impact.

The overall goal differs from course goals and objectives because it is much broader and all-encompassing than course goals and objectives which tend to be more specific to the training and more limited in scope. It would be very challenging to reach the above overall goal in one or even 5 years. A number of different types of training would have to be implemented in order to reach the overall goal. Course goals and objectives are also much more measurable than the overall goal because course participants can help us assess whether or not we have met them.

Methodology

The methodology drives the approaches to training delivery that will be employed. For example, our training plan may cover 2 years, 5 years with a number of prescribed courses, or perhaps a phased approach that would be more appropriate for our mission. We may begin with general training one year and include more advanced training the following year. We may also want to offer one or two courses a year on specific topics. The options for this portion of the training plan are limitless.  

  • How will we reach our overall goal?
  • What type of training will be offered? General awareness sessions or topic specific training? Will the training be branch specific in some cases? 
  • Will we develop brochures and other documents that explain marketing concepts, roles and responsibilities? 
  • Will we train via Zoom, video-conference, web based, computer based, or, create a video that staff can sign-out showing management buy-in. Create a training Hotline? 
  • Would it be beneficial to use a Training Steering Committee as we move forward? 

Training Methodology should also be updated each year in the corporate plan as different training delivery methods are evaluated.

Description of Training

We will be doing more than one type of training, to include Service, Parts, Sales, Employee “Human Capital” and eventually a “Company Academy” to develop potential managers and leaders for future growth opportunities (this is where our training plan becomes more specific both in terms of deliverable and time frames). We will also be implementing quick vignettes such as “Lunch & Learns” to communicate common knowledge and information at a quick rate.

Time Frames 

Training will be scheduled and delivered in a “time sensitive manner” working in collaboration with division and department managers to ensure optimum time management. Certain seasons in an industry dictate when time is most appropriate. Other elements to consider will be approximate time we expect to have new product or other documentation complete. Will the documentation be updated each year? When do we expect to have our Web Page up and running? Etc.

Goals 

Identify Clients: First we will identify which group segment will benefit from the training: Customer support (service and parts) would be the first recommendation followed by sales and employee administration. Another goal to target is upper and middle management making available those disciplines needed for their position. 

Objectives: Once we have identified the group segment that requires training, then we will identify what we hope the participants walk away with: This may include; to provide a comprehensive base-level of expertise to support the groups compliance with their core competencies and skill levels or, to ensure all ASC managers participate in training that specifically focuses on their area impact as it pertains to their specific strategies.

Learning Objectives 

Learning Objectives are specific and measurable. Learning objectives identify specifically what the participants will do/learn/understand/identify/recognize etc…

Some examples of objectives would include any of the following: 

The participant will show competence in the following:

Communication 

  • explain four basic principles of communication (verbal and non-verbal) and active listening.
  • outline four barriers and bridges to communication
  • list at least four ways communication skills will help create a positive work environment
  • identify records that require formal FOI response vs. routine release of information 

Time Management

  • list job expectations of staff
  • provide tools to use in prioritizing tasks 

Organization

What will we need to be able to accomplish the training objectives? 

Coordination of Training Delivery: (Based on our Training Resource Audit)

  • Do we need to identify and coordinate a number of training sessions to cover each branch or geographic region? 
  • Do we need to find facilities that will be available on a given date? 
  • Do we have to solicit participants? If yes, will we send out a general e-mail or contact people by phone or post an advertisement? Will we have registration via the Intranet? 
  • How will the training be delivered? Will a facilitator actually give the session, will it be given via video-conferencing or will we develop a brochure or package that is self-explanatory? Will we create a video to send around the province? Will we have a Web Page or a FOI (Field of Information) Hot Line? 
  • Evaluation – How will we analyze the delivery outcomes and identify shortfalls of the training method?  

Materials:

Once we have identified how we will deliver the training, the next question will be what materials do we need to deliver the training:  

  • Will we use slides, video, ILT, WBT, CBT or WebEx? 
  • Due to a deficiency in OEM support material our trainers are spending 65% of their time developing their own which takes away from our training effectiveness
  • What sort of hand-outs will we provide participants? 
  • Will participants be expected to participate in case studies, pre-tests and/or post-tests? 
  • Will there be a poster we want to use?   

Training Schedule and Budget

Finally, the Training Schedule and Budget specifically identifies the date, method, cost and approximate number of participants to be trained.

It would be useful to identify the approximate number of participants to be trained and identify the following:  

  • program delivery 
  • include central administrative staff (i.e., Personnel, Policy and Finance) 
  • include manager / director level? 
  • include executive? 

Reporting 

Finally, when the annual round of training is complete, we should consider the type of reporting we want to do. A summary of the above information is a good place to start and you can flesh out this report with the actual cost and number of participants trained. This information will be helpful in forming part of our overall evaluation of the training program. 

Reports required must include the following: 

  • Personal Development Plan (PDP)
  • Usage / Adoption (project-based)
  • ROI (project-based)
  • Assessment results
  • Transcripts
  • Exception reports (who hasn’t completed requirements)
  • Printable into ms excel
  • Push versus pull
  • Export capabilities
  • Flexible

Executive Summary: 

The critical key for the success of a Learning culture depends on the following: 

  • We must create value for professional development
  • We must create desire
  • Tie learning to performance
  • Communicate successes
    • Run a pilot program
    • Testimonials
    • Recognition 
    • Pictures on a bulletin board
  • Overcome fears
    • Demonstrate learning environment
    • Flash demo’s
    • Technical assistance
    • Peer support
  • Provide job aids

AND MOST IMPORTANTLY: HAVE FUN!

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