Ever heard of anyone threatening to sue over a $2 purchase? Welcome to ecommerce!
There's something about the partial anonymity of online business that leads some clients to believe that rattling sabers is a great method of conflict resolution.
I've been involved with bricks and mortar business since the 1980's and ecommerce since the mid-90's. I have noticed that customers have a greater tendency to come out swinging when online transactions don't quite go the way they expect.
If you've experienced your share of aggressive online clients or are just venturing into ecommerce, I hope this article can provide some valuable advice for dealing with these unpleasant incidents. Some of the following principles can also be applied to non-aggressive complaint resolution.
The "customer is always right" myth
Like many people, in my pre-Internet days of retail, I was taught by various employers that the customer was king and always right. Sure, customers are king to a certain degree, but times have changed. We live in a more aggressive, "I want it now" type society. Business is now more competitive and client loyalty can be very fickle. Competition has given consumers more power, as has the availability of consumer advocacy groups and hungry lawyers.
Consumer protection is a very positive thing, but it has led some misinformed people to believe that they can demand beyond what they are entitled to from a merchant.
Regardless of whether the client is in the right or in the wrong, their aggressiveness can cloud the real issues and challenge rapid resolution. This scenario can be a real time-sucker, distracting you from attending to core business - they need to be dealt with quickly and effectively.
Reputation monitoring tools. What are others saying about your online business? Identify complaints, locate reviews & testimonials! Try TrackUR free for 14 days
Types of aggressive online clients
My experiences over the past few years in dealing with aggressive clients in a online environment has allowed me to categorize a person quite quickly. The "I'll call my lawyer" types can usually be broken down into 4 groups.
The clueless/illiterate client.
These are people who shouldn't be using a computer to engage in online transactions without some further training. For these people, an Internet connection is a WMD - a Weapon of Mass Disruption.
These people have little to no online experience outside of browsing and believe that everything should be so intuitive that it requires no mental effort on their part at all. They are the ones most likely to order the wrong goods, record their delivery details incorrectly or repeatedly enter the wrong password into a client account interface :). Their email communications are usually poorly constructed and they expect the recipient to be a mind-reader.
Instead of acknowledging their own incompetence, they will invariably blame the technology.
Here's a classic example. A client once contacted me stating that their access details didn't work. I couldn't find a record of them in our system. I inquired about this and they became a little impatient about it. I asked them to confirm the username and password - they sent me a blank email. I then asked them to send me a copy of a receipt. They sent me a photo of their house. After a week of back and forth trying to extract some sense from them, they sent me the receipt. It was from another company. They had signed up with *that* company, not ours and then proceeded to suck up several hours of my time in research and communications while we tried to resolve where the problem was. Of course, during this time they tried the "I'll take further action!" spiel.
The client with personal problems
Ever had one of those days where everything went wrong from the moment you opened your eyes? Online vendors make wonderful scapegoats for people who are experiencing personal problems. The anonymity of email or live chat can bring out the worst in those people. Instead of separating problems, they bundle them all together and fire the accumulated frustration at you.
The scammer client
These are the people that make a career of complaining and aggression. They do this in order to extract free services from ecommerce merchants - it's just schoolyard bullying brought into the adult world. They will kick up such a stink that you give them freebies or discounts just to get them off your back. Expect no loyalty from these people. Once they've squeezed you all they can, they'll just move onto the next target.
The exasperated client
Out of all the categories, this is the only type whom deserves your utmost efforts to assist. These are the clients who have experienced legitimate problems and have been passed from pillar to post within your organization without any resolution. In their frustration, they become aggressive - still not acceptable, but more understandable.
Dealing with aggressive online clients
The way you initially respond to an aggressive client is so important. It sets up the battlefield for a rapid victory or a long and bloody campaign. Equating customer support to war isn't a good mindset and I usually wouldn't draw that comparison, but once the client gets unnecessarily nasty, that's just what it is - a battle of minds.
Get it right and you can resolve it quickly. Get it wrong and it can drag on for weeks and cause you all sorts of legal problems if you've identified the "type" of client correctly.
Probably the best way to illustrate a handling process is via a fictional example:
Example ---------------
"Support,
I purchased a downloadable flomble with my credit card and the download link didn't arrive. Your site is (expletive) crap and a scam. I don't have (expletive) time to deal with this - my dog just got ran over and I don't need this (expletive). I expect you to refund my money and give me access to the flomble to make up for wasting my time otherwise I'm going to call my lawyer and I'll sue your (expletive). Call me on my phone immediately as email confuses me and I've emailed you 20 times already without response.
John"
End Example -------------
You can laugh, but I've seen this kind of email on occasion. In this type of complaint, it's difficult to categorize which type of aggressive client "John" is. He actually fits into quite a few categories; but we can't be sure at this point if he's also a scammer.
How to respond to aggressive complaints
John has threatened legal action, even though this is the first that you've become aware of the problem. Bear in mind that in most instances, the client actually has no intention of calling up their lawyer. In most cases they won't have one; but you must tread cautiously. Remember that the goal is to not score points for personal satisfaction or to retaliate for spiteful comments, but to resolve the issues as soon as possible.
There is one of two outcomes you'll want to achieve
*
resolve the issue with view to getting rid of the person altogether.
*
resolve the issue with view to maintaining an ongoing relationship.
Personally, I prefer the first goal. I really don't want clients who are abusive and aggressive as it may be a habit for them; but in John's case there is a hint that perhaps the issue *may* have been a failing on my company's part.
Let's give John a response. Even though John has demanded a phone call, if you do not offer phone support, then there's no reason why you should have to call him in the initial response. Also, an email response provides a written record in case things should get out of hand:
Example response -----------------------
Dear John,
Thanks for bringing this to my attention, I wasn't aware you were experiencing problems until I received this email from you a few minutes ago. I have checked our support system and haven't been able to find any of the the previous emails you stated you sent.
I'm responding to you via email as we don't offer phone support and this way, we both have a written record.
John, I'm sorry to hear about your dog and I'm eager to resolve this issue for you as quickly as possible, but I ask that you refrain from using abusive and vulgar language as it's unnecessary; I'm here to help.
John, could you please provide me with some details of your purchase. Either please forward me a copy of the receipt, or if you didn't receive a receipt, please provide me with the following details:
*
Your full name
*
The date that you purchased the flomble
*
The email address that you used when purchasing
*
The last 4 digits of the credit card you used.
Once I have that information, I will investigate with our team, check our billing systems and follow up with you within 24 hours. In the meantime, I'd also like for you to check something for me - is it possible the email that would have contained the download link may have wound up in your bulk email folder or in the deleted items?
John, I can assure you we aren't a "scam" business and there's no need for you to go to the expense of contacting your lawyer. We've been involved with ecommerce now for nearly a decade and we're always eager to assist our clients on the rare occasion that there is a problem.
Sincerely,
Blah
End of example -----------------
There's a number of points achieved in this style of response:
1.
Addressed the person by name in a number of instances, therefore giving the signal that they just aren't a "number"
2.
Shown that you responded quickly once you were aware of the problem
3.
Addressed each point made in the complaint
4.
Asserted that the issue will be resolved
5.
Gave a clear indication that vulgarities and aggressiveness will not be tolerated
6.
Liability for the problem has not been accepted as there isn't enough information provided to do so
7.
Asked for all the details needed to investigate fully without having to go back and forth with questions
8.
Defended the credibility of the business
9.
Haven't apportioned blame on the client.
10.
Made no offer of compensation at this point, just resolution.
In the majority of cases, a response like this will help defuse the situation if the clients' claim is legitimate. If they cannot provide the information, especially a credit card number or some sort of payment details, then it's likely they are a scammer. Never, ever accept liability from the outset if the circumstances aren't clear - this could work against you later.
Live Chat Software
- Boosts sales, a great marketing tool -
- Helps to reassure your visitors -
- Makes ecommerce more "human" -
- Track visitors on your site in real time -
Learn more about the benefits of using live chat software in your online business, read a review and try out a free service!
Resolving the situation
It's important that once you have received the information that you follow up as promised. Failure to do so will only incense the client further and give them greater basis for a case and an excuse to become abusive again. How you resolve the situation depends on the scenario.
If your company is at fault
If the fault does turn out to be on your end, it doesn't mean you need to give the client exactly what they demand. Give them some choices:
*
A full refund
*
A partial refund, plus the product
*
A credit on their next purchase
*
Another companion product for free
The idea is to give the client some power, but not all of it. This will give them a clear signal that you while you are meeting your obligations in the transaction, you aren't a doormat. Apologize for the inconvenience, but don't grovel - mistakes happen.
If fault cannot be determined
If it's not clear who was at fault, you may still wish to provide one of the above. If you do provide a discount or freebie, ensure you record it somewhere. This is for tracking purposes so that you can identify repeat "offenders". A number of major fast food restaurant chains keep complaints books, not just as a QA (Quality Assurance) tool, but to identify freeloaders.
If the client is at fault
If the client is at fault, then they should be gently advised as such. There's no use not addressing the fact as they will learn nothing and probably continue making the same errors. A gentle rap on the knuckles is sufficient:
"John, the reason you didn't receive the download link was because you entered www.john@kdfjkfdjl.com instead of john@kdfjkfdjl.com in the order form"
In these instances, it is suggested that you only provide the client with what they ordered; there is no need to provide the product for free - they received your attention for free when the problem laid squarely with them.
Continuing aggressiveness
If the client continues to be aggressive in their responses, tell them in a professional way again that while you want to assist them, you will not tolerate abusive or vulgar language; and if they should persist, you will cease communications until such time that they can behave in a civil manner. Any direct physical threat made to you and your staff should be referred to the appropriate law enforcement agency immediately. Ensure you keep a copy of all communications.
Remember, that regardless of the tone of the client and how much it may hurt you - do not match their aggressiveness, just be assertive.
If they *should* call their lawyer and their lawyer contact you, you can then show your attempts to resolve the situation and also point out how aggressive and abusive their client was. That should earn them a slap on their wrist from their lawyer and minimize the possibility of further legal action.
Your staff and aggressive clients
It's important that your staff be trained in dealing with aggressive clients. In fact, wherever possible, aggressive communications from clients should be immediately escalated to you or to a senior manager. This shows the client that someone in the upper ranks of the organization has taken special "interest" in them. This "interest" works in your favor in two ways:
*
It shows the client that you feel their complaint is important.
*
It shows the client you don't allow your staff to be bullied or abused.
Prevention as a strategy
The old saying of "an ounce of prevention is better than a pound of cure" is very relevant in online business. Ensure that your ordering/delivery systems, faq's and help documentation are spot on and you'll have less of these sorts of issues to deal with.
Set up your site to require as little mental effort on the clients' part as possible. It's a sad fact that most of us don't like to think too much these days. Live chat/support software and effective shopping cart software can also be of great benefit in heading off complaints.
Aggressive clients in ecommerce are not a passing fad. In fact as time goes on and our world generally becomes more aggressive, you'll see more of them. It's important for all of us as ecommerce merchants to send a clear signal to our clients - we want to deliver the best possible service to them, but that abusive and aggressive behavior will not be tolerated.
By the way, it doesn't hurt to have an online-savvy lawyer of your own on stand-by for dealing with continually unreasonable clients who just don't "get the message". A brief "cease and desist" letter from a lawyer to them can save you many hours and much stress. Plus there is a degree of satisfaction without having to sink to the level of the person :).
Related learning resources
Choosing the best shopping cart software
Live chat software for ecommerce
Michael Bloch
Taming the Beast
http://www.tamingthebeast.net
Tutorials, web content, tools and software.
Web Marketing, Internet Development & Ecommerce Resources
Monday, November 10, 2008
Tuesday, October 7, 2008
ETFs, Funds And Shares: What Are They And What Are Their Benefits?
Exchange Traded Funds, better known by many investors as iShares, the brand owned by Barclays Global Investors ('BGI') have been around in the UK since April 2000, with the launch of the iFTSE100 on the London Stock Exchange. From a slow start, by the end of 2005 (the latest figures available), some 125 billion was held in assets under management. Generally, when you look for your share price information, you'll find them grouped in the extra MARK section, where you'll now find some 45 different ETFs on offer. Although they have been around for sometime, let's just remind ourselves how ETFs work. They are listed on the stock exchange, providing the flexibility and trade ability of a share, including the fact that the price is continuously quoted, but that one share can provide instant exposure to an entire Index, giving you the diversification benefits of a fund. ETFs are also a flexible way of achieving cost-effective market exposure. Because the funds are registered in Ireland, there is no stamp duty to be paid on purchases. Management costs are taken from dividends that are accrued by the fund, and any excess income is then distributed to shareholders: unlike unit trusts, there are no initial fees to pay on the original purchase. The price of the fund is always close to the 'Net Asset Value' (NAV) of the underlying investments and will usually have tight spreads, unlike some unit trusts and some investment trusts. Also ETFs will disclose their holdings everyday, whereas traditional funds usually disclose their holdings twice a year.
What can I invest in?
ETFs offer a wide range of opportunities for investment with varying levels of risk: as at mid-December there were 45 different markets/indices to invest in, ranging from corporate bonds to the Taiwanese market. Starting at the lower end of the risk spectrum there are several corporate bond ETFs, as well as some Gilt-based investments. Moving on to the medium risk level, you can choose from global funds to ones that are more specific to individual regions, such as the US or Asia. There's also the option of investing in individual indices: 'index trackers' are available for the UK's FTSE100 and 250 Indexes, the US S&P 500, or Europe's Euro first 100 & 80, spanning the top European companies. For those wanting a higher level of risk, there are also ETFs which will give you exposure to emerging markets, such as Turkey, Korea, Taiwan and Eastern Europe. ETFs don't offer the same wide variety as unit trusts, but for investing in the countries and sectors they do cover, their charging structure and trade ability make up for this. As such, they provide a good, low cost, easily-traded route into the market, with the flexibility to move up the risk ladder as your experience and capital grows.
Finally, if you've an appetite for an even spicier approach, the London Stock Exchange also enables you to invest in commodities, through ETCs (Exchange Traded Commodities). Although like ETFs they are traded in the same way as shares, and are eligible to be held in a PEP or ISA, they do work in a completely different way. Whereas ETFs actually buy the underlying investments, ETC managers don't buy and store tons of wheat and copper, stack-up barrels of oil, or herd livestock into pens. Rather, they buy options on these commodities. As a result, ETCs are classed as more 'complex' investments by the FSA and you'll need to complete a special 'risk notice' confirming you understand the additional risks of investing in them. So take a fresh look at ETFs - you might just find they offer you more than you thought!
Funds: take your pick of the best
Unit Trusts and Open Ended Investment Companies (OEICs) are investments that let you pool your money with lots of other 'retail' investors. This money is invested on your behalf by a wide range of specialist fund managers, investing in, for example, Government gilts and bonds, commercial property and equities. Investing in funds gives you access to a highly-diversified range of investments at a reasonable cost. You will also have easy access to asset classes and international markets that would otherwise be difficult and expensive to invest in and benefit from the Fund Manager's contacts, knowledge, experience and expertise. Funds come in many shapes and sizes from 'trackers' to specialist or 'themed' funds.
An index-tracking fund (often referred to as a 'passively managed fund') aims to match or 'track' the performance of a given market index, such as the FTSE All Share or the FTSE 100. They do this using computer programs to work out how much of each individual company they need to buy and sell to mimic the performance of the Index as a whole. But not all 'tracker funds' match the Index they are tracking that well - so be sure to check their record. An 'actively managed fund' on the other hand employs researchers to study and engage with companies in which they plan to invest, and to keep abreast of the prospects for companies in which they already invest. They'll compare their performance to a 'benchmark' index related to the investment objectives of their fund, with the expectation that the extra work they put into tracking down the 'best' investments will literally pay dividends through higher growth than that of their benchmark.
Choosing your funds
When you pick your funds, be sure to rate them against other funds that fish in the same waters. Don't expect a 'value' fund and a 'growth' fund to have similar track records. Only by comparing funds with their true peers will you make a good choice. Whilst past performance should not be seen as an indication of future performance, past performance does matter when comparing like with like. Chasing winners however, is as dangerous as day-trading. Not surprisingly, all five of the top-performing funds at the end of 1999 were technology sector funds. Sector funds have a place in many a portfolio, but for the majority of investors they belong at its edges, not at its heart. An individual fund will give you a wider spread of underlying investments: by investing across a number of funds you're better able to smooth out the ups and downs of the market overall. But that won't work if it turns out that your funds hold virtually the same investments. So have a look at each fund report to see their top holdings and make sure you've got a good spread overall.
Individual Company shares
When it comes to the individual shares part of the investment model, the lowest risk entry point has always been recognised as companies in the FTSE 100. However, you should always bear in mind that the Index evolves over a period of time, changing its overall make-up. Consider, for example, that over the last 6 years technology shares have fallen out of the Index, while mining companies, on the back of booming commodity prices, have dramatically increased their presence. Yet, because of the volatility and cyclical nature of the sector, individual mining groups can't be classed as low risk. Other 'big names' have gone from the Index due to take-over activity - companies like P&O, Abbey National & BAA - all of which have to be replaced.
Today, some 80% of the make-up of the overall value of the FTSE100 comes from just 5 sectors - Banking, Mining, Oil & Gas, Pharmaceuticals, and Telecoms (fixed and mobile). So, if you're looking to the Footsie to form the bedrock of your investment in individual shares, where should you start? Companies involved in essential, everyday products and services, such as the water and electricity utilities and broad-based retailers often provide a solid backbone to any share portfolio. You could argue, however, that the classic 'defensive' nature of utilities has recently been undermined by the number of take-overs within the sector. The share prices of the remaining companies have climbed to all-time highs, potentially increasing the level of risk.
There is without doubt an appetite for the assured cash flow that utilities provide, and it's fair to say that a growing number of analysts agree it's hard to justify the current prices. Despite this, get your timing right, buying at the right price, and these sectors should still provide a strong base on which to build your individual holdings. To extend your scope, whilst still staying within a lower risk profile, your next ports of call should be into the banks, pharmaceuticals, tobacco and beverages sectors.
Move on up to the intermediate, 'medium risk' level, and you've an increasing choice, including the remaining FTSE100 companies, dominated by the mining sector. The majority of shares in the FTSE250 would also fit into this 'medium risk' category. Still relatively large companies, it is these shares that have seen some of the biggest gains over the last 3 years, helping push the 250 Index to record levels in 2006. One noticeable difference between the FTSE250 compared to the FTSE100, is that companies here generally have less international exposure. When it comes to the consideration of risk, you can play this one of two ways: some argue that having the majority of profits coming from the UK provides for less risk, while others (including us) favour having fingers in as many regions as possible.
Finally, at the higher end of the risk scale you find smaller companies and AIM quoted shares. These tend to be more volatile and less liquid than their larger cousins, factors that generally lead to wider bid/offer spreads. The AIM market has seen considerable growth over the last 10 years, partly because companies don't have to comply with the same stringent requirements of the main market.
Often, private investors don't get a look-in as part of the flotation, having to wait until the shares start trading, so do pick your time and use stop-loss limits - that early flush of success isn't always carried through. One of the fastest growing sub-sectors within AIM is small mining and exploration groups, many of which are based abroad but have chosen to list in the UK. Because their prospects include a significant amount of 'hope' value, such companies will represent the very highest level of risk. Equally classified as higher-risk, though as a result of different factors, are shares in overseas companies.
Household names like Volvo, Coca Cola and Johnson & Johnson are big names and big companies. The additional risk they bring for investors comes from the fact that the majority of their earnings are from overseas. So you face the added risk of changes in exchange rates. Over recent months, for example, the fall in the US$ would have had a big impact on the sterling value of dividends from US shares And when the companies you invest in are smaller ones, it's often harder to find reliable research and analysis, harder to track and compare performance, and harder to follow the news that affects the share price. True, most big UK names also trade globally, but as 'home market' companies they are well-researched, much commented upon and regularly feature in the UK business finance pages. That's not to say you shouldn't venture outside these shores - far from it - but you need to do so with your eyes open. That's why we see overseas shares as being more appropriate for investors asthey move up the experience ladder and once they've built a balanced portfolio. And it's also why, in general, we'd advise investing in market trackers and funds before moving into individual overseas shares.
By: John McElborough
What can I invest in?
ETFs offer a wide range of opportunities for investment with varying levels of risk: as at mid-December there were 45 different markets/indices to invest in, ranging from corporate bonds to the Taiwanese market. Starting at the lower end of the risk spectrum there are several corporate bond ETFs, as well as some Gilt-based investments. Moving on to the medium risk level, you can choose from global funds to ones that are more specific to individual regions, such as the US or Asia. There's also the option of investing in individual indices: 'index trackers' are available for the UK's FTSE100 and 250 Indexes, the US S&P 500, or Europe's Euro first 100 & 80, spanning the top European companies. For those wanting a higher level of risk, there are also ETFs which will give you exposure to emerging markets, such as Turkey, Korea, Taiwan and Eastern Europe. ETFs don't offer the same wide variety as unit trusts, but for investing in the countries and sectors they do cover, their charging structure and trade ability make up for this. As such, they provide a good, low cost, easily-traded route into the market, with the flexibility to move up the risk ladder as your experience and capital grows.
Finally, if you've an appetite for an even spicier approach, the London Stock Exchange also enables you to invest in commodities, through ETCs (Exchange Traded Commodities). Although like ETFs they are traded in the same way as shares, and are eligible to be held in a PEP or ISA, they do work in a completely different way. Whereas ETFs actually buy the underlying investments, ETC managers don't buy and store tons of wheat and copper, stack-up barrels of oil, or herd livestock into pens. Rather, they buy options on these commodities. As a result, ETCs are classed as more 'complex' investments by the FSA and you'll need to complete a special 'risk notice' confirming you understand the additional risks of investing in them. So take a fresh look at ETFs - you might just find they offer you more than you thought!
Funds: take your pick of the best
Unit Trusts and Open Ended Investment Companies (OEICs) are investments that let you pool your money with lots of other 'retail' investors. This money is invested on your behalf by a wide range of specialist fund managers, investing in, for example, Government gilts and bonds, commercial property and equities. Investing in funds gives you access to a highly-diversified range of investments at a reasonable cost. You will also have easy access to asset classes and international markets that would otherwise be difficult and expensive to invest in and benefit from the Fund Manager's contacts, knowledge, experience and expertise. Funds come in many shapes and sizes from 'trackers' to specialist or 'themed' funds.
An index-tracking fund (often referred to as a 'passively managed fund') aims to match or 'track' the performance of a given market index, such as the FTSE All Share or the FTSE 100. They do this using computer programs to work out how much of each individual company they need to buy and sell to mimic the performance of the Index as a whole. But not all 'tracker funds' match the Index they are tracking that well - so be sure to check their record. An 'actively managed fund' on the other hand employs researchers to study and engage with companies in which they plan to invest, and to keep abreast of the prospects for companies in which they already invest. They'll compare their performance to a 'benchmark' index related to the investment objectives of their fund, with the expectation that the extra work they put into tracking down the 'best' investments will literally pay dividends through higher growth than that of their benchmark.
Choosing your funds
When you pick your funds, be sure to rate them against other funds that fish in the same waters. Don't expect a 'value' fund and a 'growth' fund to have similar track records. Only by comparing funds with their true peers will you make a good choice. Whilst past performance should not be seen as an indication of future performance, past performance does matter when comparing like with like. Chasing winners however, is as dangerous as day-trading. Not surprisingly, all five of the top-performing funds at the end of 1999 were technology sector funds. Sector funds have a place in many a portfolio, but for the majority of investors they belong at its edges, not at its heart. An individual fund will give you a wider spread of underlying investments: by investing across a number of funds you're better able to smooth out the ups and downs of the market overall. But that won't work if it turns out that your funds hold virtually the same investments. So have a look at each fund report to see their top holdings and make sure you've got a good spread overall.
Individual Company shares
When it comes to the individual shares part of the investment model, the lowest risk entry point has always been recognised as companies in the FTSE 100. However, you should always bear in mind that the Index evolves over a period of time, changing its overall make-up. Consider, for example, that over the last 6 years technology shares have fallen out of the Index, while mining companies, on the back of booming commodity prices, have dramatically increased their presence. Yet, because of the volatility and cyclical nature of the sector, individual mining groups can't be classed as low risk. Other 'big names' have gone from the Index due to take-over activity - companies like P&O, Abbey National & BAA - all of which have to be replaced.
Today, some 80% of the make-up of the overall value of the FTSE100 comes from just 5 sectors - Banking, Mining, Oil & Gas, Pharmaceuticals, and Telecoms (fixed and mobile). So, if you're looking to the Footsie to form the bedrock of your investment in individual shares, where should you start? Companies involved in essential, everyday products and services, such as the water and electricity utilities and broad-based retailers often provide a solid backbone to any share portfolio. You could argue, however, that the classic 'defensive' nature of utilities has recently been undermined by the number of take-overs within the sector. The share prices of the remaining companies have climbed to all-time highs, potentially increasing the level of risk.
There is without doubt an appetite for the assured cash flow that utilities provide, and it's fair to say that a growing number of analysts agree it's hard to justify the current prices. Despite this, get your timing right, buying at the right price, and these sectors should still provide a strong base on which to build your individual holdings. To extend your scope, whilst still staying within a lower risk profile, your next ports of call should be into the banks, pharmaceuticals, tobacco and beverages sectors.
Move on up to the intermediate, 'medium risk' level, and you've an increasing choice, including the remaining FTSE100 companies, dominated by the mining sector. The majority of shares in the FTSE250 would also fit into this 'medium risk' category. Still relatively large companies, it is these shares that have seen some of the biggest gains over the last 3 years, helping push the 250 Index to record levels in 2006. One noticeable difference between the FTSE250 compared to the FTSE100, is that companies here generally have less international exposure. When it comes to the consideration of risk, you can play this one of two ways: some argue that having the majority of profits coming from the UK provides for less risk, while others (including us) favour having fingers in as many regions as possible.
Finally, at the higher end of the risk scale you find smaller companies and AIM quoted shares. These tend to be more volatile and less liquid than their larger cousins, factors that generally lead to wider bid/offer spreads. The AIM market has seen considerable growth over the last 10 years, partly because companies don't have to comply with the same stringent requirements of the main market.
Often, private investors don't get a look-in as part of the flotation, having to wait until the shares start trading, so do pick your time and use stop-loss limits - that early flush of success isn't always carried through. One of the fastest growing sub-sectors within AIM is small mining and exploration groups, many of which are based abroad but have chosen to list in the UK. Because their prospects include a significant amount of 'hope' value, such companies will represent the very highest level of risk. Equally classified as higher-risk, though as a result of different factors, are shares in overseas companies.
Household names like Volvo, Coca Cola and Johnson & Johnson are big names and big companies. The additional risk they bring for investors comes from the fact that the majority of their earnings are from overseas. So you face the added risk of changes in exchange rates. Over recent months, for example, the fall in the US$ would have had a big impact on the sterling value of dividends from US shares And when the companies you invest in are smaller ones, it's often harder to find reliable research and analysis, harder to track and compare performance, and harder to follow the news that affects the share price. True, most big UK names also trade globally, but as 'home market' companies they are well-researched, much commented upon and regularly feature in the UK business finance pages. That's not to say you shouldn't venture outside these shores - far from it - but you need to do so with your eyes open. That's why we see overseas shares as being more appropriate for investors asthey move up the experience ladder and once they've built a balanced portfolio. And it's also why, in general, we'd advise investing in market trackers and funds before moving into individual overseas shares.
By: John McElborough
Friday, September 26, 2008
Five Steps to Protect Your Business System From a Disaster
You never know when disaster might strike. If one happens, the first thing on your agenda as a staffing business owner or manager, after assuring the health and safety of yourself and others will probably be: "How are we going to do business?"
Individual Employee Goals Need to Be Consistent With Your Organizational Goals. Learn How To Plan Performance
Performance Planning For Managers Helpcard teaches you how to set real world goals and objectives for employees, so that each employee's work contributes to the achievement of your organization's strategic goals. And when you plan performance properly, appraisal becomes a breeze.
The lifeblood of any staffing business is information. Your client data, orders, assignments, employee information, payroll and billing data, and more. Information that's locked securely away in your software and systems, unless they are destroyed in some kind of disaster. While you can't anticipate when or if a disaster might occur, you can prepare for the possibility of such an event.
How do you get started? There are essentially five steps that must take place in order to protect your hardware and software investment from a natural disaster:
* Create a Disaster Recovery Team
* Develop a Disaster Recovery Plan
* Test the Plan
* Communicate the Plan
* Implement the Plan
Let's break these five steps down one by one to provide more specifics:
Create a Disaster Recovery Team -- Disaster preparedness and recovery is a team effort. There must be a group in place that has been briefed on what procedures and protocols to follow should an event take place. This team should be made up members from four organizational components of your firm:
* Information Technology -- the team member that is most critical to success
* Operations -- your customer liaison
* Administration -- the finance side of the business
* Management -- Buy in from the top is critical
Each member of the team is important but look to your IT representative to pull the whole plan together and make it work.
The Integrated Strategic Planning Model Helpcard maps out the entire planning process, and includes both strategic and tactical planning, and how they relate.
Learn how it all fits together -- vision, mission, roles, goal setting, and implementation.Try, Buy, Download, or purchase the printed version.
Develop a Disaster Recovery Plan -- Now that you have pulled together a team, it is time to put your plan down on paper. Remember that your plan should be flexible enough to handle different types of disasters, everything from a simple power outage all the way up to a major incident. The plan should include three phases, which are:
* Preparation phase -- what are you going to do before the event to ensure that you are ready?
* Implementation phase -- now that the event is upon us, what do we do?
* Post audit phase -- now that we have implemented our plan, what needs to change?
Input from all business unit representatives on your team is critical. While building the plan each team member should be considering three basic questions:
* What could my group do to prepare?
* What will we do to keep the business running in the event of a catastrophic situation?
* What dependencies upon other groups do I have, and have I spoken to those people about their ideas, suggestions, and concerns?
You'll probably want to gather some additional information to assist you in developing a comprehensive plan that's right for your staffing business. Then, assemble the following information:
* Organization chart showing names and positions
* Staff emergency contact information
* List of suppliers and contact numbers
* List of emergency services and contact numbers
* Operations and Administrative procedures
* Asset inventories
* IT inventories
* IT system specification
* Copies of critical software
* Communication system specification
* Copies of maintenance agreements and service level agreements
* Off-site storage procedures
Test the Plan -- Once the plan is developed and documented the next step is to test it with a dry run. This will take a detailed level of coordination among the Disaster Recovery Team members. The idea is to keep this test as realistic as possible. That may mean that it happens in the middle of the night and the group has to assemble and report into the team leader. It is better to test it when you don't need it instead of finding out at crunch time that there are holes in the plan.
After completing the test, there will surely be some modifications. These changes will be uncovered once the team has a chance to sit back and review each phase of the plan in detail. You should test your plan at least once a year and then update it as needed. Open communication is important to successfully modifying the plan so it will work for your company.
Communicate the Plan -- Now that you have a tested plan that you're confident in, don't keep it under wraps! Let your entire company know that you have a plan, that a team of representatives from each department was involved in the creation of the plan and that if disaster should strike -- you will be ready. There should be a representative from each of your business units that is responsible for communicating the plan to their peers. The plan should be well-documented, including contact information for the primary and secondary stakeholders, and then distributed to the entire company.
Don't forget that communication of your disaster plan extends to your clients, candidates, and associate employees as well. Letting them know that you have a plan in place gives them the assurance that you're thinking of the business relationship you have with them and that you will do everything possible to maintain it.
There is an added bonus to this complete and thoughtful level of communication. This will give your staff an increased feeling of confidence and preparedness. It may also encourage your staff to take this 'plan before you need it' approach in their daily work lives.
Implement the Plan -- When the time comes, don't panic, implement. You have prepared, documented and tested -- now put it into action. Remember, this event wasn't scheduled, so be as flexible as possible in a time of crisis. You have been proactive in your planning but implementation is a time to also be reactive to the current situation. Also, remember to perform a post audit after the dust settles. Constant evaluation of your plan based on what you learn will ensure that is up to date and as efficient as possible.
Each of these five steps is critical to the success of the overall goal of being prepared. Your company and your situation are unique but the guidelines detailed above offer a blueprint for preparedness should a disaster occur. With a strong plan in place before any disaster, you'll be able to get your business running with the least possible impact.
SIDEBAR: One staffing firm's Disaster Recovery Plan.
Hurricane season hit Florida hard in 2004, and Britt Landrum III, Chief Technical Officer of Landrum Staffing Services in Pensacola, knew that he was lucky to have survived without significant damage to his business. He was determined to implement a disaster recovery plan for their information systems so that he would have greater peace of mind in the future.
Britt considered setting up an offsite environment in Pensacola to house another server to support their staffing software for emergency purposes. Exploring his options to this plan, he spoke to his staffing software vendor, VCG, about housing his server in VCG's state of the art facility in Atlanta.
For his plan to work, Britt needed to have a parallel computer hardware/software environment ready on a moments notice so that his business would experience minimal interruption in the event of a disaster. VCG has a reliable history of hosting multiple environments for their customers, so they were quickly able to come up with a solution tailored for Landrum Staffing's needs.
VCG's proposal was elegantly simple. A 'snapshot' of Landrum's data (changes to the data made that day) in Florida would be made each evening and then downloaded to the server in Atlanta. The server, the staffing software, and the data would then be instantly available to Landrum's staff should they need it through a remote connection.
If you don't PLAN training for employees you are wasting time and money. Ensure training provides return on investment
Training Needs Assessment Step-By-Step Helpcard gives you the know-how to ensure that employee training fills real organizational needs. And that's the key to getting return on investment. Explained in terms any manager or HR professional can use right away.
In addition, VCG would take care of all the day-to-day management of the server in Atlanta. VCG would charge a fixed monthly rate for the disaster recovery services, just as they would for an ASP or Managed Services customer.
Britt Landrum was quick to point out that, "VCG's continuous commitment to our relationship and the way that they support their products were the driving factors behind our partnering with them on this project", said Britt. "We have a long history with VCG as clients since 1978, and they have always been there to support us when we needed them."
About VCG, Inc.
Our focus is your success. Since 1976 staffing firms have counted on VCG, Inc. for staffing software solutions that help them improve the productivity and profitability of their operations. Founded by staffing professionals and technologists intimately familiar with the business of staffing, VCG is the staffing industry's largest and most experienced dedicated staffing software development firm. VCG solutions today power hundreds of successful staffing companies and 12,000-plus staffing professionals throughout the U.S., Canada, Europe, Southeast Asia, and Australia.
For more information regarding VCG, or our WebPAS and StaffSuite products, visit VCG Staffing Software or call 800-318-4983. VCG, C-PAS, StaffSuite, TempWare-V, WebPAS, StaffSuite WorldLink, and WebPAS WorldLink are registered trademarks of VCG Inc.
By David McCullough
Individual Employee Goals Need to Be Consistent With Your Organizational Goals. Learn How To Plan Performance
Performance Planning For Managers Helpcard teaches you how to set real world goals and objectives for employees, so that each employee's work contributes to the achievement of your organization's strategic goals. And when you plan performance properly, appraisal becomes a breeze.
The lifeblood of any staffing business is information. Your client data, orders, assignments, employee information, payroll and billing data, and more. Information that's locked securely away in your software and systems, unless they are destroyed in some kind of disaster. While you can't anticipate when or if a disaster might occur, you can prepare for the possibility of such an event.
How do you get started? There are essentially five steps that must take place in order to protect your hardware and software investment from a natural disaster:
* Create a Disaster Recovery Team
* Develop a Disaster Recovery Plan
* Test the Plan
* Communicate the Plan
* Implement the Plan
Let's break these five steps down one by one to provide more specifics:
Create a Disaster Recovery Team -- Disaster preparedness and recovery is a team effort. There must be a group in place that has been briefed on what procedures and protocols to follow should an event take place. This team should be made up members from four organizational components of your firm:
* Information Technology -- the team member that is most critical to success
* Operations -- your customer liaison
* Administration -- the finance side of the business
* Management -- Buy in from the top is critical
Each member of the team is important but look to your IT representative to pull the whole plan together and make it work.
The Integrated Strategic Planning Model Helpcard maps out the entire planning process, and includes both strategic and tactical planning, and how they relate.
Learn how it all fits together -- vision, mission, roles, goal setting, and implementation.Try, Buy, Download, or purchase the printed version.
Develop a Disaster Recovery Plan -- Now that you have pulled together a team, it is time to put your plan down on paper. Remember that your plan should be flexible enough to handle different types of disasters, everything from a simple power outage all the way up to a major incident. The plan should include three phases, which are:
* Preparation phase -- what are you going to do before the event to ensure that you are ready?
* Implementation phase -- now that the event is upon us, what do we do?
* Post audit phase -- now that we have implemented our plan, what needs to change?
Input from all business unit representatives on your team is critical. While building the plan each team member should be considering three basic questions:
* What could my group do to prepare?
* What will we do to keep the business running in the event of a catastrophic situation?
* What dependencies upon other groups do I have, and have I spoken to those people about their ideas, suggestions, and concerns?
You'll probably want to gather some additional information to assist you in developing a comprehensive plan that's right for your staffing business. Then, assemble the following information:
* Organization chart showing names and positions
* Staff emergency contact information
* List of suppliers and contact numbers
* List of emergency services and contact numbers
* Operations and Administrative procedures
* Asset inventories
* IT inventories
* IT system specification
* Copies of critical software
* Communication system specification
* Copies of maintenance agreements and service level agreements
* Off-site storage procedures
Test the Plan -- Once the plan is developed and documented the next step is to test it with a dry run. This will take a detailed level of coordination among the Disaster Recovery Team members. The idea is to keep this test as realistic as possible. That may mean that it happens in the middle of the night and the group has to assemble and report into the team leader. It is better to test it when you don't need it instead of finding out at crunch time that there are holes in the plan.
After completing the test, there will surely be some modifications. These changes will be uncovered once the team has a chance to sit back and review each phase of the plan in detail. You should test your plan at least once a year and then update it as needed. Open communication is important to successfully modifying the plan so it will work for your company.
Communicate the Plan -- Now that you have a tested plan that you're confident in, don't keep it under wraps! Let your entire company know that you have a plan, that a team of representatives from each department was involved in the creation of the plan and that if disaster should strike -- you will be ready. There should be a representative from each of your business units that is responsible for communicating the plan to their peers. The plan should be well-documented, including contact information for the primary and secondary stakeholders, and then distributed to the entire company.
Don't forget that communication of your disaster plan extends to your clients, candidates, and associate employees as well. Letting them know that you have a plan in place gives them the assurance that you're thinking of the business relationship you have with them and that you will do everything possible to maintain it.
There is an added bonus to this complete and thoughtful level of communication. This will give your staff an increased feeling of confidence and preparedness. It may also encourage your staff to take this 'plan before you need it' approach in their daily work lives.
Implement the Plan -- When the time comes, don't panic, implement. You have prepared, documented and tested -- now put it into action. Remember, this event wasn't scheduled, so be as flexible as possible in a time of crisis. You have been proactive in your planning but implementation is a time to also be reactive to the current situation. Also, remember to perform a post audit after the dust settles. Constant evaluation of your plan based on what you learn will ensure that is up to date and as efficient as possible.
Each of these five steps is critical to the success of the overall goal of being prepared. Your company and your situation are unique but the guidelines detailed above offer a blueprint for preparedness should a disaster occur. With a strong plan in place before any disaster, you'll be able to get your business running with the least possible impact.
SIDEBAR: One staffing firm's Disaster Recovery Plan.
Hurricane season hit Florida hard in 2004, and Britt Landrum III, Chief Technical Officer of Landrum Staffing Services in Pensacola, knew that he was lucky to have survived without significant damage to his business. He was determined to implement a disaster recovery plan for their information systems so that he would have greater peace of mind in the future.
Britt considered setting up an offsite environment in Pensacola to house another server to support their staffing software for emergency purposes. Exploring his options to this plan, he spoke to his staffing software vendor, VCG, about housing his server in VCG's state of the art facility in Atlanta.
For his plan to work, Britt needed to have a parallel computer hardware/software environment ready on a moments notice so that his business would experience minimal interruption in the event of a disaster. VCG has a reliable history of hosting multiple environments for their customers, so they were quickly able to come up with a solution tailored for Landrum Staffing's needs.
VCG's proposal was elegantly simple. A 'snapshot' of Landrum's data (changes to the data made that day) in Florida would be made each evening and then downloaded to the server in Atlanta. The server, the staffing software, and the data would then be instantly available to Landrum's staff should they need it through a remote connection.
If you don't PLAN training for employees you are wasting time and money. Ensure training provides return on investment
Training Needs Assessment Step-By-Step Helpcard gives you the know-how to ensure that employee training fills real organizational needs. And that's the key to getting return on investment. Explained in terms any manager or HR professional can use right away.
In addition, VCG would take care of all the day-to-day management of the server in Atlanta. VCG would charge a fixed monthly rate for the disaster recovery services, just as they would for an ASP or Managed Services customer.
Britt Landrum was quick to point out that, "VCG's continuous commitment to our relationship and the way that they support their products were the driving factors behind our partnering with them on this project", said Britt. "We have a long history with VCG as clients since 1978, and they have always been there to support us when we needed them."
About VCG, Inc.
Our focus is your success. Since 1976 staffing firms have counted on VCG, Inc. for staffing software solutions that help them improve the productivity and profitability of their operations. Founded by staffing professionals and technologists intimately familiar with the business of staffing, VCG is the staffing industry's largest and most experienced dedicated staffing software development firm. VCG solutions today power hundreds of successful staffing companies and 12,000-plus staffing professionals throughout the U.S., Canada, Europe, Southeast Asia, and Australia.
For more information regarding VCG, or our WebPAS and StaffSuite products, visit VCG Staffing Software or call 800-318-4983. VCG, C-PAS, StaffSuite, TempWare-V, WebPAS, StaffSuite WorldLink, and WebPAS WorldLink are registered trademarks of VCG Inc.
By David McCullough
Subscribe to:
Posts (Atom)
Posts
