This issue of s.h.a.r.c. includes interviews with three seasoned global business executives, who share the insights on how to achieve business success in the US market.
Joseph Paolella – Former US Secret Service Agent and Director of a Boutique Consultancy Firm
David Menko – Global Marketing Manager for CIBA Vision, a division of Novartis
Brandon Vermaak – Global Credit Risk Expert for NCI Group
Joe Paolella is a former U.S. Secret Service Agent and a Director of Joseph Paolella & Associates, Dr Chris Gugas & Associates and the American Academy of Forensic Studies. He holds a college degree from University of Colorado (BA), has had 10 years experience in the U.S. Secret Service, and 30-years in his own private practice.
What do you regard as the key factors for any business to succeed in the US market?
Answer : Integrity, Perseverance, Focus, Education and hard work.
How do you/your company identify and assess customer needs/wants?
Answer : Because of our reputation and experience, we advertise to companies that would need our services, lawyers, corporations, etc.
What type of customer does your company want?
Answer : We are “Problem solvers”; a customer comes to us usually when in trouble and wants us to fix it.
What do your ideal customers need/want from your products and services?
Answer : Honesty and professionalism; they need to know that we have the credibility and experience to solve their problems.
How important is it for your company to manage customer complaints?
Answer : Next to doing the job right, customer complaints are the next most important job. An unhappy client will contact more people than your satisfied clients.
How do you compare your company’s performance with that of your competitors?
Answer : We have been in business over 30-years and have kept many of our original customers. If we provide what we say we can, I don’t worry about my competition.
What are the elements of the customer buy experience for your company’s products and services?
Answer : The customer looks for a company that can provide the services required and guarantee results.
What are some factors that influence a customer’s perception of value in a product or service?
Answer : Our experience. We’ve been doing business for over 30-years and all our employees have many years of experience. By our employees actions and ability to provide services on time. Completed with courteous follow-up.
Who are some companies in the US market that excel at these factors?
Answer : Wal-Mart has filled a niche where they give good services at affordable prices and will stand behind their products. Costco is another company that also provides good services and value for your money.
What key performance indicators do you set in order to measure how your company performs in the eyes of its target market?
Answer : Continuous marketing through personal contact, advertising and information obtained from networking. When business slows, we increase our marking efforts.
How important are your business partners to the viability of your business?
Answer : Your partners must promote and actively be involved in the company’s philosophy of doing business and not hurt your future goals.
How do you measure return on investment/return on effort from business partnerships?
Answer : You and your partners must be on the same page regarding expenses and income. If everything works out, the business will hopefully have more income than expenses.
What type of business networks do you belong to in the US ?
Answer : The American Polygraph Association, California Association of Licensed Investigators, and The Association of Former U.S. Secret Service Agents.
How important is it to link to useful business networks in the US ?
Answer : Networking is essential in business because our services are utilized by all businesses.
What types of business networks help a company to succeed in the US market?
Answer : Networks that provide information and services to promote your growth as a business and person.
How does your company deal with value-driven competitors?
Answer : We have no problem, because we feel that we are also value driven.
What are some useful negotiation tactics that can be used when negotiating a commercial deal?
Answer : Both sides must feel that they have accomplished their goals. If one side gets the best of the other side, there will be hard feelings, which may cause problems.
What general advice would you give to an Australian company that is entering the US market for the first time?
Answer : Do your homework; find a niche for your company that will appeal to the U.S. market in order to satisfy the needs of that market. Be focused and not be afraid to work hard to achieve your goals.
Joseph, thank you very much for your time.
David Menko is the Director Global Marketing, Daily Wear for CIBA Vision, a division of Novartis. He has 6 years media and advertising in Amsterdam, Netherlands for pan-European clients, including Canon, Nissan, ING Bank, Coca-Cola, holds an Advanced Advertising Diploma and MBA from Tuck School of Business, and has 5 years marketing experience in New York, NY, USA for Colgate-Palmolive for different brands including Colgate kids & value toothpaste, Men’s Speed Stick Deodorants, Colgate toothbrushes.
What do you regard as the key factors for any business to succeed in the US market?
Answer: The number one factor is understanding your consumer and customer needs. Offering truly unique products and/or services that fulfill unmet needs. Ensuring your company has a pipeline of innovative new products and/or services that will fulfill unmet needs. Create relevant and memorable communication that resonates with your audience.
How do you/your company identify and assess customer needs/wants?
Answer: Simply put, by asking them, through primary and secondary research. Evaluate consumer/customer trends both inside and outside your field of expertise and look for relevance in the segment you conduct your business in. A good example is when a new method of delivery, like breath strips, is applied to medicine delivery for children.
What type of customer does your company want?
Answer: We operate in an environment that we has two kinds of customers – the eye care professionals and the key accounts. Furthermore we have the end user, our consumer. It is critical we have a close working relationship with our customers and help them in best servicing the end consumer. Our success is closely tied with the success of our customers. Therefore, it is important we have a dual marketing strategy that aims at the customer to ensure push and at the consumer to create pull. Ideally, we want a customer (e.g. Eye Care Professional, key accounts) that in interested in growing his or her business by focusing on delivering what contact lens wearers need/want
What do your ideal customers need/want from your products and services?
Answer: Loyal, satisfied patients and a healthy margin
How important is it for your company to manage customer complaints?
Answer: Critical. Depending on the country we operate in, we have different operational procedures, but for example in Japan we have a dedicated team of eye care specialists that personally handle each complaint.
How do you compare your company’s performance with that of your competitors?
Answer: While the competition is important to observe and understand, I think it is most critical to understand the consumer and customer and act accordingly. Look at Apple, it is successful through true innovation, not imitation. Likewise, CIBA Vision focuses on innovation: we are the first company to introduce an FDA approved soft contact lens for extended wear for up to 30 nights, called Night & Day™.
What are some factors that influence a customer’s perception of value in a product or service?
Answer: Our consumers usually listen to the advice of their eye care practitioner, so it is often the perception of the customer that drives the decision making process. The most important value in our product category is to maintain the health of the eye and then overall comfort of the product. Therefore, customer education is vital combined with additional consumer educational/promotional material in the office to help our customer better service the consumer.
Who are some companies in the US market that excel at these factors? Why?
Answer: The Gillette company is very strong in educating the dentist , which helps with their level of recommendation to the consumer, who in turn drive the market demand – Oral-B is the #1 manual toothbrush in the USA . They invest heavily in a very extensive educational program to the dentists and also sample their toothbrushes via this channel to generate trial.
What key performance indicators do you set in order to measure how your company performs in the eyes of its target market?
Answer: A variety of measures throughout the life cycle, including clinical trials, test markets, in market complaint rate, concept tests, etc.
How important are your business partners to the viability of your business?
Answer: We consider the practitioners and key accounts our business partners and without them we would not have a business
How do you measure return on investment/return on effort from business partnerships?
Answer: Usual business KPI’s, including account sales/revenue, margin, etc. As many lenses are offered, we try to become the “lens of choice” with practitioner for the majority of their patients.
How does your company deal with value-driven competitors?
Answer: We are known for our extremely high quality and therefore have an established reputation and brand value, which is important for us to maintain. However, in certain markets value players have established a foothold and as we are a global company, we evaluate them on a country level and act accordingly. Like many established organizations, we have a multitude of products at varying price points – from Focus ® DAILIES ® for extremely easy and comfortable one-day disposable usage to our brand-new O2Optix™ - breathable contact lenses for the health of your eyes - and Night & Day™ for continuous wear for up to 30 nights. Pending the opportunity, there are several strategies in order to compete effectively:
1) offer products as private label (i.e. cash cow to fund new innovation)
2) create larger size/quantity products to offer discounts through ‘pantry-loading’
3) promotional offers for temporary price reduction
What are some useful negotiation tactics that can be used when negotiating a commercial deal?
Answer: Understanding the US market is critical to your success, so make sure to fully understand the consumer and the customer and any part of the supply chain that will possibly affect the quality, price or speed of the delivery of your products or service – and understand on which of three you are willing and or able to negotiate on without affecting the overall proposition of your product or service. Also, realize what the potential effect of the outcome of your negotiation means for the positioning of your company. This is the basis that you establish upon entering the market. For example, it is very difficult to change a price-fighting image into a high-end one.
What general advice would you give to an Australian company that is entering the US market for the first time?
Answer: Leverage your consumer insights and customer knowledge to clearly position yourself. Be unique or if that’s your company strategy and a sustainable proposition, be the low cost provider.
David, thank you very much for your time.
Brandon is a Senior Consultant in Trade Credit with National Credit Insurance Brokers (NCI Group). With almost 19 years of experience under his belt, Trade Credit Insurance is definitely Brandon ’s forte, particularly export risk! Brandon has been with NCI in Australia for almost 4 years as a trade credit insurance consultant. Prior to his role at NCI, he was a Director at Alexander Forbes ( South Africa ) in the Credit division for 2 years. From 1994-1999 Brandon founded his own business (RBR Credit Insurance Consultants) in Johannesburg . Prior to this he was an export underwriter and consultant with Credit Guarantee for 8 years.
What do you regard as the key factors for any business to succeed in the US market?
Answer:
What is the nature of your business?
Answer: NCI are the one-stop shop for all trade credit requirements. We source appropriate trade credit solutions from the whole market and present all alternatives so that we can help clients identify and significantly minimize their trading exposures.
How does your company assist exporters?
Answer: We provide them an alternative to Letters of Credit through trade credit protection. We also have established relationships with a number of Underwriters and Financiers, which enable us to provide global access to financial and political information, customer databases, credit risk assessments and debt collections support.
Our trade credit insurance policies add value because the majority of banks and financiers recognise credit protection as collateral security. This means our clients can often gain the financing they need and at competitive rates.
Through providing clients with sound credit protection, they can offer their customers with open account payment terms – obviously an added value in terms of competition.
Most importantly, we help our export clients recover the money they are owed when they are up against non-payment risks such as buyer insolvency; contract frustration due to war, civil war, riots; currency inconvertibility; import/export licenses cancellation; contract cancellation due to buyer’s Government etc…
How do you/your company identify and assess customer needs/wants?
Answer: We take time to meet the client face-to-face and learn as much as possible about their business and their clients. We take into consideration past experiences and future expectations; we then isolate their potential needs and wants and provide them with the best solution.
What do your ideal customers need/want from your products and services? Why?
Answer: They want fast and reliable credit information, ongoing support and reassurance that their business profits and cash flow will be protected in the worst case scenario.
How important is it for your company to manage customer complaints?
Answer: Identifying and solving problems is a major part of our business as anything left unresolved does not only cost us credibility in the marketplace but also profitability to our clients. Being service-oriented, attention to details is imperative and being proactive is our competitive edge.
How do you compare your company’s performance with that of your competitors?
Answer: NCI have the largest credit insurance market share in Australia and New Zealand . We have a unique approach to customer service i.e. personal relationship management with access to various specialists within the NCI group.
What are some factors that influence a customer’s perception of value in a product or service?
Answer:
What key performance indicators do you set in order to measure how your company performs in the eyes of its target market?
Answer:
How important are your business partners to the viability of your business?
Answer: Good reliable business partners mean your business will thrive. A referral is worth 10 cold calls! But the relationship doesn’t end there - access to other specialists provides your clients with added value.
How do you measure return on investment/return on effort from business partnerships?
Answer:
What type of business networks do you belong to?
Answer: NCI is a member of various associations and networks such as Australian Institute of Exporters, Chambers of Commerce (both State and International Chambers of Commerce), professional development & industry bodies such as Australian Institute of Credit Managers, Australian Steel Association.
We also have well-established relationships with all the main credit insurers, banks, financiers, mercantile agencies and general insurance brokers.
What types of business networks help a company to succeed in the US market?
Answer:
How does your company deal with value-driven competitors?
Answer: NCI provide more flexible solutions but we focus only on client’s trade credit needs. Our new products are designed around ever-changing market needs which keep us ahead of the game.
What are some useful credit risk tactics that can be used when entering into commercial deals in Australia and overseas?
Answer:
What general advice would you give to an Australian company that is entering the US market for the first time?
Answer:
Too often businesses do not carry out the above and end up getting burnt, but if they plan well ahead and have the right expertise and support, the rewards will be much greater.
Brandon, thank you very much for your time.