01732 759725
46
VOX POP
Matt Goodall:
“I am sure that more
companies will sell out to the nationals,
but what happens is that the customer
sees a change from the local service that
they used to get to a national call centre,
and all that comes with that.
“We have seen how many of these
large companies acquire smaller companies
and as they progress, their reputation
become sullied and their service wains. The
end result is that the short term gain may
be beneficial, but the customers that don’t
get the service they need with look for
another local supplier as soon as they can
get out of their contract.”
Scott Walker:
“You will unfortunately
always get the odd one or two customers
who will automatically associate a past
bad experience from a provider. However,
the message mustn’t be that ‘it’s business
as usual’. Why should it be? Why would
you want it to be?
“The message must be explained to
customers that there is in fact change,
positive change…and that they support
their provider during this period of
transition. Small or big, no MPS provider
gets it right 100 per cent of the time…it’s
how you put it right that counts.
“I’ve had mixed messages across the
board from contacts. Some aren’t happy
about recent acquisitions, some are
indifferent, and others are embracing the
change to see what it brings. Change can
often be a positive thing…they just need
reassurances.”
Mark Smyth:
“I have experienced a
large number of acquisitions of varying
sizes over many years and you always
experience some movement of clients
and employees. Clients typically do not
welcome change and the integration of
businesses drives change which leads to a
potential impact on the client experience
with account management, administration,
billing process and service delivery. The
outcome can result in the client voting with
their feet and they go elsewhere.
“With employees it’s somewhat
different, it’s about matching locations of
services such as call centres, field engineers
and account managers, where there are
strong potential areas of consolidation
and efficiency. The location of services
both organisations provide does not often
match or suit the acquiring business plans
and or footprint of offices, and therefore
employees are subject to reorganisation.
Compensation pay plans are also a
contentious issue as they vary between
organisations and employees are forced to
either accept changes or move on!
“Business efficiency is a key and vital
component to acquisitions that comes
from integration and consolidation and
that’s what makes acquisitions a viable
formula for growth! I believe there is now
some market recognition that managing
an effective transition and integration of
organisations can soften the blow for clients
specifically and therefore minimise the client
impact, whilst improving retention rates
through the integration process.”
Andy Perkins:
“Consolidation gives the
remaining local dealers more opportunities
to utilise their ‘fleetness of foot’ in
structuring their offering to individual
users.
“So much of our industry is now
software orientated with both local and
national resellers making significant
investment in their IT support teams. The
local reseller is capable of personalising
software implementation and ongoing
support.
“The use of remote diagnostics is
becoming increasingly important, but
there is a danger that this will reduce
the personal touch that customers value
and the locally based dealers are better
positioned to maintain relationships with
their client base.”
Sam Elphick:
“I wouldn’t say there has
been much of a noticeable change in
recent months to the industry, despite the
consolidations which have taken place.
I believe as a ‘local’ print provider we will
still strive to offer the best service and
value to our clients and to keep up to date
with changing technologies and to ensure
our product portfolio is strong. It is difficult
to say if the situation may change should
more acquisitions take place – I guess it
will be a case of ‘watching this space’.”
Kevin Tunley:
“Given the number of
recent acquisitions by manufacturers,
it’s inevitable that there will be more to
follow. Manufacturers have seen that their
equipment sales have been increasingly
reliant on their dealer network and are
taking action to secure their route to
market, by creating or increasing their
direct sales capability.
“We are moving back to the majority
of sales being direct from the manufacturer
or via the new breed of super dealers,
which will inevitably result in a reduction in
choice for the end user. However, for all the
reasons mentioned earlier, there will still
be a market for the remaining local dealers
who can develop closer relationships with
their clients and add value to the sale.”
The use
of remote
diagnostics
is becoming
increasingly
important,
but there
is a danger
that this
will reduce
the personal
touch that
customers
value
...continued
PITR:
We’ve seen lots of consolidation in the industry. How do you think
the status quo has changed and will change as more acquisitions are
completed?
Scott Walker
Head of MPS Business Development
ZenOffice
Kevin Tunley
Sales Director
Midshire
