NAMO November 2014 Newsletter

National association OF

ISSUE 07/ NOVEMBER 2014

MOTORCOACH operators Monthly

Become a great

listener

5 Ways to Make More Money FROM

FMCSA to Help

NTSB to FMCSA:

as Commercial Drivers

Existing Customers

BAN Hands-Free Phone

Train Veterans

4 COOL-HEADED STRATEGIES FOR RESPONDING TO NEGATIVE COMMENTS ONLINE/

Small-business owners spend good money on advertising...

3 SKILLS TO HELP YOUR TEAM COMPLETE KEY PROJECTS/

Project management is a must-have skill if you want...

COLLABORATOR SENTENCED IN GEORGIA CHAMELEON CARRIER CASE/

A Georgia man will serve 12 months of probation for his...

FACEBOOK GIVES PEOPLE A NEW WAY TO ‘TURN DOWN’ ANNOYING BRANDS/

Facebook is giving people more control over whose...

LOGGING DEVICE MANDATE: FMCSA TO BUILD REGISTRY OF APPROVED DEVICES/

The Federal Motor Carrier Safety Administration has...

FMCSA TO HELP TRAIN VETERANS AS COMMERCIAL DRIVERS/

The U.S. Department of Transportation’s Federal...

5 WAYS TO MAKE MORE MONEY FROM EXISTING CUSTOMERS/

Are you so single-mindedly focused on obtaining new...

BECOME A GREAT LISTENER/

At the beginning of my principal tenure, I was heavily...

FMCSA GEARING UP FOR STUDENT ART CONTEST REMINDING MOTORISTS, TRUCKERS TO BUCKLE UP/

The Federal Motor Carrier Safety Administration...

NTSB TO FMCSA: BAN HANDS-FREE PHONE USE/

Truck drivers should not use hands-free phones while...

HIRE SELFMOTIVATED PEOPLE — THE SINGLE SMARTEST THING A HIRING MANAGER CAN DO/

How recruiters can become a hero of your hiring...

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Chairman’s Message Dollars and Sense!

Markup vs. margin Are you confused between mark-up and margin?

Most operators think if you add 20% to something, you make 20%, but you don’t because if you divide 20 by the sale price of 120, not 100, and you get 16.7% then this discrepancy can have a dramatic impact on your bottom line.

If there’s only 10% in your bottom line and you’re running with a 40% gross profit, you make 28.2%, so you then don’t even have enough to pay your bills, and there goes your bottom line.

Adding a fuel surcharge to ticket prices is also an essential for boosting profits to updated levels. In a world where consumers drive out of their way to find the cheapest gas prices, it’s easy to see how price has become the deciding factor when it comes to shopping.

The motorcoach industry, it’s no different. The existence of cut-rate operators and stagnant pricing structures has helped to fuel a low-bid pricing mentality and dramatically devalued the industry’s services for years. With current economic conditions becoming more favorable, motorcoach operators have a great opportunity to take control of the market by raising prices and educating consumers to value service and safety above price. Industry voices have varying opinions on the topic but are unanimous about one thing — something must be done to stem

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the profit losses.

For some operators, matching a competitor’s lowball pricing to keep a customer is just as harmful.

While the customer may be king, this aspect of the motorcoach industry has done more harm than good the industry has been too customer driven for a long time, and it does whatever the customer wants. The industry has trained the public to think that that’s all trips are worth develop a pricing structure that your comfortable with and stick to it. Don’t negotiate!

Although you may lose 10% of your customers a year due to pricing, they eventually come back and say they weren’t satisfied with the competition’s service.

Instead try selling service and quality. The general public is so conditioned to naming its own price, and with Internet shopping on the rise this may have a lot to do with it. There are many hidden costs that people don’t see or don’t think about until they are faced with them, and it’s easy for any person, regardless of what the business is, to know the bigger cost picture, such as payroll, fuel and equipment costs. But that doesn’t take into consideration extra driver costs to meet the hours-of-service requirements and the depreciation costs on the equipment. Operators need to be cognizant of other obscure aspects of the business that will affect its future, particularly the lifecycle of the equipment —i.e. the air conditioner, the engine, components, tires etc. — and factor in what it will cost to cover the replacement of those items.

Education may be one way to curb the problem of rock bottom pricing by operators. Both customers and

operators need to understand the stakes to control the situation. Encourage your potential customer to be sure that the company they are going with has a safe record and maintains adequate insurance levels, refer them to SaferSys to check the status of a companies operating authority, licensing, insurance, USDOT safety rating, proof of vehicle’s mechanical inspection and existence of subcontracting agreements.

While educating customers is key, learning how and what to sell to the customer is just as vital. Selling price educates the customer to only look at price.

Instead sell value. Create opportunities for customers instead of having golfers hop in their cars to caravan down to Myrtle Beach, a big destination on the East Coast, take that opportunity and say why spend the money on fuel? Charter a coach and we’ll make a great experience for you. If you get people excited about the experience, price becomes secondary. It’s important to learn about the customer first. The best way to learn about your customer is to ask open-ended questions to start a dialogue, get details, determine their needs and preferences’, and then quote them based on this information.

Distinguish yourself in the marketplace to standout from a lowball operator. Try finding a way to be as different as you can from your competitor, so you can justify to the consumer why they are paying you a little bit more. Several ways to set yourself apart from a low ball operator includes marketing the whole experience of a coach trip, promoting safety record and performance history and emphasizing the quality of service, employees or equipment.

Once customers are sold on the value of the your services, they will be willing to pay more for them, and operators can begin to incorporate pricing structures that are profit based and in tune with current costs.

At a recent industry conference according to Graham Foster, international speaker, and author of “The Power of Positive Profit,” raising prices is the most effective way to increase profit. The three ways to change a business is to sell more, cut costs, or change prices.

“Most people in the motorcoach industry book coaches more often or cut costs. Whereas, mathematically you can prove that price is the strongest factor,” Foster says the minimum amount motorcoach operators should raise their rates is with inflation. When Foster asked operators how much they were charging per day for a coach, their answer was $600,” Foster says. “When I asked them how much they would be charging in

10 years, they said $600.” Because of the competitive nature of the business, operators are fearful of losing customers if rates are raised. But raising prices is an important part of balancing the entire business, says Foster. Foster recommends that operators set a goal to boost sales by 1%, reduce costs by 1% and raise prices by 1%. “If you balance these three facets, you will find enormous increases in profitability down on the bottom line. Like the rest of the televisionviewing public, motorcoach operators are constantly bombarded with commercials boasting lower-priced products, which reinforces the notion that cheaper is better. Foster compares General Motors’ (GM) current employee-priced sales campaign to the motorcoach industry by saying the focus on lower prices will only increase sales volume and not help the company at all in the long run. “Within a month or two you’ll find out that General Motors, having sold a lot of cars, will have made no money,” says Foster.

“That’s the problem, they are preoccupied with sales volume.” Even companies with the best intentions, if preoccupied with price or sales volume, can become low ballers. For example, when large companies such as GM begin employing price-trimming tactics, the majority of people will begin to believe that the way to run a good business is to cut prices, which opens the door for more lowball businesses. “A lot of lowball operators are just nice people who never set out to make a profit,” says Foster.

In the end this only serves to make a living, and that drags the whole industry down.

Daryl Johnson

J and J Charter, Chairman, NAMO

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Commercial Vehicle

Commercial Vehicle Loading Permits in DC Commercial Vehicle Loading Permits Available Today in DC. As reported last week, Washington DC is launching a new curbside loading zone program for commercial motor vehicles parked on the city’s streets. This program requires delivery vehicles to obtain an annual or daily permit, or pay an hourly rate, to park in a commercial loading zone at curbside. It does not apply if you are parked at a private loading dock.

- Annual Permits: Annual permits may be purchased if your vehicles regularly enter the District. The cost is $323 per vehicle for a calendar year permit, plus a $50 annual fee for a company. An annual permit decal must be displayed in a vehicle’s windshield unless you buy more than 75 permits. Trucks up to 40’ that have an annual permit may also park in metered spaces between 10 a.m. and 2 p.m.

- Daily Permits: Daily permits can be obtained online and will be available for printing the day of purchase.

The cost is $25 per vehicle.

- Hourly Pay-by-Phone: A pay-by-phone option through ParkMobile is available to companies who do not purchase annual or daily permits. The cost is $2 per hour.

Weigh Station Reopens this Week on I-83 in Parkton.

On November 6th the truck weigh and inspection station on Interstate 83 southbound in Parkton will reopen. This station has been closed since early 2013 for a $3.2 million renovation. It will now include an inspection pit and parking for vehicles placed out of service. In addition, the facility has been modernized 8

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to include a full platform truck scale, which will significantly reduce the time required to weigh a commercial vehicle.

Maryland Ranks Number 1 in Commercial Motor Vehicle Enforcement. The American Transportation Research Institute (ATRI) recently ranked Maryland number one in its new report, “Commercial Motor Vehicle Enforcement – Top 10 High-Performance States”. ATRI utilized several dozen safety and performance metrics in its evaluation. Among the notable findings were that Maryland had the highest number of roadside inspections per million vehicle miles traveled and was second in violations issued.

Members make sure to take advantage of the your extra benefits available do you from Maryland Motor Truck Association (MMTA) due to our partnership.

Upcoming Events with MMTA Register at https://connect.computility.com/f/fid.ph p?id=1c6c2e80eedc58b6f05a4d17dde8810a.

- Nov. 20: Eastern Shore Chapter Meeting; 6 p.m.; at Cambridge Yacht Club; Cambridge, MD. - Dec. 3: Training Session: What to Do When Involved in an Accident?; 9 a.m.; at MMTA, Baltimore, MD - Dec. 4: Western MD Legislative Dinner; 6 p.m.; at Dutch’s Daughter; Frederick, MD. - Dec. 5: MD Movers Conference Holiday Social; 7 p.m.; at Bare Bones; Ellicott City, MD.

In regards to the Motorcoach Marketing program, we love it. So far, we have made the 1000 postcards, and we did some full page handouts. We just got a stand up banner.

When I get some time, I’ll be making new rack cards for both offices. We made 500 church theme postcards and 500 in the safety theme.

We sent out the church cards through a local mailing company to every church within 50 miles. So far, we have had a great response and 4-5 people booked trips from it. I plan on using the safety ones soon by sending them to our new customers. All of our staff and drivers love the modern design and the finished products. Only one of my staff has watched the videos so far, but we will be working on that next month. So far I’m very happy with the service. It works well and looks great!

Chris Knittel

Owner/General Manager New Mexico Texas Coaches, LLC

We Help Operators Sell More Charters To More People.

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Complete Key Projects

3 Skills to Help Your Team Co Project management is a must-have skill if you want to run a successful business. Use these 3 strategies to plan ahead, stay on task and finish strong.

How is work most often accomplished at your small business? If yours is like most companies, you and your managers create projects to complete a task—developing a website, designing a marketing piece, creating a new product or service, and the other activities that are critical to the success of your business.

And while it’s critical to have some type of organized method to get those tasks completed, many smallbusiness owners don’t use a standard system for accomplishing work tasks. The problem with that approach? It can cost you money—if you’re consistently reinventing the wheel to get work done in your business, it will definitely impact your bottom line.

Using project management skills to get your projects done will help you create effective systems so you can more easily achieve your goals. The good news is, you don’t need to have formal project management certification to create a system that works for you. Being proficient in the following three key skills will take you a long way to success.

1. Project Planning Planning is key to successfully completing the objective at hand. You need to be clear about the expected outcome and the tasks that need to be accomplished to get it done. The first step is to identify the scope of the project. How big is it? What are the boundaries? Who is it for? I like to call this “creating your box.” You’re literally identifying how big your project will be, along with what’s in (and out) of the box.

Then you need to make sure you brainstorm every single task that needs to be accomplished to get from idea stage to the final outcome. Don’t worry about putting the

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omplete Key Projects

tasks in order—just brainstorm what you think needs to happen. Once you’re done brainstorming, arrange the tasks in the most logical sequence for getting your project completed.

As you put them in order, it’s possible you may think of additional tasks— that’s OK, just add them in.

You’ll also want to include your estimated budget for the project.

Be realistic when creating your budget—erring on the conservative side can be detrimental to your bottom line. While this may flex one way or another during completion, 12 www.greenazine.com

having an initial budget will help you stay within your budget.

2. Team Management Whether you use employees or contract staff, you want to make sure to include every team member who has a part in the completion of your project. Determining whom you need with what type of skills before you begin will help you more realistically plan your project. Take a look at all your project tasks to determine exactly what type of talent you need to complete each task.

Once you have your team together, define who will do what and when.

Make sure you clearly identify those tasks that have dependencies between different team members.

Having one team member fall behind on a task that others are waiting for can put your entire project in jeopardy, so be sure to clearly designate roles and responsibilities for each team member. It’s a good idea to create a spreadsheet or tracking form that includes task, team member and timeline to use for the duration of the project.

There’s no such thing as communicating too much when you’re working on a project with multiple people.

Also plan to have regular check-ins with your entire team. These should be held at least weekly for a project that has a long duration and as often as daily for a project that has a shorter timeline. You should discuss both the general health and status of the project as well as address any immediate issues that need to be resolved.

3. Communication There’s no such thing as communicating too much when you’re working on a project with multiple people. So, when planning your project, be sure to designate topics, people and timelines for communication of a specific nature, such as team meetings or weekly emails.

In addition to general, day-to-day communication about the project, you should include both short-term and long-term ways that people

should stay in contact. You want to stay on top of what’s happening in the short term and solve any problems that could be stumbling blocks, but you also don’t want to lose sight of the long-term goal.

The best way to do this is to set up a schedule of communication activities.

These will include both individual and team meetings. In order not to waste your team’s time spinning their wheels with inefficiency, plan what will be covered in each meeting in advance—this will help your project run more smoothly.

Make sure your team understands when to communicate what information and what constitutes a “show stopper” situation. Nothing is worse than moving along blindly thinking everything is going fine with your project when it’s not.

Following a few key project management activities will help you and your team successfully pull off any work project, no matter how big.

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Chameleon Carrier Case

Collaborator Sentenced in Georgia Chameleon Carrier Case.

Lewis pleaded guilty to violating the orders and was subsequently sent to jail for 90 days

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A Georgia man will serve 12 months of probation for his role in helping another man violate an Imminent Hazard Out-of-Service Order via a chameleon carrier scheme.

The defendant, Corey Daniels, pleaded guilty Jan. 31 to one count of conspiracy to violate the order, according to court records in the U.S. District Court in Macon, Ga. Daniels was sentenced on Oct. 24, following a presentence investigation.

Daniels and three other defendants were charged in the conspiracy, including Devasko Lewis, who had previously served jail time in 2012 for operating a commercial vehicle in violation of an imminent hazard order.

According to a news release by the U.S. Department of Transportation’s Office of Inspector General, an October 2008 investigation was launched into Lewis, after a truck operated by his Georgia-based Lewis Trucking Co. was involved in a fatal crash in Alabama on U.S. 82. The truck, which was hauling wood, reportedly crashed head-on with a passenger van hauling state prisoners from one correctional facility to another. Six prisoners and one corrections employee were killed in the crash.

Lewis Trucking Co. was ordered by the Federal Motor Carrier Safety Administration to cease all operations after a compliance review uncovered “serious violations” following the crash, a news release states.

Subsequently, Lewis formed DDL Transport LLC, which was ultimately placed under another order. In May 2012, Lewis pleaded guilty to violating the orders and was subsequently sent to jail for 90 days to be followed by 12 months supervised release.

After his guilty plea and before

sentencing, Lewis obtained DOT numbers for Eagle Transport and Eagle Trans using the identity of friends, including Daniels, and failing to reveal his involvement to FMCSA as owner-operator of the companies.

After reporting to federal prison in November 2012, Lewis continued operating Eagle Trans with the assistance of Daniels and others.

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Once again, Setra has raised the benchmark in the North American luxury motorcoach segment, with over 30 innovations in design, passenger and driver comfort, safety and environmental efficiencies. Daimler’s new, unique Front Collision Guard (FCG), for instance, is a passive safety system engineered to protect the driver and tour guide in the case of a frontal impact. Experience the all-new Setra TopClass S 417. From Daimler Buses North America, the worldwide leading manufacturer of buses and motorcoaches.

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Turn Down Annoying Brands

Facebook Gives People a Down’ Annoying Brands 18 www.greenazine.com

a New Way to ‘Turn s www.greenazine.com

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The update means Facebook will put more of a filter on the content you see from friends or brands you “turn down,” Facebook is giving people more control over whose content occupies their news feed on the social network, arguably the web’s most prized real estate.

People will be able to see which of their friends or the brands they follow accounted for the most posts in their news feeds each week, Facebook said Friday.

What’s more, the company also introduced a way for people to dial down the number of posts they see from a given friend or brand, as opposed to completely hiding them.

The update means Facebook will put more of a filter on the content you see from friends or brands you “turn down,” ideally making sure that only their most relevant or compelling posts show up on your screen.

For marketers, the main implication is that it’ll be easier for people to keep tabs on oversharing -- and punish brands for poor posts. It will still take people at least two clicks to unfollow a brand, but the decision is no longer as drastic as staying connected to a brand or silencing it entirely. Now anyone who’s on the fence -- those who might like as many of a brand’s posts as they dislike -- will be able to compromise by telling Facebook they want to see fewer posts from that brand.

Whether people will use the new controls will remain to be seen. But when brands saw their organic reach on Facebook dwindle last year, the company chalked it up to a lot of people tagging the brands’ posts as spam. Marketers could experience a similar impact if enough people tell Facebook they want to see less content from a brand.

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YOU’RE HEADED FOR SUCCESS. WE’RE FAMILIAR WITH THE ROUTE.

Prevost coaches do more than transport your passengers in style and safety. They move your business forward by giving you the best in dependability, fuel efficiency and support. Our high deck H-Series Coach offers state-of-the-art amenities that elevate every passenger’s experience. Our longer-wheelbase X3-45 Coach combines the smoothest possible ride with a wider entry and 80" high interior passenger space. All Prevost coaches deliver exceptional performance with lower operating costs. Which means they’re as perfect for your business as they are for your passengers.

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T h e u l t i m a t e c l a s s.

Responding to Comments

4 CoolHeaded Strategies for Responding to Negative Comments Online Small-business owners spend good money on advertising, media relations and other promotional materials to increase brand awareness and control the conversation surrounding the business. Although these tactics can be effective, one of the biggest factors that sway consumers’ opinions is feedback from others.

Years ago, word of mouth was a very literal expression that meant one person shared their experience with their friends and colleagues and then those people

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shared with their network and so forth.

These days, when a customer is upset with their experience, the first thing they do is announce their opinion on social media and web forums.

Related: Got a Bad Yelp Review? Here’s How to Defend Your Business Online.

(Infographic) So what do you do when you get a scathing Yelp! review about the terrible service and cold soup at your family restaurant or a horrible post on Ripoff Report about your gym’s cancellation policy? The tips below will help answer these questions and outline some of the best practices for handling bad reviews.

1. Know that time is of the essence.

To gain back trust after a scathing review, make sure you say something as soon as possible. A quick response shows that the business has nothing to hide. It’s important to note, however, that the messaging needs to be thoughtful and accurate, since the audience may already be aggressive and you don’t want to fuel an already existing fire.

Sometimes, the best response is something simple, such as “We are very sorry for the inconvenience and frustration that you’ve been experiencing. Please contact me directly at [email address] and we’ll get this figured out.”

2. Admit wrongdoing and apologize.

If the complaint is legitimate and truthful, it’s important to step up and take the blame. People often respond negatively online to businesses that are trying to evade the blame or pass it off on someone else. Conversely, customers are more likely to forgive and forget if the owner apologizes sincerely and then tries to make amends.

Related: Don’t Make These Customer Review Monitoring Mistakes If the angry customer who received poor service and cold soup wrote on the local restaurant’s Facebook page, then the restaurant could respond back by saying that they truly apologize for the negative service, and would like to make it up to them by offering a meal for them on the house. A business owner should then go to their employees and pinpoint the problem, so the issue does not continue.

3. Don’t feel obligated to respond to everyone.

Often times, online comments can be crude or vulgar because people are more courageous when hiding behind a computer screen. If the comment is a personal attack or vague, don’t engage.

Only respond to specific complaints about your service or the customer’s experience. Acting defensively or engaging in the foul play can make you and your business look petty and childish.

4. Ask yourself, do you want to be right or rich?

Your objective is to have a successful business. Don’t sabotage yourself by turning current and prospective customers off with an emotional or defensive response to an online comment. Keep the big picture in mind and ask yourself if your response is going to help or hurt your business.

Never respond out of emotion or argue over details, and always keep in mind that the best way to go about responding to negativity is to take the conversation offline.

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FMCSA Logging Devices

Logging Device Mandate: FMCSA to Build Registry of Approved Devices The Federal Motor Carrier Safety Administration has started the process of registering FMCSAapproved electronic logging devices in preparation for the upcoming ELD mandate, which likely will begin sometime in 2017.

The agency says it will maintain a list on its website of current ELD makers and devices that are certified

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to meet federally required ELD specifications.

FMCSA says it expects all 22 ELD makers to register their devices electronically, and that it estimates roughly 88 different devices will be registered.

The agency’s proposed rule to mandate ELDs — published in

March — included specification requirements for the ELD hardware, “to ensure consistency among manufacturers and devices,” the agency says.

The rule also requires ELD makers to register compliant devices with FMCSA.

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Training Veterans

FMCSA to Help Train Vete Commercial Drivers 30 www.greenazine.com

erans as

The U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) today announced it has awarded $1 million in grants to nine technical and community colleges across the country to help train returning military veterans for jobs as commercial bus and truck drivers.

The funding is provided through FMCSA’s Commercial Motor Vehicle - Operator Safety Training (CMV-OST) grant program.

“Those that we entrust to protect and serve our nation deserve opportunities that utilize the skills and training they received on the job on military bases overseas and at home,” said U.S. Transportation Secretary Anthony Foxx. “We can think of none more appropriate to safeguard our highways as commercial vehicle drivers than the thousands of veterans who have already proven they can safely handle large vehicles under extremely stressful circumstances.”

“These unique grants are designed to help recruit, train and place veterans and their spouses in good jobs that are in high demand and in an industry that is vitally important in keeping our national economy moving forward,” said FMCSA Acting Administrator Scott Darling.

“Graduates of these training programs are continuing to serve our nation by ensuring that the goods and products we depend on are delivered professionally, efficiently and, most importantly, safely.”

FMCSA awards CMV-OST grants to organizations that provide truck driving training, including accredited public or private colleges, universities, vocationaltechnical schools, post-secondary educational institutions, truck driver training schools, associations, and

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state and local governments, including federallyrecognized Native American tribal governments. The funds are used to recruit, train, and provide students job placement assistance after graduation.

The 2014 FMCSA grants announced today will provide training for nearly 400 new students. The awards were made to the following organizations: Florida – South Florida State College, Avon Park, Fla., $58,003 Illinois – Joliet Junior College, Joliet, Ill., $165,800 Minnesota – Century College in White Bear Lake, Minn., $91,080 Missouri – Crowder College, Neosho, Mo., $72,160 Nebraska – Metropolitan Community College, Omaha, Ne., $47,614 Pennsylvania – Northampton County Area Community College, Bethlehem, Pa., $134,400 Pennsylvania – The Sage Corporation, Camp Hill, Pa., $249,968 Texas – Lone Star College-North Harris, Houston, Texas, $73,704 Virginia – Tidewater Community College, Norfolk, Va., $107,271 The Commercial Motor Vehicle - Operator Safety Training Grant Program was established by Congress in 2005 through the Safe, Accountable, Flexible, Efficient Transportation Equity Act – A Legacy

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for Users (SAFETEA-LU), to expand the number of commercial driver’s license (CDL) holders possessing enhanced operator safety training to help reduce the severity and number of crashes on U.S. roads involving large trucks and buses.

In July 2014, FMCSA announced that the Military Skills Test Waiver Program had been expanded to include all 50 states and the District of Columbia.

Under this program, state licensing agencies have authority to waive the skills test portion of the CDL application for active duty or recently separated veterans who possess at least two years of safe driving experience operating a military truck or bus. Waiving the skills test expedites the civilian commercial drivers licensing application process and reduces expenses for qualified individuals and operating costs to state licensing agencies.

FMCSA also announced this summer that, commencing with Virginia residents, returning military service personnel who possess a state-issued Skill Performance Evaluation (SPE) certificate due to a limb impairment will automatically be recognized as equivalent to an FMCSA-issued SPE certificate and allowed to obtain an interstate commercial driver’s license (CDL). FMCSA encourages other state licensing agencies to establish comparable equivalency SPE programs.

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Making More Money

5 Ways to Make More Money From Existing Customers 34 www.greenazine.com

y

Actively pursuing additional revenue from existing customers is considered “significantly important” to some threequarters of respondents.

Are you so single-mindedly focused on obtaining new customers that you never think about marketing to the ones you have? Targeting existing customers as sources of new revenues can be a highly effective marketing strategy for small businesses. After all, it’s easier to sell more to existing customers who already know and trust your business than to attract new ones who have

never heard of you and convince them to buy from you.

A recent study by Influitive measured how businesses of all sizes market to existing customers and found that doing so can really pay off. Here’s what they learned:

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Actively pursuing additional revenue from existing customers is considered “significantly important” to some three-quarters of respondents.

That’s why 92 percent of companies studied have customer marketing initiatives.

As a result, 53 percent report moderate to significant revenue from these efforts.

Here’s a closer look at the most popular methods businesses in the study use to market to existing customers, and ideas for incorporating them in your own business—whether it’s B2B or B2C. Hosting customer and/or user events: More than 60 percent of companies polled do this. If you’re hosting events for B2B companies, it helps to have some educational component. For example, host an online webinar or offline seminar where experts from your company advise customers on how to do something better, overcome a common industry challenge or talk about upcoming trends for the new year. Don’t give a hard sell, but present at least some challenges or trends that your business can help customers handle.

If you sell B2C, user events can be fun and festive, like an after-hours party at your clothing boutique for your best customers to enjoy a fashion show and get early access to next season’s fashions, or a special tasting dinner at your restaurant that’s invitationonly. By creating a sense of exclusivity, you encourage customers to feel a special relationship with your business—and buy more from you.

Starting a customer testimonial program: Over half of companies in the survey have a testimonial program in place. Testimonials are valuable advertising tools, but if you only gather testimonials haphazardly, you’re not maximizing their value. Develop a system for asking all satisfied customers if they’d like to give a testimonial. Make it easy by using an online form or email so they just have to fill in the blanks. Be sure to ask right after you’ve ascertained they’re happy with the product or service, while the purchasing experience is still fresh in their mind.

Creating an online customer community: More than half of companies in the survey use this tactic.

It sounds complex, but really, all you have to do is

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take advantage of social media to start a community on whatever social network your customers use— whether that’s launching a group for your business customers on LinkedIn or engaging with new moms on Facebook. When you have a thriving community, you’ll not only be able to let them know about your new products or services to encourage more buying, but you can also listen to what they want from your business so you can develop new product or service lines and new revenue streams.

Developing cross-sell and/or upsell campaigns: Half of companies surveyed do this. It’s simple to do by making sure your salespeople are well versed in all the products or services that make good add-ons

to purchases. For instance, if a business customer buys a copier from your company, upsell them to a warranty program and/or monthly servicing, then cross-sell regular delivery of toner and paper along with their service. If you own a restaurant, train servers to suggest appetizers, higher-priced beverages and desserts or coffee instead of just taking orders for entrees and water.

Starting a customer referral program: I’m surprised only 46 percent of survey respondents do this, since it’s one of the single most effective ways of generating more business from current customers. As with testimonials, the key is setting up a system to ensure you regularly request referrals from each satisfied

customer after you’ve made sure they are, indeed, happy with your product or service. Again, make it as simple as possible, whether that’s filling out a quick form at the point-of-sale or responding to an email from your business. Last, but not least, follow up on those referrals quickly before they go stale.

By implementing these tactics, you’ll see revenues grow.

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Great Listener...

Become a Great Listener “If we were supposed to talk more than we listen, we would have two tongues and one ear.” ~ Mark Twain At the beginning of my principal tenure, I was heavily criticized for rushing into decisions without getting sufficient input and feedback.

I had been under the clear impression that certain changes needed to be made quickly in order to gain the trust of the board that had hired me.

I had also heard from many teachers and parents who were eager to see improvements in various areas of school function.

However, in my haste to be a change agent, I acted too quickly too often and soon developed a reputation for being a unilateral decision maker. It

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was a moniker that I would continue to deal with, even as I took great pains to become more open and collaborative.

To succeed in today’s business world, leaders must be proactive, skilled listeners. Leaders who make themselves accessible for conversation and listen regularly are well-informed of the goings on in their workplaces. They better understand others’ opinions and attitudes and are able to take this information into consideration when making decisions.

There are other benefits to listening well. One is building trust. Effective listening conveys a sense that the leader cares about her people, their

thoughts, opinions and concerns.

A leader also builds stronger commitment within others when people feel that she cares about them personally as well as in how they fit within the organization.

What can leaders do to become better listeners and gain the feedback, confidence, support and buy-in that they seek?

See eye to eye. One crucial element of good listening is making strong eye contact. We discussed the importance of this when we detailed how to make a positive first impression. By fixing your eyes on the speaker you will avoid becoming distracted while also showing genuine attention. Eye contact is an important element of all

face-to-face communication, even if you know the speaker well.

Use receptive body language. Without saying a word, we communicate much about attitudes and feelings. We need to be aware of this in any conversation that we have. If seated, lean slightly forward to communicate attention.

Nod or use other gestures or words to signal attention and to encourage the speaker to continue. Visibly put away possible distractions such as your phone. This communicates that there is nothing more important to you right now than this conversation.

Always be careful to maintain an appropriate distance between you and the speaker. Being too close may communicate pushiness or lack of respect. If you remain distant, you may be seen as cold or disinterested.

Body postures matter too in most cultures. The crossing of one’s arms or legs often conveys close-mindedness.

Stop talking and start listening. This is the most basic listening principle and, oftentimes, the hardest to abide by. When somebody else is talking, it can be very tempting to jump in with a question or comment. This is particularly true when we seek to sound informed or insightful, or if we start to feel defensive due to the speaker’s criticisms. Be mindful that a pause, even a long one, does not necessarily mean that the speaker has finished. Let the speaker continue in their own time; sometimes it takes time to formulate what to say and how to say it. Never interrupt or finish a sentence for someone.

Patient listening demonstrates that you respect others, which is the first step in building trust and rapport.

Remember, if you desire to be listened to, then give others the courtesy of listening to them first.

I remember once listening to a talk

on communication. The speaker, who we’ll call Mr. S., was a well-known life coach and communication expert.

Mr. S. recalled his early days on the job as a program coordinator for a large educational organization that required that he meet often with principals.

Mr. S. met with two men in short succession. One gentleman was gracious and well-meaning. He allowed for a lengthy conversation but was continually interrupted by phone calls and other matters. Though they spent an hour together, the meeting felt short and unproductive. In the next school, he had to wait for a while and was given but a few minutes with the principal. The man apologized for his lateness and brevity, but made sure that during their time together Mr. S’s agenda was fully heard and responded to. It goes without saying that Mr. S. felt significantly more www.greenazine.com

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Leave the door open. Keep open the possibility of additional communication after this conversation has ended. You never know when new insights or concerns may emerge. validated by the second man, despite the wait and their short time together.

Take on their point of view. Approach each conversation from the vantage point of the speaker (his role, past perspectives, etc.) Be empathetic and seek to objectively consider their position. Don’t be dismissive, regardless of their rank. Be humble enough to listen carefully, even if you disagree with what is being said. Remember that those that confront and challenge you are ultimately the ones who help you stretch and develop most. True wisdom doesn’t see opposition, only opportunity.

Summarize and clarify. When the other person has finished talking take a moment to restate and clarify what you have heard. Use language like, “so, to summarize …”

End by asking whether you heard correctly, which will encourage immediate feedback. Not only will this ensure the clearest takeaway on your end, but it will help the speaker feel genuinely heard and valued. A strategically placed pause at some point in the feedback can be used to signal that you are carefully considering the message that was just shared.

Leave the door open. Keep open the possibility of additional communication after this conversation has ended. You never know when new insights or concerns may emerge.

Thank them for approaching you. Do not take any conversation for granted. For many employees, requesting

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a meeting requires that they must summon much courage and rehearse their message time and again. Moreover, you probably learned something useful and meaningful during your talk, information or ideas that may help you as the leader. Few things go as far in building good will as expressing appreciation.

Create a listening culture. While all of the above strategies

can help leaders make the most of listening opportunities, leaders also need to take steps to create a broader culture in which listening (and therefore communicating) is valued and desired. Cultures typically do not evolve. They are the product of conscious decisions and behaviors that, over time, become part of the fabric of communal and organizational life. Leaders who actively encourage others to speak, at meetings, by setting up one-to-one meetings,

etc. will not only be more likely to really know what people are thinking but will improve morale and increase worker motivation.

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Student Art Contest

FMCSA Gearing Up For S Reminding Motorists, Tru

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Student Art Contest uckers To Buckle Up The Federal Motor Carrier Safety Administration Saturday will start its 2015 “Be Ready. Be Buckled.” student art contest organized by the Commercial Motor Vehicle Safety Belt Partnership.

direct result, more lives are being saved,” said FMCSA Acting Administrator Scott Darling.

“We are focused on reminding every driver that there is never an excuse to skip the important step of buckling up.”

Open to students in kindergarten through sixth grade with relatives or sponsors in the commercial truck and bus industries, the contest educates children about highway safety and urges commercial drivers to buckle up on every trip.

FMCSA will accept contest submissions through February 28, 2015. Students can submit their artwork by mail to the following address:

“Buckling your safety belt should be an automatic practice for every driver and passenger since it’s the simplest and most effective way to save your life in the event of a crash,” said Transportation Secretary Anthony Foxx. “The purpose of this art contest is to engage children and their parents in discussing safety and to provide a calendar of kids’ artwork that serves as a year-round reminder to always buckle-up.”

c/o CVSA

In just the last three years, safety belt use has continued to rise among medium-to-heavy truck and bus drivers to an all-time high of 84 percent, according to a 2013 FMCSA study.

While good news, there is room for improvement.

The National Highway Traffic Safety Administration’s most recent data from 2012 showed that 697 occupants of large trucks were killed in crashes; approximately 40 percent were not wearing safety belts.

“The good news is that overall safety belt use for professional bus and truck drivers has steadily increased each year and as a

CMV Safety Belt Partnership

Attention: Nicole Leandro 6303 Ivy Lane, Suite 310 Greenbelt, MD 20770 Artwork will be evaluated in two categories: one for kindergarten through second grade, and another for third through sixth grade.

Twelve winners will be selected in April 2015, and their artwork will appear in the 2016 “Be Ready. Be Buckled.” contest calendar.

All 12 students will also be honored at a ceremony at DOT headquarters to be held in the spring.

To see last year’s winners and learn more about the “Be Ready. Be Buckled.” contest, visit: http://www.fmcsa.dot.gov/safetysecurity/safety-belt/index.htm.

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Ban Hands Free?

NTSB to FMCSA: Ban Hands-Free Phone Use Truck drivers should not use hands-free phones while driving, says the National Transportation Safety Board.

The board’s recommendation was one of several changes it wants the Federal Motor Carrier Safety Administration to make in the wake of a 2013 trucktrain crash that caused a derailment, hazmat fire and explosion.

The crash occurred May 28, 2013, in Rosedale, Maryland, when a truck driver failed to make sure there was no train on the tracks he was crossing.

The driver was severely injured and several of the 15 cars that were knocked off the tracks contained hazardous material that burst into flames and exploded, damaging property as far as a half-mile away.

The Board found in its investigation that the driver, who made that crossing regularly, was in the habit of relying on the sound of a train’s horn to determine if it was coming.

The train engineer blew his horn three times as he approached the crossing but the driver said he did not hear it. Vegetation and the curve of the road made it hard for the driver to see if a train was approaching, but the board found that if he had stopped at the tracks he 44 www.greenazine.com

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could have seen it coming.

One key contributing factor was that the driver was distracted by a call that came in on his hands-free phone just as he was approaching the tracks, the board said.

NTSB said the current FMCSA ban on drivers using hand-held phones does not go far enough.

“Current laws may mislead people 46 www.greenazine.com

to believe that hands-free is as safe as not using a phone at all,” said Acting Board Chairman Christopher Hart.

“Our investigations have found over and over that distraction in any form can be dangerous behind the wheel.”

Several other factors contributed to the crash, the board said.

The trucking company, a new entrant called Alban Waste, had

a long record of noncompliance with safety regulations – a record that should have triggered agency action.

Among other shortcomings, Alban did not maintain driver qualification files, did not have a complete drug and alcohol testing program and did not keep thorough track of driver hours.

The company and the agency

went through several cycles of enforcement and corrective action, but the board found that the agency did not do enough.

“We continue to be concerned with FMCSA’s new-entrant program,” said Hart. “Problem operators keep falling through the cracks.”

The board recommended that the agency conduct a full compliance review on new entrants that fail a safety audit or a corrective action plan, or are issued an expedited action letter.

Another problem was that the driver had severe, untreated sleep apnea that likely affected his alertness, the board said. The driver did not disclose this on his medical exam forms, and his physician reportedly certified him to drive even though

he knew about the sleep disorder.

The board recommended that the agency develop a way to tell medical examiners about violations FMCSA investigators have found that could result in medical disqualification.

The board also said that private rail crossings need more oversight.

“Efforts to improve safety at private grade crossings have been inadequate,” Hart said. “We need states, railroads, and land-owners to address problems before serious collisions occur.”

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“Our investigations have found over and over that distraction in any form can be dangerous behind the wheel.”

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Hiring Self Motivated People

Hire Self-Motivated Peop Smartest Thing a Hiring M 48 www.greenazine.com

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A self-motivated recruiting prospect, candidate, or employee is an individual with a track record of having the internal drive and motivation to begin and continue tasks without external prodding or extra rewards.

How recruiters can become a hero of your hiring managers by dramatically reducing the number of hours that they have to spend motivating and watching their employees If you are a corporate manager, you already know that you routinely spend a significant portion of your time trying to motivate your employees. On average, I estimate that encouraging, cajoling, and the worst part, having to hang around just to ensure that your employees are continuously working takes up to 50 percent of the average manager’s time each week. If you don’t believe my estimate, ask a few managers to keep a work log for a few weeks if you want an accurate time for your firm. You might go a step further and ask a few of your managers if they enjoy trying to motivate and if they are good at it, because you’re likely to find that they dread every minute of it.

Fortunately you can recapture every minute of that “motivation time” if you just do one simple thing: begin recruiting and hiring self-motivated employees.

These type of employees are not a myth. They are called self-motivated or intrinsically motivated people. Imagine what it would be like as a manager to have a team full of employees who not only automatically did the work that they were assigned but who would also proactively seek out new work that needed to be done.

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If you’re having doubts about the value of hiring self-motivated individuals, think back to a time in your career where you had an employee who was 100 percent self-motivated and driven. You shouldn’t have to stretch your memory to remember the pleasure of having them as part of your team because they produced so much with literally no effort on your part.

Now imagine what it would be like to have an entire team of those self-motivated individuals who would free up so much of your time that you would have 2 ½ days per week extra to work on more important management tasks such as planning, forecasting,

and innovating. In my experience, the best phrase to describe that situation would be “pure unadulterated joy.”

Most Managers Assume the Role as “Chief Employee Motivator” I teach in a business school where a majority of the management classes and textbooks cover how to motivate employees. As a result, I did not consider it unusual when one of my students asked Brian Gaspar, a visiting visionary manager from Oracle, “How do you motivate your employees?” Without a second of

hesitation he answered abruptly “Why would I do that?

I simply hire self-motivated people.” The universal reaction from all of the students was stunning. They had simply never considered a recruiting solution to this universally difficult problem (note: his answer to a similar question “How do you set goals for your employees?” was equally as stunning. He responded, “I don’t have time for that; I make them come up with their own goals and success measures and I only modify them when it is necessary”).

Since that time I have researched the concept and I

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found that there are in fact self-motivated people and that it is relatively easy to find, recruit, assess, and hire them. I’ve also learned that the alternative approach of identifying motivators, measuring motivation, and applying the motivation or engagement levers is not only very difficult but is also true that most managers simply aren’t very good at it. The inability to successfully motivate their employees is one of the reasons why managers are frequently listed as the No. 1 cause of employee turnover.

What Exactly Is a Self-motivated Individual?

A self-motivated recruiting prospect, candidate, or employee is an individual with a track record of having the internal drive and motivation to begin and continue tasks without external prodding or extra rewards. You don’t have to identify why they are so driven. Just be satisfied with the fact that it is something in their character, upbringing, training, or attitude that drives them to work without any external stimulus or threat.

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The Many Benefits That Come From Hiring Selfmotivated People Once you bring this recruiting approach to any hiring manager’s attention, they almost instantly appreciate its value. But if you are cynical, I have listed below some of the many benefits that come from hiring selfmotivated people. Those benefits include: The benefits are long-term – you could say that recruiting the self-motivated is “the gift that keeps on giving” because self-motivation is an internal character trait that is unlikely to change. That means that once they are on board as an employee, they will continue to work without needing to be prodded or watched over every year of their tenure. As a result, you need to multiply the added value of hiring a single self-motivated individual by the number of years that they are likely to stay.

There are no wasted hours – the primary measurable benefit of hiring self-motivated employees is that,

because they continuously work hard, there are simply no wasted hours where they are paid but they are not working at their maximum. This means that there are no “slack hours” or times where they are not working at full speed. The term for describing these unproductive hours is compensation waste.”

Self-motivated individuals are likely to be top performers – hiring self-motivated individuals would be problematic if they underperformed on the job. Fortunately, at least one academic study from the University of Jaffna revealed a direct positive connection between self-motivation and higher onthe-job performance. Because the self-motivated are willing to put in so many uninterrupted hours at 100 percent speed, this factor alone almost assures that they will be above-average performers.

As employees, they don’t cost any more – because they are internally or intrinsically motivated, you don’t have to pay them significantly more than other workers with the same experience and education level. If you offer them supplemental rewards for working hard, some may even take it as a personal affront that you think that they need external rewards just to do their job.

The self-motivated have a high ROI – the return on investment on these self-motivated individuals is extremely high because on the cost side of the equation, they don’t require extra rewards. But they do produce high returns. First because they produce more output (because they work at 100 percent speed without interruption) but also because they free up so much expensive management time that otherwise would be spent on motivating them. Taken together that make their net ROI extremely high.

They are also self-motivated to succeed – most of these individuals are not only self-motivated to continuously work but they are also driven to succeed.

This drive to succeed means that most of them are also problem solvers and self-directed continuous learners who know how to adapt after they have learned. That means that when you give them a complex task, you can assume that they will be fully committed to every aspect of the task and that they will complete it without any further major action on the manager’s part.

Others may copy them – because other workers around them will see their intensity and focus, they may cause other employees to voluntarily work just

as hard. If they are visible to your customers, their visible work ethic may also impress your customers.

That may result in more sales.

You can teach skills but you can’t teach selfmotivation – firms like Southwest Airlines and Zappos are noted for their recruiting approach, which is “hire for attitude and train for skills.” I am proposing an alternative approach which is “hire the self-motivated and train for skills.” This is the recommended approach because I haven’t found any research that has shown that you can successfully train your employees to become self-motivated.

You won’t have to worry about employee engagement – because self-motivated workers are intrinsically driven, managers and companies won’t need to take positive actions to reinforce their already strong loyalty and commitment.

Tips on How to Recruit Self-motivated Individuals Once you are committed to hiring self-motivated individuals, you need to work with your firm’s recruiting leaders to come up with the most effective recruiting and assessment approaches. In my experience, the best recruiting approaches for the self-motivated include: Identify them through employee referrals – generally, recruiting these individuals doesn’t take extra effort. This is because only smaller firms seem to focus on recruiting self-motivated people, and as a result, you won’t have to fight most corporations in order to attract and land them. The best recruiting approach for them (and almost all top performers) is an excellent employee referral program. My recommended approach is to proactively ask your own top performers and self-motivated employees to seek out and to refer “successful colleagues with a strong work ethic, that are self-motivated and driven.”

This targeted referral approach is usually all you will need in order to recruit a sufficient quantity of selfmotivated candidates.

Identify self-motivated individuals by using the right keywords – when you are perusing LinkedIn profiles or online resumes, you can usually find selfmotivated prospects by looking for the right keywords and phrases. Eventually, develop your own list of “identifiers” but start out by looking for terms like: self-motivated, driven, strong work ethic, self-starter, hard-working, work hard/play hard, they went the

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extra mile, initiative, hungry, fire in the belly, they required little supervision, energetic, inspired, focused, stimulated, conscientious, highly engaged, and committed. You should begin the process by looking at the resumes and profiles of your own self-motivated employees to see which key indicators they have.

Place “self-motivated” in the position description – if you put being able to demonstrate that you are self-motivated as one of the job requirements, a smart candidate will make sure that evidence of that trait appears in their resume or cover letter. If you want to be proactive, specifically request applicants to directly provide supplemental evidence of self-motivation as a required part of their application package.

Ask them during the interview – during the interview process provide the candidates with a list of the required qualifications and ask them to force rank the top ones that most accurately describe their strengths. If selfmotivated is not in the top five, be wary. You should also obviously ask them behavioral interview questions related to work situations where they performed continuously without external rewards, support, or supervision.

Because self-motivation is not limited to the workplace, you should also explore areas outside of work to look for indications that they were totally committed to other difficult things like learning a language or running a marathon. And finally, be careful that you do not assume that someone who is energetic and excited during an interview will also act the same way on the job. Interviews are artificial situations where most people act completely differently for a short period of time.

Assess them on social media – as mentioned previously, self-motivated individuals are also generally that way outside of their job.

As a result you should search their social media pages and profiles for indications that they are self-motivated. Obviously you can also ask your own social media contacts who know them to rank their self-motivation level on a scale of 1 to 10.

Ask their references — rather than directly

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asking references “Is the person selfmotivated?” instead read them a set of characteristics (i.e. honest, self-motivated, highly skilled, strong communication skills, a leader, etc.) and ask them to identify the top three that best describe your candidate. You want to hire someone if self-motivated ranks as No. 1 or No. 2.

Revisit former employees – because being self-motivated doesn’t fade away, you should also consider former employees who you know were self-motivated. Simply contact the best that left within the last three years and ask them if they are willing to return.

Final Thoughts If you work at a startup, hiring self-motivated individuals becomes essential to your success because most of the leaders involved in a startup do not have the skill to motivate, and even if they did, they simply don’t have the time. However, if you are a corporate manager, you will probably find that very few if any position descriptions at your firm even mention the need to be self-motivated.

Because recruiting self-motivators is rare in the corporate world, you will invariably have to work with recruiting in order to develop your own process and tools.

Finally, if you are one of the many recruiting leaders and recruiters who are constantly complaining that they get little support and respect from hiring managers, developing a hiring program for the self-motivated might get you on their good side. Consider the high regard that those hiring managers will have for you if you save them two-plus days each week by simply adding a “hiring selfmotivators” component to your standard hiring process. There is little doubt in my mind that this alone will make you a hero!

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