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“Ten things to do now”

“Ten things to do now”. Merit Direct CEO Forum Midwest October 20 th , 2010 Terry Jukes, President, B2B DMI LLC. Our world now. Slow/No growth – “the new abnormal” Increased price competition from “the desperate ones” Shrinking margins, little ability to raise price Stretched employees

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“Ten things to do now”

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  1. “Ten things to do now” Merit Direct CEO ForumMidwest October 20th, 2010 Terry Jukes, President, B2B DMI LLC T. Jukes www.b2bdmi.com

  2. Our world now • Slow/No growth – “the new abnormal” • Increased price competition from “the desperate ones” • Shrinking margins, little ability to raise price • Stretched employees • Demanding customers T. Jukes www.b2bdmi.com

  3. “When the going gets tough…” • Do more of what you know will produce • Re-focus on business basics - RFMCP • “Stick to the knitting” • “Do more with same/less” • Remain calm and persistent • Don’t buy the swamp water aka new technologies. • Avoid big risks T. Jukes www.b2bdmi.com

  4. 10 things to do now 1 Re-focus on product innovation • >50% of revenue from proprietary products • Contract manufacturing • Customization/Personalization • Re-assemble/re-package • Re-position products for applications • New products >20% of revenue • Balance consumables with capital purchases • “New”, “Exclusive”, “Guaranteed” • Beware Amazon/marketplace model T. Jukes www.b2bdmi.com

  5. 10 things to do now 2 Focus on service innovation • Repair? Warranty? Resale? • JIT supply programs • On-site inventory control/mgmt • Custom web sites for larger customers • Tech support, assign account rep • Training, product information/video • Specialized packaging Move from selling products to providing the lowest cost total solutionfor your customer. T. Jukes www.b2bdmi.com

  6. 10 things to do now 3 Sell more to the customers you have • Communicate more - RFMPC • Emails, custom web sites, telesales • Additional mail frequency • Understand and build relationship • Study order distribution by catalog, order channel, customer type, order size, product ordered, new vs. repeat customers, etc. • Be part of their supply/service chain • Assign sales reps • Consultative sell on inbound • Customer audits/surveys – Find new customer problems to solve. T. Jukes www.b2bdmi.com

  7. 10 things to do now 4 Turn inbound from “order taking” to “order making”. • Opportunity to increase 15-20% with little incremental expense • Track AOV, MOV, UPO, LPO, call time, close rate by rep. Conduct weekly coaching. Reward performance. • Product/application training and exams • Inbound = “R+D” T. Jukes www.b2bdmi.com

  8. 10 things to do now 5 Set productivity improvement expectations • 5% a year from vendors • New, exclusive products • Reduced total costs of supply • 5% a year from employees • Re-engineer processes • Reward employee initiatives and responsibility • “Be an owner” T. Jukes www.b2bdmi.com

  9. 10 things to do now 6 Integrate and improve your online/offline data/business intelligence. • Integrate web data into customer response analysis • All customer activity triggers a “one to one” marketing response. i.e. Order, ship and deliver confo emails; abandon shopping cart emails; lengthy product page views, etc. T. Jukes www.b2bdmi.com

  10. 10 things to do now 7 Give marginal performers a chance to be successful somewhere else • What is your opportunity cost of keeping a marginal inbound or outbound rep? • What is the cost of keeping any marginal employee? T. Jukes www.b2bdmi.com

  11. 10 things to do now 8 Systematize all proven processes. • Avoid “lapse” in corporate memory and “re-inventing the wheel” when turnover occurs. • Eliminates/reduces person days spend on reporting and analysis. • Ensures common, timely and communicated information. • Establishes common language and understanding/”know how” T. Jukes www.b2bdmi.com

  12. 10 things to do now 9 Hunt for bargains, be “shoportunistic”. • Opportunistic acquisition of failing competitor or customer list. • Excess inventory from manufacturer or competitor. • Special “risk free”, trial offer from a supplier T. Jukes www.b2bdmi.com

  13. 10 things to do now 10 Plan for 10% more and staff for 10% less. • Remain “lean and mean” and flexible • Be able to withstand business shocks and other diversions. • Winter storms, terrorist attack, vendor bankruptcy, stock market crash, etc. • Utilize outsourcing to remain flexible and increase payroll productivity. • Consider offshore solutions • Mexico, Bulgaria, Philippines. T. Jukes www.b2bdmi.com

  14. “Ten things to do now”Questions? Merit Direct CEO ForumMidwest October 20th, 2010 Terry Jukes, President, B2B DMI LLC T. Jukes www.b2bdmi.com

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