Home or away, a service tracker technology is a WINNER.
The founders of a business that tracks customer service feel like they’ve been playing in the Currie Cup. Now they
enter the Super 12.
They have a unique product and their SA rollout has been phenomenal. Now they plan to target international markets
while they still enjoy patent protection.
Peter Everett and Craig Aiken, founders of Proactive Insight Customer Feedback Systems, are Wits Business School
graduates. Since Business Times profiled their customer service tracking business earlier this year, they have, as
they put it, “grabbed the ball and scored.”
Their product is the electronic pad at your elbow in the bank or in the pharmacy that asks you five questions about
what sort of service you are receiving. The feedback is uploaded, with detailed reports being immediately generated
and sent to the service provider. The two men’s solution enables organizations to improve their service
offering.
Proactive now has 3 500 service tracking devices in use across South Africa, and has doubled revenues in each of the
past three years. Having already achieved profitability, the partners are now looking to international markets.
They have restructured their business in preparation for expansion overseas, and have appointed partners to service
their customer base in South Africa.
Everett says: “The best way to describe our current situation is that we have won a few games in the [rugby]
Currie Cup and now want to play in the Super 12.”
“Our domestic operation is bedded down, we have implemented and tested our systems and automated a large number
of processes.”
Aiken adds: “The challenge for us is to do this when we can least afford to. If we wait until we can self-fund
our expansion we may miss the boat.”
“Our approach has been to partner with distributors in territories where we think demand for our services will be
greatest. We already have distributors in the UK, Australia, the Middle East and sub-Saharan Africa, and we have
secured international pilots with McDonald’s, Car phone Warehouse and Bank of Ireland.”
A South African-based company, Customer Feedback Systems International, will handle global distribution. Both Everett
and Aiken are proud of having created solutions in South Africa for service problems that companies in advanced
economies are still looking to solve. “We are committed to South Africa and have resisted the temptation to move
our production and support facilities offshore,” says Everett.
“If you are to win the Super 12 you have to win your home and away games,” he says, adding that South Africa
has several “home-ground” advantages. These include a great team and technical support, as well as research and
development capabilities at a fraction of the overseas cost.
“We may have underestimated how hard it is to set up international capabilities, but we have also underestimated
the demand for our products and services. The demand for real-time customer feedback is huge,” Everett says.
The Wits Business School’s Sean Temlett examines Proactive’s strategy below. There are, he says, four salient lessons:
Work with international distributors who can provide “smart” funding and share risks.
“Setting up and international distribution network is complex and expensive,” Temlett says. “Few companies can
afford to spread their resources around the globe. You lose focus and your local knowledge is limited, so it’s better
to focus on finding and supporting people who are better placed to do it.”
Play to your strengths.
“Peter and Craig remain pioneers, helping the distributors penetrate selected markets. They are very good at
starting new businesses.”
Win your home games.
“Proactive remains committed to its home base and is actively looking to develop a South African team that will
support their international initiatives.”
Base pricing on a strong rand.
“The team is setting up and pricing themselves to international distributors in a climate of rand strength.
This requires a genuine value proposition that is sustainable, rather than betting against the rand.”
Temlett also has some thoughts on internationalizing a business:
- Make friends with an experienced lawyer.
“Patents, distribution agreements and international jurisdiction create legal risks.”
- Speed.
“If you are in control you are going too slowly.”
- Identify the right people for the right territories.
"Choosing which territories to penetrate and when to penetrate is vital.”
- Support your distributors.
“Supporting a distributor who has put a lot at risk is different to servicing an end client.”
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