Graziadio Business Report Blog

The telegraphed day of reckoning has finally arrived and many commodity exchange-traded funds (ETFs) and exchange-traded notes (ETNs) are now finding themselves in the regulatory line of fire.

I have been on the record with my MBA students and with many of my colleagues in the investment business for quite some time regarding the multitude of problems associated with commodity ETFs. Finally, it seems corrective actions are being taken.

Just recently, UNG, the ETF that attempts to track natural gas futures’ performance, was subject to massive price distortions. UNG built a premium into its price versus its net asset value (NAV) of as much as 20% due to large inflows of money, which, ultimately, reflected investors’ bottom fishing. UNG was suddenly unable to expand its position due to an abrupt fear of breaching position limits in the futures pit.

The lesson learned? When an ETF cannot deliver on its strategy because of regulatory fear, the model is pretty much broken. Continue reading ‘Welcome to a New “Normal” in Commodities?’

This is the last of a series of four blogs devoted to the topic of customer retention. Read Part 1, Part 2 and Part 3.

The key to competing for retention is to quantify and understand the connections between loyalty and profits.

How to use measurements as tools to ensure integrity, accountability and decision-making relative to the development and implementation of your customer retention program is one of the most important considerations to retain customers.

Keep your tracking systems relevant and flexible so they function as assets to building and refining your retention strategy.
Finally, close the customer partnership loop with effective communication activities.

Critical measurements and Calculations

1. Know your customers.
   • Determine the true cost of each type of customer, from loyal to transient.
   • Compile a customer baseline and data base.
   • Employees are customers: Measure their service performance. Continue reading ‘Retaining Customers Part IV: Parting Comments’

This is the second of a series of four blogs devoted to the topic of customer retention. To read Part 1, click here.

Employees get excited when management demonstrates a serious commitment to listening to customers and staff’s suggestions for serving them. Building customer loyalty is everyone’s responsibility and everyone’s input is critical. Sharing information is as critical as collecting it: Empowered employees delight in delivering superior personalized service.

Author Peter Drucker points out that, “When people are held responsible, they act responsibly.”

How can you hire terrific, responsible employees?

• Articulate clearly your company values.
• Identify the aspects of a customer service attitude you desire.
• Interview and screen to elicit information about alignment of the person’s philosophical attitudes, principles, values and behaviors with your priorities. Look for employees who like to deal with people.
• Train employees about your corporate philosophy, product knowledge and productivity skills. Continue reading ‘Retaining Customers Part II: The Flight of the “Service Zombies”’