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to To The Point list To the Point/April/2005 • Ignorance costs sales—and customer loyalty. A marketing company recommended that an insurance agency in Western Maryland survey its current customers and former customers. One of the striking findings revealed that both homeowners and businesspeople have very little understanding of insurance. They seem to be familiar with auto insurance, but that’s about it. Can we expect customers to be loyal and feel they’re deriving value from a product that they freely admit they don’t understand? Hardly. How can anyone make a meaningful buying decision when they lack basic information about what they’re purchasing? Nevertheless, we complain about a lack of customer loyalty. We get upset when some customers don’t appreciate all that we do for them. In a way, they may not know any better. Everyone in sales should be a teacher. A friend of mine finds his way into a local hardware store every chance he gets. The customer service people are well trained and knowledgeable. The more he learns, the more he buys. He’s always looking for the next project. The old “I’ll-take-care-of everything — don’t-worry-about-it” attitude is not a sales advantage with today’s customers. Helping them understand what they’re buying is essential, whether it’s an insurance policy or anything else. • It’s easy to get it wrong. We’re all running faster these days, but that’s only part of the story. Much of the time we spend dodging one change after another. Nothing stays in place. Someone’s always finding a way to do it faster and at a lower cost and we never get caught up with the technology. On top of that everyone wants it now. Just the other day, a production manager said to his boss, “Has anyone ever said you are a slave driver?” That’s a feeling we all have at sometime during the day. It’s a sorry state when life moves so fast we can’t even time feel sorry for ourselves! The truth is that we may not be running fast enough. That’s the assessment of Thomas L. Friedman, the author of the just-released book, The World is Flat: A Brief History of the Twenty-First Century. Writing in the New York Times Magazine recently, he points to 10 events between 8/9/95 (the date Netscape went public) and the recent arrival of wireless and voice over Internet protocol, that flattened the world-wide playing field. What he means is very simple: We no longer have an edge on knowledge and know-how. Some kid in the jungles of Sumatra has access to everything we do. The competition for jobs is everywhere. Our advantage is being systematically stripped away––fast. It’s a flat, flat world. Mr. Friedman concludes his New York Times Magazine article with a comment from Bill Gates of Microsoft. “In the international competition to have the biggest and best supply of knowledge workers, American is falling behind.” And then he adds, “So, parents, throw away the Game Boy, turn off the television and get your kids to work. There is no sugar-coating this: in a flat world, every individual is going to have to run a little faster if he or she wants to advance his or her standard of living. When I was growing up, my parents used to say to me, ‘Tom, finish your dinner—people in China are starving.’ But after sailing to the edges of the flat world…, I am now telling my own daughters, ‘Girls, finish your homework — people in China and India are starving for your jobs.” The one who’s out of breath first, loses. • Are salespeople spending their time wisely? A recent study from Proudfoot Consulting is disturbing when it comes to the way salespeople use their time. A total of 1,440 companies reported that 30% of the time is traveling, 27% performing administrative duties, 16% problem solving, 10% prospecting, 7% down time—and 10% actively selling. That’s the average salesperson’s week. What might happen if some of the time spent in non-selling activities were reduced, perhaps 10% or 15%? Would sales increase? Getting rid of some roadblocks to having more selling time might power up sales. • Workers’ Comp to commitment. Many of you know that Mosinee Insurance has a serious commitment to attacking the cost of Workers’ Compensation. Experience suggests that this is where working to wring out unnecessary expenses pays off. The complicated nature of the coverage makes it easy for mistakes and errors to creep in and to be overlooked. Using our Comp-Save Mod System, we perform an independent review to spot overcharges. It’s an effective way to be sure your company is not being overcharged. Judy Jacobs, our sales manager, can tell you about it. Call her at 693-2100 or email at judyj@mosineeins.com. • Companies offer perks instead of bonus checks. Mercer HR Consulting reports that surfing lessons and perfume-making classes are replacing the conventional bonus check, and 72% of survey respondents now offer non-monetary recognition rewards at some point during the year. About 55% still give spot cash bonuses. Yet, Inc. Magazine reports that VIPdesk, a company that designs personal chef services, makeovers and circus lessons for a variety of companies, has seen a 700% jump in the demand for experience-driven awards. Giving something that employees want but would not spend their own money on (even if it came in the form of a bonus) appears to be particularly appealing today. • A lesson in success. Tractor Supply Company now has 500 stores in 20 states and is known as the “low-price” retailer in its field. The company has jumped from number 36 to 20 on the Retail Forward list of long running retail success stories. Tractor Supply has done it by following its own way. While similar firms have climbed the ladder by jumping on the latest trends, this company has stayed focused on the long-term—with steady growth in its sales, store count and profit. Chain Store Age says that Tractor Supply has a potential for 1300 stores with income from operations reaching 7%. It’s so easy to get sidetracked and distracted by chasing what’s new, different and seemingly more exciting than it is to stay on target. Yet, that may be the formula for best results over the long-term. Sir William Osler, the famed physician and medical historian, said it very well when he commented, “The best preparation for tomorrow is to do today’s work well.” • GOOD NEWS! For those of you who were unable to attend the "You CAN cutyour Workers Comp Costs" workshops in February, we will be holding two new sessions in May. Dates and information will follow in the mail shortly or give us a call at 715-693-2100. Sincerely,  Tom Helbach Back to To The Point list |
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