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CONTENTS Volume 14 No. 11 G

FEATURE ARTICLES 10

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Sales Force Automation Could it take your dealership to new heights?

COURTS & CAPITOLS An Electronic Agreement E-mails can be used to create a binding contract

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by Brent Hoskins Office Technology Magazine

by Robert C. Goldberg BTA General Counsel

Today, dealerships are increasingly taking advantage of industry-specific software tools designed to help them manage and monitor their sales efforts. Here’s a brief look at four of the vendors offering sales force automation.

Today, many business communications are handled by electronic mail. E-mails carry the same weight as a business proposition set forth on paper.

‘Fanatical About Service’ Associated Business Systems named Dealer of the Year

PRINCIPAL ISSUES Rightsizing Your Territories Using the Business Equipment Quota Index

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by Elizabeth Marvel Office Technology Magazine

by Gregory Valen Toshiba Business Solutions Hawaii

Associated Business Systems of Portland, Ore., was presented with BTA’s 2008 Dealer of the Year award at the 2008 ITEX Show in Las Vegas.

Do sales reps regularly communicate to the principals of your company that their territories are too small or they do not have the potential of other territories?

Weathering the Storm Strategies to help you thrive in an uncertain economy

Leadership Competencies Customer loyalty begins with the systems you establish

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by Joanne L. Smikle Smikle Training Services Inc.

By Dennis LeStrange Strategy Development

I am passionate about the importance of measurement. Measurement aptitude is crucial to moving the dealership toward great customer relations.

What impact will the uncertain U.S. economy have on your business and what strategies should be implemented to “weather the storm”?

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‘Educating U’ BTA Southeast conference held April 4-5 in Orlando

by Brent Hoskins Office Technology Magazine

SELLING SOLUTIONS The Case for Solution Sales Be prepared to make investments & changes

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Providing an education and networking opportunity for dealers, the ‘Educating U’ conference drew attendees from both BTA Southeast and BTA East.

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Equitrac: A Briefing Software vendor meets with industry analysts, editors

by Brent Hoskins Office Technology Magazine

Officials from Plantation, Fla.-based Equitrac Corp. recently met with industry analysts and editors. The day-long briefing was held April 11 in Miami.

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by Tom Kramer Strategy Mapping Selling

Solution selling is nothing new, but to do it correctly, you must be prepared to make investments and change a few things.

DEPARTMENTS 6

Executive Director’s Page

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BTA President’s Message

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Advertiser Index

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EXECUTIVE DIRECTOR’S PAGE

Getting Frustrated Finding Reps, Techs? inding sales and service employees can be a frustrating experience. The lament is common: “There must be a better way.” I’m pleased to announce that the Business Technology Association (BTA) is now offering an alternative strategy for your consideration. The association has named Pyramid Screening Technology Inc. (PyramidST) “a BTA-preferred search firm partner” for its members. The firm was referred to the association by a member dealer who had utilized the Pleasanton, Calif.-based company’s services.

What does PyramidST do? It can provide a pipeline of qualified and well-screened applicants based on a dealership’s specific criteria. The firm accomplishes this by using its proprietary search technology to mine the Internet for both passive and active applicants. It mines networking sites, search engines, user groups, forums, job board databanks (including postings to multiple job boards, such as Monster.com) and its proprietary national database of sales reps and service techs used exclusively for PyramidST customers. Applicants who emerge through the mining process complete an online questionnaire, which screens them in order to fit the dealership’s criteria. PyramidST will continue to mine the Internet job sites for 30 days. The company’s success rate is high.

Typically, for example, it presents five to 15 qualified sales rep candidates within five to 10 business days. In 2007, PyramidST serviced more than 100 copier/MFP dealership engagements and attained a 90 percent success rate in sales reps hired.

Through the BTA/PyramidST partnership, member dealers pay $1,750 for each

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en ga gem ent/lo cation , inst ead of th e normal $1,995 fee.

What are BTA member dealers saying about PyramidST? Here’s a sampling: “I have used headhunters, Monster, etc., and nothing compares to the low price and quality results Pyramid delivers. They use sophisticated software to mine data stores all over the Internet, including Monster, Hotjobs, etc., and quickly provide me with many qualified job seekers to choose from.”

— Darren Metz, NovaCopy, Memphis, Tenn.

“Furrowing through Monster and finding people that fit takes a lot of effort.

Pyramid does most of the legwork with their innovative software and delivered to us 22 resumes of salespeople actively seeking employment. Consequently, everyone I called from Pyramid resumes was open to learning about a new opportunity. We reviewed all of the resumes, had phone interviews with at least 10 of them, in-person interviews with at least seven and hired three. We like the quality of the hires, the speed of the process relative to other methods and the cost to source three hires was very reasonable. Pyramid’s follow-up with us was excellent.” — Paul Archer, Automated Business Products, Denver, Colo.

“Made three offers within five days of Pyramid sourcing applicants, with two acceptances and one declined.” — Doug Ruoss, Sky way Technolog y Group Inc., Tampa, Fla. If you are interested in taking advantage of this newest BTA member benefit, call P yrami dST at (877) 778-2679 or v i sit www.pyramidst.com. Representatives at PyramidST will be able to verify that your membership is current.

— 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 Robert C. Goldberg, General Counsel Business Technology Association Tom Kramer, Strategy Mapping Selling www.strategymappingselling.com Dennis LeStrange, Strategy Development www.strategydevelopment.org Joanne L. Smikle, Smikle Training Services Inc. www.smiklespeaks.com Greg Valen, Hawaii Business Equipment Inc. www.tbshawaii.toshiba.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 ©2008 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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—Andy Slawetsky, President, Industry Analysts, Inc.

We know how much technology needs good people, which might be why people are saying such good things about us. At Toshiba, we know the copier’s just the beginning. It’s people who make the real difference—dealers working together with us to offer customers better solutions. And that’s another reason we work so hard to make sure our dealers know how much we appreciate them. To learn more about joining our award-winning team, please call 949-462-6165 or email partnerwithaleader@tabs.toshiba.com.

Toshiba. Human innovation. Leading innovation.

©2008 Toshiba America Business Solutions, Inc. Electronic Imaging Division. All rights reserve d.

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BTA PRESIDENT’S MESSAGE ®

Thank You, Vendor & Service Associates he Business Technology Association was founded in 1926 (as the National Association of Typewriter Dealers) to serve independent dealers.

Through education, information and the exchange of ideas, the association was created to work toward strengthening the dealer channel.

That focus continues today. In fact, our Board of Directors has defined the “core customer” of the association as the “independent, privately-owned” dealership. And, while BTA may provide services that are also of interest to others in the industry, the board stipulates that “the primary focus in programming will be on its core customers.”

Of course, while this is a dealer organization, there are other membership categories.

Specifically, BTA also has Vendor Associate members (manufacturers, distributors and wholesalers) and Service Associate members (providers of services to the dealer channel).

In each case, they have joined not only to avail themselves of the benefits they receive, but also to demonstrate their support of the dealer channel and the industry’s premier association for dealers.

With that in mind, the association recently added to the BTA Web site a listing of all Vendor and Service Associate members, complete with company descriptions and contact information. The intent is to recognize those companies that have demonstrated their support through membership, while providing a resource for dealers who are seeking additional products and services. (Go to www.bta.org and click on “Vendor & Service Associate Members.”)

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With the announcement of this new addition to our Web site, I’d like to also take this opportunity to recognize our Vendor and Service Associates and express our thanks for their support as members.

Vendor Associates: Computhink, Digital Gateway Inc., DocuWare Corp., Eastman Kodak Co., Fujitsu Computer Products of America, GT Technologies Inc. (FMAudit), Hewlett-Packard, Imagistics International Inc., InfoDynamics Inc., InkCycle, Innowave USA LLC, KIP America Inc., Konica Minolta Business Solutions U.S.A. Inc., Kyocera Mita America Inc., Lexmark International Inc., Liberty Parts Team, LMI Solutions, Marketin g D ata S olutions Inc., Murat e c America Inc., MWA Intelligence Inc., Niche Equipment Corp., OMD Corp., Polek & Polek Inc., Prism Software, Ricoh Corp., Riso Inc., Sagem-Interstar Inc., Sharp Electronics Corp., Supplies Network Inc., Synnex Corp., Tech Data Corp., Toshiba America Business Solutions, West Point Products and Xerox Corp.

Service Associates: Cargill Consulting Group, Copier Careers, Copier Compass LLC, Dealer Marketing Systems, Dealer Operations Transition Specialists Inc., DSI Consulting Inc., GreatAmerica Leasing Corp., Greater Bay Capital, Hillcrest Bank, IBPI, Industry Analysts Inc., J. Rodgers & Associates Inc., JDC–Jack Duncan Consulting, Key Equipment Finance, M. White Enterprises, Prosperity Plus Management Consulting, Pyramid Screening Technology Inc., Sales Tiger, Sentry Insurance, Sostilio & Asso ciat es Int ernational Inc., Str ucturedWeb Inc., The Utility Company, Time Payment Corp. and U.S. Bank Office Equipment Finance Services. I — Shannon Oliver

2007-2008 Board of Directors President Shannon Oliver 25 Wheaton Circle Greensboro, NC 27406 shannon@bta.org President-Elect Ronelle Ingram Steven Enterprises Inc. 17952 Sky Park Circle Ste. E Irvine, CA 92614 ronellei@msn.com Vice President Bill James WJS Enterprises Inc. 3315 Ridgelake Drive P.O. Box 6620 Metairie, LA 70009 bjames@wjsenterprises.com BTA East Thomas Chin Accolade Technologies LLC 31 Mamaroneck Ave. Ste. 508 White Plains, NY 10601 tchin@accotech.com BTA Mid-America Mike Blake Corporate Business Systems LLC 2018 S. Stoughton Road Madison, WI 53716 mblake@corpbussystems.com BTA Southeast Jerry Jackson All South Copiers (ASC) 1325 Cobb International Blvd.

Ste. A Kennesaw, GA 30152 jerry@ascopiers.com BTA West Rock Janecek Burtronics Business Systems Inc. 216 S. Arrowhead Ave. P.O. Box 1170 San Bernardino, CA 92408 rjanecek@burtronics.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Finkle Newman & Rosenberg Ltd. 222 S. Riverside Plaza Ste. 2100 Chicago, IL 60606 robert.goldberg@sfnr.com

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Sales Force Automation Could it take your dealership to new heights? by: Brent Hoskins, Office Technology Magazine

here was a day when the sales rep would hit the street each morning with a handful of 3-by5-inch index cards providing just enough contact information to call on a respectable number of prospects before 5 p.m. In the era of knocking on doors and selling hardware speeds and feeds only, perhaps the strategy was ample.

And, of course, there were few alternatives to the index cards.

Somewhere along the way, off-theshelf software, such as ACT! and GoldMine, found its way onto the desktop computers of many sales reps, helping them to keep track of their calls and prospect lists. Of course, many reps remain content only using these and similar products. After all, the software provides some degree of automation, while allowing them to protect their leads, control access to the details of their selling efforts and otherwise function independently of others.

“The sales rep doesn’t want to know whether or not he is calling on someone else’s account,” says Scott Lindsoe, general manager of Falcon Technology Solutions, makers of server-based Soaring Sales enterprise sales force management software, emphasizing the desire of the sales rep to continue only using ACT! or GoldMine. “He just wants to get the sale and deal with it later. ‘Oh, sorry, I didn’t know that was Joe’s account. Do I still get a commission for it?’”

Today, however, dealerships are increasingly taking advantage of industry-specific software tools, like Soaring Sales, designed to help them manage and monitor their sales efforts.

These systems not only provide contact management, they also provide things like territory management, proposal generators and forecasting tools. Could sales force automation take your dealership to new heights?

Tim Szczygiel, president of SalesChain LLC, which offers a

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Web-based customer base management and sales force automation system, says many dealership principals and sales managers may believe that a product like ACT! is all that is necessary. “They would say, ‘Yes, we have sales automation, we have ACT!’ or ‘we have GoldMine’” he says. “With that response in mind, it’s important to redefine what sales automation really means.

“Today, it’s not just about contact management and it’s not about having a PDA with a bunch of names on it, it’s about being able to look at your sales force as an owner and ask, ‘What are my salespeople doing for me today?’” explains Szczygiel. “‘What’s working and what’s not working? How well are my customers being served? How profitable am I with my sales efforts? Are my salespeople selling the things that I want them to sell?

Are they selling to the people I want them to sell to?’”

Similarly, Troy Casper, president of Compass Sales Solutions, a sales force automation and print management software developer, says many dealerships simply rely on products like ACT! for the sales force, even though they are accustomed to industry-specific ERP vendors like OMD and Digital Gateway on the service side. “I just don’t think there’s an awareness of what’s actually out there,” he says, referring in particular to principals and sales management. “They don’t know that we can help them manage their territories and manage their opportunities. But it is a change. We take them from having no control of their database to complete control.”

No control? “ We say ‘no control,’ because while the dealership may have a sales rep doing a great cost analysis on a spreadsheet, as soon as the rep leaves the company, where is that information going?” continues Casper. “It’s going with him. And then the new rep starts with absolutely nothing. It makes the dealership look horrible when the new

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rep goes out and talks to a 7,000 copier/MFP sales reps “Sales reps are walking customer who says, ‘Joe was are using Soaring Sales. around with the primary just here last week? Didn’t However, it appears that asset of the dealership — you know that? You should many dealerships have not know that.’” jumped on the bandwagon. the customer database — Szczygiel echoes the com“My real competitor is comand when they leave, they ment. “Sales reps are walking placency,” says Szczygiel. “If take it with them. What around with the primar y you look at the big three — we do is we take that asset of the dealership — the Soaring, Compass and Salesproblem away.” customer database — and Chain — altogether I would — Tim Szczygiel when they leave, they take it say we serve less than 20 SalesChain LLC with them,” he says. “What percent of the market, maywe do is we take that probe less than 15 percent.” blem away. We say to dealers, ‘First of all, let’s take care of Whatever the percentage, undoubtedly, there are your customer database.’ So, we are first and foremost agents dealers who may want to take a closer look at the sales for the owners, to take care of their data.” automation products available to them. Following is a brief Actually, it appears that a significant number of dealers look at the three companies already noted, plus Struchave already seen the value of using an industry-specific turedWeb, which also provides sales automation capabilisales automation system. Lindsoe, for example, reports that ties among its many offerings.

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Compass Sales Solutions rate proposals for print man“Dealers often say, Compass Sales Solutions agement with side-by-side ‘Compass has cut the (www.compasscontact.net) dealership service rate modtime to complete was born out of Casper’s els to generate dealership and efforts while working at a customer costs to service and paperwork by 70 percent.’

Utah dealership. He had supply an existing printer So, that’s time their developed a software tool to fleet, a new printer fleet or a sales reps can be closing assist him as a sales rep. As blend of existing and new ; business instead word spread about the beneand Territor y Manager, of doing paperwork.” fits of his software, he began which is a full sales CRM — Troy Casper to be asked if it could be pur(customer relationship manCompass Sales Solutions chased, ultimately leading to agement) designed for office the formation of Compass equipment sales reps. and to the availability of the software to dealers.

Among the many benefits of the Compass product that Today, the Compass Sales Suite is divided into three have received high marks by dealers, says Casper, is the modules with Opportunity Manager as the core application. It product’s ability to streamline paperwork. “You still see repserves to manage opportunities, calculate the clients’ total cost resentatives at the end of the month completing their paperof ownership, configure products and generate financial ratios. work and filling out seven to 10 documents, taking them The other two modules: Printer Manager, which develops accu- hours and hours,” he explains. “The Compass program automates that. We automate their commission sheets, sales orders, etc. Dealers often say, ‘Compass has cut the time to complete paperwork by 70 percent.’ So that’s time their sales reps can be closing business instead of doing paperwork.”

Falcon Technology Solutions The development of Falcon Technology Solutions’ (www.efalcontech.com) Soaring Sales product was also the result of the efforts within a local dealership. Lindsoe’s father was serving as a sales manager at a Minnesota dealership and was seeking a way to automate his sales force. “He was having trouble finding anything that worked well,” says Lindsoe. The result was the development of the first generation Soaring Sales product and a partnership between his father, uncle and the owner of the dealership. In January 2000, Falcon Technology Solutions was formed.

The Falcon Soaring Sales product is designed to provide the sales manager with the ability to review his (or her) team activity, set goals, establish territories, forecast, track leads and provide a number of reporting capabilities. In addition, the product’s server-based but Internet-accessible database allows sales reps to access their account information from the field. This includes the ability to access it via a PDA. “They can pull up accounts, see equipment, close calls and schedule new calls — all on the PDA,” says Lindsoe. “It’s all real-time information, but not stored on their PDA, which is important to owners.”

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their accounting data and Benchmarking Tool. “A lot of “Most sales force make it available to the dealtimes you don’t set up goals,” automation products ership so that sales reps can says Lindsoe. “ You don’t provide one-way be ‘dispatched’ when and to establish — ‘What should I whom it’s appropriate.” expect for calls? What should communication ... In I expect for demos?’ and contrast, StructuredWeb ‘ What should I expect for StructuredWeb provides salespeople with competitive machine finds?’”

Increasingly, in recent multiple ways to get With Soaring Sales, the manyears, dealers have b ebusiness intelligence ...” ager can create benchmarks, come familiar with Struc— Robert Weiss based on data gathered in turedWeb (www.structured StructuredWeb the field, to clearly define the web.com) as a company that expectations of sales reps. specializes in e-mail mar“That allows the manager to — either as a group or individu- keting tools and the development and hosting of dealership ally — set up goals and say, ‘Here’s what I expect.’ An automat- Web sites. What some may not know, however, is that the ically generated report provides the details to the manager of company also offers a comprehensive Web-based CRM database that provides sales force automation that includes how the rep did as compared to the benchmarks.” lead, contact, activity and opportunity forecasting manageSalesChain LLC ment functionality Unlike some of its competitors, SalesChain (www.sales Robert Weiss, vice president and manager of the Office chain.com) offers a Web-based sales force automation Equipment Division of StructuredWeb, emphasizes that one product. So, rather than using software and storing data on of the unique values of the company’s CRM/SFA functionthe dealership’s server, the data is stored at a secure data ality is its tie-in to a dealership’s daily sales efforts, Web site, center and accessible via the Internet. That model, says e-mail marketing, etc. “StructuredWeb allows various collecSzczygiel, saves the dealership money, since none of its IT tion points of data from which the salesperson can benefit,” resources have to be used to manage SalesChain. “It’s an he says. “Most sales force automation products provide only important differential,” he says. one-way communication, from the salesperson to the techThe company’s product is available at three different nology. In contrast, StructuredWeb provides salespeople levels — mySalesChain Gold, mySalesChain Platinum and with multiple ways to get business intelligence to make their mySalesChain Delivery Desk Automation. Gold provides day more productive.” reps and sales management access to all account informaFor example, he explains, a marketing campaign on a dealtion, such as account equipment, meter counts, monthly ership’s managed print services capabilities could include a averages, multimeter usage, lease buyouts and competitive direct mail piece or e-mail campaign that invites people to equipment details. Platinum enhances the Gold product by visit the dealership’s Web site. The prospect would be asked adding the capability to price and document sales pro- to complete a simple form. “If they want the information, posals and orders. It includes pricing/configuration cata- guess that they’re going to do?” asks Weiss. “They’re going to logs and leasing rates for calculating payments. And, finally, update the dealership’s database with valuable information, Delivery Desk Automation further enhances the product by and that goes directly to the sales department. providing complete workflow automation. So, when a piece “With all front-end lead development and sales processes of office equipment is purchased, the system allows depart- connected to their contact and organization data, dealers ments involved in the delivery process to efficiently com- can gather customer and prospect data in one central reposmunicate and collaborate, rather than relying on e-mails, itory and make better use of that data,” he word-of-mouth, etc. continues. “And information is power.”

Brent Hoskins, executive director of the Among the particularly notable features of SalesChain, Business Technology Association, says Szczygiel, is comprehensive leasing portfolio manageis editor of Office Technology magazine. ment. “We go out to the leasing companies every month on the dealer’s behalf, download their data, reconcile it with He can be reached at brent@bta.org.

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‘Fanatical About Service’ Associated Business Systems named Dealer of the Year by: Elizabeth Marvel, Office Technology Magazine

ssociated Business Systems of Portland, Ore., was presented with BTA’s 2008 Dealer of the Year award at the ITEX 2008 Show in Las Vegas.

With a goal of doing things differently than other dealerships, the company was established in June 1997. Associated’s president, Craig Knouf, founded the company with four other shareholders — two who were in sales, one who was in service and the fourth in adminstration.

“We all had left IKON, or the companies that IKON had acquired,” says Knouf. “And we decided that we wanted to do things a different way. So we left in the spring of 1997 and formed a business with the five of us and four other employees. We had no customers at all. We started walking down the street and telling the story of what our vision was.”

The vision that Knouf founded his business on is still alive and well today and the company has grown from nine employees to more than 180 and revenues have increased to more than $40 million each year.

“Our vision has been the same since we’ve opened the door,” says Knouf. “We had a couple of factors we wanted to key in on. We wanted to provide the highest level of service.

We wanted to be a technology leader. And we wanted to be the best place for an employee to work. And we didn’t mean just in Oregon, we meant anywhere in the country.”

Associated’s founders wanted to address several problems they saw in the industry. The first problem they concentrated on was improving service for their customers.

Because there has been a lot of consolidation in the industry, there has also been a consolidation of service. “You see that in all kinds of industries,” says Sam Kress, Associated’s vice president of marketing. “Customers are calling 1-800 numbers for service and inventory or parts are coming from thousands of miles away. There was a lot of customer dissatisfaction and part of the vision was to create a Nordstrom-type service in terms of flexibility, speed and responsiveness. That has really been the cornerstone for the company and it’s a message that

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BTA President Shannon Oliver (left) presents the 2008 BTA Dealer of the Year award to Craig Knouf, president of Associated Business Systems, Portland, Ore., during the ITEX 2008 Show. has resonated with the business community and is validated by our significant growth and increase in market share.”

About six years ago, Associated developed its motto: “Fanatical About Service.” The company hired a new ad agency and after looking over its revenue growth, the agency wanted to know why the company’s growth was so unique from the rest of the market. “They asked us to talk about why we were different and why our growth was so dramatically different from the rest of our industry,” says Knouf. “And so we started talking about our offerings and the things we did for our customers and our service model. The ad agency happened to use one of our competitors and so they

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10,000 images between calls, our technirecognized some of the things that we “Whenever you bring on cian makes the machine run 12,000 were doing in our service model that images between calls. We actually pay they weren’t getting from their own new technologies, you’ve them a bonus on every image that the copier company. got to look at them as machin e r uns b ett er than th e BEI “The ad agency said, ‘Wow, you guys investments. It’s an national average. I ’ve b een in th e really are fanatical about this stuff, aren’t investment in people industry 25 years and I don’t know of you?’ And we said, ‘Yeah, we really are. We and resources ... But it’s another company that’s paying their just take it to an extreme level — we not worth it in the long-run.” technicians that way.” only talk about it, but we live it and we’re This method of incentives and rewards excited about it.’ And he said, ‘That ought to be your slogan — how fanatical you guys are. Because has proven to be a good way to motivate employees and improve morale while establishing Associated’s culture. “Craig you’re over the top.’ It just stuck with us.”

An integral part of that enthusiasm for service comes has done an excellent job creating a company culture that profrom Knouf ’s belief that good service can only come from motes entrepreneurial spirit and is customer-oriented,” says employees who are satisfied with the company they work Kress. “People like working here. We don’t lose many for. And so, he has strived to create a workplace where his employees who choose to leave on their own. It’s just a good working environment. Happy employees are going to be happy employees enjoy coming to work.

“Customers were starting to receive poor levels of service in front of the customer and provide a higher level of service.”

Another part of Knouf ’s vision was to make his company and that’s because the people who were servicing them weren’t being taken care of and weren’t being appreciated by a technology leader in the marketplace. He has achieved their employers,” says Knouf. “So if you’re not being appreci- this, as well as much of his success, by arming his techniated by your employer and you’re not happy about your job, cians with the latest tools, his salespeople with the latest you’re not going to give a high level of service to your own and best training and establishing programs for managed customers, right? So by attracting the very best people and print services and document imaging.

“We started our managed print services division five years retaining them, we believe that the best people would do the ago,” says Knouf. “Because we recognized that if our copier best job with our customers.”

Associated seeks to empower its employees by giving them business was $20 million, if we just took over our own custools to do their jobs more effectively, as well as allowing tomers’ printing business, we’d double in size and be a $40 them to make decisions on the spot, instead of having to million company. We’ve made investments early on recogwade through bureaucracy. “Whether it’s a technician or an nizing that our customers wanted more than just a copier.”

“Investment” seems to be a key word for the company, admin employee with a billing issue, they’re all empowered to make good decisions,” says Kress. “If it’s good for the cus- and both Knouf and Kress think that investment has played tomer, it’s good for the company. Just go ahead and do it and a large part in the success of the dealership.

“Whenever you bring on new technologies, you’ve got to look eliminate a lot of the bureaucratic process most companies have to go through. It’s made a huge difference in terms of our at them as investments,” says Kress. “It’s an investment in people and resources and the commitment to weather that ability to react quickly and take care of the customer.”

To further incent its employees, Associated provides several short-term learning curve to stay in there for the long-term. It programs that encourage them to sell more and to provide takes time to get good at and develop your market for new better service. Top salespeople are taken on an annual trip to technologies. A lot of dealers think, ‘Okay, I’ll bring this on.

Mexico or Hawaii to reward them for their hard work. The Sounds good.’ And they throw it out there and it doesn’t stick — company holds annual Christmas parties and summer then they give up. It takes investment and it takes a solid compicnics, as well as smaller, themed events during the year. mitment of upper management knowing that Service technicians are motivated by the service incentive it’s going to take a while to get a return on that program, where they are given bonuses based on making their investment. But it’s worth it in the long run.”

Elizabeth Marvel is associate editor of machines run more effectively.

Office Technology magazine.

“We bonus our technicians based on what we call ‘running She can be reached at elizabeth@bta.org. averages,’” says Knouf. “So if BEI says a machine should run w w w . o f f i c e t e c h n o l o g y m a g . c o m | M a y 2 0 0 8 | 19

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Weathering the Storm Strategies to help you thrive in an uncertain economy by: Dennis LeStrange, Strategy Development

he debate is over. The U.S. economy is clearly struggling with a myriad of issues led by the two-plus-year decline in housing markets, the sub-prime mortgage fiasco and subsequent shakeout in the banking industry, all of which is surrounded by record high oil prices. Economists are predicting real gross domestic product (GDP) growth for 2008 at a meager 1.8 percent, down from a 2.5 percent growth estimate only three months ago — this according to the Federal Reserve Bank of Philadelphia (Feb. 12, 2008).

And while the federal government and the Federal Reserve Board have reacted with a variety of stimulus packages and rate reductions, more and more experts are beginning to use the “R” word — recession.

What impact will these items have on your business and what strategies should be implemented, not only to “weather the storm,” but to improve your results? Obviously, there is not much you can do to change the economy, as that is something far beyond your control. However, there are many actions that you should be incorporating into your day-to-day business operations in order to maintain and grow your company.

Until the uncertainty and gloom of the U.S. economy are replaced with stronger growth prospects and positive energy, I recommend that businesses focus on their core strengths and their customer bases and be prepared for delays with decisions on new equipment and programs. Even those customers and prospective customers who are not feeling any “economic” pain in their respective businesses may be circumspect with new investments and commitments.

Pay particular attention to three specific areas of your business — expenses/productivity, asset management/cash generation and sales. With a concerted effort to focus on these items,

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you will not only survive a weak economy, but your business will improve and grow.

Expenses & Productivity Use this opportunity to review and question current expense levels, particularly discretionary spending.

Challenge specific investments/ programs to ensure that the planned return meets the original expectation. Let your staff know that you will be inspecting all expenditures and they should be prepared with answers. This will set the tone for the entire organization.

The most effective way to complete this process is for the dealership principal to sign and/or approve all checks being issued by the organization. This type of review will prompt numerous questions that will result in a re-evaluation of many expenditures. If a particular organization is so large that this process would be unwieldy, then set a dollar target that would initiate a review by the dealership principal, or assign this task to the CFO. Remember, any delegation in this area removes some of the intensity.

Before adding any new employees, compare your productivity measurements to industry benchmarks. If your specific productivity is below that of the industry, then suspend hiring in that area until productivity reaches the norm.

Examine all disciplines (administration, service, sales, etc.), and only add employees when the current staffing level is stretched beyond your customer satisfaction goals.

Asset Management & Cash Generation Emphasize the need and importance of cash generation, particularly as it relates to A/R, inventory and A/P. Now is

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the time to increase the number of colto 70 p erc ent of qu ot a , w ith th e In addition to territory lection calls early in the cycle and to mulremainder of quota coming from nontiply the amount of customer collection customers. This eye-opening exercise analysis, sales contact through statement generation, will reveal excessively large territories, management must be delinquency notices and e-mail correas well as territories that are weak, disciplined with routine spondence. Post collection/cash goals in which will require realignment in order account-planning the A/R department and reward strong to grow revenue. sessions, account performances.

In addition to territory analysis, sales reviews and RAP sessions.

Be leery of vendor rebates and dismanagement must be disciplined with counts based on large inventory purroutine account-planning sessions, chases above normal run-rates, unless the discounts are account reviews and RAP sessions. Development plans for extraordinary. Make sure you understand your inventory each sales representative must be consistently completed needs, which should be predicated on your pipeline. Avoid the and reviewed. And as important as anything else, sales manmentality of taking product from the vendor’s warehouse and agement must create a positive environment where excuses, placing it in your warehouse when the buying cycle is being such as the economy, are replaced with tactics and strateextended due to a weakened economy. Deals from the sup- gies to grow pipelines. pliers will only sweeten over time; do not feel compelled to Examine the appointment-setting skills of your sales protake the initial offer. fessionals. A sales representative should have four to six Stretch payments to your suppliers to the very end of your legitimate appointments per week. The remainder of his terms without forgoing discounts. Examine all vendor pro- time should be spent making phone calls to establish grams to ensure that you have maximized rebates, credits, appointments. Making 20 appointment-setting calls per day trips, etc., leaving nothing on the table. Usually, this is a is an ideal target. If the sales representatives are not sched“paper chase,” so assign this task to your best inventory uling enough appointments, then evaluate their phone skills /purchasing/financial employee who is detail oriented. (listen in) and provide the necessary coaching and/or Strong cash generation should be a positive outcome of training to improve this critical task. any economic turndown.

Make investments in growth opportunities like B2C and print management. Stay in close contact with your best cusSales tomers and reconnect with some of your smaller customers Do not let negative economic news affect your sales by involving all areas of your business — sales, service and results; simply realize that the purchase cycle will probably administration. Rally your entire organization around your be extended and the effort of your sales organization must committed quest to grow equipment revenue. be stronger and more disciplined. Obviously, this translates There is no magic to growing equipment revenue in diffiinto being involved in more buying decisions in order to cult economic times. It involves a good sales process, comoffset delays that will naturally creep into the buying cycle, mitted sales leadership, effective sales activities and a but how can this be accomplished? willingness to “out-work” your competition. Good luck.

Dennis LeStrange is a principal at Strategy Development, a Under normal economic conditions, a sales professional management consulting firm specializing in sales coverage must have an active 30-day pipeline that is five times his (or methodologies, performance improvement strategies, sales her) monthly quota; a 30- to 90-day pipeline that is 10 times training and mergers and acquisitions. LeStrange has more his monthly quota; and a 90- to 180-day pipeline that is 20 than 25 years of experience in the imaging industry. He was times monthly quota. When the economic stress level is president and CEO of A-Copy, Alco Standard’s largest higher, the ratios of pipeline to quota must increase. In order operating company. Most recently, he was for this to occur, all aspects of the sales process must be in senior vice president of IKON North America. place and working effectively.

LeStrange can be reached at Territory analysis should be completed for each sales assignment where the installed base is dissected by lestrange@strategydevelopment.org or segment to determine the territory’s revenue potential.

(610) 909-5418.

Ideally, upgrade opportunities from the base should equate Visit www.strategydevelopment.com. w w w . o f f i c e t e c h n o l o g y m a g . c o m | M a y 2 0 0 8 | 21

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‘Educating U’ BTA Southeast conference held April 4-5 in Orlando by: Brent Hoskins, Office Technology Magazine

roviding an education and networking opportunity for dealers, the Southeast District of the Business Technolog y Association (BTA) hosted the “Educating U Conference,” April 4-5 in Orlando. The event, which drew attendees from both BTA Southeast and BTA East, featured pre- Above: Global’s sentations by Tom Johnson, chairman Tom Johnson. of Global Imaging Systems Inc., and Right: Attendees listen as a question Robert Weiss, vice president and is asked following manager of the Office Equipment his presentation.

Division for StructuredWeb. An optional luncheon featured BTA General Counsel Robert Goldberg as the speaker.

“For many years, BTA Southeast has hosted learning opportunities that have received high marks from attendees,” said BTA Southeast President Bob Smith, who also serves as president of Copiers Plus Inc. in Fayetteville, N.C. “This spring’s conference was no exception. The feedback at the conference was very positive, from both dealers and our sponsoring exhibitors. I am confident that all of our dealer attendees left with some practical insight and guidance that can help them in their businesses.”

The conference also featured exhibits of six of the sponsoring companies — Color Imaging, ECi, InfoDynamics, LEAF Financial Corp., Muratec America Inc. and Supplies Network (MWA Intelligence was also a sponsor). In addition, ECi sponsored the conference’s closing dinner, held at Universal Studios Florida.

BTA’s national president, Shannon Oliver, presented the 2008 BTA Volunteer of the Year award at the conference.

This year’s receipt of the honor, Terry Chapman, serves as vice president of BTA Southeast and as president of Business Electronics Corp. in Birmingham, Ala. Chapman was honored for his volunteerism within the district and for the

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counsel and guidance he has provided to BTA at the national level. “I was surprised and honored to have received this award,” he said, following the conference. “I’ve welcomed the chance to give back to the association and look forward to continuing my role as a BTA volunteer in the years to come, assisting the association in any way I can.”

As noted, Tom Johnson was among the presenters. While his comments focused in part on the acquisition of Global

by Xerox, he also shared some lessons learned in the form of advice to dealers. Among his words of guidance: “Any time there is a ‘sea change’ in your business, you can either cringe and fall back and get wimpish about it or you can say, ‘Boy, this is an opportunity for us.’”

“Part of the tough-mindedness, as you really grow your business over a period of time and look to maintain the health for your shareholders and employees, is to make tough decisions on people ... ‘Do I have the right people in place?’”

The next BTA Southeast Conference is scheduled for Oct. 24-26 in Waynesville, N.C. Watch for details at www.bta southeast.org as they become available.

Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine.

He can be reached at brent@bta.org.

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Equitrac: A Briefing Software vendor meets with industry analysts, editors by: Brent Hoskins, Office Technology Magazine

mphasizing the print tracking and cost recovery solutions vendor’s recent strides and new initiatives, officials from Plantation, Fla.-based Equitrac Corp. (www.equitrac.com) recently met with industry analysts and editors. The day-long briefing was held April 11 in Miami.

“We’ve made a lot of progress and Michael Rich I’m very pleased to tell you today we’re going to review what amounts to the culmination of four years of heavy lifting in terms of building an entirely new organization, new products, new portfolios and a number of new markets that we’ve entered,” said Michael Rich, president and CEO of Equitrac, alluding to the four years that have passed since the company hosted its first analysts and editors briefing.

“We’ve been in the business for 30 years, so it’s been 30 years of innovation. I would say that any product and technology that has survived over 30 years and has, in fact, thrived as Equitrac has, has an unassailable value proposition.”

As explained by various Equitrac and guest speakers throughout the briefing, that value proposition derives from the company’s line-up of solutions targeted for the legal and professional, office and enterprise, and education markets.

The vendor’s solutions, now used by more than 10,000 organizations, are designed to reduce paper/toner waste, recover costs, enhance security and simplify IT. Equitrac solutions are available both as device-embedded and terminal-based software that works with printers and copier/ MFPs from a variety of manufacturers, including Canon, Hewlett-Packard, Konica Minolta, Ricoh and Xerox.

Rich provided details on Equitrac’s relationships with the various hardware manufacturers. For example, in the case of Xerox, he reported on the success of the new Xerox Secure Access Unified ID System, a server-based, card recognition solution that provides a secure and convenient method to

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identify users at the MFP. “What we did is we took a subset of the capability of Equitrac Office and built a private label, custom product for Xerox,” he said, noting the product’s ability to authenticate and authorize users. “The purpose of this solution is to give Xerox a nice, neat entry point into the market and provide network-based security for their MFPclass devices. We introduced this product nine months ago and we’ve sold 5,000 units. This is a big, big success.”

Equitrac officials also took the opportunity to emphasize the functions inherent to its solutions that help customers pursue environmental sustainability initiatives. “For a long time now the focus has been on energy consumption, when you talked about IT, computers and software,” said Chris Wyszkowski, vice president of professional sales and marketing. “What we’re seeing emerging now, to our great delight, is a focus on consumables and printing. There is a growing awareness of green printing.”

Wyszkowski explained that Equitrac’s Office, Express and Professional products provide tools to reduce print waste and, so, print more efficiently. He specifically cited the company’s Follow-You Printing with Secure Document Release feature, which holds documents in a secure server and outputs them only when users authenticate themselves at the printer. “Just by preventing those jobs that are not retrieved from being printed out,” he said, “you can save 10 to 15 percent of all of your output.”

Finally, during the briefing, Rich commented some on the financial health of the privately-held company and its growth plans. “Overall, revenue growth has been inching up,” he said.

“We’ve gone through a transition in the business where the enterprise sales have really been a dominant force in our growth plan. We plan to grow at about 10 percent year-overyear. So, we have a pretty aggressive growth plan.”

Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine.

He can be reached at brent@bta.org. w w w . o f f i c e t e c h n o l o g y m a g . c o m | M a y 2 0 0 8 | 23

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COURTS & CAPITOLS

An Electronic Agreement E-mails can be used to create a binding contract by: Robert C. Goldberg, General Counsel for the Business Technology Association

often reflect on the generations of technology I have experienced during the 35 years I have been practicing law. Early in my career, I simply dealt with mail and endured the time it took from deposit in the system to receipt. Mail was replaced by FedEx and someone’s importance could be judged by the number of FedEx packages found on his (or her) desk at 10 a.m. each morning. Along with FedEx came the facsimile machine, which eliminated the overnight wait and delivered the communication immediately. Today, my life is ruled by electronic mail that reaches me anywhere, at all times of the day.

Contracts have been entered from the earliest days of barter. All agreements require an offer, an acceptance indicating a meeting of the minds on the terms, consideration for the promise of each party and, in most circumstances, a written document reflecting the agreement. With correspondence and FedEx, the procedure was easy. A contract was prepared and signed by each party. Facsimile presented a new wrinkle in that the signature was not an original, but a facsimile of the original. Many contracts were entered based upon a facsimile signature, but an original signature often followed in the mail. Eventually courts recognized facsimile signatures as sufficient to create a binding agreement.

Today, many business communications are handled by electronic mail. Seldom do these contain a signature and even if they do, its authenticity may be questionable. The sale of equipment, installation, maintenance and support may be subject to numerous electronic communications that, when viewed individually, do not constitute the complete terms and conditions. The issue becomes whether these many communications, when viewed together, constitute a valid and binding agreement. There is neither a signature nor a single document reflecting the agreement or lack of agreement.

Recently, a trial court was faced with this very issue and concluded that all of the e-mails discussing the proposal and the end-user’s acceptance of the terms were sufficient to establish an agreement to purchase the hardware, software, maintenance and support. The decision was appealed and upheld by the Appellate Court. The exchange of e-mails between the

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dealership and the end-user began with several options for the solution being sought. As the emails progressed, the options were refined and a final solution was determined. The next series of e-mails discussed maintenance and support.

Again there were various options that were ultimately reduced to one. Finally, the e-mails discussed delivery, installation, training and payment. The e-mails wound down with the salesperson advising that he would be stopping by with “the formal sales order reflecting our agreement.”

The e-mails indicated an agreement had been reached, but nothing had been signed. In fact, the salesperson was coming to the end-user to obtain a written signature. As you may suspect, prior to the end-user executing the sales order, they were approached by another vendor who reduced the price for an almost identical system. The end-user proceeded with the lower priced offer and refused to sign the sales order when presented. The original dealership sued for breach of contract and as previously indicated, two courts agreed there was a contract and it had been breached.

The court concluded that e-mails carry the same weight as a business proposition set forth on paper. A factor considered by the court was an e-mail summarizing the products and services to be provided. Although it was not complete in detail, the court found it was a sufficient framework to determine what the dealership had promised. In addition, the end-user indicated that she looked forward to seeing the salesperson with the sales order.

Dealerships must recognize that e-mails can create a legal agreement. During the negotiation stage, if you wish to avoid creating a commitment, make sure the message states that this communication does not constitute the final terms and conditions and is subject to the negotiation and execution of final terms and conditions. On the other hand, if you are seeking to establish a binding agreement, the disclaimer should be avoided.

As technologies change, so do the rules. Make sure to establish your objective in sending an email and prepare accordingly.

Robert C. Goldberg is general counsel for the Business Technology Association. He can be reached at robert.goldberg@sfnr.com.

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PRINCIPAL ISSUES

Rightsizing Your Territories Using the Business Equipment Quota Index by: Gregory Valen, Toshiba Business Solutions Hawaii

o sales reps regularly communicate to the principals or executives of your company that their territories are too small or that they do not have the potential of other territories? Or, do they feel that their quota levels are too high for the territories they are assigned?

Other than commission percentages, these are arguably the two most discussed and negotiated items of any sales compensation plan. The reason for this is that territories affect something very important to your salespeople — their pay.

That being said, every sales territory is different and has a different potential dependent on density and types of businesses within that territory. This surmises that each sales territory has a different opportunity (potential) and should have a different sales quota.

The question is: How do we break it up and create fair opportunities for all sales representatives? Good question. We know that throwing darts at the map on the wall only works in the short term.

The best answer that I have found is using the Business Equipment Quota Index (BEQI), which is provided by the Business Technology Association (BTA). It is used by many office technology manufacturers to evaluate business opportunities and set quotas for each state, county, metropolitan statistical area (MSA) and ZIP code. Each BEQI index number represents a geographic area’s share of total U.S. shipments for a particular category of equipment for the calendar year.

The interesting thing is it can also be used within your organization to evaluate business opportunities within each assigned territory by using the same criteria — county, MSA and ZIP codes.

Where do the BEQI numbers come from? For the 2007 BEQI, BTA contracted with ICR, a marketing research and consulting firm located in Media, Pa. ICR surveyed decision makers (561 completed surveys from companies in 12 industries, i.e., manufacturing, real estate, etc., with at least 10 employees) regarding their office equipment purchases in 2006 and planned purchases for 2007 and 2008. Those surveyed were specifically asked about 10 product categories, in some cases by speed and color versus monochrome. For example, the BEQI provides indices for 11-30 page per minute (ppm) monochrome MFPs, etc., and 11-30 ppm color MFPs, etc. To derive the BEQI indices, ratios of equipment purchases

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How can I use the BEQI? Here’s a quick example, using a Kansas City, Mo., dealership seeking to set a quota for one of the ZIP codes it serves.

• The BEQI index for monochrome MFPs in 2008 for ZIP code 64131 is .004985% • The dealer would convert the index to a decimal, so: .00004985.

• Gartner Dataquest forecasts that 2,052,533 monochrome MFPs will be placed in the U.S. market in 2008. The dealer can multiply the BEQI decimal equivalent for that ZIP code by the forecast number to determine that his dealership should expect to sell 102 monochrome MFPs in the 64131 ZIP code in 2008.

The 2007 BTA BEQI provides indices in these product categories: Monochrome MFPs: • All monochrome MFPs, 11-30 ppm, 31-69 ppm, 70+ ppm Color MFPs: • All color MFPs, 11-30 ppm, 31-69 ppm All monochrome and color MFPs Single-function color laser printers: • All single-function color laser printers, 11-30 ppm, 31-69 ppm, 70+ ppm All single-function monochrome laser printers Facsimile machines

per employee were computed at the industry level and then applied to the distribution of employment by the 12 industries (based on Dun & Bradstreet data) at each geographic level.

With the BEQI and a little understanding of Excel, all you have to do is plug in the unit placement forecast (or your total target number) into the formula (see sample above). The result is a number that can be used to assign targets for individual territories. Like most organizations, I use ZIP codes to assign territories. The BEQI helps to determine if territories are too large or small by using a more statistical approach. It is also direct information that can be provided to sales representatives to justify a decision or even used within their compensation program.

The BEQI provides information about opportunity and potential and will make your sales representatives perceive your organization as fair.

The BEQI can be ordered at www.bta.org.

Gregory Valen is vice president of Toshiba Business Solutions Hawaii. He can be reached at gregory.valen@tabs.toshiba.com. w w w . o f f i c e t e c h n o l o g y m a g . c o m | M a y 2 0 0 8 | 25

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PRINCIPAL ISSUES

Leadership Competencies Customer loyalty begins with the systems you establish by: Joanne L. Smikle, Smikle Training Services Inc.

Editor’s Note: Part one of this article appears in the April issue of Office Technology magazine, which can be found on the BTA Web site, www.bta.org. In the April article, Smikle discussed loyalty from within a dealership. Before one can work on external customer loyalty, he (or she) needs to improve upon loyalty from within — employee loyalty.

Smikle also began to discuss the four competencies that enable a dealership to lead the charge to customer loyalty — reflective ability, measurement aptitude, committed connectedness and strategic focus. Reflective ability, covered in part one of this article, is the ability to look back and take inventory of successes and failures.

This month, Smikle’s article continues with the final three competencies, beginning with measurement aptitude.

Measurement Aptitude am passionate about the importance of measurement.

Measurement aptitude is crucial to moving the dealership toward great customer relations. Measurement enables you to operate from facts, not fantasies. While there are external measures of service success, every dealership principal needs to know how to measure internally, analyze the results of those measures and report those results to stakeholders. Relying solely on external measurements is a mistake.

As the leader, you need to have firsthand knowledge of how the customers perceive your dealership and the service that they receive. If you are lacking the ability to lead these assessments, hire an expert familiar with both quantitative and qualitative measurement.

Beginning with the rationale for regular measurement, in addition to moving the dealership from fantasy to reality, it is also a clear sign that senior leadership cares about how customers feel. It is a sign that there is a genuine interest in how customers are treated and what they think of the dealership. It is also a sign that the leadership is concerned about building strong relationships with customers.

There are many methods for measurement. The easiest one that should be happening all of the time is informal conversation. You need to be talking to everyone in the company, whether it is the service techs, the sales force or the administrative staff. Fluid communication will yield better internal relationships. By simply chatting with people, you will become

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more approachable. If you are viewed as unapproachable, that perception will slowly but surely change.

Just as you will be using informal conversations to build bridges with staff, you will begin using them to connect with external customers. Get in the habit of talking to them when they come into the dealership. Replace the receptionist and answer the phones from time to time. You will become familiar with customers, their personnel and their ordering patterns.

Think about accompanying service techs and sales staff on their calls so that you can personally talk with customers. This enables you to put names with faces and it enables them to do the same. This will also help you begin building the communication channels discussed later in this article.

While talking with people is an excellent way to begin informal measurement, there is still a need for more formal tools. Of course there are surveys. Since most of us have been surveyed to death, I will not spend a lot of time on that measurement methodology. There is one important point though: Surveys must be tightly focused so that the data will be meaning ful. This will also ensure that the instrument is brief.

Remember, the longer the survey, the less likely that there will be a high number of respondents.

Focus groups are excellent tools for measuring the perceptions of internal and external customers. Use them to get a handle on the organizational climate. These structured

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news. Because the channel is used to discussions with staff will reveal much What you actually gather and share information, it is unrealabout motivation and enthusiasm in the istic to think that every bit of information dealership. You will also get information want is a relational will make you giddy. A good channel also on potential issues and problems that will approach. That relational delivers bad news from customers, staff surely impact service. Get a handle on approach is spawned and competitors. That information is delivthese issues before they erupt. Once they internally with the ered in a timely manner without fear of erupt, customer relationships can be negarelationships built daily recrimination. There are two tests of a tively impacted. in the dealership. leader’s ability to build strong, well-used Focus groups are also great for learning communication channels: about the needs, expectations and interests of external customers. These discussions give them a forum for Are people willing to deliver bad news when it happens? letting you know how you measure up and what else they want.

Do they deliver that information with candor and without You may be thinking, “How in the world am I going to get cus- censorship? tomers to come to the dealership and participate in a focus Communication channels are the essential element of comgroup?” Food. Discounts. Gifts. Add a social element to the gath- mitted connectedness. It is through these well-honed informaering. Provide incentives for participation. Be certain to invite a tion-sharing mechanisms that leaders are able to stay close to wide range of customers: the ones who order a lot and the ones the customer. These channels also enable leaders to stay close to who order a little; the ones who have sent compliments; and the the service providers who have daily customer contact. Whether ones who have lodged complaints. If you only invite the smiling those front-line people are service techs, secretaries or salespeople, they possess unique perspectives on customer needs. customers, you will not get the complete picture.

There is more to committed connectedness than a strong Committed Connectedness communication channel. Connectedness relies on formal and Maintaining contact with customers does not happen by informal touch-points. Informal touch-points include the faceaccident. It is not simply seeing them when they are on-site, to-face conversations that should happen every day in the mailing them literature and blasting them with e-mails. These dealership. These are conversations with each and every are certainly forms of contact, but real connectedness is quite person who touches the customer. As mentioned in the predifferent. It requires a planned effort at building communica- vious section, hearing from the front-line folks on a regular tion channels. These channels are used to facilitate vertical and basis enables you to gather valuable point-of-service data. horizontal information sharing. It is through the use of these You, as the principal, know what is going on as it happens. channels that service providers stay abreast of customer needs. These informal touches model the kind of communication Let us begin by defining a communication channel. This is expected from every service provider. They, too, should be the pipeline that carries information internally and externally. having regular conversations with customers who call, visit or A working channel has a two-way communication flow; deal- e-mail. The conversations must focus on more than the transership principals talk to staff, customers and competitors. It is action at hand. this flow of information that fuels the dealership with the The goal is to move past a transactional approach to sales competitive intelligence required to build customer loyalty. and service. What you actually want is a relational approach.

The channel does not begin and end at this most senior level. That relational approach is spawned internally with the relaInstead, the leader’s approach to maintaining dialogue is tionships built daily in the dealership. It is this relational modeled throughout the entire organization. In other words, approach that leads to customer loyalty. It is more natural for middle managers converse with service techs who also con- customers to feel committed to organizations that treat them verse with administrative staff. These are not random chit- as individuals, understand their businesses and respect them chat sessions. Rather, they are regular discussions of what is enough to solicit their opinions. going on with different customers, what they may need and Formal touch-points include scheduled visits to customer what is going on in the customers’ businesses. This also pro- locales. Even if your customers are far-flung in vast geographic motes discussion of how new products, promotions and serv- areas, it is worth the effort to come to their place of business. ices can benefit specific customers.

This enables you to have more meaning ful conversations There is another noteworthy aspect of a fully functional com- about how they do what they do. Being well-informed helps munication channel. Bad news is welcomed as readily as good you to cultivate the type of strong connections required to w w w . o f f i c e t e c h n o l o g y m a g . c o m | M a y 2 0 0 8 | 27

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cally for the service-related objectives. foster customer loyalty.

Just as revenue targets enable you to stay Another formal touch-point comes Customer loyalty does on track with fiscal progress, you need from volunteering to provide your exnot begin with the to build mechanisms for ongoing evaluapertise at your customers’ industry events. customer. Instead, it tion to determine progress toward cusYou may speak at a convention, provide begins with the systems tomer loyalty. demonstrations at regional trade shows or that you, as the dealer offer workshops at local events. These Require senior managers to create principal, establish ... It activities solidify your position as an exstrategic objectives for their business units. is not magically created. pert. They also bring you in touch with Those objectives push the emphasis on even more prospects. customer satisfaction further down in the Whatever methods you use to stay connected, use them organization. They also keep senior managers attentive to their consistently. Committed connectedness is maintained roles and responsibilities related to delivering customer loyalty. through regular contact. Scattered, uneven contact is as valuA word of caution about developing or revising a strategic able as no contact at all. Be willing to try different methods to plan: Many organizations spend more time and energy develstay in touch with staff and customers. Stick with the ones oping a plan than they do working toward goals. Senior manthat yield the most information. Be careful not to allow your agers go on countless retreats. These well-meaning managers methods of connection to get stale. Seek ideas about ways to wordsmith prosaic documents that say absolutely nothing. create new touch-points. Any useful ideas that keep you close Get to the bottom-line. Deal with the three critical questions to the customer will take you closer to building the profitable mentioned above. Create a macro-level game plan that is both realistic and challenging at the same time. Do not get bogged loyalty necessary to flourish. down in minutia. Do not get wrapped up in how each objective Strategic Focus is going to be implemented on the front-line. Instead, define Strategy is the underpinning of any successful business. gross parameters. Allow department heads to work with their Definitive, purposeful strategy answers three critical questions: staff to make the objectives real.

Why are we in business?

Another word of caution: Strategic plans do not need to be Where do we intend to be in the next three to five years? rewritten or revised every year. Stay the course on the plan How, on a macro level, do we plan to reach our strategic that you have created, assuming that it is a solid plan that objectives? makes sense for your unique business environment. Invest Strategic focus is the arrow that points you to the destina- energy tracking progress. If a company vacillates annually on tion. While profit is certainly the destination, customer loyalty the details of the strategic plan, sustainable momentum is is at the same map coordinate. Strategic focus is the force that both impossible and improbable. Momentum is key to fuels the constant drive to these twin destinations. It is this strategic focus. It is what keeps everyone engaged and interstrategic intent (with great attention to building customer ested in processes that build customer loyalty. loyalty) that keeps the dealership at maximum productivity and maximum profitability.

Summary Strategy without links to customer satisfaction will not Customer loyalty does not begin with the customer. Instead deliver customer loyalty. When devising the business tactics it begins with the systems that you, as the dealer principal, that form your overall strategy, it is essential to intertwine establish. Customer loyalty positively impacts revenue, reputatactics with your service philosophy. While you may be inter- tion, recruitment and retention. It is not magically created. It ested in customer loyalty, you do not become fully committed is the result of diligence, patience and continuous professional until it is at the core of both your strategy and your modus development. The leadership competencies discussed in this operandi. This connectedness is accomplished in three ways: article, consistently applied, will take you from talking about When developing or revising your strategic plan, deter- customer loyalty to actually building it. mine your long- and short-term objectives related to customer Joanne Smikle is an author, consultant and satisfaction. Those objectives cannot be formed in isolation. speaker specializing in leadership development.

They must be devised to coordinate with each of the other Visit www.smiklespeaks.com to read business objectives. more articles on current business topics.

Develop monitoring and evaluation methods specifiSmikle can be reached at (301) 596-3140.

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SELLING SOLUTIONS

The Case for Solution Sales Be prepared to make investments & changes by: Tom Kramer, Strategy Mapping Selling

heodore Levitt, in his 1983 book, The Marketing Imagination, made the following observation: “Customers … They don’t buy things, they buy solutions to problems.”

I have always been impressed with Levitt’s provocative and brilliant ideas on marketing because he expresses profound insights in very simple terms. So it is very simple to get, keep and grow customers — all we have to do is develop solutions to their particular problems. That, however, may not be as simple as it sounds.

Solution selling is nothing new, but to do it correctly, you must be prepared to make investments and change a few things. Here is a short list of the things you need to commit to do: Create unique and compelling value propositions that have high appeal to your target customers.

Broaden your company’s infrastructure (or outside partnerships) to support your solutions.

Change your go-to-market sales strategy and, perhaps, some of your people.

Align your organization to support your customer value propositions and solution-selling initiatives.

Now, why should you adopt a solution-selling strategy? The main reasons companies in our business have moved in this direction are: Customers are looking for a technology partner to come in and provide a total equipment, value-added software and workflow management solution.

Sophisticated buyers are always trying to commoditize products and push for a lower price. Providing integrated solutions gives you the opportunity to sell value and value protects margins.

Aggressive competitors are constantly trying to displace you. Integrated document solutions embed you deeper in your accounts and improve customer retention rates.

Companies that are successful in selling solutions see increased margins, they gain a greater share of their customers’

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business, they achieve higher level customer relationships and insulate themselves from competitive replacement.

But there is a cost associated with adopting a solution-selling strategy and it may not be the approach to use with every one of your customers. So you have to be careful about how you design and pursue this strategy and where you allocate your resources. Nonetheless, the rewards for success are significant.

What is more, failure to move in this direction will put your business at a distinct competitive disadvantage as you pursue growth and new business development in the future.

Value Propositions & Sales Strategy Let us focus on two key things that you need to address to make the successful transition to solution selling: developing unique and compelling value propositions and changing your sales strategy.

Creating unique and compelling value propositions requires that you do some deep thinking into how your customer defines or measures value and what types of solutions you are capable of providing that will meet their requirements.

I prefer to start this process from the customer’s point of view.

That way you will be sure that you are designing solutions that are relevant and have broad and transferable market appeal.

Unique means no one else can duplicate your solution. Compelling means that it has a positive impact on the customer’s bottom line — that is, it creates value for the customer and helps him (or her) run his business better. As I mentioned, this is not an easy exercise. But, if developed properly, you will have created a major and highly defensible competitive advantage.

Companies that are successful in making the transition to solution selling also change their sales strategy. They develop a consultative selling approach that focuses on creating value in collaboration with their customers. That is, they spend time developing a deep understanding of the customer’s business, their operational goals and objectives and their decision-making w w w . o f f i c e t e c h n o l o g y m a g . c o m | M a y 2 0 0 8 | 29

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consultative sales strategy. They may have process. In addition, they link the value of chan ged th eir marketin g and sal e s their solution to the achievement of their Companies that have message but failed to develop the infracustomer’s goals. What is more, they focus been successful in structure to support the solutions promtheir selling efforts on value buyers. making the transition ised. Or, they may have pushed solutions Successful solution sellers realize that to solution selling on customers who were more interested the power (or value) buyer resides higher develop solution value in product or commodity value so their in the customer organization and they propositions that are sales strategy and their customers’ buying create relationship plans to develop conunique and compelling. criteria did not match. tacts at multiple levels and in different functional areas within their accounts. A solution sale is generally a bigger sale involving many decision Best Practices makers who are located in different departments.

Companies that have been successful in making the transiIn our industry, the complex nature of solution selling tion to solution selling: requires a team approach. The account leader has the respon Develop solution value propositions that are unique and sibility to orchestrate all the products, services, technical spe- compelling.

Change their sales strategy to a consultative model. cialists and third-party partners required to maintain customer satisfaction throughout the sale, installation and Focus their solution-selling efforts on those customers post-sale service process. who buy value.

Train their sales representatives on higher level profesGenerally speaking, product-oriented salespeople do not have the leadership skills necessary to work within a complex sional selling skills.

Collaborate with their customers in developing solutions selling environment. Nor are they equipped to manage the communication requirements, the cross-functional resource they value.

Effectively communicate the value of their solutions coordination and the executive-level selling needed for solution selling. To address this situation, companies need to offerings and link the solution to the improvement of the cuseither invest in professional selling skills training or hire sales tomer’s bottom line.

Know when to use a solution-selling approach versus a representatives from the outside who possess higher level product-selling approach. selling competencies.

Tom Kramer is an affiliate partner of Strategy Mapping Selling.

He has more than 30 years of sales, sales Where Did We Go Wrong?

Companies that fail at solution selling usually do not management and marketing experience with develop the support infrastructure required, target the wrong IBM, Eastman Kodak Company and customers or fail to change the way they go to market. For Canon U.S.A. Inc. He can be reached at example, they may have used a product-driven marketing and tom.kramer@strategymappingselling.com. sales approach and failed to adopt a more customer-centric, Visit www.strategymappingselling.com.

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17 • Supplies Network (800) 729-9300 / www.suppliesnetwork.com

31 • Business Products Council Association

9 • InkCycle

7 • Toshiba

(800) 897-0250 / www.businessproductscouncil.org

(800) 736-8877 / www.inkcycle.com

(949) 462-6165 / www.copiers.toshiba.com

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Piecing Ideas Together.

The BPCA was founded in 1963 with the vision of forming a best practices organization that unites leaders of independently-owned office equipment dealers. The concept is quite simple - bring the leaders of these companies together so that they can share ideas, learn from each other, and take their businesses to the next level.

Our members will attest that it’s well worth the investment by making each of them better leaders and bringing more value to their dealerships.

Feel like there’s something missing from your organization? Let BPCA bring together all the pieces of the puzzle.

“Better Dealers Through Learning and Idea Exchange.”

If you’d like more information about our organization and how to join, please send us an email or give us a call.

Phone: 800.897.0250 Email: info@businessproductscouncil.org Website: www.businessproductscouncil.org Membership Director BPCA c/o BTA 12411 Wornall Road Kansas City, MO 64145

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Do you crunch the numbers,

or do the numbers crunch you?

T

he BTA ProFinance course will teach you how to set the strategy, track critical performance measures and manage your assets according to a proven business model designed to improve the profitability of your company.

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Office Technology Magazine Business Technology Association 12411 Wornall Road Kansas City, MO 64145 (816) 941-3100 www.officetechnologymag.com www.bta.org

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