14 NAIDnews Winter 2017
the statistical chances of losing the client to a competitor dropped
significantly. One client relationship and you had a 50% chance of
losing the client in the next two years. Two unique account types
reduced the percentage to 14% at risk. Adding a third sophisticated
service reduced the change of loss to 4%. Growing the connections
between your company and the client will protect you against price
competition or special offers as it becomes more complicated to
move all of the accounts.
Applying these lessons to other owner-operated businesses, we can
see how TrueValue and Ace Hardware have prospered by creative
offerings tuned to their local market, even with Lowe’s and Home
Depot as a force in the marketplace.
“We are a service-based, high-touch, local business,” says John
Venhuizen, CEO of the Oak Brook-based Ace Hardware. “The shop-local trend is one that has served us well.”
TrueValue added rental services and this greatly improved their
market-share and profitability. They use local market position
coupled with a knowledgeable owner providing quality service to
maintain their market-share. They have made the consulting service
and wide-ranging knowledge of their staff a value-add. Each product
and service they add makes the bond stronger between customer
and owner. They have evolved well.
Circling back to the remaining independent offsite storage
professionals, those who have chosen to stay, focus on increasing
their value internally and to their clients. This means expanding
market-share while also improving the quality of the service
The last decade saw offsite storage companies investing in media
vaults and adding backup tapes to their collections. As the Cloud
evolved though, entire data centers and server rooms were built
with no ability to create a backup tape. The market now recognizes
the weakness of the Cloud with hackers, ransomware and internal
espionage attracted to these large Cloud data collections. The
need for centralized archival tape storage with client oversight
became apparent. Those same data centers have back-tracked
to recommend that clients still store backup tapes as part of the
security process. In the last three decades, MediaVaulting and
ServerVaulting have performed flawlessly. Therefore, offsite
vendors were primed to take the next step and now offer storage of
online backup servers as part of their service package. It is a service
that will be expanding.
Combining those security services with a local, independently
owned and managed platform is a natural window of opportunity
for the shredding business. Shredding works best when combined
with other “Security Services” such as Media Vaulting, Server
Vaulting and the next phase is Archival Vaulting of back up media
collections. The presentation of Secure Data Storage along with
other services in the local market offers a business model that will
grow your shredding business along with all of these other services.
At Firelock we are seeing forward thinking records information
management companies recognizing the continued and expanding
opportunities before them - especially as Media Vaulting becomes
fashionable again, and they offer this service to their local market
to everyone’s benefit. We’re also seeing secure destruction service
providers who recognize the need to diversify.
Your world is changing. Will you evolve before it’s too late?
From the Editor:
NAID would love to continue the conversation with your input.
Do you agree with Hugh? How do you see the secure destruction
industry evolving and what are some ideas as business owners
on how to stay ahead of the curve? Share your point of view on
industry issues and continue the conversation in the NAID LinkedIn