Top 10 tips to make daily deals sites work for your business

About to list a deal on a coupon site and not sure what to expect? With the massive impact daily deals sites have had on the SME sector in markets all over the world, merchants in New Zealand are looking for tips to best utilise the benefits of these sites to their business.

Colin Fabig, CEO LivingSocial and Jump On It Australia and NZ, says, “Small businesses recognise that the hardest part of business is generating leads. Daily deals sites carry out this hard work for you – but you need to be prepared for the new business that comes knocking.

“It is up to each business to structure the deal based on the money that’s coming in. With alternative marketing channels coming at a hefty price tag, daily deals offer good value.”

Colin Fabig’s top 10 tips for businesses using daily deals sites

1. Understand it’s a way to reach new customers: It’s best not to treat daily deals websites as a revenue stream. Listing on daily deals sites are a way to bring in new customers and generate brand awareness.

2. Do your homework: Know the date the deal will go live. Daily deals sites can reserve the right to post your deal at any time, but staying in close contact with them can save you from any inconvenient surprises.

3. Know your deal: Know the full details of the deal – what is being promoted and brief your staff. Don’t rush customers through – what you are seeking is return business.

4. Read the fine print: Understand your commission on each deal, and how and when it is paid to you.

5. Man your phones: In the first week, and especially on the first day, ensure your staff are briefed to take calls and make bookings.

6. Ensure you have the resources: Think about hiring additional staff to take bookings in the first three days, and prepare a script for them. This internal process is just as important as any external marketing.

7. Don’t let down your existing customers: Ensure you are prepared for the extra business. You need to provide the same high quality service to your existing customers. They will notice if you don’t.

8. Develop an ongoing strategy: Before the deal goes live, have sales and marketing strategy in place to create loyalty and maximise repeat bookings. Don’t use daily deals in isolation.

9. Take ownership of the process: Make it work for you on your terms. Only take on what you can handle.

10. Track the success of your deal: Collect information on purchases new customers make beyond the deal. This will help you determine the success of the deal and whether you should do it again.

Strategies for attracting and retaining talented staff

Every CEO and human resource manager out there better get worried. A research conducted by Consumer Insight that was released last week found out that money and the desire for success is the motivation behind the consumer behaviour among the youth. According to the report, children as young as nine years are yearning to amass wealth and live the lifestyle of kings and queens!

This is not a new problem, but it seems to be ever more critical. The question of attracting the brightest and the best is a key issue for successful companies. Today, with large signing bonuses and very attractive salaries and benefits, the more perplexing question is how to best build the loyalty of our talented young people.

Is it really expensive to have quality talent? Can you as a company afford the right talent at the right price?

The truth is that the war for good talent still rages! Good employees are becoming increasingly difficult to find yet there is abundant human resource globally. Employers of labour make efforts to create their own unique employee value propositions. Yet despite these propositions, organisations still lose critical staff to competition or fail to attract the right talent that can make a difference. Organisations sometimes unconsciously play the role of a training school from whom competition easily poach from. Once an employee signs on, within a few months, a few years if you are lucky, they start looking for other opportunities elsewhere. This is where you must mitigate as a CEO or HR manager. What must you do?

First, you must begin with the “As Is” analysis. This is a formal questioning of your employee value proposition.

It is done with the employee and potential employees in mind. There are questions that you must constantly ask yourself. What is it that employees really want in an organisation — especially your kind of organisation? What will make current employees be fully engaged/retained and like our organisation? What is it that fresh talents need in a company like your own? What will make a talent be ready to join your organisation and also stay with you? These questions are not easy for any organisation. But you must stare the monster in the eye.

Secondly, do you let each member on your team know how he or she fits into your company’s success and ever-changing environment? Do you know what each of your people wants and finds most important?

A recent study of exit interviews found that money was not the reason good talent was leaving. They wanted to be part of a worthwhile enterprise, be influential in decision-making, and create and contribute to mutually agreed upon objectives. High achievers want to be in contact and dialogue with the colleagues they respect. Identify ways to bring the best minds together. Successful people relish the opportunity to learn from one another and communicate on deeper levels.

When you set your quarterly goals, try goal alignment. Ask your team to identify the key stakeholders who could either support or impede their progress. Facilitate some meetings with other groups to seek creative ways to align goals and develop improved solutions. Top talent remains loyal when they believe there are chances for professional growth and challenge. Leaders should invest more time planning for these growth opportunities. You might identify cross-functional team projects where your talent can effectively network and work with different teams.

Third, taking time to coach and mentor your people pays off. Point out opportunities in their career growth like encouraging specific training. Don’t be afraid to ask them tough questions and guide them in finding the right path. Help them identify ways to leverage their skills and accomplishments. Encourage or sponsor them for professional organisations. Give meaningful feedback on how they can get ahead and be of more value to the company.

Catch them doing something right. Then catch them again and again and again. The more good talent we retain, the more we will attract.

And finally, you must create opportunities for team building. Team building, a process to enhance the energy and cohesiveness of a group, is one means of accelerating better communication. It helps focus a group on committing to common objectives, striving for high quality results. Team building is not something that happens in a one or two-day workshop. It is an evolving and integrated process. There must be a safe environment to have open, honest communication that is appropriate.

Having facilitated team building for 10 years, I’ve learned that there is no quick fix to team dysfunctions. Sometimes an outside facilitator can offer a fresh perspective and new strategies.

Gross Domestic Product First Quarter 2011

1. Economic performance

Kenya’s Gross Domestic Product (GDP) expanded by 4.9 per cent in the first quarter of 2011 compared to 4.3 per cent during the same quarter of 2010. This growth can be attributed to accelerated   expansion   in   activities   of   the   transport   and   communication,   financial intermediation and  construction industries during the quarter under review. The expansion was  also  supported by  growths  in  manufacturing,  wholesale  and  retail  trade,  hotels  and restaurants,  and  electricity  and  water  sectors.  The  most  remarkable  improvements  were experienced  in  the  hotels  and  restaurants  and  electricity  and  water  sectors  which  made turnarounds after contracting by 2.7 and 2.5 per cent in first quarter of 2010, to growths of 8.3 and 3.5 per cent during the same quarter of 2011 respectively.

The improved economic performance was despite the period being characterized by poor rains  and   high  energy  prices  which  to  a  certain  extent  restrained  economic  growth. Agricultural output, particularly coffee and tea had their production substantially depressed as a result of the poor rains. The quarter also experienced shortage and high prices of fertilizer and seeds for key food crops.

At the start of the quarter inflation was almost contained at the Central Bank's target of 5.0 per cent. However, inflation rose to 9.19 per cent by March 2011 and has since been rising.

Services contributed almost half (48.7 per cent) of the GDP while primary industries was second with a share 21.0 per cent. Secondary industries and taxes (less subsidies) on products contributed 15.8 and 14.5 per cent, respectively.  Primary industries comprise of agriculture, forestry  and  fishing  while  secondary  industries  include manufacturing, mining, quarrying, construction, electricity as well as water sector. The rest of the activities are categorized as services.

2. Sectoral analysis

2.1 Agricultural Sector

The sector recorded a slowed growth of 2.2 per cent in the first quarter of 2011 compared to a growth of 5.7 per cent over the same quarter in 2010. Subdued rainfall during the quarter led to the deceleration  in  growth as a result of decreased production of a number of marketed products, notably the volume of tea and coffee. Tea deliveries to marketing boards declined by 23.8 per cent in the first quarter  from 111.7 thousand metric tonnes in 2010  to 85.2 thousand metric tonnes in 2011 while deliveries  of coffee declined by 28.0 per cent in the first quarter of 2011 to 11.3 thousand metric tonnes.

However, there was an increase in the export of horticultural produce supported by improved external demand which consequently boosted production in the agriculture sector during the quarter. Exports of cut flowers increased to 21,887 metric tonnes in 2011 compared to 18,639 metric tonnes in 2010. Vegetable exports increased by 23.4 per cent to 16,184 metric tonnes in the first quarter of 2011. Over the same period, the quantity of exported fruits grew by 37.9 per cent to 6,499 metric tonnes from 4,712 metric tonnes in the first quarter of 2010.

2.2 Financial Intermediation

The sector recorded a growth of 10.9 per cent in first quarter of 2011 compared to a growth of 5.0 per cent in the same quarter of 2010. Notably, total domestic credit increased by 26.9 per cent during the review period to stand at KSh 3.9 billion compared to an expansion of 3.1 per cent in the same period  of 2010. Similarly, total credit extended to the private sector increased by 22.8 per cent during the quarter against an increase of 16.7 per cent in the same quarter of 2010.

2.3 Manufacturing

The value added of the manufacturing sector is estimated to have expanded by 3.2 per cent during the review period which was significantly lower than the 6.0 per cent attained during the same period in  2010. The slower growth was partly a consequence of a slowdown in some economic activities  among them processing of coffee, manufacture of motor vehicles tyres, soap, beer, and assembly of motor vehicles during the quarter.

2.4 Electricity and Water

The sector recorded a growth of 3.5 per cent compared to a negative growth of 2.5 per cent recorded  in the same quarter of 2010. The turnaround was largely attributed to increased production  of  hydro  electricity  whose  generation  is  comparatively  cheaper  than  that  of thermal electricity. The increase in generation of hydro electricity was boosted by the good rains experienced in 2010. Generation of thermal electricity declined over the same period.

2.5 Hotels and Restaurants

The sector recorded an impressive performance during the period under review by posting 8.3 per cent growth compared to a contraction of 2.7 per cent over the same period in 2010. The expansion was realized through increased arrivals of visitors at the Jomo Kenyatta and Moi International Airports.

  

2.6 Transport and Communication

Transport  and  communication  sector  expanded  by  6.5  per  cent  in  first  quarter  of  2011 compared  to a growth of 6.0 per cent in the same quarter of 2010. The growth was well spread  with  road  and  air  transport  recording  modest  growths  while  telecommunication expanded substantially mainly due to reduced call charges. The growth in the road transport was partly explained by the rise  in consumption of light diesel, which increased to 318.4 thousand metric tonnes during this period from 301.5 thousand metric tonnes in first quarter of 2010.

2.7 Construction

Activities of the construction sector expanded substantially mainly supported by increased bank  credit  for  real  estate  development  to  the  private  sector.  Consequently,  the  sector recorded an  impressive growth of 10.7 per cent in first quarter of 2011, compared to the dismal performance of 0.3 per cent in 2010. The sector’s growth was also supported by the massive road infrastructure  projects being undertaken in various parts of the country. The growth in the sector was also mirrored in cement consumption which significantly increased to 779.3 million tonnes during this period from 667.1 million tonnes consumed in the first quarter of 2010, representing a growth of 16.8 per cent.

3. External Sector

3.1 Balance of Payments

The Kenya Shilling on average depreciated against the US Dollar in the first quarter

2011 to an average of KSh 82.24 compared to an average of KSh 76.49 during the first quarter of  2010. The official foreign exchange reserves stood at KSh 343.0 billion by end March 2011 compared to 289.1 billion by end of March 2010. This was equivalent to about 3.9 months imports cover.

 During the first quarter of 2011, the current account deficit worsened to KSh 81.3 billion from a deficit of KSh 29.8 billion in the first quarter 2010. The current account deterioration was mainly on the account of increased value of imports coupled by weakening of the Kenya Shilling.  The capital and financial account recorded a surplus of KSh 50.3 billion in the period.

Export earnings increased by 19.8 per cent to KSh 118.1 billion in first quarter 2011 from KSh 98.7  billion over same period 2010. On the other hand, value of imports increased to KSh 285.8 billion over the same period, mainly on account of increased value of imports of oil, manufactured goods,  machinery and transport equipment and chemicals. Consequently, the merchandise account deficit worsened from KSh 107.8 billion in the first quarter of 2010 to KSh 167.7 billion in the first quarter of 2011 due to increased value of imports.

The services account recorded a surplus of KSh 40.3 billion in the first quarter of 2011 compared  to a surplus of KSh 42.7 billion in a same quarter of 2011. This was despite an increase of KSh 1.8 billion in tourism earnings during the period.

 4. Seasonally adjusted GDP

In order to measure changes from one quarter to the subsequent one, the estimates need to be seasonally adjusted. This is done at the aggregate level of the GDP rather than at the activity (sectors) level. Compared to the fourth quarter 2010, the economy managed a paltry 0.5 per cent during the first quarter of 2011.The movement of the unadjusted GDP index is more uneven compared to the  adjusted series because the former has the seasonal component which has been removed in the adjusted GDP series and therefore it only reflects the trend component.