Monthly Archives: July 2016

What Stopping Millennials From Being Loyal to Brands

Marketers can grumble all they want about non-loyal millennials, but that doesn’t change the reality that they’re going to need to adapt if they wish to capture this younger market.

New data shows that 18-to-34-year-olds do in fact want to commit to specific products and companies. A recent survey by Facebook IQ of 14,700 U.S. adults and found that millennials are 1.75 times as likely as baby boomers to say that they’d like to be more loyal to brands. The survey examined sentiments and behavior related to five industries: auto insurance, airlines, hotels, grocery and restaurants.

Millennials have different habits and expectations than their parents’ generation. Technology allows them to move around for work, and moving is 1.44 times more likely to be a barrier to them buying auto insurance than it is for boomers. The tech-savvy younger generation also expects to be able to get in contact with brands quickly, and it turns them off when airlines and hotels aren’t readily reachable.

When it comes to food, millennials seek cleanliness and healthiness. They are 2.5 times more likely than boomers to list a store’s hygiene level as a deterrent to stopping there, and they are twice as likely than boomers to cite a lack of healthy options as a barrier for dining at a restaurant.

Another aspect that might stop millennials from clinging onto brands is their finances. Facebook IQ found that survey respondents who report a household income of $150,000 or more are 32 percent more likely to be loyal than those who report a household income of under $35,000.

Millennials, according to the survey, were born roughly between 1982 and 1998. Many of them, especially those born in the ‘90s, have not had much time to build their careers and earn hefty salaries. This could explain why millennials are not as loyal as brands would prefer: They don’t have the money (yet). One company that looks to address this issue is Whole Foods Market with its new chain of 365 stores, designed to offer affordable products along with quality and transparency — other values that millennials prioritize.

Another demographic millennials have yet to fully transition into is the parent set. The survey found that new parents are slightly more likely to be brand-loyal than non-parents across industries. Forty-two percent of parents with a child under 1 describe themselves as loyal, compared with 36 percent of people with no children.

Perhaps when more millennials become parents, they will forego brand experimentation and become more loyal to hotels, restaurants and other companies that they know will provide the necessary amenities when they have their children in tow.

Luxe New Car Is a Volvo

Volvo — a carmaker not typically known for its flash — has unveiled a luxe version of its high-end S90 for the Chinese market. The move is part of a reboot under a new owner to position Volvo as a world-class exporter. These luxe cars and a handful of other models will be produced in China, not Sweden, where the company is headquartered. Some say the shift helps it better compete with other automakers in one of the world’s top markets.

The upgrade provide the Jeeves experience. First off, there’s no front passenger seat. In that seat’s place is a special console that can store shoes, serve as a footrest or give a backseat passenger with long legs space to stretch out.

The change (previewed at the Shanghai Motor Show in 2015) helps “meet the chauffeur-driven executive customers’ need to relax or work while on the move,” a Volvo design executive explained in astatement.

A backseat console includes a small built-in refrigerator. It’s large enough for two bottles of bubbly and comes complete with two handmade crystal glasses (from Orrefors, the esteemed Swedish glassmaker).

A fold-out worktable can keep mobile moguls productive as can a special display screen that appears at the tap of a finger (and can replace your laptop screen). The display can be used for work or entertainment, with a system that’s compatible with Apple CarPlay and Android Auto.

Of course, the car is semi-autonomous and its safety systems cover cities and rural areas. There’s even a feature called Large Animal Protection.

Affair of Bots and Bookkeepers

Business owners, be forewarned: The AccTech (accounting + technology) bots are taking over. But they’re not the towering metal giants or eerily humanoid robots of sci-fi nightmares. These bots are lines of code that grab information and communicate with humans about your business operations. They know (almost) everything before you’ve even whispered the thought, and they might want to take your bookkeeper’s job — or maybe just work alongside her.

I had a recent conversation with Jan Haugo, CEO and vice president of the Institute of Certified Bookkeepers USA (ICBUSA), who emphasized all the ways emerging technologies will transform the role of small business bookkeeping. In particular, we discussed how machine learning and artificial intelligence will enable accountants to interact with bots the same way they would with a human co-worker.

Accounting technology brands such as Xero are already capitalizing on this trend. It’s continued its innovation by releasing AI tools that will minimize — and ultimately eliminate — the amount of transaction coding businesses must do. This may seem scary now (at least for a few old-school number crunchers), but as technology develops and people cozy up to the practice, bookkeeping bots will continue their industry domination.

The evolution of your company’s bookkeeper.

Bookkeepers play a vital role in many organizations, but what happens when bots handle the flow of information and render several of their manual tasks redundant? The common perception of bookkeeping as a reactive role focused on tracking and managing data gets turned upside down.

Technology is reaching a point where humans don’t need to be involved in data collection and management. #ZeroDataEntry — meaning functions such as the recording of invoices can occur automatically and without human intervention — is quickly becoming a reality for many accounting teams.

The bookkeepers of the future (and, perhaps, the future is now) will go beyond understanding debits and credits and your business’s current software. Bookkeepers must be able to think about technology, address workflow issues and add value on the topics of finance and operational strategy. Evaluate the effects of tech on your company, and decide how your current bookkeeper fits into this future narrative. She can assist in future-proofing your business if you give her a chance to become that AccTech advocate.

According to Haugo, the U.S. lags behind other countries in this area, so how can you help to close the gap? With the shifting demands of the bookkeeper, do we have enough of the “right” candidates in the market? And what can you do to accommodate for this new role?

These are all important questions. So here’s some advice on finding (and retaining) bookkeepers who will drive your organization into the new era of accounting:

1. Know your skills gap — and fill it!

According to a survey of American executives, 45 percent believe a lack of skilled labor hinders growth, and another 30 percent believe it negatively affects their businesses’ profits. This is magnified when dealing with numbers professionals. So find out what’s missing, and identify the skill sets that are most critical to your company’s growth. Doing so will help you recruit the right people to fill the gap.

But don’t just hire a bookkeeper because your friend recommended her or because you share an alma mater. Instead, conduct your due diligence to ensure you’re building a strong, versatile team with each new recruit.

2. Recruit from a pre-vetted talent pool.

It’s more crucial than ever to hire and retain top-notch talent — especially when direct replacement costs up to 60 percent of the previous employee’s salary. But as a small business, you need people now, and you can’t rely on outdated educational institutions to generate the workforce you need. So start looking for candidates elsewhere.

If you’re not sure where to find top accounting talent, check out progressive industry resources. Accountex (formerly The Sleeter Group) and Xero invite top-level individuals to speak at their conferences. These panelists are change agents and leaders within the community, making them valuable additions to your network. If they can’t help you directly, they may have the resources to find the right person for you.

3. Go beyond the bank reconciliation.

Look beyond a candidate’s recordkeeping prowess or whether she can complete a bank reconciliation. Instead, ask if she’s familiar with Xero, and see if she can discuss any of the 400-plus apps that exist within her market.

Evaluate her attitudes around cloud accounting and the impact of technology on the industry. Knowing a few tricks with QuickBooks Desktop and Excel won’t cut it, but familiarity with Expensify, Hubdoc, Avalara or Zapier indicate an awareness of how tech transforms bookkeeping.