Inacom: Success Through Customer - and Employee - Satisfaction

Focus on customer service, combined with attention to employee development has helped Inacom Information Systems (VARBusiness 500 rank 319) attain a rock-solid reputation. Though its revenue dipped from $65 million in 2005 to $59 million in 2006, CEO Laurie Benson is aiming for an impressive target of $75 million in 2007. In an interview with CMP Channel, Benson explained how her company would reach its goal while continuing to give to its community, and providing customers excellent customer service.

Inacom's revenue showed impressive growth in 2006. What is your target for next year, and how do you aim to achieve it?

We look at growth from a strategic standpoint. One of the most helpful tools has been Double-Digit Growth: How Great Companies Achieve It, No Matter What, by Michael Treacy. He discusses five disciplines for growth ["keep the growth you have already earned," "take business from your competitors," "show up where the growth is going to happen," "invade adjacent markets" and "invest in new lines of business"]. This year, our strategy is longer term. First is base retention. Second is market share gain. Third is market position both in geography and specialization. Since we have become more focused on solutions, our growth is commensurate on the expertise we gain. For example, we are putting more focus on storage, VoIP and the Microsoft suite of products. We're focusing on solutions to grow our bottom line and customer satisfaction. I love the term solutions because it implies we are solving a problem. And growth is a function of how well you serve your customers.

Our employees are learning more, which all brings about more satisfied customers. We focus on margin growth and bottom line profitability. That said, our target is $75 million, with 25 percent revenue growth. All growth leads from profit in services. And hardware growth flows from there. Someone once said this, and I love it: "Revenue is vanity and profit is sanity."

What are some of the things you are most proud to have accomplished in the past 12 months?

We're proudest of customer and employee retention. Our attrition rate for both is in the single digits. To me, that is one of the most important metrics for any business. Those two go hand in hand. You have to consider the impact of the decisions you make on customers, employees and profitability. You will run a successful business if you do that.

Another accomplishment we are very proud of revolves around our involvement in the community. For example, we have connected students as interns with customers in our base to help drive the future workforce. We also try to help employees establish good habits for life. We have an active blood donation program, and a small matching fund. Our employee involvement is huge.

The third accomplishment is the "Make Mine a Million" program, a women's economic initiative. The woman who founded "Take Your Daughter To Work Day" founded the program. Its goal is to get one million women-owned businesses to be million-dollar businesses by 2010. It sponsors a lot of coaching and mentoring programs.

Finally, we are also a founding member of our state IT association.

What are some of the challenges facing your company in the next year?

First, I want to say there are many more opportunities than challenges. But clearly, taking a long-term perspective for predictable success, we want the right staff in place. Staffing is a concern for everyone. We have excellent people. We have optimized our staff and we have the right people. You have to proactively keep bringing people in.

Blending a culture based on core values, having tenured employees with new ones is really incredible. You have to balance long-term positioning, vs. short-term results, and staffing has to capitalize on emerging technologies.

I like to say that really good people in the industry find each other. They know who they are and they gravitate to each other. All the good people want to be on the same team. You have to involve them on an ongoing basis, with a clear vision. I ask them, "What do you want to know?" Good employees usually want to know that we are ethical, that we are going to be around, that we have a stable place for them to be. They will take care of the rest. Our employees have an empowered environment with accountability. We get them involved, telling us what we need to do. We don't need to have the answers, we just need to know to ask the questions.

How do you facilitate that?

Through group meetings with employees, or individual, one-on-one discussions. It's an overall communication strategy. But you have to do this all the time. If they don't see you asking on a regular basis, they don't trust you.

What IT business trends do you see in the next six to 12 months?

First is a more holistic approach being taken with respect to technology. I love Cisco's, "It's the human network." That's really what we are talking about. Bringing technology to people's lives in an effective way, driving collaboration, mobility and services -- that's a trend.

Another is the workforce. We have savvy customers, and we have a workforce shrinkage problem. About 40 percent of their IT workforce is eligible to retire in the next five to 10 years. We've got to be able to keep them in, at least part time.

The other trend I'm seeing is unified messaging, security and mobility. New vendors that have people saying, "I am going to sell their solutions because of their technology." If they have new technology that is super-focused on customer needs, they'll get visibility. Today, you don't necessarily go with the market leader. You can look at niche areas, where you might augment current solutions you sell. Not the same fear of going with new guy as there might have been in the past. No one has time to wait three years to see if they'll make it. So it's a bit of a risk.

What are some important characteristics that define a successful customer relationship?

An important criteria is shared values. You need to know what theirs are and how they align with yours. Before we have a customer relationship, we have a talk on core values. It needs to be a symbiotic relationship. If there isn't mutual benefit, then over time it will deteriorate. A servitude attitude needs to be evident in each action: How can I help you? There must be crystal- clear communications both ways. You must be easy to do business with -- offer professionalism wrapped in genuine care and concern. Why do customers leave? Because of perceived indifference.

First, you have to serve your customer every day with your heart and soul. Be there as much when they don't need you as when they do. Daily connection is so important.

Second, have a plan for your customer.

Third, ask for customer feedback and then, go back and tell them what you did about it. You need a process. Ask your employees, too, why they think customers are with them. Go out once a year and ask them what is happening in their business. Ask them: If we could offer one more service that would impact you significantly, what would it be?