What's a New Customer Really Worth
All business leaders know the importance of retaining customers. A quality product, supported by a
customer-centric service environment and ongoing communications dedicated to sharing ideas is essential. But companies should periodically examine their customers’ buying habits to better understand the
importance of keeping existing customers satisfied.
“Many small-business people have no idea what a good regular customer is worth to their business,” says Dan S. Kennedy, an author, entrepreneur, consultant and coach to clients running businesses from $1 million
to $1 billion in sales. “The cost of retaining a customer and even expanding a customer’s value is much less than getting a new customer.”
By calculating what an average customer is worth to the business – the Lifetime Value (LTV) of a Customer -- business owners are then better equipped to evaluate the way they acquire customers. There are different
ways to calculate LTV, but here is a simple approach. First, determine your
variables:
1. What is your average sale?
2. What is the frequency of your average customer?
When you multiply the average sale by the frequency of your average customer, the result is your value of a new regular customer. Next, determine the average customer lifespan (years) and multiply the value of a
new regular customer by the years a customer will buy from you. This is the LTV of a customer. It represents how much each customer is worth in monetary terms.
Other ways of calculating LTV consider retention, profitability and consider different kinds of customers. Here is a free, downloadable Customer Lifetime Value Calculator from Microsoft. This tool allows the user to perform what-if analyses to see how different variables drive Customer Lifetime Value and profitability, with the ability to then plan strategies for improvement. The LTV of a customer helps marketing officers determine the amount to spend to acquire a customer. The spend must be less than the LTV of a customer, of course, or the company could lose money. And while some customers bring value in other ways, such as referrals that lead to new business, LTV answers the question of whether a company is appropriately
spending to acquire customers. As long as management understands the life cycle and relationship with the customer, they can modify marketing strategies to work toward optimizing the length of time and value a customer brings to the business.
Jonathan Brindley, CA
President, Liquid Capital Advance Corp.
jbrindley@liquidcapitalcorp.com
This is your brain on “continuous change”
Big events, such as life changes (moves, new job, promotions, weddings, births, deaths etc), as well as smaller regular daily shifts, like transitioning from task to task and skill to skill are all part of daily learning. How we deal with change and transitions (big or small), as individuals, as organizations and as a culture will determine our present and future success.
Do you embrace the inevitable changes and transitions that are central to life, or do you avoid them until they are forced upon you and a choice is no longer there?
The dictionary defines Transition as follows: movement, passage, or change from one position, state, stage, subject, concept, etc., to another.
Examples of transition/change could range from getting dressed, going into a meeting, then going to another
meeting with a different focus, to brushing your teeth; beginning a therapy or fitness session, writing a report,
answering the phone, arriving home from work or could also be an attitudinal shift, change in perception or belief. At any given time of the day, the volume of changes individuals are required to make could go from 20 to 50 within an hour span, and that is a conservative estimate.
Nothing stays the same for very long. Continuous change requires us to regularly address how we learn, research, communicate, collaborate, engage with others and model our behavior. Each step in this ‘continuous identification cycle’ is critical and applicable to our children, their learning; our adult learning as well as an organization’s culture. As we grow and change it is advisable to prepare ourselves and our children for the future. How can we do this if we are in constant stress due to fast paced change and can’t adapt easily?
A great article in FORTUNE magazine emphasized how universities are failing to prepare students with the
needed digital and social media skill set in a meaningful way. Dr. William Ward (handle @DR4WARD) of Syracuse University's S.I. Newhouse School of Public Communications says, "Higher education, like business, needs a culture shift."
What was interesting about this article is that not only does the content of education have keep up with
continuous change - equally important, is the daily development of our abilities and skills to grasp and process this continuous identification cycle of change. We are all in need of this skill set during these ambiguous timesand rest assured we are all quite capable of mastering it.
Among Fortune 500 companies, 73% now have company Twitter accounts and 66% have Facebook Pages. Analysts estimate that $1.3 trillion in value stands to be unlocked by new social technologies. But while businesses are hungry to tap social media, they lack the expertise to do so. Among 2,100 companies surveyed by Harvard Business Review, only 12% of those using social media feel they use it effectively.
The result is an exceptional demand for social media professionals who can boost the bottom line. "Social
communication done well increases productivity, saves money and time, and improves engagement and
satisfaction," Ward says. "[It's] a part of a larger culture shift changing how work gets done."
With higher education not addressing this gap, it is essentially up to the employers to not only have a plan, but as part of it to fill, develop and manage this skill gap and cultural shift with new and current employees. Too add one more critical consideration to this plan; companies are dealing with the most diverse mixture of generations ever! The boomers, generation X, millennial generation, each bring value, different perspectives and characteristics to their organizations. Businesses with a social media focus, working with the continuous identification cycle of change also have to become social integrators.
Innovative companies will need to identify new ways of training that deal with organizational shift, continuous
new learning, mentoring and training support programs. Thankfully, all of these generations and programs have one thing in common: they can all successfully implement, retain and integrate new learning and change by introducing Brain Fitness programs.
Interesting how movement is listed as the first description word for the meaning of “transition” in the dictionary. For those who are new readers, Brain Fitness is the state in which we are performing well, mentally, emotionally and physically/functionally. Brain Fitness grew out of the study of neuropsychology and neuroscience. It is the science of building, maintaining and training cognitive abilities through neuroplasticity stimulating neurogenesis, the creation of new neurons, and neural connections.
Research tells us that when in stress, the average person only uses a limited portion of their brain, leaving the
majority underutilized in day to day thoughts, decisions and actions. It doesn't matter how much new
information comes our way, we need a neurological system that can successfully integrate the learning and
transition it to action. This happens when our brain achieves greater connectivity.
Using Brain Fitness (integrative movement), you can support a cultural shift, and level and enhance the playing field so there is common ground during a shifting and uncertain market place as well as support employees change and transitional opportunities for growth and training retention. Retention of any new learning is key to organizational efficiency. Our memory loses 50% of newly learned knowledge in a matter of days or weeks unless we consciously review the learned material (Hermann). This stat can actually fluctuate based on the individuals stress level. Our Brain Fitness tools directly impact stress by removing physical, emotional, mental and functional stress.
Brain Fitness breaks are simple, easy and effective. When implemented they lead to greater clarity, focus,
productivity and stress reduction. A drink of water and some of quick Brain Fitness movements will restore
balance and connection and yield tremendous results immediately and long term. Most of all, we connect to our higher brain power, the neo cortex - the place where our executive functioning skills reside. Now we become innovative visionaries and agents of change! As we grow, adapt and transition our brain to higher functioning, this positively impacts our personal and professional lives.
To learn more about your brain and gain understanding of the simplicity of the brain’s ability to grow and rewire itself for enjoyment, efficiency, achievement and health, consider joining one of our personal/professional development courses and make some new brain links for your success! Brain Fitness is easy and extremely beneficial to us all, no matter your age or ability.
About the authors
Jill Hewlett and Sharon Todd are co-founders of Brain Works Global Inc., licensed Brain Gym® Trainers,
Educational Kinesiologist and Cognitive fitness experts. Their company trains clients on how to maximize their learning potential while working in conjunction with their group and individual goals.
For over a decade Jill Hewlett has been providing inspirational and educational keynotes. As well, Brain Works Global provides in house and community training and personal and professional coaching services to a wide range of organizations, schools and the community.
For more information go to http://www.brainworksglobal.com or call Sharon Todd, Director of Sales and Operations 905.235.5546
Understanding the Boss
Over the course of my career, I’ve encountered literally hundreds of CEO / Presidents and other executives in organizations ranging in size from very small (less than 10 employees) to multi-billion-dollar, multi-nationals employing thousands. Many of these people have been excellent in their positions while others are long past their ‘best before’ dates. Others should never have been in a position of authority at that, or sometimes any, level. The impact of the CEO business decisions (timing and accuracy) and the CEO personality on the morale of employees and on the organization’s credibility with all stakeholders cannot be understated and often makes the difference between the levels of success or failure the organization will achieve.
In this world of constant change, the CEO must also be able to determine product, market and sales strategy and tactics as rapidly as the change is occurring. If the organization is in a growth or decline, the CEO must also be able to determine effective resource strategies to ensure continued success or survival. Therefore, a CEO could be faced with rapid changes to the competitive environment and changes in the rate of growth simultaneously…and the two may not necessarily be related.
The problem is determining whether the CEO can effectively work in the current environment as well as the future environments that the organization may find itself.
Management Types
My quite unscientific study and categorization of management types is to divide them into three areas: Operators; Managers; and, Leaders.
THE OPERATOR is the most basic type of boss. I characterize this person as reactionary, lacking basic knowledge capital in some areas of the organization and tend to use catch phrases that they’ve picked up along the way to try to show that they know what they’re doing. In other words, they appear to be large ponds of water when they are really shallow puddles. The Operator is not a manager at all…they are bosses and are likely to be very controlling. If this person has an ego or temper, watch out!
A MANAGER understands the continuum of “Plan – Action – Control” and has adequate knowledge capital to be able to know what the next logical action would be in terms of dealing with a gradual change in market or revenue. This person normally has the personality skill set to be able to direct people to meet end goals. They are tactical managers but do not necessarily have the vision that is required to lead change, get the most out of their resources or recognize sudden shifts in their competitive position.
A LEADER is very comfortable in their own skin and don’t have serious issues in letting people know that they don’t know everything. They know where their core competency is and, more importantly, where they need to surround themselves with others that have complimentary core competencies to form an effective management team. By surrounding themselves with talent, they make themselves appear stronger and give themselves the ‘thinking space’ to be able to manage the organization at both strategic and tactical levels. Few people mind working for, or with, a leader. If they ask you to jump, you’ll gladly ask ‘how high’ on the way up because you have confidence in their judgement and personality.
How They Got There
The other category that I apply to understanding the CEO is how they became executives in the first place. Again, I divided this into three paths: The Owner; The Peter Principle; and, The Promoted.
THE OWNER is the CEO because they either own, or co-own, the business. They are the boss because they sign the cheques.
THE PETER PRINCIPLE CEO has been placed into the position for a number of potential reasons. Nepotism (hiring a family member), being a friend of the owner, being promoted because you’ve been in the business forever (best before date is well past) or being the consummate politician (also known as kissing butt) may get this person the title but they are at least one level of authority higher than they ever should attain.
THE PROMOTED CEO is a person that started in business at a substantially lower point in an organization. They have been watched over, motivated, mentored and promoted up the ladder over a period of time when they have shown the aptitude and ability to handle the responsibilities of that next level.
How They Likely Perform
As with anything unscientific, there are exceptions to what I’ve observed. However, when I put the Management Type with the How They Got There into a matrix and then look at how they perform in terms of handling pace of change and growth changes, I come up with the matrix shown and can predict with some certainty how these people are going to perform.
The Owner Group
“OO” The Owner/Operator is going to be okay in a small organization that has very little probability of rapid market changes or changing volume in a hurry. These people are good at operating the corner store or small ‘boutique’ operations (e.g. organizations with less than 10 people). However, growing an organization or reacting to change will present major challenges unless they upgrade their knowledge capital and become effective managers of people and resources. As the business gets steadily larger, or has progressively faster change in market, this person could go from competent to unable to manage and then to the state of becoming a liability to the organization as they botch resource and product decisions.
“OM” The Owner/Manager is going to be okay with steady changes in the growth of an organization. The “Plan – Action – Control” and knowledge capital that they have in the business will stand them in good stead. However, they may mishandle rapid market changes or be unable to react quickly enough to a change in fortune. If they do recognize, or have planned for, change they will likely have considered utilizing outside assistance. If they have some good outside council, they should be able to weather short storms but would need to bring in permanent assistance if the changes continued to rock the boat.
“OL” The Owner/Leader is likely to be focused on the growth of their organization within their vertical. Controlling growth will not be an issue because they will have hired other management personnel that have skill sets that are complimentary. The potential issue for this person is rapid change to their marketplace if they haven’t also invested in outside counsel to assist in identifying change and the proper plans to survive and/or thrive with the changes.
Peter Principle Group
“NO” As long as the organization is in a stable environment, this person will muddle their way through short-term issues. However, this person will not handle growth or change well. They don’t have the knowledge capital or personality to be able to do much. Next to the OO combo, this is probably the worst combination in a CEO that I can imagine in an organization in rapid growth or change mode.
“NM” Due to their management capabilities, these people will be able to handle slow growth or market change conditions. Remembering that they are operating at least one level higher in the organization than they have a skill set to attain, they are likely to err when having to make a decision on rapidly changing situations.
“NL” If this person exists, they are a rare breed. They would only be here under the nepotism criteria of getting into this group and that means that it would be a stroke of good fortune for the person that hired/promoted them into the position for this person to truly be a leader.
Promoted Group
“PO” This is another of the rare breed type as a CEO or executive level manager. An operator, by definition, should not be promoted.
“PM” A person that has been promoted through the ranks and can, at least, follow sound methodologies for planning and controlling the enterprise should be able to manage the organization in times of changing markets and controlled growth. However, they don’t have all of the skills to take the organization to the upper level of its growth potential with the resources at hand.
“PL” Unfortunately, many of us never have the opportunity to work for a person that has the Knowledge Capital and people skills that a PL exhibits. This person knows their core competencies and has surrounded themselves with complimentary skill sets. Beyond understanding the continuum of “Plan – Action – Control”, they invest in continuous improvement of key performance indicators, technology and methodology and utilize organizational resources – internal and external – to ensure that outside influences to the organization are monitored and appropriate action taken when shifts occur.
Contributing Factors
There are some contributing base personality factors that can make the management type an extreme case. Anger management issues, inappropriate language, ego and pride can turn situations from bad to ugly. These people should not show up in the Promoted Group but regularly show up in the other two groups. The worst possible CEO situation I can envision is the “OO” type person in a growth or rapid change mode that has any or all of these attributes. This person would not just be incompetent they could easily become a legal liability to the organization as stress to maintain control mounts. Conversely, an “OO” that finally figures out that they are over their heads in managing the organization and does not have these negative personality traits could eventually become an “OL”.
Summary
As I’ve mentioned, the above observations at just that…an informal study that I’ve conducted over my career spanning more than three decades. It’s important to all stakeholders in an organization to understand that the type of person leading from the CEO/President position sets the tone for the entire organization because change, when needed, has to start from the top. It’s also important for employees to understand the type of person they are working for, the speed of the change and growth factors affecting the organization and understand the impact that these factors will have on their quality of life.
I’ve been an employee working for a few of these types of people and have observed most of the others as a consultant. I was fortunate to begin my career working with a “PL” and enjoyed the mentoring approach which helped me not only climb the promotional ladder, but also showed me how to get the best performance from people…there wasn’t anything that he asked that I wouldn’t get done. I have also worked for an “OO” who also had and ego and a temper in a high growth situation…he couldn’t pay me enough to stay.
To papa-phrase a quote from Confucius: “Choose a management style you can work with and you never be stressed a day in your life”. Your upper management’s type and personality will have a direct impact on how many days you feel stressed and underappreciated.
About the author
Ken Cowman is Managing Director of Emercomm Business Consultants Inc. of Mississauga, Ontario ( www.emercomm.com ) . Ken has over 40 years of business experience with over 25 years in C-level positions. He can be reached via email kcowman@emercomm.com and his career profile can be found on LinkedIn www.linkedin.com/profile/view?id=13440900&trk=tab_pro
In this world of constant change, the CEO must also be able to determine product, market and sales strategy and tactics as rapidly as the change is occurring. If the organization is in a growth or decline, the CEO must also be able to determine effective resource strategies to ensure continued success or survival. Therefore, a CEO could be faced with rapid changes to the competitive environment and changes in the rate of growth simultaneously…and the two may not necessarily be related.
The problem is determining whether the CEO can effectively work in the current environment as well as the future environments that the organization may find itself.
Management Types
My quite unscientific study and categorization of management types is to divide them into three areas: Operators; Managers; and, Leaders.
THE OPERATOR is the most basic type of boss. I characterize this person as reactionary, lacking basic knowledge capital in some areas of the organization and tend to use catch phrases that they’ve picked up along the way to try to show that they know what they’re doing. In other words, they appear to be large ponds of water when they are really shallow puddles. The Operator is not a manager at all…they are bosses and are likely to be very controlling. If this person has an ego or temper, watch out!
A MANAGER understands the continuum of “Plan – Action – Control” and has adequate knowledge capital to be able to know what the next logical action would be in terms of dealing with a gradual change in market or revenue. This person normally has the personality skill set to be able to direct people to meet end goals. They are tactical managers but do not necessarily have the vision that is required to lead change, get the most out of their resources or recognize sudden shifts in their competitive position.
A LEADER is very comfortable in their own skin and don’t have serious issues in letting people know that they don’t know everything. They know where their core competency is and, more importantly, where they need to surround themselves with others that have complimentary core competencies to form an effective management team. By surrounding themselves with talent, they make themselves appear stronger and give themselves the ‘thinking space’ to be able to manage the organization at both strategic and tactical levels. Few people mind working for, or with, a leader. If they ask you to jump, you’ll gladly ask ‘how high’ on the way up because you have confidence in their judgement and personality.
How They Got There
The other category that I apply to understanding the CEO is how they became executives in the first place. Again, I divided this into three paths: The Owner; The Peter Principle; and, The Promoted.
THE OWNER is the CEO because they either own, or co-own, the business. They are the boss because they sign the cheques.
THE PETER PRINCIPLE CEO has been placed into the position for a number of potential reasons. Nepotism (hiring a family member), being a friend of the owner, being promoted because you’ve been in the business forever (best before date is well past) or being the consummate politician (also known as kissing butt) may get this person the title but they are at least one level of authority higher than they ever should attain.
THE PROMOTED CEO is a person that started in business at a substantially lower point in an organization. They have been watched over, motivated, mentored and promoted up the ladder over a period of time when they have shown the aptitude and ability to handle the responsibilities of that next level.
How They Likely Perform
As with anything unscientific, there are exceptions to what I’ve observed. However, when I put the Management Type with the How They Got There into a matrix and then look at how they perform in terms of handling pace of change and growth changes, I come up with the matrix shown and can predict with some certainty how these people are going to perform.
The Owner Group
“OO” The Owner/Operator is going to be okay in a small organization that has very little probability of rapid market changes or changing volume in a hurry. These people are good at operating the corner store or small ‘boutique’ operations (e.g. organizations with less than 10 people). However, growing an organization or reacting to change will present major challenges unless they upgrade their knowledge capital and become effective managers of people and resources. As the business gets steadily larger, or has progressively faster change in market, this person could go from competent to unable to manage and then to the state of becoming a liability to the organization as they botch resource and product decisions.
“OM” The Owner/Manager is going to be okay with steady changes in the growth of an organization. The “Plan – Action – Control” and knowledge capital that they have in the business will stand them in good stead. However, they may mishandle rapid market changes or be unable to react quickly enough to a change in fortune. If they do recognize, or have planned for, change they will likely have considered utilizing outside assistance. If they have some good outside council, they should be able to weather short storms but would need to bring in permanent assistance if the changes continued to rock the boat.
“OL” The Owner/Leader is likely to be focused on the growth of their organization within their vertical. Controlling growth will not be an issue because they will have hired other management personnel that have skill sets that are complimentary. The potential issue for this person is rapid change to their marketplace if they haven’t also invested in outside counsel to assist in identifying change and the proper plans to survive and/or thrive with the changes.
Peter Principle Group
“NO” As long as the organization is in a stable environment, this person will muddle their way through short-term issues. However, this person will not handle growth or change well. They don’t have the knowledge capital or personality to be able to do much. Next to the OO combo, this is probably the worst combination in a CEO that I can imagine in an organization in rapid growth or change mode.
“NM” Due to their management capabilities, these people will be able to handle slow growth or market change conditions. Remembering that they are operating at least one level higher in the organization than they have a skill set to attain, they are likely to err when having to make a decision on rapidly changing situations.
“NL” If this person exists, they are a rare breed. They would only be here under the nepotism criteria of getting into this group and that means that it would be a stroke of good fortune for the person that hired/promoted them into the position for this person to truly be a leader.
Promoted Group
“PO” This is another of the rare breed type as a CEO or executive level manager. An operator, by definition, should not be promoted.
“PM” A person that has been promoted through the ranks and can, at least, follow sound methodologies for planning and controlling the enterprise should be able to manage the organization in times of changing markets and controlled growth. However, they don’t have all of the skills to take the organization to the upper level of its growth potential with the resources at hand.
“PL” Unfortunately, many of us never have the opportunity to work for a person that has the Knowledge Capital and people skills that a PL exhibits. This person knows their core competencies and has surrounded themselves with complimentary skill sets. Beyond understanding the continuum of “Plan – Action – Control”, they invest in continuous improvement of key performance indicators, technology and methodology and utilize organizational resources – internal and external – to ensure that outside influences to the organization are monitored and appropriate action taken when shifts occur.
Contributing Factors
There are some contributing base personality factors that can make the management type an extreme case. Anger management issues, inappropriate language, ego and pride can turn situations from bad to ugly. These people should not show up in the Promoted Group but regularly show up in the other two groups. The worst possible CEO situation I can envision is the “OO” type person in a growth or rapid change mode that has any or all of these attributes. This person would not just be incompetent they could easily become a legal liability to the organization as stress to maintain control mounts. Conversely, an “OO” that finally figures out that they are over their heads in managing the organization and does not have these negative personality traits could eventually become an “OL”.
Summary
As I’ve mentioned, the above observations at just that…an informal study that I’ve conducted over my career spanning more than three decades. It’s important to all stakeholders in an organization to understand that the type of person leading from the CEO/President position sets the tone for the entire organization because change, when needed, has to start from the top. It’s also important for employees to understand the type of person they are working for, the speed of the change and growth factors affecting the organization and understand the impact that these factors will have on their quality of life.
I’ve been an employee working for a few of these types of people and have observed most of the others as a consultant. I was fortunate to begin my career working with a “PL” and enjoyed the mentoring approach which helped me not only climb the promotional ladder, but also showed me how to get the best performance from people…there wasn’t anything that he asked that I wouldn’t get done. I have also worked for an “OO” who also had and ego and a temper in a high growth situation…he couldn’t pay me enough to stay.
To papa-phrase a quote from Confucius: “Choose a management style you can work with and you never be stressed a day in your life”. Your upper management’s type and personality will have a direct impact on how many days you feel stressed and underappreciated.
About the author
Ken Cowman is Managing Director of Emercomm Business Consultants Inc. of Mississauga, Ontario ( www.emercomm.com ) . Ken has over 40 years of business experience with over 25 years in C-level positions. He can be reached via email kcowman@emercomm.com and his career profile can be found on LinkedIn www.linkedin.com/profile/view?id=13440900&trk=tab_pro
Single Point of Contact Service (SPOCS) Or…The Customer’s Time is Valuable
Have you ever called an organization and been shuffled from one department to another? Or, have you called one toll free number and then been given another toll free number to call because you got the wrong support group? How about the call you made to a customer support line where the person gives you a technically correct, but utterly useless, answer. Frustrating? Are your customers having the same frustration? If so, your organization is ignoring the first principle of Lean Management: Understand Your Value Proposition. Your customer’s time is valuable and you should not waste it.
Single Point Of Contact Service, as the name may suggest, is the implementation of a collaborative workflow that includes technology and knowledge. The outcome of the implementation of SPOCS is that a customer only has to make one contact with your business to accomplish one or more tasks.
For instance, one call allows the customer to: Inquire on availability and price of products or services; Place, change, inquire about or cancel an order for products or services; Set up, or inquire about, an account with your organization; Request information about employment, investment or public relations; Engage in concurrent engineering activities with your organization.
SPOCS is designed to overcome the frustration factors. Essentially, the person that picks up a call on the customer service telephone line needs to have the information available to give to the caller or access immediately to the person that can give the information and conference them into the conversation with the caller. The successful implementation of SPOCS is dependent upon first determining, and acknowledging, the frustration factors of your current and potential customers.
You also need to determine the best communication strategy for use. Some customers are very comfortable with Internet-based communication and this is the long-term lowest cost alternative for implementing SPOCS. However, if the product or service being provided is not compatible with this type of communication then the risk of failure is great.
Determining Frustration Factors
There are a number of methods available to determine the current and potential frustration factors that your customers and prospects are encountering and how they want them corrected. You could send out a customer satisfaction survey in which your organization gives a laundry list of potential issues and leaves space for commentary on issues not covered. You can also publish the survey on your company website. The problem with this survey is that you may not get a large enough response from the customer base to accurately define or rate the issues. The best method that we have found to work is the formation of a customer focus group that will meet with your company’s SPOCS team to determine the frustration factors and assist in the development of the solution.
Solution Requirements
The first step in developing the solution is to define the scope. For instance, will investor relations be part of the scope? In many organizations, because of the nature of the topic, the SPOCS operator would only forward the call to a person that specifically handles the situation and would then disconnect. Once the scope of the solution is defined, an internal team must be nominated. This team should include as a minimum: A management sponsor; Marketing and/or sales personnel; Customer service personnel; Personnel from various operational departments; Finance personnel; and, Information technology. Any people from departments impacted by the scope (e.g. human resources) should be added to the team.
Developing the solution
Once the internal team is commissioned, then bring in the customer focus group (CFG) or results from the survey. The method of preferred communication should be obvious from the survey or initial discussion with the CFG. This is the point where a decision will be made on the type of technology that is required and the information technology people start their research (web tools and/or telephone system capabilities and/or wireless capabilities). The SPOCS team (now including the CFG) now begins to develop a prioritized list of issues to be dealt with in the project. Once the priorities are set, root causes of the frustration are uncovered. Categorize the root causes into these sections: Causes the customer to call and can be eliminated; Causes the customer to call and cannot be eliminated and are deemed to require an immediate response; and, Causes the customer to call and cannot be eliminated and are deemed to not require an immediate response. This allows you to focus resources effectively. If the cause of the call can be eliminated then it should be a high priority of the organization to eliminate it.
Once the work flow is developed to respond in a timely manner, then implement by first testing the work flow and technology and then by educating everyone on their role and the importance of fulfilling the role effectively. Most importantly, hold people accountable for their effectiveness in fulfilling their SPOCS roles. The customer’s satisfaction level is only as good as the last contact that they had with your organization. Make it a good one.
About the author
Ken Cowman is Managing Director of Emercomm Business Consultants Inc. of Mississauga, Ontario ( www.emercomm.com ) . Ken has over 40 years of business experience with over 25 years in C-level positions. He can be reached via email kcowman@emercomm.com and his career profile can be found on LinkedIn www.linkedin.com/profile/view?id=13440900&trk=tab_pro
Single Point Of Contact Service, as the name may suggest, is the implementation of a collaborative workflow that includes technology and knowledge. The outcome of the implementation of SPOCS is that a customer only has to make one contact with your business to accomplish one or more tasks.
For instance, one call allows the customer to: Inquire on availability and price of products or services; Place, change, inquire about or cancel an order for products or services; Set up, or inquire about, an account with your organization; Request information about employment, investment or public relations; Engage in concurrent engineering activities with your organization.
SPOCS is designed to overcome the frustration factors. Essentially, the person that picks up a call on the customer service telephone line needs to have the information available to give to the caller or access immediately to the person that can give the information and conference them into the conversation with the caller. The successful implementation of SPOCS is dependent upon first determining, and acknowledging, the frustration factors of your current and potential customers.
You also need to determine the best communication strategy for use. Some customers are very comfortable with Internet-based communication and this is the long-term lowest cost alternative for implementing SPOCS. However, if the product or service being provided is not compatible with this type of communication then the risk of failure is great.
Determining Frustration Factors
There are a number of methods available to determine the current and potential frustration factors that your customers and prospects are encountering and how they want them corrected. You could send out a customer satisfaction survey in which your organization gives a laundry list of potential issues and leaves space for commentary on issues not covered. You can also publish the survey on your company website. The problem with this survey is that you may not get a large enough response from the customer base to accurately define or rate the issues. The best method that we have found to work is the formation of a customer focus group that will meet with your company’s SPOCS team to determine the frustration factors and assist in the development of the solution.
Solution Requirements
The first step in developing the solution is to define the scope. For instance, will investor relations be part of the scope? In many organizations, because of the nature of the topic, the SPOCS operator would only forward the call to a person that specifically handles the situation and would then disconnect. Once the scope of the solution is defined, an internal team must be nominated. This team should include as a minimum: A management sponsor; Marketing and/or sales personnel; Customer service personnel; Personnel from various operational departments; Finance personnel; and, Information technology. Any people from departments impacted by the scope (e.g. human resources) should be added to the team.
Developing the solution
Once the internal team is commissioned, then bring in the customer focus group (CFG) or results from the survey. The method of preferred communication should be obvious from the survey or initial discussion with the CFG. This is the point where a decision will be made on the type of technology that is required and the information technology people start their research (web tools and/or telephone system capabilities and/or wireless capabilities). The SPOCS team (now including the CFG) now begins to develop a prioritized list of issues to be dealt with in the project. Once the priorities are set, root causes of the frustration are uncovered. Categorize the root causes into these sections: Causes the customer to call and can be eliminated; Causes the customer to call and cannot be eliminated and are deemed to require an immediate response; and, Causes the customer to call and cannot be eliminated and are deemed to not require an immediate response. This allows you to focus resources effectively. If the cause of the call can be eliminated then it should be a high priority of the organization to eliminate it.
Once the work flow is developed to respond in a timely manner, then implement by first testing the work flow and technology and then by educating everyone on their role and the importance of fulfilling the role effectively. Most importantly, hold people accountable for their effectiveness in fulfilling their SPOCS roles. The customer’s satisfaction level is only as good as the last contact that they had with your organization. Make it a good one.
About the author
Ken Cowman is Managing Director of Emercomm Business Consultants Inc. of Mississauga, Ontario ( www.emercomm.com ) . Ken has over 40 years of business experience with over 25 years in C-level positions. He can be reached via email kcowman@emercomm.com and his career profile can be found on LinkedIn www.linkedin.com/profile/view?id=13440900&trk=tab_pro
Creating Training Programs for your Organization
Creating a training program for your organization can be extremely valuable but also a very time-consuming and potentially expensive endeavour.
This article will provide some tips to consider when creating a training program.
Needs and goals assessment
Defining your objectives before starting to create a training program is a must. Decide on the goals and objectives you’re trying to achieve and rank them as necessary.
Availability of resources
Determine whether your organization has the time available and the staff resources required to create and implement the program. Don’t underestimate the time and energy required to put together a well-executed training program.
Evaluate options
Evaluate all options available to make the best possible decisions for your organization, and be objective when evaluating them.
Location
Decide whether to have the training on-site or externally. An advantage to off-site training is that it can significantly reduce distractions, allowing for more focus from the participants. Consider technology issues for employees who may want to participate in the training from a remote location. Who will conduct training? There are several options as to who should conduct the training, including employees, managers or external consultants. Be aware of costs and time required in your choices.
Timing
It’s preferable to conduct training when it’s less busy in your organization, but also when you’re more likely to have maximum attendance. If possible, make the training compulsory. Numbers/Diversity in the Program To provide the best training possible, consider how many will attend the session(s) and the breakdown of attendees. Decide on a larger vs. smaller group, older/younger, more experienced/less experienced, male/female, or a combination of all.
Format
Will the training be visual, role plays, lecture style, other? Will there be humour or games involved? How will participants get involved? Remember that an engaged audience will take away more from the training than a group who is not engaged.
Other tips
• Determine who should attend – management only, non-management, or both.
• Provide a certificate to those who have participated.
• Keep it in short blocks and allow for breaks throughout the session.
• Use technology as much as possible.
• Reduce distractions by asking participants to turn off their smart phones.
• Give attendees homework to complete either in advance, during or after the training has been provided.
• Choose a name for the training that will give it credibility and is easily understood.
• Use consistent formats for slides, templates and handouts if you’re providing different internal training programs.
• Tailor the training as much possible to your organization rather than using canned training.
• Select one or two people to be responsible for the overall program and its objectives to ensure accountability.
• Do a pilot with a smaller number of participants to get feedback on how it can be improved.
• Ask employees receiving the training what they need, either in person, through surveys or focus groups.
• Budget appropriately for the costs associated with the program.
• Make the materials accessible online for employees who either missed the training or want to view it again later.
• Measure the successes afterwards and share the results through the organization.
• Use evaluations at the conclusion to get a sense of how the training can be improved.
Conclusion
There is considerable effort that goes into an effective training program. Following these tips and tailoring training to your organization’s needs will help make your program valuable to the employees who are participating.
*************************************************************
Marc Belaiche is a CPA, CA and is President of TorontoJobs.ca, an Internet recruitment business and recruiting firm located in the Greater Toronto Area in Canada. Marc has been in the recruitment industry since 1995. TorontoJobs.ca allows companies to post their positions online, search a resume database to find candidates, provides outplacement services and full temporary and permanent recruitment services. It also allows candidates to search and apply to positions directly online and get career, interviewing and resume tips all at no charge. Marc is also President of TorontoEntrepreneurs.ca, an organization geared towards business owners (see www.TorontoEntrepreneurs.ca). You can reach Marc at Marc.Belaiche@TorontoJobs.ca and check out TorontoJobs.ca at www.TorontoJobs.ca.
This article will provide some tips to consider when creating a training program.
Needs and goals assessment
Defining your objectives before starting to create a training program is a must. Decide on the goals and objectives you’re trying to achieve and rank them as necessary.
Availability of resources
Determine whether your organization has the time available and the staff resources required to create and implement the program. Don’t underestimate the time and energy required to put together a well-executed training program.
Evaluate options
Evaluate all options available to make the best possible decisions for your organization, and be objective when evaluating them.
Location
Decide whether to have the training on-site or externally. An advantage to off-site training is that it can significantly reduce distractions, allowing for more focus from the participants. Consider technology issues for employees who may want to participate in the training from a remote location. Who will conduct training? There are several options as to who should conduct the training, including employees, managers or external consultants. Be aware of costs and time required in your choices.
Timing
It’s preferable to conduct training when it’s less busy in your organization, but also when you’re more likely to have maximum attendance. If possible, make the training compulsory. Numbers/Diversity in the Program To provide the best training possible, consider how many will attend the session(s) and the breakdown of attendees. Decide on a larger vs. smaller group, older/younger, more experienced/less experienced, male/female, or a combination of all.
Format
Will the training be visual, role plays, lecture style, other? Will there be humour or games involved? How will participants get involved? Remember that an engaged audience will take away more from the training than a group who is not engaged.
Other tips
• Determine who should attend – management only, non-management, or both.
• Provide a certificate to those who have participated.
• Keep it in short blocks and allow for breaks throughout the session.
• Use technology as much as possible.
• Reduce distractions by asking participants to turn off their smart phones.
• Give attendees homework to complete either in advance, during or after the training has been provided.
• Choose a name for the training that will give it credibility and is easily understood.
• Use consistent formats for slides, templates and handouts if you’re providing different internal training programs.
• Tailor the training as much possible to your organization rather than using canned training.
• Select one or two people to be responsible for the overall program and its objectives to ensure accountability.
• Do a pilot with a smaller number of participants to get feedback on how it can be improved.
• Ask employees receiving the training what they need, either in person, through surveys or focus groups.
• Budget appropriately for the costs associated with the program.
• Make the materials accessible online for employees who either missed the training or want to view it again later.
• Measure the successes afterwards and share the results through the organization.
• Use evaluations at the conclusion to get a sense of how the training can be improved.
Conclusion
There is considerable effort that goes into an effective training program. Following these tips and tailoring training to your organization’s needs will help make your program valuable to the employees who are participating.
*************************************************************
Marc Belaiche is a CPA, CA and is President of TorontoJobs.ca, an Internet recruitment business and recruiting firm located in the Greater Toronto Area in Canada. Marc has been in the recruitment industry since 1995. TorontoJobs.ca allows companies to post their positions online, search a resume database to find candidates, provides outplacement services and full temporary and permanent recruitment services. It also allows candidates to search and apply to positions directly online and get career, interviewing and resume tips all at no charge. Marc is also President of TorontoEntrepreneurs.ca, an organization geared towards business owners (see www.TorontoEntrepreneurs.ca). You can reach Marc at Marc.Belaiche@TorontoJobs.ca and check out TorontoJobs.ca at www.TorontoJobs.ca.
Five Tips for Managing Small Business Growth
By: Stephane Jasmin, President & CEO,
DisclosureNet™
There aren't many things more satisfying for an entrepreneur than watching your business
grow. It makes you feel like you’re on top of the world, that you’re capable of
anything, and like you can finally say “I did it” to naysayers from the early
days.
But it’s easy to
get caught up in the whirlwind and forget that while business growth is your
friend, it can also become a challenging foe if you don’t manage it properly.
I’m fortunate
that during the economic downturn over the past four years, my business has both
remained unscathed by financial hardship and experienced healthy growth.
In fact, small businesses are
key economic drivers in Canada and they continue to prosper in Toronto and beyond.
In an effort to maintain this great track record, it’s important for SME’s to create
conversations surrounding growth management. Below are some tips that I've gathered
over the years from my own experiences and from talking to peers who have handled
business growth challenges.
- People are paramount
People
are the most important way to ensure your company’s long-term health and growth.
Talent acquisition may appear easy, but finding people who are skilled, reliable,
dedicated and passionate is a tall order. High growth periods usually mean that
businesses need to not only recruit new employees, but also avoid hiring
impulsively just to get bodies where (and when) you need them. Be picky. Hire
only those individuals whose personalities truly fit with your corporate
culture and demonstrate the exact qualifications to fill the role.
What
about existing employees in your organization? When businesses are growing,
things can get chaotic and it becomes easy to forget that the single most
important engine driving your business is your employees. Let them know their
value within the organization by encouraging a culture of openness, innovation
and collaboration. Establish a formal process for employees to offer their ideas
for the business both internally and externally. You don’t have to accept every
idea, but creating a forum where suggestions can be acknowledged and discussed
is key to employee engagement and morale. And believe me; you’ll hear some
really great ideas, so having a feedback process in place is a win-win
situation.
- Keep your hands dirty
while learning to let go
After
surviving the blood, sweat and tears of starting your own business, and powering
through hours of number crunching and seemingly endless work, it can be
tempting to distance yourself from the company once it’s flourishing. While a
little time off is perfectly okay (and actually really healthy), it’s important
to stay involved in all aspects of the business to make sure it doesn't go off
the rails.
With
growth comes new employees, customers, processes and considerations that can
affect how your business performs. Learn
about all the moving parts in your business as it matures, so you can understand
exactly what’s working and what isn’t. Involvement in your growing business
will ultimately help you make better decisions that can enhance future
performance.
On
the flip side of this, it can also be very hard to loosen your grip on the
business. If you’ve hired carefully (as mentioned in the first point) then
you’ve got an extremely talented and dedicated staff that, under your
direction, will execute seamlessly. Trust them to do this and trust that you
and your business will be better off in the long-term for sharing the
responsibilities.
- Keep humble pie on hand
If
the latest recession has taught us anything, it’s that corporations that took
years to build can crumble in mere moments. It’s easy to feel infallible when
your small business suddenly kick-starts into an accelerated growth period, but
it’s important to stay humble and remember that there are always factors at
play that may threaten your success.
Whether
it’s detrimental financial circumstances (in or out of your control), or bad
publicity that happens to go viral, the wind that puffs up your sails through
times of growth can easily disappear and leave you desperately paddling to stay
afloat.
Be
proud of your successes and look forward to all the opportunities ahead, but remain
humble, remember where you came from, and be realistic about the possibility of
bad luck or failure.
- Listen to your inner
penny-pincher
Most
entrepreneurs have learned a thing or two about how to stretch a dollar over
the years. While business growth can alleviate financial pressures, it’s
important to find and maintain a balance between being stingy and a
spendthrift.
Splurging
on a few high priority or “fun” items is okay occasionally, but otherwise, err
on the side of economical. Remain knowledgeable about the company’s finances
and always consider whether spending is necessary or superfluous. Ask questions
like “Is there opportunity for ROI with this purchase?”, “Will spending this
money improve the employee/customer experience?” or “Do we need this right now?”
It’s
best to stay on budget: you never know when you may benefit from having extra cash
flow.
- Take advantage of your
network
Networking
can be as casual as happy hour drinks with industry peers or as informal as
following a colleague on Twitter.
Seek out those you’ve met (or whose work
you’ve admired from afar) that have experienced success and failure in
business, and talk to them one-on-one about what they’ve learned. In turn you
can share your thoughts and experiences. Building these relationships over time
are all part of the learning process, and you’re sure to stumble upon some
fantastic ideas that will help you manage your small business’s growth.
Seeing
your small business grow is, above all else, exciting. However, keeping these
tips in mind will help you manage that growth and might be critical in ensuring
your venture’s long term success.
Stephane
is the President and CEO of DisclosureNet™,
an
online solution founded in 2002 that helps business professionals unlock
intelligence in global corporate disclosure filings. DisclosureNet™ was a 2012 semi-finalist
in the Toronto Board of Trade’s Business Excellence Awards in the category of
Business Growth.
Career Pathing: Developing a Roadmap for Employee Success
By Joey
Walters
For
some employees, a career in the restaurant industry can truly become a
rags-to-riches story – even if those rags were used to wash dishes. After all,
many a superstar chef started out scrubbing pots on the low end of the kitchen
food chain with a dream of someday running his or her own restaurant. Whether
they are ultimately successful in turning that dream into reality, however,
depends much more on passion, hard work and a willingness to learn than it does
on a desire for financial fortune.
Thankfully,
the food service industry offers a multitude of career development, or “career
pathing,” opportunities for those willing to put in the time and effort required
for success. Human resources experts understand the importance of ensuring top
employees develop and advance within their respective organizations in order to
help their employers become respected leaders in their field. Restaurant
operators, in turn, must invest in their employees. Leaders must have the right
team to succeed, to build the next generation of talent by investing, listening
and developing their greatest asset: Employees.
Communication Critical
This
may be easier said than done in the restaurant industry, however with job
abandonment on the rise – one study showed one out of every three voluntary
terminations in quick-service restaurant establishments is a result of lack of
future advancement opportunities within the company (leaders must show their employees
the career opportunities that exist within their establishments. Organizations
with an official internal communication system for restaurant management
positions had 18-per-cent less turnover than organizations lacking an internal communication
system.
There
is a direct connection between customer satisfaction and employee satisfaction
and a key driver of that satisfaction comes through engagement. Career pathing is
one way to increase employee motivation and satisfaction. This process allows leaders
to engage their employees in challenging job opportunities or training
programs, in addition to creating a roadmap that shows employees how they can achieve
their career aspirations.
This
has increased employee retention dramatically in many companies, including
family-owned Earl’s, a Vancouver-based chain that has grown to over 50
restaurants in B.C., Alberta, Saskatchewan, Manitoba, Ontario, Arizona and
Colorado. Earl’s has a designated website for hiring (www.earlswantsyou.com)
because of the overwhelming interest in working for the company. Earl’s looks
for great personality, passion for people and hospitality, and eagerness to
learn and grow. In turn, Earl’s offers a fun, sociable work environment and advancement
opportunities in the areas of the kitchen, service and leadership, along with
award-winning training and career-development programs.
Clear Progression
In
many ways, career pathing communicates the career progression available to all
employees – simple, measurable, realistic, and time-based performance goals
that align from the restaurant owner or managers down to the wait staff. A
career-pathing program can also help a food service business by reviewing talent
within each restaurant, developing advancement programs for top performers and knowing
who can take over senior roles should a vacancy become available.
In
order to implement an effective system, restaurant operators need to ensure all
career-pathing programs are aligned with how the company plans to grow and it
must be customized to fit the individual, values and culture of the company.
Other concerns involve identifying a measuring stick of what success would look
like in progressive jobs and evaluating an individual's position readiness by
using real-life projects.
Boxed Sidebar:
Benefits of Career Pathing
·
Engages,
motivates and retains employees
·
Makes employees
the strategic differentiator and competitive advantage
·
Creates a
strong leadership pipeline for all key roles
·
Builds a
culture of continuous learning
Joey Walters is managing director of HRPreneur
Inc., a consulting firm which designs customized HR solutions that fit with
your company’s values and culture and help retain top talent and increase ROI. For
more information, contact Joey at 647-534-4774 or by email at jwalters@hrpreneur.ca (www.HRPreneur.ca)
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