Podcasts

Talk-Commerce Tiffany Uman

Are You a Toxic Boss with Tiffany Uman

We often hear about toxic workplaces, but what about toxic bosses? As a boss or leader, your behavior and actions can significantly impact your team’s productivity, morale, and overall well-being. But how do you know if you’re a toxic boss? And more importantly, how can you fix it?

In this episode, we will dive deep into the signs and characteristics of a toxic boss. We will discuss the effects of toxic leadership on employees and the organization as a whole. We will also provide practical tips and strategies for improving your leadership style and creating a healthy work environment for your team.

Whether you’re a new or experienced leader, or just starting out this episode is a must-listen. So, grab a pen and paper, and let’s get started on the journey to becoming a better boss!

TalkCommerce-Ad-TiffUman-1
Workplace Essentials Workshop

Highlights

Tiffany is a career strategy coach and a former Fortune 500 senior director, and she is passionate about giving back and paying it forward so others don’t have to feel alone in their career. She spends a lot of time with her family and enjoys the quality moments they have together.

Tiffany: When it comes to people’s confidence and the way they value themselves, we wanna be really clear about which ones need to be taken very seriously and which ones probably need some adjustment in strategy and action steps that can actually make a current situation a lot better.

Tiffany: I think subjectivity versus objectivity is really important. Subjectivity leads to a lot of room for interpretation. Moving towards the objective is what’s going to get the best buy-in, especially when we are working with more challenging bosses or managers.

Brent: I know one thing, and it’s that everybody should have a number.

Tiffany: I agree, and I think that key performance indicators are really essential to help you track your own progression as well.

When you don’t have a proper baseline to go off of, it’s much easier to move the goalpost and say you didn’t achieve this, and you don’t know what you’re supposed to achieve. It’s still subjective and surface level, and so it leads to stagnation and frustration for the employee. It’s not actually quantifiable enough in the feedback or metric driven.

If your manager or boss tends to stay very surface level in their answers, try to get more specificity. If they use a condescending tone, try to explain why you don’t understand what they’re trying to say.

Tiffany: When a manager doesn’t make it clear what they want, the employee feels bad and insecure. To counter this, the manager should explain what they want and how they want it done, and the employee should be able to see the other side of the coin.

Brent: I can relate to the fact that sometimes I’m a visionary in assuming that everybody else understands what I would like out of something, and then I get frustrated in the fact that they didn’t understand what I wanted to get out of it.

Brent and Tiffany discuss how to motivate people to achieve their goals, including writing out, creating clear goals, and making sure that everybody is tracking them. They also discuss the importance of sharing the vision and why their involvement in the vision is so critical.

Tiffany: Managing expectations is about knowing what the vision means for you and your colleagues, and mobilizing your people in the right way.

Tiffany: It doesn’t always have to be you that gives those action steps, it could be a collaborative effort. It could be like, this is the vision that I want us to achieve, let’s talk about some strategy.

Brent: When something goes wrong with a client’s website, a boss can either help or hinder the situation. I was a very poor crisis boss, and I try to avoid “shoulding” on people. When in a crisis, you as the leader should be looking at the solution, let’s work together to find ways to move past this and be proactive. This means having processes in place, and different types of mechanisms that will help should things end up going sour.

In those actual moments when it happens, you want to be able to motivate your team and stay calm and level-headed. Try to look at the crisis from an objective point of view and act on the things you can control.

Tiffany: I think the most important thing is to get people’s involvement, without falling into a dictatorship of you gotta do this, or you should do this, or why don’t you do that. And then you as a leader have to take responsibility for it if it goes wrong.

When a leader says you should do this, and it didn’t work. Then the person who did it screws up, and suddenly we’ve thrown them under the bus for doing it wrong, I think as a leader you must take on that responsibility and then not shift the blame to anybody else.

Tiffany: A lot of companies and teams almost discount that importance where it’s okay, just to move on to the next thing. We don’t actually analyze enough what went wrong that led to that crisis. But taking ownership as the leader, as the boss honestly brings more respect than anything else.

Brent: We talk about having a feedback loop and having the ability for employees to talk to their boss. One lady said her boss would give her 30 minutes every other week to bitch and complain.

Tiffany: I definitely think leaders should lead by example, and encourage others to do the same. However, it’s important to be cautious when using openness to share and vent, especially with senior leaders who are often important decision-makers around internal movement.

If employees get the sense that you can speak about people in a certain way, they will feel more comfortable sharing. But I think there is a reason why a lot of companies don’t necessarily have those types of platforms available.

Brent: To fill out the surveys, right?

Tiffany: To learn more about them, to know something a little bit about them, to understand how they think things might play out in this current work setting.

I think anonymity as you said, is really important. It’s not the type of thing that changes overnight, but the baby steps that are going to help people feel more open to sharing feedback.

Tiffany: HR is normally the person that employees feel comfortable going to with any sort of complaint, but it depends on the type of organizational culture. If you have a complaint, bring it forward, but pair it with a solution. This helps them already get the ball rolling, and it becomes much more collaborative and well-received at the end of HR.

Tiffany: Maybe it’s worth considering versus seeing it just as negativity coming to their door, and I’m part of a community where often people have a complaint about the community without a solution.

Tiffany: It’s so easy for people to complain about something, but they’re the last to share a solution. I think that is a skill that needs to be developed.

Tiffany: Strength for you in the workplace especially, and as you grow and are exposed to senior leaders as well, they’re going to expect that of you. Take ownership of what can be done to be improved.

Tiffany: When people feel heard and understood, they start speaking with you at a different level of understanding than something that’s more authoritative alone in nature. This helps whatever strategies, and recommendations elements you bring forward to be so much better received.

Tiffany: Take the time to understand so that when you bring forward suggestions and solutions, you’re already integrating those pain points. This will help build up a lot of trust and a lot of rapport faster.

Tiffany: A little bit of anticipation factor as well as the realization that if we don’t actually fix this, it can lead to X, Y, Z. So it’s your responsibility to bring those points forward in those conversations, to help resolve it, to help move things in the right direction.

Employee turnover has been a big thing in the last couple of years. Is there a way through exit interviews or other ways to figure out why are people leaving?

Tiffany suggests that when you’re onboarding team members, really take the time to understand what motivates them, and what gets them excited to come to work, and then help them do work that feeds into that direction, you’ll have a lot less turnover.

Tiffany: You constantly have conversations with them. If there are tough times in the organization, check in with them regularly, help them feel supported, and let them know that you’re there with them and that they’re not alone.

Tiffany: Maybe a different opportunity came their way that they were so passionate about, and perhaps the progress they were seeing internally wasn’t what they wanted. But by having these types of conversations more actively, you can avoid this situation.

Tiffany: I think the employee review process should cover a little of that, but I don’t limit it to that. Having a more continuous dialogue with your team is another aspect that I’m a big believer in, and that might be a reflection of your boss.

If your boss doesn’t understand your job, it is your responsibility to build your own track record and bring forward the evolution that you are showcasing in your role. It could be impromptu, pre-prep for a certain eval, or something that you are prompting more in an ongoing way.

Brent: Communicate in a way that helps them to understand.

Tiffany: Show them the importance of certain elements of your work and why it plays into the bigger picture, and they understand at least the value that you play. One approach is to write things out for them, or share something more visually that they can follow along with you, and that helps them see the scope of the complexity that something takes or the level of diligence that’s required.

Tiffany is hosting a Free Workplace Essentials workshop that will help you navigate workplace dynamics fairly effectively and activate your most successful self. If you’re open to joining again, the workshop is on March 22nd at 12:00 PM EST.

Brent: I have a lot of different free resources as well, Tiffany. One of them is a LinkedIn learning course, a nano course all around answering common interview questions, and if people want a little bit of one-on-one action time with me in terms of a workshop.

Transcript

[00:03:54] Brent: Welcome to Talk Commerce. Today I have Tiffany Uman. Tiffany is a career coach. Tiffany, go ahead and introduce yourself. Tell us about your day-to-day role and maybe one of your passions in life. 

[00:04:05] Tiffany: Sure. Thanks so much for having me, Brent. Really happy to be here. So I am a career strategy coach. I focus on empowering high achievers.

[00:04:14] Tiffany: To become the top 1% in their career, really fast, track their success and start becoming very much fast tracked in their promotions, raises, job opportunities, and ultimately filling in a lot of the gaps that school never teaches us. Formerly from becoming a career strategy coach, I was a former Fortune 500 senior director in the Fortune 500 space, so a lot of firsthand learnings.

[00:04:40] Tiffany: Fuel into my coaching practice today, and I’m very passionate about giving back and paying it forward so others don’t have to feel alone in their career. And what it takes to really become that top 1% something that I am, I’m really passionate about. I’d say definitely my family when I’m not working, I’m definitely spending a lot of time with them and soaking up the quality moments that we have together brings a lot of light into my life.

[00:05:03] Tiffany: So I, I’m definitely prioritizing that more and more. 

[00:05:07] Brent: That’s awesome. So we met because one of my employees sent me a link that you had done an Instagram link and I thought it was very good. 

[00:05:16] Brent: But but we did want to talk about bad bosses and I thought I guess I was a little bit encouraged that an employee would send me something about a bad boss tell us some of the toxicity that can come with bad bosses. 

[00:05:30] Tiffany: Oh yes. Unfortunately it’s a little bit too prevalent.

[00:05:34] Tiffany: I’ve heard a lot of horror stories over the last few years alone, and I’ve definitely experienced some very challenging moments myself. I’ve had great bosses, I’ve had not so great bosses, and I really feel for people going through some of those darker moments because it can really take a toll, to your point, Brent, it can impact your confidence, your self-esteem, your self.

[00:05:56] Tiffany: How you view your capabilities and what your abilities are. And I think bad bosses, toxic bosses, that word is thrown a lot around a lot, and there is a really important distinction around, a true toxicity driven boss versus maybe just having. A clash of leadership style versus what you need as an employee to be best supported.

[00:06:17] Tiffany: So that is a really important distinction because when it’s really talking about people’s confidence and the way they value themselves, we wanna be really clear about, which ones need to be taken very seriously, especially when it comes to wellbeing and mental health, and which ones probably need some adjustment in strategy and action steps that can actually make a current situation a lot.

[00:06:39] Tiffany: Better. But we see things from, micromanagement to nepotism, to favoritism, to down, talking to, throwing under the bus, not looking out for your best interest as their employee really yelling at you or just being really mean and embarrassing in, in many work moments.

[00:06:59] Tiffany: The list goes on. There could be also very unethical behavior. I’ve certainly. Supported quite a few of my clients with those types of really unfortunate circumstances around harassment. Things that have taken a turn, for the worst in those moments. So I never want anybody to feel alone going through that because there is hope, there is light at the end of this, but often we need that kind of support in an objective way to help you get to the other.

[00:07:25] Brent: Yeah. You bring up a lot of good points about the how you interact with your subordinates and how your subordinates theoretically should interact with you as the boss. . I know that laughter in the workplaces of value and we talked about. The free joke project, which I completely forgot when we did our interest.

[00:07:44] Brent: So waiting up front. Yeah, I’m sorry. We’re gonna pause. Take 30 seconds and I’m gonna tell you a joke. And we decided if this joke should be toxic or not. So it could be the toxic joke project and I don’t have any toxic jokes. They’re all dad jokes, I apologize. We’re just gonna take 30 seconds.

[00:08:00] Brent: I’m gonna tell you the joke. All you have to do is tell me if you feel that joke should be free, or if someday we should charge for it. And it’s an easy one. Okay? We had a contest at work for the best neckwear. It was a tie. . Yeah I agree. We had to get it out of the way cause, but up bum . Yes.

[00:08:21] Brent: Yeah. I’m sorry. I like it. Delivery was a very poor on that one. Alright, so let’s, it’s okay. I like 

[00:08:26] Tiffany: it. It’s clever. I don’t see anything particularly wrong with that joke. . 

[00:08:31] Brent: Yeah. Yeah, it’s I won’t make any more. I was gonna make a bunch of puns cuz I’m also good at that, but I 

[00:08:36] Tiffany: won’t do that.

[00:08:36] Tiffany: Yeah I was saying that’s a good pun. a good play on words for sure. . 

[00:08:40] Brent: Alright let’s just talk with let’s come back to the toxic boss and talk about how. You mentioned throwing under the bus. You mentioned not supporting you playing favoritism. , a lot of those things really work against having a great team.

[00:08:57] Brent: And Oh yeah. I know that I’ve been in situations where somebody leaves and then all of a sudden that person is the worst person in the world. Or if there’s somebody that you know is in a company and you as the boss are saying bad things about that person . Talk a little bit about the differences between.

[00:09:15] Brent: say subjective things you’re saying about somebody and being objective in terms of how you would like to that person to improve. Oh 

[00:09:24] Tiffany: yeah. I think the subjectivity versus objectivity is a really important one because, subjectivity leads a lot of room for interpretation. What’s really actionable there?

[00:09:34] Tiffany: What is actually founded in something that has some weight to it? When it comes to whether it’s feedback, whether it’s improving in a certain situation, I definitely tend to recommend moving towards objective because that’s what’s gonna get the best buy-in. It doesn’t seem like it’s emotionally driven.

[00:09:53] Tiffany: It doesn’t seem like it’s just based off of feeling, but rather something that’s going to help move the situation. Forward, and I think that’s really important, especially when we are working with more challenging bosses or managers. You don’t wanna stay in that emotional subjective. Likely going to backfire.

[00:10:10] Tiffany: We need to be able to move into more of an objective lens and dialogue that’s going to help your case and at least put some cards on your side to see if this is a relationship that’s worth, that’s able to be improved and salvaged. . 

[00:10:24] Brent: Yeah, I know one thing. So I’m a big believer in EOS entrepreneurial operating system, and in that framework we have a scorecard that, and the kind of the rule is, or not the rule, but best practice is that everybody should have a number.

[00:10:37] Brent: And a lot of people look at that. Maybe employees would look at that as saying, Hey, I’m only a number. . But I think that, that gives you an objective way of measuring your perform. and it also gives your boss a way of saying, Hey, here’s some objectives that we would like to achieve. Here’s the data that helps us to determine if we’re being successful in that or not.

[00:10:56] Brent: . And it doesn’t have to necessarily be bad. It could be something that points to something else that says, I wasn’t able to achieve my number because of blah, blah, blah, or, but I think it’s a great starting point to have something concrete to look at, to measure how well you’re 

[00:11:11] Tiffany: doing. . Oh, a hundred percent.

[00:11:13] Tiffany: Yeah. Key performance indicators are really essential. Otherwise, how can you hold yourself accountable? Your boss can’t really hold you accountable otherwise and these are really critical to help you track your own progression as well. If goals, objectives are very surface level, are very qualitative only, it’s going to lead to a little bit of messy waters ahead.

[00:11:34] Tiffany: I can say it like that because you don’t really have a proper baseline to go off of. To your point, Brent, when you’ve got those numbers, when you’ve got those types of metrics, To use as a bit of a guideline. Now you know what your targets are and now you know what kind of room you have for improvement and you can use that to your advantage if you’re, really intentional and strategic about it.

[00:11:56] Brent: Yeah. And I think you as an employee are more comfortable when you know where the playing field is and the goalpost isn’t getting moved. Oh, yeah. In the subjectivity. And when it’s subjective, it’s much easier to move the goalpost and say you didn’t achieve this. . . And you don’t know what you’re supposed to achieve.

[00:12:12] Tiffany: Exactly. Exactly. I’ve seen it a lot, right? I’ve seen it happen a lot where, someone will have a conversation with their boss. They’ll say, yeah, you’re on your way to your next step. We just need to see this. They work on that and it’s such a surface level type of thing. So they think they’re doing what they need to do, and then sure enough, they have another conversation a little while later and their boss throws in something else in the mix being like, no we also still need you to do this.

[00:12:36] Tiffany: And it’s still very subjective and surface level, and so it leads you to stay in your positions a lot longer than needed. It creates a lot of stagnation and frustration for the employee because they’re trying to follow suit on what feedback they’re being given. But the issue there is that it’s not actually quantifiable enough in the feedback or metric driven that will allow them to have a better sense of accountability to drive their progression forward as well.

[00:13:03] Tiffany: So if you have a manager or a boss who just tends to stay very surface level in their answers giving you a little bit of direction, but not enough that you can really sink your teeth into, that’s likely a, a big watch out that you wanna try to get more specificity. , what 

[00:13:19] Brent: about when you consistently hear your boss say, I was very clear in what I was trying to say, and, but nobody is clear in what they’re trying to say.

[00:13:31] Brent: , how from and this is, I suppose more for the for the manager or the boss to help them understand why they’re not clear. . Yeah. Just I’m a big proponent of simply putting it in writing and saying, this is what we’re trying to do. Yeah. Rather than just stating it. , and.

[00:13:49] Brent: Look, comment on that. I’m so clear that, why don’t you understand 

[00:13:52] Tiffany: what I’m saying? Oh, yeah. And it could also depend on the tone, right? Are they using like a condescending tone on top of it when they’re telling you that of I was very clear in what I said. I don’t understand why you don’t get it.

[00:14:02] Tiffany: Like that again is really making the employee feel very bad and insecure in that moment of, okay, maybe I am missing something, maybe. Me when it could absolutely be the onus of the manager, but they’re projecting that onto their employees as if they’re doing something wrong. But the big thing here is a lot of managers, because they are so distant from the day-to-day work or the execution, let’s say that their team is handling, they might say something, thinking that it is super clear, but there’s other flares to this, other facets to it that they don’t have as.

[00:14:33] Tiffany: They don’t have as much connection to anymore. So for them it sounds very obvious what they’re asking, but the employee who’s the one that’s actually doing it is hang on a second. That’s actually not very clear, because in order to do what I think you’re asking, it actually involves X, Y, Z and you’re not mentioning X, Y, Z.

[00:14:50] Tiffany: So a good way to counter that is the employees, to help them see the other side of that coin, right? You could of course, give them feedback on maybe how they’re actually delivering. The message if that’s where the issue lies. But if it’s more around a disconnect between what they think they’re sharing with you and what actually needs to get done, you need to be able to close that gap of saying, I understand.

[00:15:13] Tiffany: That you want us to work towards, fill in the blank. In order to do that though, there is a piece that you haven’t mentioned, and I believe that’s where the confusion is coming from. And then share more around that part so they understand where you’re coming from, and you could find a middle ground to move forward more effectively than stay in this limbo state of confusion and disarray.

[00:15:34] Brent: Yeah, I can relate to the fact that so I’m in a visionary and oftentimes there’s 4 million things going in my head, and I’m assuming that everybody else understands what I would like out of something, right? Yeah. And that assumption is not met because they’re not doing it. And then I get frustrated.

[00:15:52] Brent: , I’m gonna use past tenses because I’m hoping I’m doing better. I would get frustrated in the fact that they didn’t understand what I wanted to get out of it, even though. They should have, I, put me putting some projection or whatever that on the other person is often a problem in the sense that I’m, my expectation is, you know everything I know, right?

[00:16:13] Brent: Yeah. And that you can just go ahead and do it, and I don’t have to give you much direction. All you have to do is do it. Yeah. And then if you don’t. , I’ll get a little bit frustrated in that. And yeah, it, for me it’s vis I’m very visible. When I’m frustrated. You can see it right. On Zoom even. Yeah.

[00:16:28] Brent: Again I think it probably comes down to writing it out and creating some clear goals. Yeah. And making sure that everybody’s tracking those. Yeah, that’s 

[00:16:37] Tiffany: a big part of it. And I would also add to manage, expect. There’s nothing wrong with being visionary. I think that’s what’s really gonna inspire people, especially if you’re really passionate about it and you’re sharing it in a way where they could feel your excitement.

[00:16:50] Tiffany: They can feel like this could be something amazing that they get to be a part of, but to really get their buy-in. Yes. It’s part around sharing the vision. , but also, why their involvement in that vision is so critical. And to help break down more of the action steps that’s gonna help deliver on that.

[00:17:06] Tiffany: And that’s what I mean by managing expectations, because it’s one thing to get the vision, but then, okay, what does that actually mean for me as this particular employer? What does that mean for my colleague who’s also working on this? And it will help you as that manager and the leader to know that you’re mobilizing your people in the right way.

[00:17:22] Tiffany: And it doesn’t always have to be you. Necessarily being the one giving those action steps. It could be like a collaborative effort. It could be like, Hey, this is the vision that, I want us to achieve. Let’s have a conversation around some strategy that will help us get there, or some goals that will help be be good milestone indicators.

[00:17:40] Tiffany: Towards the end outcome, as an example. So there’s ways of doing it that makes it a little bit more tangible without taking away you as a visionary, because that’s probably what makes you and what can make someone really a great boss and leader. 

[00:17:54] Brent: I want to talk a little bit about crisis and how a boss can either help or hinder in a crisis.

[00:18:02] Brent: And I’m gonna again, share my own personal experience on how. I can now look back and see. I was a very poor crisis boss. When something happens and, let’s just say in the software, in industry, something is going wrong with the client’s website and you as the boss are were disconnected from the day-to-day actions of whatever is happening in that project.

[00:18:28] Brent: You’re asked to come in to try to help and solve something. And I used to, and I’m I’m hoping I don’t do this anymore, but I used to immediately start doing the shoulds. And in EO Entrepreneurs’ organization, we have this thing called we don’t should on anybody. We try to share our own experience rather than shoulding on people.

[00:18:46] Brent: And as I look back at my, myself, my previous self, in the last 10 years, even I can remember how many times that I entered a stressful time. And instead of being a good coach or a mentor or in somebody to try to help somebody move forward, I started saying, I’m so disappointed in this team. I, you should have done this.

[00:19:10] Brent: Why didn’t we do that? When, at that time of crisis, you as the leader should be looking at, and I just used the word, should I should have been doing things. , let’s find the solution. Let’s work together to find ways to move past this or whatever. Yeah. To talk a little bit about how a leader can come in and either be a hindrance or a big asset in that type of situation.

[00:19:32] Tiffany: It’s such a great point, Brent. There’s a few things that come to mind. I’ll say, as a starting point when it comes to crisis manage. being proactive is going to help so much. What I mean by this is you almost wanna be ready for the crisis before it even happens. You don’t want to necessarily be in crisis mode to start coming up with strategy backup plans and spread the team a little bit thin when they’re already likely a little bit stressed about what’s going on.

[00:20:00] Tiffany: So that level of anticipation as a leader and a boss can be really helpful of, know. When times are good, that’s actually a good time to have things in place, have processes different types of mechanisms that will help should things, end up going sour a little bit later on.

[00:20:17] Tiffany: But in those actual moments when it happens, I the key is obviously, You wanna be able to still motivate your team during that time of challenge because that’s where a lot of their light can shine through of how they rise above in a very difficult occasion. And yes, I’m with you on the should.

[00:20:35] Tiffany: It’s sometimes tempting to say of you should just do this, or, why didn’t we think of that and get a little bit accusatory, but that’s probably very counterproductive in those moments. When the crisis is happening, obviously trying to stay calm and levelheaded and more solution focused and really putting on that problem solver hat is going to be key because that’s gonna show that you’re leading by example of saying, okay, look, let’s, bring our heads together.

[00:20:58] Tiffany: This is obviously not an ideal situation, but getting overly stressed and worked up is probably only gonna make matters worse. So let’s, try to keep calm and look at this from as an objective. Point of view as possible. What are things that are in our control that we can actually action right now?

[00:21:15] Tiffany: And then get people’s involvement so they feel okay, I have a voice in this. I am being valued in what my contributions are without it falling into a little bit of that dictatorship of you gotta do this, or you should do this, or, why don’t you do that? And that’s will probably make them feel even worse in an already very difficult situation.

[00:21:33] Brent: Yeah. And I, there is a balance there because I can think of, I maybe I’ve swayed sometimes the opposite direction where all I’m doing is sharing my experience and hoping that somebody gleans something off of that. Where sometimes in a crisis you do need a leader that says, go this way. Do these things.

[00:21:52] Brent: Let’s just, let’s head down this. and then it’s of course on me as the leader to take responsibility for it. I think that’s the second part of that is , you as a leader, say, here’s the direction we’re gonna take. We’re gonna solve it this way, and I’m taking responsibility. If it goes wrong, right?

[00:22:07] Brent: Oh, yeah. Because the other side to that is, if you as a leader say You should do this, and that should didn’t work, and then the person who did it screws up and then suddenly, like you said earlier, we’ve thrown them under the bus for doing it wrong. . I think as a leader, absolutely. Taking it taking on that responsibility and then not shifting the blame to anybody else.

[00:22:29] Brent: At the end of the day, you as the owner or the ceo, are ultimately responsible for everything that happens. . Yeah. And certainly a one off or a two off could be your team, but a three off, a four off and a 10 off is usually a management problem or a leadership problem. 

[00:22:46] Tiffany: It’s so true. It’s so true.

[00:22:48] Tiffany: Being able to take that ownership. And that’s a really great way to inspire your team as well if they can see that, hey, Brent is, not afraid to say, this was the wrong decision, or, maybe we should have taken a different direction. Often those postmortem learnings are just as important as the learnings throughout the process.

[00:23:05] Tiffany: And a lot of, companies and teams almost discount that importance where it’s okay, just onto the next thing. Or we don’t actually analyze enough what went wrong that led to that crisis. We can prevent it happening another time. So tho those elements are really important because there’s a lot of gold that can come from those types of learnings and retrospective on, what might have happened and how to serve up differently moving forward.

[00:23:30] Tiffany: But taking the ownership as the leader, as the boss honestly brings a lot more respect than anything else. If you are the type of boss that’s gonna just blame it on your team. Shame on you as the boss because you’re still their boss and you let that happen. So it’s just gonna backfire either way if you try to almost brush it onto your team members, when at the end of the day, you’re the one that made the decision.

[00:23:51] Tiffany: You’re the one that helped guided things in that way, and you have to take some level of responsibility if not a full part of that responsibility. 

[00:24:00] Brent: We talk you talk about having a feedback loop and having an ability for. The having a safe place for employees to be able to talk to their boss.

[00:24:11] Brent: I, I did an interview a couple of months ago where a lady who was a VP said that her, the owner of the company would give her 30 minutes every other week to simply bitch and complain about what’s wrong at work without any feedback. No problem solving, just listening. How would you recommend a, an owner open up that channel and make people feel comfortable doing that?

[00:24:42] Tiffany: Definitely leading by example. If they can show that, they’re open to doing it and encourage others to do it, that. It starts there because this is something that trickles down from leadership. I love that example because I don’t think we see enough companies doing that there.

[00:24:56] Tiffany: There’s always kind of two sides to that coin too, right? As much as we might feel, okay, there’s an openness to share and vent, it’s also sometimes begs the question, will this somehow backfire or will this get back to someone? You don’t wanna necessarily use that opening as a way to bash other people or throw your boss under the bus or, say really bad things about other individuals, because I think that’s just a testament to your character as well, and how you wanna present yourself in a professional setting.

[00:25:24] Tiffany: I don’t think there’s anything wrong though about fostering a feedback culture around. Weights that things can be improved, maybe around more processes, inefficiencies, things like that. But I could see a little bit of delicacy in how open people are in those settings, especially with senior leaders who are often important decision makers around internal movement.

[00:25:45] Tiffany: If they get the sense that, you can speak about people in a certain way. So the intention is good because of course, Employees are thinking this and they wanna be able to create that environment where they feel comfortable sharing. But I think there’s a reason why a lot of companies don’t necessarily have those types of platforms available because of.

[00:26:04] Tiffany: Will people truly be as transparent? Maybe yes, maybe no. A lot of organizations choose to have more of these anonymous surveys where they can actually collect information and get a better sense of where problems are and where people feel more comfortable sharing because it is anonymous. So if there is an a anonym anonymity to the type of platform and sharing that will probably help go a long way in the openness of what people are willing to share.

[00:26:29] Brent: Yeah. We used a system called Office Vibe that allow you, that allowed you to put in anonymous feedback and there was a number of questions that came out every week. Yeah. I found when I was managing it, I found it hard to often get everybody or main, make sure everybody stayed engaged in it, if we had a hundred people, you would slowly see that engagement rate drop down unless you went back and encourage people to.

[00:26:55] Brent: To fill out the surveys, right? Yeah. I can also share that six months ago I started doing the ask me anything you want and nobody took me up on it. I’ll correct myself. I think out of six months, in about 200 meetings, I probably had had three people who just had that, who wanted to use that 15 minutes to vent.

[00:27:19] Brent: Yeah. And most of the time people wanted to just tell me about their jobs and Yeah. My, I was trying, my goal was to learn more about them, and I would steer them towards how is your family, how many kids do you have? Blah, blah, blah. Cause you, at some point you can’t know everybody on the team, that and I was trying to just know something a little bit about somebody. I can see that. . Yeah, I can I see where you’re saying, I, I can definitely understand what you’re saying about it could get off the rails. 

[00:27:47] Tiffany: It can, and it might not even be anything to do with you as an example, Brent.

[00:27:51] Tiffany: It could be maybe a past experience that they had that didn’t play out very well. So now they’ve got a bit of a guard up. Of how things might play out in this current work setting, as an example. So it’s always good to come from a place. I think the anonymity, like you said, is really important.

[00:28:06] Tiffany: There’s gonna be the people who choose to take you up on it, who are really eager to fill feedback. Others that might feel like I don’t feel like if I say anything, it’s gonna change anything. So I’m just not gonna say anything at all, which is a little unfortunate, but that’s probably being trickled down by the leadership that’s making them feel that their voice doesn’t matter and that’s a bigger problem.

[00:28:25] Tiffany: So there, there’s different nuances here to play into all of this, but I am still a very big advocate of trying to foster feedback in a way that will work for a specific individual. Company’s culture because that’s where it starts. The more that this becomes second nature, the more that it becomes a habit is going to help, employees really feel a lot more comfortable sharing.

[00:28:45] Tiffany: And this is something that, I had done and been part of in my corporate work. And it, it made a big changes in a good way of allowing people to feel more open to share feedback, whereas prior, it wasn’t something that was actively welcome. So it’s not the type of thing that changes overnight, but the baby steps that.

[00:29:02] Tiffany: If it’s something that is, walking the walk and talking the talk from a leadership standpoint with time, it will move things in the right direction. 

[00:29:11] Brent: Is the HR person that person who should be open to listening to any sort of complaint? Is there somebody in the company that anybody should feel comfortable with?

[00:29:22] Brent: If they have some huge concern or gripe? 

[00:29:27] Tiffany: Technically, yes. HR is normally that entity that will do that and be that, that sounding board. Will that always be the case? Not necessarily. I’ve certainly heard and seen a lot of stories where HR wasn’t necessarily the one that helped in that situation, but I’ve seen situations where they absolutely have.

[00:29:48] Tiffany: So I, I think it really depends on the type of organizational culture. But generally, because a HR plays a pretty pivotal role in, employee development and growth and enablement internally, they normally are quite a good. Type of department to get on your side and bring these types of topics forward.

[00:30:07] Tiffany: Especially if you’re bringing it in a way where there’s opportunity for improvement. It’s not just coming to complaint. I think that’s could be a really big pet peeve for someone in HR where they’re just hearing complaint after complaint, but no solutions. So I’m a big believer of, okay, if you have a complaint, bring it forward.

[00:30:25] Tiffany: but pair it with an with a solution, help them already get the ball rolling. You’re, if you’re the one feeling this particular challenge, you probably also have a sense of what can change to make it better, and at least bring that part to the conversation as well. So it becomes much more collaborative and well received on the end of HR to say, okay, you know what?

[00:30:45] Tiffany: They actually have a good point. Maybe, that’s something that is worth considering versus seeing it just as negativity coming to 

[00:30:51] Brent: their door. . Yeah. And I’m that applies to almost every situation in life. And I’m part of a community or a bunch of, a number of communities, and oftentimes people in the Comu community have a complaint about the community without a solution.

[00:31:06] Brent: And for me, that’s, that is you’re gonna complain about this, but you don’t have anything that you would like to add to it. It’s kinda like you want to chisel it down, but you don’t want to Oh, yeah. Help 

[00:31:17] Tiffany: repair it. So easy for people to do that. You’re so right, Brendan. All, I think we could all relate in with people in our lives who are very quick to complain about something, to bring something down, that yet they’re the last person that will actually share a solution, right?

[00:31:32] Tiffany: It’s okay, what are you gonna do about it? And then their face goes blank, right? They’re not ready for that, but they’re ready to openly share what’s not working. So I think that is definitely a skill that needs to be developed. But adopting that problem solving mindset is a real.

[00:31:48] Tiffany: Strength for you in the workplace especially, and as you grow and be and are more exposed with senior leaders as well, they’re gonna expect that of you, right? They’re gonna expect that it’s not just about bringing problems forward. You have to be already taking some ownership on what can be done to be improved.

[00:32:05] Brent: How about the word empathy? As a leader, how important is that? 

[00:32:10] Tiffany: Oh my gosh, friends, huge. Huge. I can tell you I am a huge advocate of empathy. Especially in leadership styles it really moves mountains. It’s definitely not as prominent as it should be, and is something that can make mountains move like in a beautiful way in a workplace setting.

[00:32:32] Tiffany: When people feel heard and understood and really identified with you, you start speaking with them in such a different level of understanding than something that’s more authoritative alone in nature. When people feel like they are on the same page, that you are understanding where they’re coming from and really listening with them to understand them, it’s going to help whatever strategies, recommendations elements that you bring forward to be so much better received because it’s coming from a place of really tapping into those insights, right?

[00:33:05] Tiffany: I say this, as like a new boss as an example. If you’re starting on a team, Whether as a first time people manager or just a new boss on a team, take the time to really speak with your team members, understand where are the pain points, where are things that have been challenges for them?

[00:33:20] Tiffany: Really take that time to understand so that when you bring forward suggestions and solutions, you’re already integrating those pain points so that they’re gonna be like, oh my gosh, where was this strategy, a year ago or six months ago? And it’s going to help build up a lot of trust and a lot of rapport a lot faster.

[00:33:39] Tiffany: So I’m huge believer in empathy as a very effective leadership style and integrated in how you manage your teams for success. 

[00:33:49] Brent: You’ve mentioned, take the time to speak and listen. What if, so as an employee, what if you are in a meeting? and your boss is telling you the same thing that, that to solve a problem that’s been happening for a year, let’s say, or two years or something like that, and then he or she starts discounting the problem saying, it’s not really a problem, let’s just sweep it under the rug and move on.

[00:34:16] Tiffany: Oh yes. In those moments, it’s really key to. Let them know that it’s not something that should be discounted. That could be done by sharing facts or data as to maybe the gravity of keeping that unresolved. It could be showing that this has already created quite a few consequences on the business results.

[00:34:36] Tiffany: It could also be sharing, if we don’t actually fix this, it can lead to X, y, Z. So a little bit of that anticipation factor as well. But also because sometimes they might not realize, How significant of an issue it is they might be, again, at a bit more of a bird’s eye view. So I’m like, oh, it’s not really as much of a problem, or we probably don’t need to fix that.

[00:34:56] Tiffany: But by not fixing that, it’s gonna create a much. Much worse ripple effect that will then bite them afterwards. So as the employee, maybe even as the manager of that team, it really is your responsibility to bring those points forward in those conversations, to help resolve it, to help move things in the right direction.

[00:35:15] Tiffany: Help them understand that by making a change here, there’s actually a big benefit in doing that and here’s why. And help them see what that is, versus just leaving it untouched and hoping for the best, which will probably really work against them. 

[00:35:31] Brent: The employee turnover has been such a big thing now in the last couple years.

[00:35:35] Brent: Yeah. And it’s only gotten worse if you’ve consistently had ploy turnover or. You’re seeing it more and more. Is there a way through exit interviews or other ways to figure out why are people leaving? And if they’re if they’re there for a year, if you can, I know you, you pointed out to data and I’m a firm believer in data.

[00:35:57] Brent: Yeah. If you can determine they’re there for six months and then they leave or they’re there for a year, then they leave and nobody else has ever been here longer than two years, is what is the issue there? Where can we try to dig in and figure out. And try to solve that employee turnover 

[00:36:11] Tiffany: problem.

[00:36:12] Tiffany: Yeah, it’s a great point, Brent. I’m not a opposed to exit interviews, but I do believe that they’re a little bit too late in the game. That’s the point where they’ve already made their decision to leave and we’re not early enough in the process to avoid getting to that point. A much more important thing to do would be almost like, Intro interviews and I don’t treat it that way with my clients, but it’s more around, when you’re onboarding team members, when you’re welcoming new people, really take the time to understand what motivates them, what gets them excited to come to work.

[00:36:46] Tiffany: Really, again, empathy, understand, identify with your employees because if you know that very early on and you are helping them do work and have a role that feeds into that directly you’re gonna have a lot less turnover. I can tell you, I, I was case in point of this with my teams, I had hardly any turnover.

[00:37:05] Tiffany: The only turnover I had was people moving on to different teams because they were getting promoted, which was more of a reflection of their progress they were making. There’s something to be said about really taking the time to understand. What drives your team members so that you constantly have a pulse and it’s not just a one-time thing.

[00:37:21] Tiffany: You constantly have conversations. Check in with them. Be in touch with them. See if you’re recognizing changes in their behavior that might prompt something about their happiness level, their motivation level. Don’t just ignore it. And be like, ah, it’s probably just tough times right now. If there’s tough times in the organization, that’s all the more important to check in with them regularly, help them feel supported, help them know that you’re there with them, that they’re not alone.

[00:37:46] Tiffany: And that’s going to help alleviate a lot of need for exit interviews because there won’t be so many people leaving the organization. They’re gonna feel really well taken care of. Of course, there’s always gonna be circumstances that what might leave someone to leave could be personal circumstances.

[00:37:59] Tiffany: Maybe it’s, a different opportunity that came their way that. They really just were so passionate about, and perhaps the progress they were seeing internally wasn’t what they wanted. But I guarantee by having these types of conversations more actively, it’s going to get to the root of the situation before waiting till exit interviews and this entire exodus of, turnover of what’s happening, what is going on here?

[00:38:23] Tiffany: Ole didn’t realize, oh, there’s probably things we should have been doing. Earlier on in our onboarding or follow through with employee development, that would’ve avoided us being in this situation. 

[00:38:34] Brent: The employee review process should cover a little of that, do you think? 

[00:38:39] Tiffany: It definitely should. But I don’t limit it to that.

[00:38:42] Tiffany: I think, performance reviews is one aspect that I’m a big believer in. Having more continuous dialogue to really check in with your team and help guide them and make sure they’re on track with their goals and helping to be a champion. Obviously, coming to the beginning part of our conversation, if you have a really bad boss or a toxic boss, they might not be so supportive in that, and that might be a reflection of.

[00:39:05] Tiffany: Them as a leader, but also possibly for you to move to a different team or maybe find a different type of organization that will enable really effective managers versus ones that are driving talent out the door. But it’s definitely something that plays into performance reviews and evaluations that goes beyond that.

[00:39:22] Tiffany: If it’s a really good boss, they’re gonna take the time to have more conversations and make sure that their team feels really motivated at all times. , 

[00:39:32] Brent: do you recommend as an employee pressing for interim reviews and maybe some kind of pre-performance check in with your immediate supervisor to make sure you’re on track?

[00:39:45] Brent:

[00:39:45] Tiffany: do. Yes, I do. And it doesn’t even have to be anything formal. , it could be pretty informal. Just check in. And again, as the employee, this is your responsibility to build your own track record and bring forward the evolution that you’re showcasing in your role. You don’t wanna just rely on your boss to just know everything that you’re doing because they, they probably don’t, and you don’t wanna miss.

[00:40:08] Tiffany: Those golden moments to share, how much that you’ve advanced or progressed in a certain way. So having those continuity of conversations is really important. And it could definitely be impromptu, pre prep for a certain eval or something that you’re prompting more in an ongoing way that your boss and you can really discuss together.

[00:40:28] Brent: All right. One last topic cuz I know we’re going along here, but let’s just say your boss doesn’t understand your job. and you are working hard to figure out what are the key points that I need to communicate to show that I’m doing my job. And you feel as though you, maybe you’re not appreciated in what you’re doing because they don’t understand it and you can’t.

[00:40:52] Brent: Communicate in a way that helps them to understand 

[00:40:56] Tiffany: it. Yeah. Yeah, that’s an excellent point. There’s a couple things. I think obviously there’s a gap there in their understanding of the roles. So finding those opportunities of filling them in on maybe the complexity of the work that you’re managing or that.

[00:41:12] Tiffany: things wouldn’t get done without you doing X, Y, Z, and showing like really the importance of certain elements of your work and why it plays into the bigger picture, that could be one way to get their attention without even needing to understand every single detail. They understand at least the value that you play in the work that you do.

[00:41:30] Tiffany: That’s one approach that you can take. Another is to also almost lay it out for them. You said it earlier, writing things out maybe. Sharing something more visually that they can follow along with you, and you can really walk them through, a little bit of the scope of the complexity that something takes or the level of diligence that’s required, or the amount of stakeholders that might be involved on a certain project, and that this is something that you’re really leading and owning in your work to get to that end outcome.

[00:41:58] Tiffany: So sometimes visual support can help them see it a lot more clearly. and allow you to then pair that with the value that you’re bringing in those tasks and projects as well. . 

[00:42:09] Brent: And that’s great. And I have so many more questions, but I think we’re gonna have to , we’re gonna have to round it out here.

[00:42:14] Brent: Tiffany, as we close out the podcast, I give everybody an opportunity to do a shameless plug about anything you’d like to plug. What would you like to plug today? . 

[00:42:22] Tiffany: Thanks Fred. I love how you coined this the joke and the shameless pluck. If anybody is interested and it’s timely with the topic of today.

[00:42:30] Tiffany: Next week on March 22nd, I’m actually hosting a Free Workplace Essentials workshop. It’s a very exciting workshop, a 60 minute event that is going to help you navigate workplace dynamics fairly effectively and activate your most successful. You. There’s a lot of things that school never teaches us.

[00:42:48] Tiffany: A lot of what Brent and I talked about today fall into that camp as well. And I’d love to really be there. Fill in those gaps and set you up for so much success in the workplace, because that’s the foundation of inevitable success for you, and we wanna get those things right. So yes, if you’re open to joining again, it’s March 22nd at 12:00 PM e s t.

[00:43:09] Brent: Awesome. So you have just, I’m gonna commit, cuz my podcast comes out every Tuesday. So this will be, I’m gonna make this one come out on the 21st of March. Oh, . And so we’ll get it live by then. And I will put all the contact information in the show notes as well. Okay. And maybe I’ll write something as a blog post in advance if you wanna send it.

[00:43:30] Brent: And we can direct you some people your way. 

[00:43:32] Tiffany: Oh, I appreciate that. And I have a lot of different free resources as well, Brent. I just published a new free LinkedIn learning course as well, a nano course all around answering common interview questions. So that is readily available, but if people want a little bit one, one-on-one action time with me in terms of a workshop.

[00:43:51] Tiffany: It’d be great to see them join us there as well. And, 

[00:43:54] Brent: One last question. Are you Canadian? I am. All right, good. So I got my accent right? Yes. Still . I had a Canadian yesterday as well. So where are you calling 

[00:44:03] Tiffany: in from? I’m from Montreal. 

[00:44:05] Brent: Oh, wow. Okay. Excellent. Yes. Good. Tiffany, this has been so enjoyable.

[00:44:09] Brent: I had another topic I wanted to talk about. It was the fluffy pancake versus the crepe. Or you, either you spread somebody so thin that it’s, loose and flavor or versus the oven pancake where everything is all rich and inside and you have plenty of space to work Anyways, maybe it’ll be a new topic we can do in the future.

[00:44:27] Tiffany: I love it. Brent, thank you so much for having me. This was a lot of 

[00:44:30] Brent: fun. Thank you. 

ChatGPT Chronicles: Exploring AI’s Impact on the Tech Landscape with Dave Malda

Today, I have Dave Malda from Jitterbit. In this episode, we’ll be talking about the top tech conferences in the United States and how they are shaping the future of technology.

We also chat about ChatGPT, a powerful language model trained by OpenAI, which can answer any question on various topics. So please sit back, relax, and let’s dive into the world of tech conferences and ChatGPT.

Talk-Commerce Roman Kuzub

Life Goes on While Working in a War Zone with Roman Kuzub

What is your perception of life in a war zone? Most of us can’t imagine what it is like to work in conditions where air raid sirens are normal. We’ve interviewed Roman Kuzub with Default Value agency on his team, their work, and life in a warzone.

What you will learn

  • Roman Kuzub is the CEO of Default Value, located in Ukraine. He is passionate about making things work easier and saving people time for something.
  • Roman: I wanted to mention the team because I was surprised by their behavior. We have 80 people in our company. I considered moving the company somewhere safe, but only 5% of employees decided to do so.
  • Roman: The whole team decided to stay in Cherkasy and started working remotely when we didn’t have enough experience with this. They did a great job and saved the workload, so I wanted to mention it.
  • Roman says that his team has come together and that the war has become normal for them. However, he took several rides to Kyiv. 
  • Roman: We stay here because we have relatives, we have families, and we want to be closer to them because each day can bring anything, actually. But we don’t feel it’s a huge problem with our physical situation. It’s more about our mental state. It’s a difficult thing. Because it’s been a year of war, and you always expect a rocket in your city. It drives you crazy a bit.
  • Roman: I’m proud of my clients because nobody ran from us or moved the project outside Ukraine. And actually, I got spammed with different proposals to help the army or move the company to Germany. 
  • Brent: Europe and the US have been united in supporting Ukraine and helping you as a country and you as people. What was your sort of leadership journey? Did you have any struggles coping with anything in particular? And I think you’ll come out stronger at the end of this. 
  • Roman: I almost don’t remember March of 2022, but I know I filmed 10 to 12 videos for my team and customers that month, ensuring they know what is happening, where we are, and what we are doing. 
  • Roman: I struggled to gather the team because they were spread in different places, but that’s my job. For me personally, the challenge is always about being positive when you see that everything is not that bright. 
  • Roman: It was extra hard at least the first half of the year, but hopefully, family helped, the team, my closest teammates helped me to do this, and we are still functioning. We currently work at our office, but most of the team works remotely.
  • Roman: It started before the invasion because we had the COVID-19 experience. But now we ask people if we should move to a fully remote company type. More than 90% of employees said they’re waiting for the end of the war to return to the office because they lack personal communication and struggle to work just from home.
  • Brent: I wanted to ask why Ukraine is so strong regarding Magento and e-commerce.
  • Roman: The roots of Magento are here in Ukraine and in Belarus, as far as I remember. We have guys who were working in a core team development, the Magento 1, for about 15 years, and they are still here. They know the DNA of the system.
  • Roman: The second part is more about the attitude to work and being honest with the clients. You should trust your partner to do your project. When you work with agencies from other countries, and they don’t deliver the project. And when you come to Ukraine to work with the agency that does while being bombed, you understand these guys are serious. And that’s about the commitments. 
  • Roman: That’s about something how work should be done, and here we have those attitudes. We can work with businesses in Europe and USA because when we are talking about something, we are serious about it. 
  • Brent: Tell us about Default Value.
  • Roman: We do end-to-end development and help businesses grow not only by delivering the projects.
  • Roman: Our company is built by two really cool developers. We are a family-type company, we communicate freely, and there’s no such huge hierarchy here or very tough processes or something like that. 
  • Roman: What sold this company to me is a totally honest approach towards customers and employees. We communicate clearly. Even when we are fucked up, sorry, we come and say, “We’re fucked up and need to solve this.” That’s the DNA of the company. That’s something that really makes us stand out. And it makes it difficult for me to find managers who can maintain such an approach.
  • Brent: Roman, what are your plans when the war is over? Will you have a big celebration? Can you see that day?
  • Roman: I can see that day. I want to build an international company and visit different places. 
  • Roman: I want to stay here, and I definitely want to help my country to succeed. I understand that most people watching this podcast are not from Ukraine, so please push your politicians to support Ukraine, and don’t get tired because the war is not over and is not even close to the end.
Talk-Commerce-Rick Elmore

What are you doing to build loyalty with Rick Elmore

One of the most effective strategies for building customer loyalty is sending handwritten notes. Handwritten notes show care and attention that any other medium cannot match. Handwritten notes are a powerful way to make a personal connection and can be used to thank your client for their business.

Handwritten notes can be sent as a thank you after a purchase, to celebrate a milestone, or to show appreciation for being a loyal client. The personal touch of a handwritten note will make your client feel like they are being acknowledged and valued.

Rick Elmore shows how to build loyalty and show appreciation to clients by connecting with them personally.

What you will learn

  • Rick Elmore is the founder and CEO of Simply Noted. He played college and professional sports, and then went on to work in corporate medical device sales and marketing until he had an itch that he just couldn’t scratch with what he was doing then.
  • Rick enjoys being outdoors and is training for a half marathon. He enjoys doing physical activity and has a three and a five-year-old now.
  • Quote from RickWhen I was in my sales career, it was really hard to stand out from the crowd, especially in the corporate world where there’s always a competitor in everything that you do. So I started writing handwritten notes to my customers to try and get their attention.
  • Quote from RickWhen I was doing my MBA class, my professor said that handwritten notes still work. I had a classmate of mine and myself that got to work and sent out 500 handwritten notes that were written by a pen plotter and had a phenomenal response rate.
  • Rick founded simply noted full-time and has been doing that for the last four and a half years. It’s a powerful tool that can be used in just so many different facets of business, not just sales.
  • Brent: I’ve had conversations with other entrepreneurs who say that handwritten notes are a lost art. One famous guy in the Twin Cities sends out 30 thank-you notes a day.
  • Ricks notest that they are a handwritten notes platform that helps companies automate sending thank you or handwritten thank you notes to their customers. By doing so, their customer lifetime value goes up; they’re gonna be happier, they’re gonna re-refer their friends, and they’re gonna write better reviews.
  • Rick: We’ve invested over $850,000 in the last almost two years developing our own handwriting robot. It’s a real three-access, a pantry-based system that’s auto-fed, and it helps realtors, mortgage professionals, e-commerce businesses, politicians, and nonprofits, to either automate it or scale it.
  • You can create your own handwriting style using our software, and we have a portfolio of about 900 handwriting styles. If you’re a person of influence, we can create a handwriting style for you, but there is a cost associated with that.
  • Rick describes the technology that goes into creating a genuine handwritten note, and how it compares to an e at the beginning of a word versus an e at the end of a word.
  • Rick: Our handwriting engine is Mach machine Learning right now, and it completely varies every single time it writes. So if you put a hundred custom messages into our handwriting software and you wrote out a hundred notes, it’s literally gonna look at 100% different every single time it’s written.
  • The real way to tell if it’s actually pen written or not is the smudge test. We actually built our own pen and developed a weighted pen insert, so when our motor lifts it, it actually lifts the pen, but when it goes down, it has a downward force.
  • Rick explains how his pen works and how he gets a nice little pen and dation plus it’s ink, so it’s gonna smear. However, people are starting to understand that this is a service that is out there and that simply noted is a good product. Rick: I’ve heard that getting handwritten notes has helped other companies get a better response rate on campaigns and outreach. Brent: First handwritten notes have a 99% open rate.
  • If you’re thinking about doing direct mail and you’re doing print, you might as well just throw seven out of every $10 in the trash, cuz it’s not gonna do anything. But if you can retain 5% more each year, you can grow your business.
  • When it comes down to it, it’s about building deeper relationships with your clients. If you have deeper, more loyal relationships, they’re gonna stick around, refer their friends and write better reviews, which really is gonna help you grow your business.
  • Rick: We have a luxury jewelry brand that uses us for customer complaints, but they don’t apologize to the customer. Instead, they automate the message and send hundreds of notes a week.
  • Brent: It’s interesting on the customer complaint, cuz it’s a little bit of a risk, especially if you automate it too much. Rick: I don’t know, I think you want to keep it super generic and give them the opportunity to reach back out to you.
  • Rick: If you’re trying to get super custom, give them the option to contact you again and talk.
  • Brent: I’ve heard that you can overdo handwritten notes, so we recommend sending them three to four times a year at the most, at least once or twice a year. Rick: You still gotta do everything else, too, like email, phone calls, social, etc.
  • Rick: We help you build that strong relationship on an automatic or scaled, you know, level, and we recommend sending something that is as personalized as possible, but short and sweet, because these clients have seven second attention spans.
  • Rick suggests sending three or four sentences, and putting yourself on the receiving end of the message. This is much more impactful than a thank you upsell, hard close, 150 word message, where they’re gonna start skim reading if you don’t have their attention within three seconds.
  • Rick: If you are gonna use email for sales or marketing, you gotta include three things: who you are, what company you’re with, what you can do for them, and how can you make their life better.
  • Rick: We’re primarily focused on helping companies do it, but we still want to help average realtors or mortgage professionals send a card. They can send their first card free so they can see what it’s like, touch it, get it in their mail.
  • Rick: I think it’s Rafiki, and his handwriting is terrible. He says he’ll send a handwritten note or two a day, but he’ll still use our system because his handwriting is so terrible. Rick Elmore’s handwriting style is not enjoyable to read, so he doesn’t want it on the website.
  • Rick says that customers should focus on the relationship rather than the product going into quarter one or just throughout for 2023. He wants to keep the people that have worked with him two years ago or last year. Rick says to get in front of clients early on every single year to get their loyalty stuck to you and your brand.
  • Rick says to stay in front of your clients, do something that others aren’t doing, and get their trust and loyalty. This will help you stay on top of mind 24 7 and get them 100% on your ship every single year.
  • Rick: I think that personal touch is a great way to stand out from the noise of generic social media and generic email. I used a podcasting service that sent me a video thanking me for being a client. Rick and Brent discuss using Zoom to record personal little video responses, and Brent gives everybody a chance to do a shameless plug.
  • Rick: If you go to our website and fill out the business page, we’ll send you a nice sample kit with writing samples, brochures, case studies, handwriting styles, um, basically everything. And usually what happens is that three to six months later a light bulb goes off and they contact us.

Transcript

[00:03:07] Brent: All right. Welcome to this episode, oft Commerce. Today I have Rick Elmore. Rick Elmore is the founder and c e o of simply noted Rick. Go ahead, introduce yourself. Tell us your day-to-day role and maybe one of your passions in life. 

[00:03:23] Rick: Yeah, so, um, my name is Rick Elmore. I’m the owner of Simply Noted, um, it, that is a handwritten notes platform.

[00:03:29] Rick: We, we’ll kind of dive into what that is later, but my background is in athletics. I played college and professional sports. Played at the University of Arizona, which was a three year starter for Mike Stoops and then was drafted in 2010 in the NFL draft. Um, after that, um, was in corporate medical device sales and marketing.

[00:03:48] Rick: First year was Rookie of the year. Next, uh, six years was either top 1% or top five rep in the company. And then 2017 came around. I had an itch that I just couldn’t scratch with what I was doing then. So I went back and did my MBA and, and uh, that’s where the idea for simply Noted began. 

[00:04:06] Brent: That’s awesome.

[00:04:07] Brent: Um, and, um, so passion is still athletics are. playing football still. 

[00:04:14] Rick: Yeah. Oh yeah. I guess, yeah. Then, uh, my passions, you know, I’m a, an avid outdoorsman. Uh, I have a three and a five year old now, so I have to be a lot more calculated, um, in what I do with my time off. You know, I, I can’t do those three and four day adventures anymore, so I have to be a little bit, uh, you know, what’s closer to home.

[00:04:32] Rick: But yeah, I would say, you know, I’m doing a, a half marathon this upcoming weekend, so I, I still try to do a lot of physical activity. That’s what I enjoy doing most outside of work. 

[00:04:42] Brent: Awesome. That’s great. Um, I, I warned you in the green room that, uh, we’re doing this free joke project and you agreed to participate.

[00:04:50] Brent: So I’m just gonna tell you a joke and you can tell me if that joke should remain free or if we could charge for it. And, um, I’m just gonna preempt today that the joke I have found, I’m gonna guarantee your kids are gonna love or at some point. But anyways, here we go. Yesterday my doctor told me my chronic diarrhea is inherited.

[00:05:13] Brent: Runs in the family. 

[00:05:17] Rick: I would say that’s a good dad joke, but , let’s keep that one free . Yeah. 

[00:05:22] Brent: I, I, I agree with you. So . Yeah. Um, alright, so, uh, simply noted, you know, I’m, I’m a big, I’m a big believer in, in handwritten notes. Tell me a little bit about it. 

[00:05:34] Rick: Yeah, so, um, you know, when I was in my sales career, , you know, it was really hard, especially in the corporate, um, like infrastructure seemed to really stand out and, and be different because, you know, in the corporate world there’s always a competitor actually in everything that you do.

[00:05:52] Rick: There’s always competition. There’s a different option. Um, all the customers are being, you know, pulled in every direction by every vendor to try to get their attention. And when I was doing in my MBA class, I had a marketing professor, I was just talking about like success rates and market. and, um, everything was super marginal.

[00:06:11] Rick: Everything was like low single digit percentage, you know, email, cold call, print, direct mail, um, knocking on doors. And I had a professor that said handwritten notes, guys, like at the end, at the end of the lecture, he said, kind of half jokingly said, Hey guys, you know what still works is a good old fashioned handwritten note.

[00:06:28] Rick: Um, it gets opened almost 100% of the time, says it’s actually 99% and there’s just nothing like it. I don’t think he knew what he was doing then because the light bulb started going off and, uh, I had a classmate of mine and myself we got to work. We, uh, worked with the mailing house here in Phoenix, Arizona, flew some technology and from South America, China, and basically it was a pen potter.

[00:06:53] Rick: I, where’s that? I have a, usually have a pen plotter in here to show you. But, um, sent out some really bad handwritten notes that were written by this pen plotter. Uh, it took us about a month to write out 500 of them, and, uh, just had a phenomenal response rate. Just, you know, as a salesperson, having a client call you back.

[00:07:13] Rick: Right. That, that’s a big deal. And, um, what we really noticed, , you know, how powerful they can be, how powerful of a tool. It can be used in just so many other different facets of business, not just sales, um, you know, client retention, um, relationship building, you know, booking appointments, um, saying top of mind.

[00:07:34] Rick: You know, there’s just a bunch of ways that you can use this tool in a, in very valuable ways. But for me, what sparked the idea was outreach, booking appointments, and closing. So, um, had tremendous success in 2017 doing that 2018 and then, you know, the business kind of just grew organically in 2019. We founded, uh, simply noted full-time, and uh, that’s what we’ve been doing for the last four and a half years.

[00:07:58] Rick: That’s awesome. 

[00:07:58] Brent: Yeah, I, I definitely have had conversations with other entrepreneurs and business owners who, uh, especially people that are in an older generation who say, mm-hmm. , that, uh, that’s a lost art, is the, um, is a handwritten note. Um, I, I remember sitting through a meeting or a, you know, a panel with one of the, um, one of the more famous guys in the Twin Cities who had said, Uh, he picks 30 people a day out of his sales.

[00:08:29] Brent: He had a retail and he would send them a handwritten thank you note mm-hmm. , and he would hand write every single one of them. So, uh, I, I, I can certainly appreciate it. And, and so tell us a little bit about your system and how you’re not asking actually everybody to hand write it, like you mentioned 

[00:08:48] Rick: plotters and stuff.

[00:08:49] Rick: Yeah, so what’s simply noted as is we’re a handwritten notes platform. We help companies either automate it, so think of like a new client signs up. We can automate sending a thank you or handwritten thank you note or say it’s, um, after their fifth purchase we can set up some type of trigger using Zap.

[00:09:05] Rick: You’re an API integration of Web Hook. Um, once they hit that milestone to think then, or an anniversary or a birthday, um, we really like. , you know, kind of consult our clients on the relationship side of building, um, these hand uh, sending these notes on a relationship purpose because you know, they’re going, they’re gonna stick around a lot longer.

[00:09:26] Rick: The lifetime value’s gonna go up, they’re gonna be happier. They’re gonna re refer their friends, they’re gonna write better reviews. So we think, you know, the tool of sending a handwritten note should just be simply to thank somebody, um, because just saying thank you, it’s worth its weight in gold. Um, it’s gonna come back to you tenfold over.

[00:09:41] Rick: Um, it just takes time. Um, and all good things do take time. So simply noted. Helps you automate it or scale it. So, um, if you need to send one, if you have all the stuff we always tell our clients, like if you have handwritten notes or notes in your desk and you wanna send one-offs, um, we tell you to do it because, you know, there’s just nothing like a handwritten note from you, but, Just a tiny little speck below that’s simply noted.

[00:10:07] Rick: Everything we do is real genuine pen written. Um, we’ve invested over $850,000 in the last almost two years developing our own handwriting robot. Um, it’s a real. Three access, uh, you know, left, right up, down, uh, forward backwards, you know, three access, pantry based system that’s auto fed. Um, we’ve developed our own handwriting engine, our own software, our own mechanics.

[00:10:31] Rick: It’s, it’s pretty, it’s pretty awesome. Software integrations. So, yeah, so simply known as just a platform that helps, you know, realtors, mortgage professionals, e-commerce businesses, um, politicians, nonprofits, to either automate it or. . 

[00:10:48] Brent: Yeah. That’s awesome. I, I know that we’ve, I’ve talked to other people who’ve done something similar and so you, you have the ability to mimic somebody else’s handwriting and or use a general hand write handwriting to send the 

[00:11:02] Rick: note.

[00:11:03] Rick: Yeah, so we have about 32. Last time we checked 32 handwriting styles available on the website. Um, we have about a portfolio of about 900 handwriting styles. Um, it really becomes analysis paralysis, like if you like, start looking at tons and tons of these handwriting styles. Um, if you’re a person of influence where like, you know, your stuff’s gonna end up online, um, you, you’re a public figure and you want to do your own handwriting style, we absolutely can do that.

[00:11:32] Rick: Um, most people. because there’s a cost associated with that. But we don’t just create a font, we create a handwriting style. And what that means is like we’re actually pulling out like the characteristics of how you write, you know, You like when you write like, like the natural spacing, the kering, you know, of what an A next to a B looks like, an A next to a, you know, a c I mean, everything is like pulled out, you know, ligature styles.

[00:11:58] Rick: What do two T’s look like next to each other? Do you loop ’em? Do you connect ’em? You know, it’s what’s an e at the beginning of a word look like versus an e at the end of a word. I mean, it’s lit. It’s, it’s, it’s pretty intense. You know, the, what has gone into creating, uh, a genuine handwritten note.

[00:12:15] Rick: There’s tons of technology on the, on the back end that allows us to send a simple hand handwritten note on the front end. So it’s, it’s pretty, um, spectacular. 

[00:12:25] Brent: Um, I know ma, machine learning is such a, um, a buzzword right now. Uh, how does machine learning kind of play into this? And does it, and 

[00:12:35] Rick: so our soft, yeah.

[00:12:36] Rick: So it’s, I mean, I would say our, our handwriting engine is Mach machine Learning right now. Um, it completely varies every single time it writes. Um, I wouldn’t say that it’s, it’s a true, smart, like machine learning, but what it does is it, Constantly varies. Every single handwritten note. So if you plugged a hundred custom messages, you know, into our handwriting software and you wrote out a hundred notes and you put ’em all next to each other, it’s literally gonna look at, look 100% different every single time it’s written.

[00:13:05] Rick: So, um, we put a lot of thought in, in research and development to making sure that they look as real as possible. Cuz if not, I mean, there’s really no purpose of our, our service if you know the notes that we are. Don’t look the most authentic. 

[00:13:22] Brent: Yeah, I, I can say that I’ve gotten many realtor email or, uh, physical letters that is, that are clearly just printed out on a printer and mm-hmm.

[00:13:31] Brent: and have some font that, that sort of ties together some cursive . 

[00:13:35] Rick: Yeah. Um, Yeah, so the real way of telling that is the smudge test. You just lick your finger and just like try to smudge the ink. Um, a laser printed hand, like a laser printed font will not smudge, but like, since these are real pens, um, we actually had to build our own pen.

[00:13:50] Rick: Um, we can dive into because we write so many notes, but, um, . If you actually write it with a real pen and you try to smudge it, the will smear. So that’s like the number one way to tell if it’s actually pen written or not. 

[00:14:03] Brent: And you have some kind of, uh, it, it does a little indent on the paper as well. 

[00:14:07] Rick: Yep, yep.

[00:14:08] Rick: And that was another reason, you know, we had to develop room technology. So those actually drop machines. All they have is little lift motor and there’s no downward pressure force. So we actually, we did a weighted pen. Um, we actually developed this pen. Um, we developed our own pen insert. We’re writing capacity, so when our motor lifts it, it actually lifts the pen, but when it goes down, we actually have a right, like a downward force on it.

[00:14:33] Rick: So we actually have a, a spring force that actually pushes the pen into the paper as well. So, um, so you’re gonna get that nice little pen and dation plus it’s ink, so it’s gonna smear. So it really, it’s gonna be really hard, you know, I mean, you really, really have to try to. Some type of, you know, um, woody pattern in these when there, there isn’t, but.

[00:14:55] Rick: That’s, yeah. 

[00:14:57] Brent: Have you ever had anybody ask for Mount Blanc Black blue Ink? 

[00:15:01] Rick: Yeah, when we were like first getting started. That was really funny. Like the early customers would ask for like that crazy stuff. But no more, I think people are starting to understand that, you know, this is a service that is out there.

[00:15:12] Rick: Um, You know, there are a couple competitors out there. There’s really only maybe two serious players in this space. Um, but, uh, yeah, I think, you know, businesses now just want, you know, something that’s easy to use, efficient, um, authentic, a good product. And that’s what we’re trying to do for our clients that we here at simply noted.

[00:15:34] Rick: Do you 

[00:15:34] Brent: have some numbers that you could share that show sort of the uptick, uh, on, at the end of a sales cycle or response rate? I, I’ve heard that, you know, getting handwritten note has helped other companies, uh, get a better response rate on campaigns and. And, and just 

[00:15:49] Rick: outreach. Yeah. Well, first handwritten notes have a 99% open rate.

[00:15:55] Rick: That’s a 300% improvement over print mail. Um, so if you’re thinking about doing direct mail and you’re doing print, you might as well just throw seven out of every $10 in the trash, cuz it’s not gonna do anything. Um, this was actually an American Express study, but they found out that just, you know, this is a client, you know, a client experience, um, study.

[00:16:16] Rick: American Express did, but just a simple 5% improvement in client retention will increase profits year over year by 25 to 95%. They did that on business accounts, but just retaining 5% more each year is gonna help you grow your business or grow your sales by 25 to 95% year over year. For me, I mean, that makes complete sense.

[00:16:36] Rick: If we were able to, you know, keep our current business clients, you know, year over year, um, especially, you know, our, our larger accounts, it would be easier to grow your business. So that makes total sense. Um, also, there’s, you know, customers who feel appreciated, you know, five, they’re five times more likely to make a repeat purchase.

[00:16:53] Rick: So just saying thank you. You’re gonna increase your like repeat purchases from your clients, repeat business by 500%. That was also American Express study as well. So really when it comes down to, it’s like just building deeper relationships with your clients because when you have deeper, more loyal relationships, they’re gonna stick around.

[00:17:12] Rick: You know, they’re gonna refer their friends and they’re gonna write better reviews, which really is gonna help you grow your business. And that’s what we’re really trying to do. Um, yeah. Yeah, I’d say those are some good stats with simply. 

[00:17:24] Brent: Do you have some, um, sort of, you don’t have to say any client names, but, uh, any examples of situations, maybe retail or e-commerce or even just regular B2B type of outreach that have been very successful?

[00:17:40] Rick: Yeah, so we work with a luxury hat brand. Um, what they do is when somebody tries like their. Discounted hat. What they’ll do is they’ll automate a, um, handwritten note with a discount code to try their more expensive hat. So they’re trying to upsell them. So, I mean, they’ve been doing that for over a year.

[00:17:59] Rick: So I think if it was working, they, I mean, if it wasn’t working, they wouldn’t keep doing it. So that’s kind of a cool, unique, um, uh, kind of use case that we’ve seen in the e-com. Also, um, it’s, we have a, a luxury, um, uh, jewelry brand. And it’s really funny. It’s like, you know, their average sale probably is $3,000 or more, but what they use us for is when they get a customer complaint.

[00:18:26] Rick: So we see the, you know, somebody who didn’t have a good experience. We see that message get automated all the time. Um, it’s a global, global company and you know, they’re sending hundreds of notes a week. Um, but you would think, you know, , um, you know, using something like that to just apologize and get them back on board to, you know, get them to like the brand more, um, to try to get that loyalty back.

[00:18:50] Rick: Um, so yeah, we’ve seen them for upselling. We’ve seen them for saying sorry, to try to, you know, earn their trust back. So, yeah, there’s a bunch of ways to use it. 

[00:18:58] Brent: That’s interesting on the customer complaint, cuz it, it is a little bit of a risk, especially if you automate it too much. Is that something worse?

[00:19:05] Brent: Somebody would actually write out, hand write, not handwriting super, but type. I type it out and then it comes to your engine and then gets mailed out. 

[00:19:13] Rick: Yeah. I don’t know. Yeah, I don’t know. I, I think in something like that, you want to keep it super generic, you know, and give them the opportunity to reach back out to you.

[00:19:22] Rick: Um, that’s what this brand does. , um, they just say that they’re really sorry, you know, they’re apologizing for that experience. If you wanna talk, I’d love to talk to you more about it. And they put their a contact number for them so it actually looks, you know, as authentic as possible. They’re trying to be authentic, they’re trying to fix it.

[00:19:37] Rick: I think if you’re trying to get super custom and it’s just like a, um, a use case just to send it and forget it, I wouldn’t say that’s the best case. But if you’re giving them the option to then further contact you again and talk. The authenticity of something like that is, is something that’s extremely powerful.

[00:19:56] Brent: Um, I’ve heard. You can overdo handwritten notes as well, like the, it is something that should be spaced out over time and like, if, if you’re tagging somebody at the end of an e-commerce, uh, sale and you don’t wanna send ’em an handwritten note every week saying, Hey, thanks 

[00:20:13] Rick: for this. No, well, I mean, we would love it if, you know , I can’t send, you know, hundreds to each of their clients.

[00:20:20] Rick: But, um, yeah, we, we try to recommend to our, our, our businesses, you know, three to four times a year at the most, um, at least once or twice a year. You know, we’re in the holidays right now, so it’s our busiest time of the year. That’s when most of our businesses are using us. Um, but I would say, you know, maybe thank you for a purchase, maybe a birthday or an anniversary of a purchase, and then a holiday.

[00:20:42] Rick: You know, just stay top of mind, you know, simply note as just another tool in the belt. That’s what we try to tell ’em as well. You still gotta do everything else. You still gotta have great customer service or great product, email, you know, phone calls, social, I mean, you gotta have all the other elements to build a successful business.

[00:20:56] Rick: It’s just, What we do is help you just build that strong relationship on an automatic or scaled, you know, level. 

[00:21:05] Brent: Um, on the, um, on that, on that experience part and scale, I should say, um, our customers seeing some kind of, uh, um, or, or I should say, are merchants seeing a better uptick when it’s a little bit personalized or.

[00:21:27] Brent: Uh, are, is it, is it still effective if you’re sending out a nice note with a thank you and, and the person’s name at the end? 

[00:21:36] Rick: Well, we always recommend to, uh, personalize it. Um, that’s the power of all the technologies that’s out there right now. Um, you know, using platforms like Zapier, integr, Matt Mat, um, or make, you know, whatever they are now, um, integrate, you know, you can pull information automatically from your software and personalize.

[00:21:56] Rick: The message as much as possible. Um, we definitely don’t recommend just putting a generic message on there cuz it kind of, it can come off as impersonal. Um, when the product that we are trying to provide is a very high level touch personal. So, um, We would absolutely recommend sending something that is as personalized as possible, but short and sweet, you know, these, your clients have seven second attention spans.

[00:22:21] Rick: Three or four sentences. Respect their time. Don’t send them, you know, two paragraphs of a message. It’s just not real or authentic. Um, you know, try to put yourself in their shoes. Be on the receiving end of this. What would you like to receive? . You know, maybe a simple Thank you. We appreciate you so much.

[00:22:38] Rick: You know, you know, please let us know if we can do anything for you. You know, short, sweet to the point is gonna be much more impactful than a thank you upsell, hard close , you know, 150 word message where they’re gonna, you know, if you don’t, if they don’t. You know, I was just listening to a podcast yesterday actually, about something.

[00:22:57] Rick: If you don’t have them hooked within three seconds, they just start skim reading. Like if you don’t have their attention within that first sentence, you know, I was trying to listen to podcasts about developing stronger messaging, and there’s like within three seconds, if you don’t have ’em, they just start, they just start skim reading.

[00:23:11] Rick: So again, short and sweet to the point is what, uh, works the best, but make sure it’s personalized to them. . 

[00:23:17] Brent: And how about hooks in that message to get them to do some action? Is there, is there something in there that you’d, that sometimes you’d like them to do? Or is it some, is it just a, Hey, thanks for, for your 

[00:23:29] Rick: customer?

[00:23:30] Rick: So my, my background’s in sales and marketing, so I’m, we use it to, to grow our business. Um, um, But what I always try to tell people is just say thank you, but if you are gonna use it for like a sales or marketing tool to book more appointments or close more deals, I always say there’s three things you gotta include so you know who you are.

[00:23:52] Rick: Make a quick introduction, one sentence, who you are, what company you’re with. Um, you know, what’s your value proposition? So number two, like what, how can you help them? How are you gonna make their life better? And then just simple, make an ass, you know, um, can we get on the call? You know, can we buy you lunch?

[00:24:08] Rick: Something like that. Just really quick. And to the point, respect their time. If they’re interested, you know, they’ll call you back. But yeah, I would say make an introduction, value proposition, you know, and then they can. , 

[00:24:22] Brent: is there a crossover into the personal space? You know, sending birthday cards and Christmas cards and things like that?

[00:24:27] Brent: Are you primarily 

[00:24:29] Rick: commercial? So our website, simply noted.com, can send just one card for any reason. Um, but that our website was built on purpose. We had to the API first company. Um, so all of our orders, you know, they do go through our website, but they use software to. Um, but if anybody, you know, wants to go in and send a quick birthday card or a holiday card, um, you can do that on our website.

[00:24:57] Rick: Um, but we’re primarily focused on helping companies, um, do it because they have the technology and the resources put in place, you know, to leverage a system like this. But we still want to help, you know. Average realtor or mortgage professional, or just anybody who wants to send a card. It’s actually a good reason for a lot of people to just try us out as well.

[00:25:19] Rick: You know, they want to try before they buy, so they’ll go on there and we allow them to send their first card free so they can send it, see what it’s like, touch it, get it in their mail. Um, yeah. 

[00:25:30] Brent: Excellent. Um, do you have a font that is can’t read? So if my, nobody can read my handwriting. So do you have it so they’ll know that, Hey, this is coming from Brent, so Definit.

[00:25:41] Brent: I can’t even read it. . 

[00:25:43] Rick: Yeah. So, um, yeah, I think it’s Rafiki. It’s kind of like a, a doctor’s, I would call it scratch. I mean, it’s super dis disgusting. It’s really hard to read. But, um, I mean, I, you know, I’ll send a handwritten note or two a day just to, you know, people stay in touch or thank them for something they’ve done for me recently, and I’ll still use our system because, you know, if I wrote it, it, it, my handwriting is so terrible that I, I, I’ll write it out and then I’ll try to read ’em.

[00:26:13] Rick: Like, this is just terrible on the. Like, this isn’t even a nice reading experience. Like I’d rather use that handwriting style that we have on our website and put our message in online just to send one or two , because I just, my handwriting is terrible. So, um, there’s just something like that too. I’m trying to put myself in the recipient shoes as well.

[00:26:33] Rick: It’s like, do they wanna read my chicken scratch or they want to have some, you know, handwriting style that does. Like a handwriting style, but it’s actually enjoyable to read cuz mine like will literally hurt your eyes. . . It would be a lot. Sweet. So we can’t go, what is that? Yeah, 

[00:26:48] Brent: we can’t go onto the website and pick the Rick Elmore font.

[00:26:52] Rick: No, no, that, that will never be on the website cuz I don’t think anybody would choose it. 

[00:26:57] Brent: Um, if you had one nugget that you think. Customers should do going into quarter one or just throughout for 2023. What, what do you think is something that people could be doing in both customer experience and uh, and communication?

[00:27:13] Rick: So I would, what do you, you know, there’s a hundred different. You know, competitors to every service, it doesn’t matter. You know, we live in 2022, almost 2023. Um, competition’s so fierce across the board in everything that we do. Um, so what I try to do with my clients is give them 10 times more value, um, and appreciation.

[00:27:35] Rick: So no matter what, you know, they’re gonna be loyal to us, um, because I know they have the ability to go out there and, and shop around and try other people. So what I try to do is just focus on that relationship because I know our product is gonna get better and it’s always going to be improving. But I want the people that have worked with us two years ago or last year to stay with us and come with us and help us.

[00:27:57] Rick: So I would say, you know, early on every single year is somehow get in front of your clients. It doesn’t matter if you’re gonna pick up the phone and call them and thank them for what they did for you last year. Um, do something to engage them in a way. that you’re getting their loyalty stuck to you and your brand.

[00:28:14] Rick: Like what are you doing, um, to build that loyalty on a consistent basis. Because, you know, like I, I’m, I’m a big tech guy and I have, you know, tech brands that I like to follow, but you know, there’s different options, but. I do have one brand that always somehow gets my attention and, um, they’re really good at staying on, on top of, on staying on top of mind.

[00:28:37] Rick: And actually, they, they called me after my last purchase and said, Hey, we saw you like you’re on your seventh purchase. Thank you so much. Like, that’s impactful. You know, what are you doing to stay in front, um, of your clients? Um, because you know that attention span, especially with ads and social and digital, um, it’s really.

[00:28:56] Rick: You know, to stay top of mind 24 7 when everybody, including your competitors, are fighting for that space. So I would say definitely figure out a way to, to get that trust, get that loyalty, you know, get them, you know, 100% on your, on your ship. Every single year. 

[00:29:13] Brent: Yeah, I mean, that’s a really good point.

[00:29:15] Brent: There’s so much noise out there nowadays and, and making sure that, uh, you’re kind of going above the fray. You have to do something that others aren’t doing. And I think that personal touch be it, be it a personal phone call or, uh, handwritten note is such a great way of making sure that you’re up above what everybody else is doing and trying to stay out of that noise of generic social media and generic email.

[00:29:40] Rick: um, Rick, somebody, you know Yeah, go ahead. I have another little nugget here. Somebody. I use a podcasting service, you know, to help us, um, with our outreach. And the owner of this company gave me a phone call and I didn’t answer cuz I didn’t know how it was. And then what he did was recorded a message on Zoom.

[00:29:59] Rick: Just thanking me for being a client on his platform. And he sent me an email and saying, Hey, just sent you this message. Just wanted to, whatever. And it was a video, like a three minute video thanking me of being a client, like , like, am I gonna be loyal to him or go try some different service? You know? So that was a cool, cool way.

[00:30:17] Rick: Somebody just got my attention recently as well. And that takes two or three minutes. You know, it’s really easy to do, you know, on a computer nowadays, everybody knows how to use Zoom and, and do that recording. 

[00:30:27] Brent: Yeah, I think Vineyard is a great tool to use just to give those personal little video responses.

[00:30:33] Brent: Um, Rick, as I close out the podcast, uh, I give everybody a chance to do a shameless plug. You can plug anything you’d like. What would you like to plug today? 

[00:30:44] Rick: Yeah, so what we do is anybody who goes to our website, we’ll actually send them a nice sample kit. So we do a good job of putting together this big 10 by 13 folio, um, with writing samples, brochures, case studies, handwriting styles, um, basically everything.

[00:31:00] Rick: that you, I mean, after four and a half years of doing this, we know what questions people ask and we answer those questions in this sample kit. So if you went to simply noted.com, um, and just go to the business page and you can fill out your information. We’ll send you this nice sample kit. Um, and usually what happens, you know, people request it and then three to six months later, you know, a light bulb goes off and then they’ll contact us.

[00:31:23] Rick: So we highly recommend you just to go to simply no.com and go to the business page and let us send you a free sample. Okay? It’s on us. Um, and yeah, and just see, you know, how great this technology is and simply noted. Really just wants to help automate it and. Um, and you can see how we can do that with this sample kit.

[00:31:44] Brent: That’s awesome. Rick, thanks so much being here today. It’s been a pleasure. 

[00:31:49] Rick: Thank you so much, Brent. It’s great to be here.

Thank you for making it to the end of this episode of Talk Commerce. Please rate this episode wherever you download your podcast. We are actively looking for people to participate in the Free Joke Project. Go to talk hyphen commerce.com and sign up for your free spot on the Free Joke Project. If you are a business, I will do a 32nd elevator.

In the spot to help promote your business. That’s talk hyphen commerce.com.

The Story of Socks, Socks, and More Socks with Mark Cronin

This week on our podcast, we will discuss the incredible story behind John’s Crazy Socks and our mission to spread happiness. We’ll explore how John, who has Down Syndrome, and his dad, Mark, started this business with a simple mission: to spread happiness.

We’ll talk about how their business has grown and evolved over the years and how they have impacted the lives of so many. Additionally, we’ll discuss the importance of inclusion and how John’s Crazy Socks has created a community of acceptance and respect.

Tune in to learn more about this inspiring story and how you can help make a difference!

What you will learn from this podcast

[00:04:22] Mark: dad.

  • Mark is a fan of Bob Dylan and recently embarked on a project to send out a Bob Dylan song of the day.

[00:05:20] John: son, 

  • Mark and I built a website and got a little inventory, and we were bootstrapping. The only marketing we did was set up a Facebook page.
  • Brent wants to get your feedback on a joke before we get into the regular content, so he’s gonna tell you a joke and then you’re gonna tell me a joke after that.

[00:09:33] Brent: Oof

  • Mark: I don’t know if you’ve ever had to participate in a mission statement writing exercise, but it drives everything we do. We’ve created a social enterprise that has both the social and the business purpose, and they feed off of each other.
  • Mark: It’s about giving back, supporting causes, and creating customer experiences. And so we’re spreading happiness.

[00:12:23] Brent: happiness.

  • Brent: Yeah, I’m a big believer in the entrepreneurial operating system, so we do mission statements and we set up our core values.
  • Mark: I’m familiar with E os and we have our five pillars, and everybody knows that, so if you walk around here and you say, what’s the mission, everybody will be able to tell you and they’ll be able to tell you why their job matters.
  • Mark: work. We have to make this a great place to work, and we can start by making sure people know why their job matters.
  • When you buy socks from us, you are helping us employ people with different abilities, give back, and spread happiness. You get a thank you note from John, and on the packing slip, you see the picture of the person who picked your on.
  • Brent: I agree that happiness has to start with the staff and then bring it out to the customers.

[00:15:51] Mark: happiness?

  • Mark: We believe in what we’re doing and we’re committed to making our customers happy, so we go the extra mile for them. We give things away, we refund money, we give a guarantee of happiness, and it’s good business.
  • Mark: We get happy employees, happy customers, and loyal customer. We have a great website, great selection, great products, and great service, so we frequently hear from new customers how surprised they were and how quickly they got their product.
  • Mark: We do better shipping than Amazon and Jeff Bezos over in Amazon, and we do it because we hire people with different abilities.
  • Brent: I think businesses overlook two of the five pillars, the social and the environmental, and also the community. Maybe you could touch a little bit on the community side of it?
  • Mark: we work with people with different abilities, and we make products that celebrate causes and raise money for those causes.

[00:19:39] Mark: You 

  • Mark: Socks raised money for the National Down Syndrome Society. We work with the local schools, we host school tours, we get involved in the local chamber of commerce, and it turns out to be good for business.
  • Brent: I get that, and I volunteer for a running organization that helps incarcerated, formerly incarcerated people start changing their lives through running. The community aspect is even more important than the running part, and you have to make sure that you’re maintaining that and being part of it.
  • Brent: Leaders should always try to serve others rather than getting something from them. Mark: Leaders should work for everybody else and give them what they need to succeed.
  • Mark said we were going to sell crazy socks, and John’s Crazy Socks became somewhat anachronistic, but it’s about the joy and the passion and the energy.
  • Mark: When you get tossed ass over heels, you got your north star, and your values help keep you on track. So when we got hit by a pandemic, we knew we had to take care of our colleagues’ health.
  • Mark: We moved our tours online, we made socks to say thank you to frontline workers, we sold masks to spread happiness, and we made healthcare superhero socks to raise $50,000 for the American Nurses Foundation.
  • Mark founded SOS to spread happiness and started a Facebook live show and a podcast. He says that if you know what you are really, you can adapt no matter what the circumstances are.
  • John and Mark are the owners of johns crazy socks, which makes great socks and helps people with different ability. By buying from them, you’re also helping them spread happiness.
  • Please rate this episode wherever you download your podcast and sign up for the Free Joke Project to help promote your business.

Transcript

[00:03:35] Brent: Welcome to Tak Commerce. Today I have John and Mark Cronan. They are, uh, the founders of the Crazy Sox. Anyways, John and Mark, why don’t you do an introduction Tell me, uh, a little bit about yourselves, one of your passions in life. Correct. Any of my mistakes, and tell me, uh, tell me everything. , you 

[00:03:55] Mark: wanna 

[00:03:55] John: introduce us?

[00:03:56] John: Um, my name is John. This my partner, my dad, mark Aswan. Uh, we are John and our mission is spreading 

[00:04:05] Mark: happiness spread and happiness. So we help bring a little happiness, friends passions. You got a lot of passions here. I do dancing. Is that one of them? I 

[00:04:14] John: can’t sing and I do. Um, I, I dancing and I, um, I I love my 

[00:04:22] Mark: dad.

[00:04:23] Mark: Well, that’s a passion of yours, so, okay, so what’s a passion of mine? Uh, completely non-business related. I am a fan of Bob Dylan. Fan is short for fanatic . Um, so I have recently. Well, not that recently embarked on one of the more absurd projects I’ve ever taken on Kevin’s son. I, I started selling out, sending out a Bob Dylan song of the day.

[00:04:54] Mark: Um, and I do a little write up, you know, but it frequently like a thousand words or so. 

[00:04:59] John: Um, he’s son about, 

[00:05:02] Mark: uh, uh, whatever Bob Dylan song comes to mind that day, and today I’m on day 211. and I suggest to people try to write something for 200 days in a row. ? . 

[00:05:18] Brent: Yeah. It’s not easy. He has 

[00:05:20] John: son, 

[00:05:21] Mark: right? I have sons, yes.

[00:05:23] Mark: What do you want me to say about my sons? He have son and wife. I have a wife too. Yes. I told them I’m talking about one thing. . Come on now. . So Brent wants to know about John’s Crazy Sox. Um, it’s named for you because it was your idea. Give my idea. Um, we started just over six years ago. We just celebrated our six anniversary.

[00:05:50] Mark: Um, born at an necessity. Right. John, you, where were you six years ago? Uh, 

[00:05:55] John: I was at high. . 

[00:05:58] Mark: He was in his last year of school trying to figure out, I’m last year, what do I do next? John has Down Syndrome. There just aren’t a lot of opportunities for people with Down Syndrome. We know you have a lot of entrepreneurs in the audience.

[00:06:12] Mark: John’s a natural entrepreneur. He couldn’t find anything he wanted. He couldn’t find a job. So what’d you say? I want quit. I wanna make one. I’ll make a job. 

[00:06:22] John: What’d you tell me? I told my dad I was gonna be with him. . 

[00:06:27] Mark: So ultimately we just, he suggested we sell socks. We had, he had won these crazy socks his whole life.

[00:06:36] Mark: We said, okay, let’s go test the idea. So we went the lean startup route. We built a website, got a little inventory. We were bootstrapping. Uh, we recently were talking to some students and they said, well, what does bootstrapping. It means you have no money, um, and you gotta make due with what you have. So the only marketing we did was set up a Facebook page.

[00:07:01] Mark: I would take out my cell phone and we made videos. And who was in those videos? I am, 

[00:07:07] John: I’m talking by socks. Socks on my sock. 

[00:07:10] Mark: And we opened on Friday, December 9th, 2016. Yes. Not knowing what to expect. We got 42 orders the first day. , we did home deliveries to people. Most of ’em were local. Um, and after two weeks, after that first month, or really two weeks, um, we had 452 waters and we knew we could, we could grow something today.

[00:07:38] Mark: How many different socks do we have? We 

[00:07:40] John: have 4,000 d. 

[00:07:44] Mark: 4,000 socks, which means John here owns the world’s largest sock store in terms of choice, right? Not, we’re not out selling Walmart and the like, um, but we just celebrate our six anniversary, just shipped our 400000th package. Um, we’ve been able to create 34 jobs.

[00:08:05] Mark: 22 of those are held by people with different abilities and, uh, giving back is a big part of what we do. And, and. We’ve now raised $600,000 for our charity partner. So, uh, uh, things have been good so far. 

[00:08:22] Brent: Yeah. That’s awesome. Um, uh, one of the things that, uh, that I prepped you with in the green room, and I noticed, uh, you, you have the banner in the background that’s spreading happiness.

[00:08:33] Brent: Um, I did say that I was gonna tell you a joke and I wanted to just get your feedback on the joke. So before we get into the regular content, I’m gonna tell you a. and then, uh, you just have to tell me if that joke should be free or not. And then as I understand it, you’re gonna tell me a joke as well after, after I tell you the joke.

[00:08:52] Brent: All right, let’s go Brent. So, um, I’m hoping I’m gonna spread some happiness. Um, alright, here we go. What does a building wear a dress?

[00:09:07] Mark: So you tell jokes like 

[00:09:08] Brent: John ? Yes. 

[00:09:11] Mark: I didn’t, 

[00:09:13] John: ah, I don’t think you can charge for that. 

[00:09:16] Mark: I’m not sure You can give 

[00:09:17] John: that 

[00:09:17] Mark: away. . 

[00:09:19] Brent: Well, we just gave it away. Should. Alright, should we do one more? Okay. All right. I’ll do one more. Since, since that one, that one was so successful. Um, a storm blew away 25% of my roof last.

[00:09:33] Brent: Oof

[00:09:36] Brent: I know. That was a, that was, that was even worse. 

[00:09:41] Mark: That is upon worthy of James Joyce, you know? Yes, absolutely. Do you have a joke you 

[00:09:47] John: want to tell? I do. That’s here. Why? Why is Don wear, why has thunder 

[00:09:54] Mark: wear, why does thunder wear. , why does underwear, underwear. Underwear. Okay. I’m not sure if I get it. You know, , sometimes I think you’re speaking a different language.

[00:10:11] Brent: All right. Let, let’s talk a little bit about spreading happiness. Um, tell us, tell us some of the background of that. And, and, and I mean, I, I can, I am, I’m also a believer in spreading happiness, but tell us a little bit about that. . 

[00:10:27] Mark: Well, we are believers that if you wanna lead an organization, you gotta know what you’re about.

[00:10:37] Mark: You gotta know what your purpose is about. Um, and ours is spreading happiness. And so, and how do you, what do you say are the keys to spreading 

[00:10:46] John: happiness? It’s gratitude for 

[00:10:48] Mark: others. Gratitude and do for others. And that drives through everything we. , um, I don’t know, Brent, if you’ve ever been, if you’ve ever had to participate in a mission statement writing exercise, I, I hope not.

[00:11:03] Mark: You know, you go away and you parse the language and you come back and people put it on the wall and no one pays any attention to it. We talk about this every day, and it drives our decision making. It drives our budget process. And it has to then infuse everything we do. So what we’ve done to make that happen is we’ve created a social enterprise.

[00:11:31] Mark: So it’s a slightly different type of business model. We have both the social and the business purpose, and they feed off of each other. And, and really the, the keys for us, it’s, it’s like John says, it’s have an attitude of gratitude and it’s due for others and for us. That’s really about showing what we can do, what, what people with different abilities can do.

[00:11:57] Mark: It’s about giving back, you know, supporting causes. Um, and it’s about making those connections with our customers, you know, so we’re always looking for relationships, not just transactions. We’re looking to create customer experiences. And so what we do all. our, we’re spreading happiness and our customers are spreading 

[00:12:23] Brent: happiness.

[00:12:25] Brent: Yeah, that’s great. I, I’m a, I’m a big believer in the entrepreneurial operating system, so as, as we do eos, it’s called, we have to do mission statements and we have to set up our core values, so absolutely. I’ve gone through that and I’m a big believer in living and working towards your core values and hiring for your core values.

[00:12:43] Brent: That, that’s awesome. Yes. So, 

[00:12:46] Mark: yes. Yeah, go ahead. It. I’m familiar with E os and you know, we, we gotta know our purpose. We have our five pillars. Um, everybody knows that, you know, if you walk around here and you say, what’s the mission? Everybody will be able to tell you and they’ll be able to tell you why their job matters and connects.

[00:13:07] Brent: Yeah, that’s good. So tell, tell me a little bit about, uh, the happiness part. What is it that, um, just, so what is it that you’re doing to promote happiness and how, and I’m assuming it’s happiness for employees and for customers, 

[00:13:20] Mark: for everybody. Right. Um, it was the old Milton Friedman line that, you know, companies and corporations only had an obligation as shareholders.

[00:13:31] Mark: Uh, we believe in a different, will we have an obligation to our colleagues, to our customers, to the community, to the environment, and to our shareholders. Um, you know, I mentioned the five pillars we have. What’s our, what are our five 

[00:13:48] John: pillars? Um, it’s present in hope. Give me back five prior, uh, five prior.

[00:13:54] John: You can love, make partner and make it clear to 

[00:13:58] Mark: work. So, you know, you ask how you do that happiness. Well, it’s gotta start here. It’s gotta start with our colleagues. We have to make this a great place to work, and we could dive into how we do that, but much of it is about making sure we offer people mission worthy of their commitment, making sure everybody knows why their job matters.

[00:14:19] Mark: Putting people in a position that succeed, recognizing what they do, um, making it personal. We sell online, but we’re always looking to create a personal connection with our customers. It’s, it’s exemplified by our packaging. What, what do you put in every 

[00:14:38] John: package? Every package Get, uh, taken there from me and Candy.

[00:14:43] Mark: So when you buy from us, right? You, you as a customer, you, you’re gonna get great socks. We’ve got 30,005 star reviews. But you are helping us employ people with different abilities. You help us give back. You help us spread happiness that’s embodied in the package. So when you get a package from us, you see John’s smiling face in the outside, you open it up, you get your socks, you get a thank you note from John.

[00:15:12] Mark: On the flip side of that is the story of John’s Crazy Socks. You get a package of candy and on the packing slip you see the picture and the. Of the person who picked your on. So you are not just getting socks, you’re getting this little dose of happiness. Right. That’s, that’s one, that’s one of the ways we do it.

[00:15:36] Brent: That’s good. I’m also a believer in that, uh, happiness has to start with the organization. It has to start with the staff and the staff then bring it out to the customers. It can’t happen the other way around if. A bunch of crabby staff, you’re, you’re never gonna have happy customers. Now how are we gonna 

[00:15:50] John: spread 

[00:15:51] Mark: happiness?

[00:15:51] Mark: Right. And it’s, and it relates, you know, we see it in the way people work here. Um, they believe in what we’re doing and they’re committed. So they go the extra distance for our customers, right? And it, and it frames the relationship. You know, you, you’ve heard the line, the customer is always right. Nonsense.

[00:16:14] Mark: The customer can be dead. , but we’re not in the business of being right. We’re in the business of making that customer happy, so we’ll do anything we can. We, the people that work directly with customers, their, their title is Happiness Creator. They know they can spend 200 hours on any customer for any reason at any.

[00:16:38] Mark: We give things away. We refund money. Um, we give a guarantee, a two year guarantee of happiness. You know, two years you’re happy with the socks. At any point, you’re not, you don’t have, we don’t want your socks back. We’ll make it up to you and, but here’s the thing. Here’s why it’s good business. What do we get out of that?

[00:16:59] Mark: We get happy employees. We get happy customers, we get loyal customer. and our return rate, our refund rate is less than 0.3 of 1%. Right. It’s good business. So they’re great stocks as well. Yeah, you have to, the social mission matters, you know, when people, frequently they want to talk to us about hiring people with different abilities or the giving back, but at its core we have to be at great e-commerce.

[00:17:34] Mark: You gotta have a great website, you gotta have great selection. The products have to be great, and the service has to be great. So we do same day shipping. An order comes in today, it’s going out today. You’re gonna get it right away. We frequently hear from new customers how surprised they were and how quickly they got their product.

[00:17:53] Mark: We do better shipping than Amazon and Jeff Bezos over in Amazon. He’s not putting a thank you note in candy in his packages. Right? It’s. And we do that in part cuz we want to show why it makes business sense to hire people with different abilities. So we’re able to achieve this because of whom we hire.

[00:18:16] Mark: Um, and we want, we want the world to see that. . 

[00:18:19] Brent: Yeah, I, you mentioned the five pillars, and I’m gonna just point out to ’em from that. Often businesses, I, I feel like businesses overlook at least two of them. The social and the environmental. Certainly there’s a lot of businesses that focus on environmental.

[00:18:32] Brent: I think there’s less businesses that’s focus on the social. And then you did, you mentioned community as well. I think a lot of businesses, especially business owners, tend to overlook the community side of it. Maybe you could touch a little bit. On the community side of it. And then, and we, if we have some time, we could talk a little bit about the environmental and the social.

[00:18:53] Brent: So social. Well 

[00:18:54] Mark: let’s talk about community and defining community. So part of our community are working with people with different abilities and so we’ll do that’s important to. So we make products that celebrate causes, raise awareness and raise money for those causes. And we, and, and that also drives our giving back.

[00:19:18] Mark: So in that community, we started by pledging 5% of our earnings to the Special Olympics. And, and why the Special 

[00:19:26] John: Olympics? I, I pick Athlete 

[00:19:29] Mark: John’s been doing Special Olympics for 21. No Special Olympics. There’s no Johns Crazy socks, but, but we have these awareness socks. What was the first awareness sock?

[00:19:39] Mark: You 

[00:19:40] John: created Down Awareness 

[00:19:42] Mark: Socks. And they raised money for the National Down Syndrome Society. So that’s part of the community. What can we do to advocate? What can we do to support them? But there’s also the local community and we’ve gotta be good. And we call it corporate citizens. So we work with the local schools.

[00:20:03] Mark: We host school tours coming through here in work groups. We’ve had more than a thousand students come through here on tours. You, we get involved in the local chamber of commerce. Um, we get involved in our local towns and the local community cuz we have a presence. This is where we live. And I, I think that’s important, uh, that, that you play that role.

[00:20:28] Mark: It comes back to spreading happiness. , what can we do for others? The more we do for others, the better off we are. And then, oh, by the way, it turns out to be good for business because people know us. So they order direct and we, we, we sell to other businesses. So we get companies calling us up because they want custom socks or they want to give packaging services.

[00:20:51] Mark: We offer, or we’ve created a a, uh, a charity fundraising program. Uh, it was great for, for nonprofits and so PTAs and special education PTAs like that. And I’m sorry, I didn’t mean to sell stuff, but you were asking, you know, why do you do this? Um, that’s why it’s 

[00:21:12] Brent: all of a whole. , you know, I, I get that. Uh, I, I volunteer for a running organization that helps incarcerated, formerly incarcerated people, uh, start changing their lives through running.

[00:21:24] Brent: And one of the things that we’ve noticed is that the community aspect, the fact that you’re talking to somebody and sometimes you’re spending an hour or two hours with them, that that community is even more important than the running part. The running part is just a byproduct of the community. Right. Um, and I, I, I.

[00:21:43] Brent: Y you’re saying you’re, you’re telling the same story that the community is, is maybe as important as the business itself and, and making sure that you’re maintaining that and being part of it. You’re not just sitting there in your own little perch. 

[00:21:58] Mark: No. It’s our, our overall strategy is drive the mission that drives our brand and that drives sales.

[00:22:10] Mark: But it starts with that focus on, on others, you know, on what can we do for others, what can we do for you? If we have that focus, the business will follow and it’s more sustainable. 

[00:22:25] Brent: Um, I I, I just want to key on that. So what can I, what, what can we do for you? I think a lot of times, um, a, a lot of times business leaders often get that back.

[00:22:38] Brent: Especially with their own team, they’re saying to their team, what can you do for me? Right. As a, as a leader, I think the, the trajectory should be, as a leader, you’re always trying to serve others rather than trying to get something from others. It’s, 

[00:22:55] Mark: you know, you talk about servant leadership and if you, if you ask about our role, well, some of our role is to set the vision and the tone in the overall direction, but other.

[00:23:07] Mark: It’s to serve everybody else. I work for everybody else here. My job is to put them in a position to succeed and to give them what they need. Oh man. 

[00:23:20] Brent: That, yeah, I just, 

[00:23:21] Mark: yeah, go ahead. I think that’s the type of leadership we need. It’s, it’s not about self-aggrandizement. It’s not about beating your chest.

[00:23:31] Mark: It’s about what can I do for others because that multipl. The impact. And that’s really what lets us get things done. 

[00:23:41] Brent: Uh, talk, just take a few minutes and talk about just the name John’s Crazy Socks. Where did you come up with the name? I mean, I know John is sitting there. What your name? I’m 

[00:23:53] Mark: John. John. Um, he’s the one who came up with the name.

[00:23:57] Mark: He said, we’re gonna sell crazy socks. John’s Crazy Socks. Um, we have upon occasion, , we thought that a little bit because of negative mental health implications. But in the end, even if it says become somewhat anachronistic, it’s about the joy and the passion and the energy. Um, and it’s John, right? Yeah. Dad, I did suggest Mark’s Murray sauce for Mark Sirius socks, but that was going nowhere.

[00:24:33] Brent: Yeah. Mark Sirius socks doesn’t have the same ring, does it? Um, so if, if you have, um, if you had a little piece of nugget or some kind of advice, I hate the word, we don’t use the word advice usually in entrepreneurship or in our preneur group. We’d like to, we like to say we don’t should on people. We like to share experience.

[00:24:53] Brent: If you could share your experience on helping others understand why those five pillars are so important in your business. Is, is there anything that, that you could offer somebody to get started? 

[00:25:07] Mark: I, I do. I, you have to. I, I, I believe this. You have to know what you are about. You have to know what your purpose is.

[00:25:16] Mark: That becomes your north star and your values help keep you on track. So when you get tossed ass over heels, as you will be, you got your North star, you know where you’re going. Well, here’s a concrete example. So we roll into 2020, and then you may have heard, we get hit by a pandemic, right? It was awful.

[00:25:45] Mark: For our business, it cost us hundreds of thousands of times. What do you do? Well, as long as you know what you are about, you’re gonna be able to steer the weight. . So we knew first we had to take care of our colleagues. We could stay open, but we had to make sure we took care of everybody’s health, particularly because so many of our colleagues were vulnerable.

[00:26:09] Mark: Then you say, okay, how do we adapt to this? Well, we do a lot of speaking engagements. We moved those online. We moved our tours online. Turns out that opened the. . We now have student groups from around the world come and take tours. Um, we make socks. What could we do? Well, we made healthcare superhero socks to say thank you to frontline workers, and those raised over $50,000 to the American Nurses Foundation’s Covid 19 fund, because we knew what we were about.

[00:26:48] Mark: But then you also say, all right, well our mission is spreading happiness. How do we do. In a pandemic. Well, we did something new. We sold mask. But how do you spread happiness? So what do you do every Tuesday 

[00:27:03] John: afternoon? Uh, every Tuesday I hold, I dance, pray every, every Tuesday. Um, Is the time 

[00:27:11] Mark: he hosts an online dance party.

[00:27:13] Mark: Yes. What better way to spread happiness. And we started a Facebook live show. You know, a voter shut down. How can we reach people? How can we share some happiness? And that’s, we still do that. And that’s evolved also, we now have a podcast. Um, so you don’t immediately say you’re a sock company, you should have a dance party.

[00:27:36] Mark: But if you know what you are really. , then you can adapt no matter what the circumstances are. Right? And and for us, yes, we’re the world’s largest sos but at the end of the day, we’re not really a soman. The SOS become the physical manifestation for the mission and the story. 

[00:28:04] Brent: Yeah, I like that. Um, John and Mark, as, as we close out the podcast, they give everybody a chance to do a shameless plug about anything you’d like.

[00:28:14] Brent: What would you like to plug today? 

[00:28:17] Mark: Well, where, ask for your support. Where can people find us? 

[00:28:22] John: I’ll go at john’s crazy 

[00:28:24] Mark: socks.com. Johns crazy socks.com. And here’s the thing, if you buy from us, you’re gonna get great sock. You’re gonna get whenever you want because we have such great choice. But more than that, you’re gonna help us hire people with different ability.

[00:28:43] Mark: You’re gonna help us get back and most of all, you’re gonna help us spread happiness. So that’s as shameless as we get. 

[00:28:51] Brent: That’s awesome. Thank you so much. Uh, John and Mark, I will put all these also in the show notes so they can find john’s crazy socks.com as a link as part of the podcast. And it has been a pleasure to speak to you today.

[00:29:06] Mark: Well, thank you very much. 

[00:29:08] John: Thank you so much.

Thank you for making it to the end of this episode of Talk Commerce. Please rate this episode wherever you download your podcast. We are actively looking for people to participate in the Free Joke Project. Go to talk hyphen commerce.com and sign up for your free spot on the Free Joke Project. If you are a business, I will do a 32nd elevator.

In the spot to help promote your business. That’s talk hyphen commerce.com.

Talk-Commerce-Scott-Moore

Forget Everything You Thought You Knew About Brand Collaboration with Scott Moore

Veteran Twin Cities marketer, Scott Moore thinks he’s found that most elusive of opportunities. A new way for businesses to reach the parts and touch the hearts of customers that the $300bn US ad industry simply cannot.

After a storied and successful career beginning at the legendary Fallon agency, rising to the top of marketing at Best Buy and then as CMO of Wynn Resorts, Scott has invested billions of dollars on every form of marketing and has seen every enduring and ephemeral 21st century trend.

Which makes his latest move one that we should all stand up and pay attention to.

Last year, bitten by the collab bug and smitten by the business opportunity, Scott left corporate marketing behind to launch Colaboratory with his co-founder Brian Bispala, formerly the CTO of Code 42.

Colaboratory is a marketing automation platform that makes it easy for brands of all types and stripes, shapes and sizes to meet, match and execute brand x brand collabs to drive growth and enhance brand perception.

In today’s episode Scott explains how;

  • Brand collabs cut through the digital clutter to create impactful and effective marketing in an age when marketing has been increasingly commodified. 
  • Collabs will counter a cookie-less future promising less creativity and a return to “bigger-takes-all” message bombing.
  • How a “collab marketplace” solves many of the friction points stymying brands as they try to get in the game.
  • Collabs are now available to all brands not just a tool that has been mastered by culture-forward brands in Food, Fashion, Sports and Entertainment.
  • Collabs help brands, “share and square” their equity across platforms and touchpoints, dimensions and domains.
  • Brand collabs enable brands to divide the effort and multiply returns as they expand customer perception and accelerate new product and promotional opportunities.

Today’s show is an insider view on how the best marketing brains are developing this new muscle, and masterclass on how you can too.

Brand-to-brand CoLab and innovative partnerships go beyond just creating a funny ad, like you see in the Super Bowl. That’s creative, but that’s ephemeral. It’s art. 

These Colabs that are being built today are conceptually interesting. They’re not just visually arresting.You’re like, wait a minute. What’s that? It catches your attention. 

We interview Scott Moore who is building solutions where you don’t have to be Jay-Z or the CEO of Nike to do a collab.

You shouldn’t have to be the president of Ralph Lauren. All brands should be able to say, Hey, these are my customers. This is what I’m trying to do with them. Who can I partner with to grow my brand.  

Unlock and Unleash the power of Brand to Brand Colaborations 

The Talk Summary

  • Scott is co-founder and CEO of Collaboratory, a venture back startup that helps brands connect to brands to grow their market more efficiently, more effectively with their partners.
  • I’m a former marketer, started an advertise, was the COO of a marketing tech company, sold to private equity, and then was the CMO of wind resorts. I’m now the CEO of High Alpha, a new business with my partner Brian Bisk.
  • Scott: I hired the team, defined a big space where such that if you win, you really win, and then went build products and experiences that meet your customer’s needs.
  • Scott says that if someone slaps you at a high frequency, it hurts. Brent says that he used to say the joke in the preamble and have a little laugh track that goes on behind it, but then he decided to just start telling the joke to the listeners.
  • Scott: I worked for Win, Wind resorts, and Encore, and they’re all world class companies. Encore Boston Harbor is like a full on Vegas style hotel at wind level of execution, five minutes from downtown Boston.
  • Brent: I’m interested in the collaboration space and Andy Hel has been helping me get informed and learn about it. We could also talk about entrepreneurship and getting funded, and yesterday I was sat next to a venture capital backed company who is going for his second round of funding.
  • Brand partnerships are more than just having your JBL stereo in your Pontiac Sunfire. They can be as big as McDonald’s Monopoly and Best Buy. Scott: It came to light through proximity, existing relationships, or serendipity. I don’t know how Senator Serendipity works, but it doesn’t fit to a 21st century world or 21st century marketing in any way.
  • In the market for love, the way we solved it was meet your, best friend’s sister. In the market for jobs, the way we solved it is through Indeed, and in the market for collectibles, Etsy does the same thing.
  • Scott: I can do better segmentation to figure out should they target you or me, and then I’ve got amazing pipes into your life. But I don’t remember a single ad from today, and that’s an age old marketing problem.
  • Scott says that he’s never bought a Clinique product in his life, but he has bought a lot of Crayola, and he noticed that the two brands have a shared audience. He says that if you can find relevant audience connections, you can fill in the gaps.
  • Scott: We want to build solutions where you don’t have to be Jay-Z or the CEO of Nike to do a collab. We want to do it in a software data-driven, technology kind of way.
  • Scott: In the past, a lot of these collaborations have been incidental or by accident. But now, as social media matures, influencers are still pretty strong, and Adidas knows their business and they can do it.
  • Scott: A TicTacs on TikTok is on fire, so leave that alone. The maturation means you’re paying a CPM cost per thousand when you buy media.
  • A partnership between any two brands can be very interesting. You could pick ’em, and the other brand may have an equal set of assets, but they may have a different spin on the customer audience.
  • Scott: There’s a lot of brilliant, creative marketing people across all organizations of all sizes, and there are ways to bring data to this work. Brent: There are risks and rewards to collaborations, but the ones that are well constructed tend to perform better.
  • Scott: Those ones tend to outperform Who I happen to know from high school. Brand partnerships and collaborations are the way to grow strategically, and we’re saying just let us, let’s role play back. Scott: Sometimes we smarty pants people get over our skis with all the rational, and we need to go back to the local third grade classroom and see if they even understand our strategy.
  • Scott: Let’s go to the third grade class. They can vote on whether or not to partner with the Rolling Stones, Justin Bieber, or Athlete A. And there’s no math.
  • Scott: I think collaboration opportunities have always been there, but they’ve been viewed tactically and opportunistically, not strategically. I think collaboratory is uncovering these opportunities, and it’s emanating from culture leading categories like sport, music, culinary fashion of course.
  • In my past life I worked with a RUM brand that had a partnership with the Boston Red Sox. I think that was a strategic rather than opportunistic collaboration, and the Red Sox are very strategic in how they grow.
  • Scott: That doesn’t sound super strategic, although it’s intuitively right. The Red Sox are very analytics focused, and if they said, Hey, look at what’s happening in our audience, aside from the fact they we’re performing, and we have the trend you just talked about, the twins, that is also true.
  • Great commerce and digital properties do three things: they create demand, they capture demand, and they help brands grow. The Red Sox need to create demand, and they need to tell brands and partners what they’re interested in.
  • We have a tool called partner capture tool that gets put on in people’s emails, on their websites that says We’re open to co. partner with us. We take all this demand, capture it, organize it so they can go through it quickly.
  • Scott: I know I’ve seen more than my fair share of bad ideas, but I also know what to do with them. The good ones we just sort calmly off they go.
  • Scott: So we have demand creation, demand capture, and demand activation. Once we decide two brands, they have to meet, assess, agree this match, go do these things, and then go mobilize whatever they’re gonna do.
  • Scott: I don’t know who has what capabilities, but Coca-Cola can do something in stores better than I can, and Netflix probably has better content creation. We collaborate with agencies, design firms, TikTok, makers, email, but it’s more based on the customer’s needs.
  • Scott: The biggest advice I would give a CMO or a cro or a CEO who wants to get started in a collaborate collaboration is that it’s not to start with hey, our first collab should be the Rolling Stones or don’t start. Start one.
  • Scott: You can get started in Collaboratory with a quick start. You can use the marketplace to capture signal, find like-minded partners, and capture signal back from the partners and their customers, and you’re just gonna be smarter. Scott would like to plug his book, but I can’t tell if that was on Coth.
  • Scott says that he’s building a business that connects brands, but he also needs to build a community of collaborators. Scott: People who think this way, who care, are massive inveterate connectors, like I just connect people all the time. I don’t really worry about the payback we used once a year, but I would connect you in general.
  • Andy Hele is leading the cultivation of a community of collaborators. If you’re interested in this topic and want to play, reach out to us and let’s make match.com smarter so you can stop targeting supermodels and start finding people whose interests are more like yours.
  • Going back to the rules of marketing, Scott says measuring is one of the three big things you need to do. He also says there are thousands of potential collaborations, including Mrs. Meyers soap and some scrubbing, something.
  • I wanted to build a relationship with Brady for that other purpose, but I thought TB 12 should be at the wind. Two years later, I run into their leadership team and guy comes up, he’s sky, we’re at the wind.
  • Scott: I’d much rather be paid a commission, but I felt some inherent joy in saying, Hey, this is a good idea. Brent: I think we need to take this seriously, use data, use a platform, be pay it forward in this, and trust that you’re gonna meet more innovative people.
Talk-Commerce-Laura Boyd

Leading a Culture of Trust with Laura Boyd

We are at a time when organizations are changing, and leadership is changing from a command control environment. Brent and Laura discuss the changing landscape of how leaders lead and how times are changing.

In this episode, we talk about accountability and how important it relates to communication in leadership. The leader has to be accountable to their team. Leaders can learn more about how a culture of trust is one of the most important aspects of today’s work culture.

Business leaders may think that all the recent layoffs are giving them opportunities for more hires, but the truth is that we are still seeing historically low employment. Now enjoy this episode of Talk Commerce with Laura Boyd.

What you will learn from this podcast

It’s about helping people with their resolutions, and it’s about having a culture where we’re helping one another and being accountable to one another.

  • Leadership is changing from a command control environment to a culture of trust.
  • Accountability is just as important as communication.
  • Technology allows for both good and bad connectivity.
  • Leaders need to have the confidence to be vulnerable.
  • Competence, compassion, integrity, and an emotional bank account are important for building trust.
  • Have open conversations and call each other out when needed.
  • External facilitators can help create a culture of accountability. Don’t burn bridges during exit interviews.
  • Use cultural assessments to gauge buy-in.
  • Have a Fresh Start program to help people with their resolutions.

Tweet about it.

Brent and Laura discuss how leadership is changing and how accountability is just as important as communication. #Leadership #Accountability @LeadershipLaura

Laura explains that to build trust, you need to have competence, compassion, integrity, and an emotional bank account. #Trust #Compassion @LeadershipLaura

Laura suggests holding a focus group to find out what is it that we’re doing well and what is it that we’re not. #FocusGroup #Feedback @LeadershipLaura

Laura: We want this open conversation, but you don’t have to be an ass, if I can say that. #Conversation #Culture @LeadershipLaura

Laura: We have a Fresh Start program that you can sign up for at the beginning of every year. #FreshStart @LeadershipLaura

Transcript

[00:00:00] Ruth: We are at a time that organizations are changing and leadership is changing from a command control enviroment. Brent and Laura discuss the changing landscape of how leaders lead and how times are changing. Brent what else did you talk about in this episode?

[00:00:12] Brent (2): Ruth, we talked about how accountibility is just as important as communication in leadership. The leader has to be accountable to their team.

[00:00:20] Ruth: Thanks Brent, I will add that in this episode leaders can learn more about how a culture of trust is one of the most important aspects in todays work culture. Business leaders may think that all the recent layoffs are giving them opprotunities for more hires but the truth is that we are still seeing historic low employeement. Now enjoy this episode of Talk Commerce with Laura Boyd.

talk Commerce is brought to you by content basis. Have you tried machine learning programs only to find, they give you repetitive garbage or worse information? Irrelevant to the context of what you asked for. Do you know if the content that you’re using on your website is even perform? Content basis exists to analyze, create, and measure the content that is crucial for your product or service.

Content basis analyzes your website analytics to learn what is performing well and what is not. We dig into your search history to discover what keywords people are using to find your product and services, and what keywords people are using to find your competitors, products and services. We create a content plan to help you deliver content that wraps around your most vital products and services.

And then we track the performance of this content, reassess it and make it better. Go to content basis.io to learn more. The Open Beta program is available to new users. Go to content basis.io talk. Commerce is sponsored by Haifa, or as the Europeans say. Or the right way to say it. HofA is rapidly becoming the biggest magenta front end after Luma.

For those who don’t know it, Luma is the basic theme that comes with Magenta and it is giantly slow. If you’re looking for a template based front end with the fastest loading times in the e-commerce industry, while saving costs on development time and hosting infrastructure, HofA is your best. Everybody loves a fast sight, including Google.

Improve your Google ranking and conversion rates and make your customers happy. Learn more@hyv.io. That’s H Y V a.io. My name is Brent Peterson and I’m your host. Please remember to subscribe wherever you download your podcasts and now talk commerce.

[00:02:52] Brent: Welcome to Talk Commerce. Today I have Laura Boyd. She is the CEO and founder of Leadership Delta. Laura, go ahead and give us a better introduction that I just gave and maybe one of your passions in.

[00:03:04] Laura: Excellent. Thank you Brent. I appreciate it. And I do have to say Brent is my brother’s name, so it should be easy for me to remember. So yes. My name is Laura Boyd, and I can give you a quick background. I have been in sales and marketing basically my whole career. Seven years ago, walked out and was trying to figure out what am I gonna be when I grow up?

[00:03:25] Laura: And what I realized is I have a really strong passion for growing organizations through leadership. And I am a strong believer in the fact that leaders make a difference in the organization and the culture. And so I wanted to build an organization for myself that could help other organizations thrive in a human centered culture.

[00:03:47] Laura: that would help them grow from the inside out. So that’s what we’ve been doing. Great. 

[00:03:53] Brent: Perfect. And one of you, you have a passion that you follow or, oh gosh, 

[00:03:57] Laura: When you own your own business, do you have time for passions? I don’t know. The only thing I could think of is I love working out and now I am a new empty nester.

[00:04:07] Laura: And so pickleball has become, Quite a phenomenon in, in with my husband and I. So I guess I’d say that’s my passion. I don’t know that. No, 

[00:04:16] Brent: that’s great. Yeah, pickleball. I I tried it a couple years ago and it was super fun. I haven’t en, I haven’t embraced it specifically, but I do enjoy playing pickleball.

[00:04:24] Brent: Laura, I know that we, in our green room, we had a quick talk about participating in the free joke project. So I’m just gonna tell you a joke and. And this one is it’s, we’re not going to, we’re gonna do this one as a, is this gonna help our work culture or is this going to lead into a worse work culture?

[00:04:41] Brent: And I found a specific joke just for this, so here we go. Excellent. I phoned my work this morning and said, sorry, boss, I can’t come in today. I have a we cough. He said, you have a, we cough. Really. Thanks, boss. See you next week.

[00:05:01] Laura: Oh, Brent. I’m trying to, I’m gonna see this one. It might hinder the culture. I think it might hinder it. I’m just saying 

[00:05:15] Brent: Yeah. Feel like we need we’ve Yeah, I think you’re right. And I, my, my delivery wasn’t the greatest. And and I think we could have used some kind of dramatic music around that one as well.

[00:05:24] Laura: maybe next time. Next time. The dramatic music. 

[00:05:27] Brent: I agree. All right, so let’s I know today we want to talk about a little bit about work culture and some topics around, around that. Why don’t you tell us your story, give us a little intro on your story and why this has become such a passion for you.

[00:05:41] Laura: , thank you this has become a passion for me because I think that we 

[00:05:46] Ruth: are in this transition of organizations leading from a command and control environment. 

[00:05:56] Laura: And I work with a lot of manufacturers, so I think that is how they have raised the generation of leaders that are there currently.

[00:06:04] Laura: It’s been very much a command and control type of scenario. Not negative or positive, but that’s just how it has been. But yet we have raised the next generations coming up in a different a transformational or more of a high performing type of generat. . So you’ve got leaders within organizations that have grown up in this command and control, and then you’ve got the new generation of leaders that are coming in from a high performing transformation type of background and how they’re raised and there’s a clash.

[00:06:39] Laura: And so it’s really interesting because you’ll have some people in this the current leadership who will call me and they’ll say, Hey, Laura, we have a problem with. Do you think you can come fix Bob? And I love that because we all know it’s never just usually, I shouldn’t say not never, but usually it’s not just Bob.

[00:07:03] Laura: It usually is the culture that has exuded and now there’s this clash. And so they don’t know how quite to deal with some of the consequences of bad behavior or desired behavior. . And so they build these cultures and they say, these are our values. These are the great things that we have in our organization.

[00:07:23] Laura: Oh, except for Bob. And so they don’t know how to reframe Bob and redirect him or say, this is not our desired culture anymore, and so you’re no longer the right fit. Now we can use it in a different capacity maybe, but not to lead other people. So that’s what we’re in is this transit. I got my master’s in organizational leadership in the late nineties, so I was like one of the first classes to get the organizational leadership bandwagon. And I love it because I think leadership hasn’t really changed that much to be honest. You could go back to, from my personal idea is you can go back biblically, right?

[00:08:01] Laura: I All the way. And it hasn’t really changed that much if you look at it. And so that was something that I was very passionate about, is how do you connect that human-centered leadership to move this transitional generation from here to here? That was a really long answer, but that is exactly what I love doing.

[00:08:23] Brent: So have two follow up on that. The first one is, do you think that there’s a, there’s gotta be some kind of a transformation in leading, in how we lead leaders, right? And that new leaders are going to be more in tuned with what the millennials, the people that are signing up for the great Reg resignation.

[00:08:40] Brent: The new leaders are gonna be more in tune to that. Do you think there’s a, there’s gonna be. Is there an issue with how the old guard is now bringing in the new leaders and how those new leaders are seeing what should be done and, but they’re not the original aren’t on board with that?

[00:08:57] Brent: Or do you think there’s a disparity in there? 

[00:09:01] Laura: I think this is the 

[00:09:03] Brent: question ahead. Okay. . 

[00:09:03] Laura: So here’s one thing I will say. So just because somebody has, I think you had said the old guard, but I think more of the command and control type of leaders, many of them are shifting so that transformation is happening.

[00:09:19] Laura: But there are still some that aren’t. And I think those are some of the leaders that the culture is trying to figure out, how do we change this? not possible. Or how do we get this person out? And so there are some transformational leaders within the current leader structure. And so I don’t know if that, if I answered that question the right way, is that what you’re asking me, Brent?

[00:09:46] Laura: Or is there a follow 

[00:09:47] Brent: up question on that? Yeah, I think a lot of times we look at how we’re leading and we look at the people where we are leading and that we don’t we discount the person who’s the leader because they’re, maybe they’re not in tune with the, I don’t know, the hierarchy of how the organization should happen, but I think the underlying thing that I heard in your, in what you’ve said earlier, , they’re not matching our culture and neither the culture changed or somebody hired him not to match the culture.

[00:10:16] Brent: I think that’s probably more of a root cause in that. . And how would you say to leaders that have that problem and is it a new problem or is it something recurring? 

[00:10:28] Laura: So I do think that every generation you’re gonna have a transformation or a transition technology. , as we all know, it transitions cultures and it transit transitions organizations.

[00:10:39] Laura: I do think that people forget about the culture when they are hiring, and especially today because we need people. And so sometimes wego ah, they don’t really fit, but close enough. And so then we hire ’em and they don’t fit at all. And then they end up leaving and they’re like, oh, why did they leave?

[00:10:59] Laura: I don’t understand. I do think that it is something that happens on a cyclical basis. I do think that cultures do change and the leaders have to change with it. And some of those leaders are able to do it, and some of ’em. One of the things I do want to bring up is that I’m talking more about the current leaders titled leaders, right?

[00:11:20] Laura: I think everybody can be leader, but the titled leaders, I’m talking more about them and we often say cuz they’ve always done it this way. They don’t want to change all of those kinds of things. The, I think part of the challenge is this next generation of leaders doesn’t give grace.

[00:11:38] Laura: They’re not very open to hearing, this is how we’ve done things. So there’s a little bit of a clash because we’ve raised them to push the envelope. Do this, do that. Be perfect. Focus on one thing, go after it. Whatever you want is yours. And a lot of times they don’t give enough grace, I think, to the current titled leaders.

[00:12:03] Laura: And that is a challenge too. And they have to know that too. 

[00:12:08] Brent: Yeah, no, that’s a really good point. On that. Maybe new leadership isn’t listening enough or it doesn’t have the concerns of the higher, I don’t know how to describe them, but the ones that are running the higher ups are setting the tone and there’s a shift, but maybe we need to have a more of a conciliatory view on how that shift is happening.

[00:12:28] Brent: Right, 

[00:12:29] Laura: absolutely. I agree with that 100%. I do call ’em titled leaders because I think you can be a leader wherever you’re at, doesn’t matter where you’re at in the organization, but these are the titled leaders. And so I, but I agree. Just as much as the titled leaders need to have compassion, the next generation of leaders need to have compassion.

[00:12:50] Laura: How do think help We forget about that. 

[00:12:52] Brent: Sorry. Yeah. How do you, no. How do you help people describe their culture? I think a lot of. The leader can’t even describe their culture. How do you get that into everybody? , so everybody is on the same page in terms of culture. 

[00:13:07] Laura: Yeah. So we actually, it’s interesting because when you have worked at an organization, let’s say 30 years, 20 years, 15 years, and you’re at this titled leader position, you see the culture differently than maybe somebody that comes in at more of a entry level position.

[00:13:23] Laura: And so what we do is we talk. if the more you can talk about culture and the more you can talk about desired behaviors, being part of that culture, the openness to doing it isn’t gonna make it be a taboo subject. If I continue to talk about culture and the, I’m working with an organization, we talk about the culture of accountability and leader.

[00:13:46] Laura: because accountability, I swear that comes up number one right next to communication as a challenge for organizations. And so this one organization I’m working with, we talk about culture of accountability and leadership. What does that mean to you? And so what we’ve done is we’ve taken we’re at about 450 employees from the leadership team all the way through frontline Super.

[00:14:13] Laura: and we’ve had that same conversation because we’re trying to create that. It’s not a taboo subject, let’s talk about it. It’s just culture. What is it that we want it to look like? How do we want to treat each other? What are our guiding principles? And so the more we can talk about it, the less taboo it feels and seems.

[00:14:32] Laura: And sorry, Brent, one more thing is there has to be consequences for people that are outside of a desired behavior. , there has to be consequences. Doesn’t mean it’s a termination, but something otherwise it’s not gonna matter. This particular organization, somebody came in and blew a gasket to five of his team members and in an appropriate way, and he actually was terminated and so that’s no longer how they wanted to operate in their culture.

[00:15:05] Laura: Now may it have, it maybe had worked 15 years ago, maybe. But not today. 

[00:15:10] Brent: Let’s just say the leader doesn’t, is talking the talk, but they’re not walking the walk. How do you get some accountability in leadership if they’re saying to be this way, but the leaders are demonstrating something different in a culture?

[00:15:23] Brent: Is that just that, is that just straight up toxic and it’s gonna lead to ruin ? 

[00:15:28] Laura: No, I don’t think it’s gonna lead to. I do think, this is why I think outside consultants or facilitators where there really isn’t any what’s the word I’m looking for? Not fear, but where it gives me the opportunity to say, is that really what you wanted to say?

[00:15:44] Laura: And I will call people on things in an appropriate manner, but I don’t have any skin in the game, so it’s easy enough for me to do. And that’s when we work with the leadership. throughout the process as we’re going from, top down across all of that. But working with that leadership team, cuz it has to start at the top.

[00:16:03] Laura: This is where the decisions get made at the titled leadership, but you have these centers of influence within it. So you’ve gotta figure out who are those people that are influencing either toxic or positive or, so you have to figure out from a social architect standpoint, what that looks like.

[00:16:24] Laura: So yes, I think it’s having those open conversations. I think it’s about the leadership team calling each other on things, and I am seeing that is happening and I think we’ve got a great group of current titled leaders. I think we’ve got a handful that aren’t amazing, but it really takes each person individually.

[00:16:47] Brent: Yeah, I think that’s a great point. We implemented e. Oh sure. About five, six years ago and having an implementer there was key to the success because nobody could push, or nobody could. It’s easy for a leader to not be accountable to something that they don’t want to be accountable to, cuz they’re the top of the food chain.

[00:17:04] Brent: It’s easy for that. If you’re talking about the culture, how do you not, how do you focus on the culture rather. focus on control of the culture. 

[00:17:17] Laura: Tell me more what you mean by that. 

[00:17:20] Brent: So you wanna make sure that you’re watching the culture, but you also don’t want to focus too much on control of the culture because the culture should be something.

[00:17:30] Brent: Built grassroots, right? Ideally your culture would come from the bottom up and the top down. . Is it a problem if leadership is trying to exert too much control over the culture and then in turn pushes a bunch of people out? 

[00:17:44] Laura: And that’s how you’ll know that leadership is trying to control it too much if people are leaving.

[00:17:49] Laura: I do believe though, when you look at high performing organiz. . There are five areas in the middle that they have direct control over, and the leadership team and the senior managers in that group, they actually own the strategy and the culture. It doesn’t mean that nobody has input and collaboration and all of that, but they own the strategy and the culture.

[00:18:11] Laura: That is what they’re responsible for. The rest of the organiz. Focuses on the structure, the systems, and the processes. And what they do is they bring that to the leaders and they allow them to make the choices. So they say, this isn’t working, this is working. Here’s how. It’s that kind of up and down, exactly what you said, but really the ownership for the strategy and the culture belong within the leadership teams. 

[00:18:42] Brent: Just going back to eos and EOS for the people who don’t know is entrepreneur operating system. So it’s a way of running your business or a systematic way. I one of the, it’s a systematic way and it is based on hiring people for their core values. And one thing that we do every quarter is working isn’t working.

[00:18:59] Brent: And I think one thing that maybe we miss out on, and I’ve heard you say this earlier, was how does that not working? tie in with the culture of the company, and then taking that one step further, how does it tie in with the core values? How do you help companies make sure that isn’t working ties in with culture, which should tie in your, to your core values?

[00:19:21] Laura: For one thing, and I know EOS has this too, I, I’m a firm believer that the entire strategy and the values and everything should be on one. , like there’s a focus area. This is how we do things. These are our guiding principles, right? And so I think if everybody has access to that and it’s communicated and there’s alignment and what that looks like, it’s easier to call someone out on something.

[00:19:47] Laura: If there is alignment, it’s been communicated. Then if you don’t really know or, Hey, I heard this is what our strategy is, or our culture is, but if you don’t have that and you’re not actually communicating it and have that alignment, doesn’t matter. So I think a leader’s role is really to set the vision, right?

[00:20:09] Laura: This is where we’re going build the alignment and then the execution. So those are the three pieces. And again, when I say leader, it could be anybody within the organiz. . But when we’re talking about vision, alignment, and execution, those are the three core pieces of top level leaders that need to address that.

[00:20:31] Laura: And again, I think it’s mostly Brent, it’s consequential challenges that people don’t want to deal with because so many people don’t like conflict and so they don’t, they just like what if I just ignore it? It’ll just go. Or they’re gonna retire in a couple years anyway. We’ve all heard this.

[00:20:48] Laura: So it’s that, and I know EOS has the same thing too. Let’s fix it right now. And if this is not the, get it, want a capacity to have it right. If this is not the right person in the right seat, then let’s find a different seat for this person. They’re very valuable, but maybe not today.

[00:21:04] Laura: And where we need them to. Maybe they were 15 years ago in this position, but not to date. We need their expertise to help us build this technical platform or whatever, to write out what the process is or whatever the situation is. 

[00:21:17] Brent: If a leader is struggling with a culture of trust, and you’d mentioned accountability and communication.

[00:21:24] Brent: How is there some simple steps that a leader could, or leadership team could start to assess that trust factor and then start working on building that trust? 

[00:21:38] Laura: ? Yeah, the, that’s a great question and because trust is a foundation of everything, every relationship you. Is the confidence. Trust is really, that’s the definition, right?

[00:21:49] Laura: Trust is my perception. Trust is the confidence you have in your relationship with others. That’s what trust is, the confidence I have in my relationship with you to do X or to do Y, and to break it down even further, when you talk about trust, it really has to start with me. I need to give trust first. As a leader, I have to be trust.

[00:22:16] Laura: And when you talk about trustworthiness, a lot of that comes from vulnerability, right? And I think that’s part of our challenge as leaders is, I know how we grew up. It was you don’t make a mistake and you just work 70 hours a week, 80 hours a week until it gets done. That’s not what we’re dealing with today.

[00:22:39] Laura: And so we have to have that opportunity to be trusting in our virtual environ. , there’s a lot of trust that has to be given. Like I know that this person is working because I trust that person. And so I think, the trust has to be given first and you have to be trustworthy. And I look at trust as in three areas.

[00:23:02] Laura: One is competence, can they do the job? And two is compassion. Do they have compassion for themselves and others? And giving grace And that type of. Competence, compassion, and integrity, right? Do you do what you say you’re gonna do? And then you have this emotional bank account component of it too. The more you can fill someone’s cup or fill up the emotional bank account, the more likely you can make a mistake and it’s gonna roll right off.

[00:23:35] Laura: But if you are in a negative deficit and you make a mistake or you do something, . It’s hard to build that trust back up. And when you talk about emotional bank account, we work on this, it’s just saying, Brent, thank you so much for a job well done. Or Brent, I really appreciate your expertise. Or Brent, I appreciate you giving me a hand when I needed it.

[00:23:55] Laura: Whatever it is, it’s the small things. It doesn’t have to be this grandiose. Here’s your, million dollars Brent for convers. . It could just be small things that add home. 

[00:24:05] Brent: And so that communication part of it you mentioned the company with 400 employees the leadership team can’t possibly talk to every single one of those employees, or they could, I suppose it would take some time.

[00:24:17] Brent: Is there methods in which that, or maybe you start with a one-on-one and then you move into a more of a scaled version of that. Is there ways to. Leadership, communicate some of those things to get feedback from their team? 

[00:24:32] Laura: I do think that it is important for them to have access to the leadership team, people the organization, to have access to ’em. Now, this one-on-one gets a little tricky because it’s just time. Time is of the essence, right? So I think when you do the connectivity, it could just be a town hall. , it could be that opportunity where I’m gonna, there’s three of us this month or this quarter, whatever.

[00:24:54] Laura: We’re gonna do a town hall meeting. Put your, send your questions in. That’s an option. Another one is when we go throughout the organization and build out the leadership development series, we have different leaders come in and do the introduction. So when they’re talking when they’re in front of the hundreds of people that are going through the program.

[00:25:14] Laura: They’re doing the introduction, they’re connecting with everybody at that level. I think that it is a challenge and an opportunity for the leadership team to look at focusing on the business, not in the business. And so when I say that, so many of our leaders tend to be technical experts, and that’s what they enjoy doing.

[00:25:36] Laura: So they like to just stay heads down instead of, that’s not your role anymore. Your role has shift. Where you need to be thinking about the organization as a whole and not just your area. So that’s a shift for some leaders also. But that, I do think that there’s a lot of opportunity. I Technology today has allowed for really nice connectivity and really bad connectivity too, cuz you can take everything out of context and you put your own story, thought or meaning behind something and it could blow up.

[00:26:07] Laura: And that’s oh, that’s not even what I meant. Technology’s good and bad, as always. Kurt Vank talks about that in his books in the fifties. But anyway, don’t get me started on that. 

[00:26:15] Brent: You mentioned a little bit about retention and, how we need to be attentive to the cultural needs.

[00:26:22] Brent: If there’s a high turnover. How do you get the new people involved in culture? 

[00:26:30] Laura: So if there is a high turnover, that’s a data. . So that is something where I think immediately some sort of focus group pulling out different people to have that conversation and finding out what is it, if we’ve got this culture laid out on our wall yet, we’re not living by it, we need to figure out what’s the gap.

[00:26:52] Laura: So what is it that we’re doing well and what is it that we’re not? . Right? So we talk a lot about what do you want us to stop doing? What do you want us to start doing, and what do you want us to continue to do? That’s a thousand years ago people have been talking about that, but it’s that ha that’s, it’s actually having that conversation.

[00:27:10] Laura: You’ll learn so much from the team members. But again, I think you need an outside person to come in and do it, because I think if you’ve got somebody from the inside and you’ve lost all these people, there’s a little bit. Fear paradigm they might be living in. I don’t know if I wanna share that. So is it’s easier to have somebody from the outside come in.

[00:27:30] Laura: Sorry, Brent. 

[00:27:31] Brent: No, it’s okay. Is there an easy way in an extra interview to get a leaving employee to talk about some of those? What’s not working? Okay. 

[00:27:41] Laura: So here’s how I think that most people see exit interviews. Most people, some people will share. a challenge, but don’t burn bridges. How often have we heard that?

[00:27:52] Laura: Don’t burn your bridges. Okay. So if that’s sitting in the back of your head, are you going to be truthful in what you wanna share? I don’t know. And quite honestly, the exit interview is passe we need to get in front of these people before they get to an exit interview, before they terminate and get to an exit interview.

[00:28:11] Laura: We need to get to connect with them ahead of. . 

[00:28:15] Brent: Yeah. That’s, that’s a really good point. Getting it before they quit. Is there something in the great resignation that has changed so much that maybe leaders aren’t understanding that?

[00:28:28] Laura: I think the great designation from everything I’ve read, I know that there are a lot of different opinions on it. I think the great resignation was a time when people. Reevaluated their life and what they wanted to be doing. And so a lot of times it wasn’t necessarily about the culture of the organization, but perhaps more about the role or that they wanted to do something different with their lives.

[00:28:58] Laura: Or they decided, I’m done. I’m retiring, we got enough money. This is how I wanna live. I. , I don’t wanna work anymore. It’s too stressful. Whatever the scenario is, I think people got the opportunity to take a step back and look at their lives and evaluate their lives. So that’s my take on it from everything I’ve read.

[00:29:17] Brent: I think that’s a really good point. I think that some leaders have now taken the opportunity as an excuse for high turn. and they just point to that the industry standard is now whatever it is, 60% turnover, some crazy high number . But I do feel as though there’s a place that we can find common ground.

[00:29:38] Brent: A as we, as you started out with, we can find common ground with the whole team to build a culture that. Do you think that we have to start shifting? I guess we, if everybody’s leaving, there has to be, there has to be a shift in culture. And if your attrition rate is so high that it’s affecting productivity.

[00:29:55] Brent: Cause I think also that pro productivity and retention are the two highest things that can lead to profitability. . So having some focus on that is gonna, one of the most important things a leadership team should examine. How would you say that

[00:30:11] Brent: you get feedback from the team and also you mentioned the in it’s too late in the exit interview, anonymizing some of these things. So the old idea of having. Little thing next to the time clock where people can put in their anonymous feedback. Is that a good idea? 

[00:30:30] Laura: I go back and forth on that because I would hope that people are in a culture where they can have those conversations, and that’s what I would say most people would wanna get to.

[00:30:42] Laura: I think this generation of leaders that’s coming. That is gonna be something that’s important to them, and they’re gonna build cultures out like that. I just think of my own kids who are in college and I just, I think they have such a different mindset that it will get to that point where they’re just speaking truth, right?

[00:31:01] Laura: They’re just speaking, but it’s about the delivery, which goes back to the emotional intelligence. It’s about delivery. So we want this open conversation, but you don’t have to be an ass, if I can say that. The air , you just don’t have to be that way. It’s about being curious. It’s about having connection.

[00:31:21] Laura: So I think that hopefully we’ll move to that point where we’re having more conversations and more open conversations where there isn’t that fear paradigm that necessarily living. 

[00:31:34] Brent: All right, we’re running out of time, but one last question is, I know back, going back to us as a people analyzer, it would be great to have a Culture Analyzer tool.

[00:31:44] Brent: Do you know of anything like that to say, so you could, somebody could objectively this isn’t working. How can we apply each of our core values to that not working and run it through the tool and come back with a number? ? 

[00:31:57] Laura: Yeah. What’d be great? There’s a, an analyzer, an assessment for everything, Brent, you know that to be true.

[00:32:03] Laura: So there’s one that, I think it’s university of Michigan I wanna say is working, there’s an Ohio, anyway, sorry. But they’re working on a cultural assessment. There are a lot of ’em out there. Actually, when I started the business seven years ago, I was thinking of going down this path with an organization that, that’s what they did was cultural assessments.

[00:32:24] Laura: They’ve been out there. I think the challenge that I have with that is that leadership component needs to be there if you don’t have buy-in. Cuz I’m this believer, like you have to have awareness of something like our culture’s not working or what we have on the wall is not what we’re seeing here.

[00:32:43] Laura: So you have to have that awareness and then you have to have the desire to change it. So if the leaders don’t have a desire to change, it doesn’t matter what kind of assessment comes. but you have to have the desire to change it. And then the commitment, what does that look like? So is it bringing people in, having focus groups.

[00:33:01] Laura: It’s not just the pinball machines anymore, it’s really about what’s true about the culture, and that’s the commitment and then practicing and failing. So it’s really pretty easy though. Pretty easy. I say that those four steps, awareness, desire, commitment, and practicing it. 

[00:33:16] Brent: That’s very Laura, as I close out the podcast, I give everybody a chance to do a shameless plug.

[00:33:22] Brent: What would you like to plug today? 

[00:33:24] Laura: We have at the, at the beginning of every year, but it’s our Fresh Start program and it is just a micro version of you can sign up and it’s yours. It’s videos, it’s holding you on track. That’s something to consider. And you can go to leadership delta.com and it’s right there is the opportunity to sign up for that.

[00:33:48] Brent: Great. And I will put all those in the show notes. Laura, this has been a very fun conversation. Should I say enlightening is a good word. Fun and enlightening. How’s that? I. Very enjoyable to talk to you today. Thank you so much. 

[00:34:00] Laura: Thank you, Brent. Take care.

[00:34:03] Ruth: Listen, Brent works hard on this Podcast, he would really appreciate it if you could rate it where ever you download your podcasts. Don’t forget to go to Content Basis dot eye oh and sign up for the content creator beta program. It is a great opprotunity.

Talk-Commerce-Sherry Walling

How to Cope with Grief as an Entrepreneur with Sherry Walling

Sherry helps smart people solve complex problems. Sherry Walling is the one you call when you’re in burnout, feeling isolated, need to make a difficult decision, embroiled in a messy situation, out of ideas, and in need of a fresh perspective.

Her superpower is bringing calm to crisis and insight to chaos. Sherry has a Ph.D. in clinical psychology and two master’s degrees. Sherry has been an academic, researcher, psychotherapist, and best-selling author.

Talk-Commerce-Irina Poddubnaia

Win More Customers By Providing The Ultimate Post Purchase Experience with Irina Poddubnaia

Think about the last time you placed an order on an e-commerce site. You get a confirmation email, and what’s in it? Usually, only shipping and fulfillment information.

Most online stores provide limited information and miss an excellent opportunity to upsell customers when they are not expecting to be up-sold.

Irina Poddubnaia tells us how her solution helps store owners maximize their transactional emails and turn them into marketing contact points.

Transcript

Brent: Welcome to Tak Commerce. Today I have Irina Pad. Please go ahead, introduce yourself. Pronounce your name the way it’s supposed to be pronounced. Tell us your day-to-day role and may be one of your passions in life. 

Irina: All right. Thank you Brent. My name is Irina Pad. I’m from Bulgaria and I’m the founder of Trackage Dot.

Irina: We help entrepreneurs with post-purchase customer experience. So basically everything that happens after the buy button is Preston in eCommerce store. And when it comes to passions right now it’s public speaking and everything that’s related speak, just speaking and speak and singing as well.

Irina: So that’s one of my passions right now. 

Brent: Oh, awesome. Are you gonna sing for us? . 

Irina: It depends. , we’ll do one thing here, . 

Brent: We’ll leave that, we’ll leave it right to the end. So I did warn you that I have a project called The Free Joke Project, and maybe we should, we could do the free song project next, but we’ll do the free Pro Joke project.

Brent: All I’m going to do is tell you a joke and you can tell me if that joke should be free or if it’s one that we could charge. And since you did mention singing, I found a joke that has at least some reference to singing in it. Here we go. Did you know Mortal Combat is based on an old Scandinavian church song?

Brent: It’s a Finn Hymn.

Irina: That’s a good one. I I don’t know about if you should charge for it, but that’s a good. 

Brent: All right I’ll just one more quick one. Why is Pavlov’s hair so soft? Because he conditions it. Yeah, I know. They’re all really bad. I apologize. All right. So wouldn’t say that 

Irina: they’re bad. I’m just saying that Yeah.

Irina: This is like the hi and intellectual humor. It’s not 

Brent: just like it’s only for sas. That’s, it has to be smart people. All right. So let’s talk about PO I, I’m very interested in post transactional data and how you can get people and we are a magenta agency. My day job is work running a magenta agency and we’ve done a lot of work where in the card after they check after they ac even after they pay.

Brent: We like sometimes would the customers would like to hold that transaction and get ’em to buy something more. So tell us a little bit about your. And how it helps people post transaction. 

Irina: So what we do is basically, so I can just start from the beginning. 

Irina: And why they do that, because the conversion is from five to 10% of extra sales just from looking at the order status. So we helped like we literally just took this functionality and made it available outside of Amazon. So you can plug it into your store. That’s built with Shopify Commerce.

Irina: Magenta is in the plans. We don’t have a direct. , but we do have an integration with Zapier. So it’s possible to pass the data. So what it creates is it creates a tracking page where customers can see additional products the actual information about where order and when it’s coming to them and also the brand and social media accounts and the delivery information, whatever you want to put on the page.

Irina: It’s 100% customiz. And you can change all the bits and pieces of it. So it’s a drag and drop builder where you can literally just customize everything. So one other thing that I didn’t mention is that also those pages, they have localization. So if a customer is from a different country or if you are shipping internationally you can just customize the page with specific language.

Irina: That’s that’s region. Because we support customized emails as well. So emails can be in their local language when the tracking page can be in local language. So the entire thing. So what Trackage does is we are helping the customers not only understand with the like the package is coming to them, but also to see additional products while we’re where.

Irina: Browsing for the information they were actually looking for. So that’s how we help e-commerce stores bridge the communication gap and also lower the customer support load because people don’t have to ask the the question, the fail the question, like, where is my order? Where is my package?

Irina: That overloads customer support and e-commerce, so they don’t have to ask because it’s already answered. . 

Brent: So tell us some numbers. Do you have some hard numbers that kind of show how successful this is in terms of, it brings a lift on post transactional purchases by 10% or 15 or whatever that number is?

Brent: Yeah. And then all the secondary part of that question is, do you rely on discounts or coupons or anything else to bring in or do people just buying. 

Irina: Okay. I can tell you about our numbers currently. First thing that we measured is the open rate for the post-purchase emails that talk about the status of the order.

Irina: So basically we’ve seen the open rates around 60%. So that’s way higher than any marketing emails that you. . Another thing is that like from those emails customers, they visit the tracking pages one or two times per day when they are actually actively waiting for the order. Instead of just going through the email every time they just save the link and they go and visit it one or two times.

Irina: So during that time various sliders so what we’ve seen that then the sliders were. The conversion rate wasn’t that high. It was around like four, 5%, like it was on the lower end, but when they made them animated and they started moving the conversion rate raised to around 12, 10, 10, 12%.

Irina: Customers were actually, when we are waiting for the order, they literally have nothing to do. And they want to get the package repair waiting. But they don’t know how to facilitate that process. So instead, they are li left with just some free time and they start browsing the product.

Irina: And if the products are interesting the customers are buying. So we’ve worked with this influencer. They are creating an animated series. And this katoon gathered a very passionate fan base with free million follow. . It’s called Metal Family. If you want, you can check it out.

Irina: Like very cooling. And they have remarkable sense of humor, , so I would say so, and this fan base they were like when they launched their first comic book they were not prepared to handle like the amount of orders they were going to get because they printed the whole batch of 10,000.

Irina: And it was sold instead of two months. How we were projecting it was sold in one week, and after that they had to fulfill everything and what they’ve seen. So from those 10,000 orders like originally, wasn’t there, but we joined in be middle of this process. So from those 10,000 orders we’ve seen around 7% extra sales.

Irina: So that result around like 700 or that’s exactly what it. And so 700 text orders from the tracking page directly, but then we don’t measure the indirect sales. Some of the customers we were going through the logo to the website, we were going through the social media and then back to the website.

Irina: So that’s like the indirect conversion. So maybe it’s around 15% or something like that because we didn’t have the detailed analytics at that point. And what happened then? , the customers were waiting and instead of writing to customer support like they previously did because metal family, they were overwhelmed with the amount of questions they got.

Irina: Because the customers, they were, again, you can imagine this is a Katoon series. What kind of immature customers were there? So very immature customers were sending messages to all the social media accounts. We knew five messages from one customer, like every. . So they had to ease that pain.

Irina: So we had to ease that pain for them because once the emails started get going out and people were getting proactive communication, they stopped asking the questions and the customer support just co I don’t know, side with relief because all that enormous I don’t know, like a ton of sta questions.

Irina: Like it just went. So after that happened and the last bit of functionality and what we also helped metal family with was getting reviews. So at the end of the purchasing experience when the customer actually gets the order they, they experience this I dunno, like burst of enden when they open the package and they finally see the thing that we ordered.

Irina: And it’s the perfect moment to ask for a review. Because in most cases with what I’ve seen with e-commerce stores, they use just timed automation. So in two weeks there is an email that goes out asking for review. But what if in two weeks your customer hasn’t received the order yet?

Irina: And that happened to me a couple of times when I ordered from China or sometime from us. Like it, literally, like it asked me for a review when I didn’t yet get the product and when I’m fighting with the customs to get it out of , outta the post office. The idea is, so what we did, we configured the automation, the standard one and it started asking for reviews and every fifth customer left the review around five stars.

Irina: So that was 2,150 reviews from 10,000. . That’s enormous, I would say. And those reviews they can be used on the product pages, on the, I mean on the store itself and on social media. So there are a lot of ways how you can capitalize on social proof. 

Brent: So the social is the, is that how you leverage other customers to bring in 

Irina: more customers?

Irina: Yes. And we have one feature that is like the killer feature, but it’s not yet. Then the customer review is four stars and more. I think we’re going to make it configurable so that you can adjust the threshold. So if review is positive we will ask the customer to share it on social media with reach media, for example like video or a photo of them interacting with the product.

Irina: So let’s going to probably get some sales from. I’ve seen some companies that were capitalizing just on oh, you were going to post review anyway. How about you get some like some money from the brand that you’re posting it for? So yeah, there are quite a few companies that are focusing on TikTok commerce.

Brent: Yeah. Are you focusing then on making are, so they get an email and then they go and open up the email to go to this, to, to the custom tracking page or? Custom tracking page that you’re generating automatically there right 

Irina: after checkout. The custom tracking page is going to be available the entire time how it’s set up like technically.

Irina: When the store signs up the trackage and they install one of the apps, or they just configuring integration with like the third party. . We will get the tracking page inside of Trackage and you can create multiple tracking pages. By the way if you are promoting different things or if you have different brands.

Irina: So you can configure tracking pages for every occasion. And the tracking page, it’s standalone. You can put it on your custom domain or you can use trackage domain and you can plug it in anywhere. It’s responsive, so on mobile and on desktop, which works seamlessly. The idea is that page is always there, but the content based on who is looking at that page changes.

Irina: So they can look by the order number or by the tracking number that they got. And if we don’t remember both, they can enter their email and they’re going to get an email from Trackage that’s going to send them their tracking page. So this way we. Just this is a security feature. Because if we were allowing them to just look up any email, that’s not a very secure 

Brent: feature.

Brent: Yeah, that makes sense. I’m interested in your own journey. In your bio that you moved to China without speaking Chinese, and you ran a fulfillment company and then you now. You’ve launched the SAS company remotely without any funding. Tell us a little bit about that journey.

Brent: Like how did you end up in China and then are you back in Bulgaria now? 

Irina: Yes. I’m back in Bulgaria for the last six years. And that journey to China, it started just by me feeling adventurous. I. Because at some point in my life I was just working in an office I was selling frozen berries in bulk.

Irina: So it wasn’t a very exciting job to tell you the, like to tell you the truth. And at that point I thought that I knew everything about commerce and how videos are done because I was selling the. , like ev, everything, like in trucks and even higher amounts. So we, we had never sold any ships, by the way, because that’s a lot but the trucks, yeah.

Irina: And I thought that I understood everything like with bills of lading how the deals are them, how to accept the payments, invoicing, everything. But that wasn’t, When they came to China we found the the variety of suppliers of everything you could imagine. There were literally plazas.

Irina: Those are skyscrapers of like full to the brim with goods of various kinds, like a plaza for smartphone accessories. That’s not an exaggeration where it is a whole city of like smartphone accessories. You could literally just find everything. What we realized at that point was that it’s not about the suppliers, it’s about the customers, because we didn’t have that many customers at that point.

Irina: When when we came to China and we found all the suppliers, we found how to work with them. We figured everything out. We still were forced to understand marketing, to reach out to customers, to do the prospecting selling, and that’s. and that’s how we were surviving. So we figured out the pay dads and it was the full experience because we had to survive based on how well the business performed.

Irina: We didn’t take any funding ever. We didn’t even know what was a possibility. That’s right. . So that’s how my like Chinese adventures came to an end when we lost one of our biggest customers. And then we felt like overwhelmed with all evaporations and like packaging the boxes. Because again, for two and a half years my main occupation was to go to a warehouse to accept the goods, to pack the goods, to ship it to the logistics company, to negotiate with suppliers check.

Irina: And I even stopped speaking English that much just because we were working with Europe and like it wasn’t necessary. And I, like all the time I was exposed to Chinese, so my English kind of went. . So yeah, at some point I realized that’s not what I want to do in life. I wasn’t born to package boxes.

Irina: That’s not something that I want to do. And that’s when this part of with Johnny ended and after that we moved back to Bulgaria. We. like we were. Yeah, at that point we were very discouraged because like we attempted to work, we attempted to create our own business. It wasn’t the next Amazon unfortunately, or even the next early express.

Irina: It wasn’t like. Yeah. And that’s when we realized that we could do something with the tools that we developed for ourselves while we were in. So everything from inventory, acceptance keeping track of all the shipments keeping track of all the orders and yeah, we just wanted to bring all the experience with Beca to a better cause and make it available for our e-commerce entrepreneurs to use.

Irina: So that’s how Trackage was born. And that’s how it’s still there . . 

Brent: Yeah. It’s interesting that a lot of these great there’s a lot of great tools that get developed in-house and then suddenly the entrepreneur who’s selling something realize that they have a great CRM or inventory management or whatever that tool is, that software tool, and suddenly they’ve decided their own, their old business is no good and here’s much better business.

Brent: Do you feel as though. Branching into a whole new culture helped you be more competitive. I just did working in China help you be a better entrepreneur when you went back to Bulgaria? 

Irina: You know what I definitely can say uh, happened is that I lost my like rose tinted glasses. So I started actually looking realistically at the world of business and.

Irina: it’s un like we, like at the beginning of a journey, we lost unfathomable amount of money. Like with just purchasing own goods or just, I dunno, like the logistics partner losing the packages and who knows what else. We experienced all the hardships of working with people that we didn’t know anything about.

Irina: And we didn’t have experience with all those different products that were ordered from us because we literally offered to buy anything from China, from us. And that’s that was probably a mistake right now I realize it was probably a mistake. We should have niche down. We should have just studied with niche, understood the quality requirements found with West suppliers, and then just scaled that.

Irina: But instead, we just went broad and developed the tools instead of developing the. . But again that’s a learning experience. I I will never say that. I’m not glad it happened. And after that I now realize how important that is to understand the customer before the supplier, because there are a lot of suppliers, but the customers, they are the backbone of a business.

Irina: And if you don’t have any sales, you don’t have a. That’s 

Brent: easy. One. One of my experiences with buying products from China is that documentation is often just Google translated. Do you find that same type of, did you find that, say I’m assuming you sold products to Bulgaria and it was maybe they put, they did a Google translate into Bul.

Brent: Into Bulgarian and nobody actually, no humid actually read. read the text. Is that something that is overlooked in China or is it something that that people just don’t think is important? I’m, and I’m just saying specifically language, like we, you get some products that are coming from China that are just translated into English, and it’s clear it was done through a machine.

Brent: It wasn’t nobody actually read it. Who’s an English? 

Irina: Yeah. In case of our deals I was translating everything, so that wasn’t the case. So yes, I did remember when we got some materials, they were very poorly translated. And I did have to, I did have to spend a lot of time to adjust, rewarding and to literally make something out of.

Irina: The cluster of words or keywords that I received as specification. So that was fixed by me, basically. And I remember how we were creating all the documents just because we were requirements of the customs, not because the suppliers provided them from the suppliers. We literally got big thank you and the goods

Irina: That’s all we got from it. So yeah I believe the problem literally exists. But I think with AI tools that are currently on the market, you can adjust that. And the translation tools were also getting better. Then we were in China communication was done just for the mobile phones.

Irina: We were writing in English and showing them some Chinese characters and they underst. I think right now it’s, it would be through Google Speech or something like I’m going to talk to the tool I dunno, Skype maybe. They introduced some on the fly translation. So I think right now it’s much easier to communicate anywhere in the world.

Irina: But at that point it was challenging. 

Brent: So your experience coming outta China and then into Track Ma and. I know one thing you’ve said about Trackage is it helps the merchant put their store more on autopilot. Just can you explain how it, how that works and how it, I know you’ve said that there’s less customer service involved, but it can’t always be a hundred percent autopilot.

Irina: That’s why we’re not saying that 100% of customer support requests are going to be automated because if the customer has a question about the size chart or about the customs clearance or something like something was shipped to wrong location, you still need to have customer support and you need to reply to those customers.

Irina: But all the repetitive questions, the ones that can be answered by robots, Like the, where is my order? The limo request. That that one can definitely be automated. And with automation, literally, nobody’s going to ask you that question because it’s not going to be an issue for the customer.

Irina: They are already going to know when, like, when the order is coming, where is it where is it coming from? I know what carrier it’s shipped through. And also they will have information about the delivery, very funds, whatever information you want to put on the tracking page because the more information you give to your customers will less likely they are going to reach out.

Irina: Whereas some illiterate people who are still going to go to customer support and ask a question, I I totally understand that there is going to be a percentage of people who are still going to not understand what’s going. But that percentage is going to be minuscule compared to the previous amount.

Irina: So that’s just like the customer support side. A lot of automation is also coming from operation side. So for example, with chi, with Chinese suppliers we had to deal with this interesting situation where the supplier is providing you with a tracking number or the information about the.

Irina: But then the tracking number doesn’t have any tracking information, so that means the tracking number is either incorrect or the product has not been shipped. And if for example, this situation is left unattended for a week or two, the customer is going to get anxious, we are going to start asking for very money back.

Irina: So we had to monitor all of that. And that’s how in Trackage we have two counters. They is an idle and they in. So days in I is counting until the package is actually moving. So until the status in transit appears on the package. And the other one days in transit is counting how many days it’s in transit whatever the package got lost in the post.

Irina: So this way the business can proactively reach out to those customers who were unfortunate enough to experience a deliver. And if it’s in the initial stage of communication with the supplier, they can reach out to the supplier and ask like, where is the package, when they’re going to ship it?

Irina: And if a supplier is unresponsive for where is an issue, they can even refund it and find an our supplier to buy product from. That’s specifically handy for a drop shipps for hours. It’s not we handy, but still you can poke your suppliers or even knock at where doors and. what package it should have been shipped three days ago.

Irina: What’s going on? 

Brent: Yeah, a really good point. A lot of ERPs will generate a tracking. They’ll generate, the package has been shipped even before it gets to the post office, or UPS picks it up and UPS doesn’t assign a tracking number until they’ve actually taken possession of the package.

Brent: So that’s a great feature right now, yeah. And if you were to offer some, bit of advice to a merchant going into the holidays right now what could they still do and what should they be doing after the holidays? 

Irina: The holiday season is rather challenging for commerce, so it just literally creates an overload of shipments and overload of everything like processing.

Irina: So I guess , my, like most straightforward advice ladies keep saying keep calm , because this is going to pass, but right now you need to operate at 100% efficiency, 100% capacity. So I guess that’s so that’s wise. But after the holiday season is. You can examine and do some postmortems for some of the problems that you experienced during the holiday season.

Irina: You can see which carriers failed which carriers you might want to replace with an alternative one. . I know that on social media, there are quite a few people who are talking about diversifying the shipment volume between not just FedEx, u Ps like the like the two major carriers.

Irina: You could try our ones and see if this improves your cost per shipment or the cost like the overall margin as well. So another thing would be to evaluate your customer support after the. And see where the customer support might have failed or might have failed the communication with the customers.

Irina: Because usually during holidays people want to buy presents and if they become very sensitive to the timelines of a shipment. So if a person is not going to get their Christmas socks, for example, we’re going to be very upset. And the customer support needs to handle that and be mentally prepared that we are going to be customers with delayed.

Irina: Yeah. And the most interesting part would be to evaluate your systems overall. So once the holiday season is over, once you see over weak points where the systems are not working as you expected them to, you can definitely I dunno. Start evaluating which systems are lacking in your tech stack.

Irina: Maybe tech majors lacking Yeah. Something of a similar fashion where you can see all the orders and all evaporations on one page and understand where you are still not efficient enough. So just basically do the fine tuning when it’s below season in January or in February.

Irina: It’s the best time. Start implementing some new changes because during the holiday season, you will not have the opportunity to do that. 

Brent: Yeah that’s really good advice. Never make changes during the holidays or after October, maybe. code lockdown for people who do on-prem software. Irina. When we close out the podcast, I give everybody a chance to do a shameless plug about anything you’d like.

Brent: What would you like to plug? 

Irina: All right. I would like to gift the listeners of top Commerce Podcast the free resource. It’s called How to Get five to 10% Extra Sales from existing Customers without spending more money on ads or hiring more staff. In this book you can see like all the key ingredients for creating the best post-purchase experience for your customer.

Irina: And definitely you will understand what things are lacking in your current post-purchase experience. And you can either implement them yourself or maybe use Trackage for that purpose. Yeah. And you can find it at trackage.com, slash flywheel dash extra sales. And I hope that in the show notes you can also find.

Irina: . Yeah. 

Brent: Yeah. I’ll put all those I’ll put all the, all your links in the show notes how they can get in contact with you and and and of course track ma.com. Thank you, ARITA. Thank you so much for being here. It’s been such a pleasure. Thank you for staying up late. And thank you.

Brent: It’s my pleasure.

Irina: I love talking about e-commerce and what you can improve in your supply chain and post-purchase experience. Thank you for the opportunity.

Thank you to Podcagent for the wonderful guest!

Talk-Commerce-Alejandra Santos

Looking Forward in Finance with Alejandra Santos

Have you ever wondered what the difference is between an accountant and a finance person?

An accountant looks backward, and a finance person looks forward.

Alejandro Santos helps us to understand the complexities and the simplicities in accounting, why you should be looking forward more than you should be looking backward, and how vital that finance person is in your organization.

Transcript

[00:02:46] Brent: Welcome to this episode of Talk Commerce. Today I have Alejandra Santos. Alejandra is the c e o and founder of Startup Tandem. Alejandra, go ahead, do an introduction better than I just did. Maybe tell us your day-to-day role in one of your passions in life. 

[00:03:03] Alejandra: Oh, thank you so much Brent, for the introduction and for having me here.

[00:03:06] Alejandra: I am very excited for today’s episode. So my day-to-day means a lot of meetings, talking to clients and steering them into good practices with their financial. And with the finances in their business, and taking long walks along the beach with my dog and , trying, if I have the opportunity to take a meeting to the beach, I will absolutely do that as well.

[00:03:27] Alejandra: And a passion of mine. I just, I have so many, but I’m gonna say since we’re talking about dogs, passion is to rescue all the ducks from the streets and put them in beautiful homes. . 

[00:03:36] Brent: That’s a, that is a great, that’s a great venture to do. All right, so Alejandra, I did warn you that I’m going to do this free joke project.

[00:03:43] Brent: I’m gonna tell you a joke and you could just tell me if you feel as though the joke should be continue to be free, or if you feel like we could charge for the joke at some point. Okay. Here we go. Never date a tennis player. Love means nothing to.

[00:04:01] Alejandra: I think that one’s free. Okay, , 

[00:04:04] Brent: thanks. Thank you so much. All right, so Startup Tandem. Tell us a little bit about how you started Startup Tandem, and why you started it. 

[00:04:13] Alejandra: Yeah, so thank you for that brand. Startup tandem. I’ve been doing accounting and finance for 15 plus years. I actually bred into it after I gra I graduated college, I did the wealth management, and then I went into corporations, big companies, nonprofits, and it was when I moved to California that I went into entrepreneurship as an employee.

[00:04:32] Alejandra: Internal employee is an external consultant working for. One of the competitors, not what it is now, a competitor of mine. And it was there that I realized a big gap that existed between the services that were provided, two entrepreneurs when they were building their businesses to exactly what, the price was for those services.

[00:04:50] Alejandra: And it just didn’t make any sense to me. So that’s why I created Startup Tandem. A startup Tandem is a supportive partner of four entrepreneurs in when they’re in their. To start a business and as a startups and all the growth level, that maturity, some clients are making 80 million in revenue.

[00:05:07] Alejandra: Some other ones are making one $50,000 in gross revenue. It just, it really doesn’t matter where you are in your journey. We are committed to become that partner that can set you up at least with a good infrastructure and take you all the way until you scale or until you’re ready to hire internally. So that’s exactly what we do.

[00:05:23] Alejandra: We set up entrepreneurs with the tools and the resources. to help them in their finance journey and not just, give them whatever service. It’s not a one size fits all. It’s customized to its company’s growth. 

[00:05:35] Brent: When you start with an entrepreneur or a new business, do you see them making common mistakes in, in, in their accounting practices or bookkeeping, things like 

[00:05:44] Alejandra: that?

[00:05:45] Alejandra: A hundred percent. So one of the biggest pitfalls that I see is that they’re not on top of, Just general bookkeeping. And they don’t have really good policies in place. By that means that there’s no AR policy or AP PO policy approval policies in place. There’s a lot of personal expenses go flowing through the company.

[00:06:03] Alejandra: And, They do their taxation, their taxes according to their bank statements rather than a financial statement. And it’s not really until they have the urge to bring an external investor, an external partner, or they’re trying to get into a very big line of credit or some kind of debt financing that actually puts them urgency.

[00:06:22] Alejandra: To, wow, I gotta clean my financials now because we’re gonna look at that. And at that time, at that moment, you’re really 10 years into the business or five years into the business, and you’re looking at a high cost. Just to go there backwards and then forward to clean those financials is a big mess and it takes a lot of money out of your pocket.

[00:06:42] Brent: Do you find that a lot of entrepreneurs aren’t necessarily versed in accounting and maybe they don’t underst. what payables are and what receivables are and even the sense that, hey, I’m suddenly, I’m amount of money, but I have a whole bunch of inventory to you. Help them with some of those 

[00:06:58] Alejandra: pieces.

[00:06:59] Alejandra: Oh, 100%. And yes, what we do, a big portion of what we do with our marketing and resources that we offer is education. Just because that is a thing that we do see in the industry. There is no urgency in. in financials, in financial management, in accounting, and knowing what your numbers are. So a lot of it goes with educational videos, educational resources, why you should do it, why it works, why you should, this is a big component of your business.

[00:07:27] Alejandra: We. Definitely focus on that as an early stage company. Even though you cannot afford, if you cannot afford a full service yourself, we definitely wanna set you up with the tools and infrastructure, the policies to help you get into a good regimen. And, if you wanna do it yourself, you can, do it yourself, but at least you have something to go buy.

[00:07:47] Alejandra: And then when it comes to inventory, that’s a big pitfall that I see, especially for e-commerce companies, startups, and businesses, is. They don’t have just with the basics, they don’t have a really good skew numbing clutcher. Which that means it’s like products. Some products don’t even have a skew, so it’s really hard to even track down what the levels of that skew is or that inventory product is if you don’t even have a good traceability on it.

[00:08:11] Alejandra: So yeah, there is a lot of things that I see pitfalls, but there is a lot of things that also systems and very low budget resources and tools can. Entrepreneurs gear to the right position. 

[00:08:24] Brent: You see a lot of entrepreneurs doing books or doing their bookkeeping as the last thing they wanna worry about, they just get it done.

[00:08:32] Brent: And I, you had mentioned that they just go off bank statements for reconciling they’re not doing cash flow reports and there’s so many more things that are involved in there. How do you educate ’em on some of those? . 

[00:08:42] Alejandra: So yeah, it’s really interesting. I get a lot of clients at the end of the year because they’re getting ready for tax season, and one of the big things that I get is, oh my God, my books are a mess.

[00:08:52] Alejandra: I don’t even have a set of accounts. Can you please help me out? Cuz the tax season is coming. And it’s great. Yes, we can definitely do that. However, When I asked them those questions that you just did, okay, so what is your cash burn? What is the biggest driver of your cash burn? What, those are the things that you have to know in order to make the right strategic decisions in your business.

[00:09:11] Alejandra: You gotta know all those drivers. You gotta know all those KPIs. So when I make those questions to them, it’s it goes like an. in the brain. Oof. Okay. I don’t know those things. Maybe I should know them. Yes, abso a hundred percent. And I try to get because in numbers it’s not for everybody, and especially when you are a business owner and you’re creating this amazing product, you’re very creative. You probably don’t wanna talk numbers. So when you’re very creative, I try to talk, in the level. Whoever is in front of me to educate them, okay, maybe you do need to know what’s causing that burn, because if you know that you can control that, you could probably put that money into this instead.

[00:09:50] Alejandra: Product development or a marketing expense, something that’s gonna drive revenue up, and that’s when they realize, okay, I do need to be more diligent with my financials. 

[00:10:02] Brent: are some, are there some basic from an educational standpoint that you help them with and say just in reporting balance sheet, p and l, cash flow statement, are there some just basics that every entrepreneur should know before they even start?

[00:10:15] Alejandra: Before they even start? Yeah, that’s a good one. . I even have friends that entrepreneurs, and I tell them all the time, get your stuff together before, please don’t give it to me like that. The first thing I say is try treat your business as a business. And your personal is your personal business.

[00:10:28] Alejandra: A business is basic. Don’t run your. Personal expenses through the business is just at the end of the day, you gotta look at the big picture. And if the big picture is, I’m gonna sell my company in five, six years, guess what? They’re gonna be looking at those ebitda. They’re gonna look at operational income and they’re gonna see what’s flowing down there.

[00:10:46] Alejandra: And if you put all their personal expenses flowing, it’s gonna destroy the valuation of your company. So I try, just keep the big picture, even if you don’t understand the technicality of it, just keep the big picture in mind as soon as you have a business. Go with the, goal. I’m gonna sell my business.

[00:11:01] Alejandra: I’m gonna go an I P O, and then work towards that since the beginning, from the beginning. And just that will give you a clear sense of what you should or should not do. And if you have a hesitation, then ask questions to someone that does. No 

[00:11:14] Brent: I think you mentioned how the banking system works and how they wanna look at your books.

[00:11:20] Brent: If you are gonna start, if you’re gonna try to get a loan it would also apply to, if you wanna sell your business or get investors how do you recommend somebody that maybe they’ve been in business for five, six years and suddenly they’re, they want to start making their books, is it a process to weed through the mess that a person may have made and then they, you need to get ’em on the, in the right.

[00:11:43] Alejandra: Yeah. So there is definitely a process, especially if you have been in business for a few years and you have done taxes according to your bank statements rather than what’s sitting on that, on those financials. There is definitely a process, especially because those years are already closed.

[00:11:57] Alejandra: I called them closed because. Taxes have been already filed. So it’s really how can I say? You have to talk to the person that file your taxes to, to see what kind of adjustments you have to put in those financials to match exactly what you did in your taxes. And let’s just say that most of the time, your taxes, the taxes that are done are show less revenue.

[00:12:15] Alejandra: Then what’s in the financials? And it’s just because it’s cash basis and there’s a lot more things that are happening on the financials that are happening in, the bank statements. Let’s just say that it’s, you have to go retroactively. So what we do is basically Reno talk to the tax attorney or tax prison that did those books and say, okay, this is where we are.

[00:12:35] Alejandra: this is a trial balance. Now what can we do to get it there and then go forward cleaning up the whole, financial set and make sure that everything that’s flushed out personal, from business is flushed out and there’s a differentiation on it. Because what happens is the banks will look at least two to three years, depending on the financial institution.

[00:12:55] Alejandra: To see, what, how much your gross revenue is. You’re gonna look at those numbers. So if we can make the financials as accurate as possible, and related to what was posted on the taxes and then moving forward as well, we can show some growth, then that can put in a better place, and that goes with investors as well.

[00:13:14] Alejandra: The same, they’re gonna ask for your, your financials. Most you don’t, you probably don’t wanna even share your tax return if it’s flowing through you with an investor it’s uncomfortable situation. So we would have to go back, clean it up, match it to that, and then go forward and show some kind of forecasting, increase in revenue.

[00:13:33] Brent: Yeah, I think that you brought up a really good point about how the tax how the bank statements won’t reflect your ar They won’t reflect your inventory, they wouldn’t reflect any depreciable assets that you have and how important those are for a business owner to know. And even for when you’re going to get a loan, the banker’s gonna want to know what your assets are outside of what the bank balance.

[00:13:56] Brent: maybe talk about some of those pitfalls that entrepreneurs fall into when they, maybe they’re not as educated around accounting as they should be. 

[00:14:05] Alejandra: Yeah, so that’s actually a good point, Brent. So there’s a lot of asset based financing and it’s very important to know that, especially if you are in e-commerce and you have inventory on the books So there is definitely platforms.

[00:14:18] Alejandra: I’m just gonna speak very, a few of them. I don’t endorse any of them by the way. There is a Shopify, there is PayPal capital there is Clear Bank. Those right there will finance against your cashflow revenue stream. But what some asset based institutions do, and you can do the traditional or the non-traditional way, which.

[00:14:37] Alejandra: Do you prefer the non-traditional way for small companies or startups because they’re a little bit riskier? They basically look at your inventory and see what the inventory turnover is and see exactly what the valuation on that in turnover is to finance against it. And what happens there is that if you don’t have.

[00:14:54] Alejandra: If you don’t have a clear, a clean inventory balance, meaning they’re gonna ask for warehouse reports, they’re gonna ask for, what’s sitting on the balance sheet ties into the warehouse and evaluation that’s sitting in the warehouse. Actually the same as in the books. And if you don’t have that really button up, you’re missing on a lot of money.

[00:15:12] Alejandra: And if you do get an untraditional institution, they, you’re probably missing on not right now, cuz there’s inflation. In the future you probably will be missing on lower, in a low cost of capital financing rather than going to a traditional institution. When they give you a term loan, which is gonna be really high with really bad.

[00:15:29] Alejandra: Payment terms. So there is a lot to unpack when it comes to the balance sheet financing. There’s your ar like if you have some really good contracts and clients and they’re valued at, let’s just put a number, 500,000. You can get some really good financing against that if you find a good institution that can give you good factor for that.

[00:15:47] Brent: On your website you list that you do services like bookkeeping and fractional cfo. Maybe explain to our listeners some of the differences, and if we started with the bookkeeper, you have a comptroller, there’s a fractional cfo, there’s a cpa. How there’s a lot of different roles that that a in financials that play.

[00:16:06] Brent: Tell us if you could just explain some of those differences and then maybe tell us what, how you help. Yeah, 

[00:16:13] Alejandra: no, thank you. So yeah, so bookkeeping is your, I’m gonna call like the very low level service. Very basic, can somebody coming in, making sure that your bills are there, your invoices are there, your payments are matching, your invoices very low level.

[00:16:28] Alejandra: I don’t like to really just offer that because I think the company does deserve a little bit more. Than just bookkeeping. I like the accounting, the whole accounting service for anybody honest. It doesn’t matter what your business growth is. And it’s because it not only makes sure that your books ar and AP are really up to par, but it’s also gives a little bit more insight on what your margins are and where you know, your, where your biggest drivers of expenses are.

[00:16:56] Alejandra: If it’s marketing or you. Probations or whichever one it is. So I like that one more. And each level, for us at least, we do have a CPA person and management, that manages the accounts and make sure that everything is up to par. We do have also staff and senior accountants that take care of the very.

[00:17:16] Alejandra: Low, low, the low budget task as well. And then when it comes to fractional, CFO is going forward, right? So one of the things that people need to understand is that accounting is, keeping the financials accurate to what’s going on right now. But cfo, f o means going forward. But in order to have a good forward overlook, you are gonna need accurate financials like the forward.

[00:17:40] Alejandra: journey is based on the actuality right now. A CFO person is somebody that will do those analysis for you, is gonna do an f p, and a analysis is gonna do a weekly cash flow. It’s gonna do some variance analysis, which is like budgets, forecast versus actuals, right? Where are you standing according to your forecast or your budget?

[00:17:59] Alejandra: And if we have to readjust the forecast to meet those numbers this person will help you navigate. What kind of KPIs you’re gonna need to reach, or what kind of KPIs you need in order to meet certain metrics or something like revenue goals. This person can identify, like I said, cash burn.

[00:18:16] Alejandra: Where is that cash burn coming from? If you are a company that’s bringing product from China or bringing, product from another country, what are your shipping costs? Is that like the main driver of your cash burn? What can we. To mitigate that cash burn. And it’s somebody that, when it comes to financial institutions, goes ahead and assess the risk of each loan or line of credit or any, o other kind of tool that you wanna get into.

[00:18:40] Alejandra: This is a person that will analyze and assess that risk that comes with it. And it’s a true apr, right? What exactly are the fees that my company’s gonna face on a yearly basis? Divide business with this company. It’s just, for all, anything that you need. There is, like I said, accounting is actual.

[00:18:55] Alejandra: So you need somebody that can make sure that every number in that book is actually, has a backup. If there’s traceability, there’s an a report. If somebody comes looking for answers, there’s something there. And then you, a fractional CFO is somebody going forward. How do we get to the next level?

[00:19:11] Brent: If somebody’s just starting let’s and they want, they, A year’s worth of books or two years worth of books, they’ve just done it on their own. How long would you expect somebody, like one of your team members to get them up to speed where it’s ready to. Start forecasting revenue, start for forecasting cash flow, things like 

[00:19:30] Alejandra: that.

[00:19:30] Alejandra: So it really depends. Let’s see, one year, two years, and they’ve done it all on their own. We would have to go and look at those books, make sure that, if there are any changes that we need to make. We do them in the current year. Talk to the tax accountant, like I said. And just honestly it takes a month or so to get the, to get us up to speed on like the accounting side.

[00:19:50] Alejandra: And then after that, because we need actual information, we need some really good, reliable information to do the forecasting. And then I would say like a few weeks after that, three weeks, we could probably have a model ready. We do models. Very differently than a lot of companies that I’ve worked for before.

[00:20:06] Alejandra: We don’t have a one size fits all kind of issue because everybody has, different business models and not also a different business growth as well. So there’s a lot of things that small companies don’t need and they probably find overwhelming. So we basically have standardized models already.

[00:20:23] Alejandra: We have a small model and we have a more complex model, and we adjust those models accordingly to the business. The, The business and the business model that we have. So with that being said, it doesn’t take as long to, to create something. But it does what could be that time delay would be the cleaning of the accounting and make sure that everything is reliable.

[00:20:45] Brent: What do you see from a mistake standpoint that entrepreneurs or business owners make when they are hiring somebody like you? and they want to try to cut costs at the same time. Is there places where you see people being cheap and maybe they should just spend the extra money on services to make sure that their books are right?

[00:21:07] Alejandra: Yeah, so I’ve seen different cases, so I’ve seen people. Hire full staff of marketing internal team, and overhead is one of those things that is the biggest driver of cost, especially for a small business. It’s one of the things that I look at. The first things that I look at are, do you have an office?

[00:21:26] Alejandra: How much are you paying for that? And how much people do you have in staff? Because you will be surprised. Fractional goes a long way when it comes to building a business. You just have to find the right partner. That’s what it goes with, everything, right? You just have to talk to people. getting a conversation.

[00:21:42] Alejandra: Go have coffee, vet them out, talk to their clients, talk to their partners, see how they’re reacting. But that would be one of the biggest pitfalls that I see is that these companies are spending a lot of money on employees, internal employees. With that comes and I don’t. Know if a lot of people are listening are in California, but if you are in California’s one of the worst states to have employees.

[00:22:04] Alejandra: It’s like the state is against you as an employer. There’s so many policies that you have to follow. It’s insane. So you could. , you could reduce that level of stress if you just go, find some agency or someone that does those services on the side and can be a good partner to you. The other one that I see is, like I said, if you are in e-commerce and you’re doing inventory is inventory wow.

[00:22:27] Alejandra: There is a, if you’ve. Find the wrong three PL company. Oh my goodness. There’s so much cost that goes with that. It’s just, and it’s a lot of cost to get out of it through PL and to get into another one. So research on the right three PL company is one of the biggest ones that I would suggest to do as well.

[00:22:44] Brent: As a business owner, do you recommend like a payroll service or do you recommend that the entrepreneur or business owner do their own? . 

[00:22:52] Alejandra: Oh, that’s a good one. So definitely a service, a payroll service. I honestly, I like everything. I’m not very techy. I like everything that’s very user friendly, user interface friendly to me.

[00:23:03] Alejandra: And I like the ones that are targeting startups because, they basically provide a lot of support and that companies do need and they’re not very bureaucratic, like older. Payroll software providers are but I’m not, I’m not here to recommend anything. But one of the big, one of the ones that we use is Gusto is very user-friendly.

[00:23:22] Alejandra: It connects with different softwares. And then I also hear that ADPs going and. Connecting, doing a thing with QuickBooks coming up soon. So that’s, that could be a good one as well. I just think that when you’re starting a company, you wanna be very e easy, make your life easy with a lot of techno technology tools, cuz it gets really complicated when you have so many at the same time.

[00:23:42] Brent: Is there a, is there an alternative to QuickBooks 

[00:23:44] Alejandra: as a small business? Oh my God, there is. There is, but is, you’ll be surprised how many people use QuickBooks. I think 90% of the population, I use QuickBooks, so there is, but QuickBooks is just makes it easy for small business owners because it’s very cost efficient, and for example, there’s NetSuite, NetID is a really good platform. , but it’s expensive. And that’s what I am saying, and they do have an in inventory management already capability in it, which makes it a fully RRP system. However, it is very costly, and this is when as a business owner, you have to make those decisions.

[00:24:21] Alejandra: It’s What is the value added for the software that I will be buying is if I’m spending $30,000 a year for the software, what is the value that I’m getting out of it? How many employees do I have that are you gonna be using it? And then from there determine if this is worth the investment or not.

[00:24:37] Alejandra: So that’s where we go with the companies that’s. Probably use QuickBooks online because it’s very cost efficient. You can connect it with other tools, but there’s ma As you grow your business, I, if it makes sense, go for it. If it doesn’t make sense to put those 20, 30 grand in a system, then don’t go for it.

[00:24:55] Alejandra: Just continue, using tools that work for you. 

[00:24:59] Brent: Is there, can you highlight challenges? So you mentioned e-commerce in selling a product. Is there challenges in selling a service as a, as a. . 

[00:25:08] Alejandra: Oh, always. There’s always challenges. . Oh my goodness. There’s so many challenges. Yes. One of the biggest challenges, it is credibility.

[00:25:15] Alejandra: Making sure, obviously when you’re, when I see it from a small business owner point of view, when you is your baby, Especially the finances. This is go to finances. Oh wow, somebody’s gonna handle my finances. You wanna make sure this person is really vetted and wonder what they’re speaking to.

[00:25:31] Alejandra: And I a hundred percent agree with that. Also marketing service is another one. That is, there’s presents a lot of challenges because marketing’s all about results. It’s not about the process. While the finance and the accounting is all about the process. , about the results.

[00:25:43] Alejandra: So you just have to, it is always, there’s always a challenge no matter what you sell. For me, the biggest challenge is people like me, they talk to me, they meet me, they’re like, oh she’s very pleasant. But I look very young. I’m not gonna lie. You’re looking at me right now.

[00:25:56] Alejandra: I look very young and people are like, oh my gosh. She has that much experience. How old was she when she graduated high school? And when they look at my experie, My experience will talk for itself. So if you do feel like there is a way to vet more of your service, providers, you can always ask for references for clients, for partners, for, just to see what they’re doing for other people.

[00:26:18] Alejandra: And, at the end of the day is, find a partner that has flexibility as well. on a contract. If you don’t like them, goodbye, there’s no oh my God, you, I have to pay this. I have to do that. I have no, it has to be somebody that’s easy because at the end of the day, you’re is your business and you wanna make sure you have the right partners in place.

[00:26:36] Brent: If you had a piece of advice going into this fourth quarter in these high interest rate times to a business owner, what would that be? 

[00:26:44] Alejandra: Start looking to cut costs. Right Now, look at the areas of like I, we just talked a few about overhead costs, right? Unfortunately there is a lot of people being laid off right now because of that reason.

[00:26:55] Alejandra: But. It shouldn’t be that way if you were vetting your costs at an early, earlier time this year, right? Because inflation has been coming for a long time already. So just be proactive look ahead. That would be my first advice. Look ahead, look at your cash burn. Start looking into those weekly cash flow models that I always, you know, monthly cash flow models will tell you so much, but if you look at a weekly standpoint and see exactly what’s driving the number in, you will see there is a lot of areas that you can, lower down those costs.

[00:27:23] Alejandra: The other one is, it was probably better back a few months ago to get into a line of credit, Kind of use that money now, the interest rate are so high, I don’t even recommend it. Just start initiating those conversations with a lot of financial institutions to see what they offer in the near future.

[00:27:42] Alejandra: Because the, the interest rates will come down. It’s, as the government continues to push, they will come down at some point. So the cost of capital will, will become cheaper. Just start initiating those conversations now and be, prepare, be proactive in this time. 

[00:27:56] Brent: Yeah, I’ve always heard that the best time to ask for cash from a bank is when you don’t need it at all.

[00:28:02] Brent: Exactly. , when you absolutely need it, that’s when they don’t want to give it to you. . Yeah. You, you mentioned weekly and monthly cash flow models and that’s how you can help cut expenses. Do you, so you recommend looking at the detail within that cash flow to help you see where that money’s going?

[00:28:15] Alejandra: Yeah. So this is the thing with the monthly one. So the monthly is a very undirect cash flow model. It takes the activity of the balance. Just to see what’s happening. But on a weekly basis, it is very direct. And you can monitor that on a weekly basis. Just to assess where you standing and when is It tells you by week when your cash is running out.

[00:28:34] Alejandra: If you’re running out of cash on January 3rd, that’s when you’re running out of cash with everything else that you’re being forecast, you’re meeting those forecast numbers and it helps you be proactive in your budget If you say, okay, I’m running out of cash on January 3rd. , that’s not a lot of runway.

[00:28:49] Alejandra: We don’t have, external capital coming. Let’s cut down what are the budget areas that we can minimize to bring it to February, at least one more month. That it helps you be really proactive in identifying those areas of opportunity. And then if you need to ask, do a fundraising round, then it gives you at least that lag time.

[00:29:08] Alejandra: Okay, two more months to get really out there and ask for. 

[00:29:13] Brent: Perfect. Alejandra, as we close up the podcast, I give the guests a chance to do a shameless plug about anything you’d like. What would you like to plug today? 

[00:29:20] Alejandra: It is Black Friday coming up, so make sure that you have your inventory.

[00:29:27] Alejandra: If you’re using something like Shopify or e-commerce, make sure your inventories are set up correctly cuz that way you don’t have a future headaches in the, once everything is done, make sure that you have your follow ups correct, coming out to all those new customers, make sure that you have some retained strategy for the new customers coming in and purchasing your product.

[00:29:46] Alejandra: So I would just say there’s actually a blog from OK Kendo I can share it with you and I just head over. There is a few tips of coming from different experts on how to prepare for Black Friday, cyber Monday for you to make a lot of money and cut a lot of headaches. . 

[00:30:01] Brent: That’s awesome. Yeah, I appreciate that.

[00:30:03] Brent: We don’t often get different types of industries that you’re giving advice for. Thank you so much for that. Alejandro Sandro, Santo, sorry. is the CEO and founder of Startup Tandem. Thank you so much for being here today. 

[00:30:17] Alejandra: Thank you brand. This was so much fun. Mutual Gusto, .

Thank you for making it to the end of this episode of Talk Commerce. Please rate this episode wherever you download your podcast. We are actively looking for people to participate in the Free Joke Project. Go to talk hyphen commerce.com and sign up for your free spot on the Free Joke Project. If you are a business, I will do a 32nd elevator.

In the spot to help promote your business. That’s talk hyphen commerce.com.