Showing posts with label March 23. Show all posts
Showing posts with label March 23. Show all posts

Thursday, March 23, 2017

Why Relationships = Revenues

<p>Apple stores draw a heavy, loyal repeat customer crowd because it values talking to them instead of passing them off to machines, websites, and phone trees (LCT photo).</p>Let’s face it; It’s competitive out there. Transportation network companies (TNCs) and apps disrupt the marketplace and compete for our customers. Inexperienced, random people have started electronic hitchhiking using their cars by having people find them on an app.

We are continually seeing more about how you should automate everything. Customers often don’t talk to real people anymore. They go to apps and do everything immediately without really knowing with whom they’re doing business.

When Tech Runs Cold
Many limousine services are trying to adapt to this new way of business. For many, this seems like the end of their companies and livelihoods. Or is it?

The problem with technology replacing traditional service means the “people part” of the service is missing. How frustrating when you have a question and the business you are trying to reach has no contact information. No phone number. No live person to help you if you have a question or want to do business with them. No one is around to help.

Some traditional services have actually been calling themselves a technology company and creating many different ways to avoid speaking with you, their customers. That’s awful service. People are picking up their smartphones and touching a few buttons and trying to do business with the unknown.

An Apple Approach Every Day
Let’s think about some companies we know and how they do business. Apple is one of the most successful companies in the world. Many might say Apple is a tech company. True, but it’s so much more. You can order an Apple computer online and it will be shipped to your door. Why do their customers pay three times the price for a mac than a PC? It’s the people at Apple.

Recently when taking a walk through a local mall a few weeks before the Christmas holiday, many stores were empty. Except for one. The Apple store was packed. You see Apple’s goal is to build a relationship with its customers. It works. Apple stores have sales of $6,000 per square foot, twice the next retailer Tiffany’s which does less than $3,000 per square foot. Why? Apple knows it’s the experience customers want.

Apple doesn’t have sales clerks. They have “geniuses” to help you with your experience. You can call Apple 24 hours a day at 800-MYAPPLE and a live person will answer and help you. People wait outside Apple stores for days in advance of a new product, eager to pay a full premium price for a product they’ve never seen or held in their hands. 

Fly The Raving Skies 
Another company to consider is Southwest Airlines, which gets a lot of attention for its friendly customer service staff. Customers rave about the way they were treated when flying on Southwest. You don’t normally hear people raving about service when traveling on many airlines.

Airlines must use technology for behind the scenes aircraft usage and route scheduling, but that’s not what people are raving about. Their competitors use the same technology to figure the fuel costs and operations to minimize operating expenses. Southwest is known for its amazing people, not their technology.

So many operators are missing a great opportunity. There is value in relationships. A business will make a lot more sales and profit with repeat customers willing to pay a premium price, too. Always consider the lifetime value of a customer.

<p>Remember when you could call any business and always talk to a friendly voice that made you picture an employee like this? Customers yearn for such service in a tech overdrive world, and limousine companies can provide it far better than TNCs (LCT file photo)</p>Hire Right 
It starts with recruiting the right employees for your company. Hire friendly people with great attitudes. You can train for the technical part of the job, but start with good people first.

Next, talk about and train your employees in your business culture. Give specific examples of what great customer service looks like. Create training videos or hire someone who can do them for you, so every employee has the exact same information and practices.

This is a big difference where TNC app companies can never match you. They can’t train their people, so their service delivery is inconsistent. You can get a different experience every time you take a chance using a TNC, as they lack adequate training.

Constant Contact 
We love new technology. But there’s fear too many businesses try every way to avoid talking with their customers. Do you have contact information where your customer can call and talk to a live person? Or is there only a “contact us” form to fill out? You’ll never know how many customers you turned away by not having a real person answer their calls. People buy from people. An app doesn’t have a friendly personality or empathy.

Your customer has choices. If you don’t make it easy for your customer to talk to you, someone else will. Once you signal to your customers you don’t want to speak with them anymore, they will look for someone who does, maybe one of your competitors. You are frustrating your customer when you don’t have an easy way to reach you in person.

After all, customers expect limousine services to be more attentive and act better than an unknown website, app, or some guy moonlighting in his personal car. You can succeed to new heights by remembering not to take the “person” out of personalized service your customer expects and deserves.

Speaker and consultant Bill Atkins started and owned Red Bank Limo in Red Bank, N.J., for 30 years until he sold it in 2016. He is now an area director with Toastmasters International and serves as a SBA SCORE Certified Business Mentor. Bill also serves on the LCT Magazine Advisory Board and was a 2010 LCT Operator of the Year. He can be reached at billatkins@icloud.com.

Keywords

Bill Atkins   building your clientele   client markets   customer service   How To   

 

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2017 International LCT Show Photo Gallery

The Show provided continuous business and networking moments that should be in pictures. This sample covers some highlights across the three-day Show, March 13-15. LCT will publish another gallery of new photos in the May Post-Show issue.

Keywords

ILCT 2017   industry events   LCT Magazine   limo tradeshows   National Limousine Association   networking   

 

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Pay Day: What Chauffeurs And Bus Drivers Earn

As the national unemployment rate dips and wages rise due to a tighter job market, finding and keeping chauffeurs becomes an even bigger challenge for operators.

After years of recession-era depressed wages, what to pay chauffeurs and CDL drivers is a recurring topic on social media chat groups, at association meetings, and at trade shows. Finding professionals has been a pain point for operators during the post-recession economy.

Some will argue competition from TNCs has depleted the available pool of potential candidates. Others say it’s just the general state of the economy to find qualified people who either have the experience or the traits necessary to be trained to become a professional chauffeur.

In addition to figuring out competitive hourly rates, incentives, and benefit packages to recruit and retain chauffeurs, operators who have expanded into minibus and motorcoach service also must deal with another pool of drivers who must have a CDL and the experience and smarts to handle large groups safely. Not easy.

Of course, pay scales vary among cities and regions depending on the job market. Statistics from the U.S. Dept. of Labor (May 2015) group chauffeurs and taxi drivers together, but can be used as a reference point for general wages. Nationally, taxi drivers and chauffeurs earn about $27,000 per year (annual mean wage) which equates to about $13 per hour.

Bus driver statistics are a bit tricky because of different categories (such as urban transit drivers), but for the “charter bus industry,” “scenic and sightseeing,” and “other transit and ground passenger transportation” categories, drivers’ annual mean wages range from $30,300 to $31,800.

Obviously, wages vary upon region and cost of living. In the New York metro area, the annual taxi/limo wage is $32,390 compared to Texas which is $24,440. For bus drivers, California is the highest at $41,530 compared to Florida at $33,320 (for all groupings of bus drivers).

You also can find other sources for current chauffeur wages. The website Glassdoor.com provides wages by city and region. For example, the site reports that the national chauffeur salary is $24,000, but in high-end cities such as New York and Los Angeles, the average is $36,600. Salary.com lists the median annual salary at $31,941 (as of January 2017), with a range from $27,2014 to $37,852. Payscale.com reports the median chauffeur hourly wage is $12.68 an hour with an overall range from $9.28 to $24.70 an hour.

As you can see, wages vary by the various sources cited. Operators report it’s not just the hourly wage that matters to prospective employees. Attracting talent also requires offering benefits, flex scheduling, a career path, incentives, steady work, and a host of ancillary perks and benefits that attract and retain star chauffeurs and drivers.

Here’s a snapshot of three regions based on how operators pay chauffeurs and drivers, and their methods to attract and retain talent.

<p>Sami Elotmani, vice president of operations and director of global affiliate partnerships at Destination MCO</p>Orlando

Orlando, Fla., is outpacing the country in growth as people relocate to the area because of low unemployment rate and job opportunities. Considering the anchor hospitality and related industries provide numerous transportation jobs, finding qualified chauffeurs is a challenge.

Because the Orlando area is one of the hottest economic and employment regions in the country, “it puts a lot of pressure on operators to try to improve chauffeur pay packages,” says Sami Elotmani, vice president of operations and director of global affiliate partnerships at Destination MCO.

“Our chauffeur average (after 60 days) pay range is $14-$20 an hour with gratuity, but we explain to prospects we offer a comprehensive package that includes benefits, paid time off, and more,” says Elotmani, adding that drivers with CDL licenses who handle his minicoach business earn $1-$3 more per hour. Competition for CDL drivers is tough with jobs available at Disney, campus shuttles, and hotels. Elotmani said it costs thousands of dollars to recruit chauffeurs if you add up advertising, interviews, background checks, safety record checks, and background investigations, so retaining chauffeurs is a company goal.

<p>Steve Qua, president of Company Car and Limousine</p>Cleveland

Steve Qua, president of Company Car and Limousine in Cleveland, Ohio, and board director of the National Limousine Association, says his chauffeurs are full-time employees who get benefits and work 40-hour weeks. They average $25,000-$30,000 per year (including gratuities).

“Our model is to hire full-time chauffeurs who work three shifts,” Qua says. Like Elotmani, Qua believes his model of full-time employment plus benefits is an advantage to attract and retain chauffeurs. “I do use a couple of part-time chauffeurs on weekends because some of my regulars have weekends off, but they’re not as sharp or give the attention to customers like my regulars do.”

<p>Tom Holden, general manager at Rose Chauffeured Transportation</p>Charlotte

“You get what you pay for,” says Tom Holden, general manager at Rose Chauffeured Transportation in Charlotte, N.C., referring to recruiting and retaining chauffeurs and motorcoach drivers. “I have probably 10 guys applying right now, but the quality isn’t there so I’m not going to hire them because I can’t have them responsible for driving one of our coaches with 57 passengers.”

Rose pays $18.50 an hour for motorcoach drivers, higher compared to some other regional companies, Holden says. But the company’s viewpoint is the drivers, as well as chauffeurs, are the “face” of the company’s reputation. His minibus drivers average about $15 an hour. Chauffeurs earn on average about $13 an hour including gratuity. The longer they stay with the company, the more their hourly rate increases from their start dates. “We pay more because we are very selective, but you absolutely see the return on investment,” he adds.

Another reason Rose pays well is insurance companies are scrutinizing operators more often, looking for a minimum three years of experience, Holden says.

Chauffeur Career Path

One of the ways Destination MCO gets and keeps chauffeurs is through its tiered advancement system. “We have a four-tier system where chauffeurs can move up to the highest tier, what we call Ambassador status,” Elotmani says. “The goal is to provide motivation and a career path, plus money and benefits as they move up the tiers. Generally in this business there isn’t a career path for chauffeurs. You can’t just dole out a couple of cents or a dollar or two because people want a purpose to their work and a reason to stay.”

For example, Elotmani explains when a chauffeur reaches Ambassador status, they have the opportunity to become a lead chauffeur or trainer. He notes if a chauffeur doesn’t “graduate” to another tier in six months to a year, “they probably are on their way out. The way we look at it, if all of our chauffeurs reach Ambassador status, we will be more than happy to pay them more and offer great benefits because we know they are delivering the highest level of service and are motivated employees.” 

— Tom@LCTmag.com

Keywords

chauffeur pay   Florida operators   North Carolina operators   Ohio operators   Orlando   salary surveys   Steven Qua   Tom Holden   

 

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Wednesday, March 23, 2016

TomTom Releases ‘Most Traffic Congested City’ Data

TomTom recently released the results of the TomTom Traffic Index 2016, the annual report detailing the cities around the world with the most traffic congestion. The big news this year is Istanbul has been knocked off the top spot by Mexico City.

Drivers in the Mexican capital can expect to spend an average of 59% extra travel time stuck in traffic at any time during the day, and up to 103% in the evening peak periods when compared to a free flowing, or uncongested, situation. This adds up to 219 hours of extra travel time per year.

Completing the top five most congested cities in the world are Bangkok (57%), Istanbul (50%), Rio de Janeiro (47%), and Moscow (44%), making up the top five most congested cities in the world.

Using data from 2015, the TomTom Traffic Index analyses the traffic congestion in 295 cities in 38 countries on six continents – from Rome to Rio, Singapore to San Francisco. TomTom works with 14 trillion data points that have been accumulated over eight years. This is the fifth year of the TomTom Traffic Index.  

Congestion Up, Globally

Looking at TomTom’s historical data, it’s clear traffic congestion is up by 13% globally since 2008. But there are shocking differences between continents. While North America’s traffic congestion has increased by 17%, Europe has only increased by 2%. This could be driven by economic growth in North America, and economic depression in the rest of Europe.<p>Click the photo to see the data charts.</p><p>&nbsp;</p>

Worryingly for businesses there is a direct correlation between a reduction in traffic and economic growth. Commenting in his analysis of the report, Wendell Cox, principal of Demographia, said: “There is considerable economic research indicating that the more fluid the traffic in an urban area, the greater its likely economic growth. For example, an urban area in which residents can reach 80% of the jobs in 30 minutes is likely to perform better economically than if only 70% or 60% of the jobs can be reached in that time.”

Taco van de Leij, VP Marketing at TomTom Telematics, said: “It’s clear that governments and businesses alike need to adopt smarter methods to help reduce traffic. Customers using our WEBFLEET fleet management solution are already taking a first step towards this with access to a wide range of tools to help make better decisions for their fleets. Through more intelligent routing and job scheduling, telematics can optimise traffic flow, meaning vehicles spend less time on the road, and by being able to tap into TomTom’s world class Traffic Services they are able to further reduce travel times.

Business owners can find out more about the TomTom Traffic Index, and discover where their home city ranks at http://ift.tt/1oQx4ZI. There’s also helpful advice on beating traffic congestion, as well as independent analysis. And, for the first time, a selection of ‘Profile Cities’ provide insight into what they are doing to improve mobility.

Source: TomTom press release

Keywords

international   research and trends   TomTom   traffic assessment   

 

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LCT Fact Book Provides Industry’s “Super Bowl” Of Ads

[NOTE: This article is a promotion from LCT Magazine]

TORRANCE, Calif. — LCT’s annual Fact Book & Industry Buyers Guide, packed with industry research stats and lists of suppliers and groups, provides a high-profile showcase of product and service advertisers who net more clients from the chauffeured transportation industry.

The annual Fact Book & Guide, to be published in June, provides maximum marketing value for industry print media because it’s a once-year issue that remains the most-referenced magazine all year long.

Among the benefits for advertisers:

  • LCT is the No. 1 leader of industry information. It exclusively covers industry research. 
  • LCT is the No. 1 leader of buyer-to-seller lead generator programs. With award-winning editorial, operators turn to LCT.
  • LCT is transparent. Its readership is the only BPA audited magazine in the industry. Numbers cited are real, honest, and verifiable.
  • LCT is exclusive. No longer accepting “directory” ads where subscribers get lost, LCT is a big tent brand that provides an advertiser venue full of big ideas, better deals, and best B2B products and services.

For all types of listing, advertising, and marketing packages and deals, contact the LCT sales team at (253) 983-1515; carol@lctmag.com; lori@lctmag.com; sara@lctmag.com; linda@lctmag.com.

Keywords

advertising   building your clientele   industry vendors   LCT Fact Book   LCT Magazine   marketing/promotions   Sales & Marketing   

 

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Boston Area Company Teams Up With Gronk Party Bus

<p>New England Patriots tight end Rob Gronkowski (middle, back) with his friends aboard the LGE Coachworks-made, Gronk Bus, a 20-passenger party bus with custom acrylic lighting and large flat-screen TVs.</p>RANDOLPH, Mass. — Throughout history buses have served a specific purpose. Sometimes they were used to make a social statement (Ken Kesey’s “Psychedelic Bus”), or to market pop culture (TV’s “Partridge Family” bus), or to educate our children (“The Magic School Bus”). But every now and then a bus comes along for one simple purpose, to have FUN!

As big and in-your-face as the man who inspired it, THE GRONK BUS debuted several months ago, inviting party-goers to partake of this 25-passenger party-on-wheels. Customized inside and out by the Gronkowski Family, passengers have enjoyed such amenities as two flat screen TVs (43 & 24 inches), ceiling LED lighting depicting a football field, a lighted party wall showing a football scoreboard and the final results of the 2015 Super Bowl, Gronk memorabilia, a bar, restroom, and even a dancer pole. And now the next step in The Gronk Bus evolution has taken place.

To make The Gronk Bus as accessible as pushing an app on a phone, the Gronkowski Family has entered into a partnership with ETS International, a Boston-based ground transportation company. ETS International will use its advanced technology and 30 years of limousine experience to not only use its base of award-winning chauffeurs, but also implement its state-of-the-art customer service technology into making The Gronk Bus’ reservation process as easy and customer friendly as possible.

In making the announcement, Dan Gronkowski said on behalf of the family, “Our goal was always to make The Gronk Bus not only accessible to as many people as possible, but also make that access just a simple app away. With ETS we found the perfect partner, a company with strong Boston roots who not only knows the ground transportation game but a company that has at its fingertips the latest technology our customers need and expect.”

With close to 100 chauffeurs and a fleet of 50 vehicles, ETS International has won numerous industry awards, including the LCT Operator of the Award in 2014 and 2010. ETS President Johnny Greene said this relationship is another feather in the company’s cap.

“Next to maybe Tom Brady, there’s no bigger personality on the New England football scene than Rob Gronkowski,” Greene said. “We think allowing people to ‘party like Gronk’ is a tremendous idea and we are excited about the role we will be playing in helping to bring the party to the people.”

Adds Rob Gronkowski, “I enjoy surrounding myself with winning players, and ETS International has shown over the years that they know how to do it right!”

Information and Gronk Bus reservations: visit www.ETSINTL.net

Source: ETS International press release

Keywords

Boston operators   business partnerships   celebrities   John Greene   Massachusetts operators   party buses   pro athletes   retail markets   

 

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The Great 2016 ILCT Industry Event

Keywords

ilct   ILCT 2016   industry events   limo   limo show   

 

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