Types of Purchases: Understand What Your Customers Are Buying
Guest writers Debbie Frakes and Steve Clegg take a look at customer behavior in this week’s blog post, “Types of Purchases: Understand What Your Customers Are Buying.”
To market your business effectively, it’s important to understand which products and services your customers buy most often and what causes someone to purchase from you. By identifying common buying patterns and the factors that influence purchase decisions, equipment dealers can tailor their strategies to appeal to their target industries and markets. The result is more transactions, improved customer retention, and increased profits.
Why do the types of purchases matter?
By identifying what triggers a purchase for equipment, rentals, service, or parts, and what is bought most often in each category, you’ll determine what is important to your customer base. Armed with that information, you will know which strategies and messaging for offers, pricing, marketing, and advertising will produce the most significant ROI for your business. Excellent customer service with frequent and consistent customer transactions drive customer retention. Revenue and profits are the result, not the driver.
Understanding what customers purchase most often and why allows you to avoid wasting time and resources featuring products and services with nominal engagement and ROI.
Capture more sales opportunities.
The local NAPA, Grainger, and other general supply houses are selling the filters, fluids, and parts to your customers that are required for your equipment. Grainger and Genuine NAPA have an average gross margin above 40%. Most types of equipment require two to six filter changes a year as well as numerous fluid changes. The question is, are you capturing those sales opportunities, or are you allowing someone else to take the order? Recognizing types of purchases will increase transactions, help you engage and retain customers and capitalize on the needs of your customer base.
Know your trigger products.
Triggers are items or situations that drive customers to a store or dealer. For example, grocery store trigger products are milk, eggs, and bread, because these items are the reason someone goes to the store in the first place. However, these products represent less than 10% of the dollars spent. They serve to get people in the door, so they can be sold other products sold in the store.
Examples of equipment dealer triggers for machines, rentals, parts, and service:
- Emergency machine repairs can trigger equipment purchases when the repair cost doesn’t justify the expense versus renting or replacing the machine.
- Machine breakdowns or a specific type of project will trigger renting equipment that is not in the customer’s fleet.
- Breakdowns or equipment crises will trigger repair or maintenance parts.
- Offering a free inspection or a season change can trigger service.
Crises maintenance represents over 25% of a dealer’s customer interactions for parts, service, and rentals. These transactions require same day or next day service and delivery to meet customer expectations. Equipment represents only 1% to 2% of a dealer’s total transactions, whereas parts and services are 88% and rental is 10%. As a result, your parts and service departments create your customer experience and are ultimately responsible for overall customer satisfaction and retention.
Understanding what purchases bring customers through the door tells you where your main focus should be.
Place your resources where they make the most difference.
Every business only has a limited number of sales, marketing, and financial resources they can utilize at any time. The reason why types of purchases is one of the most critical business metrics is that it will show you which products and services to run promos on, which ones to highlight in your emails and on your website, and what to run paid advertising on. In addition, it will determine pricing offers and your inventory requirements.
You need to know what people are buying and what triggers those purchases. Businesses should carefully consider their target audience and tailor their marketing strategies to appeal to triggers that resonate with specific types of customers.
Knowing types of purchases helps you introduce people to additional products.
Armed with the knowledge of which types of purchases are most common, you can familiarize customers with what you offer. They will come to your website or view your email based on the products they typically buy or because of a specific trigger, but then they’ll see other things that you carry. Use your most popular offerings as a hook to get them in the door, where they can see everything that your dealership provides.
Zintoro provides equipment dealers and other businesses with monthly business analytics reporting to recognize, measure, and take advantage of key business metrics like purchases, purchase frequency, customer retention, at-risk customers, and more.
Schedule a Zintoro demo to understand your most common types of purchases and start receiving business analytics reporting today!
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For our course lists, please click here.
Moving beyond the lies built into hiring
Moving beyond the lies built into hiring
A recent article from the Economist.
Our guest writer, John Carlson, shared a recent article published in “The Economist.” He felt the content of “Moving beyond the lies built into hiring” would be of value to readers here at Learning Without Scars.
In “How to get the lying out of hiring,” The Economist makes a strong statement about lying on both sides of the hiring process: “You might imagine this is a simple fight between truth-seeking firms and self-promoting candidates, and to a certain extent it is. But companies themselves are prone to bend reality out of shape in ways that are self-defeating.”
I can’t help but think about the more fundamental issue at the heart of hiring: does the employer just want to fill the position or to obtain someone who best fits the role and who has the greatest potential to perform well and stay? Our team at Reflective Performance, Inc. have been working to offer this better way based on the latest in cognitive science applied to the workforce.
Lies are only possible in a subjective world. Instead, employers and employees can benefit through objective measurement of how people process information, make informed decisions, and deal with fast-changing environments. We do this by determining the fit for a position and organization based on direct measurement of Executive Function skills and Cognitive Reflection abilities to determine human potential in all kinds of corporate environments.
These performance factors are nothing you can lie about or fudge when you are engaged by a software app that puts you through questions and situations that determine the accuracy and speed of response, simulating how your brain responds. Are you impulsive and don’t take valuable time to reflect? Certainly, our social media onslaught can be encouraging of such a response. Wouldn’t it be beneficial for employers to know how human performance factors are addressed based on real data, not subjective evaluations and impressions and past positions?
Able to customize our insights around an organization’s goals, Reflective Performance develops datasets for the performance of current successful employees, plus norms for functional areas to identify Fit Markers and KPI correlations related to the work that a potential hire will be doing.
It’s time to move past subjective and untruthful information in the hiring process and to take the analysis of human factors out of research labs to apply in workforce optimization, ultimately able to eliminate so much embedded waste in terms of costs and lost productivity. Too much money remains on the line for organizations making bad and marginal hires as well as in so much employee turnover. Advanced brain science applied through data-driven systems analysis is where progressive employers are focusing, not in fooling applicants to join their organizations.
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Resource Revolution: Optimizing Your Workforce
Resource Revolution: Optimizing Your Workforce
Guest writer Dale Hanna takes a look at the year ahead and all of its challenges in “Resource Revolution: Optimizing Your Workforce.”
As the calendar turns to 2024, the landscape of the construction industry reflects an ongoing challenge — a significant labor shortage. In an era where leaders face the daily job of doing more with less, embracing technology to help efficiently manage business has become essential. This pivot is not a fad but an important adaptation for the progress of this industry.
Doing More with Less
Imagine a world where the scope of technology ignores traditional boundaries! In this digitally transformed landscape, software applications take control of scheduling service work orders and analyzing digital inspections. Simultaneously, IoT-enabled devices provide real-time insights on equipment idle time, utilization, and maintenance alerts. This integration of technology automates the repetitive tasks — freeing up human skills to make a bigger impact by building customer relationships and taking on strategic initiatives. In the face of labor shortages, digital transformation creates an environment of higher efficiency beyond just filling the gaps — it enhances the productivity of the whole team. As we stride into the next phase, artificial intelligence is making vital information more accessible, transcending language, and erasing geographical and environmental limitations.
Talent of Tomorrow
Now imagine a world with fluid interactions between personnel and their digital counterparts. A world where your team can communicate directly with machines in the field – in their language of choice. It’s as simple as pushing a button and asking for the information they need about their bulldozers, excavators, truckstrucks, and other equipment. With the integration of advanced AI in daily operations, the heavy equipment industry is not just solving today’s challenges — it’s preparing for the future. By showcasing a commitment to tech-driven growth, companies are positioning themselves as attractive workplaces for a new generation of skilled workers.
Data at the Forefront
The success of any business hinges on the quality of data that drives decision-making. As leaders look towards a future shaped by efficiency, ensuring the integrity of this data is critical. Clean, precise data helps optimize fleet efficiency and asset management, becoming the bedrock of strategic planning. In the quest for operational excellence, accurate data — when made easy to use and access —access — eliminates inefficiencies and waste, ensuring that resources are deployed effectively. Companies at the industry’s leading edge understand that robust data analysis is key to staying ahead. In the current climate of labor shortages and economic pressure, AI and technology stand as pillars of innovation and adaptability. These tools empower the equipment industry to overcome today’s trials and march confidently into a future of sustainable growth and innovation.
The race is on. Is your business equipped with the right tools for tomorrow?
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For our course lists, please click here.
Types of Purchases: Understand What Your Customers Are Buying
Types of Purchases: Understand What Your Customers Are Buying
Guest writers Debbie Frakes and Steve Clegg take a look at customer behavior in this week’s blog post, “Types of Purchases: Understand What Your Customers Are Buying.”
To market your business effectively, it’s important to understand which products and services your customers buy most often and what causes someone to purchase from you. By identifying common buying patterns and the factors that influence purchase decisions, equipment dealers can tailor their strategies to appeal to their target industries and markets. The result is more transactions, improved customer retention, and increased profits.
Why do the types of purchases matter?
By identifying what triggers a purchase for equipment, rentals, service, or parts, and what is bought most often in each category, you’ll determine what is important to your customer base. Armed with that information, you will know which strategies and messaging for offers, pricing, marketing, and advertising will produce the most significant ROI for your business. Excellent customer service with frequent and consistent customer transactions drive customer retention. Revenue and profits are the result, not the driver.
Understanding what customers purchase most often and why allows you to avoid wasting time and resources featuring products and services with nominal engagement and ROI.
Capture more sales opportunities.
The local NAPA, Grainger, and other general supply houses are selling the filters, fluids, and parts to your customers that are required for your equipment. Grainger and Genuine NAPA have an average gross margin above 40%. Most types of equipment require two to six filter changes a year as well as numerous fluid changes. The question is, are you capturing those sales opportunities, or are you allowing someone else to take the order? Recognizing types of purchases will increase transactions, help you engage and retain customers and capitalize on the needs of your customer base.
Know your trigger products.
Triggers are items or situations that drive customers to a store or dealer. For example, grocery store trigger products are milk, eggs, and bread, because these items are the reason someone goes to the store in the first place. However, these products represent less than 10% of the dollars spent. They serve to get people in the door, so they can be sold other products sold in the store.
Examples of equipment dealer triggers for machines, rentals, parts, and service:
Crises maintenance represents over 25% of a dealer’s customer interactions for parts, service, and rentals. These transactions require same day or next day service and delivery to meet customer expectations. Equipment represents only 1% to 2% of a dealer’s total transactions, whereas parts and services are 88% and rental is 10%. As a result, your parts and service departments create your customer experience and are ultimately responsible for overall customer satisfaction and retention.
Understanding what purchases bring customers through the door tells you where your main focus should be.
Place your resources where they make the most difference.
Every business only has a limited number of sales, marketing, and financial resources they can utilize at any time. The reason why types of purchases is one of the most critical business metrics is that it will show you which products and services to run promos on, which ones to highlight in your emails and on your website, and what to run paid advertising on. In addition, it will determine pricing offers and your inventory requirements.
You need to know what people are buying and what triggers those purchases. Businesses should carefully consider their target audience and tailor their marketing strategies to appeal to triggers that resonate with specific types of customers.
Knowing types of purchases helps you introduce people to additional products.
Armed with the knowledge of which types of purchases are most common, you can familiarize customers with what you offer. They will come to your website or view your email based on the products they typically buy or because of a specific trigger, but then they’ll see other things that you carry. Use your most popular offerings as a hook to get them in the door, where they can see everything that your dealership provides.
Zintoro provides equipment dealers and other businesses with monthly business analytics reporting to recognize, measure, and take advantage of key business metrics like purchases, purchase frequency, customer retention, at-risk customers, and more.
Schedule a Zintoro demo to understand your most common types of purchases and start receiving business analytics reporting today!
Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.
He Who Stops to Ponder…
He Who Stops to Ponder…
In this week’s bonus blog, a friend of Ron’s in Hawaii sent him the text below. Please read on for “He Who Stops to Ponder…”
He who stops to ponder and think will generally come out ahead.
When Gandhi was studying law at University College, London, a Caucasian professor, whose last name was Peters, disliked him intensely and always displayed prejudice and animosity towards him. Also, because Gandhi never lowered his head when addressing him, as he expected, there were always arguments and confrontations.
One day, Mr. Peters was having lunch at the dining room of the University, and Gandhi came along with his tray and sat next to the professor. The professor said, “Mr. Gandhi, you do not understand. A pig and a bird do not sit together to eat.” Gandhi looked at him as a parent would a rude child and calmly replied, “You do not worry professor. I will fly away,” and he went and sat at another table.
Mr. Peters, reddened with rage, decided to take revenge on the next test paper, but Gandhi responded brilliantly to all questions.
Mr. Peters, unhappy and frustrated, asked him the following question. “Mr. Gandhi, if you were walking down the street and found a package, and within was a bag of wisdom and another bag with a lot of money, which one would you take?” Without hesitating, Gandhi responded, “The one with the money, of course.” Mr. Peters, smiling sarcastically, said, “I, in your place, would have taken wisdom, don’t you think? Gandhi shrugged indifferently and responded, “Each one takes what he doesn’t have.”
Mr. Peters, by this time was beside himself and so great was his anger that he wrote on Gandhi’s exam sheet the word “idiot” and gave it to Gandhi. Gandhi took the exam sheet and sat down at his desk trying very hard to remain calm while he contemplated his next move. A few minutes later, Gandhi got up, went to the professor, and said to him in a dignified but sarcastically polite tone, “Mr. Peters, you signed the sheet, but you did not give me the grade.”
Wit always wins over anger.
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Equipment Labor Shortage Challenges and Solutions for 2024
Equipment Labor Shortage Challenges and Solutions for 2024
Guest writer Greg Grady writes today about the new year just around the corner in “Equipment Labor Shortage Challenges and Solutions for 2024.”
Finding out how technology, including automation, can help address heavy equipment workforce shortages in 2024 and beyond.
In 2024, the heavy equipment rental and dealership industry will face an unprecedented challenge in sourcing, hiring, and retaining qualified personnel. For the past few years, businesses across the sector have been grappling with an alarming workforce shortage, and as part of the equipment business industry, we have witnessed firsthand the impact this shortage has on the market.
This shortage of skilled labor has far-reaching implications, affecting everything from equipment servicing to customer satisfaction. However, amidst these challenges, there is a beacon of hope in technology.
A Labor Crisis in the Heavy Equipment Industry
To understand the gravity of the situation, it’s critical to consider some recent statistics. According to the U.S. Department of Labor’s JOLTS report, nearly 4.3 million people quit their jobs in January 2022. The shockwaves from this massive voluntary turnover still reverberate in 2024, as the U.S. Chamber of Commerce reports that workforce participation remains below pre-pandemic levels. In fact, we are currently 1.5 million Americans short of the workforce that existed pre-Covid back in February 2020.
Scarcity Impacts Equipment Businesses
The shortage of qualified workers has significantly impacted equipment businesses. The demand for construction and infrastructure projects has surged, but the workforce needed to support these initiatives is simply not keeping pace. Equipment service technicians, in particular, have become exceedingly challenging to source. This specialized role requires a unique skill set that combines mechanical knowledge with executive function, creativity, customer service, and physical agility.
The Quest for Tomorrow’s Workers
Organizations like the American Rental Association have taken steps to address this issue, developing certifications, events, and educational initiatives to cultivate the workforce of tomorrow. While these efforts are commendable, there still exists a shortfall of skilled personnel in the industry today that must be managed.
Embracing Technology to Bridge the Gap
The answer to the equipment business labor shortage lies in technology, specifically automation. Many businesses are now deploying technology solutions to digitize their paper-based processes. This digital transformation is helping to streamline operations, reduce errors, and improve overall efficiency, all while requiring fewer full-time equivalent (FTE) hours.
Automation to the Rescue
One significant advantage of technology adoption is process improvement and automation, which allows equipment businesses to reduce the human FTE hours required for specific tasks. For example, automating the sales activity in the quote-to-order process can significantly streamline the quote-to-cash timeline while eliminating data entry errors. Ultimately, digital transformation creates “sticky” customers and reduces churn which industry analysts, including Associated Equipment Distributors (AED), estimate to be roughly 60 percent on average for equipment dealers and rental companies each year.
The Synergy of Education and Technology
By combining workforce education efforts with technology integration, equipment organizations can refine their business processes to weather the labor shortage storm. Skilled technicians, even if scarce, can become exponentially more productive when armed with the right digital tools. These tools not only help them perform their roles more efficiently but also make the work environment more attractive to potential employees.
Going Forward with the Right Solutions
The heavy equipment industry’s workforce shortage is a challenge that cannot be underestimated. However, by leveraging technology and a commitment to ongoing workforce education, businesses in this sector can address the crisis head-on. The synergy of these two elements can bridge the gap between the demand for skilled labor and its availability, ultimately propelling the industry forward into a more prosperous and sustainable future.
About Greg Grady
Greg Grady is the Chief Revenue Officer (CRO) at Texada Software, a leader in equipment business management, delivering SaaS and mobile applications for equipment dealerships and rental companies. Learn more about Texada Software at http://www.texadasoftware.com.
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More, Better, and Creative
More, Better, and Creative
Courtesy of the Water Well Journal, Editor Thad Plumley provides this week’s guest blog post in “More, Better, and Creative.”
I spoke years ago with the manager of a book warehouse whose workforce mostly consisted of temporary employees.
I asked why he didn’t have more full-timers and was told the workers didn’t want it. He had permission to promote several of them but got turned down nearly every time.
The main reason he pointed out was: “They wouldn’t be able to not come in when they didn’t feel like it.”
Why do I feel like that story doesn’t surprise you like it did me at the time?
I’ve been thinking about that a lot since I read the results of the Associated General Contractors of America (AGC) 2023 workforce survey.
A staggering 85% of respondents reported they have open positions to fill, and 88% said they are having trouble filling at least some of them. Why? Largely because 68% said applicants lack the skills needed to work in construction.
The AGC noted that nearly every community around the country had open construction positions that pay better than the average job and would be vital to that area’s local growth. And yet the jobs remain open.
Why is for an article another day. Today we need to tackle how you can find a workforce to service your customers of tomorrow.
Three words: More, better, and creative.
Simply put: It is going to take more money. Eight out of ten (81%) of companies answering the survey said they have raised their rates in the last year. You need to do the same.
Sure, I may not know what you pay, but I feel confident in saying there is a good chance you need to raise your rates.
After all, know this: You’re not competing with the local water well contractor down the street anymore. You’re competing with the electrician, the plumber, truck driving company, and other blue-collars careers. Yes, I said careers, not jobs.
It’s also going to take offering a better benefits package. We’re a long way from a couple of weeks of vacation, insurance, and a holiday dinner. Think of benefits as compensation without the wages. They need to truly be of value.
For starters, pay for training and professional development, pay for gym memberships, set up discounts with area businesses, and have a retirement plan. Heck, even free snacks in the breakroom is a nice perk. When employees see all of that grouped with a strong array of insurance programs and competitive pay, your company will start to stand out.
Finally, be creative. Sixty-three respondents of the AGC survey said they revamped their recruiting methods by adding online strategies and digital advertising. That is mission critical.
Don’t give up on visiting high schools and technical education programs, but you must go where the next workforce is—and it’s online.
There is no doubt the workforce shortage is a problem that isn’t going to be solved overnight. But the start must happen today.
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Top Three Reasons to Skip the University System
Top Three Reasons to Skip the University System
Guest writer Isaac Rollor shares some different options in 2023 for high school graduates in “Top Three Reasons to Skip the University System.”
Top three reasons to skip the university system and pursue a heavy equipment career in 2023.
Imagine yourself as an 18-year-old high school graduate today. Now imagine that you must decide whether to attend a university or find a job and start a career. In years past this decision was simple for most of our culture. Just a few years ago college was almost a non-negotiable experience in the eyes of mainstream parents and teachers. For an 18-year-old today there is a new grassroots message regarding university attendance and careers that is gaining momentum. This new message lowers the importance of attending a university and raises the importance of developing a skill within a career area. A growing number of parents are embracing this new message mainly because the cost of college is out of control, and parents see clear evidence that many positions requiring technical skill are currently not filled.
An 18-year-old today must be very courageous to embrace the new message and start a career without attending a university. Choosing a profession can be overwhelming so I have outlined the Top 3 reasons to skip university and pursue a heavy equipment career in 2023.
#1 Stability
The market for construction equipment is expected to continue growth despite signs that other areas of the economy may contract in the coming years. Regardless of economic factors there are certain skilled positions at manufacturers and dealers are already facing labor shortages. Job areas such as repair technicians and technical support are constantly in demand. Most of the manufacturers of heavy equipment have very recognizable brands and products. Plus, most manufacturers and dealers have made huge investments in fixed operations which means there is a very slim chance that your career with a dealer or manufacturer will be outsourced or quickly replaced by technology like AI. Need more evidence that this industry will survive economic uncertainty? Look at any reputable market research report. Currently the U.S. construction equipment market alone is valued at approximately 149 billion, and the market is expected to grow to approximately 194 billion by 2030.
#2 Career Development
One of the best benefits about pursuing a heavy equipment career is that starting at an entry level position can quickly lead to more responsibilities and a high paying job title. Proving to management that you are a safe and responsible team member will be like rocket fuel for your career within the organization. Negligence of employees can cost a dealer or manufacturer a great deal of time and money. Proving to management that you can work safely around machines and that you value the safety of your coworkers and customers is critical. Another benefit of working in the heavy equipment business is that training opportunities are readily available. Whether this is on the job training or formal classroom style training, most manufacturers and dealers place high importance on training their teams. Typically, a culture of training exists in this industry. You can easily take advantage of training to advance your career. Tuition assistance is also common at manufacturers. If you feel that you need to pursue a degree from a university the tuition assistance program from your employer can be a great way to get started.
#3 Job Satisfaction
There is something very special about working with heavy equipment. Many industries professionals recall having been interested in big yellow machines at a very young age. There is something captivating about watching an excavator load trucks at sunrise or seeing the loader that you repaired go back to work in the gravel pit. Aside from the machines the people who work within the industry are interesting and usually very enjoyable to work with. If you love the outdoors, you will feel right at home with heavy equipment professionals. Developing longstanding relationships with coworkers in this industry is very common. Hunting and fishing with your coworkers are common in this industry, so if you are an outdoors person this is a great career area to consider. Another great benefit to working within the heavy equipment industry is that you get to be outdoors regularly while on the job. There are many professionals that spend almost their entire working lives inside an office building. Working outdoors and getting your hands dirty is a key element that makes this career a satisfying choice for many people.
Final thoughts
I started my career during the great recession. There weren’t a lot of opportunities for college graduates at that time. There were many college graduates who couldn’t get a job and those college graduates who had jobs were regularly being laid off due to economic conditions. During this time, I was working as a heavy equipment mechanic. Not only did I have a secure job, but I was also making more money than college graduates could expect to make in the first several years of their career in a healthy economy. The best part was that I had zero college debt. I took advantage of a grant provided by my state and attended a two-year diesel equipment technology program. Before I finished the program there were major brands offering me and my fellow classmates’ jobs with great pay that included a solid benefits package.
This experience allowed me to see that there was another path available to me outside of the typical university system and I saw that certain career areas such as heavy equipment was in desperate need of dependable talent. I started working in the heavy equipment industry with zero experience, the industry was so desperate for skilled labor that a grant paid for my education, and I was consistently employed and promoted during one of the worst recessions in our countries history. During my career I have held positions as a maintenance mechanic, diesel technician, technical trainer, content developer/instructor and various sales positions. The heavy equipment industry allowed me to reach my full potential within each job area and build long standing relationships with truly great leaders. If you are interested in starting a career in the heavy equipment industry or you need some guidance regarding career development, you can reach out to me anytime is**********@***il.com. I always respond.
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Changes in Learning
Changes in Learning
Today, our Founder Ron Slee writes a blog post on the many changes in learning. He also makes a few grumbles about how his family gives him a hard time!
It has been some time since I wrote a blog on employee development. It is unusual for me not to be sharing my thinking with someone, in some cases anyone. I have been confronted on two fronts recently: My daughter Caroline who is a teacher in the desert in Southern California and my granddaughter who is pursuing her master’s degree in Hawaii.
Both love to provoke me. I can’t imagine why.
My granddaughter was excited to share a book they are using in one of her classes this semester – “The Narrative Gym.” It is about Communications. It is an amazing read and a more amazing subject to be teaching students in a master’s program. Of course, communication is one of the keys to life. We are social animals after all. COVID set us back somewhat in the communications area. Working from home is another example of how we reacted, or perhaps responding is a better way of saying it. Many businesses found that they could redesign their work. I know many people started to redesign their lives.
My daughter recently suggested another book – “Ruthless Equity: Disrupt the Status Quo and Ensure Learning for ALL students.” Talk about a powerful book. Many of us have become tired of the status quo when either protecting it or attacking it seems to be tearing apart everything that we have believed to be true. This book restores my soul. “All men are created equal” but then everything we do stresses the inequalities.
At Learning Without Scars we are aiming to help everyone identify their individual potential. That is an extremely difficult thing to do. People’s eyes glaze over when I talk about it. What I am trying to do though is provoke people to think. To think about everything and anything that they do. You know how envious I am of the Japanese societal approach to Kaizen. Make everything you do better every day. This is a view of work that in my mind allows people to become more engaged as people in what they do. They can CHOOSE how to do their job. They can CHOOSE to make their lives better by how they do their job. In the world that I grew up in, that was not the primary goal. Let me show you how this is done. Let me tell you what I just showed you. Then let me tell you again what I showed you. Now you try. I will be here to help so don’t worry. But just do it. Do it my way. Then practice it and get better at it. Make fewer mistakes and do it faster. Now you are doing the job. Just keep on doing it.
That is what I rejected in my early thirties when I started in the consulting world. I knew there were better ways to do things. 1980 when I opened R.J. Slee & Associates in Edmonton, Alberta was also when America was invaded by the Continuous Improvement Revolution. Total Quality Management arrived. Edward Deming and Joseph Duran brought their thinking back to America from Japan where they had been implementing it.
For a long time, I have used a tool I developed called “Five Things” that is aimed directly at the Continuous Improvement objectives. I ask people to list five things that they would like to change about their job that would make things easier for them personally. Then five things that they do that are a real pain to do. Finally, five things that they would like to change in their work to make things better for the company. Normally I do this in a group setting. We then take the individual items and put them on a flip chart, a blackboard or a screen so everyone can see them. You can imagine their surprise when many had the same thoughts. Not just that but their true shock at how many were on all three lists. So, something that would make their lives at work better, eliminate something that is a pain for them to do and at the same time is beneficial for the company. Of course, my questions are always the same. If that is true, then why haven’t we already addressed it?
I have a request please. Go get either of these books. Better still get both. Read them and think about the concepts and positions taken. Then send me an email with your thoughts. Let’s have a mini book club in the ether. Online.
In the meantime, for those of you who haven’t subscribed to our quarterly newsletter there is still time. The last one was published October 1st. You can subscribe at www.learningwithoutscars.com.
At Learning Without Scars we offer one hundred and thirty-eight Workforce Development classes. That is six hundred and eighty hours of learning. It provides sixty-nine academic credits.
At Learning Without Scars we offer twenty-eight Technical Schools classes. That is five hundred and sixty hours of learning. It provides fourteen academic credits.
At Learning Without Scars we offer two lecture series covering twenty hours of lectures which produces two academic credits.
That is one hundred and sixty-eight classes, which is one thousand two hundred and sixty hours of learning.
To say we have been busy with product development is a serious understatement. Not only are we interested in helping you identify your potential, but we also provide you with learning tools to help you achieve it. All the best in your pursuits.
The time is now.
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Can’t Find Technicians?
Can’t Find Technicians?
Guest writer Alex Kraft challenges the pattern of blaming entire generations of people for labor shortages in his blog post “Can’t Find Technicians?”
I get a chuckle when I hear the narrative around “can’t find people who want to be a diesel technician.” I’ve heard it since the day I started my career in 2004. The same message persists today. Nothing has changed. I find it counterproductive to try and blame individuals by questioning work ethic and calling generations lazy. Many topics aren’t that complicated, people respond to incentive structures. The main reason the technician labor pool has been lagging is purely economic.
Anyone who’s worked in the equipment industry would agree that diesel technicians are a highly skilled labor force. Many say they are the “lifeblood” of the dealership. Throw in some cliches, like “customer support sells the next machine” or “we’re a service company that sells machines,” and you start believing that service is the most important department within an equipment dealer. I’ll cut to the chase: so why aren’t technicians paid more? If they’re highly skilled (and in high demand!), are relied upon to fix $400,000+ machines, and preventing customer downtime is so important, why aren’t technicians paid more? The wage scale hasn’t changed much since I began in 2004. Depending on geography, top tier technicians today earn around $40-$45 per hour. Do the math, that’s $85k-$95k per year. That’s a fraction of what sales reps earn per year. There’s no shortage of equipment/rental sales reps, but there’s a shortage of diesel technicians. Yet the industry leadership continues to ask aloud, ‘why can’t we find more technicians?’
There’s been a huge uptick in the younger generation pursuing software engineering careers. Why? Two key factors: there’s a growing demand for the role and it pays extremely well. Our company employs software engineers. The market rate for software engineers is $85-$120 per hour. I’d bet the “teach your kids to code” movement wouldn’t be nearly as popular if $30-$40 per hour was the going rate for those jobs. I haven’t even begun to delve into the job environment! Diesel technicians work in harsh conditions (extreme temperatures), it’s physically demanding, and high stress. Hey, it’s mid-July in Arizona/Florida/Texas/Louisiana, we need you under this wheel loader for 8 hours today getting filthy, and we’ll pay you $27 per hour. Repeat the same thing tomorrow, and the day after…Maybe two years from now, we’ll bump you to $32 per hour. And we wonder why more people aren’t signing up for this. It’s now well documented that UPS drivers earn up to $49 per hour!
The market demand is clearly there. The overall equipment market continues to grow YOY, creating an even larger supply of machinery that will break down. Do we collectively believe that there’d be a shortage of diesel technicians if there was a path to earning $200,000 per year? Imagine that marketing campaign. Here’s a career path that doesn’t require boatloads of college debt AND the ability to earn $200k+ annually. Or we can continue regurgitating the same talking points for another 20 years and just wish things would be different. I know what path we’re taking at Heave.
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How To Improve Customer Retention
How To Improve Customer Retention
This week, guest writers Steve Clegg and Debbie Frakes talk with readers about how to improve customer retention. This is one of the best ways to build successes: keep the customers you already have!
Retention is critical for the long-term success of any business. It’s crucial because it is far less expensive to keep your existing customers than to acquire new ones, and customers will buy more products and purchase more often from you the longer they work with you. Zintoro business analytics will tell you what your overall retention rate is and if you are in danger of losing specific at-risk customers. Armed with that information, you can take the right steps to ensure they keep working with you.
Why customers leave you.
Customers will stop working with you for any number of different reasons. But the primary cause is mismanaging their expectations and not keeping them proactively informed of good and bad news. The second most common reason that a customer leaves a business is a change in the employee contact or the customer contact. The third cause is having employees that are not adequately trained or knowledgeable of your products and services. Despite popular belief, price is not typically the thing that drives customers away. In fact, on the list of most common reasons, price is usually fifth or sixth.
There are several strategies you can implement to retain more customers over the long term. In this article, we’ll look at what they are and how Zintoro helps you put them into practice.
Retain more customers with Zintoro and their partners.
Offer exceptional customers service.
The key to providing excellent service is understanding customer expectations and being responsive to their questions and concerns. Your team should be proactive and reach out to customers before they contact you in order to answer the questions you anticipate them asking.
Zintoro uses Winsby Inc.’s customer satisfaction and benchmark survey programs to determine your customers’ expectations and any issues they are having. Your team can then act on this information. For employee customer service training, Zintoro relies on Ron Slee’s Learning without Scars’ online and in person training programs.
Personalize the customer experience.
Zintoro AI tracks each customer to determine their next purchase, what industry, and market they are in, and whether they are at risk of being lost. Using that information, your sales team can personalize customer interactions and tailor offers and recommend services to meet their needs, based on their past purchases and preferences. Zintoro also works with Winsby Inc. to keep your master lists up to date with the correct contacts, phone numbers, and email addresses, as well as to segment your lists and tailor messaging to specific groups.
Build strong relationships with consistent communication.
Improving customer retention depends on engaging with your customers and supporting them beyond the point of sale. Zintoro can help in several different ways:
Collect and act on feedback!
The key to understanding your customer expectations and issues is to regularly ask for feedback. Implementing customer satisfaction surveys from our partner, Winsby Inc., provides insights into how customers feel about your company and how well you provide for their needs. You’ll discover issues with your sales process, products, and other aspects of your business before they turn into major problems and customers leave you for the competition.
Know the signs that a customer may leave.
Zintoro tracks the products, frequency, and consistency of customer purchases to identify who is at risk. Your sales team can then act on that information and reach out to those customers, ask about their needs, and even provide a special offer or other incentive to encourage them to stay with you.
Highlight social proof and testimonials.
Showcasing positive customer experiences in your emails and on your website helps you convert more prospects and keep your existing customers. Zintoro AI tracks the online customer satisfaction scores, and Winsby Inc. posts your verified customer reviews online and on your website.
Zintoro is the key piece of the puzzle for customer retention.
Increasing retention is an ongoing process. By consistently providing value, personalization, and outstanding service, you can build long lasting relationships with your customers and increase their loyalty to your brand. Zintoro provides the data and information you need to understand your customers, and our partners give you the tools required to retain them and grow your sales.
Schedule a Zintoro demo to find out how they boost your customer retention, track, and accurately forecast business performance, and determine the ROI for your marketing and customer satisfaction efforts.
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