ASA Quarterly Review Q2 2022 by American Supply Association

ASA REVIEW ASA Winter Leadership Meeting

Volunteers converge in Arizona to discuss key association initiatives.

Why employee training is crucial for long-term success How to attract top talent How AI can help sales reps manage more accounts

Q2 22

From the CEO

ASA Review delivers on its promise When we embarked on creating and delivering a quarterly report on what ASA is doing to support members, along with providing quality, thoughtprovoking features similar to what our friends at the National Association of Electrical Distributors are delivering with their tED magazine, we never imagined that ASA Review would grow into such an exciting publication.

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Just as soon as we close one review issue, we challenge ourselves to see if we can top it the next time, and so far I think we have. It has been fun working to bring you such good content. We hope you have found each issue to be valuable to you and your teams. We probably don’t need to remind anyone that 2022 has been off to a rocky start. Supply issues and inflation continue to impact our markets. The fed’s rate increases are impacting construction markets and consumer spending, and, of course, the disruption from global uncertainty, especially in Europe, has made the start of this year tough to navigate.

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ASA’s Chief Economist Dr. Chris Kuehl sheds some light in this issue as he dives deep into what’s happening in the economy and what members should be thinking about. Chris’ monthly economic webinars and his weekly ASA podcasts have been heavily followed as members are looking for constant clarity on developing economic trends. His quarterly reports in this publication continue to provide value to our association and membership.

Also in this fourth installment of ASA Review, Dirk Beveridge discusses what to consider when creating a strategic plan for your company. We also take a look at how ASA’s Advocacy team is protecting your business from government overreach. Winsupply CEO John McKenzie gives us an in-depth take on the importance of employee training and its critical importance for long-term company success. With demand for labor continuing to cause pain for our members, we offer tips on how to attract top talent. Additionally, the latest report from our D.NEXT innovation lab at the University of Illinois in Champaign-Urbana takes a look at how the use of text messaging can deepen relationships with customers. Also, don’t forget to check out the article on artificial intelligence and how it can help inside and outside sales forces. Each issue has delivered great content on important topics, which is making the quarterly ASA Review a valuable tool for our members in staying ahead of the emerging trends you need to be thinking about. While we are delivering a limited number of printed Reviews to each member, we are delivering a virtual issue to more than 7,000 professionals. If you want to make sure your key team members are getting this virtual issue, email us at info@asa.net. Thank you for reading and thank you for being an ASA member. Michael Adelizzi, CEO

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ADVOCACY

ASA Codes and Standards Director Jim Kendzel (left) and ASA Government Affairs Director Steve Rossi power ASA’s Advocacy team, working closely with ASA volunteer leaders on critical initiatives in the legislative and codes and standards areas. Photo by Bob Levy/ASA.

Speaking with one voice

ASA’s Advocacy team works to protect our members’ ability to build successful and profitable businesses. By Jim Kendzel, MPH, and Steve Rossi One critical membership benefit that sometimes flies under the radar is the work the American Supply Association Advocacy team does in the government affairs and codes and standards arenas. ASA Director of Government Affairs Steve Rossi and ASA Codes and Standards Director Jim Kendzel make sure member companies’ best interests are always protected when it comes legislation, codes and standards and regulatory issues. Every day, ASA’s Government Affairs office monitors the latest legislative and regulatory developments – from Washington to Sacramento – and everywhere in between. Last year, out of the tens of thousands of bills introduced in capitals across the country, ASA was able to identify, follow and act on 125 different pieces of legislation that directly affected the PHCP/PVF industry. In Washington, ASA has been active with myriad issues from infrastructure to taxation, as well as proposed regulations that can potentially stifle growth. As America emerges from the COVID-19 pandemic, new priorities from the Biden administration and Congress attempt to change how business is done. The American Rescue Plan, the Infrastructure Investment ASA REVIEW

and Jobs Act, as well as the proposed Build Back Better Plan will fundamentally reshape our nation for years to come. At the state level, several states are proposing (or have proposed) new legislation that implements new mandates on our industry when it comes to the sale of products, as well as the increasing adoption of new climate and emissions goals. Over the last year, ASA has been successful on several fronts when it comes to protecting our industry. With the variety of tax and spending proposals making their way through Washington, ASA has been active in supporting commonsense legislative approaches to the challenges facing our industry. On the taxation front, ASA has fought against initiatives that seek to: raise the top income tax bracket from 37% to 39.6%, raise the corporate income tax from 21% to 28%, raise taxes on pass-through businesses (with a full 199A deduction to 35.5% or if the 199A deduction is eliminated to 43.4%), institute a “double death tax” on family businesses and requiring banks to report ALL business and personal financial transactions over $600 (including transfers between the accounts with the same owner). KEEPING MEMBERS INFORMED, ENGAGED AND LEADING

The Infrastructure Investment and Jobs Act bill signed into law includes language supporting a DRIVE Safe pilot program that establishes a three-year/3,000-driver pilot program with the Department of Transportation to allow drivers between 18 and 21 to haul interstate commerce. To assist our members in advocating on behalf of our industry, this past fall, ASA joined our colleagues at National Association of Electrical Distributors to hold the first-ever virtual Capitol Hill fly-in. This was a unique opportunity for our members to have direct contact with senators, members of Congress and their staffs. ASA and NAED staff held a briefing session for participants and Senate Minority Whip John Thune (R-ND) provided a welcome message to kick off the event. As a result, productive discussions were held through 50 different appointments, urging Congress to protect LIFO, support the bipartisan infrastructure package, support/co-sponsor the REINS Act (reduces the number and streamlines regulations from the executive branch), keep stepped-up basis, repeal the estate tax, as well as several other issues important to our industry. In California, ASA was able to achieve victory for our members on AB 100, a bill that regulates the manufacture and sale of endpoint fixtures that conform to the NSF 61 2020 standard related to lower lead extraction limits on drinking water endpoint devices. ASA worked with a broad coalition of organizations to make changes to the bill that will give distributors and manufacturers an appropriate amount of time to supply compliant fixtures, while selling remaining stock. With the assistance of our contract representation at California Strategies, ASA was able to work with the bill author, as well as coalition partners, to gain a year extension on a sell-by date for compliant product, while gaining an additional six months beyond the manufacture date to allow our distributor members time to clear their inventories of non-compliant fixtures (see more in the codes and standards update below).

As we progress through 2022, ASA will continue to monitor and take action where appropriate on legislation and regulations affecting our industry.

Codes and standards update

ASA is committed to bringing the voice of wholesalerdistributors and their supply-chain partners to the table where codes, standards and regulations are developed. Over the last 10 years ASA’s presence has grown significantly in this area, and today the ASA Advocacy team participates in more than 40 different committees involved in the development of product standards, building management systems standards and model codes impacting industrial, commercial and residential construction. The team’s major objective in representing ASA members is to ensure the codes and standards developed do not have a negative impact on access to new and innovative products, and the ability to distribute those products in a fair market. In addition, we work diligently to keep our members apprised of trends in code and regulatory development to ensure they have critical information to plan for their future growth and possible changes to the market conditions. As background, the U.S. codes and standards process is a combination of non-government organizations that develop consensus standards and model codes that are considered by local, state and federal agencies for adoption into regulation. The consensus process brings together experts from the following sectors: regulatory, manufacturing and users to develop the industry standards and model codes. Until ASA became engaged in the process, the wholesaler-distributor sector of the PHCP and PVF supply chain was not represented. The ASA Advocacy team is proud of the success we have had in representing our membership and the PHCP/PVF industry as a whole. Below are some examples of our success: S ignificant success at code hearings: Model codes are on a three-year review cycle and ASA has been highly successful over the last two cycles in having the voice of our members heard. Through the hard work of member volunteers on the ASA code committees in developing positions on proposed code changes, the Advocacy team was able to provide oral and written testimony on behalf of our members. We were successful in more than 80% of the positions we developed.

The ASA Advocacy team played a key role in changes made to the California-based AB 100 bill that will now give distributors and manufacturers an appropriate amount of time to supply compliant fixtures, while selling remaining stock as to conform to the NSF 61 standard related to lower lead extraction limits on drinking water endpoint devices. Shutterstock photo.

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A dequate implementation times and low impact on inventory: In 2020, NSF Standard 61 was revised to provide a lower lead extraction limit on drinking water endpoint devices; devices that are typically installed within the last liter of the water distribution system. The Advocacy team worked with other organizations to ensure the new requirement would be implemented with sufficient time for the industry to comply, Jan. 1, 2024, and for the first time, due to ASA’s active involvement, the implementation date was specifically noted as being applicable to the date of manufacture and not the date of sale. This added wording,

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Impact of climate change on our market: There is significant standards and code activities directly related to addressing climate change. As an example, the Advocacy team has been spending a significant amount of time on the switching to low-greenhouse gas-emitting refrigerants and the potential impact on our members related to storage of the refrigerants. ASA joined with HARDI, AHRI and other trade organizations in successfully updating the International Fire Code to incorporate safe and reasonable storage requirements for the refrigerants that should have a minimal impact on the majority of our members, while also providing a safe means of storage.

ASA teamed up with the National Association of Electrical Distributors to host a virtual fly-in last fall that resulted in 50 different appointments with members of Congress and their staffers where productive discussions were held on topics such as LIFO, estate tax and infrastructure.

specifically requested by ASA, ultimately led to the adoption of the new requirement in California to be based on a manufacture date and allowing wholesalers-distributors time to sell their existing inventory of product. F air market conditions: In December 2020, the Department of Energy adopted a new rule concerning the testing of multi-head showerheads which was significantly different than the testing required under the nationally accepted industry standard. ASA opposed the proposed rule change through written and oral testimony. ASA member concern was based on the significant resources invested in designing products to comply with the previous DoE requirements and the potential of creating an unfair market advantage to product suppliers outside the U.S. once the new rule was adopted. ASA joined with the Alliance for Water Efficiency in a successful appeal of the DoE decision, resulting in the DoE reversing the ruling in late 2021. P roduct access to market: The ASA Advocacy team has been diligently working to ensure that press-connect fittings, currently supplied by many of our members, continue to be accepted in the marketplace. ASA recently provided oral testimony to the International Association of Plumbing and Mechanical Officials (IAPMO) Standards Council in opposition to two proposals that, if adopted, would ban the use of press-connect fittings in refrigeration systems. The IAPMO Standards Council decided in favor of the ASA position. In addition, ASA has brought together a coalition of organizations working to reverse the Veterans Affairs Office of Construction and Facilities Management decision to ban the use of press-connect fittings in plumbing systems, except for emergency/temporary situations. As of the writing of this article, ASA is awaiting a response from the VA on our position.

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The above are just some of the many success stories the Advocacy team is proud of achieving through the hard work and expertise of our volunteer members. There is no doubt a significant amount of our time is engaged in meetings and discussions that might not directly impact our members. However, to ensure our voice is heard when it needs to be heard, we need to be engaged and at the table building valuable relationships and being proactive instead of reactive. As we look forward, the phrase “the future is now” comes to mind. The Advocacy team is spending increasing amounts of time and resources related to legislation, regulatory, codes and standards activity related to addressing climate change through energy/water efficiency, de-carbonization and green building design. The Advocacy team is taking leadership roles on industry coalitions and committee activities, ensuring we are at the forefront of these changes and ensuring the voice of our members is heard. In addition, we are committed to keeping our members up to date on these activities to ensure they can be prepared for and be ready to serve the new markets associated with those activities addressing climate change. To keep informed on our activities and successes we ask that you be sure to read our weekly updates provided in ASA’s electronic newsletter, ASA Insights. In addition, members of ASA can visit the ASA member’s only website pages at www.asa.net to gain up-to-date information on federal and state activities impacting the PHCP and PVF market.

Each Year ASA Monitors: More than 150,000

federal/state pieces of legislation.

More than 70,000

federal/state regulatory actions.

In 2021, tracked 125

pieces of legislation directly impacting our industry.

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CORPORATE STRATEGY

To develop a strategy that allows you to change as fast as the world is changing, you need to put considerable thought into where and how you will innovate. Shutterstock photo.

Developing a winning company strategy Where to begin? By Dirk Beveridge, Founder UnleashWD As COVID continued to rage it’s destructive self upon our businesses, I gathered more than 100 leaders from 27 distribution companies for a virtual three-week strategy sprint to lead them through the process of developing their business strategy. When I asked, most said that strategy was often mentioned as a “should do,” but the process of developing the strategy for their business too often took a back seat to daily operations. When I probed a bit more, one CEO said: “I don’t think we have regular, deep and strategic thinking. The depth of thought necessary proves difficult and seems to be unintentionally avoided.” And therein lies the challenge for most distributors. Time is not the problem. These 27 distributors found the time for our virtual sprint. The challenge more often is uncovering the thought that must be undertaken. Strategy development requires a series of conversations, explorations and deep thinking. So where do you start? Ideally, your strategy should serve existing core ideology (your purpose, mission and values), as well as a defined vision (future reality you really believe is possible with committed effort). From there, your strategy formulation in the end will address five core questions: 1) Arena - Where should we compete? 6

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2) Innovation - Where must we innovate to fill an untapped need? 3) Vehicles - How will we get in front of our target market? 4) Profit - How will we make a profit? 5) Moves - What will be our sequence of moves? Jack Welch, former CEO of GE said: “In real life, strategy is actually very straight forward. You pick a general direction and implement like hell.” This general direction, your strategy, must be rooted in a deep understanding of the current situation and inspired by a compelling vision of the future. You then begin to make choices that close the gap between today’s reality and tomorrow’s success. Here are some of the core elements of strategy development to guide the deep thinking required.

Disruptive forces

In my book “INNOVATE!” I describe a model of “Peering into the Future.” In essence, this guides you through a process of identifying the mega trends that are changing how we live, work and play. This is a great place to start — research and/or brainstorm these trends and then identify which of these you believe will make their way into distribution, the markets you serve and your customer base. From there, it is good to ask these questions: 1) I f we were to place a bet on identifying the most significant

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trends that will change the way we do business in the future, which would we bet on? Then, for each trend “bet on” ask: 2) Why this trend? 3) What implications will this trend have on our business? 4) As we peer into the future, what significant DANGERS must we focus on? 5) As we peer into the future what significant OPPORTUNITIES must we focus on? 6) How are we feeling relative to the pace of change that we will experience?

Customer forces

At the center of your strategy must be creation of value for your customers. You need to think deeply about how you will lead them to a better future for which they are willing and capable of rewarding you. To get started, ask these questions: 1) How are our customers’ expectations, requirements and needs changing? 2) What will change over the next 3-5 years regarding how they buy and what they buy? Key buying criteria? Experience they expect? Demands on their suppliers (you)? Use of technology? 3) What will not change regarding our customers?

Envisioned future

Strategy should close the gap between today’s reality and tomorrow’s success. As a result we must start with the end in mind. Here are some questions to use in leading this discussion: If we were meeting three years from today — and you were to look back on these three years: What goals would we have been laser focused on achieving? We will have considered ourselves having “won” when… What has to have happened

during that period for you to feel happy and satisfied about our progress? We will measure our success on what criteria?

Significant opportunities

To focus your resources on the opportunities that will build towards long-term relevance, sustainability, and profitability, begin by asking: 1) What types of businesses represent the greatest opportunity? How would you rank them? Why? 2) What geographic markets represent the greatest opportunity? How would you rank them? Why? 3) Are there product or supplier issues that will drive where we compete? What are they? 4) Are there competitive issues that will drive where we compete? What are they? 5) Are there economic issues that will drive where we compete? What are they?

Innovations

To develop a strategy that allows you to change as fast as the world is changing, you need to put considerable thought into where and how you will innovate. To bring structure and a depth of collaborative thinking to this important aspect of strategy, follow these steps: 1) For each area of focus (i.e. functional departments, mergers & acquisitions, geographic expansion, technology adoption) have each individual on the strategy team develop a list of potential initiatives. 2) Have each then identify their top three possibilities from that list and have them: A Give the potential initiative a name. BW rite a two-to-three-sentence description of the initiative, assuming someone would ask “Tell me about that.” C Write out the purpose of undertaking this initiative. D Write out the ideal outcome should the initiative be fully resourced. 3) Lead the strategy team through discussions of each to make the go or no-go decision.

Your one-page strategy

In the end, you’ll want to take your conclusions and define the handful of strategic initiatives the leadership team will commit to. These initiatives can be outlined on a one-page document that shows their relation to the core ideology and vision. While this process is not necessarily easy, what you will find is that the commitment to work through the process not only creates an energy that you will build upon, but it brings the team closer together. The process is equally as important as the outcome. Beveridge emphasizes that strategy development requires a series of conversations, explorations and deep thinking. Photo by Darryl Webb/ASA.

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Dirk Beveridge is a distribution thought-leader, author, speaker and the founder of UnleashWD. Learn more at unleashwd.com.

ASA WINTER MEETING

Positioning ASA to meet our industry’s future challenges

Winter Leadership Meeting tackles topics of central data repository and sustainable fundraising. By Bill Condron, ASA President Photos by Darryl Webb/ASA

All, I hope you are well and spring has started to bloom in your part of the country. I wanted to take a moment to update you on the ASA Winter Leadership Meeting held in February in Scottsdale, Arizona. As an aside, spring had not yet sprung in the desert as it was 40 degrees and raining for the entire visit. When Boston has better weather in February, you know you are in a rough climate! This was the first winter meeting we had been able to hold in person since we met in Orlando in February 2020, right before the world shut down. This year’s event included almost 100 ASA volunteer leaders from around the industry. This group included a great mix of wholesalers, manufacturers, reps, buying group executives and many others. Thanks to all of those who took the time to attend. It was great to be able to get together again in person to see old friends and meet new ones. It was even more heartening to see so many people take time out of their very busy schedules to offer their insights and counsel to ASA.

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I know we all realize what a great business we are in and talk often about how we have to do a better job of marketing ourselves to attract new people to our industry. And we should. But to see that many people commit their time to help their industry association find ways to provide even more value to their membership was remarkable. It’s also a great reminder of the many great people we have in our business.

This meeting was a great reminder of the many great people we have in our business. Data repository

Now, what did we talk about? ASA CEO Mike Adelizzi asked the group for help on two different topics. The first was around whether ASA could create a repository of data for members to use as they build out their e-commerce effort. We all realize the need for a robust online offering as e-commerce continues to be a growing share of the market. However, as the group discussed and debated the topic, we realized how much more complex the situation is currently.

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Many wholesalers have already embarked on their digital journey and are somewhere down the line with their data needs. Others are members of buying groups that are attempting to provide this value on their own. In short, the group decided we needed to review the topic more deeply before making any sort of commitments as an association.

Long-term fundraising

The next subject was around sustainable fundraising. ASA is constantly leading initiatives to help its members survive and thrive in the current marketplace. The recent mega initiatives around PROJECT TALENT, PROJECT VITALITY and the very innovative D-NEXT innovation lab that we host at the University of Illinois are great recent examples.

2022 ASA Winter Leadership Meeting Key Topics C ould ASA create a repository of data for members to use as they build out their e-commerce effort? S ustainable fundraising for ASA programs and initiatives. ASA REVIEW

But all of these great initiatives need financing to get them off the ground. The volunteers worked through a great discussion around ways ASA could build a sustainable fund that could be used for these incredibly important programs for our members. Overall, the time in the desert was extremely productive. More than anything, it always impresses me to see Mike Adelizzi and the team at ASA look for ways to continue to push themselves to provide even more value for their members. It is the sign of a very vibrant and valuable organization. I know all the volunteers who joined me at this year’s winter meeting can attest to this and so can every current member of ASA. And if you are reading this and are not a member, for all the reasons shared above and so many more, please consider joining your industry association. Be well, Bill Bill Condron is the president and CEO of Concord, New Hampshire-based The Granite Group and is the 2022 American Supply Association president.

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NEW TECHNOLOGY

Cohen says by helping inside and field sales reps effectively manage more accounts, AI will enable you to boost productivity, improve customer satisfaction and reduce labor costs.

How AI can help sales reps manage more accounts

Artificial intelligence is swiftly becoming an essential part of B2B sales. By Benj Cohen Artificial intelligence is a powerful tool that can solve complex business problems, including hitting sales targets despite labor shortages impacting sales staff. Increasingly, businesses are utilizing AI to support and enhance their sales teams. For instance, AI can forecast what customers are likely to buy — and when — by analyzing customer data, sales histories and order-to-cash processes. This intel gives sales reps the tools to be highly productive and handle more accounts. AI is swiftly becoming an essential part of B2B sales. Gartner predicts that “By 2025, 75% of B2B sales organizations will augment traditional sales playbooks with artificial intelligence (AI)-guided selling solutions.” While an efficient sales process is always desirable, it’s even more critical with the current labor shortages plaguing nearly every industry, including distribution. AI eliminates guesswork and time-consuming manual tasks, so sales reps make better recommendations, are more helpful and efficient, dedicate more time to customer-facing activities, and focus on making sales. According to Gartner, nearly 90% of chief sales officers surveyed were planning to invest in or had already invested in AI-driven technologies and analytics. As the technology continues to improve, more distributors will recognize the benefits of AI and implement it into their workflows. Unfortunately, AI will be less beneficial for your business the longer you wait to adopt it. McKinsey estimates that frontrunners of AI implementation will increase their revenue by 122% by 2030, while those late to the game will only see a 10% improvement. Simultaneously, businesses that resist AI will see cash flow drop by 23%. By helping your inside and field sales reps effectively manage more accounts, AI will enable you to boost productivity, improve customer satisfaction and reduce labor costs. 10

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AI helps inside sales teams be more effective

In the past, inside sales reps were relegated to basic tasks such as processing reorders and screening leads. Today, things have changed. With the help of AI, inside sales reps have a more proactive and dynamic role. Instead of acting as customer support, inside reps have the tools to manage larger accounts, solve complicated customer problems and reach higher sales goals. There are various ways AI can make inside sales reps more effective and efficient, including: Account prioritization: This feature helps reps determine who to call without wasting time reviewing account details and order histories. It suggests accounts based on which ones are soon to churn, who is likely to make a purchase and who needs to reorder. Product suggestions and AI-powered catalog searching: These tools enable reps to be consultative and effectively upsell and cross-sell without a deep understanding of each account and product. Automated reorder models: These AI models eliminate the need to track replenishment needs manually. With these insights, inside sales reps always know which customer is due to reorder at any given time. Some AI can also automate reordering completely; your customers get what they need without speaking to a sales rep first. Automatic data entry: AI eliminates the need for timeconsuming manual data entry. As a result, your sales team can spend more time helping customers and closing sales. Customer insights: When your sales rep gets a call from a customer, they will see various account details at the touch of a button. The system will provide information on the customer’s purchasing behavior, reorder needs, open support tickets and churn risk.

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AI-driven tools help inside sales reps every step of the journey, from qualifying leads and making calls to solving complex problems and closing sales. Most importantly, AI automation and customer insights free up time otherwise spent on mundane tasks so each rep can handle a greater number of accounts.

AI enables distribution field sales reps

Although many businesses have started to shift their focus away from field sales in favor of eCommerce and inside sales, field sales reps still play an essential role in distribution. AI enhances the traditional sales role to enable field reps to be more consultative, make better product recommendations and answer customer questions on the spot. Additionally, AI identifies what accounts field sales reps should visit each day. Reps can sometimes squeeze in an extra appointment since AI-powered account prioritization and route planning maximizes their schedules and time in the field. Field reps can use AI to prepare for in-person meetings by reviewing account information and customer overviews. With mobile apps, they can see which upsell and cross-sell recommendations to pitch during their meetings and quickly access product data to answer customer questions. Integrating AI into their workflows will make field sales reps more valuable to customers, improve wallet share and help them manage more accounts.

Omnichannel success

The more data you have, the more successful your AI implementation will be. Traditionally, account information was split between various sales channels, and critical information was closely guarded by reps who didn’t want to lose customers to their peers. With AI, this type of data siloing and internal competition is no longer necessary. Your inside sales reps may know something about an account that a customer service rep doesn’t and vice-versa. Imagine how much your sales team could improve customer interactions if they knew everything about them – what support problems they’ve had in the past, which products they prefer to buy online, and how frequently they reorder certain items. With such detailed customer information, your sales reps can help each customer more quickly and effectively, allowing them to manage more accounts while offering an outstanding customer experience. The right AI solution will enhance your entire organization and enable your sales team to be more impactful. As McKinsey discovered, early adopters of AI are slated for success, while those who ignore technology trends will lose money in the end. There is no time like the present to begin your AI-powered digital transformation. Benj Cohen is the founder and CEO of Proton.ai, a growth engine for distributors. His company’s mission is to help distributors harness cutting-edge AI to drive increased sales.

Support Operation Rise & Conquer All ASA member companies that raised $2,000 or more for Operation Rise & Conquer in 2021 were entered to win a week-long trip to Crested Butte, Colorado to experience the program first-hand, meeting veterans who are benefiting from adaptive sports! The following ASA member companies can choose one person to visit:

Etna Supply

Consolidated Supply

First Supply

ASA and Operation Rise & Conquer would like to thank all ASA member companies that continue to support this transformative program for our veterans.

TO LEARN MORE about Operation Rise & Conquer and/or to donate, please use the accompanying QR code.

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EMPLOYEE TRAINING

The ROI of training: Why training is essential for long-term success By John McKenzie, President at Winsupply Inc. There’s no greater asset than your people. I’ll continue to make business decisions based on this fact. Most businesses buy and sell something. All successful businesses make a profit. The key question is, how do you sustain and/or grow that profit? At Winsupply we’re focusing on building entrepreneurs. Your people are the backbone of your business. It’s what separates you from your competitors. They are the ones who will go above and beyond for your customer. To survive and grow in the supply house industry is not to just provide product and availability. Instead, we must also bring solutions to our contractors and customers. Let’s talk about training objectives for your organization. This should be the centerpiece from which you can build your training program. The mindset of our industry is about employee knowledge and product expertise. We need to teach employees to become

“Your people are the backbone of your business. It’s what separates you from your competitors. They are the ones who will go above and beyond for your customer.”

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solutions providers. That knowledge should translate to your company having the materials your customers need, when they need it, and getting those materials to them quickly. Your training programs should always keep this objective at the forefront. At Winsupply, the operational needs of our local companies and our values are the driving force for our training objectives. Our training group’s mission is to support our employees in every way possible. We offer training focused on what our local company employees need to be successful. Through our training, we teach the importance of ownership. This includes training in sales, leadership, business processes, and in soft skills through diverse delivery formats. All these classes have one very important factor in common: they exist to make our companies the best wholesalers they can be. When I think about the importance of training and the profound impact it can have on a company and its employees, one particular person comes to mind. I first met Bobby Kellar in 2015 while in graduate school at Wright State University. Bobby was a classmate. He stood out. I remember Bobby asking the professor a lot of questions. He was curious. Also, who can forget when we were getting ready to take professional photos one Friday afternoon. Bobby showed up in his Army uniform, he was serving in the reserves, while the rest of us were sporting our business attire. Just from class, I could tell Bobby was motivated and hard working. I said to myself, “I’m going to hire this guy.”

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In January 2016, I hired Bobby at Winsupply as a manager trainee. He went on to train and work in customer service, followed by a department we call shared purchasing solutions. Soon after, he became the operations manager of Winsupply’s regional distribution center in Jacksonville, Florida. Today he has been assigned the general manager position of our newest regional distribution center in Oklahoma City, set to open this year.

Developing Training Goals Here are some questions you should ask yourself to get started: Where do we want to see our organization in the next three to five years? Do we expect any changes in our market over the next few years? If we expect some changes in the market, what can we do to be one step ahead of the competition? What are our “pain points?” What jobs should we fill to stay ahead of the competition? What skills will our employees need in the future to match market demands? What digital skills do younger employees bring to your company? From classmate to upper-level management. Bobby Kellar is a perfect example of what people development and training can lead to, and why Winsupply puts so much time and effort into training our people. We aspire to see our people grow and succeed, just like Bobby has.

your organization’s short-term and long-term goals before developing training programs to improve your employee’s skill set. Knowing these goals will help identify which skills are crucial to support your business growth. Knowing your company’s goals can set the foundation for improvement. For example, growing digital commerce will change the way customers engage with your business. This, in turn, changes the way your products are marketed and sold. Ensuring your employees have the training to deal with technology is therefore important. Companies can reap the rewards of providing training for their employees because well-trained people help increase productivity and profits. Investing in employee training will improve worker retention rates, customer satisfaction and creativity for new ideas. Effective training saves labor by reducing time spent on problem-solving and saves money in the long run by producing a better workforce. Winsupply has developed “A Day’s Work in a Day” (ADWIAD) based on the Japanese philosophy, Kaizen. The term in Japanese means “change for the better.” The philosophy sees improvement in productivity as a gradual and methodical process. The concept of Kaizen encompasses a wide range of ideas and involves making the work environment more efficient by creating a team atmosphere, improving everyday procedures, ensuring employee satisfaction and making a job more fulfilling, less tiring and safer. The art of constant improvement involves the idea of taking something that works well and then determining how to make it better.

Guiding Principles of ADWIAD and Kaizen

PLAN

aking gradual, unending M ACT improvements

“Know your organization’s short-term and longterm goals BEFORE developing training programs to improve your employees’ skill set. Knowing these goals will help identify which skills are crucial to support your business growth.”

Doing little things better etting and achieving S ever-higher standards

DO CONTINUOUS IMPROVEMENT CHECK

Benefits - Staying on Top Proactive instead of reactive Know what’s happening before it becomes a crisis

To begin your training journey, you must identify weak points. This allows you to target your training.

ollow best practices to be efficient and increase F Return on Investment (ROI)

Every industry and business values certain skills over others. The first step in identifying employee knowledge and a possible skills gap, is determining the business need. Know

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KEEPING MEMBERS INFORMED, ENGAGED AND LEADING

It’s important to expect employee turnover. Most organizations expect and plan for a certain level of employee turnover. We all know the operational and financial impacts are significant, especially for our industry where it can be hard to attract new talent. This is why effective training is essential to the growth, development and retention of our most indispensable asset, our people. Organizations should offer training that focuses on developing key positions within the company. You want your people to be able to branch out and grow. This will also help you retain their talent. Their development will help your organization grow.

If you break our business down into job functions, it makes ADWIAD much more doable. The functions are: Leader

Winsupply offers training through our Learning Management System. This system promotes development at all levels of the organization. Each specific job role such as operations, purchasing, sales, warehouse, fabrication and office management has its own career-development course. In addition, through our Management Development Training Program, existing and potential presidents of Winsupply will

Inventory Management Sales Workforce Warehouse Operations Administration Processes and Best Practices Data and Key Performance Indicators (KPIs) Assigning tasks to the appropriate person within your organization frees you and helps your employees develop.

“Effective training is essential to the growth, development and retention of our most indispensable asset: our people”

Here are a few basic tips on how to stay involved after implementation: Measure Results: Measuring the effectiveness of your training programs will help you recognize necessary changes.

Gather Feedback:

Input from those who have gone through your training programs can be valuable. You should ask your participants what they liked or disliked, what they found effective and what they would change if they could.

KEEPING MEMBERS INFORMED, ENGAGED AND LEADING

Engage Company Leadership: The goal of any employee training program is to improve the company’s performance. This is why it’s important to know what skills are crucial for business success.

Observe Industry Trends:

Just as businesses change, so should training. Keep an eye out for major industry trends that might require new training. For example, many postCOVID workplaces are now a blend of virtual and in-person learning.

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gain the knowledge they need to master the fundamentals of wholesaling, sales, leadership, our company history, philosophy and business model. The truth is, it’s not always easy. Building exceptional training programs is time-consuming. This is why many organizations use the same training year after year. But as our industry changes, reevaluating your training will help you stay on top. The value of an effective training program can greatly outweigh the costs. Effective training leads to more engaged employees, increased retention and lower turnover.

eward and Recognize Training Achievements: While R motivations can take various forms, the biggest motivator is recognizing and rewarding training efforts. This could include a simple certificate, recognition from management or a promotion. These steps will help encourage future learning and training. It’s also important for your training team to get “into the field.” They should be familiar with your industry and your company. With this knowledge, they can build training that fits their audience. Remember, more is not always better.

Here are a few things to keep in mind: ommit to Consistency: As an organization, your C employees need consistent content, so make it a priority. reate Learning Paths: Your employee training and C development program should be built around the job that you want to train your employee for. Courses can also be combined in a way that allows employees of different learning levels to progress to higher roles.

At the end of the day, your business requires an unattainable amount of time and decision-making. This means what is and isn’t completed is based on priorities. If you allow training your workforce to fall by the wayside, you will quickly reap the consequences. However, if you invest in your workforce, you will quickly reap the benefits. I hope this provides motivation for all of you to train, and train smart. John McKenzie is the president of Winsupply Inc.

INNOVATION Training should involve your audience. Activities such as group discussions, table activities and on-thejob lessons will create memorable learning.

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QUALITY Your training is the product your team delivers. It should be produced with the same level of quality that your company shows to its customers. Think of your internal employees as your customers.

TECHNOLOGY Choose a Learning Management System that fits your organization. With your content in one place, training can be simple and quick.

ECONOMIC UPDATE

Economic outlook

What is the level of worry as we had into the heart of 2022? By Dr. Chris Kuehl, ASA Chief Economist avoid actions that will make matters worse. The economic assessment that calls for a recession five, 10 and 20 years in the future is based entirely on guesswork and is really just a warning that if the conditions leading to that downturn are not addressed, there will be consequences. In other words, if governments do not deal with issues such as debt and inflation, and labor shortages and supply chain breakdowns, there is a very good chance a recession will develop. A business that doesn’t prepare contingency plans will face a crisis should the worst outcome emerge.

There is nothing more popular among economists and analysts than predicting a recession. After all, economists have predicted 16 of the last three recessions. Why is this? Why are there so many dire predictions when most of the time these do not come to pass? To understand the attraction, one must understand the job of the economist. The demand placed on the economic analyst is based on their ability to forecast, and under the best of conditions, this will be a risky undertaking. The business strategist needs to know what the environment will look like – will consumers have money to spend, will commodities and raw materials be available, will workers be available and will these costs and prices be reasonable? These are factors that can change in a flash, and the economist is supposed to figure all this out. Of course, they can’t do this very far in advance – their forecasts are like those of the meteorologist – pretty reliable for the next 24 hours, but awfully shaky two or three months in advance. And the economist gets asked about what will happen in five years. Given that demand and the inherent limitations, the analyst decides to warn. If they miss the arrival of a nice boom year, there will be no hard feelings, there is still time to react and take advantage. Failing to warn of impending doom is a disaster. The economist will adopt the most cautious stance with the understanding that few will complain if the recession is only a short downturn. Predicting a short downturn that becomes a major recession will make the analyst extremely unpopular. Beyond this instinct for self-preservation, there is the issue of wanting business, governments and consumers to 16

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So – how close are we to recession now? The talk recently has been all about the inverted yield curve and how this measure indicates a recession to follow. Why is that? Why is the relationship between two-year bonds and 10-year bonds such a big deal? It isn’t the inversion itself. It is what the investor thinks will happen with interest rates when inflation numbers are hitting 40-year highs. In a traditional inflation spike of this magnitude, it is assumed the central banks will get aggressive with higher rates. Think of the 1980s when Paul Volcker (the fed chair) started to ratchet rates higher and higher as a means by which to tame the runaway inflation of that decade. The issue then was money supply — too much in circulation. Why does money supply matter as far as inflation is concerned? Excess money means people and businesses are somewhat immune to the ravages of higher prices. The consumer and the business owner certainly notice the higher prices, but as long as they have cash on hand they tend to shrug their shoulders and spend anyway. Drying up the money supply cuts into the ability to handle the higher prices and that serves as a damper on more increases. The fed is not talking about sharp hikes – they are still committed to slow and cautious, although the threat of higher wages worries them. The majority of the inflation we see now is rooted in energy costs, and for the most obvious of reasons. The reality is that there could be an abrupt end to the Ukraine crisis (although not likely) and even without a settlement there will be additional energy resources brought to bear in the months to come. These actions will impact inflation far more than interest rate hikes, and this means that the threat of a rate-driven recession is reduced. It has been said that it is a downturn if your neighbor loses their job, a recession if you lose your job and a depression if the economist loses their job. At this point we still seem to be looking at a slowdown rather than anything more dramatic. Dr. Chris Kuehl does a weekly economic podcast for ASA members that can be accessed through the MyASA portal at www.asa.net.

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ATTRACTING TOP TALENT

There is no quick fix or answer to hiring key people. It takes dedication, persistence and a long-term vision.

Can you attract top talent in a tight labor market? Promoting all your company has to offer is essential in today’s environment. By Michael Adelizzi, ASA CEO When the American Supply Association conducted its labor study in 2015, we knew back then that our industry would be facing a labor pandemic with the pending loss of more than 50,000 employees by 2025, and more than half our labor force (100,000) by 2035. This prompted ASA to embark on PROJECT TALENT to provide the tools and social media advertising to support members’ efforts. Little did we know that a worldwide health pandemic and government overreaction in combating the crisis would rapidly escalate the need for labor and the rampant competition for labor brought on by disruption in other industries — all looking to fill escalating labor openings. While ASA is doing a good job of providing tools for members to use in attracting new team members along with investing heavily in creating interest in our industry through an aggressive social media campaign, the question still remains, can you attract top talent in a rapidly competitive labor market? Well, a big part of the solution, rests with you. I’m sure you don’t want to hear that, but it’s true. Your company brand is the No. 1 tool in attracting top talent. But far too few members self-promote the value to a perspective employee, especially before you ever get a chance to meet in person. Here are a few items that you should be employing to help your firm attract top talent ASA REVIEW

Start with your website!

A potential career seeker will spend hours looking at company websites to see what they can find out about the company before ever looking for opportunities. What does your website look like? Is it an attractive, exciting and easy-to-navigate website that truly expresses the great opportunities available at your company? Is it graphically appealing, innovative and interesting, inviting someone to look deeper to find out more? Most importantly, is it easy to find out information about career opportunities, why someone should want to work there and who to contact to find out more? Way too many sites, and way too many ASA member sites are very one-dimensional, and sorry to say, boring. Definitely not inviting and very difficult to learn more or who to talk to about opportunities. Many fail to highlight the company, its history and the mission of the company. Take time now to look at your site from the perspective of a visitor. Ask friends and family members to do a critique of your site as well. Friends and family can be brutally honest. If you hear that it may be time to upgrade your website, don’t on the cheap. Find a top-quality firm to work with to redo your most important marketing tool — your website. As a side note, investing to make your website exciting will pay dividends not just with attracting top talent but top customers and vendors.

Your company mission statement

What sets your company apart from every other company competing for talent? Why would someone be excited to work for your company? Your company mission statement is one thing that can get people excited about working for your company, and it should be prominently displayed on your home page because it’s why you get up in the morning, and it’s what is driving you and your team every day. So brag about it and promote it. And not just you, but every employee should be able to passionately talk about the company mission statement as well.

Promote career growth

Nothing keeps current employees or attracts potential employees more than the opportunity for career advancement. Does your company have formal career paths for various job positions in your company that define the experience and training needed for each position? If you have a great warehouse employee that would be great on the counter, are you training that person or do you put him on the counter and hope for the best? A formalized training program (for both new and seasoned employees) that is promoted externally will have many benefits. It will attract those new employees who see opportunity for career advancement. And it will impress customers and their employees who see the investment your company is making in your employees to better serve them. I have seen distributors that display the education completion certificates that their employees receive at their sales counter, in their showrooms and company breakrooms for customers and employees to see. Celebrating success pays dividends.

Be authentic

Foster a workplace that thrives on trust and respect for all individuals — and protect that culture every day.

Social media: Tell your story

At an increasing rate, potential job seekers use social media to learn about great opportunities. People talk, your employees talk, family members talk and they can all be talking about your company. So get your company out there on social media. You have a lot to talk about. Post about the great things your customers are doing. Post and celebrate the great things your employees are doing and brag about it. Have your employees post about what a great company they work for — their friends and families will see those posts and might be interested in joining your team. If your posts are liked or shared, your marketing reach increases, so get out there and start talking about your company. Do all of this as posts on social media.

Involve employees: They talk

More and more social media posts are from employees talking about the great experience and enjoyment they get from working at their company. Encourage those posts. Few marketing programs can top the goodwill that comes from an employee taking about the boss, the team and the great things happening. Great benefits not just in attracting talent, because people want to work where they are appreciated and where there is a supportive team, but customers read these posts as well — especially if a customer or one of their employees are linked to your employees.

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Don’t put on a show to snag a candidate. It’s critical the candidate knows exactly what he or she is walking into and can make a smart decision about the future. The only way to know if it is a fit is for both parties to have open eyes and clarity. In addition, if you overstate your value and it doesn’t measure up to their expectation a new employee has and they leave for another opportunity, it can have a negative impact on your brand. Disgruntled employees love to make posts and complain about a workplace or boss on sites such as Glassdoor, which is hard to overcome. Potential employees often check sites like Glassdoor.

What sets your company apart from every other company competing for talent? Culture, culture, culture

When you truly care for your employees, they’ll care for one another, your customers and the community. Go beyond amazing benefits. Foster a workplace that thrives on trust and respect for all individuals — and protect that culture every day. Word will get out. Your people will talk, and they’ll refer likeminded, talented people who believe in your culture and your mission. Measure your culture: There are many companies that can help you objectively measure your culture. Energage is a well-known company that can survey your teams to learn what they think about your company, culture and their excitement about building a career with your firm.

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Get your company out there on social media. Post about the great things your customers are doing. You have a lot to talk about.

Get out there and meet people

While more companies are engaging social media to find new employees, tried-and-true outreach efforts such as cultivating and developing a pipeline that will provide a continuous flow of quality candidates to your company shouldn’t be overlooked as part of your recruitment strategy. Meeting potential candidates at community colleges and high school career fairs, charitable events or even during Chamber of Commerce events can be fruitful. At in-person events, you have the opportunity to meet and talk to potential candidates face-to-face and quickly determine if these individuals are worth a deeper look. Connecting with high schools and colleges to hire an intern can pay great benefits. As chronicled in a previous ASA Review issue, bringing in a paid intern has many benefits, including getting to know the candidate, getting your team members to know the candidate and letting the candidate get to know you. If you end up hiring the intern once they graduate, they will talk to friends at school and your company will get a great reputation as a pipeline to other students.

Don’t hire to fill a spot

It’s critical to find the right employee who will make a great fit for the job, and more importantly, your company culture. Assuming you have a strong team of hard-working, dedicated people, hiring the wrong person just to “get someone in” can have a very negative impact on your company, your culture and the other employees. There are many services out there that you can employ to screen a potential candidate. ASA has

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used Caliper to help us get a deeper glimpse at a potential candidate. They aren’t foolproof, but it helps to have an objective review of a candidate.

Keep your own people

It’s always easier to keep your current employees — at least the good ones. But in the long run, it’s cheaper to invest to keep your own staff than to replace someone that left for greener pastures. We don’t advocate throwing around more money to keep them, but making sure that they have competitive wages and benefits from health care, retirement or even daycare will attract and retain people. ASA has compensation reports to help shed some light as to what others are paying their teams, so make sure you check those out. There are many things that you can do to keep your team together. Virtually every item listed in this article not only will help you attract good people, but it will help you keep your current employees. Everything from your company culture, career pathing for employees, to bragging about your team will help engage your team and keep them committed. There is no quick fix or answer to hiring key people. It takes dedication, persistence and a long-term vision. But over time, maybe over a few years, the results can overwhelm you as you can have happy, productive and caring employees committed to success as much as you. Mike Adelizzi is the CEO of the American Supply Association.

INNOVATION

A study by Simple Texting revealed 98% of all text messages are read by the recipients.

Texting to expand customer communications By Beth Ladd, ASA Vice President of Innovation Editor’s note: The staff at ASA’s D.NEXT innovation lab at Research Park on the campus of the University of Illinois in Champaign-Urbana recently concluded a study on the proliferation of text messaging as a tool to deepen customer relationships. These are the lab’s findings. For more on the D.NEXT innovation lab, visit www.asa.net. The last two years have been a roller coaster of changes for distributors and customers alike. Before 2019, traditional sales were a majority of customer communications followed by a smaller percentage of remote and digital self-service. However, during 2021, B2B customer behaviors adapted to accelerate the number and frequency of remote and digital interactions to balance with in-person. A recent study by McKinsey & Co. notes that B2B customers now report using 10 or more channels to interact with suppliers — up from five in 2016. That means your customers’ expectations are higher than ever when it comes to their supplier relationship and communication experience. An implication is that a business cannot serve the needs of all segments of customers without opening new channels of communication. Customers expect a multi-channel experience to reduce the friction of finding, buying and returning products, as well as support for the sale. And one of the least intrusive and most ubiquitous communication methods available today is text messaging.

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Texting characteristics

Many would not necessarily think of text messaging as a B2B communication channel, but the reality is that not only is it a viable option, it is already commonplace. According to a 2019 study by EzTexting, 84% of customers already receive text messages from businesses, and 69% would like to be able to reach out to businesses via text. Your customers have already been exposed to texting by other businesses, and they seem to be ready to use it. So, given that this is a viable channel for communicating with your customers, what differentiates texting from other communication channels? Text messaging has improved visibility relative to traditional channels of communication because of its prominence on your customers’ devices. A 2020 study on texting by Simple Texting found that:

Customers check their phone anywhere from 3-7 times an hour; 42% of millennials check their phone more than 10 times a day;

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9 8% of all text messages sent are read by the recipients; and 6 0% of surveyed customers would like to be able to text businesses back about support. These statistics should not be taken to mean that texting is “superior” to or should replace current channels of communication; instead, we believe texting complements existing channels and allows your business to capitalize on each channel’s strengths and each customer’s preferences. For example, calling someone on the phone gets excellent and unambiguous communication, but requires the recipient to stop and respond. Email allows for asynchronous communication and record-keeping, but suffers from low visibility and can struggle with back-and-forth conversation. Texting is asynchronous, has excellent visibility and is built for ongoing conversations, but can’t send files and only allows for shorter messages. Choosing which channel of communication to use for an interaction allows you to improve your customers’ experience.

One option for business use is a dedicated SMS messaging service; a piece of software that centralizes texting ability and contact management in one space. These services allow a business to send and receive text messages from one central phone number, manage their contact info and create a single point of contact for their customers. Instead of sending a message from a personal phone, these services use a program to create and send text messages. These services are surprisingly affordable for how useful they are. Many of these services have a subscription package, where you pay a flat monthly fee and receive a set number of messages. Some instead charge on a text-by-text basis separate from maintaining the account. The cost of these services is almost entirely dependent on the volume of texts sent; cost-per-text ranges from 2 to 6 cents per text, and plans can be as affordable as $25 a month.

Let’s consider an example use case to demonstrate what we mean — updating a customer on the status of a unique order. JakeThePlumber has special-ordered two pairs of valve stems from OmniChannel Distribution for a service job. The manufacturer says they expect to ship them to Omni next Tuesday, but when Tuesday arrives, the valve stems are not included in Omni’s shipments. Rather than email or phone JakeThePlumber, Omni’s shipment coordinator could simply text from Omni’s existing phone number to briefly update them on the status of valve stems. No interrupting a job, no voicemail, no chance of the message being buried in an inbox — just a quick text to keep them in the loop.

“The ASA D.NEXT lab believes texting complements existing channels and allows a business to capitalize on each channel’s strengths and each customer’s preferences.” How can I text my customers?

When we think of texting, the experience that most likely comes to mind is using a personal phone; after all, it’s the form that people are the most familiar with. However, when considering texting in a business context, there are several concerns with the use of personal devices. Different employees have different phones and different numbers, meaning there isn’t a unified message record between the customer and the business — it’s fragmented across individuals’ devices. This significantly increases the risk of information not being shared within a business and miscommunications developing. Without a central hub, securing and maintaining master customer contact data is also nigh-impossible. So, if texting is an excellent channel for short-form communication, but texting using personal devices is unwise, what alternatives exist? ASA REVIEW

A recent study by McKinsey & Co. notes that B2B customers now report using 10 or more channels to interact with suppliers — up from five in 2016.

Evaluation of SMS messaging programs

To understand the real potential of this software, the D.NEXT lab evaluated 12 of the most highly ranked SMS services on the following criteria: E ase of creating and continuing two-way conversations C hat, contact and user management B arriers to entry and use The majority of the services in this space are tuned for mass-marketing, sending the same message to hundreds or thousands of customers; they are capable of two-way conversations, but it is not their primary focus, and this shows in both functionality and user experience. During our evaluation, we opened an account with each service and signed up for the free trial. Every SMS service we tested offers a free trial, typically two weeks with a limited number of free messages and near-complete access to the program features. We tested each service’s functionality, including but not limited to: 21

S ending and receiving messages, pictures and files

T he ability to schedule a message to send at a later time.

I nitiating new conversations and maintaining existing ones

P roviding a built-in template creator that enables business users to create and insert reusable messages if you want consistent or “canned” messaging.

C reating and managing contacts S cheduling messages and auto-responders W riting and using message templates C reating and managing users and permissions There are some functions that we were unable to thoroughly test, such as text-enabling a landline or data reporting.

O ffering both a browser-based interface and a mobile app. T he option to reserve a toll-free or local number for exclusive use. T he ability to alternatively text-enable an existing landline number after a verification process. S upporting importing contacts through a .csv file (two of the three also support importing directly from Microsoft Excel). S upporting multiple business users, though not necessarily for free, and enabling the owner to manage user permissions; and

Your valve order has arrived at our facility.

It will be delivered by 4 p.m. today.

Thank for the update. We will keep an eye out for it at the jobsite.

Texting software common functionality

Out of the 12 leaders we tested, the D.NEXT lab favors three services for ASA distributors. These three differentiated themselves from their competitors by readily allowing a user to initiate and continue two-way conversations, straightforward and robust user interfaces, and affordable pricing without compromising functionality. While not necessarily part of the evaluation criteria, during the course of our testing, we found that the three favored services have common functionality that includes, but is not limited to: T he ability to send and receive SMS & MMS messages and easily attach images. T hey do not charge the user for receiving SMS messages, but they do charge for receiving a MMS (Multimedia Messaging Service) message.

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T he capability to integrate with other software using an API.

Considerations before use (aka the fine print):

These services are considered A2P (application-to-person) messaging instead of P2P (peer-to-peer) messaging. It is important to be aware that A2P messaging falls under regulations and restrictions that you do not face when texting as an individual. A prominent U.S. law regulating the use of A2P messaging is the 1997 Telephone Consumer Protection Act. That law is intended to protect individuals from text messaging spam. The law requires a business to obtain written consent from the customer (opt-in) before being permitted to send messages using an A2P service. Please ensure you are prepared to comply with messaging regulations before engaging with your customers via A2P text messaging. Further, with the inception of the European Union (EU’s) General Data Protection Regulation (GDPR) in May of 2018, U.S. companies must employ an additional level of vigilance and rigor if there is a chance that they may be the “controller” or “processor” of the “personal data of data subjects” that the EU designates. A U.S. company with a strong internet presence should ensure they are GDPR compliant. This necessitates customer consent (opt-in) as it is one of the only justifications for your use of other people’s personal data.

Interested?

If you would like to learn more about this class of software, which services we preferred, what similarities they share, as well as what differentiates them, The D.NEXT lab has compiled a detailed analysis for ASA members. To access the full detail, please visit the ASA member portal login (MyASA) at www.asa.net to access this member’s only report.

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NETWORK2022 November 9-11, 2022 Fairmont Chicago Millennium Park | Chicago, IL

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