Archive for September, 2008

Hushpuppies and customer segmentation

Published by Adam Foldenauer on September 27, 2008 in Uncategorized. 1 Comment

I hurried into one of my favorite lunchtime establishments, Bill’s Barbecue. Stepping to the counter, I ordered the same combo I always do, a minced platter with hushpuppies. As I prepared to slide aside and wait the usual 3 to 5 minutes for my order to be prepared, the cashier presented my sandwich and looked at me, dumbfounded: “Here it is. They don’t usually come that quickly.”

The cook peeked from behind the counter, waved at me and winked. Apparently, on this my 107th visit, he had recognized me and prepared my “usual” while I stood in line.

I was already a loyal customer, but that experience strengthened my affinity. After all, it’s not every day you receive personalized service from a fast-food joint.

In your role as a businessperson, do you know your customer needs as well as the cook knew mine? Consider this question regardless of where your role falls within your company’s value chain, because in today’s struggling economy where consumers are spending less, now is an important time for all of us to pursue new customer insights.

So, who are your “regulars”? Finding the customers who consume your product or service at high levels – like me at Bill’s BBQ – is a volume-based segmentation. Knowing this customer segment well is critical. What can you do to strengthen their commitment to your product and brand, and what can you do to persuade them to expand their relationship with you?

To make your most important customers feel important, you first have to know their unique behaviors, motivations and needs. Then, position a product offering to meet their need, or customize their experience at the most important touchpoints.

A one-size-fits-all customer experience loses, especially when marketplace conditions are difficult. Firms who are intentional about customer targeting will increase loyalty and enjoy stable revenue streams.

P.S. Next time you’re at Bill’s, try the grape lime-aid.

Full-time or Part-time MBA?

Published by TC Yang on September 22, 2008 in Student Experience. 0 Comments

As the MBA school year kicked off a couple weeks ago, several of us noticed that a few of our colleagues had switched from being part-time students, to going full-time at Robins.

This observation ultimately led into a discussion around work-life balance between part-time students and full-time students, and how difficult it is for people to juggle jobs, higher education, and personal lives simultaneously. To begin, I must formally applaud all of the students that are a part of the MBA program at UR, regardless if you are part-time, full-time, or a self-punishing JD/MBA student. Even more commendable are those of you who have already started families and have children, since your time is no longer your own.

As a part of the discussion, many students mentioned that they find it difficult to maintain a work-life balance, as it seemed that work had primarily overrun their other obligations, especially school. In this day of remote offices and Blackberry’s, it is easy to understand how this can happen, as bosses and careers often require full-time access to an individual. When asked why they had chosen to become full-time students, a couple of the newly converted mentioned that it would allow them to concentrate on school without the distractions and stress of working. They also mentioned the benefits of being able to graduate from the program on a more accelerated timeline, since they were able to take more classes each semester. Other students in the class mentioned that they had specifically chosen to become full-time students so that they could make entire career changes, leaving a previous career or job behind.

I know that one of my main attractions to the MBA program at UR was the fact that it was a part-time program that allowed for me to continue gaining valuable working-world experience in addition to the experience gained in the classroom. I think the school does a great job of bringing in Professors and faculty who have the real-world experience and knowledge to back-up the theories and methodologies that are taught in class. But at the same time, I find the information and working experiences that my part-time colleagues share in the classroom just as valuable, if not more.

At the end of the day, the decision between attending as a full-time or a part-time student is a personal choice that depends on a variety of factors and personal priorities. There are clearly benefits to both approaches and more importantly, I think that The Richmond MBA program has done a great job in developing a product that has the flexibility to cater to the needs of both types of students.

Foreign Students Flock to the US

Published by Julie Rosson on September 21, 2008 in Global/International Business. 0 Comments

As our economy continues to struggle and so do some of our largest companies, we start to look outward as the economies of other countries that we’ve watched from the winners circle for so long are progressing in ways that we currently cannot.  And as control has shifted, Americans have become more cautious of trade, openess, immigration and foreign investment.  This being the case, the US might not be able to keep up with the foreign nations who are globalizing so quickly. 

One of the ways we need to remain competitive is through technology and innovation.  It is well known that many foreigners come to the States to take advantage of world-renowned education programs.  But are we able to keep that knowledge and innovation within our country?  With the value of the dollar continuing to decline, the cost of college for the foreign students we recruit has also dropped.  In 2007 alone, there were 582,984 international students enrolled in American colleges or universities.  Victor Johnson, senior advisor for public policy for NAFSA: Association of International Educators, states, “If people are coming here for a couple of days to do nothing but buy a new wardrobe, it would be strange if the exchange rate didn’t affect their educational decisions.”  Per capita, the US trains more engineers than China and India; however, most of these enginners are immigrants.  In 2006, 40% of all PhDs were given to foreign students.  It is even predicted that by 2010, 75% of all science PhDs in America will be given to foreign students.

In my current job, I work with many people born in other countries such as Indonesia, India, and China that left their home countries for a college education in the US and did not return home.  I’m thankful for the different perspectives they bring everyday to solving the business problems that we’re constantly tasked with.  I’ve always thought that many international students come to the US, not only for education, but to build a life.  However, it seems there is a general perception out there that most of these students return to their home countries with their learnings.  With the value of the dollar continuing to drop and the education foreigners receive here being more valuable in other countries, how do we keep that knowledge in the US to remain competitive with technology innovation?

The sky is falling

Published by Marissa Smithson on September 18, 2008 in Finance and Economics. 1 Comment

At some point in the future we’re going to look back at this financial crisis as an event.  Whether it was a good event or a bad event depends on the outcome, or at least who writes about that outcome; historically it’s the winners, so I’ll make the assumption that someone will profit from this crisis. 

I’ve seen headlines likening this latest fiasco to the depression (WSJonline).  My coworkers are wondering whether they should have buried their money in the backyard rather than invest for retirement or if they can even pay for their kids’ college tuitions.  And I have to wonder whether some of this could be Chicken Little crying “the sky is falling”. 

This is a market correcting itself; all the risk-taking decisions that corporations shouldn’t take without adequate protective measures are now coming back to haunt them.  All the speculation and manipulation was dependent on the market maintaining a status quo.  And surprise, surprise that wasn’t reliable.

Yes, there will continue to be ripples, here in the United States and again globally until the market corrects itself.  But, I think that media or speculators playing up these latest problems not only increases the spread of the ripples but helps cause them.

What are your thoughts?  Is this crisis an acorn or is the sky truly falling?

Is There Still a Market for Local Business News?

Published by Richard Coughlan on September 11, 2008 in General. 0 Comments

Where do you get news that is new, especially as it pertains to business and commerce?  As an entrepreneur or a manager, where can you find information that is so timely, different and useful that it might provide a competitive advantage for you and your business?

The coverage of business news, especially on a local level, has changed dramatically during the last decade.  Many daily newspapers have abandoned the idea of having a section devoted to business.  Although the websites connected with these newspapers still provide some coverage, the lack of resources devoted to business news often means that we are basically reading glorified press releases from companies.

A few weekly magazines on business still enjoy sizeable readership, but stories are not necessarily timely and sometimes have little relevance to the reader’s corner of the world.

I read the Wall Street Journal every day and usually glance at top stories from the Financial Times website as well.  I find each of these sources to be incredibly valuable in understanding the business world of today.  (The Economist is also very helpful.)  Also, one of the University’s databases allows us to glance at the “front page” of several major newspapers from around the world in five minutes or less and to read the full-text version of interesting articles I come across.  So, I am fairly satisfied that I can keep pace with national and international business news.

On a local level, I have struggled for a while to find a source that gives a good flavor for the tone of conversation among business professionals in central Virginia.  I came across a new option a few months ago that seems to have staked out an interesting position in the local marketplace. I’d encourage to have a look at www.RichmondBizSense.com and to share your views about the site. 

Also, give some thought to the kinds of stories you’d like to see covered locally and post your ideas in the comments section below.  Besides the new site mentioned above, other outlets including the Times-Dispatch and Richmond.com might be interested in your responses.