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How Businesses Can Learn From The Brexit Negotiations

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How Businesses Can Learn From The Brexit Negotiations

As Brexit looms over the UK, businesses should be taking stock and recognising the importance of effective negotiations. Here Neil Clothier, senior negotiation strategist at Huthwaite International, talks negotiation skills and what businesses can learn from talks with the EU 27. 

A recent survey of British businesses revealed that rising prices, economic stability, uncertainty around future trade agreements and international trade, rank amongst the biggest concerns amongst businesses post-Brexit. Arguably, the solution to each of these concerns could be said to link directly back to the success of trade talks with the EU. And yet, when questioned Huthwaite’s research also revealed that the majority of SMEs believe Brexit has been handled badly.

And so, it appears that the prospect of resolving these areas of concern in order to ensure British business prospers is becoming more challenging the closer we draw to the next looming Brexit deadline. But whilst British businesses may be becoming frustrated with the negotiations, or lack thereof, taking place in Brussels, the pressure is now on for UK businesses to assess their own negotiations strategy and learn some fundamental lessons from the Brexit process. Ultimately, the priority must now be for UK businesses to ensure their own negotiation strategy is watertight to ensure profitability is protected in a potentially chaotic economic climate.

The power of negotiations for SMEs

The most successful businesses don’t automatically default to cutting costs or raising prices when looking to increase profit, they hone their negotiating prowess. Yet its power, and the positive impact it can have on the bottom line, remains largely unacknowledged and hence underused.In fact, Huthwaite’s recent researched revealed that despite negotiation being proven as a failsafe tactic to boost company growth, little more than 15% of UK SMEs were currently embracing this within their growth strategy. However, the enterprises that develop an abundance of negotiating capability, will undoubtably be those that secure greater profit margins, increased efficiencies and a more sustainable business model. Indeed, our research goes onto show that SMEs adopting a systematic approach to negotiations across their whole business experience 42.7% greater growth than those without.

We’ve seen throughout the Brexit process that negotiating is no easy task, but SMEs shouldn’t shy away from investing in good strategy; it’s essential they consider how Brexit could impact on their supply chain, and ultimately their business performance.

The role of negotiation has never been so important for SMEs. As economies across the globe shift and change, and services that were once highly differentiated are now seen as commodities, deals and supplier relationships require ever greater skill. This naturally has a knock-on effect for SMEs, who often find themselves at the end of a very complex supply chain. SME’s must not steer away from their strategic alignment or be put off going for growth because of political uncertainty. Postponing sales or deals could ultimately lead to cash flow issues, which will become harder to rectify as suppliers tighten their belts. Relationships may also become strained as all parties are told to negotiate hard, it is therefore essential that SME’s take a solid stance particularly due to their position in the supply chain.

How SMEs can negotiate with purpose

It’s essential in negotiations that you consider your position and strength from day one. If you feel powerful, you are powerful, and you behave accordingly. If you feel weak, the reverse therefore applies. It’s also likely that your opposition will be able to sense your feeling of weakness too, and the power then resides with the other party. This can be used against you in order to trade, negotiate or bully their way to a deal that maybe be less than ideal, as we’ve seen with Brexit – the EU know that the UK no longer has a huge amount of power to harness, and so they are the ones who are currently calling the shots on any potential deal.

And part of this lack of power lies in a lack of preparation; as the age-old saying goes, ‘fail to prepare, prepare to fail’. Preparation is the single most important differentiator between average and highly skilled negotiators. Most negotiators spend time preparing facts, figures and financial goals, but fail to plan how they will use this information when it comes to making a verbal agreement. You’re only as good as the preparation you put in. Consider carefully how you can utilise the information and research you’ve gathered to your advantage.

Of course, being preparedalso means ensuring that you have prepared alternatives to fall back on, should the first strategy fail. A realistic fall-back strategy can be the make or break of a negotiation, and the more fall-backs you have is directly proportional to the negotiating power you can potentially harness. If there’s one thing to take from the Brexit process, it’s that a lack of alternatives (resulting in a lack of bargaining power) has led to ‘no deal’ being the UK’s only fall back; a ‘no deal’ fall-back certainly does not hold a lot of hope, particularly due to the lack of clarity surrounding the impact of such an alternative – a major rule of negotiation is to try to fully understand the consequences of an alternative and, where possible, try to improve your fall-backs and therefore improve your negotiating stance.

The top three things SMEs should be doing to prepare for Brexit

And finally, there are specific strategies that SMEs should be adopting ahead of Brexit; reassuring their teams, openly communicating, and ensuring that they remain open minded throughout.

Firstly, employees across the business will fear what Brexit could mean for their future, both for the company and personally, so it’s key to make sure they feel involved and reassured, and it’s vitally important that SMEs include and collaborate with other members of their team as part of this. If you want your team to fully support you and the adapted strategy, allowing them the opportunity to share their insight and ideas will encourage them to buy into the bigger picture. It will also inspire staff to take personal responsibility for the success of the company and become fully invested in the end goal. This will prove vital in the predicted hard times ahead.

Including others in the strategy-development process can be challenging and may lead to some disagreements. However, if you choose to be open-minded and courageously confront issues head-on, your strategy will be far more valuable in the long run. As part of this, it’d easy to avoid any narrow-minded thinking; it is easy to think of the worst possible outcome when it comes to Brexit, but with the transition period in place, it is just as likely that small businesses could flourish with the possibility of trading with new countries and a new world of potential customers.

And finally, once your strategy is developed, everyone in your company should know about it. Your vision and mission should be clear and easily understood by every team member – though keep in mind that the key here is not only to have your employees be able to repeat the strategy back to you,but for them to really understand it and be able to clearly and succinctly explain how it plans out.

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Research exposes the £68.8 billion opportunity for UK retailers

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Research exposes the £68.8 billion opportunity for UK retailers 1
  • Modelling shows increasing the proportion of online sales by 5 percentage points would have significantly boosted retailers’ revenues during the first lockdown
  • 72% of Brits want retailers who started an online service during the pandemic to continue operating it full time

New data released today by global payments platform Adyen, outlines the economic gains that could be accessed by getting more UK retailers online.

Economic modelling conducted by Cebr for Adyen indicates that if the retail sector increased the proportion of turnover stemming from online channels by 5 percentage points, £68.8 billion would have been added to the economy during the first lockdown.

While retail turnover stemming from online sales has grown significantly during 2020 – from 19% to 28%[1], there is still considerable room for growth.

Myles Dawson, UK Managing Director of Adyen comments: “The UK retail sector is facing an incredibly tough quarter, so creating the link between physical stores and online channels is more important than ever. With the festive period approaching and many shoppers unable, or uncomfortable leaving their homes, establishing and maintaining a positive online experience is a billion-pound opportunity for retailers.”

The research[2] of 2,000 UK consumers found that 31% are less likely to shop in physical stores now because of positive experiences shopping online during the pandemic. Furthermore, 72% of these consumers want retailers who started an online service during the pandemic to continue operating it in the long term.

However, making the process of shopping online as frictionless as possible will be key to unlocking the opportunity presented by online channels. 70% of Brits say that when shopping online, the ease of use is as important as the quality of the product, and 72% won’t shop with a retailer whose website or app is difficult to navigate.

Myles Dawson concludes: “Many retailers did amazing things during the pandemic in terms of adapting and creating new experiences – it’s a testimony to their agility that 57% of Brits said their expectations of the retail sector has improved during the pandemic. The challenge now is to consistently meet these expectations going forward. With local lockdowns in place, online channels will be key to serving many consumers in the short term. However, retailers need to see the shift to unified commerce as a long-term trend. The sooner they can demonstrate agility and jump on board, the longer they’ll reap the rewards.”

[1] https://www.ons.gov.uk/businessindustryandtrade/retailindustry/bulletins/retailsales/august2020

2 Research conducted by Opinium Research LLP

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Want to serve your customers better? An effective online strategy is what financial institutions need 

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Want to serve your customers better? An effective online strategy is what financial institutions need  2

By Anna Willems, Marketing Director, Mention

A strong online presence matters.

Having a strong online presence, that involves social media is now a crucial part of all business strategies. Whether they are retail brands, sports teams, libraries or even restaurants, most companies are investing more and more in developing their digital brand image and online presence – financial institutions are no exception.

When it comes to market trends and innovation, financial institutions are first on the line. After all, we — people and companies — trust them to manage our money to the best of their abilities. And even more so than any other market, we demand secure, trustworthy, fast and user-friendly services.

Reaching such high expectations is not a given. To this point, banks and other financial institutions have no other choice but to have a perfect understanding of their market, their audience, and their needs. What they need to get there is a fail-proof online strategy.

Gaining a deep understanding of your market

One of the best things about using social media to learn about your audience is that people give unsolicited opinions. They speak their mind and share their thoughts candidly.

This is the key to help any business to learn about themselves. They get to analyze their audience’s challenges and aspirations without having to ask them directly or serve them time-consuming surveys and polls.

UK-based Asto, a company that is part of the Santander Group, is committed to helping small businesses have access to financial and non-financial tools. Asto was looking for something that could help them discover what their target audience was talking about and find opportunities to add to the conversation. Mention enabled Asto to keep on top of reviews and customer comments, which has helped us provide a better service for our customers.

Which platform suits your offering the best?

There’s no point choosing to create campaigns on TikTok if your customers don’t use it – you need to think about who they are and work back from there.

You do this by automating the process using a social listening tool. A social listening tool will help you to view your market as a whole and identify where the key conversations are happening — and, therefore, where you should be. What’s more, you will never miss any relevant mention of your institutions, products, services, or competitors.

Handling a crisis

Financial institutions need to watch carefully for negative press – social media is the first place people will go to if they feel they’re not getting the service they need. In theory, rogue employees or unhappy clients can post anything they like online to try and hurt your brand. And if their messages gain traction, you’ve gone from one person saying bad things, to thousands.

That’s why listening needs to be part of any crisis management plan. Now, sometimes, there are crises you cannot prevent. And those usually hit pretty hard.

Power of influencers

For an influencer marketing campaign to work for your financial institution, partnering with nano content creators may well be the best way to go. They’re ability to play a part in how they shape your brand story can make a huge difference when it comes to engagement and reason to believe in your service.

Many financial institutions are already leveraging influencer marketing. It’s an efficient strategy to: Build trust and gain credibility, reach out to new audiences and share engaging stories.

The online review conundrum

94% of consumers check online reviews before they decide to buy something or subscribe to a service. They need what we call social proof. It says that the more people say they use your service, the more it will look like a good service. In short, you need to show how happy people are using your service. But not all online reviews are positive.

Having said that, we find that financial institutions shouldn’t ignore negative reviews. Instead, embrace them as an opportunity to rebuild trust in your brand. Less delicately put, take the bull by the horns and turn them to your advantage. Always respond to relevant complaints (and as fast as possible). Take responsibility for what happened. Be helpful.

And ignore trolls.

Learn from the competition

Over the last two decades, a marketer’s daily life has greatly evolved. Most importantly, we now can measure everything we do, including the consequences of our actions on our business. Having said that, you can’t evaluate how well you’re doing without comparing against

others.

Truth is that 77% of businesses rely on listening to keep an eye on their competitors. What this means is that 4 in 5 of your direct competitors are likely watching each and every single step you take. And you should do the same.

Setting the trend

From staying up to date with the latest industry trends and innovations, to keeping an eye on the competitors’ newest services, to being the first to know of potential brand crises – tracking relevant online conversations lets marketing and communication professionals working for financial institutions to stay one step ahead in an industry that is leading change and innovation.

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Why the Boom is Long Overdue (and Here to Stay)

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Why the Boom is Long Overdue (and Here to Stay) 3

By Roger James Hamilton, CEO, Genius Group

Virtually every aspect of our lives has been taken over by tech, so why is it that our schools, that are educating the business leaders of tomorrow, are still operating in much the same format as they did 100 years ago?

The global pandemic put digital learning in the spotlight and an Edtech boom has ensued, with companies like Coursera, Quizlet and Udemy seeing unicorn style growth. And the market is not slowing down. The education technology (Edtech) boom will continue.

Resilience and Growth

Unicorns are defined by rapid growth. Traditionally, these companies are not overly concerned with early profitability, long-term sustainability or value creation as much as with putting their competitors out of business.

But something different is going on in the Edtech market. The unicorn has lost its appeal. When learning platform Quizlet achieved unicorn status this year, CEO Matthew Glotzbach was keen to play down the moniker reserved for start-ups valued at $1 billion or more, preferring to liken his company to a camel.

Unlike unicorns, camels are real, hardworking beasts. Respected for their adaptability to various climates, resilience, and abilities to survive for long periods without sustenance. These are all traits much better suited to weather the economic storms created by the pandemic.

Despite their considerable abilities to adapt to challenging conditions, the climate is looking particularly sunny for camels within the Edtech market. In fact, all creatures great and small have the potential to capitalise on unprecedented growth in this sector.

The nature of education makes it a traditionally slow-moving area, which renders it unattractive to some investors. Yet, the coronavirus outbreak and subsequent surge in remote learning this year triggered a flurry of uptake in e-learning platforms.

We’ve seen the adoption rate for new technologies be accelerated by events like this before. For example, the SARS crisis of 2003 contributed to the boom in China’s ecommerce industry, as quarantines lead consumers to shop online. Of course, this market trend did not slow down once quarantine restrictions were lifted. Ever since, global online sales have risen exponentially. The same is set to happen in the Edtech market.

Providing a Solution

As with ecommerce in 2003, the demand for Edtech in 2020 was already there. It has been there for years. For the past decade at least, there has been a notable need in recruitment for qualified talent in data science, coding and digital. Edtech can bridge the skills gap, not only within formal education but also for adult learners upskilling and reskilling for today’s digital world.

Similarly, the financial crash of 2008 had the effect of fast-tracking the rise of the gig economy, requiring millions more to learn entrepreneurial skills. The idea of a job for life is now a distant memory. The Edtech sector can deliver the tools to equip students of all ages with the skills necessary for creating their own opportunities, as well as exchanging knowledge and collaborating in a digital economy.

Rising unemployment, as well as competition for jobs and government furlough schemes has seen interest in digital learning courses for adults also soar during the past few months. Figures show that the corporate e-learning market is set to increase by as much as $3.09 billion between 2020 and 2024.

Roger James Hamilton

Roger James Hamilton

The Edtech boom kickstarted by the pandemic is just the beginning in a paradigm shift in how we view education and work.

Over the next 10 years, with the rise of artificial intelligence, automated technology, and augmented reality, traditional, manual and customer service based roles will diminish and there will be less need for a large workforce when computers and machines can do the role equally well.

The need for a truly 21st century education system that reflects the needs of the job market is long overdue. Edtech companies are offering solutions to many of these issues that have troubled the economy for the past decade or more.

A Different Animal

Enter the zebra (back to our animal analogies). These types of Edtech businesses will be the ones to watch within the sector. With zebra companies, there’s a sense of community and collaboration, rather than competition. They understand that there’s room for more than one superstar in a market. Zebras are herd animals after all. The zebra believes that competition is healthy for everyone involved—something to watch and use for motivation and growth. It closely observes consumer trends and continually strives to solve new and developing problems for those consumers.

For zebra companies, profit margin is vital because it is necessary for steady growth and sustainability. Revenues hover between $5M and $50M, it serves customers within a specific niche, requires annual growth capital of $100K to $1M, and generally has more than four streams of revenue.

Zebras are both black with white stripes and white with black stripes – they have a fluidity in their approach and are camouflaged at the same time. This creates a double bottom line: Zebras want to conduct real business, by solving a pressing problem in a sustainable way, whilst reacting to contemporary challenges. This too could be said of the Edtech industry as a whole.

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