The Relocation Industry: Where We’re Headed…

December 28, 2011 by Frank Peditto

As we end 2011, we reflect on where the relocation industry has been and where it’s headed. Rather than pontificate ourselves, we reached out to one of the foremost experts, Ms. Peggy Smith, Chief Executive Officer of Worldwide ERC® for a candid interview. Here’s what she had to say.

Question: According to the latest Worldwide ERC Transfer and Volume Survey (2011), relocation activity began to increase in 2010 and is expected to continue to grow. What do you see for 2012 in terms of relocation growth and in what areas (new hires, experienced, global, types of industries, etc.)?

Ms. Smith: I keep saying that flat is the “new up”… meaning, of course, that we feel fortunate as an industry if we can maintain and not lose any traction that we’ve gained in the last year or so. From an industry perspective, we’re hearing that volume will be up modestly. I was pleased to see that in a recent survey of hiring intentions that the U.S. hiring outlook for early 2012 appears to be the most promising since 2008: it noted that 14 percent of employers expect to add to their workforce in the first three months of 2012. 

Question: Coming from the corporate sector, you have a strong history in the relocation industry. How do you feel the industry has changed, if at all, permanently due to the last three to five year of economic challenges?

Ms. Smith: There’s more customization of programs and policies – this serves two purposes. First, it allows a company to individualize assistance when possible for the range of employees and needs that we have in the workplace today, and it also helps control costs by “sizing” benefits appropriately to either proven or untested talent. There’s more incorporation of mobility within the talent management structure. And there is certainly more change coming in worldwide mobility patterns based on a country’s commitment to growth and corporate business strategy. 

Question: Employee reluctance continues to rise, primarily due to the real estate market and the fact that one in four Americans is underwater on their mortgage. What top three strategies have you seen at Worldwide ERC of how corporations are working with employees to mitigate these challenges?

Ms. Smith: One significant shift we’ve seen is that pre-decision counseling programs are now an integral part of the domestic relocation process. Some of the other ways our member companies changed policy include incorporating “incent to rent” programs, property management services at origin if a family decides not to sell; and the development of long-term commuter benefits (e.g., so that the employee can continue to live at their current location, but commutes back and forth to the HQ as needed).

Question: As an organization, what do you feel is most valuable as a resource in today’s economy to your membership? What tools make the most impact to them?

Ms. Smith: The ability to benchmark within the mobility industry is very powerful. For our corporate and government employer members, we have two benchmarking forums – one for global and one for U.S. issues – where, 24/7, our employer members can pose a question and get responses in seconds from their peers – that’s a phenomenal benefit in our rapid-fire environment. Because investing in training in a tight economy is a concern, we have gotten great response to our webinar series, where a member can access a free or moderately priced webinar and invite multiple employees to attend. We have opened our live meeting programs on a complimentary basis to corporations who haven’t attended within the last 3 years so they can experience our conferences… and it expands the corporate community and mindshare for other corporate and relocation members. We’re also expanding our government relations resources, which are already searchable and accessible online, to address more global issues in addition to the strong base of U.S. information we have. 

Question: With the ongoing advent of technology and the ability for employees to work from anywhere in many positions, telecommuting has continued to grow over the past ten years. Do you feel that this will have an impact on relocation?

Ms. Smith: Good question! The short answer is “yes.” There is no doubt that the ability to work remotely changes the scenario for an industry where physically moving someone to the job has traditionally been necessary to achieve a strategic outcome. Time will show us the full effect of technology on the mobility industry, and I believe we’ll see a creative mix of traditional and new work options. We’ve seen some work structures that are a product of our current business environment: short-term assignments and extended business travel are a couple of the most prominent. And telecommuting is gaining ground as more employees have the ability to effectively work at a distance with the technology we have today. But the other side of this issue, as most employers will tell you, is that not every job can be executed well at a distance, no matter how sophisticated the technology. So much of what must happen on the global front, for example, is relationship-driven, and we need to recruit and manage talent with a global mindset who can forge fresh business channels and partnerships for a company in a new frontier.

Thank you to Ms. Smith for taking the time to participate in our blog this month and share her views and expertise with our team. We appreciate your insight and your time. In short, the relocation industry is one, like many in today’s economic climate, which is changing. Unlike past cycles where there are more ups and downs, this period of change is more of an evolution where the process is changing and the dynamics of relocation are shifting.

We wish all of our readers a very Happy New Year and we look forward to 2012.

To Tweet or not to Tweet?

November 4, 2011 by Frank Peditto

I never imagined writing a blog post on whether or not to ‘tweet’, but, as Twitter continues to grow, it’s a question more and more individuals and businesses alike are asking themselves. It’s hard to believe that Twitter, which now reports over 100 million active users and more than 350 billion tweets per day, launched just over five years ago.

If you follow us (@ReloTrans) on Twitter you will see that we have about 150 followers, which in the Twitter universe is extremely low. But, our numbers continue to grow, so we remain optimistic of its potential long-term value both in terms of brand exposure and also potentially customer service. After all, according to Pew Internet Research, 13% of online adults are using Twitter – a percentage that rose 5% from only 8% in just six months. And, during that same time period, use of Twitter amongst adults 25-34 more than doubled from 7% to 19% and it rose from 8% to 14% with adults 35-44.

While I was, like many, skeptical of this online medium at first, a marketing friend of mine encouraged me to create a Twitter account for my company. As first, I protested saying that I didn’t have the time or knowledge to tweet each day and also that our industry wasn’t really engaged in social media. After a lot of additional discussion, I finally gave in and ReloTrans was on Twitter. As I began I was tweeting once a day or maybe twice and I maintained a laser focus on what I felt would be resources or articles auto transportation specialists would find relevant. After scouring the Internet regularly, I realized that there wasn’t that much regular news, so I began expanding my daily reads to include information about travel and transportation at large and then also the larger market of relocation and human resources. Today, I begin each weekday morning with a cup of coffee and a scan of several leading online sites that provide free content. When I find something relevant to the industry, managers, small business executives, or the community at large, I tweet it. It also educates me as I read each of the articles prior to posting. And, in addition to sharing it on Twitter, it feeds through to my personal LinkedIn account and it could feed automatically to our corporate Facebook page as well.

What has been most surprising to me is how easy it is. We use a free tool to schedule and send messages and through that tool, Hootsuite, I can schedule and post to Twitter, Facebook and LinkedIn. And, through sites like Mashable, I can stay on top of the current trends and continue my education about the world of Twitter.

While we haven’t been able to directly link any new business to using Twitter, I have found it to be a valuable tool, not only to serve as a resource to our industry, but also an internal resource as I have shared many of the articles I found while looking for content for our Twitter account with our internal team.

Looking to get started on Twitter, check out the Twitter blog and also the Mashable how to guide.

 

Asset Based or Non-Asset Based: Who to Choose?

October 3, 2011 by Frank Peditto

In the transportation industry, there are two primary types of companies, asset based and non-asset based. Asset based companies are those that own their own equipment. For example, in the niche of vehicle transportation, asset based companies own their own trucks and their driver’s work for the parent company. All of the operations are typically centralized through one primary dispatch. On the flip side are the non-asset based companies, of which ReloTrans® is one. Typically referred to as ‘brokers’, non-asset based companies do not own any of their own equipment, but rather partner with numerous carriers nationwide and even internationally.

From a service perspective, asset based providers may offer customers lower rates as they own their own equipment and, as such, sometimes have more flexibility in pricing, especially if they have a driver needing to get from one location to another and a customer with a parallel need. Some may argue that asset based providers also have more control over the service quality being that their drivers are employees of their company.

Non-asset based companies rely on their network or database of providers, which allows them to be 100 percent customer focused when selecting a carrier and driver for their customer. In many cases, they are also able to obtain bids from multiple providers, all of the same quality, to ensure that the customer receives the lowest possible cost. They are not limited by physical equipment or ‘assets’ and their capabilities are scalable based on the number of partners in their network.

While both types of companies have advantages and disadvantages, our recommendation to customers is to select the company that best meets their needs, not only in terms of the physical transportation of goods or vehicles, but also in terms of their business needs in reporting, communications and technology services. In this business it’s often said that, ‘you are only as good as your last move,’ and in today’s competitive landscape that is even more true.

 

Onboarding New Employees: A Few Keys for Success

September 1, 2011 by Frank Peditto

Starting a new job is never an easy task. It’s a daunting one for the employer as well as the new employee. Over the past year, we have increased our overall team by more than 25 percent and, while our team is thrilled to be growing, especially in the current economy, our growth has forced our leadership team to take a closer look at our onboarding processes.

While many large organizations have entire teams dedicated to onboarding, in many small and mid-sized companies the responsibility falls on the leadership team and a secondary team of pre-identified trainers. Needless to say there are a variety of tools, top 10 tips, videos, white papers, checklists and more available online about onboarding, but, being a company reliant on our service and our professional team, we have found it more successful to build our own plan.

Over the past several months our plan has evolved as each new employee has joined our team. We have paid close attention to the individual, their background, and their new responsibilities to not only reinforce a positive integration into the ReloTrans business, culture and team, but also to ask them and the onboarding team for feedback and ideas on how to improve the process for the next new team member. We have even included new team members in our onboarding process as more employees join our organization.

Even with our plan evolving over time, there are a few basic keys to success that have worked for our organization.

• Communicate with the new employee prior to their start day providing them with:
  • Who they will be asking for when they arrive, where to go, and what time to be there
  • A high-level schedule of first week activities
  • If provided, a benefits package so that they may review in advance and come in with either completed forms or specific questions
  • The dress code and a bit about the corporate culture of the organization
• In advance of their first day ensure that:
  • They have functional phone and email
  • Their desk is prepared and supplied with basic office supplies, business cards, and a welcome card from the team
  • The onboarding team is succinct with who is doing what and when; a calendar is helpful
  • Their immediate working team understands the challenges faced being a new employee and is well-versed in offering lengthier explanations etc. (for example, if your organization or industry uses a lot of acronyms, having those explained)
• On their first day:
  • Everyone knows their roles and responsibilities for onboarding
  • A tour is provided with initial introductions
  • Lunch is planned
  • A leader is checking-in periodically throughout the day
• Throughout their first month:
  • Leaders are checking-in and ensuring that they are on track in terms of both knowledge and comfort
  • Additional social events are scheduled; getting to know new team members is critical to the synergy of the team, especially in a smaller organization
  • Feedback is requested from both the onboarding team and the new team member
    • What went well, what can be improved, and what was missing
• Ongoing:
  • Support is offered
  • Positive reinforcement is provided when earned
  • Feedback is requested

While some of these ‘keys’ are practices that we should have with all team members, in busy times, they are often lost. Onboarding is also a great time to bring your team together and offer others the change to re-train or refresh certain skills.

Customer Service and Caring - Passing it Forward…

August 3, 2011 by Frank Peditto

While most of us view relocation and moving services as transactional services, we often come across stories that demonstrate that the relationship developed between the transferee and either the relocation company or the direct service provider runs much deeper and this is one of those such stories.

Recently, we received an initiation from one of our third party relocation customers to transport a vehicle for a very senior level executive who works for one of their largest clients. We followed our standard procedures and began working with the transferee and his spouse to coordinate the specifics for their vehicle shipment. While a few of the elements of the relocation frustrated the couple, we remained in constant communication with them regarding the process and dates for their vehicle. After the vehicle was picked up, the driver remained in close contact with the transferee throughout the transit process and then phoned them on delivery day to confirm the delivery location. A few minutes after that conversation, the transferee received another call from the driver advising that he was having a heart attack and requesting that they please call 911. The transferee and his wife, already en route to meet the driver called 911 and then also located a policeman, who followed them to the driver, where they together met the paramedics.

All happening in a matter of minutes, the driver was immediately taken to the local hospital and the transferee and his wife followed, spending the entire afternoon waiting for updates on his condition. Some four hours later the driver was released from the hospital, only to be greeted by the transferee and his wife, who drove him back to his truck and helped him offload their vehicle. Concerned, the couple urged the driver to get some rest, but he insisted on continuing on and making his other vehicle deliveries.

In today’s society, stories such as this seem especially poignant and touching, as they are often the exception and not the rule. In the end, the driver was fine, albeit exhausted and overwhelmed from this experience, the transferee and his wife received their vehicle without issue, and a new friendship was born. For our team, this story demonstrates not only the service provided by our partners, but also reinforces that, when it comes down to it, we’re all people, regardless of who is providing the service and who is receiving it, and we all care about one another’s well being.

 

 

Blogging Basics from a First Timer

July 6, 2011 by Frank Peditto

When we hired a marketing consultant to assist us with our new website design in 2010, I was pretty surprised when they recommended that we add a blog to our site. First off, I wasn’t sure how it would positively impact our company seeing that we are primarily business-to-business focused and within in a niche market. Second, I was fearful of our team having the time and marketing background to create new concepts each month and keep it going. After much discussion, and additional education on my part of blogging and how it could help even a small, niche based business, I conceded and the ReloTrans blog was born.

When I initially started blogging, I was focused on keeping the content very industry specific, so I wrote about some of our stories; highlighting key information for transferees from an experiential perspective. As time went on, the team began to recommend other topics including customer service, team leadership and transferee based information. And, the blog continues to evolve today. After just over a year of writing, I offer new bloggers, or those contemplating a blog, the following advice:

• Shed the fear of committing to a blog on your corporate site, regardless of which industry you service and what your company does.
• Keep your blog open and write about topics that are germane, but not limiting. I have found that it’s easiest for me to write about something pertinent and also a topic that I am familiar with and know well.
• Make your blogs about more than your organization; let the business come to you and understand that blogs serve many objectives, but they should not be focused on self-promotion.
• Offer tips and advice; this content seems to draw the most attention as it is often the most relevant for your audience(s).
• Ensure that your blogs are to the point and keep the readers engaged.
• Use links to enhance the resource nature of your blog posts.
• If you make the commitment to blog, keep up with the schedule and work to post at least once a month, all the while, keeping content fresh and on point for your industry and audience(s).
• Have fun and view blogging as an extension of your personal expression and that of your organization. If it’s not fun then it’s probably not helping your cause.

With a little experience under my belt, I look forward to continuing this blog and expanding the topics in the future. If you have any topics you feel would be interesting or that you would like to see, please email me at marketing@relotrans.com.

Industry Trade Events: Worth the Investment?

June 1, 2011 by Frank Peditto

While it seems as though our business in the relocation and moving industry is certainly coming back in 2011, there are still many questions regarding the economy, housing market and unemployment, leaving many small business owners, such as myself, with a lingering reticence on spending. Of course, everyone knows that you have to spend money to make money, but, as a small business, the ongoing challenge is where to make those investments. There are so many marketing options available today: online/web, social, print, and trade events to name just a few, and each have sub-elements as well.

While online, web and social have measurable returns or at least quantifiable ones, I have always questioned the value of trade shows, especially over the past five years. My past experience with trade shows has been that you ‘have to be there’ because if you’re not, your industry often thinks you are out of business, and that most are filled with competitors and not real business opportunities. With that said, being a non-asset based management company, I also understand the value of our partnerships, so this past month we packed up and headed for the American Moving and Storage (AMSA) in Jacksonville, FL. With a new booth, some great giveaways and an open mind, we set up shop and began to network with the 680 other industry professionals in attendance. The sessions were informative and we did so much networking. I was amazed at how many people came over to visit, say ‘Hi’, gather information and see what ReloTrans is all about. I was even more surprised at how many peers had seen our social media efforts on Twitter and Facebook, and our blogs re-packaged on industry LinkedIn groups. I left that show with a fresh perspective and a clearer understanding that, with marketing, you can’t do just one thing or even a few, that everything needs to work together.

The Seasonality of Relocation: May is National Moving Month

May 5, 2011 by Frank Peditto

It is estimated that an average of 44 million Americans move in the U.S. each year. According to the U.S. Census Bureau one in six Americans move each year and the average American will move just over 11 times in their lifetime. While many of these moves occur within the same county or local area, a substantial portion are longer distance moves, requiring the services of moving professionals, including vehicle transportation services.

One of the biggest challenges we face in the moving industry is the seasonality, with between 60 and 70 percent of the annual activity occurring each year between April and September. In fact, the American Moving and Storage Association (AMSA) named May ‘National Moving Month’ to signify the beginning of the season. Anyone who has been in the moving industry understands the seasonality and works diligently to prepare for the increase in activity while not sacrificing service or capability. Reflecting back on my nearly 20 years in the business, I share the following recommendations for preparation and survival.

• Survey your clients: Meet with clients during annual reviews and work to develop individual plans based on their specific business objectives and predictions for the forthcoming year. Incorporate these forecasts into your overall business modeling.
• Leverage temporary help: Design and implement an operational model that allows for the engagement of temporary help during the spring and summer seasons. A perfect opportunity for college students and interns, your model must be built to allow for the separation of administrative and back-office tasks (non-customer facing) providing your experienced service professionals with the support required to effectively manage an increased caseload without comprising service in any way.
• Prepare and train your team: Don’t wait until the initiations begin coming in, but rather work with your team in advance to prepare them for the process and train them on efficiencies and best practices to allow them to effectively do their jobs and provide unparalleled service.
• Continuously invest in technology: Work on your business as well as in it, remaining focused on improvement and leveraging technology to reduce redundancies in workflow and automate any non-critical manual tasks.
• Reward your team: Ensure that you recognize the increased workload through internal kudos, pizza lunches, complimentary half-days, etc.

Working in a seasonally impacted industry is not easy and it requires a lot of knowledge, preparation and flawless execution, but, if you know your business and engage and reward your team, you will mitigate the volume with ease and position yourself for continued growth in the future. 

Top 10 Keys for Excellent Customer Service

March 3, 2011 by Frank Peditto

Oftentimes companies are so focused on acquiring new business that they lose sight of the true value of their existing customers. According to The White House Office of Consumer Affairs, the cost of acquiring a new customer costs an average of five times more than retaining an existing customer. Add to that the statistic from the book; “Leading on the Edge of Chaos” that a two percent increase in customer retention has the same impact on profits as cutting costs by 10 percent and the value of existing customers certainly becomes a lot clearer.

According to a report issued by the Harvard Business Review, the average company loses 50 percent of their customers every five years. A standard business objective each year for most companies focuses on customer retention, but what are the true keys to achieving that goal. As a smaller, non-asset based company, customer retention sits at the forefront of our goals each year, alongside the mindset that we are only as good as our last ‘move’. Following are the top 10 ‘keys’ we employ in our organization to support our clients and relocating employees and exceed our customer retention objectives each year.

1. Treat your employees well. Happy team members equate to happy customers.
2. Respect your customers, both the clients and the transactional customers, and remember that they are people first.
3. Keep in mind that you are a service company and your people and the service you provide is your greatest asset. According to The White House Office of Consumer Affairs each customer has a circle of influence of 250 people or potential customers, which is likely even more in today’s environment with the continued evolution of social media, who will hear negatives about your company if your service does not meet your customer’s expectations.
4. Separate yourself as a service professional from your work. Think of an issue in terms of solving a problem rather than receiving a personal attack. Remember that the customer is mad at and frustrated with the situation; it’s not personal.
5. Listen to your customers. While we’re all faced with the need to multi-task, remember that these are your customers and to truly listen to them and demonstrate your respect for them you need to be 100 percent focused.
6. Make your customers feel special. Nordstrom started this in retail by walking your purchases around from behind the counter. While much of the customer service provided today is by phone, remaining focused and smiling, even while on the phone, will translate and make your customer feel valued.
7. Be a step ahead. By listening and respecting the customer, you will be able to identify opportunities to anticipate questions, needs or even issues and present answers and solutions in advance.
8. Go beyond. Work in partnership with your customers and do one small extra thing. Whether it’s an extra call, a gift card, or even one additional email follow-up, it demonstrates your commitment to excellence.
9. Show humility. While this is reflected in many of the keys already mentioned, it is still critical. A simple apology goes a long way and it can be as easy as recognizing their issue or concern and just saying that you are sorry that they are having that experience.
10. Get feedback. Survey your customers throughout the service delivery and post-completion and make sure to share that information, positive or negative, with your team; working to do more of the positive and using the negative to build internal objectives or identify process improvements for the future.

Top 10 Tips When Moving a Vehicle

February 2, 2011 by Frank Peditto

The last few months, I have focused this blog on customer service, which is always critical in our industry, but this month, as we prepare for the busy seasons of Spring and Summer, I am focusing on they key items, or ‘Top 10’, that transferees need to know when they ship their vehicle. So here they are, in no particular order.

1. Make sure your transportation company has an active phone number for you where they can reach you both at origin and destination.
2. If your vehicle is not running, be sure and let your transportation company’s counselor know as soon as possible.
3. Do not cancel your insurance policy.
4. Ensure that you have two complete sets of keys for your vehicle.
5. Make sure that your vehicle is completely emptied of any personal items prior to shipment.
6. Replenish coolants etc. prior to shipment, especially during inclement weather conditions.
7. Disconnect all alarms.
8. Remove any non-permanent items such as ski racks etc.
9. Remove or retract any antennae.
10. Have less than one-half of a tank of gas in the vehicle, but ensure that it’s not completely empty (i.e. the gas light should not be on).

Share these ‘tips’ with your transferees and please post a comment to this blog with any additional ones you might also recommend.