Imprint Canada September/October 2017

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A Tristan Communications Ltd. Publication

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Digital printing expert Pablo Gomez examines the exponential growth of dye sublimation market.

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;GEEGF K=DDAF? :DGGH=JK Customer Service expert Jeff Mowatt highlights six common selling mistakes that you and your staff may unknowingly be guilty of.

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AF<MKLJQ F=OK Get caught up on the latest industry news.

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L@= HMJ;@9KAF? HGO=J G> DGO AF;GE= ;MKLGE=JK Membership Economy expert Robbie Kellman Baxter shares how Amazon created a successful subscription model specially tailored for cash-strapped consumers. 10

@GO LG <=L=JEAF= QGMJ EGKL HJG>AL9:D= ;DA=FLK Promotional Products industry expert Sheri Boyd explains how companies can best determine which clients are their most profitable.

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L@= =EHDGQ== =FLJ=HJ=F=MJ Client service specialist Gavin Rouble outlines how employers can best empower their entrepreneurial employees.

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AFKL9?J9E :MKAF=KK 9;;GMFLK Social Media expert Lowell Brown examines the pros and cons of switching to an Instagram business account.

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The time is now! We see it in our everyday lives but it often goes unnoticed: sportswear, fashion, promotional items, signage and interior dĂŠcor are all part of this growing industry.

Dye Sublimation has been around for years. More recently however, we have begun to see the potential growth for this industry exceed expectations.

According to the World Textile Information Network, an information provider delivering unmatched intelligence =PM UIZSM\ WXXWZ\]VQ\QM[ \PI\ LaM []JTQUI\QWV WNNMZ[

and insight into the global KWV\QV]M \W OZW_ textile manufacturing industry, dye sublimation is growing at a rate of approximately 20 -25 per cent each year!

This massive growth can be seen in the garment, signage, interior dĂŠcor and the promotional products sectors.

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Sports bloopers are often about preventable errors that end up favouring the other team. The classic is when players score against their own side.

In the world of business, there are similar blunders - particularly during buying conversations with potential and existing clients - that inadvertently end up favouring the competition.

As I explain in my sales seminars, itâ&#x20AC;&#x2122;s not always a shortfall in your companyâ&#x20AC;&#x2122;s products, services or pricing that ruins a potential sale. Often itâ&#x20AC;&#x2122;s inadvertent comments that turn clients off just enough for them to opt using your competitor.

Unfortunately, sales representatives are usually unaware they are committing such offences, and as a result they keep -WVo\ KWUXW]VL \PM[M [QUXTM [MTTQVO UQ[\ISM[ Ja

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In this article, I share with you my top six selling bloopers; read through them to see if you or any of your team members are guilty of committing any (and hopefully not all) of these gaffes. <MTTQVO +TWWXMZ[ KWV\QV]ML WV 9IOM !

F=O HJG<M;L KHGLDA?@LK See the latest wearable, advertising specialty, and decorating supplies & equipment offerings from industry suppliers. 20

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6/29/17 11:00 AM

Follow us on twitter: @imprint_canada

Q 867= take a back seat to whatever headline-seeking tweets happen to make the day.

. 3#(! ) /- In 1994, the North American Free Trade Agreement (NAFTA) came into effect, creating one of the worldâ&#x20AC;&#x2122;s largest free trade zones.

As we go to press on this issue, U.S. Trade Representative Robert Lighthizer opened the NAFTA renegotiations with aggressive criticism of the deal, stating that it has â&#x20AC;&#x153;fundamentally failed many, many Americans.â&#x20AC;?

For the foreseeable future, these talks will be front and centre among Canadian news agencies, while south of the border they will undoubtedly

Our Canadian approach to bargaining: talking softly but clearly, can be our greatest edge in these upcoming discussions.

As bizarre as it may sound, tweeting distractions may work in favour of our countryâ&#x20AC;&#x2122;s economy.

Economic lines drawn in the sand - as stated by Mr. Lighthizer - may remove the spotlight and lessen the pressure for the U.S. to achieve previously pronounced non-negotiable objectives.

Itâ&#x20AC;&#x2122;s like the boxer that claims prior to the fight that he will win at all costs and demolish his opponent. The opponent meanwhile, â&#x20AC;&#x153;keeps it realâ&#x20AC;?, says nothing, stays focused on the job and of course, wins.

Basically, the more turbulence created among Americans over their own bi-partisan and conflicting struggles, better are the chances that a unified, focused and humble Canadian negotiating team can stand its ground and resist the amplified, and somewhat bullying, opening statements of positioning.

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Industry News

September/October 2017 - Volume 24, Issue 5

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Opens new offices in Toronto & Montreal; new e-commerce site to be launched in Fall 2017 Rubenstein RB Digital Inc. is proud to announce that it has added Sean Oakley to its team as the new Vice President of Business Development.

Oakleyâ&#x20AC;&#x2122;s role is to bring a concentrated focus to eastern Canada, with the goal of strengthening relationships and delivering strategic support and service to Rubenstein RB Digital customers in Ontario, Quebec and the Maritimes. â&#x20AC;&#x153;I am very excited for this new opportunity,â&#x20AC;? says Oakley. â&#x20AC;&#x153;Rubentsein RB Digital is a very established and respected company. Their commitment to Canada, and to being a leader in this industry, is what attracted me to this role. Iâ&#x20AC;&#x2122;ve been tasked with creating a more aggressive customer service and sales strategy to ensure our customers are getting the very best service,â&#x20AC;? says Oakley, adding that his goal is to grow business and strengthen the companyâ&#x20AC;&#x2122;s presence in eastern Canada with a refocused customer vision,â&#x20AC;? he added.

Oakley brings with him over 11 years of industry experience and is a past recipient of the Robert L. Scott Award, which is presented annually to the individual at the supplier level who best displays unparalleled commitment, integrity and enthusiasm for the Canadian imprintable products industry, as voted by industry peers. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve known Sean for over 10 years as a leader in this industry. He brings a dynamic energy and great management style to the office,â&#x20AC;? says Kevin Price, Rubenstein

RB Digital President (and fellow Robert L. Scott Award winner). â&#x20AC;&#x153;The timing was right for our growth in the Ontario marketplace and for Sean to take on a new project phase in his career,â&#x20AC;? added Price.

New Offices And Online Presence The company recently opened two new offices in Toronto and Montreal. The Toronto office - located at 1645 Bonhill Road, Unit #7, in Mississauga Ontario - boasts a 900 square foot showroom featuring a complete line of equipment available. The office will be used also as a training centre for customers - with seminars, workshops and an open house being developed for the coming months.

The new office in Montreal is located at 381 rue McCaffrey, St-Laurent, QuĂŠbec, and features a new showroom and offices. â&#x20AC;&#x153;The office has a brighter look and new feel to it, complete with our full line of products which coincides with our new focus on customer and technical service,â&#x20AC;? says Oakley.

Rubenstein RB Digital Inc. also has placed a big focus on its online presence, with a new website launch slated for later this year. â&#x20AC;&#x153;The new website will be a leading edge, functional, user-friendly platform with e-commerce capabilities that will allow our customer base to buy all their consumables online,â&#x20AC;? adds Oakley.

For more information, please visit www.rbdigital.ca.

Sean Oakley can be reached at 1-800-263-1413, or by email at sean.oakley@rbdigital.ca.

GET READY! ITâ&#x20AC;&#x2122;S HOCKEY SEASON!

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PUBLISHER

Tony Muccilli : tony@imprintcanada.com

PRODUCTION MANAGEMENT

Adriano Aldini : news@imprintcanada.com

CONTRIBUTORS

Jeff Mowatt, Robbie Kellman Baxter, Pablo Gomez, Gavin Rouble, Sheri Boyd

MARKETING COORDINATOR

OFFICE ADMINISTRATOR Maria Natale : shows@imprintcanada.com

GENERAL INQUIRIES feedback@imprintcanada.com, (905)856-2600

ADVERTISING SALES

Tony Muccilli (Toronto) Tel: (905) 856-2600 Fax: (905) 856-2667

Steve Silva : feedback@imprintcanada.com Imprint Canada is published six times per year

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Canadian manufacturers and decorators should be In the US and Europe, Chromaluxe metals prints taking full advantage of this. Whether itâ&#x20AC;&#x2122;s a small start- are a huge business. Homes, art galleries, museums, up, home-based company or a larger manufacturer of hospitals, retail areas all use these panels to decorate goods, there is opportunity for everyone. â&#x20AC;&#x153;Buy localâ&#x20AC;? and display their message with a purpose. is one of Canadaâ&#x20AC;&#x2122;s staunch beliefs, so why not continue But it isnâ&#x20AC;&#x2122;t just for high end photography. Many to grow Dye Sublimation here locally? customers are going online and purchasing fully cusEquipment is now faster, more reliable and uses tomized metal panels with an image of their choice on less ink to achieve more vibrant colours. Sublimated products now are increasingly perceived as higher quality goods. Printers, like the Epson F-Series, are now developed for the sole purpose of sublimation.

This enables companies and individuals to produce at a higher and more consistent rate with less down time, which increases productivity and profit. With the proliferation of online shopping, ,PZWUIT]`M IT]UQV]U XIVMT[

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Decorators no longer require bricks and mortar retail the size of panel of their choice, once again giving the space, and rather can channel resources on the correct customer full control of their custom order. equipment coupled with a strategic online presence.

The high definition colour quality of Chromaluxe is Consumers look to products they can identify with, incomparable to any other substrate. If you tell people, or which they feel is unique and/or personal. Dye â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m going to get a metal print of our latest trip,â&#x20AC;? most Sublimation gives small and large companies alike the people will probably look at you with a blank expression, ability to produce such goods in a timely manner. as they canâ&#x20AC;&#x2122;t visualize or fathom what youâ&#x20AC;&#x2122;re referring No longer do clients have to wait months or have to about. That is, until the moment they see it. At that point order minimums in the thousands for their custom order. their reaction shifts to a â&#x20AC;&#x153;Wow!! Thatâ&#x20AC;&#x2122;s what you meant?â&#x20AC;?

Potential buyers can customize items, such as their teamâ&#x20AC;&#x2122;s Interior dĂŠcor doesnâ&#x20AC;&#x2122;t just stop in the decoration uniform, phone cases, or even drapery for their home. department, as it also plays a part in our everyday lives The potential of Dye Sublimation isnâ&#x20AC;&#x2122;t limited to just - in terms of drapery, upholstery, flooring, blankets, one industry either as it provides the ability to produce cushions, (you name it). such items across a wide spectrum of finished goods.

Dye Sublimation companies are printing patterns The largest market is the garment industry. Research for made-to-order items, virtually eliminating the suggests this sector accounts for approximately 75 need for them to stock and carry a warehouse full per cent of the market, according to Smithers Pira, of different coloured fabrics required. Only white is the worldwide authority on the Packaging, Print and needed to sublimate millions of colours, thus allowing Paper supply chains offering testing and information them to focus on advertising their capabilities while services to a wide range of industries. boosting their margins.

The garment industry coined the phrase â&#x20AC;&#x153;Fast Soft signage - or fabrics - contained in a floor or fashionâ&#x20AC;?, which eludes to the notion that new styles wall mount frame can easily and cost effectively be go from the runway to retail floor or online in 30 days replaced and updated regularly by a retail clerk. Any or less. From sportswear to haute couture, from swim- company using a wide-format dye-sub printer and a wear to everyday fashions, all have a place in the Dye calender press can easily produce soft signage.

Sublimation sector. Companies can now more easily For the most part, each sign is different and can keep up and manage their flow of seasonal wear while be made-on-demand, depending on what decorators eliminating the need to invest thousands of dollars in are offering or advertising at that current time. Trade inventory replenishment. show booths, retail and commercial advertisement, With proper equipment, turn-around times drop flags and banners all fall into this category. There is significantly allowing companies to take full advantage opportunity for growth in all these areas, especially of shifting capital allocation, allowing them to concen- here in Canada! trate on specific items and offer full customization. This Dye Sublimation provides you the ability to offer enables buyers to keep purchasing more frequently. anything and everything that is polyester or polyWe all know we canâ&#x20AC;&#x2122;t appear in summer pictures coated. Walk around department stores, or go online wearing the same shirt or go on vacation and wear the and research decorated mugs, water bottles, coasters, same swimsuit; sports teams come out with a different key chains, et cetera; you may not realize that all these uniform every season. All these factors keep custom- promotional items are indeed sublimated. You can ers coming back and expecting something great and produce these locally and with better quality, and place even customizable, season after season. an emphasis on the opportunity for growth.

Another growing area, is interior dĂŠcor, which is still We will continue to see untapped potential for a relatively untapped market here in Canada. Only in such growth in this market as the ability to use dyerecent years have we noticed an uptick in Dye Sublimationâ&#x20AC;&#x2122;s sub to produce goods locally and to buy finished focus for this industry. Chromaluxe panels are the stan- products locally continues to proliferate a variety of dard for high-end photography reproduction onto metal. market sectors.

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Think about why this may be a bad idea. The customer consciously decided to do business with your competitor; by you slamming the competition, itâ&#x20AC;&#x2122;s tantamount to telling them that he or she made a terrible business choice. (See point #1 - insulting the customerâ&#x20AC;&#x2122;s intelligence).Â

Letâ&#x20AC;&#x2122;s assume that if a customer is in a position of authority within their company (meaning they are trusted to make significant buying decisions) they must be somewhat respected and smart. This means that any kind of pushy or manipulative sales approach may backfire.

You need to enter a buying conversation presupposing that this customer is an intelligent, well intentioned savvy buyer. As such, your comments should be framed with a healthy dose of, â&#x20AC;&#x153;You probably already know...â&#x20AC;?, â&#x20AC;&#x153;At your level, youâ&#x20AC;&#x2122;ve likely experienced...â&#x20AC;?, â&#x20AC;&#x153;For you this may be obvious; the challenge is your staff may not be aware...â&#x20AC;?

Acknowledging your clientâ&#x20AC;&#x2122;s intelligence, and speaking to their experience will make any sales conversation flow much easier.

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Contrary to popular opinion, the most important part of a sales pitch is not your value proposition.

The most important part of a pitch is demonstrating your understanding of that specific customerâ&#x20AC;&#x2122;s unique circumstances. This requires asking pointed questions that help customers see for themselves where there are opportunities for improvement.

Then, by verifying your understanding of their feedback with statements like, â&#x20AC;&#x153;From what I am hearing, it sounds like you...(summarizing their situation),â&#x20AC;? shows that you were listening and engaged in helping find a solution to their needs.

:5 !(),#(! ) $ .#)(- E % If you propose a solution that ignores a customerâ&#x20AC;&#x2122;s objection or concern, you are essentially saying that you werenâ&#x20AC;&#x2122;t listening (see point #2).

This requires being transparent in how your proposal either addresses their concerns, or it provides extra value that could outweigh any reservations.

The key here is we shouldnâ&#x20AC;&#x2122;t pretend we didnâ&#x20AC;&#x2122;t hear or value their initial objections because it may present problems on our end. Rather, try to focus on the solutions your advice can deliver which may offset their objections.

95 (-/&.#(! ." )'* .#.#)( If your potential customer is currently doing business with your competitor, itâ&#x20AC;&#x2122;s fine to compare your offerings, but be very careful not to criticize the competition.

seems to know a lot about.

Showing respect by deferring to your customersâ&#x20AC;&#x2122; knowledge and expertise helps them become more receptive to yours.

<5 !(),#(! ." #( &/ ( ,- Itâ&#x20AC;&#x2122;s easy to focus on the key decision maker during your sales calls. Presumably he or she is the economic decision maker who will approve or reject the purchase.

And yet by trying to appease the decision maker (i.e. focusing on that bag of money) we are inadvertently insulting the people who may have more say in the matter than anyone.

While the father of the bride may be paying the bill, imagine the consequences of a wedding planner ignoring the wishes of the bride and her mother! (We all know the groom typically has little influence - he just needs to do what heâ&#x20AC;&#x2122;s told and show up on time).

The lesson is no one should feel like theyâ&#x20AC;&#x2122;re being ignored. Â Â

" )..)' &#( #-5555 Effective selling has to do with awareness, good manners and respect. Talking less and listening more are invaluable tips that will help you - not only in selling but in everyday life as well.

Allow your competitors to blunder their way out their customersâ&#x20AC;&#x2122; good graces and send them into your capable hands.

Good luck and hereâ&#x20AC;&#x2122;s to you and your sales team not dropping the ball!

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We all know it takes time and effort to build and gain trust, yet itâ&#x20AC;&#x2122;s so easy to lose.

Losing trust occurs when we stray out of our own area of expertise and our comments paint us as claiming to be an expert in other topics - be it politics, sports, raising kids, the weather, you name it.

Ironically, one of the easiest ways to gain trust is to quickly admit ignorance about anything the customer

Jeff Mowatt is a customer service strategist, Hall of Fame speaker. Heâ&#x20AC;&#x2122;s the author of the best-selling business books: Becoming a Service Icon in 90 Minutes a Month and Influence with Ease.

Jeff heads his own training company and has written and produced 13 self-study coaching tools. His Influence with EaseÂŽ column has been syndicated & featured in over 200 business and on-line publications.

For more tips, training tools or to inquire about engaging Jeff for your team visit www.JeffMowatt.com.

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Subscription-based service providers have made a powerful impact on todayâ&#x20AC;&#x2122;s business landscape, and savvy organizations are finding ways to take part in the bustling â&#x20AC;&#x153;Membership Economyâ&#x20AC;?.

But for all their success, many subscription model organizations have overlooked a crucially important group: low-income consumers. No matter how successful your organization may be, not marketing to low-income customers could cost you plenty.

Many membership-based models today have ignored this group because their services are offered as discretionary luxuries. Companies like CrossFit, Stitch Fix, and Peloton donâ&#x20AC;&#x2122;t typically expect cost-conscious consumers to engage with their brands, therefore they may not focus so heavily on selling to them. Further, many subscriptions pitch convenience over cost savings. During a time when so few companies are getting it right, Amazon is a shining example of a company that found a way to successfully market to this group.

While earlier this year, Amazon attracted much media attention with their US$13.7 billion acquisition of high-end food retailer Whole Foods, the retailing behemoth has also been quietly setting itself apart by finding a way to include low-income shoppers too. Amazon is now offering monthly subscriptions to Amazon Prime priced at US$10.99 a month in addition to their standard yearly subscriptions priced at $99 a year.

According to an R.W. Baird study, households with earnings below $50,000 a year became Amazon Primeâ&#x20AC;&#x2122;s fastest growing segment following this strategic price shift.

Further, Amazon took its marketing to the next level by pricing Prime subscriptions at a nearly 50 per cent discount for people on government assistance. After an impressive history of disrupting many industries with its business model (booksellers, retailers, retail technology, music, video, and storage), Amazonâ&#x20AC;&#x2122;s latest initiatives to attract lowincome markets continue to impact discount chains like Walmart and Dollar Tree.

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Although Amazonâ&#x20AC;&#x2122;s prices arenâ&#x20AC;&#x2122;t as low as those of Wish - the up-and-coming e-commerce shopping app thatâ&#x20AC;&#x2122;s already raised $1 billion in venture capital - Amazon promises two-day delivery on most items to Prime members, while Wish sources most of its products from China, resulting in far longer turnover times.

Amazon and other like-minded brands clearly care about the needs of low-income consumers, but their strategic effort to attract the price-conscious shopper demographic is also a brilliant business strategy.

They clearly saw an untapped market and took action to entice them with a membership subscription that was too good to pass up.

Below are five key factors why low-income shoppers are set to become Amazon Primeâ&#x20AC;&#x2122;s next hot market. Keep this information in mind as you consider how your own organization could service lowincome earners:

1. People with low incomes are still consumers.

Lower earners have to shop just like everyone else, especially for must-have items.

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Letâ&#x20AC;&#x2122;s face it: not all customers are equal. Some are large, some are small; some are fun, some are umâ&#x20AC;Ś. not. Customers run the gamut - from needy to self-sufficient. Some know what they want, while others havenâ&#x20AC;&#x2122;t the slightest clue.

Our job is to identify which ones are the most profitable and make sure they stay with us. In theory this sounds fairly straight forward, as we all have our favouritesâ&#x20AC;Ś you know the ones: they bring us large volume orders, provide us with status and recognition, or they are a great source of lead generation.

understand cash flow logistics.

Now, who doesnâ&#x20AC;&#x2122;t appreciate that!

These same customers typically do not require a great deal of hand holding or coddling from your sales team either. They are well informed and have a clear vision that they wish to execute.

In order to get exactly what they want, how they want it, they are accepting of standard terms and contracts. This translates into fewer interruptions in order flow once the order has been submitted.

So, where on earth do you find these magical, mythical customers?

The answer is fairly simple. They already exist " . , ." " &&' ,%- ) *,)Ă&#x203A; . & within your current client base. In some cases you /-.)' ,D may need to develop and strengthen the characIn some cases, the customers who spend teristics we aforementioned. the most with us are not necessarily the most profitable. We need to carefully examine how sales relate to the overall performance of our business.

In fact, customers who act as brand ambassadors can actually be the more valuable and profitable (even if they arenâ&#x20AC;&#x2122;t the biggest spenders). They are happy with the quality of goods and services *KK]ZI\MTa QVLMV\QNaQVO

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provided to them and are always quick to refer your So, letâ&#x20AC;&#x2122;s begin the hunt! business to their network.

Start by searching the top 20 per cent of your So, what do these elusive customers look like? customer list. A standard Pareto Analysis will tell What is their DNA? First and foremost they purchase high margin, you that 20 per cent of your customers are drivhigh quality products. These customers intrin- ing 80 percent of your business. These customers sically understand the value of a dollar. â&#x20AC;&#x153;You get represent the bread and butter of your sales, aka what you pay forâ&#x20AC;?, is pretty much their mantra. As the â&#x20AC;&#x153;Aâ&#x20AC;? list.

However, your search should not end there. a result they rarely haggle over price or ask for There is still 80 per cent of your customer base at discounts. your fingertips. In some cases these accounts are small because your clients are just that (small).

8c Xb X\_^acP]c c^ \T]cX^] cWPc However, do you possess small customers that XU h^d TeP[dPcT h^da Rdbc^\Tab are only small with you? Are you actively and ^] bP[Tb e^[d\T P[^]T h^d RP] effectively catering to their needs? It might be TPbX[h QT \Xb[TS Pb c^ fWXRW time to conduct a face-to-face review with clients at their places of business.

Rdbc^\Tab PaT V^^S U^a h^da Customers tend to be more open and transQdbX]Tbb parent on their own turf and will often provide unsolicited information regarding their needs, They are aware that you are making money and wants and desires if properly inspired and are not providing these items out of the kindness gleaned.

Why focus on the small customers when you of your heart. They are more agreeable to upsell and cross-sell offerings. This type of customer is want BIG profits? Keep in mind that several small acutely aware that they are not purchasing a shirt, clients can drive business and generate continuor a mug, or a USB; but rather they are actually ous revenue versus larger clients that can be difpurchasing curated branded solutions with last- ficult to support and more competitive to win.

We also need to pay attention to where our cusing impact.

Due to the genetic makeup of these customers, tomers are in their business cycle. Are they emerthey tend to exhibit specific habits - such as pay- ging, growing, or are they a mature business? The ing on time with minimal follow up, or are willing needs at each level are vastly different and require to pay up front for large volume orders as they different approaches.

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News ^%XVLQHVV 'HYHORSPHQW` FWh U^Rdb ^] cWT b\P[[ Rdbc^\Tab fWT] h^d fP]c 186 _a^UXcb. :TT_ X] \X]S cWPc bTeTaP[ b\P[[ R[XT]cb RP] SaXeT QdbX]Tbb P]S VT]TaPcT R^]cX]d^db aTeT]dT eTabdb [PaVTa R[XT]cb cWPc RP] QT SXUUXRd[c c^ bd__^ac P]S \^aT R^\_TcXcXeT c^ fX] Emerging businesses are about building brand recognition and broadcasting their message, whereas mature customers typically are not so bold in their messaging. In either case, this affects their advertising spends and consequently our approach towards them.

What are the significant factors for determining customer profitability?

Conventional wisdom would say, â&#x20AC;&#x153;No, they have nothing we want!â&#x20AC;?

However, before we toss them to the curb, we should consider what markets they are catering to and where those markets are in the business cycle. If they are working in emerging markets, it may benefit us to continue supporting them should they achieve rapid adoption of their goods or services.

Practice applying these metrics to all of your customers. Are you losing money on any? Likely, there will be a few which negatively impact profit margins. If so, consider the following options: letting them go; raising prices; or changing your service level to get them to a profit position.

Focus on the most profitable. Itâ&#x20AC;&#x2122;s not rocket science, but rather a very important practice. Look closely to determine what makes a customer profitable for YOUR business and apply what you learn to your â&#x20AC;&#x153;averageâ&#x20AC;? customers.

Always remember that the most profitable customers are the lifeblood of your business.

75 ). & -* ( )0 , -* #Ă&#x203A; * ,#) ) .#' 5 This is the standard we use to measure our customers as well as our own businessâ&#x20AC;&#x2122; performance. Although important, it is critical to remember that this metric often does not reveal the entire picture.

Looking only at total spend can lead to erroneous conclusions; if you evaluate your customers on sales volume alone, you can easily be misled as to which customers are your most profitable and which are truely good for your business.

*JW]\ \PM *]\PWZ#

Sheri Boyd has been involved in the promotional products industry for 25 years. Her experience encompasses supplier and distributor perspectives. As founder of epicpromo and Promocatalyst, Sheri brings a fresh approach that will affect positive change across the promotional products landscape. Companies Sheri has contributed to include: Festival Promotions, Maple Ridge Farms, Glass America, and Maui Jim Sunglasses.

85 )-. ) !)) - ), - ,0# - *,)0# 5 Topline sales do not take into account the cost of actually delivering those goods. We all measure profitability of a sale, as well as overall profitability of our company, which is typically stated by margin. We take this a step further and apply this same metric to our customers.

95 )-. ) #.#)( & p- ,0# -5o Processing of spec samples and arranging for special shipping or packaging all have costs directly associated with them. These costs, in turn, should be factored into gross margin calculations and profitablity analysis, as they have a direct correlation to time and bottom lines.

:5 )-. ) #(. (!# & -5 Often overlooked is the impact that customer interactions with staff have on health and culture of an organization.

We recently experienced having a customer that was so disorganized, demanding and borderline abusive to our staff that our company was no longer an enjoyable place to be as direct result of dealing with said client.

As a result, our company made the collective decision to resign the customer rather than face a mutiny.

;5 /-.)' , &)3 &.3 E , . (.#)(5 How long has your customer been with you? This measurement is typically calculated in years and will influence your decisions with regards to certain projects.

We recently provided complimentary basketball jerseys for one of our top customers recognizing their loyalty and years of business with us.

Itâ&#x20AC;&#x2122;s important to regularly audit what you are doing to foster your customerâ&#x20AC;&#x2122;s loyalty.

<5 /-.)' , 0) 35 Your greatest sales force is a happy customer. A fully satisfied customer will tell two-to-three people about great service and provide referrals.

However, itâ&#x20AC;&#x2122;s important to note that customer advocacy is a doubleedged sword; that same customer will probably tell five-to-seven people in their network about bad service.

While the measurement for the Customer Advocacy metric is referrals, there should be no need to beg for a referral if you have consistently delivered exemplary service. Often times, any customer that youâ&#x20AC;&#x2122;ve provided quality service to will be happy to refer you to contacts in their network, if you simply ask them to.

In Conclusion....

We have spent a great deal of time talking and focusing specifically on profitable customers. Does that mean that less profitable customers have absolutely nothing to offer us?

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This is the nature of the employer-employee When most businesses start up, they are forced to behave entrepreneurial or risk perishing. Those relationship but could also describe the relationthat prove successful are the ones that embrace their ship between any customer and purveyor of prodability to respond to changes in technology, custom- ucts and/or services. This means that an employer er needs and preferences, and market conditions changing how they view their employees isnâ&#x20AC;&#x2122;t as big with innovation, speed, and flexibilityâ&#x20AC;Śsomething a leap as they may first think. that their larger and more established competitors REALITY #2: Entrepreneurs Require are no longer able to.

However, over time, as businesses grow and Guidance, Not Constraints mature they begin behaving similarly to these larger, When businesses begin adopting a more entremore established competitors at the cost of the very preneurial culture, it is common for them to discoventrepreneurial practices that got them to this point. er that their existing culture has actually unintenThis raises the questionally constrained the tion: can established, performance of their mature businesses also employees. be entrepreneurial?

To explain this, conThe simple answer is sider this anecdote YES, mature businesses involving a child and a can behave entrepreroast: One day a child neurial, but only if their sees his mother preparculture, policies, and ing a roast to go into practices support the the oven for dinner. His concept of the â&#x20AC;&#x153;employmother carefully cuts ee entrepreneurâ&#x20AC;? and both ends of the roast reflect the realities of off and places it in the what being â&#x20AC;&#x153;entrepan. preneurialâ&#x20AC;? actually The child, curious, .`Q[\QVO KWUXIVa K]T\]ZM[ WN\MV ZMNTMK\ PW_ \PQVO[ PI^M IT_Ia[

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So, if your business she did this. His mothwants - or is trying er thinks about it and to become more entrepreneurial, it is important to says, â&#x20AC;&#x153;because that is the way you are supposed to do keep in mind these five realities. it...it is the way I was taught by your grandmother... so if you want to know why, go ask her.

REALITY #1: All Employees Are Entrepreneurs So the child goes into the next room and asks the The first reality businesses must realize is that same question to his grandmother. She considers their employees are already entrepreneurs. Think the question and provides a similar answer as his of employer-employee relationship: A person has a mother gave...that cutting off the ends is the correct need to earn income. Yet, when first starting their way, and the way it has always been done. Pressing career, they donâ&#x20AC;&#x2122;t yet have the means to accomplish his grandmother further, she grows flustered and this. So they search around for a customer who is tells the child to go ask his great-grandmother. willing to pay them for their skills, knowledge, and So, he finds his great-grandmother and asks her service. why the ends are cut off the roast. The great-grandThese customers are what we call â&#x20AC;&#x153;employersâ&#x20AC;?. mother thoughtfully answers the boy, â&#x20AC;&#x153;Because People find potential customers (a.k.a. employ- when I was growing up, we were very poor and only ers) who are seeking a service provider (in the form had one pan. When we cooked a roast it was often of a new employee) to meet their existing needs. It too big for that pan and so we had to cut the ends is then up to the individual to pitch or sell what they off for it to fit.â&#x20AC;? are offering so that the customer believes that their Existing company cultures often reflect how needs will best be met by the combination of skills, things have always been done, which can limit the knowledge, and services presented. creativity and inventiveness of employees if new When the customer decides to buy what the per- ways are dismissed simply for being new. son is selling, they enter into a contract whereby the To become more entrepreneurial, employers must customer pays for the services of the individual. let go of the old ways that constrain employees and, At any time during this relationship, should the instead, rely on defined corporate values, a clear customer or the individual find their needs are not vision for the future, and clearly articulated goals to being met, they can both choose to exit the relation- guide innovation and creativity down the right path ship. without restricting it. ,WV\QV]ML WV VM`\ XIOM

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News ^%XVLQHVV 'HYHORSPHQW` REALITY #3: Managers Can Be An Obstacle To Employee Entrepreneurs

plished without the latter. Therefore, when adopting an entrepreneurial culture, (and treating employees as entrepreneurs), there can be no inherent fear of errors and mistakes. Employees must be free to try and fail if they are to ultimately try and succeed.

This can be one of the biggest challenges for managers and business owners when transitioning to this new culture. Many in management continue to expect perfect results from an imperfect process. Only when management fully accepts, and even celebrates, the presence of mistakes will employee entrepreneurs trust they are safe to take the risks necessary to innovate.

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Entrepreneurial employees regularly embrace the unusual, unconventional, and (sometimes) even the unlikely. This means that to succeed, they must essentially throw out the â&#x20AC;&#x153;rule bookâ&#x20AC;? and venture into uncharted territory.

This can be very scary to a lot of managers who have Just as not all relationships between people are meant a tendency to prefer more conservative and structured to last forever, neither are a companyâ&#x20AC;&#x2122;s relationships business principles and practices. Sadly, these manwith its ideas, beliefs, and work. agers can undermine budding entrepreneurial tendenOft en this means that a company must be willing to cies by trying to evaluate this unconventional employee walk away from previously established perspecperformance with long-standing traditional tives, existing practices, and sometimes even approaches. projects they have already invested significant Traditionally, employees are evaluated based money in. on their outcomes (such as sales closed or proEntrepreneurial companies, and their jects completed) rather than their output, which employees, must always be willing to change is more a measure of their effort. Under this direction and take a new approach. traditional approach, if an employee wants to receive a positive performance evaluation from In Conclusion... their manager, they are unlikely to try someMore and more businesses are recognizing thing innovative or creative in order to simply that their ability to be entrepreneurial is going get the job done and move on to their next task. to determine whether they thrive or die. For a This thinking runs counter to an entrepreneurtraditional business to become entrepreneurial, ial culture, which is based on a foundation of they must be willing to change their culture and trial and error where a single successful outthe treatment of their employees. come may only result after many unsuccessful Doing so is not easy, and can be extremely attempts. uncomfortable, but any business can accomplish When creating an entrepreneurial culture, .V\ZMXZMVM]ZQIT KWUXIVQM[ IVL \PMQZ MUXTWaMM[ U][\ IT_Ia[ JM _QTTQVO \W KPIVOM

this if they can accept fi ve key realities.

Treating new approaches to evaluating employee perLQZMK\QWV IVL \ISM I VM_ IXXZWIKP individual employees as entrepreneurs; removformance must take into account employee ing constraints to creativity; updating internal creativity, effort, and behaviour, in addition to practices; celebrating mistakes; and always being ready REALITY #5: Customer Preferences And the traditional measure of outcomes. to walk away and change direction are the critical pilMarkets Are Not Stable lars that can support any businessâ&#x20AC;&#x2122; transition to a more REALITY #4: Entrepreneurial Activity Requires If customer needs and preferences never changed entrepreneurial culture. there would be no opportunity to gain an advantage by Mistakes Thomas Edison reportedly failed 10,000 times when behaving in an entrepreneurial way.

Most businesses, however, readily acknowledge that attempting to create a working light bulb. This means he *JW]\ \PM *]\PWZ#

made 10,000 mistakes. Now, consider where we would their markets are unstable and are constantly changing Gavin Rouble is the co-founder of The 2% Factor, which works with companies around be if he was condemned for these mistakes and had not and evolving. Entrepreneurial companies are perfectly the world to neutralize the disruptive and dysfunctional behaviour of the 2% of their suited for these environments, but only if their culture persisted. employees so that it doesnâ&#x20AC;&#x2122;t adversely affect the other 98%.

When creating or doing something new, making mis- reflects a high degree of flexibility and willingness to For more information, please visit www.the2percentfactor.com takes is a fact of life. Never has the former been accom- change direction.

Your em mbroid dery expe er ts

Vancouver 1-888-739-1864

Edmonton 1-866-890-9488

Saskatchewan (306) 289-2107

Winnipeg 1-800-665-8958

Toronto 1-800-263-1413

rbdigital.ca

MontrĂŠal 1-800-361-0100

Atlantic 1-877-747-2929

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There are over 300 million Instagram users that are active every single month. Instagram has become a place where businesses can streamline their brand, network with potential customers, build customer loyalty, and so much more.

While on Instagram, people share photos and videos that tell more about their business and brand.

Instagram has taken the business world by storm and perfectly complements any marketing plan.

Recently, Instagram began allowing users to switch their account from a regular Instagram account to a business account. There are positives and negatives to making this change, however, we first want to show you how to make the switch!

appears on your profile. When a user clicks on it, they will have the option to email you, call you, or find your location on a map.

Secondly, you now have an overall view of your posts by going to your profile and selecting the Insights icon, which is located at the top right of the screen.

Thirdly, creating ads is easier than ever with a business account. You can access them through Facebook advertising.

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ing company. Going Social specializes in effective social media marketing for individuals, businesses, and organizations. Lowell also actively leads workshops, seminars and webinars on the latest social media marketing trends and strategies. For more informationcontact Lowell at www.goingsocial.ca.

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Firstly, you will be labelled as a business account. Thatâ&#x20AC;&#x2122;s not always a bad thing, however )1 .) 1#. " .) /-#( -- Ă )/(. )( it may make people see you as a business, rather (-. !, ' than on social media to build relationships.

1. Simply go to your profile, Secondly, if you make the switch, you become and under account settings, Instagramâ&#x20AC;&#x2122;s primary target market, and you need you will see an option called to pay. This may cause you to say goodbye to your â&#x20AC;&#x153;Switch to Business Profileâ&#x20AC;?. organic reach. They no longer want you to receive Click that! free business, they now want to you to pay for it through advertisements.

2. Next, you will be asked Thirdly, you may lose visibility. For example, to log into Facebook have you ever noticed that on your personal prowithin the app.

You file on Facebook receives more reach than your will then connect your business one? The same is true for Instagram. account to the Facebook There are both pros and cons to converting account. your Instagram account to a business account.

Important Note: you must have a Although it can be extremely beneficial, there still Facebook Business Page to create a are some cons you may want to consider.

Business account on Instagram.

For more information or if you have any questions about marketing your business on You must already be an Instagram, you can contact us for help. administrator of the page you want to connect. Facebook will ask you a few questions, such as which information you want to take from the Facebook page. *JW]\ \PM *]\PWZ# Lowell Brown is the CEO and Social Media Marketing Advisor of Going Social You are finished! It was that easy! You now have (www.goingsocial.ca) and CEO of Insight Design & Communications Inc. a Business Instagram account. (www.insightdesign.ca), a Toronto-based website design and digital market-

Firstly, you will now have a contact button that

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2. Amazon Primeâ&#x20AC;&#x2122;s market for higher-end consumers is getting saturated.

Most high-income earners are already Amazon Prime members, as such Amazon needed to find channels into other markets.

3. Low-income consumers are currently under served.

Much in the same way they are â&#x20AC;&#x153;under-bankedâ&#x20AC;?meaning they donâ&#x20AC;&#x2122;t always qualify for credit from commercial lenders, low earners need organizations to step up and tailor services specifically for them.

4. Prime solves the transportation issue for careless shoppers.

Because traveling with store-bought purchases is difficult using public transportation, cabs, and car services, Amazon Primeâ&#x20AC;&#x2122;s free delivery appeals to those without cars.

5. Low-income consumers make subsidized purchases.

Low-income markets using government subsidies are attractive to retailers. Amazon recently tapped into this market by accepting food stamps.

Savvy companies with an eye on differentiating

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their client base can gain entry to the low-income market by following Amazonâ&#x20AC;&#x2122;s lead.

To break into this market, Amazon lowered the barrier to entry for Prime customers both in total cost (for some) and by not requiring a big upfront annual payment.

Amazon is also pushing manufacturers to lower their costs while increasingly pursuing lower-priced substitutions in addition to offering well-known brands.

Although Walmart is fighting back with its own two-day shipping â&#x20AC;&#x201C; coupled with an internal goal of offering the lowest available price on 80 per cent of all SKUs - they havenâ&#x20AC;&#x2122;t been nearly as proactive and membership-minded toward lower-income earners as Amazon.

The â&#x20AC;&#x153;Membership Economyâ&#x20AC;? is all about forging a long-term, formal relationship with members (and

attracting as many of those members as possible).

In the past, underserved markets were totally ignored. However, the smartest companiesâ&#x20AC;&#x201D;with Amazon at the forefrontâ&#x20AC;&#x201D;are finally optimizing memberships specifically for the needs of all of their customers. Amazonâ&#x20AC;&#x2122;s recent success with low-income consumers shows that they are well on their way to building a â&#x20AC;&#x153;forever transactionâ&#x20AC;? with this highly valuable market niche.

When looking to the future of your business, you may want to research what segments of the market youâ&#x20AC;&#x2122;ve not yet focused on and examine if targeting these untapped niches â&#x20AC;&#x201C; like lower-income earners or small independent businesses â&#x20AC;&#x201C; could be a lucrative step in a new direction.

*JW]\ \PM *]\PWZ#

Robbie Kellman Baxter is the author of The Membership Economy: Find Your Superusers, Master the Forever Transaction, and Build Recurring Revenue. She is the founder of Peninsula Strategies LLC, a consulting firm based in Menlo Park, CA, that helps companies excel in the Membership Economy. Her clients have included large organizations like Netflix, SurveyMonkey, and Yahoo!, as well as smaller venturebacked start-ups. Over the course of her career, Robbie has worked in or consulted with clients in more than 20 industries.

Before starting Peninsula Strategies in 2001, Robbie served as a New York City Urban Fellow, a consultant at Booz Allen Hamilton, and a Silicon Valley product marketer. As a public speaker, Robbie has presented to thousands of people in corporations, associations, and universities.

Robbie has been quoted in or written articles for major media outlets, including CNN, Consumer Reports, NPR, and HBR.com. She has an AB from Harvard College and an MBA from the Stanford Graduate School of Business. For more information, visit www.peninsulastrategies.com.

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S A F E T Y T H AT F I T S . www.winnergarment.com Winner Garment is one of Canadaâ&#x20AC;&#x2122;s leading manufacturers of safety workwear. Open since 1975, we are 100% Canadian owned and operated with 51,000 square feet of state-of-the-art facilities in Edmonton, with in-house embroidery and silk screening available.

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Flame- and Arc-Resistant, and Hi-Visibility apparel is our specialty and we carry an extensive stock program p g for fast delivery.

Westex

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Nomex Fleece Nomex Jersey

:H PDQXIDFWXUH DQG VWRFN â&#x20AC;¢ Unlined Coveralls â&#x20AC;¢ Pants â&#x20AC;¢ Insulated Coveralls â&#x20AC;¢ Vests â&#x20AC;¢ Parkas â&#x20AC;¢ Nomex Golf Shirts â&#x20AC;¢ Insulated Bib Overalls â&#x20AC;¢ Nomex Fleece Hoodies, â&#x20AC;¢ Unlined Bib Overalls Full Zippers & Pullovers â&#x20AC;¢ Surveyorâ&#x20AC;&#x2122;s Vests â&#x20AC;¢ Smocks â&#x20AC;¢ Bomber Jackets â&#x20AC;¢ Flame Resistant Apparel â&#x20AC;¢ Flight Suits for Welders â&#x20AC;¢ Shirts â&#x20AC;¦and much more!

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Polyester/Cotton

Nylon Fabrics

WINNER GARMENT INDUSTRIES LTD.

Toll Free Phone: 1-866-956-8989 â&#x20AC;¢ Toll Free Fax: 1-877-455-7788 Phone: 780-453-8989 â&#x20AC;¢ Fax: 780-455-7799 12003 Kingsway Ave. Edmonton, Alberta, Canada T5G 0X8 E-mail: info@ winnergarment.com

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