Target Marketing

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Target Marketing

In his guest post for this week, Ross Atkinson highlights the critical importance of technology when it comes to target marketing.

It is truly amazing how times have changed in the last 20 years! Dealerships have gotten larger through consolidation and spread further apart. The dealer is servicing more customers with less staff. Welcome to the world of running “lean and mean.”

The customers aren’t staying small either as they continue to expand in order to survive in this ultra-competitive world. As customers get larger, the likelihood is that someone other than the owner will be the one picking up or dropping off. The days of the customer grabbing a coffee, sitting down for a personal discussion and allowing you to get to know them better, is a faded memory of the good old days.

Technological advances can also be partly to blame for the lack of face-to-face interactions. It’s commonplace today for many transactions to be done without the need of talking to a salesperson by utilizing internet-based ordering systems. Let’s not forget, even if you do visit a bricks & mortar store, you may still have limited verbal communication with a human being considering the availability of digital lookup and self-checkout kiosks. And if the goods aren’t being delivered to your customer’s home or business, the conversation at pickup is trivial at best.

Even if we did have a need for human interaction, we have the next generation of workers who have grown up in an era of Facebook, Twitter and Instagram. It’s bad enough they don’t teach cursive writing or spelling in schools anymore, but with today’s youth spending countless hours in front of screens growing up, they are missing out on the opportunity to learn social skills with other people like their friends.

So as dealerships lose personal contact with their customers, they look to other means of communication and one of the few things available is technology. Using an automated, self-controlled method of recognizing certain conditions, a notification can be sent to the customer electronically or interactively. I call this “Target Marketing”. It is a term I use for targeting a single customer based on triggers or events that happen every day. Call it what you will, these kinds of systems are available today and can reach out to your customer through some form of digital communication like a text or email. It can let them know that their parts order has arrived or notify them when their machine is due for service. No more manually calling, no more busy signals, no more answering machines, and no more forgetting.

There are an endless number of “triggers or alerts” that can facilitate a communication to your customer. Words of warning though, do not go overboard. Ensure that the most important, time sensitive notifications take precedence. The last thing you want to do is alienate your customer by sending them 15 emails or texts a day.

Having this information sent to your customer’s fingertips can be very beneficial. The immediacy of the message sent to their phone or device allows them to take action right away. For the dealership, it eliminates the need for staff to take time away from their busy day to chase down the customer.

At the same time, the trigger and alert concept can also be used within the dealership to benefit the customer. When a work order is opened for a customer’s machine, wouldn’t it be important to know there is an outstanding recall?

Although the interactions between the dealership and the customer isn’t what it used to be, when you do get an opportunity to be face-to-face, take full advantage of the time to know your customer better. Wish them a Happy Birthday or thank them for their purchase. Ask them how they are doing and what’s happening in their business or personal lives. Your customers will appreciate the attention and interaction; you may actually learn something about them that will improve your relationship.

We should also consider what else computer systems can do to better understand and help the customers. With the collection and analysis of customer transactional data, you can get an understanding of specific patterns which may result in some form of target marketing for things such as bulk purchasing.

This same data analysis can also be significant for your dealership. It can help identify patterns such as peak order times so that you can staff accordingly or ensure that you have the appropriate stocking levels. It may even facilitate changes to your day-to-day business processes.

As you know, Ron’s podcast tagline is “The Time Is Now.” Well folks, if you want to keep in touch with your customers today, you better get on the technology bandwagon! The Time Is Now!

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The Digital Dealership: Comparing Equipment Presentation

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The Digital Dealership: Comparing Equipment Presentation

Tonight, guest blogger Mets Kramer continues to educate us on all the digital aspects of our business with The Digital Dealership: Comparing Equipment Presentation.

One of the Statements I have made repeatedly in this series is: “The average buyer does 85% of their research digitally prior to contacting the dealer” (Thanks @Charles Bowles). What does this mean for dealers?   In the most practical way, it means “Call for details” is dead. Providing information is critical.

In this blog, I would like to get each of you to do some research. Considering my statement above, which of the following websites or products would you feel ready to buy (assuming you needed it) based on the digital presentation of the product.

To get started I would like to look at the used passenger vehicle market.  This is one market we all have experience in, and one that has seen a radical change over the last 10 years.  It has also been a strong industry, leading the Equipment industry by 10 to 20 years, showing where digital technology is going in the future.

First let’s look at Carvana and CarMax, leaders in digital sales, presenting the vehicles they have for sale.

https://www.carvana.com/vehicle/1836344

https://www.carmax.com/car/19617484

Then Compare the Experience Here at a Toyota Dealer, which does a decent job, but is behind.

https://toyotaoffortworth.com/vehicle-details/used-2017-toyota-4runner-limited-JTEZU5JRXH5155428

Notice how Carvana and CarMax are highlighting issues to avoid surprises, providing delivery and a 7-day guarantee to handle risk and objections.

Which of these listings made you feel like you know enough about the vehicle?  It is a big step to buy your first vehicle without seeing it, for sure, but would seeing it in person really tell you more?  If you could not see it in person, which would you choose?

Now let us look at Equipment, the topic we all focus on daily.

Compare the following sites

  1. DeWitt Equipment Hitachi ZX-160LC-3, presented with images, 2 videos, details, and a PDF specifications document from Hitachi.

https://dewittequipment.com/our-products/2009-hitachi-zx-160-lc-3/

  1. Holt CAT 289D, presented with an inspection report and report from Electronic Technician, specifications, and images

https://holtused.com/2018-cat-289d-ces001277-near-austin

  1. Marcel Equipment CAT D6N – presented with images, detailed description and full repair and condition info.

https://marcelequipment.com/inventory/2016-caterpillar-d6n-lgp/

  1. 4Rivers CAT 320E, presented with 4 pictures and a short description

https://www.4riversequipment.com/shop/general-construction/caterpillar-320e-995554/

After Reviewing these different sites, which machines do you feel you “know” best?  Which one would you buy without seeing it in person?  More importantly, which machine would you be ready to contact the dealer about if you only contact dealers when you’re close to purchasing?

When presenting your equipment on your website you have the greatest opportunity to present the machine fully, since you control your site.  Your goal should be to present enough information to stop visitors from hunting around for more information.   You need to get them to stop scrolling or clicking, call, contact, email, etc. The best way to do this is to answer all their questions.

How would you change your website, to present your equipment better, with this in mind?

If you would like to review your website and look at how easily you can present your equipment with more detail, simply contact me at:

mets.kramer@strategicevolutions.ca  or (289) 680-6387

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Are Bricks and Mortar Going to Survive the Internet Era?

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Are Bricks and Mortar going to Survive the Internet Era?

 

During the past fifty years, most of my work life in this Industry, one of the most significant

‘barriers to entry” in the equipment industry, and in fact, capital goods industries has been the ownership and control of proprietary information. For instance, where to buy a part. A specific part, a bearing, for example, was purchased from an authorized dealer typically because the consumer did not know of any other source. Repairs and Maintenance were the exclusive domain of the authorized dealer for a similar reason. There was no availability for the independent mechanic to service manuals and technical literature. There clearly has been a radical change here hasn’t there? Just ask Google or another search engine whatever you want and they will typically have an answer. Even Alexa or Siri or Bixby will give you an answer on your cellular telephone.

Let’s start with some facts. In the US the standard in the retail sales Industry used to be 10 square feet of store space for every person in the country. In 1998, after a substantial increase in the square foot assigned to retail sales, the retail sales per square foot had dropped from $200.00/ft2 to $150.00/ft2. In 1999 the International Journal of Retail and Distribution Management reported that consumers’ shopping time was down 31% and monthly mall visits were down 47% with stores visited per mall visit down 57%. Clearly something was going on here.

While this was going on Amazon came onto the scene. They started business on July 5, 1994. From that launch date the impact that Amazon has had on retail sales has been nothing short of amazing. In 2019 Amazon had a market share of e-commerce in the USA of 52.4%, Non-US was 5.7% for a worldwide market share of 13.7%. In that same year, 2019, e-retail sales accounted for 14.1 percent of all retail sales worldwide. This figure is expected to reach 22 percent in 2023.

I first used the internet in 1973 through a Service Bureau in Canada via a business called I.P. Sharp Associates. Ian had direct real time access, on line, to all financial data worldwide through the stock markets. He also provided international associations, such as the World Bank, direct access to financial information. He later sold his business to Reuters who kept the news piece and sold the financial piece to what is now provided by Bloomberg. At that time there was no AOL. The general public was not on line yet. That is only forty-five years ago.

Today many business systems offer online “portals” for the public to search through for a part or information on a repair or maintenance for equipment. Today there are a multitude of businesses from whom you can purchase just about any part you need from an alternate source to the authorized dealer. In automotive Genuine parts through their NAPA stores is a direct competitor to the authorized car dealers. In many cases, as Forbes once called it “at a price that will make you weep.” In maintenance and repairs we have seen Mr. Muffler and Midas Muffler forcing the dealers into providing their off brand technical services like Mr. Goodwrench. In the construction equipment world in North America surveys are conducted nearly every five years and that data tells us that maintenance has been completely moved away from the authorized dealers. In fact, labor market share, depending on market area ranges from 8% to 15% of the total labor available. Of course, there are outliers in both directions. The parts market share is not more than 40% any more when in the late seventies it was in the range of 80%.

In 1980 one of the first internet-based buying options was brought out to the market. That parts ordering portal never achieved a portion of the dealer parts business in excess of 10%. Notice the difference between the Amazon model and our model. Amazon started with books and sold their books at a lower price than the local book stores. Even Borders, a major book store retailer was a victim of Amazon. They are no longer in business. What did Amazon do that the authorized equipment parts suppliers didn’t do. They lowered the prices. Their logic was when the customer is the coproducer of the work, they deserve to get a better deal. No one has as yet tried that approach as an authorized dealer. The aftermarket suppliers have already lower prices at their disposal.

So, there is the dilemma. I hope you can see it coming. It is that light in the tunnel of the train roaring down the track. Are you going to sit back and let the internet-based businesses penetrate even more into your parts and labor business or are you going to do something about it?

The Time is Now. If not now, when?

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Digital Marketing

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Digital Marketing

Mets Kramer

Digital Marketing: Billboard vs Engagement

“At the moment, our research shows buyers making 90% of their purchase decision before contacting the dealer.” And there it was. I had been having thoughts like these swirling around in my head for a few months now. But when Charles Bowles at Trader Interactive spoke with me, I had no idea how much our industry had shifted.

I have a theory about Digital Marketing in our construction equipment industry and I believe it can be considered in two ways.

  • First, is what I’d like to call Billboard Marketing, which refers to digital strategies geared towards establishing and maintaining digital visibility. These approaches are often additional marketing strategies, while continuing the existing methods of communication.
  • The second approach is called Engagement Marketing and includes digital activities to connect and develop engagement opportunities with your target audience. Dealers who implement Engagement Marketing consider their digital marketing presence as transformative and suggest these methods could replace most, if not all, past marketing approaches.

There are three aspects of Digital Marketing that I would like to look at and compare Billboard and Engagement strategies. They include Websites, Email Marketing and Advertising campaigns.

  1. Websites

Most dealers have a website today, which is a great start, but the buck doesn’t stop there. Listing your equipment, providing contact information and location falls under the Billboard approach: you present your information to visitors and hope they contact you. However, for Engagement Marketing, your website should provide a virtual visit to your dealership; images and videos of your inventory, and related documents showing the quality of the equipment and records of its health and maintenance. The icing on the cake would lead the visitor to a button they can click on to take them onto the next step. (Replace “Contact for more information” with “I’m interested in Buying”) But let’s be real, this call to action isn’t the icing, it’s the entire cake! How do you measure whether you are leading your visitor into an engaging relationship? Make sure you provide ample information about the machine so they can decide on the spot. If there’s not enough detail, Bowles says 90% of visitors will go to check out another listing to find what they need. Hop onto Google Analytics to help you assess whether you’re Engaging or Billboarding.

  1. Email Campaigning

The next common aspect of Digital Marketing is email campaigning.  Email campaigns are a great way to stay connected to customers and present new products. To use email campaigns effectively, it is important to consider your audience and develop strategies in order to create a continuing conversation. Mail programs such as Constant Contact or Mailchimp provide the tools to send information to tens of thousands of people.  A Billboard approach sends the same message to everyone who drives by it – no matter who they are or what they are looking for. We don’t want to use email campaigns the same way. Instead, consider a more strategic approach, engaging different segments of your audience based off their interests. Provide a mixture of Equipment For Sale messages and industry, fleet focused education. Use the tools provided by the email platforms to understand who is interacting with your campaigns and change the messaging and frequency for each segment to further engage your audience. While email campaigns can feel like a one-way communication, change your mindset and remember, email is most effective as a conversation tool. So, create campaigns that encourage your audience to talk back!

  1. Digital Advertising

Finally, Digital Advertising, whether Google, Facebook or others, are designed to bring visitors to your digital dealership: your website.  The Billboard approach will stop at bidding on generic words (ex. Caterpillar excavator, Komatsu bulldozer, Case backhoe, etc.)  which will hopefully bring visitors to your website to see what your dealership has to offer. But let’s keep in mind that digital advertising can be expensive, so the set up and focus of your advertisements should be focused for an Engagement approach. Let’s milk every opportunity! How about bidding on specific machines that are in your inventory? Specific combinations like Komatsu D65EX, for example, will have less bidders, making them cheaper and bringing visitors exactly to what they are looking for, the machine on your website.

The digital marketplace is real and becoming the source of future sales.  All leading industries are showing signs of transformation into the Engagement model of digital marketing.  Automotive sales, Commercial trucks are some but do not forget about Amazon and similar services. We are all proof that Engagement Marketing and Sales keeps us coming back for another slice.

We will continue this discussion soon.

To continue to develop your expertise in Marketing, please visit our website at Learning Without Scars.

A Pathway to Learning

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A Pathway to Learning

Learning Without Scars Classes

Since we started a business to provide classroom training for parts and service operations and product support sales and marketing, we have been constantly creating and redesigning what I have always called “Learning Paths.” A pathway to learning is what we try to provide to all employees to help them realize their potential.

With the classroom training we established the first pathway to learning with management and supervision. For this, we designed two-day classes consisting of eight specific subjects. We then developed the three-year program that had twenty-four subjects covered and taught. We offered this and conducted these classes worldwide for major construction equipment manufacturers. We did the same thing for dealership associations. In the mid 1990s we created a series of videos for dealer associations, that continue to be used in certification programs for parts managers and service managers. Clearly the methods, systems, processes and requirements in the past twenty-five years have changed. The modern pathway to learning is reflected in the creation of our skill assessments and in the evolution of our subject specific classes. Much has changed.

As I mentioned yesterday we offered Planned Learning Programs, which we referred to as PLPs. These were the three-year programs built for leaders in the Parts and Service and Product Support Sales groups. During the twenty-five years these were offered we have had over ten thousand people attend the PLPs – Executives, Managers, Supervisors and Foremen from all around the world.

Next, we created Planned Specific Programs, or PSPs in our shorthand here. These programs were designed for the people doing the work. The people that I call “Heroes.” They take the orders, pick the parts, pull the wrenches, inspect the machines, manage the assets, and drive the trucks. These are the people who serve your customers. These are the people that keep your customers coming back.

With this most recent change to our website we are introducing the next evolution of our Learning Paths. This has been designed to allow the individual employee to create their own individualized Learning Paths. As you will have read over the past ten days, if you follow our blog, we start everything with a job function skills assessment. We then match the results of that assessment to the four levels of skills: Basic, Intermediate, Advanced and Expert. When the individual employee selects our classes tabs, and the department in which they are interested they are asked for their skill level. Then, they will be presented the classes that our years of teaching and thousands of students, have indicated that should be covered to provide the employee the ability to improve their Skill Level.

As you can imagine this has taken some time to develop and put together. It provides each employee the opportunity to personalize their own learning, to select the classes they believe will address the “gaps” in their skills and knowledge. Of course, the Dealership and the Leadership can also be involved in selecting the classes that should be taken. That will never change.

Now we are adding additional tools that will allow us to have “Virtual” meetings with students to discuss the classes and, in effect, simulate the Real Classroom after they have completed one of our Subject Specific Classes. This is what educators are doing now across Grade School, Middle School and High School across the country. This is also now being used at Junior Colleges and Universities.

Education and Learning has changed a lot over the past twenty-five years. The changes coming in the next five years will be even more dramatic. No business, whether in manufacturing, distribution, wholesale or retail or business associations can rest on their laurels. There has been too much change.

The equipment has changed, exotic materials, telematics, computerization. The systems have changed now using electronic catalogues and shopping carts, finance and payment methods have changed with “Square” and Touchless Credit Cards. The arrival of Artificial Intelligence and Drones for Job Management and Control. The world has changed.

The younger generation is much better prepared for these changes than the older generations. Their time is here and coming. We either adapt our systems, methods and everything else as of now or face trouble. We, at Learning Without Scars, have chosen to adapt and it has been extremely exciting and energizing. Is this also an opportunity for each and every business across the world? I believe it is.

The choice is yours.

The time is now.

For more information on finding your own pathway to learning, please visit our website at learningwithoutscars.org

Building the Foundation of Learning

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Building the Foundation of Learning

Building the Foundation of Learning

Our initial training business was called Quest, Learning Centers. We incorporated Quest in 1992. This is where we first deliberately began building the foundation of learning. Originally our classes spanned fifteen hours, over two days, and was designed to cover four subjects; operations, selling, management and standards of performance. In each four-hour time block we covered two specific learning subjects. That provided a learning platform of four classes. Then we created additional learning levels to end up with three different levels of classes. That developed a total of 24 classes for each of parts, service and selling. In the middle we created a marketing class and a customer service class. That gave us a total of 88 classes.

In the early 2000’s we moved to webinars. Each webinar was around forty-five minutes. I was not happy with webinars as I could not see my students. We adjusted our delivery and used a HD camera connected to our computer. We alternated power point slides with live talks using the camera. It was better but didn’t make me very happy as a teacher. Still, it was another step in building the foundation of learning.

In 2016 we decided to transition all of our learning products to the internet. We incorporated Learning Without Scars and started to build the curriculum. Today we have thirty classes up and available in both parts and service with five classes in each still under construction. For Selling and Marketing we have twenty-four classes up and available.

These subject specific classes are each approximately three hours duration. We start with a pretest to understand the prior knowledge of each employee before they start the class. We then have power point slides with audio tracks which was developed and evolved from our classroom training. Into this learning we inserted film clips that accentuated a specific point. At the conclusion of the class we had a final assessment on which the student had to achieve a score of 80% to pass. Then a short survey upon completion of everything after which the student could get their certificate of achievement.

In recent learning research and development, it has been proven that with a quiz or break in learning every ten or so minutes that learning retention goes up by 50% so we are in the process now of updating all of our classes to reflect this truth. I am sure that our classes will be in a constant state of development as more evidence comes forward regarding how people learn. I am committed to helping each individual to be able to achieve their potential.

Each step along the way, in our quest to help each person achieve their potential, is our need to listen to our clients and their employees and respond to their needs and wants just like every other business. They suggest additional classes and learning tools. This has allowed us to develop a series of, what we are calling, Learning Paths for each Skill Level achieved in our Job Function Skills Assessments. Initially we designed our training programs and we determined the structures that the individual students were to follow. We called them Planned Learning Programs and Planned Specific Programs and Video Classrooms. Now we are providing our students with the tools to be able to design their own learning path. They, more than we, know what they need in order to become better at what they do. More on that tomorrow.

The time is now.

For more information about what classes are right for you, please visit our website at learningwithoutscars.org

Skill and Knowledge Levels

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Skill and Knowledge Levels

We have been using assessments in all of our training and learning products for over thirty-five years. The primary purpose of our assessments was to help us to adapt and adjust our teaching in order that our students learn. We first had a “Pretest” to measure what the students know when they start our class. Then we had a “Final Assessment” to determine what the difference was in knowledge before and after. This allows us to change how we teach.

We also used these assessments to challenge our approach to teaching. If the same question was received with the same wrong answer, obviously how we were teaching it was the issue not the learning potential of the student.

Let’s turn to our Job Function Assessments at Learning Without Scars (LWS). By now I hope you have looked at our job function comprehensive skill assessments. We believe we have broken new ground with these assessments for the Industries we serve. There are no other common job function assessments out there. With that position of leadership, we have been cautious on how we have approached this. We have had over 3,500 of our class assessments completed in the past two years. This has allowed us to established a hierarchy based on actual employee skills and their results on the assessments.

Upon completion of a specific Job Function Skills Assessment the student will receive their score (0-100). This score will rank their skills based on the results we have seen from the thousands of assessments taken. We have established these skill categories based on our experiences with our class assessments and the skill levels of the people taking these classes. For Learning Without Scars these skill categories are Basic (0-30), Intermediate (31-50), Advanced (51-70) and Expert (71-100). This category level will identify the specific class progressions to allow them to improve their skill level. These category levels have allowed us to design individualized class structures for the student to follow to improve their individual skill level. More on this next week.

We want each individual to be able to achieve their potential. Potential is a wonderful word. It is one that I was introduced to by an Elder in our Church when I was a little boy. He spent a lot of time mentoring a young boy. He passed several messages to me to consider.

  • Always assume the other person is twice as smart as you are and work twice as hard to prove that they are not.
  • Be Happy in your Work or Work and be Happy. You have no choice you have to Work.

If someone tells you that you have a lot of potential and you are sixteen years old that is a very good thing. If someone tells you that you have a lot of potential and you are sixty-six what have you been doing for the last fifty years.

The time is now.

For more information on our assessments and classes, please visit our website at learningwithoutscars.org

How to Use Assessments

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How to Use Assessments

Yesterday we addressed the Foundation of Learning. Today I want to talk about how we envisioned businesses using our Job Function Skills Assessment. Let’s quickly review what we say on the Landing Page for Assessments.

We point out four areas in which to use our Skill Assessments

  1. Recruiting: The assessments can be used in recruiting employees. In conjunction with background checks and interviews, the assessment gives you much more information on the applicants before they are hired. Hiring the “right” someone is extremely difficult to do. The assessment provides the Company hiring the individual an objective view of the skills of the prospective employee.

 

  1. Performance Reviews: The assessments should also be used in the annual performance review with each employee. Other than the reviews I give myself I have never received a formal performance review as an employee. I believe that performance reviews are a terrific opportunity to discuss with the employee what is necessary for the employee to do to become better at what they do and open up more opportunities for them in the Company.

 

  1. Wages and Salaries: The assessments can even be used as an objective foundation related to the establishment of the wages and salaries paid to the employees. We have had several thousand people take our assessments since the beginning of 2017 and we have a high degree of confidence that our skill levels are in line with the actual performance of the employees. This provides a foundation for the proper wage and salary scales and progressions through the scales to be objectively managed.

 

  1. Employee Development: The assessments have been developed to be used to create individualized employee development programs for each employee in the parts and service business teams. A career path for each employee in the Parts, Service, Selling or Marketing groups allows talented people to be motivated to achieve their potential. With the Skill Levels from the assessments and the Learning Paths tied to them this becomes a real possibility within these teams of people.

 

Attracting, Hiring, Developing and Retaining talented, motivated employees is the MOST critical of all aspects of your business. With the right people you will prevail. Without them you will FAIL.

 

The choice is yours.

 

The time is now.

Making Sense of the Numbers

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When we look at our businesses, our numbers need to add up.  But how do we calculate the potential represented within a sales territory?

It begins with the potential business we can earn from each of our customers.

Branding #MondayBlogs

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In our Industry, we can identify a brand with a logo, a color, a certain type of visible air filter on a piece of equipment.

But how often do we stop to realize that we are our own brand?  Who we are and what we do, the ways in which we do our work, reflect our individual brand.

Your brand matters.  It matters to your customers, to your team, and to your store.

For this week’s Socrates Says, we are sharing some words of wisdom on your own brand in the video below.

The time is now.