By Ericka Chickowski on 2010-09-27
Researchers from the McCombs School of Business at the University of Texas and Sybase explored the relationship between data management and business results. Improvements in variables including quality, usability, intelligence, remote accessibility and sales mobility were linked to improvements in metrics used to assess financial performance at Fortune 1000 companies. "Despite decades of IT investment in information technology, the direct correlation between those investments and the financial performance of the business has eluded senior decision-makers," Anitesh Barua, distinguished teaching professor and lead researcher at University of Texas at Austin, said in a statement. "This is the first study that quantifies the relationship between incremental improvements in data and key performance metrics of businesses today. Previous studies tell us neither the magnitude of the effect on performance nor what it takes to improve the attributes of data. We are encouraged by our findings and expect the business community to take notice."
1. Employee Productivity
Typically defined and measured by sales per employee, employee productivity grows 14.4% given a 10% increase in data usability.
The median sales per employee at organizations studied was $388,000; improving data management could increase by $55,900 per year.
2. Return on Equity
This key number increases by 16% when goosed by 10% jumps in data quality and sales mobility.
A company with the study's median income of $410.47 million would make an additional $65.67 million per year through better data management.
3. Return on Invested Capital (ROIC)
Efficiency in allocating capital edges up 1.4% with a 10% increase in sales mobility.
A company with $2.144 billion in capital would increase net income by $5.4 million every year through data management improvements.
4. Return on Assets
Efficient use of resources to generate income increases by 0.7 percent with a 10% improvement in intelligence and remote accessibility.
Better data management would net the average Fortune 1000 company an extra $2.87 million in income.
Thursday, September 30, 2010
Generation Gap Yawns in Recessionary Workplace
By Brian P. Watson on 2010-08-24
Baby Boomers have responded differently from other generational cohorts to the recession-era work environment. While doing more with less has become a management mantra during the Great Recession, not all age-groups have reacted to this new imperative in the same way. Generation X and Generation Y are more prone to working to improve their own reputations with their employers by working harder and working longer, while Boomers – many of them wanting to begin winding down their careers — seem more stubborn in the face of change. A new study from IT staffing firm Robert Half Technology uncovers what each of these generations are doing at work in response to the Great Recession. The majority are taking action — trying to build more skills and their tenure within their company — while many others are holding firm, and a brazen few are actually working less. The study, titled “Workplace Redefined: Shifting Generational Attitudes During Economic Change,” records responses from more than 1,450 North American workers, including 502 hiring managers.
Your Response to the Great Recession?
Enhance My Skill Set
Generation Y: 35%
Generation X: 38%
Baby Boomers: 28%
Build Tenure With My Company
Generation Y: 29%
Generation X: 33%
Baby Boomers: 31%
Look For New Job Opportunities
Generation Y: 36%
Generation X: 30%
Baby Boomers: 24%
Strive For a Promotion
Generation Y: 31%
Generation X: 24%
Baby Boomers: 17%
Work More Hours
Generation Y: 25%
Generation X: 25%
Baby Boomers: 16%
Go Back to School
Generation Y: 20%
Generation X: 19%
Baby Boomers: 10%
Make a Career Change
Generation Y: 20%
Generation X: 15%
Baby Boomers: 12%
Work Fewer Hours
Generation Y: 4%
Generation X: 4%
Baby Boomers: 6%
Will Not Make Any Changes
Generation Y: 16%
Generation X: 21%
Baby Boomers: 29%
Baby Boomers have responded differently from other generational cohorts to the recession-era work environment. While doing more with less has become a management mantra during the Great Recession, not all age-groups have reacted to this new imperative in the same way. Generation X and Generation Y are more prone to working to improve their own reputations with their employers by working harder and working longer, while Boomers – many of them wanting to begin winding down their careers — seem more stubborn in the face of change. A new study from IT staffing firm Robert Half Technology uncovers what each of these generations are doing at work in response to the Great Recession. The majority are taking action — trying to build more skills and their tenure within their company — while many others are holding firm, and a brazen few are actually working less. The study, titled “Workplace Redefined: Shifting Generational Attitudes During Economic Change,” records responses from more than 1,450 North American workers, including 502 hiring managers.
Your Response to the Great Recession?
Enhance My Skill Set
Generation Y: 35%
Generation X: 38%
Baby Boomers: 28%
Build Tenure With My Company
Generation Y: 29%
Generation X: 33%
Baby Boomers: 31%
Look For New Job Opportunities
Generation Y: 36%
Generation X: 30%
Baby Boomers: 24%
Strive For a Promotion
Generation Y: 31%
Generation X: 24%
Baby Boomers: 17%
Work More Hours
Generation Y: 25%
Generation X: 25%
Baby Boomers: 16%
Go Back to School
Generation Y: 20%
Generation X: 19%
Baby Boomers: 10%
Make a Career Change
Generation Y: 20%
Generation X: 15%
Baby Boomers: 12%
Work Fewer Hours
Generation Y: 4%
Generation X: 4%
Baby Boomers: 6%
Will Not Make Any Changes
Generation Y: 16%
Generation X: 21%
Baby Boomers: 29%
Wednesday, September 29, 2010
Spammers Target LinkedIn Members with Malware
By: Fahmida Y. Rashid
2010-09-27
Cisco Systems says spammers targeted LinkedIn members with fake connection requests that downloaded a worm known for stealing user bank account information.
Malicious cyber-criminals aren't just targeting Twitter users; LinkedIn members are in their crosshairs, as well.
LinkedIn members were reportedly deluged with spam e-mail messages masquerading as connection requests from the career-oriented social networking site Sept. 27.
Clicking on these requests sent users to a Website that displayed "PLEASE WAITING...4 SECONDS" before redirecting them to Google. During those 4 seconds, the Website downloaded Zeus data-theft malware onto their PCs, according to Cisco Systems.
Zeus, which embeds itself in the victim's Web browser and captures personal information such as online banking credentials, is widely used by criminals to pilfer from commercial bank accounts.
These messages accounted for as much as 24 percent of all spam sent within a 15-minute interval in the morning of Sept. 27, Cisco said. Cisco recommends that IT administrators warn users to delete connection requests, especially if they do not know the name of the contact.
Social networks are increasingly becoming a target for cyber-criminals. Twitter was hit over the weekend by a worm associated with a "WTF" tweet and a link, as well as the cross-scripting exploit that crippled Twitter.com the week of Sept. 20. Facebook users have not been immune, either.
Spam remains a popular form of attack, as with the "Here You Have" e-mail worm that wreaked havoc earlier in September. Cisco expects to see more spam messages containing malware sent to organizations to collect personal information.
LinkedIn has not yet publicly acknowledged the spam attack, nor warned users about the messages.
http://www.eweek.com/c/a/Security/Spammers-Target-LinkedIn-Members-with-Malware-869319/?kc=EWKNLEDP09292010D
2010-09-27
Cisco Systems says spammers targeted LinkedIn members with fake connection requests that downloaded a worm known for stealing user bank account information.
Malicious cyber-criminals aren't just targeting Twitter users; LinkedIn members are in their crosshairs, as well.
LinkedIn members were reportedly deluged with spam e-mail messages masquerading as connection requests from the career-oriented social networking site Sept. 27.
Clicking on these requests sent users to a Website that displayed "PLEASE WAITING...4 SECONDS" before redirecting them to Google. During those 4 seconds, the Website downloaded Zeus data-theft malware onto their PCs, according to Cisco Systems.
Zeus, which embeds itself in the victim's Web browser and captures personal information such as online banking credentials, is widely used by criminals to pilfer from commercial bank accounts.
These messages accounted for as much as 24 percent of all spam sent within a 15-minute interval in the morning of Sept. 27, Cisco said. Cisco recommends that IT administrators warn users to delete connection requests, especially if they do not know the name of the contact.
Social networks are increasingly becoming a target for cyber-criminals. Twitter was hit over the weekend by a worm associated with a "WTF" tweet and a link, as well as the cross-scripting exploit that crippled Twitter.com the week of Sept. 20. Facebook users have not been immune, either.
Spam remains a popular form of attack, as with the "Here You Have" e-mail worm that wreaked havoc earlier in September. Cisco expects to see more spam messages containing malware sent to organizations to collect personal information.
LinkedIn has not yet publicly acknowledged the spam attack, nor warned users about the messages.
http://www.eweek.com/c/a/Security/Spammers-Target-LinkedIn-Members-with-Malware-869319/?kc=EWKNLEDP09292010D
Worst. Bosses. Ever.
By Dennis McCafferty on 2010-09-28
J. Edgar Hoover
FBI's first director fired people freely, losing key personnel. Pursued personal agendas, inspired 10-year limit on director's reign.
Marge Schott
The Cincinnati Reds owner was so notoriously cheap that she didn't want to hire scouts; her overt racism earned a ban from Major League Baseball.
Henry Clay Frick
Industrialist behind U.S. Steel oversaw brutal strike response that killed nine workers; famously dubbed "America's most hated man."
Stonewall Jackson
Legendary general, but notorious for keeping battle plans from key subordinates, who hated being out of the loop.
Ken Lay
Lack of oversight led to Enron's dramatic demise; sold much of his company stock while urging employees to buy it up.
Roger Smith
Beyond "Roger and Me" notoriety, his decisions helped GM lose big chunks of market share; $7 billion GM10 program saw $2,000 loss on every car produced.
Warren Harding
His administration was among the most corrupt and scandal-charged in U.S. history; routinely ranked at or near the bottom of US Presidents.
John Patterson
NCR founder toyed with subordinates, careers, egos; health obsessed, had employees weighed and measured and fired some for poor horsemanship.
http://www.baselinemag.com/c/a/Intelligence/Worst-Bosses-Ever-570670/?kc=BLBLBEMNL09292010STR1
J. Edgar Hoover
FBI's first director fired people freely, losing key personnel. Pursued personal agendas, inspired 10-year limit on director's reign.
Marge Schott
The Cincinnati Reds owner was so notoriously cheap that she didn't want to hire scouts; her overt racism earned a ban from Major League Baseball.
Henry Clay Frick
Industrialist behind U.S. Steel oversaw brutal strike response that killed nine workers; famously dubbed "America's most hated man."
Stonewall Jackson
Legendary general, but notorious for keeping battle plans from key subordinates, who hated being out of the loop.
Ken Lay
Lack of oversight led to Enron's dramatic demise; sold much of his company stock while urging employees to buy it up.
Roger Smith
Beyond "Roger and Me" notoriety, his decisions helped GM lose big chunks of market share; $7 billion GM10 program saw $2,000 loss on every car produced.
Warren Harding
His administration was among the most corrupt and scandal-charged in U.S. history; routinely ranked at or near the bottom of US Presidents.
John Patterson
NCR founder toyed with subordinates, careers, egos; health obsessed, had employees weighed and measured and fired some for poor horsemanship.
http://www.baselinemag.com/c/a/Intelligence/Worst-Bosses-Ever-570670/?kc=BLBLBEMNL09292010STR1
Tuesday, September 28, 2010
Obamafunding Will You Get Your Share?
Written by Dave Lavinsky
On Monday, President Obama signed the Small Business Jobs Bill. The bill provides $42 billion in loan incentives and tax cuts for entrepreneurs and small businesses.
Specifically, the Bill does a few important things:
1. The Bill increases the government guarantee on the SBA’s 7(a) loans to 90% through December 31.
Some explanation for some of you who are new to raising funding:
The SBA is the United States Small Business Administration. The SBA doesn’t lend money to entrepreneurs. Rather, local banks give out the loans, but the SBA guarantees a certain percentage of the loan amounts (so if the entrepreneur defaults on the loan, the SBA pays the bank 80% to 85% of the loan amount). With the new program, the guarantee is being raised to 90% which makes lending less risky to the banks.
The SBA’s 7(a) Loan Program is its primary program “to help start-up and existing small businesses obtain financing when they might not be eligible for business loans through normal lending channels.”
2. The Bill includes a new $30 billion lending fund that community banks can use to make loans to entrepreneurs and small businesses.
3. The Bill includes $12 billion in tax breaks for small businesses.
Overall, this is great news to entrepreneurs and small businesses who gain 1) more access to funding, 2) better funding terms, and 3) tax breaks.
This is also positive news for the US economy, as entrepreneurs and small business owners have historically created the majority of jobs and job growth in our country.
(Note: Want to tap into this new funding from the Small Business Jobs Bill? Growthink’s Step by Step Guide to Raising Capital From Banks and SBA Lenders will teach you how to quickly and easily get the right SBA and/or bank loan to fund your business.)
On Monday, President Obama signed the Small Business Jobs Bill. The bill provides $42 billion in loan incentives and tax cuts for entrepreneurs and small businesses.
Specifically, the Bill does a few important things:
1. The Bill increases the government guarantee on the SBA’s 7(a) loans to 90% through December 31.
Some explanation for some of you who are new to raising funding:
The SBA is the United States Small Business Administration. The SBA doesn’t lend money to entrepreneurs. Rather, local banks give out the loans, but the SBA guarantees a certain percentage of the loan amounts (so if the entrepreneur defaults on the loan, the SBA pays the bank 80% to 85% of the loan amount). With the new program, the guarantee is being raised to 90% which makes lending less risky to the banks.
The SBA’s 7(a) Loan Program is its primary program “to help start-up and existing small businesses obtain financing when they might not be eligible for business loans through normal lending channels.”
2. The Bill includes a new $30 billion lending fund that community banks can use to make loans to entrepreneurs and small businesses.
3. The Bill includes $12 billion in tax breaks for small businesses.
Overall, this is great news to entrepreneurs and small businesses who gain 1) more access to funding, 2) better funding terms, and 3) tax breaks.
This is also positive news for the US economy, as entrepreneurs and small business owners have historically created the majority of jobs and job growth in our country.
(Note: Want to tap into this new funding from the Small Business Jobs Bill? Growthink’s Step by Step Guide to Raising Capital From Banks and SBA Lenders will teach you how to quickly and easily get the right SBA and/or bank loan to fund your business.)
How to Conduct Effective Sales Team Meetings
by Alan Rigg
If you have a sales team or are considering building one, at some point you will need to figure out how (and whether) you want to conduct group sales team meetings.
This article answers some frequently asked questions about sales team meetings.
How often should sales team meetings be held?
I'm not a big fan of regularly scheduled sales team meetings. I find it boring to go person-by-person and discuss the status of specific opportunities, the percentage each individual is to quota, etc.
It's one thing if a salesperson is doing something unusual or unique in pursuit of an opportunity and sharing what they are doing would constitute a good learning experience for other salespeople. However, I usually find that most discussions concerning individual opportunities are not very enriching for the other sales team members.
My philosophy is I prefer to bring the sales team together on an ad hoc basis when there is something to discuss that would be of benefit to the entire team. This could be for sales training, product training, important announcements, etc.
With that said, if a sales team is more junior, or if you are in the process of changing your sales culture, or if you want to teach all of your salespeople a specific new skill, then regularly scheduled training meetings can make sense. However, if a sales team is more seasoned, or if it has a mix of people with substantially different levels of knowledge and experience, working with salespeople one-on-one tends to be more productive than group meetings.
How often should I meet individually with salespeople?
If a salesperson is achieving or exceeding quota, I like to schedule a weekly, one-hour meeting. The focus of this meeting is to:
Discuss the progress (or lack thereof) of pipeline opportunities
Discuss new opportunities that have been identified
Strategize how to best pursue key opportunities
Often the greatest value a sales manager can add when dealing with a productive salesperson is suggesting creative ideas for advancing opportunities through the sales cycle more quickly.
For salespeople who are NOT achieving quota (including new salespeople), I suggest that management schedule one-hour meetings as frequently as necessary (including daily) to help the salesperson get on track. Going on "buddy calls" also provides great opportunities to observe the salesperson in action. In these cases the focus should be on determining:
The quantity and quality of the salesperson's activities
Whether their activities are producing the desired results
Sources of and solutions for any roadblocks they are running into
When performance issues are identified, conducting repetitive role plays is often the most productive way for management to help the salesperson become more comfortable executing specific skills and approaches properly. As the salesperson becomes more comfortable with, and more effective at executing, key steps in the sales process, meeting frequency can be reduced until you get to a single, scheduled, one-hour meeting each week.
Should members of the marketing team attend sales team meetings?
Absolutely... especially if you are tryng to instill a "one team" mindset.
When hosting a joint meeting that includes both Sales and Marketing representatives, try to focus the meeting agenda on information that will help the members of the two organizations understand each other better and work together more effectively to produce the desired end result (which is usually increased sales, higher profits, etc.). For example:
If marketing is conducting a campaign to generate sales leads, there should be discussion about what constitutes a qualified lead
If marketing would like the sales team to report information to help marketing gauge the effectiveness of a campaign, there should be discussion about:
The information that is being requested
Whether the sales team is the best resource to provide the requested information
Why marketing needs the information
The accountability sales management will ask the salespeople to accept related to providing the requested information
The frequency with which the information needs to be provided
How sales management will inspect to ensure that the necessary information is being provided in a consistent and timely fashion
There could be many other agenda items, but they will generally fit under one of two umbrellas: (1) helping Sales and Marketing understand each other better, and (2) helping Sales and Marketing work together more effectively.
Conclusion
You have probably attended many meetings that did not feel like productive uses of your time. Don't repeat this mistake with your sales team! Be very clear about your desired outcome(s) for each specific meeting. If you keep the desired outcome(s) firmly in mind, it should be relatively easy to determine who should attend each meeting and whether it should be a group or individual meeting.
©2010 Alan Rigg
http://www.8020salesleader.com/public/273.cfm
If you have a sales team or are considering building one, at some point you will need to figure out how (and whether) you want to conduct group sales team meetings.
This article answers some frequently asked questions about sales team meetings.
How often should sales team meetings be held?
I'm not a big fan of regularly scheduled sales team meetings. I find it boring to go person-by-person and discuss the status of specific opportunities, the percentage each individual is to quota, etc.
It's one thing if a salesperson is doing something unusual or unique in pursuit of an opportunity and sharing what they are doing would constitute a good learning experience for other salespeople. However, I usually find that most discussions concerning individual opportunities are not very enriching for the other sales team members.
My philosophy is I prefer to bring the sales team together on an ad hoc basis when there is something to discuss that would be of benefit to the entire team. This could be for sales training, product training, important announcements, etc.
With that said, if a sales team is more junior, or if you are in the process of changing your sales culture, or if you want to teach all of your salespeople a specific new skill, then regularly scheduled training meetings can make sense. However, if a sales team is more seasoned, or if it has a mix of people with substantially different levels of knowledge and experience, working with salespeople one-on-one tends to be more productive than group meetings.
How often should I meet individually with salespeople?
If a salesperson is achieving or exceeding quota, I like to schedule a weekly, one-hour meeting. The focus of this meeting is to:
Discuss the progress (or lack thereof) of pipeline opportunities
Discuss new opportunities that have been identified
Strategize how to best pursue key opportunities
Often the greatest value a sales manager can add when dealing with a productive salesperson is suggesting creative ideas for advancing opportunities through the sales cycle more quickly.
For salespeople who are NOT achieving quota (including new salespeople), I suggest that management schedule one-hour meetings as frequently as necessary (including daily) to help the salesperson get on track. Going on "buddy calls" also provides great opportunities to observe the salesperson in action. In these cases the focus should be on determining:
The quantity and quality of the salesperson's activities
Whether their activities are producing the desired results
Sources of and solutions for any roadblocks they are running into
When performance issues are identified, conducting repetitive role plays is often the most productive way for management to help the salesperson become more comfortable executing specific skills and approaches properly. As the salesperson becomes more comfortable with, and more effective at executing, key steps in the sales process, meeting frequency can be reduced until you get to a single, scheduled, one-hour meeting each week.
Should members of the marketing team attend sales team meetings?
Absolutely... especially if you are tryng to instill a "one team" mindset.
When hosting a joint meeting that includes both Sales and Marketing representatives, try to focus the meeting agenda on information that will help the members of the two organizations understand each other better and work together more effectively to produce the desired end result (which is usually increased sales, higher profits, etc.). For example:
If marketing is conducting a campaign to generate sales leads, there should be discussion about what constitutes a qualified lead
If marketing would like the sales team to report information to help marketing gauge the effectiveness of a campaign, there should be discussion about:
The information that is being requested
Whether the sales team is the best resource to provide the requested information
Why marketing needs the information
The accountability sales management will ask the salespeople to accept related to providing the requested information
The frequency with which the information needs to be provided
How sales management will inspect to ensure that the necessary information is being provided in a consistent and timely fashion
There could be many other agenda items, but they will generally fit under one of two umbrellas: (1) helping Sales and Marketing understand each other better, and (2) helping Sales and Marketing work together more effectively.
Conclusion
You have probably attended many meetings that did not feel like productive uses of your time. Don't repeat this mistake with your sales team! Be very clear about your desired outcome(s) for each specific meeting. If you keep the desired outcome(s) firmly in mind, it should be relatively easy to determine who should attend each meeting and whether it should be a group or individual meeting.
©2010 Alan Rigg
http://www.8020salesleader.com/public/273.cfm
The Shift Toward Customer-Focused Assortments
Assortment management is an ever-evolving field. Many in our industry are old enough to remember the development of the supermarket format, its mission being to provide all things to all customers. The last decade saw the coming of age of a more consumer-centric discipline that, with the help of new science, is now achieving widespread acceptance.
Certainly, every large retailer still wants to show its shoppers a selection that eliminates any reason to go to another store to meet all their needs. But they've learned -- and the Recession has been a tough instructor for some -- that maximizing variety can lead to diminished returns.
Three Trends Leading Assortment Planning into the Consumer-Centric Future
Assortment management has traditionally been focused at the product category level, the aim being to provide a depth of assortment across a wide variety of categories. But this view of categories is moving steadily in a consumer-centric direction. Three trends exemplify this change:
1. SOLUTIONS CENTERS
Categories used to be defined primarily by product attributes -- purpose, ingredients, temperature ... even package form. Now the mindset is evolving toward a focus on solutions and consumer need states.
Merchants and manufacturers continually ask the question:
What does the shopper really need and what different products can address that need?
Where the shopper need used to be "fresh chicken," today it may be "convenient meals." Where it used to be "liquid floor cleaners," now it may be "home cleanup solutions."
Retailers are increasingly looking at groups of categories in an effort to provide shoppers with solution centers.
2. NEW CATEGORIES
Retailers are revisiting the basic business question:
What other categories should I be offering?
Category space allocation has been relatively stable for quite a few years and, as a consequence, so has the number of categories offered.
In years past, merchandisers and grocers added whole departments, like florists, banks, video rentals and dry cleaners, to name a few. Now, more are asking what other items should be offered to better meet shopper needs. Are there new opportunities in nontraditional categories, like jewelry, green products, kids’ clothing, gift cards, hardware?
3. MACRO SPACE MANAGEMENT
A new emphasis on "big picture thinking" gets to the core of Space and Assortment and how they are intertwined. Retailers are reconsidering how much space to give to each category or solution area, and how to manage variety within that space.
In order to get at that question comprehensively, they need to understand the marginal benefits from each new category and each item within each category.
Instead of making assortment choices solely within categories, they take a comprehensive, cross-category view. The new question becomes:
How much profit do I get out of one more SKU in this category versus one more SKU in the next category?
Only by understanding the marginal contribution of each SKU can retailers reallocate space to be more efficient -- on a section, aisle or store basis.
Shelf space is a finite resource. When considering which SKUs to add or eliminate, retailers run directly into dimensional constraints. Different SKUs may occupy different amounts of space. Faster-turning items may require more facings to meet demand.
It is evident that retailers need a space-aware assortment process. This objective is greatly aided by tightly linking assortment planning tools and methods with space planning tools and methods.
Certainly, every large retailer still wants to show its shoppers a selection that eliminates any reason to go to another store to meet all their needs. But they've learned -- and the Recession has been a tough instructor for some -- that maximizing variety can lead to diminished returns.
Three Trends Leading Assortment Planning into the Consumer-Centric Future
Assortment management has traditionally been focused at the product category level, the aim being to provide a depth of assortment across a wide variety of categories. But this view of categories is moving steadily in a consumer-centric direction. Three trends exemplify this change:
1. SOLUTIONS CENTERS
Categories used to be defined primarily by product attributes -- purpose, ingredients, temperature ... even package form. Now the mindset is evolving toward a focus on solutions and consumer need states.
Merchants and manufacturers continually ask the question:
What does the shopper really need and what different products can address that need?
Where the shopper need used to be "fresh chicken," today it may be "convenient meals." Where it used to be "liquid floor cleaners," now it may be "home cleanup solutions."
Retailers are increasingly looking at groups of categories in an effort to provide shoppers with solution centers.
2. NEW CATEGORIES
Retailers are revisiting the basic business question:
What other categories should I be offering?
Category space allocation has been relatively stable for quite a few years and, as a consequence, so has the number of categories offered.
In years past, merchandisers and grocers added whole departments, like florists, banks, video rentals and dry cleaners, to name a few. Now, more are asking what other items should be offered to better meet shopper needs. Are there new opportunities in nontraditional categories, like jewelry, green products, kids’ clothing, gift cards, hardware?
3. MACRO SPACE MANAGEMENT
A new emphasis on "big picture thinking" gets to the core of Space and Assortment and how they are intertwined. Retailers are reconsidering how much space to give to each category or solution area, and how to manage variety within that space.
In order to get at that question comprehensively, they need to understand the marginal benefits from each new category and each item within each category.
Instead of making assortment choices solely within categories, they take a comprehensive, cross-category view. The new question becomes:
How much profit do I get out of one more SKU in this category versus one more SKU in the next category?
Only by understanding the marginal contribution of each SKU can retailers reallocate space to be more efficient -- on a section, aisle or store basis.
Shelf space is a finite resource. When considering which SKUs to add or eliminate, retailers run directly into dimensional constraints. Different SKUs may occupy different amounts of space. Faster-turning items may require more facings to meet demand.
It is evident that retailers need a space-aware assortment process. This objective is greatly aided by tightly linking assortment planning tools and methods with space planning tools and methods.
Creating a Unified View of the Customer
Whether in-store, online, via catalog or smart phone app, consumers draw on all touch points when formulating an overall image of a retailer. Can retailers say the same about their multi-channel customers?
To provide what customers demand -- a seamless experience across all channels -- retailers need a unified view of their customers. Retailers should, for example, be able to draw on behavior learned about a customer in one channel and apply it to a targeted offer relevant to the shopper in another. And so, a successful multi-channel strategy must not only provide a comprehensive view of the shopper's activities but enable the deployment of cross-channel tactics. In essence, what is needed is a unified customer engagement platform.
Many chain retailers have been building out their online (and now mobile) commerce efforts over the last decade. How are they doing so far with their cross-channel integration? According to the 2009 RIS Cross-Channel Tech Trends study, over half (55 percent) of retailer respondents say they have no integration of their CRM/customer database across brick and mortar and online channels. Another 36 percent say they maintain only a loose integration. And for loyalty applications, 36 percent have no integration, while 43 percent have loose integration across these channels.
ACTION ITEMS: Unified Customer Engagement
In the recent RIS White Paper, The Cross-Channel Imperative, the following action items are recommended for retailers looking to develop a unified customer engagement platform:
#1: Work toward a single customer view.
Bridge departmental silos to create a single database that captures customer preferences and transactions across channels. That's accomplished by ensuring customers can enroll in, and gain access to, the unified customer database from whichever channel they frequent. Tagging all transactions with a unique customer ID marker is an important component of the process.
#2: Concentrate on actionable analysis.
Retailers can leverage business intelligence and customer analytics to: determine which items customers are most loyal to, channel by channel; improve personalization of offers; and engage in relevant and timely conversations with customers across channels. Further, a unified customer engagement platform can feed the analytical results into other enterprise systems, including merchandising, inventory and promotion, thereby creating greater value for the customer.
#3: Unify infrastructure around customer engagement data.
The unified customer engagement platform can be used to map points of integration with customer touch points in the store, online, catalog, call center and the mobile channel. In this way, retailers can develop web services, composite applications or services-oriented architecture to seamlessly cross channel boundaries (e.g. a cross-channel search function).
#4: Provide a single view of the retailer to the customer.
Standardize the view that the customer gets of the retailer across all channels, thereby improving customer convenience and ease of use. The same must apply to the customer views of promotions and communications from the retailer in all channels, while also leveraging the uniqueness of each channel.
To provide what customers demand -- a seamless experience across all channels -- retailers need a unified view of their customers. Retailers should, for example, be able to draw on behavior learned about a customer in one channel and apply it to a targeted offer relevant to the shopper in another. And so, a successful multi-channel strategy must not only provide a comprehensive view of the shopper's activities but enable the deployment of cross-channel tactics. In essence, what is needed is a unified customer engagement platform.
Many chain retailers have been building out their online (and now mobile) commerce efforts over the last decade. How are they doing so far with their cross-channel integration? According to the 2009 RIS Cross-Channel Tech Trends study, over half (55 percent) of retailer respondents say they have no integration of their CRM/customer database across brick and mortar and online channels. Another 36 percent say they maintain only a loose integration. And for loyalty applications, 36 percent have no integration, while 43 percent have loose integration across these channels.
ACTION ITEMS: Unified Customer Engagement
In the recent RIS White Paper, The Cross-Channel Imperative, the following action items are recommended for retailers looking to develop a unified customer engagement platform:
#1: Work toward a single customer view.
Bridge departmental silos to create a single database that captures customer preferences and transactions across channels. That's accomplished by ensuring customers can enroll in, and gain access to, the unified customer database from whichever channel they frequent. Tagging all transactions with a unique customer ID marker is an important component of the process.
#2: Concentrate on actionable analysis.
Retailers can leverage business intelligence and customer analytics to: determine which items customers are most loyal to, channel by channel; improve personalization of offers; and engage in relevant and timely conversations with customers across channels. Further, a unified customer engagement platform can feed the analytical results into other enterprise systems, including merchandising, inventory and promotion, thereby creating greater value for the customer.
#3: Unify infrastructure around customer engagement data.
The unified customer engagement platform can be used to map points of integration with customer touch points in the store, online, catalog, call center and the mobile channel. In this way, retailers can develop web services, composite applications or services-oriented architecture to seamlessly cross channel boundaries (e.g. a cross-channel search function).
#4: Provide a single view of the retailer to the customer.
Standardize the view that the customer gets of the retailer across all channels, thereby improving customer convenience and ease of use. The same must apply to the customer views of promotions and communications from the retailer in all channels, while also leveraging the uniqueness of each channel.
Think Like a Rich Person
By Dennis McCafferty on 2010-09-22
Books about getting rich often seem to work better for authors than readers, so any tome on the subject should be approached with considerable caution. But a new book, How Rich People Think (London House/Available now), provides a fresh perspective on this well-worn topic. Author Steve Siebold isn't pretending to unearth the secrets of the next big investment boom, or hawking some new Ponzi scheme. How Rich People Think is more about understanding the philosophical grounding and practical mindsets of the wealthy, in order to get a sense of how their intellectual and emotional DNA is programmed for financial success. Unlike other classes of society, Siebold writes, rich people aren't afraid of money or ashamed of it. They don't believe that luck plays much of any role in success, and they don't expect to be rescued by a guardian angel if they get into a tough spot. Siebold is a consultant for Fortune 500 companies such as Johnson & Johnson, Procter & Gamble and Toyota. Here are his nine realities of achieving wealth:
1. Middle class people wait for their ship to come in; rich people buildtheir own ship.Fortune smiles upon those who create their own opportunities. Adapt an action mentality, not a lottery one.
2. Success comes from working for fulfillment, not survival.Those who excel do so because they love work, as opposed to just earning apaycheck. Donald Trump and other players have a passion for the deal.
3. Money isn't about education. It's about knowledge.Target training and advanced degrees for the end result of maximizing yourvalue in the market.
4. Hard work doesn't equate to money. Leverage does.Tap your greatest strengths and pinpoint how to make them more salable.
5. Referrals create millionaires.Use success with one relationship to create 10 others just like it.Encourage a referral system to deliver opportunity upon opportunity.
6. Money is a tool that must constantly be re-used. Money is infinite. Accomplishing a financial milestone should immediately befollowed by a re-investment plan to make more.
7. Logic, not emotion, guides wise investment decisions.Use panic-inspired market sell-offs to invest in companies and industrysegments that likely are down only for the moment.
8. Rich people are better at keeping their money than the working class.They study and seek advice on protecting earnings from taxes. They know, forexample, that a Roth IRA beats out a traditional one in the long run.
9. Appreciate the value of invisible wealth.Cars, clothes and status objects do not define wealth or success. Assets,strength of portfolio do.
The ultimate anti-rich thinker was George Bailey in It's a Wonderful Life, who wanted to be wealthy but set himself up to be poor.1. He let others dictate his path instead of taking control of his destiny.2. He had great vision, but never used it to make his own fortune.3. He wanted to build skyscrapers, but ended up plugging holes in financialdikes.
http://www.baselinemag.com/c/a/Intelligence/Think-Like-a-Rich-Person-825538/?kc=BLBLBEMNL09282010STR8
Books about getting rich often seem to work better for authors than readers, so any tome on the subject should be approached with considerable caution. But a new book, How Rich People Think (London House/Available now), provides a fresh perspective on this well-worn topic. Author Steve Siebold isn't pretending to unearth the secrets of the next big investment boom, or hawking some new Ponzi scheme. How Rich People Think is more about understanding the philosophical grounding and practical mindsets of the wealthy, in order to get a sense of how their intellectual and emotional DNA is programmed for financial success. Unlike other classes of society, Siebold writes, rich people aren't afraid of money or ashamed of it. They don't believe that luck plays much of any role in success, and they don't expect to be rescued by a guardian angel if they get into a tough spot. Siebold is a consultant for Fortune 500 companies such as Johnson & Johnson, Procter & Gamble and Toyota. Here are his nine realities of achieving wealth:
1. Middle class people wait for their ship to come in; rich people buildtheir own ship.Fortune smiles upon those who create their own opportunities. Adapt an action mentality, not a lottery one.
2. Success comes from working for fulfillment, not survival.Those who excel do so because they love work, as opposed to just earning apaycheck. Donald Trump and other players have a passion for the deal.
3. Money isn't about education. It's about knowledge.Target training and advanced degrees for the end result of maximizing yourvalue in the market.
4. Hard work doesn't equate to money. Leverage does.Tap your greatest strengths and pinpoint how to make them more salable.
5. Referrals create millionaires.Use success with one relationship to create 10 others just like it.Encourage a referral system to deliver opportunity upon opportunity.
6. Money is a tool that must constantly be re-used. Money is infinite. Accomplishing a financial milestone should immediately befollowed by a re-investment plan to make more.
7. Logic, not emotion, guides wise investment decisions.Use panic-inspired market sell-offs to invest in companies and industrysegments that likely are down only for the moment.
8. Rich people are better at keeping their money than the working class.They study and seek advice on protecting earnings from taxes. They know, forexample, that a Roth IRA beats out a traditional one in the long run.
9. Appreciate the value of invisible wealth.Cars, clothes and status objects do not define wealth or success. Assets,strength of portfolio do.
The ultimate anti-rich thinker was George Bailey in It's a Wonderful Life, who wanted to be wealthy but set himself up to be poor.1. He let others dictate his path instead of taking control of his destiny.2. He had great vision, but never used it to make his own fortune.3. He wanted to build skyscrapers, but ended up plugging holes in financialdikes.
http://www.baselinemag.com/c/a/Intelligence/Think-Like-a-Rich-Person-825538/?kc=BLBLBEMNL09282010STR8
11 Ways to Create an Effective Facebook Page for Business
Building relationships at the social networking site instead of just redirecting people to a Rosetta Stone page makes it easier to connect with customers and potential customers, because hardcore Facebook users are more likely to converse on a Facebook page than they are to follow a link to an external website. In the process, says Jay Topper, senior vice president of customer success at the language-instruction software company, Facebook has become a new channel for sales. Rosetta Stone is among the first enterprises to address the challenges of Facebook in a systematic way. Is your company ready to do the same?
1. HAVE A PURPOSE
Presence isn¹t enough. Align social media strategy to business goals andtrack them; use analytics to measure your progress.
2. BE TRANSPARENT
Any customer contact from any source can end up on your wall, and everythingyou post on Facebook is public and can be disseminated to live on elsewhere.
3. BEND TO THE MEDIUM
Respect the new culture. Don¹t annoy users by making your own rules, meetthem on their turf.
4. BE INVITING.
Good news and interesting topics are desirable, but keep bad news up front,too. Allow people to post on your wall‹many companies don¹t allow thissimple function.
5. CREATE A COMMUNITY, NOT A SALES PAGE.
Facebook is not about one-way marketing; sales-speak turns fans off. RosettaStone wants conversations about language learning, with support andcompany-specific tools built in.
6. BE A THOUGHT LEADER AND GUIDE THE CONVERSATION
Don't try to control everything. Post links to articles or thought-provokingconversation starters, and let the community have an open, organic dialogue.
7. LET PEOPE SPEAK THEIR MINDS
Rarely turn away a comment, including criticism of the product, unless itviolates pre-determined principles.
8. RESPOND QUICKLY
This demographic expects it, They also expect the responder to be savvy andfollow unwritten social media guidelines.
9. ASK FOR FEEDBACK
Then show Facebook fans how you use it.
10. PROMOTE YOUR PRESENCE
Let people know about your page across all your online assets.
11. KEEP IT FUN
Recognize the special culture of Facebook instead of just imposing your owncorporate culture upon it.
http://www.baselinemag.com/c/a/IT-Management/11-Ways-to-Create-an-Effective-Facebook-Page-for-Business-279753/?kc=BLBLBEMNL09282010STR5
1. HAVE A PURPOSE
Presence isn¹t enough. Align social media strategy to business goals andtrack them; use analytics to measure your progress.
2. BE TRANSPARENT
Any customer contact from any source can end up on your wall, and everythingyou post on Facebook is public and can be disseminated to live on elsewhere.
3. BEND TO THE MEDIUM
Respect the new culture. Don¹t annoy users by making your own rules, meetthem on their turf.
4. BE INVITING.
Good news and interesting topics are desirable, but keep bad news up front,too. Allow people to post on your wall‹many companies don¹t allow thissimple function.
5. CREATE A COMMUNITY, NOT A SALES PAGE.
Facebook is not about one-way marketing; sales-speak turns fans off. RosettaStone wants conversations about language learning, with support andcompany-specific tools built in.
6. BE A THOUGHT LEADER AND GUIDE THE CONVERSATION
Don't try to control everything. Post links to articles or thought-provokingconversation starters, and let the community have an open, organic dialogue.
7. LET PEOPE SPEAK THEIR MINDS
Rarely turn away a comment, including criticism of the product, unless itviolates pre-determined principles.
8. RESPOND QUICKLY
This demographic expects it, They also expect the responder to be savvy andfollow unwritten social media guidelines.
9. ASK FOR FEEDBACK
Then show Facebook fans how you use it.
10. PROMOTE YOUR PRESENCE
Let people know about your page across all your online assets.
11. KEEP IT FUN
Recognize the special culture of Facebook instead of just imposing your owncorporate culture upon it.
http://www.baselinemag.com/c/a/IT-Management/11-Ways-to-Create-an-Effective-Facebook-Page-for-Business-279753/?kc=BLBLBEMNL09282010STR5
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