Categories
Business

Why Area Codes Change

By Peter Lyle DeHaan, PhD

As telephone numbers are assigned, the availability of numbers within an area code diminishes. In order to make sure that there are always numbers available, usage is analyzed, number exhaustion dates are projected, and steps are taken to provide for more numbers.

Author Peter Lyle DeHaan, PhD

Although short-term steps can be taken to deal with and respond to this, the long-term solution is either an area code split or an area code overlay. Both methods accomplish the same goal of making more numbers available; however, each has its own set of strengths and weaknesses.

An Area Code Split

An area code split means that the geographic region of the area code is divided in two. One part will keep the same area code, while the other section must switch to a new area code (but everyone will retain their seven-digit number).

There is a transition period for this, called permissive dialing, in which either the old or new area code can be dialed for the effected section. After a time, mandatory dialing goes into effect. At this point, any call to the new region using the old area code will not go through.

These numbers eventually become available for reuse.

Splits are not popular with businesses, as it requires printing new stationary, changing all advertising, and many other changes, including reprogramming phone systems.

In rapidly growing areas, to avoid the need to repeat this process in a few years, sometimes a three-way split is made at the same time. This divides an area into three sections, one retaining the original area code and the other two each getting their own new area code.

An Area Code Overlay

An area code overlay means that a new area code is assigned to the same geographic region as the existing code(s), which is running out of numbers. With an overlay, no one needs to change area codes.

However, if it is not already implemented, ten-digit dialing becomes required for all calls, even local numbers. All new number assignments are in the new area code. As such, ordering a second line could result in a number with a different area code.

Overlays are not popular with most consumers, as they do not want to dial ten digits on every call, nor remember different area codes for friends and neighbors.

If you are in area that is running out of phone numbers, you can expect your local phone company to provide ample notification in the form of letters or bill inserts, giving you time to make the needed plans and adjustments.

However, do not expect to be notified of changes outside of your area code. Therefore, if your area code changes, it is up to you to notify those who call you from outside your area. Likewise, others will need to notify you should their area code change.

Conclusion

Dealing with new or changing area codes is not easy or enjoyable, but it is necessary to ensure that there is an adequate supply of numbers for future growth.

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer ServiceSticky Sales and Marketing, and Sticky Leadership and Management featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan is an entrepreneur and businessman who has managed, owned, and started multiple businesses over his career. Common themes at every turn have included customer service, sales and marketing, and leadership and management.

He shares his lifetime of business experience and personal insights through his books to encourage, inspire, and occasionally entertain.

Categories
Business

The Impending “Do Not Market” Threat

By Peter Lyle DeHaan, PhD

Have you heard about the onslaught of Do Not Market laws proposed at the local, state, and federal level? You haven’t? Well, there is good reason that this pending legislation has caught you unawares. The fact is that it doesn’t exist—per se.

Author Peter Lyle DeHaan, PhD

However, in reality there is a plethora of existing laws and proposed legislation that serve to significantly restrict how we all market our products and services.

In total, these well-intended but overreaching and imprudent bills combine to effectively amount to one massive Do Not Market law. What is at stake is our ability to promote our businesses and make sales.

Once these restrictions are placed on every business, the future of the U.S. economy and its viability as a nation will be in jeopardy.

Less you think this is hyperbole, consider what would happen if you were effectively prohibited from any and all marketing activities. You would be forced to rely on a “build it and they will come” approach to sales.

In effect, this would reduce your sales and marketing departments to the mode of reactive order-taker. What would happen to your sales numbers? Most likely business would decline, maybe even going into a free fall.

You would stop hiring and begin laying off staff; capital investments would be put on hold; expansion plans would be terminated. This would ripple through the economy, and a recession would follow.

Okay, I admit, this is a tad bit reactionary. But if we truly couldn’t do any marketing, this becomes a dreadfully real and inevitable scenario. Surely, you say, our elected officials wouldn’t go so far as to legislate our economy into disarray by prohibiting all forms of marketing—would they?

Let’s review:

  • For several years, we have been prohibited from sending unsolicited faxes. What was once viewed as an efficient and cost-effective alternative to direct mail was summarily made illegal. Nix the fax.
  • The bellwether bill was the national Do Not Call law and its numerous state counterparts. This devastated calling consumers. Given its immense public support and self-serving political expediency, we should also expect similar future limitations placed on contacting businesses via phone.
  • The CAN-SPAM Act of 2003 (yes, it was four years ago) put onerous restrictions on email marketing messages and solicitations. Since enforcement of this act is both challenging and cumbersome, it has yet to make a dent in spam, its intended target, which continues to grow unrelentingly. It has, however, given conscientious businesses pause in what content they include in email messages and to whom they send them. The honest have been dissuaded, while the crooks continue unabated. Plus, with the implementation of spam filters at numerous junctures along the path of an email message, there is serious doubt as to how often our carefully crafted and legally compliant messages actually get through to the intended recipient. To make things even more cumbersome on the law-abiding, there are proposed Do Not Email bills floating about.
  • Consider direct mail. The postal rate hike was discouraging enough, but many Do Not Mail bills are in the works as well. So, even if we can afford it, mailing promotional items may become moot.
  • Many other forms of marketing are facing restrictions on a local or regional basis, including billboards, the use of spotlights and PA systems, door-to-door selling, handing out flyers, the size and placement of signage, and so forth. Used wrongly, these can be deemed a nuisance by the buying public, but why should everyone be penalized for a few overzealous marketers?

What is left? Certainly broadcast marketing (radio and TV) is one option. With broadcast media, there are already many balanced, appropriate, and accepted laws on the books that govern ad content. Nothing more is in the works at this time.

Unfortunately, radio and TV are not effective media for many businesses and out of the question for many marketing budgets. Besides, with the proliferation of DVRs (digital video recorders), how many viewers are zipping past those television commercials anyway?

Concerning radio, be aware that more and more listeners are finding their music online, effectively bypassing commercial radio.

Perhaps the most viable remaining category is print media (newspapers, magazines, and newsletters). Like broadcast advertising, print media enjoys time-tested legislation that regulates what can and cannot be included in ads.

Print media can be distributed according to a subscription-based model (readers pay to receive it) or an advertiser-based model (companies pay for it to be sent to qualified individuals).

There are two challenges with print advertising. The first is finding the right publication that addresses your target audience. The second is designing an effective ad. Herein is the painful reality of print advertising: a great ad makes things happen; a bad ad does nothing.

Interestingly, the only threat to print advertising is not legal, but rather environmental, since no-longer-needed copies end up in the landfill. (This could be the impetus for future legislation.) T

o address the issue of paper waste, many publications offer electronic alternatives. Over 10 percent of Connections Magazine subscribers currently receive their copies this way; Byte magazine has been 100 percent online for over ten years. This is definitely a trend of the future.

Last, but certainly not least, is the Internet. In the World Wide Web there resides all sorts of interesting and intriguing promotional opportunities. Website sponsorships and banner ads are two prominent options.

Search engine advertising is growing at a phenomenal rate. Certainly, having a company website is a requirement. Trying to market in today’s economy without a website is a foolish and shortsighted endeavor, filled with frustration and wasted resources.

Increasingly, companies that lack websites are immediately dismissed by prospective customers, who view them as second rate or, worse yet, not even viable.

So faxing, calling, emailing, mailing, and broadcasting are increasingly limited marketing options (even when there is an “existing business relationship”).

The remaining opportunities exist in the worlds of print media and Internet marketing, which may well become the final frontier of advertising and emerge as the only effective and successful marketing medium in the future.

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer ServiceSticky Sales and Marketing, and Sticky Leadership and Management featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan is an entrepreneur and businessman who has managed, owned, and started multiple businesses over his career. Common themes at every turn have included customer service, sales and marketing, and leadership and management.

He shares his lifetime of business experience and personal insights through his books to encourage, inspire, and occasionally entertain.

Categories
Business

The Future is Now: Learning from Netflix

By Peter Lyle DeHaan, PhD

Go back with me a few years. Internet-centric companies were the next big thing. It was purported that they would change how business was done, render traditional commerce models obsolete, and usher in a new way of valuating companies—at historically unfathomable and untenable levels.

They were the dotcoms! Their basic premise was insightful, if not somewhat simplistic and naïve. With the pull of the ubiquitous Internet and the support of massive server farms, their business models (that is, their technological infrastructure) would be infinitely scalable, while customer service would be strictly self-service. This would keep costs down and the employee count even lower. Page hits and profitability would be the inescapable conclusion. Unabashed euphoria was everywhere.

The problem was that most people were not ready for and did not embrace self-service via the Internet. Not surprisingly, the dotcom bubble burst. Stock prices plummeted, bankruptcies ensued, and computer hardware was peddled for pennies on the dollar. Most dotcoms dematerialized even quicker than they had materialized. Some companies tried to retool, admirably adhering to the faltering dotcom mantra; it was an effort in futility.

A few insightful innovators listened to their customers and changed their paradigms, wisely supplementing their limited and lacking self-service Websites with full-service human beings. Call centers were built and staff was hired. The clamoring dim of the masses was largely satiated and these adaptable entities survived. Some even thrived, having found the perfect mix of massive computer technology and the personal touch.

But what about Netflix? Born in the dotcom era, Netflix embodies the highly scalable, self-serve model that had failed most. Not only has it succeeded, it has done so exponentially and most effectively. For the uninitiated, Netflix is an Internet-based DVD movie rental service. Members log into the Netflix Website, browse a selection of 70,000 titles, putting requested titles into their personal queue, where they prioritize their preferred delivery order. The first movie generally arrives via mail the next day. There are no due dates, no late fees, and no shipping charges. Once viewed, the DVD is returned via a prepaid self-mailer. Upon receipt, Netflix automatically sends the next movie in queue. Netflix’s 42 regional shipping centers manage 42 million DVDs and ship 1.4 million a day.

Their website includes movie write-ups, reviews, member ratings (1.5 billion of them), and recommendations for titles similar to what has been enjoyed by that member. Interestingly, Netflix customer service is 100% self-serve. [Netflix does have a toll-free number for prospective customers and an email address for media queries—which is how I found out about the toll-free number; I never did find it on their Website.]

With Netflix, there are no call center agents, no email support, and no text chat options. Its Website does have a help section; it is actually helpful. Its list of FAQs are truly questions that one might want to ask (I did); there is also context specific hints, instructions, and explanations. The site is quite intuitive and easy to use.

Given all this, is Netflix an anomaly or an indication of what is to come? Although it is currently atypical, it is also a model on how to effectively and successfully design a Website, support customers, and engage visitors. It is, or at least it should be, a peek into the future.

Although wide-scale defections from full-service options to self-service Websites is not an eminent threat, it is one, nonetheless. Businesses are therefore advised to pursue a two-prong strategy. The short-term—and continuously ongoing—initiative should be to look for ways to differentiate oneself from the competition. Make your company and services stand out; do what others don’t—or can’t; position yourself to be indispensable.

Long-term, be aware that commerce, in general, and customer service, specifically, will migrate to the Web. What can your business do to capitalize on this? The answer may have little to do with the business you currently run, but it will have everything to do with your long-term viability. Fortunately, there is time to consider, study, and plan for these eventualities, but preparation is requisite because this is a threat that won’t go away; ignoring it will be to your peril.

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer ServiceSticky Sales and Marketing, and Sticky Leadership and Management featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan is an entrepreneur and businessman who has managed, owned, and started multiple businesses over his career. Common themes at every turn have included customer service, sales and marketing, and leadership and management.

He shares his lifetime of business experience and personal insights through his books to encourage, inspire, and occasionally entertain.

Categories
Business

Anything for a Sale

Closing a Sale but Alienating a New Customer in the Process Is Bad Business

By Peter Lyle DeHaan, PhD

Back when my family had an entertainment subscription (aka cable TV), a new network launched, and we wanted to watch its shows. I wondered if my provider would offer it, but repeated contacts to our provider via email resulted in no responses. Next, I called them, but they couldn’t give me any answers.

Author Peter Lyle DeHaan, PhD

During this time, a direct mail piece arrived from their competitor. It offered an attractive price, free installation, and new equipment, including a DVR (remember DVRs?). This appealed to me since our receiver and remote (free promotional incentives from our existing provider) were wearing out. The DVR would be a bonus.

Say or Do Anything for a Sale

Upon calling the prospective provider, I talked to a helpful and confident agent, Karl. My first question was if they carried the network. Karl knew all about it and assured me they did.

Upon further digging, however, I learned we wouldn’t save money by switching. But changing providers would get us the new network and new equipment, including a DVR. I confirmed my understanding of what Karl said and placed my order.

A few days later, the installer arrived and set up the system. He gave a quick overview of its operation as he waited for the programming to download. I asked for the channel number of the new network. “I don’t know offhand,” he said, “but it’s there someplace. If you can’t find it, call this number.” He handed me an information sheet, which included a phone number. Then he left.

Thirty minutes later, and frustrated, I dialed that number. “I’m sorry,” the agent said. “I can only help you with installation issues, and this isn’t an installation question. You’ll need to call the provider.” (Karl, it turns out, worked for an authorized agent and not the company.)

The provider’s call center told me it would be an extra $5 a month to get the new network. Mad at this unexpected news, I called my buddy Karl. Unfortunately, he was no longer my buddy.

“I only deal with sales questions,” he said. “I can’t help you.” Then he hung up.

My wife, who is tenacious in righting wrongs and fixing the unresolvable, took over our quest to watch the new network. Over the next few days, she called Karl, the service department, the installation line, and the billing department, as well as any other number she could find.

Several days and too many calls later, she resigned herself to accept that I’d been had.

During our dealings, we’d received many conflicting explanations:

  • The network is part of your service package.
  • The network is available for only a dollar more a month.
  • The network is available for five dollars a month.
  • The network is not part of your local channels (even though it was broadcast locally).
  • The network is available everywhere but in your area.

There is much to learn from this saga. One miscommunication had widespread ramifications for us.

One person’s words, either by intention or ignorance, resulted in more than a dozen follow-up phone calls and a new customer who is angry and feels maligned. It will take much effort to overcome such a bad start.

As such, several recommendations are in order:

Training

If the miscommunication was out of ignorance, then better sales training could have averted the whole ordeal. Unfortunately, the payback from training isn’t directly quantifiable, while sales numbers are. This is a dilemma that sales managers must acknowledge and grapple with.

Call Monitoring

If the miscommunication was intentional, then some policing is in order. Active monitoring might have caught the error, could have uncovered the rogue employee, and certainly would have minimized all employees’ willingness to lie to close a sale.

Incentives and Measurements

What gets measured gets done, and what gets paid for gets done better. Again, if the miscommunication was intentional, then it was a calculated lie to make a sale.

Unfortunately, sales departments’ reward systems often serve to promote activity that’s detrimental to an organization’s overall best interests. Always keep the big picture in mind.

Third Party Accountability

Whenever a company hands off contact to an authorized agent, they need to hold the third party accountable. The parent company’s reputation is at risk, and they need to confirm they’re properly represented.

This involves more than just tracking monthly sales totals or the cost per sale.

Consistency

All staff must have the same information, supported by the same technology, and reinforced by training. This helps to ensure they’ll give customers the right answer—every time.

Furthermore, they must synchronize this with their websites and coordinate it with marketing pieces. This supplies a singular answer for every employee, spread across multiple channels.

Quickly Salvage Mistakes

There’s a ripple effect when a mistake happens. This occurs both within the company as more people are pulled into the problem, as well as outside the organization as others hear about the issue. Both take their toll.

Empower front-line employees to act and to solve pressing issues, not just be encouraged to end the call so they can take the next one.

Problem Resolution

After many calls, an agent finally apologized, but no one ever said, “What would you like done to resolve this?” No one ever suggested a course of action or recommended a solution.

We never did get the network we wanted from that provider, but Karl, who will say anything to close a deal, did chalk up a sale.

Sales Management Success Tip

Don’t look at sales numbers in isolation. Instead. consider how sales and marketing initiatives fit into your company’s overall long-term goals.

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer ServiceSticky Sales and Marketing, and Sticky Leadership and Management featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan is an entrepreneur and businessman who has managed, owned, and started multiple businesses over his career. Common themes at every turn have included customer service, sales and marketing, and leadership and management.

He shares his lifetime of business experience and personal insights through his books to encourage, inspire, and occasionally entertain.

Categories
Business

Customer Since 1978

By Peter Lyle DeHaan, PhD

It was an emotional moment for me. After proudly carrying and using a Shell gasoline credit card for more than 20 years, I canceled it and was in the process of cutting it up.

Not that I was angry or upset with Shell, but it no longer made sense to carry their card. You see, Shell, in conjunction with Chase Manhattan, had launched the Shell Master Card. If I used it for my Shell gasoline purchases, I would receive five percent off my fuel expenditures on my next statement.

Author Peter Lyle DeHaan, PhD

For all non-gas purchases, I would earn a one percent rebate on future gasoline. Therefore, I could use the card for more than just gas and get discounts, too. In comparison, my old trusty Shell gas card was an absolute antique. The only practical thing to do was to cancel it.

How did this long-term relationship with Shell start? It was 1978. I was attending electronics school and found myself changing jobs often and moving just about as frequently.

During one such transition of both employment and abode, I found myself on the other side of town, far away from the gas stations whose credit card I carried.

However, there was a Shell station around the corner from my ramshackle apartment, one down the street from the TV station where I worked, and another next door to the school I was attending. Add to this a gas shortage, skyrocketing prices, and Shell’s tendency to not only have gas, but to be one of the less expensive options.

This led to an easy decision to get a Shell credit card. It all began due to practicality, convenience, and frugality.

Of course, it wasn’t long before I finished school, got a “real” job, and moved again. To my delight, there were Shell gas stations both near the office and close to my new home. Soon thereafter, I married and it was a simple matter to order a second card for my wife.

In the years that followed, through job changes and relocations, there always seemed to be a Shell gas station nearby. A habit was formed. By then, even at times when Shell didn’t have the lowest prices, little thought was given to going somewhere else.

This is a lesson for anyone selling a commodity product or service: availability, convenience, and consistency produce long-term customers.

Fast-forward to a couple of years ago when the Shell Master Card was introduced. At first, I viewed their offer with skepticism, but there didn’t seem to be a downside. I could continue my Shell gasoline habit, reduce my overall gas costs, and have a more versatile card.

We applied for the card and begin using it immediately. Even so, I anxiously awaited the first statement, worried about a hidden snag or unanticipated caveat. None appeared, just my rebate to be applied to next month’s gas charges. Still the cynic, I cautiously anticipated my second statement.

Was there some fine print to let them wiggle away from the result I expected? No. The rebate occurred exactly as indicated and for the amount promised.

Even so, my old Shell card remained in my wallet – just in case. Finally, after a year of non-use, I realized the time had come to throw aside any emotional connection to my long-term companion.

It was time to cancel the card. I glanced one last time at the words I had grown to delight in – “customer since 1978” – and cut the card into pieces.

Soon the Shell Master Card was used for all our household purchases and the ensuing rebates grew. Things went well for quite some time. Then a surprise came on our statement, a $29 late fee.

My wife, Candy, called Chase Manhattan to inquire. Since our payment history was stellar and Candy can be most persuasive, it was a trivial matter to get the charge removed. We were admonished to mail the payment earlier in order to avoid future late fees.

The next month, Candy mailed our payment five days before the due date. Again, another $29 late fee appeared. This time she called to complain.

“We don’t care when you mailed your payment nor do we consider the postmark,” came the arrogant reply. “We only look at the date we post your payment.”

Apparently, this was a change in their policy. Plus it seemed a bit despotic, especially considering that our payment was applied eight days after it was mailed.

“But we have no control over when you process our check,” Candy countered.

The agent’s response was quick and terse, “We always post payments on the day they are received.”

No amount of pleading or cajoling could get the late fee removed a second time. The complaint was escalated and soon the only remaining recourse was to submit our concern in writing.

Our letter of complaint was submitted as instructed and a series of automated written responses from Chase Manhattan followed. The last one promised the company would “notify (us) of our findings as soon as they become available.”

That was nine months ago. There have been no further communications from them about this matter.

Since the late fees were exceeding our rebates, we stopped using the Shell Master Card and begin buying our gasoline using an existing Visa card. This afforded us a new level of flexibility since there was no longer any need to continue our routine of looking for a Shell sign.

We could also shop for the lowest-priced gas. (When we used the Shell Master Card, the rebate would more than offset any higher price we paid for their gas.) It soon got to the point that we were seldom going to Shell.

Over the past 24 years, I estimate that we have spent about $20,000 on Shell gas. Assuming that our future gas consumption will remain constant and projecting that prices will increase, we could likely spend another $30,000 on gasoline in our lifetimes.

In line with this projection, a $50,000 lifetime customer and $30,000 in future business was lost due to a $29 late fee and the policies supporting it.

What are the conclusions we can draw from this experience?

The first is to be careful in pursuing strategic alliances. Yes, this is a business trend and, when properly done, it is a great way to retain clients and obtain new ones.

I am sure that Shell saw these benefits, which is why they formed a relationship with Chase. The failure in their strategy is that they relinquished interaction with their patrons to Chase.

Chase did not view me as a $20,000 customer or foresee a $50,000 lifetime value; they likely saw me only as an unprofitable credit card holder (since we always pay the entire balance each month and, until the end of our relationship, continually paid on time).

Hence, when forming any kind of marketing, cross-promotion, or reciprocal business relationship, make sure you retain control over your clients; don’t leave such a critical element to someone else.

The second lesson is about policies. Certainly Chase’s policy to track late fees and interest charges by the date posted is practical and easy to follow (as well as being self-serving), but is it fair?

Care must always be given to ensure that policies and procedures balance the needs of the company with the best interests of the client.

Lastly, consider your staff. The agents Candy talked to did not have the latitude to credit a late fee more than one time. Apparently, their supervisors didn’t either, nor did the managers.

Yes, there is a place for rules and policies, but to make them absolute and intractable, unfairly handicaps agents and can ruin client relationships. The last words that a frustrated client or caller wants to hear are, “It’s our policy,” or “I can’t do that.”

Because of these problems, caused by a partner company, Shell, through no direct fault of its own, has lost me as an exclusive customer and has encouraged me to spend money with its competitors.

[Postscript: We since received a notice from Chase stating in part, “Shell will no longer be participating with Chase in a credit card program.” Do you think that perhaps Shell has realized what I’ve just pointed out?]

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer ServiceSticky Sales and Marketing, and Sticky Leadership and Management featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan is an entrepreneur and businessman who has managed, owned, and started multiple businesses over his career. Common themes at every turn have included customer service, sales and marketing, and leadership and management.

He shares his lifetime of business experience and personal insights through his books to encourage, inspire, and occasionally entertain.

Categories
Business

It’s All Virtual

By Peter Lyle DeHaan, PhD

As I contemplated my publishing business, I was struck with the realization that I had structured it as a virtual company. This wasn’t intentional; it just worked out that way.

Not only am I the only one working in the “corporate office,” there are no local vendors either. Indeed everyone who takes part in the production of our magazine is from out of state – different states!

Author Peter Lyle DeHaan, PhD

Dave, our layout genius and designer extraordinaire is in Pennsylvania. His work gets sent over the Internet to our printer in Ohio. There they work up the proofs and put them on an FTP site for Dave and me to review and then approve.

The mailing list is maintained by myself in Michigan. For each issue, I output the file and email it to our list processor. They massage the data and sort the list, in turn forwarding it to our printer.

The printer merges the mailing list with the magazines and delivers them to the post office. An army of postal carriers deliver the finished package to your home or office.

The newest member of the team is Valerie, our media rep., in New York; she handles the display advertising sales. As editor, I plan, solicit, collect, and edit the articles and press releases. Finally, our websites are hosted by a in Arizona, but I update the content remotely from Michigan.

I have never met any of these fine people in person. We conduct business via telephone and make frequent use of email. Each issue is produced without any face-to-face interaction.

For our first issue, this was somewhat disarming and disconcerting, but I am convinced that the result is better than if we all worked together in the same office.

True, we miss out on some synergy, incidental communication, and camaraderie, but we are also each free to do what he or she does best and to do so with minimal outside distraction and interruption. As Bill Murray said in the movie “Stripes,” “We’re a lean, mean, fighting machine!”

I theorize that most organizations could similarly be configured as a virtual operation. Over the years I have run into more and more situations where aspects of a business are outsourced, including billing, accounts payable, and general ledger.

They hire a computer support firm to maintain equipment, an ad agency to do marketing, and an independent sales agent (in the spirit of a “manufacturers” rep) to generate sales. Not that any single company outsources all of these functions, but many companies outsource some.

It is important to note that “outsource” does not necessarily imply another country. Indeed, despite media attention to the contrary, the majority of outsourcing occurs to business within the same country.

Conventional wisdom says that you don’t outsource your “core competencies.” However, there are those who advocate that you can indeed, farm out your core competencies as well. What if someone else can do it even better – or cheaper?

What if your labor market has near zero percent unemployment or if you’re just plain tired of the HR aspect of the business? All of these are prime reasons to consider outsourcing your operations. In fact, I am aware of several companies which have done or are doing so.

Outsourcing the operations aspect for a start-up can solve many problems and conserve cash flow while a base of clients is being amassed; then it is all moved in-house. Others have opted to form permanent outsourcing arrangements either out of necessity or preference.

The end result is that there are no staff working in their office!

There are essentially six areas of focus and effort for most organizations: operations, customer service, sales and marketing, technical, accounting, and management. I have yet to see one company do all six with aplomb and excellence, yet any viable concern excels in at least one area.

Even the strong players master only two or three. In fact, some of the most profitable companies are, at best, average at five of the six, but because of a strong, visionary, and capable management, they consistently generate outstanding profits.

Since no one can master everything, it is pragmatic and even wise to consider outsourcing the weak areas of your company. Then you can focus on what you do best and your company will be better as a result. After that you can consider taking it to the next level and outsource the rest.

Ultimately, you too, could become a virtual company; a company of one!

As you begin looking for outsourcing partners, you must be careful in your selection. A bad choice can be costly or even crippling, but it can also be quickly corrected by merely finding a new firm to handle that aspect of your business.

Those who have outsourced their operations did not put “all of their eggs in one basket,” but have divided the work between multiple vendors. No more than 50% of your business should go to any one place; this gives you greater flexibility and minimizes risk.

You should scrutinize an outsourcing partner just like you would any other vendor. “Look before you leap.” Referrals are valuable; check references.

When outsourcing operations, unless they come highly recommended, visit them in person.

  • What does their facility look like?
  • Are they big enough to handle your work? Are they small enough to care about your account?
  • Do you have a good rapport with and respect for the key people in their company?
  • Is there the potential for a long-term business relationship?

Last, find out who will be your primary contact on a day-to-day basis.

  • How well do you mesh with that individual?
  • What is their anticipated future tenure with the company?
  • Should this contact leave, will your satisfaction with the outsourcer’s service disappear as well, or will someone else be capable and able to take over without impacting your organization?

Certainly, no outsourcing agreement should be entered into lightly or without due diligence, but when it is properly executed and for the right reasons, the results can be both liberating and profitable.

This is not to advocate that everyone needs to look into outsourcing, but it does offer some intriguing opportunities and is certainly another option to consider as you look to the future and consider how to make your company better—and more profitable.

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer ServiceSticky Sales and Marketing, and Sticky Leadership and Management featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan is an entrepreneur and businessman who has managed, owned, and started multiple businesses over his career. Common themes at every turn have included customer service, sales and marketing, and leadership and management.

He shares his lifetime of business experience and personal insights through his books to encourage, inspire, and occasionally entertain.

Categories
Business

What I Learned on My Summer Vacation

By Peter Lyle DeHaan, PhD

This fall, the thoughts of school age children everywhere are focused on returning to school. Some approach the new school year with dread and trepidation, a few with excitement and high expectation, and others with inevitable acquiescence and acceptance.

Regardless of their personal perspective, many will be faced with the traditional writing assignment, “What I Did on My Summer Vacation.”

What I did, or more precisely, what my family did on our summer vacation is not noteworthy or unique as far as family vacations go. True, the time together as a family was special and the memories will last forever.

The time of bonding, through both the high points and the not so high points, fostered a deepened understanding of each other and a renewed respect for our individuality and divergent personalities.

My daughter summed it up succinctly, “Ya know, this is kinda like a once-in-a-lifetime thing!”

Family issues aside, it was also a vacation for me. It is one thing to take a vacation from the office; it is another to take a vacation from work. Taking a vacation from the office means you aren’t there physically, but you’re still there mentally.

Taking a vacation from work, means leaving work behind completely. That was my goal; one that I accomplished with a considerable degree of success. Nevertheless, our vacation experience did bring to mind some workplace lessons.

Our vacation was a pull-out-all-the-stops, eight-day adventure at Disney World. The Disney experience and their unique vision for achieving high “customer satisfaction” is legendary and has been the focus of many a discourse.

While true and correct, customer satisfaction was not the central theme of the three insights I gained.

Change Is Not Only Inevitable, It Is Also Necessary and Must Be Ongoing

At each of the parks we visited, we would see signs of change. At Epcot Center, one whole attraction was being demolished; at MGM, shows present just a few months prior were nowhere to be seen, replaced with newer, fresher alternatives.

The Magic Kingdom had one area boarded up with the simple explanation, “New attraction under development.” Some rides were shut down for “maintenance,” other areas were being expanded, and new developments were being squeezed in where space permitted.

Even Disney, with its reputation as the premier family entertainment company in the world, is continually reinventing itself. If this is necessary for them, then it is all the more true for us.

If you’re not making an ongoing effort to keep your business fresh and moving forward, then the rest of the industry is going to pass you by; don’t get left behind. The moment you assume that you have everything in place could signal the beginning of the end for your organization.

Nothing Lasts Forever, No Matter How Good the Idea

Several standard fixtures of the Magic Kingdom had been impacted by the march of time. The ride 20,000 Leagues Under the Sea was no more; the lagoon still exists, but the attraction has disappeared. The Tiki-Hut was “Under New Management,” and “It’s a Small World” was, well, smaller – the portion of the ride outside of the building had been eliminated.

Even Disney, which has been thus far successful in re-releasing its animated movies every seven years for a new batch of kids, knows that no attraction will draw visitors and hold their interest perpetually. The same is true for all organizations.

No innovation will last forever, no paradigm is without end, and no idea cannot be bettered. Today’s revolutionary, earth-shattering development is nothing more than tomorrow’s status quo.

Staffing Is Key

Despite all of the technology, all of the marketing, and all of the organization and structure, the key to Disney World’s ongoing success resides with its people.

As I watched Disney employees in action, their performances (remember, all Disney employees are “cast members”) were on a higher level than any other organization I’ve encountered.

Certainly they outshone everyone at the airline, which brought us to Orlando, as well as the employees of the shuttle bus company, which took us from airport to hotel, but they also outpaced those at other theme parks. How?

Quite simply, they acted as though they enjoyed their work. They appeared to be saying, “I have a choice on how I do my job. I can do what’s minimally required to get by or with little more than an attitude change, I can make my job really enjoyable – for both myself and those around me.”

I assume their training played a big part in this, but I also saw many of them switch jobs frequently and conclude that variety and variation played a key role as well.

These are lessons we can apply directly to our businesses. Yes, we all advocate training, but do we really practice what we preach? Do we provide ongoing training, as well as coaching, mentoring, and career-path development?

All are required if we are to have employees who outshine the competition. In short, do we merely give our staff enough training and support to get by or do we give them enough training so they can excel?

Summary

It is highly unlikely that your organization will ever achieve the status or prominence of Disney. However, we can all aspire to improve our business and take it to the next level.

Rather than be overwhelmed by the formative challenge that the Disney example sets and the enormity of the task before us, we are well advised to start small and put things in proper perspective by recalling the humble words of Walt Disney himself when he stated, “Remember, it all started with a mouse.”

Key Lessons

  • Change is Inevitable and Necessary: Make an ongoing effort to keep your business fresh and moving forward.
  • Nothing Lasts Forever: The edge your business enjoys today will not sustain it tomorrow.
  • Your Staff is the Key: Give your employees the training needed to excel.

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer ServiceSticky Sales and Marketing, and Sticky Leadership and Management featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan is an entrepreneur and businessman who has managed, owned, and started multiple businesses over his career. Common themes at every turn have included customer service, sales and marketing, and leadership and management.

He shares his lifetime of business experience and personal insights through his books to encourage, inspire, and occasionally entertain.

Categories
Business

Successfully Submit Press Releases and Informative Articles

Adhere to Best Practices, Follow Guidelines, and Write for Your Audience

By Peter Lyle DeHaan, PhD

Consider this: “ABC Company, a strategic provider of advanced business technology applications to facilitate organizational utilization of game-changing convergent networks, announced today the release of its unprecedented Widgetizer solution, which is guaranteed to revolutionize existing technological infrastructures overnight.”

This is a fictitious example of an all-too-common press release. It’s a lesson in how not to submit press releases. On any given business day, I receive multiple news announcements and an article or two. Only a small percentage ever make it into print or get posted online.

Author Peter Lyle DeHaan

Although the practical restriction of limited space in a printed medium is one reason, the reality is that most submissions were doomed from the start—much like the above example of verbosity.

Whether submitting a press release or trying to place an article, when you seek publicity, understanding how publishing works is the first step toward successful placement.

Target Your Submissions

When submit press releases or content to a periodical is not like shooting a shotgun, where pellets disperse in a general area with the hope of some hitting the target.

Rather, getting published is more like firing a rifle, where a single, carefully aimed bullet has a good chance for success when you submit press releases. True, not every shot will hit, but the chances are much greater than just blasting off a shotgun in all directions.

With email, the temptation is to fire off hundreds of messages at every possible target, regardless of how relevant. Doing so, however, reduces your thoughtfully composed prose to spam, earning it a quick end and damaging your reputation as an email marketer.

A carefully targeted approach is a better way to go.

Know Your Target

My first article submission was published. This gave me a false sense of success. I assumed getting published was easy. The reality was that I knew the target publication. I’d been a subscriber for years. I faithfully read each issue and understood the content and style of the articles they used.

The same applies when you submit press releases.

Tap Online Resources

Most periodicals have websites, which often post useful information for aspiring contributors. The first step is to check their website for direction.

My publications’ websites, for example, give guidelines for writing and submitting articles and press releases, including the preferred length, the method of submission, writing style, and so forth.

Limit Communication

In today’s publishing world, some editors will respond to emails about submissions, but most do not. Contacting them when you shouldn’t will just irritate them. Only reach out when needed and according to their online submission guidelines.

At best, hope for a brief response. Today’s editorial staff must do more, in less time, and with fewer resources. Don’t take it personally if they ignore your email or send a terse reply. Make the best of any communication and move forward.

Know Your Subject

My first article was “All About Pagers.” I knew the topic well, working for a paging company and with several years of experience. You’d think my writing would have flowed easily. It did not.

As I began to write, I realized how much I didn’t know. Fortunately, I was able to find the missing pieces and fill in the gaps. The result was an informative submission that clicked with the editors.

It’s easy to spot—and dismiss—authors who write about things they don’t understand. Don’t be one of them.

Follow Directions

The quickest way for you to be ignored when you submit press releases and articles is to assume the rules don’t apply to you. Editors more readily use material that follows their guidelines and needs less editing.

They don’t make rules just because they can, but to make the process easier for everyone.

If they request your submissions via an email attachment (my preferred method), then do it. Other publications avoid attachments and prefer the text be in the body of the email.

Also, if a piece is too long, the publication will edit it for length. The reality is, when an editor is on deadline or pushed for time, content requiring significant editing will often be delayed or deleted.

Increase your chances of publication by simply following directions.

Don’t Miss Deadlines

Deadlines exist for a reason. Without them, a publication would never make it to the printer. Be aware and follow submission deadlines (usually posted online and printed in each issue).

If you promise an article by a certain date, don’t miss it. If you want your hot news item to be in a specific issue, get it in on time; sooner is better. Weekly papers—and especially magazines—have a much longer lead-time than most people imagine, so be aware of it and adhere to it.

Third Person Preferred

Writing objectively in the third person gives your piece integrity. It’s more credible. First person is never acceptable in news releases as it comes across as self-serving, bragging, or unnecessarily introspective.

Always write press releases as an impartial third party. Articles generally work best in this same style. Notable exceptions are how-to pieces and first-hand accounts—such as this book. If you have any doubt about which style to use, act like a reporter and write in third person.

Proofread Carefully

Too often, I receive press releases and articles that have serious errors. Some writers didn’t even bother to spell-check their work. This is a sure way to lose credibility and frustrate an editor. Make their work easier by double-checking yours.

Enlist the help of a coworker or hire your own editor. It’s not realistic to successfully proof your own work. This is because you know what you intended to write, so that’s how you read it, easily overlooking errors and mistakes.

Expect Edits

It’s tough to work hard on a piece only to have someone else change it. Similarly, it’s easy to become enamored with what you wrote, wanting to see it published verbatim. But this is unrealistic.

Even the most experienced authors have their work edited. This can be for many reasons. A common one is length, another is style, and a third is content suitability.

Sometimes giving a piece a different slant makes it better fit a publication’s focus. Or an editor may remove a section because it doesn’t work well with the issue.

Although some publications have a reputation for twisting, manipulating, or even corrupting an author’s work, most make a good-faith effort to retain the writer’s intent and present their work in a positive way.

Avoid Hyperbole

The more spectacular the language, the less believable it is. Overused words include “unique,” “revolutionary,” “leading,” and “premier.” Avoid them in your writing.

Exaggerated copy and unsubstantiated claims only serve to push away readers and weary editors. Yes, clever wording has its place, but when it surpasses the message, something is wrong, and clear communication doesn’t occur.

Conclusion

There’s no guaranteed way to get your news item or article published, but implementing these ideas will increase the chance of that happening.

Marketing Tactics Success Tip

The more effort you put into crafting a professional and engaging piece for a publication or website, the greater the likelihood of having it published.

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer ServiceSticky Sales and Marketing, and Sticky Leadership and Management featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan is an entrepreneur and businessman who has managed, owned, and started multiple businesses over his career. Common themes at every turn have included customer service, sales and marketing, and leadership and management.

He shares his lifetime of business experience and personal insights through his books to encourage, inspire, and occasionally entertain.