January 2014 Office Technology by Business Technology Association

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CONTENTS Volume 20 • No. 7

FEATURE ARTICLES 10

Digital Signage And now for something completely different

P R I N C I PA L I S S U E S Nuance Sees Success Company highlights acquisitions, partnership

by Brent Hoskins Office Technology Magazine

While digital signage may seem very “different” to many dealers, others are either already finding success in the product category or they are taking steps to move forward.

Opportunities & Strategies Dealers share expectations, advice for the new year

by Elizabeth Marvel Office Technology Magazine

Nuance Communications’ Imaging Analyst Day was held Dec. 12, 2013, in Miami, Fla.

MPS Profitability It is important to have the right infrastructure

by Brent Hoskins Office Technology Magazine

Having the right infrastructure in place is imperative to maximizing profitability.

Compiled by Brent Hoskins Office Technology Magazine

In 2014, what do you believe will be the areas of greatest opportunity for office technology dealers? What do you believe will be the best strategies for success in pursuing those opportunities?

SELLING SOLUTIONS Communication Habits Who are you trying to make comfortable?

Customer-Driven Changes Two key trends transforming the way we do business

by Troy Harrison SalesForce Solutions

Salespeople have communication habits that turn out to be both time-wasters and contact-breakers.

by Laura Blackmer SIICA

There are at least two key trends that are transforming the way manufacturers and dealers do business: the customer’s changing workflow and a focus on solving customer problems.

by Steve Waterhouse Predictive Results

Inbound Marketing Facilitating social media, blogs & e-books by Frank Topinka National Printer Repair Network

Many dealers seem happy with their Web presence, but the real question is: “How many prospects are you capturing with your website tools?” The answer is probably “none.”

COURTS & CAPITOLS 30

Growing Sales Hire top performers & use personalized motivation

The Affordable Care Act What does it mean for your dealership? by Robert C. Goldberg BTA General Counsel

It seems that not a day goes by without something in the news about the Affordable Care Act (ACA). What does this legislation mean to you and your dealership?

Hiring more salespeople is one of the least predictable ways to grow sales. So, what is the best way?

Failed CRM Rollouts Sometimes, essential requirements are not met

by Tibor Shanto Renbor Sales Solutions

Why do many customer relationship management (CRM) system rollouts fail?

D E PA R T M E N T S Business Technology Association

• BTA Highlights

Executive Director’s Page

BTA President’s Message

Advertiser Index

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EXECUTIVE DIRECTOR’S PAGE

Dealers Share Top 2014 Opportunities

n 2014, what do you believe will be the areas of greatest opportunity for office technology dealers? What do you believe will be the best strategies for success in pursuing those opportunities? Recently, I asked these two questions of Office Technology magazine dealer readers via email. My hope is that the responses will provide you insight and new ideas that could help to guide you in your business. Below are seven of the responses received. See pages 16-19 for additional submissions. Opportunities: “Managed network services [MNS] sales and support.” Strategies: “Acquire a local IT provider with talented tech staff and a good B2B customer base that can be maintained and grown.” — Dean Boring, president & CEO, Boring Business Systems, Lakeland, Fla. Opportunities: “I believe the biggest opportunity for us this next year will be in MNS.” Strategies: “The best strategy as I see it is to expand our resources and focus in that area. We have hired a new representative who has extensive experience in IT infrastructure to help lead the charge in our MNS space. He will be able to direct both selling and the on-boarding efforts and, working closely with the sales department, we expect to grow that division significantly in 2014.” — John Eckstrom, president & CEO, Carolina Business Equipment Inc., Columbia, S.C. Opportunities: “Develop a managed services business plan or review and refine your current one. This is a huge business opportunity for all BTA members.” Strategies: “There continue to be three: Buy, build or collaborate with a third party as an initial step. If just starting, I would

include all three in the business plan.” — John Kuchta, president, SolutionOne, Lincoln, Neb. Opportunities: “For us, we will be pushing network and structured cabling, VOIP, hospitality solutions and maybe the cloud.” Strategies: “Using our past success, focused group presentations and having our sales team be much more visible.” — Roger Worme, general manager, Regional Business Systems, St. Michael, Barbados Opportunities: “Capturing more customers in this mature market as competition wanes. Solutions and IT represent more things to sell to the customer, increasing overall revenue per customer.” Strategies: “I see a swing back to good sales and good customer service. The reps have to know the solutions to set themselves apart. It is a given that pricing is competitive. Service in the maturing market will stand out.” — Nick Lioce, president, The Lioce Group, Huntsville, Ala. Opportunities: “I think managed services is the greatest opportunity and we are excited about the growth in our managed print services.” Strategies: “I believe acquiring a small computer services firm would be the best way, if we can find one.” — Tom Welter, president, The Lang Company, Louisville, Ky. Opportunities: “I would have to say for us, we are still seeing a lot of interest and opportunity in document management and workflow applications.” Strategies: “Our best strategy, since the expansion of our facility, has been consistent quarterly lunch and learns for our clients and prospects. When we get them to our facility they really see what we can bring to the table as a company to help them streamline some of their processes.” — Tom Ouellette, president, Budget Document Technology, Lewiston, Maine n — Brent Hoskins

Executive Director/BTA Editor/Office Technology Brent Hoskins brent@bta.org (816) 303-4040 Associate Editor Elizabeth Marvel elizabeth@bta.org (816) 303-4060 Contributing Writers Laura Blackmer, SIICA www.sharpusa.com Robert C. Goldberg, General Counsel Business Technology Association Troy Harrison, SalesForce Solutions www.salesforcesolutions.net Tibor Shanto, Renbor Sales Solutions www.sellbetter.ca Frank Topinka, National Printer Repair Network www.nprn.net Steve Waterhouse, Predictive Results www.predictiveresults.com

Business Technology Association 12411 Wornall Road Kansas City, MO 64145 (816) 941-3100 www.bta.org Member Services: (800) 505-2821 BTA Legal Hotline: (800) 869-6688 Valerie Briseno Membership Marketing Manager valerie@bta.org Mary Hopkins Database Administrator mary@bta.org Teresa Leerar Bookkeeper teresa@bta.org Brian Smith Membership Sales Representative brian@bta.org Photo Credits: Fuse, Ingram Publishing, iStockphoto, Wavebreak Media. Cover created by Bruce Quade, Brand X Studio. ©2014 by the Business Technology Association. All Rights Reserved. No part of this publication may be reproduced by any means without the written permission of the publisher. Every effort is made to ensure the accuracy of published material. However, the publisher assumes no liability for errors in articles nor are opinions expressed necessarily those of the publisher.

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BTA PRESIDENT’S MESSAGE 2013-2014 Board of Directors

Take Full Advantage of BTA Membership

f you are already a member of the Business Technology Association (BTA), then you have an awareness of the many great benefits it offers its dealer members. But are you taking full advantage of the various benefits that membership offers? Certainly, we are all very busy in our jobs each day and it is easy to set things aside that are outside of the daily routine of our dealerships. However, by taking advantage of your membership in BTA, you will find that you are helping your business, often to the benefit of your bottom line. With the arrival of 2014 comes a great opportunity for new beginnings. Allow me to suggest this addition to your list of resolutions for the new year: “To visit www.bta. org, review the full list of member benefits and work to ensure I am taking full advantage of my BTA membership.” It only makes sense. After all, this is your association. To give you a head start, here is a look at a few of the many member benefits available: BTA Legal Services, Sample Contracts & Agreements: BTA General Counsel Bob Goldberg provides members with no-fee advice and guidance on a diverse range of topics, including dealer/manufacturer disputes, dealer contracts, employment matters, legislative issues and more. In addition, the association has developed a library of sample contracts, agreements, forms and proposals for members to use to guide them in developing their own business and legal documents. BTA District Events: Dealer members will receive a discount when registering for any of BTA’s five 2014 district educational and networking events. These events provide ideal opportunities to learn from industry experts, network with other dealers

and interact with exhibiting sponsors. Shipping/Freight Discounts: Members are eligible to receive exclusive discounts and preferred pricing with the leading transportation providers in the industry. BTA has partnered with UPS, FedEx and YRC. Whether you ship envelopes, packages, crates or pallets, these carriers can provide a solution. Free & Discounted Research Reports: BTA provides a variety of informational resources, all designed to help members better understand the latest industry trends and improve the profitability of their companies. Members can download the annual Channel’s Choice Report and Benchmarking Series Reports at no charge, and purchase the Business Equipment Quota Index (BEQI) for their state or MSA at a discount. Ask the Analyst: Through an alliance with InfoTrends, the Weymouth, Mass., market research firm, BTA members can submit questions via email for an InfoTrends’ analyst to address. There is no charge. Past questions and answers are archived on the BTA website as a resource for dealer members. BTA’s Building My Business Webinar Series: Each month, BTA hosts a webinar designed to help dealers improve the management of their companies and take full advantage of market opportunities. The webinars are open to members only. And here is one more particularly appropriate addition to my list: Did you know you can receive up to four free copies of Office Technology magazine each month? Just email the list of those individuals in your dealership who should be receiving the magazine to mary@bta.org. This is a good start, but see the full list of BTA member benefits at www.bta.org/ MemberBenefits. I bet you will be surprised by how much your association has to offer. n — Todd J. Fitzsimons

President Todd J. Fitzsimons Automated Business Solutions DBA Network Imaging 122 Spring St., Ste. B3 Southington, CT 06489 tjfitzsimons@ni-ct.com President-Elect Ron Hulett U.S. Business Systems Inc. 3221 Southview Drive Elkhart, IN 46514 ron.hulett@usbus.com Vice President Dave Quint Advanced Systems Inc. 2945 Airport Blvd. P.O. Box 57 Waterloo, IA 50704 dquint@asiowa.com BTA East Rob Richardson Allied Document Solutions & Services Inc. 200 Church St. Swedesboro, NJ 08085 robr@ads-s.com BTA Mid-America Dan Castaneda International Copy Machine Center 1515 Lee Trevino, Ste. EE El Paso, TX 79936 dan@icmc-elp.com BTA Southeast Linda Hayes Purcell’s Business Products 222 E. 1st St. Campbellsville, KY 42718 linda@purcells.com BTA West Mike Ehlers Yost Business Systems 685 E. Anderson Idaho Falls, ID 83401 mike@yostonline.com Ex-Officio/Immediate Past President Terry Chapman Business Electronics Corp. 219 Oxmoor Circle, P.O. Box 531066 Birmingham, AL 35253 tchapman@businesselectronics.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Finkel Newman & Rosenberg LLC 222 S. Riverside Plaza, Ste. 2100 Chicago, IL 60606 robert.goldberg@sfnr.com

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Digital Signage And now for something completely different by: Brent Hoskins, Office Technology Magazine

oday, there is no shortage of discussion regarding the changing nature of the office technology industry. As a result, dealers are increasingly looking to augment their current portfolios with product categories once far outside the scope of the traditional lineup. Case in point: Digital signage. As the Monty Python troupe used to say: “And now for something completely different.” While digital signage may seem very “different” to many dealers, others are either already finding success in the product category or they are taking steps to move forward. Currently, for example, Toshiba America Business Solutions Inc. (TABS) dealers across the country have or will soon receive their Virtuoso interactive display demo units, ordered during the company’s November LEAD 2013 dealer and end-user meeting in Orlando, Fla. Virtuoso is a platform for displays within the company’s new Ellumina Digital Signage Services, which also offers the Experience Manager platform for larger, passive digital signage intended to capture someone’s attention, inform, entertain and communicate. Market conditions led to the launch of Ellumina, says Bill Melo, vice president of marketing, services and solutions for TABS. “Probably the most important external factor in our industry today is that print volume is going down at a rate, in the U.S., between, conservatively, 2 percent and, at the high end, 8 percent per year,” he says. “Even though our dealers will be able to outrun that in the short term, moving pages from desktop printers to MFPs or from black and white to color, etc., in the long term — and we are talking five to six years — it will be difficult to outrun that.” With that reality in mind, “while our historic core business is still the biggest business in which we participate, we have to start to augment our revenues,” Melo explains, noting that workflow and capture solutions are now a second key area of emphasis at Toshiba. “Digital signage, then, becomes the ‘third leg’ of our offerings to customers.”

The addition of digital signage makes sense, Melo says. “The reason people are printing less is not because there is less information; there is exponentially more information available and being processed all the time,” he explains. “The reason there is less paper is because people are consuming the information on screen. It could be a computer screen, but more and more it is smartphones and tablets, etc. So, there is a shift from paper to these digital and screen-oriented ways of managing and consuming data.” The rationale for the launch of digital signage products through the dealer channel is that it further supports the goal at Toshiba “to be the company that helps our clients manage data and information regardless of whether it is printed, stored in digital format, going through some sort of workflow in a purely digital format, but not being viewed, or being viewed, consumed and manipulated through some sort of touch screen,” Melo says. “So, the whole gamut — from print to digital to touch screen — is our business, helping customers manage their business communications.” By providing its dealers a means to enter the digital signage market, Toshiba is providing them an opportunity to participate in a $7 billion business in the United States, Melo says. “It is about a third the size of the copier/printing business,” he explains, “but it’s growing a heckuva lot faster.” Kevin Schroll, senior product marketing manager for large format displays in the Enterprise Business Division at Samsung Electronics America Inc., supports the assertion. “A growth rate of 15 percent has always been the conservative number that is used, though different people will give you different numbers,” he says. “Whatever the number is, I can tell you that I have been in this business for seven years now and have seen consistent growth year after year.” While Samsung predominately sells its digital signage through other channels — such as the “Pro AV” channel — its products are available to BTA dealers for resell, says

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Schroll. Although much of Perhaps anticipating dealthe hardware in the digital er apprehension (“I don’t “We knew we had to come signage market is commodhave the expertise or the up with a business model itized, the greatest opporpersonnel to develop and that allows them to sell a tunity for dealers actually update content”), Toshiba machine and make money lies elsewhere, he says. “To itself updates the content on the front end, but also survive and maximize the on the digital signage sold gives them an ongoing potential in this landscape, by dealers. “We manage you want to be the one who the content and the dealannuity. The annuity in this is actually hosting and er shares in the revenue business is ... content.” managing the content,” he stream; the end user can — Bill Melo says, noting that the opporjust sign up for a subscripToshiba America Business Solutions Inc. tunity is a particularly good tion for new content,” Melo fit for BTA dealers, given the says. “So, we do all of the size of their typical customers. “Most companies — medi- customization. The dealer’s role is to manage the customer.” um-sized on down — don’t have the resources to manage Which verticals are the best prospects for digital signage? content on a regular basis. Many want to pay a monthly fee “The biggest single vertical market out there is retail; it is the and outsource it to somebody else.” most predominant at 40 percent,” Schroll says. “However, it Schroll likened the recurring revenue of a monthly fee is being used across almost all of the verticals, whether, for from digital signage to the managed print services model. example, it is in corporate lobbies, informational displays “We have talked many times at Samsung about that model throughout a campus or in airports, displaying flight inforbeing very similar to the digital signage model,” he says. mation. Just pay attention wherever you go and you will see “The customer says, ‘You do everything for me and I will digital signage in all sorts of places.” just pay you a monthly fee and I will never have to touch the Melo says Toshiba’s Virtuoso platform was developed to stuff. Then, every three years, you come in and refresh the help dealers easily address a variety of markets. “We built technology with better technology.’ That’s the kind of model applications for a number of different verticals, such as real BTA dealers need to be thinking about, turning it into ‘man- estate, automotive, health care, education, hospitality, etc.,” aged digital signage services,’ like MPS.” he explains. “That way, if a sales rep is going into a hotel, In its research to better understand the digital signage for example, there are hotel apps he [or she] can show the market, ramping up to the launch of Ellumina, Toshiba prospect. We then customize it from there, but the apps still came to embrace the focus on content as well, Melo says. show really good examples of how Virtuoso can be used.” “We quickly came to the conclusion that the value in this Toshiba has also developed apps for specific tasks, says space is not around what might seem obvious — the dis- Melo, explaining the purposes of two of them — wayfinding plays and media players; the hardware,” he explains. “The and assisted selling. Regarding wayfinding: “Let’s say you value is around the content. So, we have focused our efforts are in a giant mall and you have no idea how to find Macy’s. on creating and managing content.” You touch the screen and it will tell you how to walk to the In addition, Melo says, Toshiba modeled its digital signage store, but it will also provide you a virtual look inside the program after its MPS program. “We learned from our MPS store, where you can see examples of clothing, etc.” Regardexperience that the problem we solved with MPS custom- ing assisted selling: “In an automobile dealership, for exers was having a lot of different vendors and people point- ample, a sales rep could use the touch screen to show inforing fingers — no accountability,” he explains. “So, we took mation about the latest models and address any objections the same approach with digital signage; we wanted to be an expressed by the customer.” end-to-end solution, providing displays, media players and Samsung and Toshiba are not the only vendors offering installation, but, more importantly, creating and managing digital signage products for resell to BTA dealers. “We make the content for the customer.” our entire commercial series of display products available The content updates provide the ongoing revenue dealers to our dealer community,” says Gary Bailer, director of are accustomed to, Melo says. “We knew we had to come up product planning and marketing for Pro AV products at with a business model that allows them to sell a machine Sharp Imaging and Information Company of America (the and make money on the front end, but also gives them an 90-inch Sharp PN-R903 LED display appears on the cover ongoing annuity,” he explains. “The annuity in this business of this issue of Office Technology magazine). “Virtually all is not toner, it’s not ink — it’s content.” of our top-tier dealer customers are selling Sharp digital 12 | w w w. o f f ic et ec hno log y m a g.c om | Ja nua r y 2 0 1 4

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increasingly being advised signage products.” to do. “What we espouse to While the selling cycle is “It is no different than what the channel is, ‘10 percent of typically longer than that of makes you successful with your revenue should come the traditional MFP placeMFPs. To be successful, from non-print sources,’” ment, Bailer notes that the you are basically solving Melo says, acknowledging keys to success in selling customer problems ... It is declining print volumes, digital signage are very just a matter of dedicating and suggesting that digital similar to what dealers are the time and resources.” signage could be a part of accustomed to in selling the 10 percent. He also sugMFPs. They include having — Gary Bailer gests that MPS should be apemployees with the right reSharp Imaging and Information proximately 25 percent of a sources and training to sell Company of America dealer’s business. “So, if you and install the products, he are living in a 65/25/10-persays. “It is no different than what makes you successful with MFPs,” he says. “To be suc- cent world, you have a nice solid foundation cessful, you are basically solving customer problems. There that is not going to be rocked immediately by is no secret formula here. It is just a matter of dedicating the the [print volume] decline.” n Brent Hoskins, executive director of the time and resources.” Business Technology Association, is editor More dealers may want to take a look at the digital sigof Office Technology magazine. He can be nage opportunity. In fact, they may find it to be a good reached at brent@bta.org or (816) 303-4040. way to diversify their product mix — something they are

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Opportunities & Strategies Dealers share expectations, advice for the new year Compiled by: Brent Hoskins, Office Technology Magazine

n 2014, what do you believe will be the areas of greatest opportunity for office technology dealers? What do you believe will be the best strategies for success in pursuing those opportunities? Recently, Office Technology magazine asked these questions of dealers via an email survey. Following are some of the responses received. See page six for additional responses. Perhaps the comments shared by your fellow dealers mirror your plans — or provide some new ideas. Opportunities: “I think diversification will play a major part in our ability to succeed. I see customers wanting an organization that can do more. For example, if you have competent network people, you eliminate one issue that has plagued us since copiers went digital, which is the pointing of the finger. ‘It’s your network, not our copier,’ and vice versa; phone systems sales where ‘It is your line carrier, not our phone system,’ and, again, vice versa. We have competent network people who can nail down where the solution is not performing and fix it. I think that is ultimately what we sell and what customers want. I think to be able to deliver all these solutions gives us the lead and helps put our sales efforts over the top. There was a time when doing one thing and doing it well worked, but I just think being able to deliver more technology solutions garners more mindshare from our customers. Don’t get me wrong, this isn’t always easy to do, but the rewards are worth the effort. If anything, Wal-Mart has proven this theory to a degree.” Strategies: “I think the strategy is just jump in and get your feet wet. If anyone had all the answers, it would be easy. I see all these seminars and such and they all try to tell us what to do, but each dealer needs to find his [or her] way and make it work for him. For example, our pricing structure and strategy could be very different from a dealer somewhere else and each could be equally successful. I do find getting to

talk to dealers at any venue — national dealer meetings or ITEX-type venues — allows us to share information on ideas that have worked and those that have not. I wish we had all the answers, but we do get more educated as we move along and continue to change to meet the changing needs of our customers. We have put much more emphasis on becoming more of an IT-servicing dealership. We will continue to sell hardware, but I would like to think by growing our monthly servicing revenue in IT, we lessen the burden to exceed our expenses through hardware revenues.” Mark Watson, president CDS Office Technologies, Spring field, Ill. Opportunities: “In 2014, the best areas of opportunity for us will be continued emphasis on MPS, application software and color production print. In the works, beyond 2014, will be MNS [managed network services].” Strategies: “The road to succeeding in these areas is not just a plan, but more importantly, execution. We are continually upgrading all of our programs to add value or recognize changes in technology, buying habits, and acquisition or pricing strategies. In addition, you need to have committed sales leaders who have a stake in the initiatives, as well as comp plans that reflect what you expect. Constant inspection, as well as ongoing education, are also necessary components of a well-executed plan.” Ray Fuentes, president Edwards Business Systems, Bethlehem, Pa. Opportunities: “Managed IT services, print management and fleet optimization, software solutions, and production are the four areas that will provide the greatest opportunities for independent dealers in 2014. We are still seeing growth potential in these areas as other indicators show decline or reduction in revenues and margins.”

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Strategies: “In order to be successful in these four areas, a dealer must dedicate resources and personnel to these specialized endeavors. It pays to either recruit or develop the necessary talent to provide the knowledge and skills necessary to be successful in these areas. Timing is very important, as there is a short window of opportunity and only the aggressive dealers will be successful in the long term.” Hunter McCarty, COO RJ Young Company, Nashville, Tenn.

“Now we need to expand our vision to mobility ... and offer total packages to build and manage the infrastructure required to make mobility secure and successful ... “

Opportunities: “I believe that managed network services is our best option for the greatest growth; partnering up with our customers to offer a complete office solution, and having one vendor to administer all of their network needs, including printers, multifunctional devices, servers, PCs and mobile devices. Also, learning what a customer needs and providing the advice, manpower and equipment to run effectively and

with maximum profitability.” Strategies: “Partnering up with a company on the back end that can help us to achieve this goal.” Daniel Castaneda, general manager International Copy Machine Center, El Paso, Texas

Opportunities: “IVBE believes our success in 2014 will depend on our ability to provide services that help our customers transition to mobility solutions. We have focused heavily on pages in the past. Now we need to expand our vision to mobility to help our customers bridge the gaps between traditional print and copy, and offer total packages to build and manage the infrastructure required to make mobility secure and successful in their environments. At the same time, we need to continue to provide cost reductions with the management and accountability of the total output environment.” Strategies: “IVBE believes the best strategy to pursue

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2014 Opportunities Jan 14.indd 2

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these opportunities is to blend our manOpportunities: “I think the greataged IT services sales team with our est opportunities for office technology “With the consolidation technology advisers selling traditional dealers in 2014 will be in broadening in our industry, there are BTA hardware. Each sales engagement their product and services offerings. fewer players that can is an opportunity to discuss strategies to The specific offering will vary dependdeliver the high levels consolidate the management of existing ing on each dealership’s size and areas of personalized service hardware devices with a fully managed of expertise. There is an abundance of IT environment, including the mobility technology available; what is lacking that are needed to effect devices and accounting solutions to seis the understanding of how to best meaningful change.” cure and account for all of the user activdeploy it. Independent dealers are ity. Viewing the IT environment as ‘part uniquely positioned to match the techof the whole’ in an SMB market provides reliability improve- nology to best meet customer needs. With the consolidaments for systems and devices, and allows for a stable plat- tion in our industry, there are fewer players that can deliver form to deliver additional services.” the high levels of personalized service that are needed to Scott Chatten, owner effect meaningful change.” Illinois Valley Business Equipment Inc., Peru, Ill. Strategies: “I believe the core strategy will be for dealers to reposition themselves into consultants. This change Opportunities: “The greatest opportunity continues to is a major shift in culture and may not be right for everyone. focus on delivering a total technology solution for our cli- The dealer who has a solid customer base with profitable afents. If you look at the independent copier dealers’ clients, termarket will be able to make the necessary investments. they are dominantly small businesses. We are working more In addition to the financial investments, the commitment closely than ever with our clients to deliver solutions to to make the shift must come from ownership. Keeping the drive their businesses, increase efficiencies and lower costs. focus on the strategic objective and aligning compensation Assisting clients with everything technology is our great- programs accordingly will be key to success.” est opportunity. Managed network services, managed print Ray Belanger, president services and continuing to make ourselves more efficient Bay Copy, Rockland, Mass. are all fantastic opportunities in 2014.” Strategies: “The best strategies for growing our total soOpportunities: “Managed IT services is a given, but this lutions offering are simple to define, but difficult to execute. requires a big investment, takes a lot of resources and the It’s all about our people. Our people have to be talented, giv- return on investment can be years out. Today, there are open the resources to execute and keep focused on the custom- portunities for dealers to work with GreatAmerica’s Coler. We’ve moved to a performance-based pay structure and labrance program and, if you are a Konica Minolta dealer, everyone has goals. We’ve noticed a shift in culture and, with you can leverage the All Covered program; Ricoh dealers that, people being accountable, driven and empowered.” have the CHAMPS Program. These are managed IT services Gary Thomas, president that dealers can brand as their own and receive all the supThomas Office Solutions, Muncie, Ind. port and training needed to get into the managed IT business, without the big investment. Opportunities: “I don’t believe there will be much change “These programs are 100-percent better than starting in the way major corporations or larger companies do busi- from scratch and building your managed services business. ness. However, the smaller companies that have struggled No matter how you look at this business, it will require huwill need to start upgrading the equipment that they have man capital; this business is outside most copier dealer’s held onto during the bad economic times. Tablets seem to core competencies. be taking over the market and our new generation will con“Two additional areas of growth: (1) production and (2) tinue to utilize mobile apps. Lots of growth there.” software that leverages the MFP. The production business Strategies: “The best strategy for pursuing these oppor- requires additional human capital and capital investment tunities would be to get involved on the mobile side. Also, it’s too; but let’s face it, this is within the copier dealer’s core like [BTA General Counsel] Bob Goldberg says: ‘If you aren’t competencies. The software solutions (i.e., variable data selling, you better be buying!” This is getting more difficult printing, graphic arts packages, Fiery software packages to do, especially on the small [dealership] side.” and calibration products) lead to the ability to offer and Jerry Jackson, president charge for professional services. All South Copiers, Kennesaw, Ga. “[In terms of] software products that leverage the MFP: 18 | w w w. o f f ic et ec hno lo gy m a g.c om | Ja nua r y 2 0 1 4

2014 Opportunities Jan 14.indd 3

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NSI Autostore, OCR packages, Equitrac, retrieval of documents, when necesPaperCut, mobile printing and so much sary, an easier task.” “We train technicians more. Our software sales have increased Strategies: “There are many ways to who are skilled in 35 percent in 2013 from 2012. The reason promote the message about how a comboth IT and MPS, is that we have solution specialists who pany adds to its menu of services. Trade and find that this go out on as many calls with the copier shows are a great way to promote in the is an additional reps as possible and try to find some local market. ‘Lunch-and-learn’ semiworkflow solutions that will improve the nars are another, as is being involved in service for us to clients’ operations. local business organizations. We also offer our clients.” “We all know that when we offer a souse both social media and public relalution (that solves a problem), we are able tions to get our message out. to add gross profit to the sale. Try to make as many two-per“We have a sales team that works very hard with both son calls as possible — copier sales rep and subject-matter potential and existing customers to make certain they unexperts together. derstand the scope of our capabilities. And a key part of our “The office technology business is thriving and the copi- strategy for this year will be growth through acquisition. ers (MFPs) are coming along for the ride! It’s a great ride!” We are actively looking to acquire at least one IT firm and Strategies: “Education and training — lean on your manu- possibly more. We have acquired a number of competitors facturers to provide these sessions weekly or at least monthly.” over the years in the equipment/technology area and that Larry Weiss, president has worked well.” Atlantic, Tomorrow’s Office, New York, N.Y. Chip Miceli, president Des Plaines Office Equipment Co. Inc., Elk Grove Village, Ill. n Opportunities: “Managed (IT) services will provide the greatest opportunities in 2014. For the last few years, the push has been on managed print services (MPS), and those dealerships that have embraced the concept have seen the results. Those who have not are in danger of becoming marginalized as the industry moves forward. As we look ahead, after ‘riding the wave’ of MPS, the next frontier for us is IT. There are several reasons why this is so. Companies engaging IT personnel for their internal needs often have these highly-paid, talented personnel double as ‘equipment repair’ people since they are often the only ones in an organization capable of this task. Yet, to use them for MPS takes them away from their primary duties. As we have delved further into MPS, we have also seen a need for IT technicians within companies that have needs, but do not necessarily want to employ an IT person full-time. We train technicians who are skilled in both IT and MPS, and find that this is an additional service for us to offer our clients. Clients look for value and dependability, and if we can address both of these needs, it provides us with opportunities that otherwise might go elsewhere. “With everything going ‘into the cloud,’ it makes sense to have a team of technicians who are skilled at more than what they were required to know even a few years ago. We see this as a natural evolution of where our industry is going. “Another key area of growth is the archiving of records. There is a movement toward ‘paperless,’ which has been in existence for years, but the fact is: companies that have a significant back-file of records eventually run out of storage space. Archiving addresses that need and makes the www.offi cetechnol ogymag.c om | J a n u a ry 2014 | 19

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ITEX ad Jan 14.indd 1

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ITEX ad Jan 14.indd 2

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Customer-Driven Changes Two key trends transforming the way we do business by: Laura Blackmer, Sharp Imaging and Information Company of America

oday’s document management industry is evolving and the changes are largely being driven by the customer. While it is understandable to be concerned about change, it also brings about new and exciting opportunities for manufacturers and dealers, as well as innovative technologies and solutions for customers. There are at least two key trends that are transforming the way manufacturers and dealers do business: the customer’s changing workflow and a focus on solving customer problems. Changing Workflow Our industry is changing because the customer’s workflow is dramatically changing. The foundation of today’s workflow is built on the network. In the past, customers used each machine as a standalone device — they would walk up to the device, make a copy and walk away. Today, end users are scanning onto the network, printing off the network, accessing files from the network on their mobile devices and much more. The cloud is further enhancing how customers work, allowing them to access any information from their networks at any time, anywhere and on any device. In addition, the network and cloud are providing new opportunities for collaboration. Sharp’s Cloud Portal Office, for example, allows businesses to easily and, most importantly, securely access, control and share documents, as well as provide a platform for collaboration with colleagues, clients, prospects and others in other states or around the world. Another important area that has changed in the workflow stream is outsourcing versus insourcing. Advanced technologies have changed these strategies. In the past, many processes, such as color runs, were outsourced since it was not cost-effective to have these technologies and staff in-house. However, newer technologies at lower price points have

brought some of these resources back in-house and, as a result, provide customers with more flexibility and control over how they do business. Being mobile without compromising security, collaboration and access to information is the way customers are now doing business. Both manufacturers and dealers need to continually embrace this new workflow stream and help customers conduct their business seamlessly and more efficiently. Solving the Customer’s Problems The second trend we are seeing is addressing customer business challenges. The conversation with the customer has shifted from a focus on features to problem solving. In the past, the sale or lease centered on pages per minute, the richness of the color output, the footprint of the device and more. While these features, of course, are still critical, they no longer lead the conversation. Today, it is all about understanding the customer’s problems in a specific vertical and figuring out how to solve them. This provides new opportunities for manufacturers and dealers, while enhancing the relationship between the manufacturer and dealer, and between the dealer and customer. One key opportunity for the dealer is to truly understand the customer and the workflow issues in its vertical industry (whether it is an educational institution, a local planning board, a hospital, etc.) and, as a result, become more consultative. This deepens the relationship with the customer and allows the dealer to provide additional products and technologies. As a dealer, it is no longer enough to simply recommend and sell a product. Dealers need to develop their own expertise and business models, and own other devices on the network. They need to be able to advise companies on what they need across the network. However, to do this, dealers need to continually invest

22 | w w w. o f f ic et ec hno lo gy m a g.c om | Ja nua r y 2 0 1 4

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the dealer, thus fostering a business-foin their businesses in new ways. They cused discussion versus a product-foneed to invest in business skills around They [dealers] need cused discussion. In addition, we need the network and the cloud, and they to invest in business to make sure that we, as manufacturers, need to be able to advise on how to maxskills around the also deliver programs to dealers that imize the network. network and the cloud, meet those needs. The onus is also on the manufacturer. and they need to be How a dealer addresses a customer’s As manufacturers, we need to help dealproblem in a vertical is what will allow ers become more consultative so they are able to advise on how to that dealer to stand out. To help in that seen as their customers’ partners versus maximize the network. effort, manufacturers need specialty their customers’ vendors. We need to be experts in these areas to help educate able to educate dealers about the issues in specific verticals and clearly articulate how certain prod- dealers and to be able to effectively solve problems with the dealers. ucts will address those issues. Another part of the conversation that has changed, as a reManufacturers can also help dealers by more deeply understanding the customer’s business. We, as manufacturers, sult of focusing on problems versus features, is the move away need to constantly train our salespeople to be counselors and from price. While price is always an important consideration, advisers to dealers and make it easier for dealers to do busi- it is no longer the most important consideration. Customers ness with their customers. At Sharp, for example, we make want solutions that make a difference to their businesses and sure that our salespeople are businesspeople; as a matter of address their challenges. The more dealers understand their fact, many have previously owned their own businesses. This customers, what their problems are, and how they want to provides a different level of empathy and competence with use certain devices and services, the less the conversation centers on price. This new dynamic in the conversation allows dealers to be seen as partners, to provide more value, and to potentially sell additional products and services. The Manufacturers’ Obligation Traditionally, manufacturers have been good at delivering products that have a feature set that seems to be the requirement of the market. Now, that has changed and we need to be able to say, “Here’s what’s happening with your customers. Here’s how you can take this product, along with other products and services, and deliver a solution.” And, once dealers have elevated this conversation with their customers, they will become more aware of other opportunities within their customers’ businesses, which can lead to new revenue streams while further solidifying those relationships. Manufacturers have the obligation to educate dealers on these trends and others, and to give them the information they need to know to be valuable assets to their customers. The times are changing and the conversations are shifting. However, these changes are leading to incredible opportunities for both dealers and manufacturers to consistently innovate, provide more value, be positioned as partners and help customers impact their bottom lines. n Laura Blackmer is senior vice president of sales for Sharp Imaging and Information Company of America (SIICA). She is primarily responsible for directing the strategic growth of Sharp’s business-to-business operations. Blackmer can be reached at blackmerl@ sharpsec.com. Visit www.sharpusa.com. 24 | w w w. o f f ic et ec hno log y m a g.c om | Ja nua r y 2 0 1 4

Blackmer Jan 14.indd 2

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Impression Solutions ad Jan 14.indd 1

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Inbound Marketing Facilitating social media, blogs & e-books by: Frank Topinka, National Printer Repair Network

any dealers seem happy with their Web presence, but the real question is: “How many prospects are you capturing with your website tools?” The answer is probably “none.” Ask a dealer to measure the ROI of his (or her) marketing spending over the last year and most will probably give the same answer. In today’s online world, you need a strong online presence, and that starts with your website. Getting your website to work for you requires a change in thinking about how all of this works. Web searches will not find your website unless it is optimized for searches, so you must develop content that incorporates what customers want, complete with key search words. This process is called search engine optimization (SEO), and it includes social media integration. What binds this together is remarkable content in the form of an e-book that your customers and prospects will want to read. This e-book is attached to a landing page on your website that acts as a lead capture device. Next is where your blog comes to play. You write a blog (complete with key search words) that references the content of the e-book and links your Web content and external validation sources. You post the blog to your social media sites and prospects discover it through an email campaign and social media integration. The blog must be updated at least weekly. One question you may have is: “Why do I need to do it this way? I can just pay per click (PPC) and get leads that way.” It is because 80 percent of page viewers avoid PPC ads on the top and the right side of the page. In order to be found, your website should show up in one or more of the top five or six spots under the PPC ads. Today, more than half of searches are done using smartphones, which implies that your website should be ready for mobile devices. Traditional sites using Flash are not mobile ready and need to be updated to be read on a smartphone. This change in buying patterns cannot be overlooked. The reality is that the sales model is shifting and sales leaders need to realize that their websites are as important as strong

product brochures were in the past; they must be engaging, offer valuable information and include compelling reasons to take action with the products and/or services. “People forget that optimization is really like preparing your runway to land planes with a big magnet ... and they forget that you need the radio tower communicating your signal [blogging, email, social media, etc.] to draw the pilots in so they land on your strip,” says Rick Lambert, corporate sales performance coach at www.selltowin.com. The pilots, of course, are prospects and potential customers, and the landing strip is called a “landing page” in the online marketing world. The landing page is a spot to bring prospects and customers in and have them see or do something in your favor. Traditional marketing methodologies are in decline, yet, surprisingly, most dealers think that their Web presence is adequate because their websites “look good.” If a dealer has a blog tab on his site, it usually contains public relations information that no one cares about or reads, but he is meeting the blogging criteria for refreshing content. Years ago when I was trying to improve my managed print services (MPS) website, my Web developer told me that all I needed was fresh blog content two times per week. What

26 | w w w. o f f ic et ec hno lo g y m a g.c om | Ja nua r y 2 0 1 4

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I found was that publishing a new blog n Is service the primary message? each week (400 to 600 words) did nothEngage with a n Do you have offers and landing ing when part of a traditional marketing pages for lead capture? professional inbound strategy. There were no leads generated. n Do you list the vertical markets marketing company Statistical evidence gathered by your company serves? to review your site and HubSpot, an inbound marketing firm, n Is there content that informs, eduyour competitors’ sites suggests there is a much better way to cates, and builds trust and authority get leads — through inbound marketing. to get a ranking so you for your dealership? However, doing this correctly requires a n Are there e-books and blogs? know where you are. major effort and commitment by marn Are you using keywords, meta tags keters. If you want better leads and more and meta descriptions? closes, you need inbound marketing. Start to publish content or hire someone to do it for To get customers to find you on the Internet, inbound you — E-books and blogs are written to inform prospects marketing strategies require certain elements to be in and show your company’s expertise. But creating the conplace. How is this accomplished? tent is the difficult part. You may have a knack for it or you First, you need to know your prospect and his business. The may have to hire someone to do it for you. There is no othprospect is generally a technical person and fits this profile: er way to get the prospect to find you on the first page of a n He is an IT professional (not a C-level person, as they search. Content creation is an ongoing event that must be tend to have no office printing pain). done frequently to provide fresh information. n He owns the print infrastructure. Blogs must have information that is unique and supports n He is online all the time. what is being said on your website. One common error dealn He is demanding and knowledgeable. ers make is subscribing to an industry news feed that is ren He has little or no time for salespeople. ally generic blog content; this will hurt your chances of ben He validates services by reading blogs and using social ing found. Blogs must be relevant and link to your site and media sites. other Web information that supports what you are stating n He does extensive research on the Internet before en- about your dealership. Companies that blog get 55 percent gaging with a vendor. more traffic than those that do not. Now that you know who your target is, how do you deE-books are approximately 1,500 words of meaningful, velop an inbound strategy to connect with him so when he valuable content that is offered in exchange for the prosis ready to buy, he can find you on the first page of a search? pect’s contact information. Your blogs should promote the What relevant Web content and social media activity must e-book. As you get prospect information, you will nurture be in place? Let’s start with your website: them with more blogs and e-books. Get professional help to get you on the right path — Examples for e-books and blogs can be found on my webEngage with a professional inbound marketing company site at www.nprn.net/blog. to review your site and your competitors’ sites to get a Convert site visitors to warm prospects — Once you get ranking so you know where you are. Then establish a re- someone to your website, you probably want him to take some vised website that is optimized for those search engines we action that indicates he is interested in what you offer. To do love. One possibility is to visit www.in2communications. this, the more advanced sites in the industry use what are com. This company has inbound marketing ability and called “content offers” to convert site visitors to possible sales MPS market intelligence. leads. Here is some industry terminology you should learn: Improve your Google search results — SEO is a critin A Call to Action (CTA) is the use of a click button to get a cal factor that Google uses to determine your site ranking prospect to act on your offer (reading an e-book, article, etc.). (where you show up on a Google search for your products n The CTA leads the prospect to the next step (i.e., “Get a and services) using two things — trust and content. free e-book on how to get rich tomorrow”). Trust is determined by off-page authority, which is done n CTA’s can be generated by email, social media, your by linking your blog to supporting Web sources, online con- website and your blog. tent and how visitors use your site. Create specific landing pages — This is where you capTo ensure a quality website, consider these questions: ture and measure activity from your CTAs. The landing n Is your website readable, with relevant content? page should collect prospect information and move it into n Is there an MPS focus? (You should get rid of hardware a nurturing placeholder. The contacts collected from this as a main theme.) method are organic and these people are more likely to let 28 | w w w. o f f ic et ec hno lo gy m a g.c om | Ja nua r y 2 0 1 4

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you in to see them (some day). Using an inbound marketing software Become a social business — Soplatform is a great aid to facilitating soTo stay in this business cial media should be integrated into cial media, blogs and e-books. Learn and grow demands your website strategy. This includes, more about this at www.hubspot.com. a new marketing but is not limited to: LinkedIn, TwitTo summarize, there are five things paradigm. Inbound ter, Facebook and YouTube. All social your website must have to generate leads marketing is proving media options need to be explored, but for sales. (1) SEO; (2) blogs and e-books; these four should definitely be incorpo(3) social media integration; (4) website to be the best way to rated into your overall inbound strategy. lead generation using CTAs and landing get this done. n LinkedIn and LinkedIn groups: pages; and (5) lead nurturing to continUpdate your profile, use keywords, and ue to educate your website visitors. create and post content to groups. Examples of content inSo, the questions you have to answer: clude an alert to your blog using a catchy headline or askn When a prospect searches for office technology in your ing a question to receive comments. To use LinkedIn, first area, do you show up in the results? establish your profile. Insert a photograph of yourself, use a n Do you know how many visitors reach your website descriptive headline with keywords and post updates. Con- every day? tent application can be found at www.linkedin.com. n Are you capturing any names and converting them to Next, join relevant IT groups where you can share your customers (ROI)? existing Web content; engage and share in the conversation; If the answers to these questions are “no” then a website and turn content into discussion and keep the conversation evaluation may be in order. To stay in this business and grow going with people who engage you by responding to them. demands a new marketing paradigm. Inbound marketing is n Twitter: You should tweet daily, or weekly, at the very proving to be the best way to get this done. n least. Tweets should link back to a blog or landing page for Frank Topinka is president of the National Printer Repair lead capture. You can tweet LinkedIn posts, blogs and new Network (NPRN), providing printer repair services for copier/ e-books. Be sure to keep tweets relevant and only retweet MFP dealerships in the United States and pertinent information. Canada. NPRN also offers a professional n YouTube: Create a 30-second video inviting prospects blogging service that includes optimized to get to know you. Place a button on your website for video; blogs and e-books integrated with websites with video get 50 percent more traffic. websites and social media. n Facebook: Create a company Facebook page and use it He can be reached at to post your blogs and other activities. frank.topinka@nprn.net or (508) 981-6946. FIRST CLASS U.S. POSTAGE PAID PERMIT NO. 11

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“I Have a clear vision to build a system of Managed Mail Services. This system will change the way the SMB market processes it’s mail. This system will disrupt the mail industry in the way Managed Print disrupted the copier industry. And, like that disruption, the early adapters will beneﬁt greatly.” Ray Stasieczko, CEO/Founder - Mapa Systems Allow Mapa Systems to show your organization the beneﬁts of Managed Mail Services. As a Mapa Systems dealer, you will educate the SMB marketplace, which will then allow you to capitalize on this extremely dysfunctional business process. In doing so, your organization will bring added value to your deliverable. Contact Mapa Systems to learn more about this exciting pioneering opportunity.

www.offi cetechnol ogymag.com | J a n u a ry 2014 | 29

Topinka Jan 14.indd 3

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COURTS & CAPITOLS

The Affordable Care Act What does it mean for your dealership? by: Robert C. Goldberg, General Counsel for the Business Technology Association

t seems that not a day goes by without something in the news about the Affordable Care Act (ACA). As a small-business owner, what does this legislation mean to you? At this point, probably not a great deal. However, you likely have already missed the single requirement that has been imposed. The ACA was passed with clear goals in mind. The intent of the legislation was to provide health insurance to the millions of Americans who do not have it. The law seeks to control the escalating cost of health insurance, create a more competitive marketplace, emphasize disease prevention and eliminate certain factors that previously disqualified applicants. The ACA will certainly change the face of medical insurance, how medical providers are paid and standardize benefits under medical policies. Since most BTA member dealerships provide health insurance for their employees, it should not be a concern that after Jan. 1, 2014, there will be a penalty for not having health insurance. The penalty amounts to $95 per adult family member or 1 percent of family income, whichever is greater. With penalties in place on individuals, the law guarantees that individuals will be able to obtain insurance. The only variables an insurance company may consider in establishing rates are age, geographic area, family composition and tobacco use. Missing are preexisting conditions that have precluded many individuals from obtaining insurance in the past. Policy rates for the four categories of insurance that must be provided can only vary by three times from the least expensive to the most expensive. The four different policies — Bronze, Silver, Gold and Platinum — will vary in cost by the amount of out-of-pocket expenses the insured will be required to pay. All policies will prohibit annual and lifetime limits, require coverage for dependents up to age 26, prohibit cancellation except for fraud, require coverage for preventive services without copayment, and limit out-of-pocket expenses. In an effort to assist lower-income individuals and families in obtaining health insurance, the legislation provides for subsidies in the form of tax credits. To be eligible, an individual must not have income greater than $23,550 and, for families, $94,000. The lower the income, the greater the support. To determine if one is eligible for tax credits or subsidies, he (or she) needs to register on the website (www.healthcare.

gov) or call (800) 318-2596. The problems with the website are well known and I hope they are substantially resolved by the time you read this. Employers with 50 or more full-time employees are now required to report certain information on an annual basis. Due to the problems with the program, the reporting requirements have been postponed until Jan. 1, 2015. There are fines that can be imposed if an employer of more than 50 individuals fails to provide “minimum essential coverage” or other factors to ensure health insurance for all. Companies with fewer than 50 full-time employees have no requirement to purchase health insurance for their employees. Under the law, all employers are required to notify their employees of the availability of state health insurance exchanges. This notice should have been provided by Oct. 1, 2013, however, it is not too late to provide this notice. There are two forms on the Department of Labor website (www.dol. gov) for providing notice. One is for a company that provides health insurance and the other is for a company that does not provide health insurance. The controversy regarding the ACA is likely to result in further revisions and deadline delays. BTA will continue to keep you advised. n Robert C. Goldberg is general counsel for the Business Technology Association. He can be reached at robert.goldberg@sfnr.com.

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Goldberg Jan 14.indd 1

12/30/13 10:24 AM

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BTA HIGHLIGHTS BTA would like to welcome the following new

BTA District Events

For the benefit of its dealer members, each month BTA features two of its Vendor or Service Associate members in this space. Founded more than three decades ago, BTA Vendor Associate member Katun Corp. is one of the world’s leading providers of OEM-compatible imaging supplies, photoreceptors and parts for copier/MFPs, printers and other imaging equipment. It is Katun’s mission to be the world’s best OEM-alternative source for office equipment imaging supplies and parts. Katun’s goal is to provide its customers with the optimal combination of high quality, cost savings, innovation and support to enable their businesses to grow and prosper. The company serves 16,000 customers in 135 countries from its headquarters in Minneapolis, Minn., and dozens of worldwide locations. www.katun.com

BTA will host five educational and networking events in 2014, featuring presentations by leading industry experts. BTA members receive discounted registration to all of 2014’s district events. For more information, visit www.bta.org/DistrictEvents.

BTA Service Associate member InfoTrends is a leading worldwide market research and strategic consulting firm for the digital imaging and document solutions industry. The company provides research, analysis, forecasts and advice to help clients understand market trends, identify opportunities and develop strategies to grow their businesses. InfoTrends consultants have extensive vendor, user and consulting experience. On average, the InfoTrends team has 20 years of experience in the industry with an unparalleled reputation within the industry segments. www.infotrends.com

For information on BTA member benefits, visit www.bta.org/MemberBenefits.

A full list of BTA Vendor and Service Associate members can be found online at www.bta.org.

members to the association:

Dealer Members Carolina Digital Solutions, Charlotte, NC Copy King Office Solutions, St. Charles, IL DocuSense, West Chester, PA Dr. Print, Hauppauge, NY Eagle Business Machines, Elmsford, NY The Office Advantage, Mitchell, SD Publishing Associate Members ImageSource, Newton, MA Service Associate Members SpencerLab, Melville, NY Wells Fargo Equipment Finance, Des Moines, IA For full contact information of these new members, visit www.bta.org.

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Highlights Jan 14.indd 1

12/30/13 3:55 PM

PRINCIPAL ISSUES

Nuance Sees Success Company highlights acquisitions, partnership by: Elizabeth Marvel, Office Technology Magazine

uance Communications’ Imaging Analyst Day, held Dec. 12, 2013, in Miami, Fla., gave industry analysts and editors the opportunity to hear about the company’s successes and challenges during the last year, as well as preview upcoming software and solution releases and partnerships. Kicking off the analyst day, Mike Rich, executive vice president and gen- Mike Rich eral manager of the Document Imaging Division, gave analysts a review of Nuance’s last fiscal year, which ended in October. “The last fiscal year has been a very dynamic year for both Nuance as a company and the imaging division in particular,” Rich said. “From an imaging division perspective, we were the most profitable division within all of Nuance. We achieved record revenues, record margins, record segment profits — and we’ve contributed mightily to the overall financial success of Nuance.” The success of the Document Imaging Division is due, in part, to some large, global deals. “When we were in the early stages of this industry, we served a lot of departmental-level solutions,” Rich said. “The deals we are getting nowadays are big, global deals. We’re getting more and more involved in very large deployments that have significant impact in scope. It’s very difficult to service those accounts unless you have an extraordinary global presence and we’re very fortunate that we have a portfolio of products, a team that’s engaged in the field and a services team that can provide a ‘follow-the-sun’ service and coverage model, which has been decisive in many of the opportunities that we have won.” In addition to making some important deals, the company saw two recent additions to its portfolio contribute to the growth and success of the Document Imaging Division during the 2013 fiscal year. The first addition was SafeCom, which was acquired in June 2012. SafeCom is a print management solution that has its strength in the HP market, particularly in the dealer channel. The second acquisition was Copitrak, which was acquired in December 2012. Copitrak is cost recovery software primarily focused on law firms and other professional institutions. One focus for Nuance in the upcoming year will be on the independent dealer channel, thanks to its partnership with Cranel Inc., a Columbus, Ohio, distributor of enterprise content

management (ECM), office equipment dealer and check automation solutions, software and services. “The dealer network is really, really important to us,” Rich said. “And this is one of the reasons that we’re partnering with Cranel now. We need to do a better job of getting into that channel and communicating exactly what it is we can do and how we can support them [dealerships]. I don’t like the customer concentration with the big MFP players ... Customer concentration is never good. It adds risk to your business model. So, if I could get more balance and greater dealer penetration, that would be a good thing.” A presentation later in the day highlighted the partnership between Nuance and Cranel, which will actually deliver solutions to a dealership. “They [Cranel] are not just a means for a transaction for us for the dealers,” said George Seymour, vice president of sales, Americas, Document Imaging Division. “They’ve actually invested quite a bit in our products and, in particular, Equitrac, where they have certified technical people. They have a help desk that supports the dealers. We’ve certified them in professional services where they’ve actually started doing the professional services and implementations for the dealers’ customers. So, they really bring a different level of support to the dealers.” Craig Wallace, president and COO of Cranel, explained how the company will assist dealers and “teach them to fish.” “With our support capabilities, our pre-sales capabilities and our post-sales support capabilities ... we can help nurture them along until they become self-sustaining,” Wallace said. “And that’s why we built the infrastructure in what we do; to help support them so they can build those competencies internally. “I think if we look at that market segment [independent dealerships], we know what they look like historically,” he continued. “Limited capability, limited bandwidth, limited technical infrastructure, limited ability to bring on a whole portfolio of technology ... And that’s really what they’re struggling with: ‘Hey, I want to evolve. I want to get out of the box business. I need more solutions help. I want to get this done. How do I make it happen?’ And what we’re doing today is really focusing in conjunction with Nuance to tap this market with a vengeance.” n Elizabeth Marvel is associate editor of Office Technology magazine. She can be reached at elizabeth@bta.org or (816) 303-4060. www.offi cetechnol ogymag.c om | J a n u a ry 2014 | 33

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PRINCIPAL ISSUES

MPS Profitability It is important to have the right infrastructure by: Brent Hoskins, Office Technology Magazine

hile strong sales competency is important for any office technology dealership’s MPS program, having the right operational infrastructure in place is imperative to maximizing profitability, said Doug Johnson, senior vice president at Supplies Network. Unfortunately, he said, there are often barriers that keep dealers from achieving Doug Johnson the optimum level of success. Johnson shared his comments in his educational session, “Overcoming Barriers to Achieving MPS Profitability,” during the Dec. 10 Managed Print Summit, held in conjunction with the Dec. 11-12 Business Imaging Expo at the Mandalay Bay Convention Center in Las Vegas, Nev. The events were hosted by The Imaging Channel magazine. “Fundamentally, I think this industry is suffering from a lack of core profitability,” Johnson explained as he opened his session. “And, if you don’t start with a profitable business, you can’t build on it. The MPS space has a lot of promise with extra margin and customer retention, etc., but that is only true if you manage it well and with a focus on both the sales and operational sides.” The right MPS operational infrastructure, Johnson said, includes back-office software for billing and reconciliation, as well as an efficient break/fix service team that is focused on both triage and preventive maintenance. In addition, he said, the infrastructure must include high-quality, cost-effective supplies and the ability to remotely manage MPS environments. Johnson presented several expense-related questions that dealers will be able to readily answer if they have the right MPS operational infrastructure in place. Among the questions: What are the resource costs to complete an effective assessment? What does it cost to implement a deal? What are the total supply and service costs? What are the total sales costs to acquire and manage the ongoing MPS customer relationship? As dealers work to develop the ability to answer these key questions, they should also consider common barriers to profitability, Johnson said. “Here’s a big one that we run into all of the time with our customers when they are first moving devices around and putting in new devices,” he said. “Who is paying for that initial supplies inventory? You are. Are you accounting

for that in your deal or not?” Another of several barriers to profitability cited by Johnson: Failing to follow through on plans to migrate pages to more efficient devices. “You might have had every intention to migrate those pages from desktop to workgroup, but if there is not a good client engagement process that ensures the change, it doesn’t happen,” he explained. “There are a lot of examples where I’ve seen dealers sign up deals they think will provide 50-to-60-percent gross margin and, come to find out, they were really only at 20 to 25 percent because the customer’s behavior didn’t change.” Johnson also emphasized the need to carefully track all metrics associated with supplies, noting that approximately 74 percent of the total cost of the MPS engagement is supplies, based on the approximately 200,000 A4 devices managed by Supplies Network. “There are a lot of things that can get you in trouble with supplies,” he warned. “I recommend that, every quarter, you should be looking at supplies, in terms of what was shipped and what was consumed.” Dealers should also recognize the “effective yield” of consumables, which results when customers have the ability to order their own toner, Johnson said. “A cartridge may have a 20,000-page yield, but when the customer sees the low toner light come on, he [or she] is going to take the toner cartridge out and put another one in,” he explained, recommending that toner ordering/replenishment should always be set up to be handled by the MPS provider, rather than by the customer. “Do you know what percentage of toner is left when the light comes on? About 30 percent.” Having the right infrastructure in place and knowing all of the costs associated with MPS — at the customer, device and page levels — will boost a dealership’s profitability, Johnson said. “On average, when we’ve gone through this with resellers and they go from ‘not knowing to knowing,’ it makes a 12-to-18-percent difference in their margins,” he said. “I don’t know what your individual goals are or what you take to the bottom line, but if 12 to 18 percent is interesting, you should go through the exercise and find out where those costs are, dive into it and find ways to close any gaps.” n Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine. He can be reached at brent@bta.org or (816) 303-4040.

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BIX Jan 14.indd 1

12/30/13 3:57 PM

SELLING SOLUTIONS

Communication Habits Who are you trying to make comfortable? by: Troy Harrison, SalesForce Solutions

omfortable customers buy. However, what some salespeople do not understand is that many of the things they do by reflex end up working against them. They have communication habits that turn out to be both time-wasters and contact-breakers. Many times, when I ask salespeople what they are doing, they tell me that they are “trying to make the prospect comfortable.” Usually, however, they are trying to make themselves comfortable. If you do some of the following, you might take the time to ask yourself “Why?” and “Who is it I am trying to comfort?” “Hi, Mr. Prospect. How are you today?” — This is a time waster and is the death of more potentially great sales phone conversations than any other phrase. It is also the most common. When this is used in a cold-prospecting environment by a salesperson who does not know the prospect, it is a virtual announcement to the prospect that the caller is a pesky salesperson who cannot make the most of his (or her) time on the phone. The answer is always the same: “Fine. Who is this?” When the prospect hears the question, he gears up his defenses and prepares to resist. This is the opposite of what you want to happen. The truth is, the question is a bridge to a conversation built by a salesperson who is uncomfortable with his message and is stalling before delivering it. Get comfortable with your message and dump the question. “Is this a good time for me to call?” — When you are calling a decision maker, it is hardly ever a great time to call. So, the best thing you can do is be as respectful as possible of the prospect’s time by being impactful and communicating value. Asking this question creates a great opportunity for the prospect to end the call. Again, a salesperson who asks this question is uncomfortable with his own message. Instead, go ahead and deliver. If it is really a bad time, your prospect will tell you. “Fish-on-the-Wall” selling — This is the salesperson who enters a prospect’s office, sees a fish mounted on the wall and says, “Did you catch that fish? Hey, I fish too!” He then spends an inordinate amount of time talking about fishing (or whatever personal interest is observed). It is not a great practice when the salesperson actually is an enthusiast, but can become pathetic when he is not. For example, my favorite sport

happens to be auto racing; it is not a casual pursuit. I have done everything in it, including owning and driving my own race cars. When a salesperson enters my office and tries to build fake rapport with an obviously solicitous discussion of racing, it works against his desire to make a sale. Why? Because it is phony. You did not go into the office to talk racing (or whatever); you went in to attempt to make a sale. Whether you are working on selling or not, the clock is ticking. Using the word “just” — This is a word that salespeople use to take the edge off their communications. For example, “I was ‘just’ calling to follow up,” etc. The problem is the word “just” diminishes the importance of whatever follows, by definition. And, if what you are doing/saying is not important to you, why should it be important to the customer? If selling is important to you, the truth is that you do not “just” do anything. You do it. Eliminate “just” from your communications and you will have more impact. “I’m seeing if you have any questions.” — This is a great one, usually used after a salesperson has delivered a proposal. “I’m calling to see if you have any questions about my proposal” really means “I’d like to have your business,” but the salesperson is not comfortable asking for it. If your prospect has questions, he will call you and ask. So, why are you trying to diminish the importance of the act of asking for his business? The truth is, you are afraid and need to let go of your fear. All of these communication habits have something in common — a salesperson who is uncomfortable with the role and task of selling. If you are using them, take a deep look inside yourself and ask why. You might be startled at what you find out. There is nothing unimportant about the act of selling and you should not diminish the importance of your job with comments like those above. n Troy Harrison is the author of “Sell Like You Mean It!” and is president of SalesForce Solutions, a sales training, consulting and recruiting firm. For information on booking speaking/ training engagements, consulting or to sign up for his weekly e-zine, call (913) 645-3603 or email troyharrison@salesforcesolutions.net. Visit www.salesforcesolutions.net. www.offi cetechnol ogymag.c om | J a n u a ry 2014 | 35

Harrison Jan 14.indd 1

12/30/13 10:42 AM

SELLING SOLUTIONS

Growing Sales Hire top performers & use personalized motivation by: Steve Waterhouse, Predictive Results

iring more salespeople is one of the least predictable ways to grow sales. Let’s examine the facts. In most sales organizations, the top 25 percent outsell the bottom 25 percent by five times. In addition, most sales managers report that only the top 25 percent are meeting the company’s sales projections. That means when typical sales managers hire sales reps, they have a one-in-four chance of getting someone who will perform at the desired level. What exacerbates the problem is the time spent trying to make winners out of low performers. In fact, time spent working with top performers would have a significantly higher ROI since they are willing and able to execute on the coaching advice they receive. But unfortunately, they get ignored. So, what is the most predictable way to grow sales? Top Performers First, hire only top performers. Sales success is a result of “can do” and “will do.” The “can do” is a matter of intelligence and knowledge. There are a variety of tests that can measure cognitive ability and tell you if the candidate has the mental capacity and agility to thrive in the sales environment. You can see much of this in the interview process if you watch his (or her) reaction to difficult questions. Knowledge is also easy to determine through testing and behavioral interviewing. Questions like, “Tell me about a time when you had to … ,” give you a chance to hear how the candidate dealt with challenging situations in the past. Avoid questions like, “How would you deal with … ?,” since they allow the candidate to invent solutions he might never be able to execute. Knowledge is the one piece that can be added later. If you have a solid sales process backed up with good trainers and coaches, you can teach a great candidate how to sell. Unfortunately, many companies overestimate the quality of their system and leave candidates floundering with inadequate training and insufficient coaching. The good news is that any company can fix this issue and dramatically increase sales in the process. In my experience, the weakest link in this process is coaching. Training managers to be effective coaches results in the constant improvement of your sales team. Empowering managers in this way gives you the capacity for change and improvement that can be used whenever needed. Knowledge and experience can predict the critical “can-do” side of the equation. But why do so many smart and experienced

salespeople fail in new situations? Studies show that the problem is in the “will do.” These people know what to do and will pass every test of sales knowledge, yet they fail to perform in the field. The problem is often behavioral fit. We describe this as the natural motivation to do the things that are required to become a top performer. This behavioral factor is less obvious in interviews and requires a validated behavioral assessment to detect it. We use the Predictive Index assessment with our clients. Each product, sales process and company culture creates a unique behavioral style that defines their top performers. By determining this style and hiring people who have it, your hiring accuracy will dramatically improve. A Personalized Approach Second, manage sales reps using a “personalized” motivational approach. Each person is driven by a slightly different set of needs and drivers. Top managers adjust their approaches for each rep to ensure that they are getting the most out of each one. Spending the time and effort to work individually with each top performer will generate enormous returns. The information acquired in the behavioral assessment will tell you what you need to know for effective personalized motivation. Finally, free up your winners to sell. Examine what your reps do every week. Look at their hour-by-hour activities and eliminate all non-selling tasks. This is more than just time management. Each of us has activities that energize us and activities that drain us. Keeping top performers focused on energizing activities will ensure they have the sustained energy to win week after week. Sales managers are some of the hardest working people in business. When they focus their energies effectively on hiring and building top performers, they are able to realize their goals time after time. n Steve Waterhouse is president of Predictive Results, a consulting company that helps sales organizations hire smarter and manage more effectively. He will be presenting “How to Turbocharge Your Sales Leadership,” one of the educational sessions at BTA Southeast’s Feb. 14-15 Winter Break district event in Orlando, Fla. Visit www.bta.org/BTASoutheastEvent for details. Waterhouse can be reached at steve@predictive results.com. Visit www.predictiveresults.com.

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Waterhouse Jan 14.indd 1

12/30/13 10:45 AM

SELLING SOLUTIONS

Failed CRM Rollouts Sometimes, essential requirements are not met by: Tibor Shanto, Renbor Sales Solutions

ustomer relationship management (CRM) systems are great both as a concept and as a technology. Managing relationships with existing customers and the onboarding of new customers is central to any sales organization’s success and should be evident throughout the sales culture and execution of the sales process. So why do many CRM system rollouts fail? While there are a number of reasons, I would say that most of the time they fail because they do not meet the requirements of the two central figures in play — the customer and the sales rep. There has been much written about the failure to specifically meet customers’ requirements and how a shift in sales culture can make a world of difference for your customers, your CRM success and your financial rewards. But here I want to look at the often-ignored player: the sales rep. CRM systems should deliver benefits to the entire sales organization, from the front-line sales rep to his (or her) line managers to the sales leadership team. But most CRM systems are sold to company leaders, not front-line reps and, as such, are “sold” to meet the requirements of the leaders and not necessarily the sales organizations they are meant to serve. While not going into full detail, most CRM systems are sold on the basis of greater visibility, greater awareness and greater response; all are great ideas whether you have automation or not. But all are dependent on execution by the front line and adherence to a sales process. When these things are in place, CRM systems bring efficiency and the ability to improve execution in response to customer realities. When they are not, the focus of the organization needs to be on changing the behavior of its reps to ensure execution according to the organization’s sales process. CRM systems just amplify the issues that exist; delivering visibility without change is not enough. In the past, they used to say “garbage in, garbage out,” in reference to applications or software programs. In the case of CRM systems — and executives’ expectations — perhaps it is “nothing in, nothing to see,” which leads to failed CRM. So, how do you avoid this and deliver something that meets

the needs of all three constituents? Start with the most important component: the front-line sales rep. While at the macro level, the customer is the central figure in CRM success, at a micro level — that is, within the day-to-day function of a sales organization — the central figure needs to be the sales rep. Not only are sales reps the ones on the “production” (front) line, but they are also entirely responsible for the deliverable and the execution around it. They are the ones who are most closely and regularly interacting with the customer, especially during the acquisition phase. Therefore, it only makes sense that any tool meant to improve sales should improve the reality of the reps, which takes something other than visibility. While strategy is important to both the organization and reps looking to win accounts, success comes from execution of the strategy, which comes down to the right activities — high-value activities — being executed by the reps. In order for a CRM system to be successful, it needs to embrace these two elements as core deliverables and build from there. Reps need to be able to use CRM systems to strategize how to win customers based on their processes and to not only help drive key activities, but also to capture relevant data about those activities and results. By teaching reps how to do this, you are not only delivering a tool that helps them win and succeed, but by getting reps to use it for their own reasons, executives get what they need — a full range of data about the market, the pipeline, accurate forecasting, activities, length of the sales cycle, length of time at each stage of the cycle and much more. All of these can be used for product planning, improvement of the sales process, team and individual development, and, of course, how to better satisfy the customer or the buyer — the one who ultimately pays for things, when done correctly. The central question in selecting a CRM system should be: “Will it help us (and ‘us’ includes the front-line rep) do it right and do it better?” If your CRM system only serves aspects of this, you will only have aspects of success. At a minimum, a CRM system should deliver the above to the sales organization www.offi cetechnol ogymag.c om | J a n u a ry 2014 | 37

Shanto Jan 14.indd 1

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reps’ success — and how to leverage them and the executives who pay for it. for further growth. As mentioned, a CRM system needs to Build a CRM system There are a few CRM systems that deliver put the sales rep at the center of the CRM where the reps and their this type of advantage. The best ones I have universe. Having a production system that successes are the most seen provide the types of data reps need to does not have the key producers at its core important component and increase high-value activities, giving them will result in failure, missed opportunities you will have buy-in from a tool that allows them to analyze their and revenue shortfalls. Build a CRM sysaccounts and activities, and drive their tem where the reps and their successes are the reps and ongoing business strategically and tactically. It althe most important component and you use of the CRM system. lows reps and their organizations to move will have buy-in from the reps and ongoing beyond reporting to sales intelligence, aluse of the CRM system. With that buy-in — and regular and willing use of the CRM lowing them to not just manage their relationships with their system — you will see increased revenue and profitability. clients and their sales approaches, but to transform them. n Tibor Shanto is a recognized speaker, sought-after trainer Notice I said “you will see.” By that, I do not just mean the and author of the award-winning book, “Shift! visibility alluded to above, but you will see it in actual results. Harness The Trigger Events That Turn Prospects You will also have the visibility that you, as a sales leader, deInto Customers.” A 25-year veteran of B2B sales, mand. In fact, you will be able to see much more deeply; not he has helped companies like Ricoh, IKON and only into the performance of your team members, their acPitney Bowes sell better through execution. tivities and their impact on your business, but a much deeper view of your market, key triggers and the interrelationships Shanto can be reached at (855) 25-SALES or tibor. shanto@sellbetter.ca. Visit www.sellbetter.ca. between key data points — the key components of your sales

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Shanto Jan 14.indd 2

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