Maximizing Customer Retention: Strategies for Loyalty, Long-Term Relationships

What is Customer Retention?

Customer retention measures how well a business maintains its customer base over a specific period. It’s an important metric because it is often more cost-effective to retain existing customers than acquire new ones.

When customers consistently choose your brand over competitors, they bring repeat business, provide valuable feedback and often become brand advocates.

Achieving high customer retention isn’t easy, though. It requires careful strategizing, meticulous execution and continuous improvement. This is where third-party resources can make a significant difference. Partnering with experts or leveraging cutting-edge tools can save you valuable time and resources.

Whether it’s designing an attractive loyalty program, implementing effective CRM systems or refining your customer experience, industry specific service providers have experience and expertise you need.

Let’s dive deeper into customer retention and how it can help your business.

I. Understanding The Importance Of Customer Retention

Building customer loyalty is a critical element of customer retention. The value it brings to business growth is immense as loyal customers often translate to repeat business and referrals. There are several key factors influencing customer loyalty, including product quality, customer service and overall customer experience.

Effective customer retention strategies play a pivotal role in fostering long-term relationships. They involve an array of initiatives ranging from loyalty programs to personalized customer engagements. Examining successful case studies can provide a insights for companies looking to improve retention.

ALSO SEE: Voice of Customer Process: Methodologies for Better Service

II. Implementing Customer Loyalty Programs

Customer loyalty programs are designed to incentivize repeat business. There are different types of loyalty programs, each with its own benefits. For example, a points system might encourage frequent purchases, while a tiered system could inspire larger transactions.

When designing a customer loyalty program, several key considerations come into play. These include understanding your customers’ preferences, setting clear and achievable rewards and ensuring the overall process is straightforward and accessible. Implementing and managing these programs effectively can have a significant impact on customer retention.

III. Enhancing The Customer Experience

An outstanding customer experience can turn one-time customers into repeat clients and casual buyers into brand advocates. Employing strategies to consistently deliver exceptional experiences can significantly improve customer loyalty and retention.

Using CRM systems to manage customer relationships can have numerous benefits. They can help track customer interactions, provide personalized service and identify trends in customer behavior. Similarly, leveraging customer lifecycle management can enhance customer retention by delivering targeted engagements at each stage of the customer’s journey.

IV. Loyalty Management and Measurement

Effective management of customer loyalty initiatives is crucial to their success. This includes not only the implementation of the programs but also ongoing performance monitoring. It’s crucial to track key performance indicators (KPIs) like repeat purchase rate, customer lifetime value and churn rate. Interpreting and acting on these metrics, however, may require a certain level of expertise that specialized third-party services can provide.

Successful customer retention strategies are not set in stone, but are rather dynamic and adaptive. Continual refinement based on customer feedback, market trends and business goals is paramount to their sustained effectiveness. The process of monitoring and adjusting your customer retention efforts can be intricate and time-consuming. Expert third-party service providers, well-versed in data analytics and strategy adaptation, can be an essential asset in this journey.

READ MORE: What is the Voice of Customer Survey?


The journey of customer retention, from understanding its importance to implementing effective strategies, is an intricate, ongoing process. Customer loyalty programs, enhanced customer experiences, CRM and lifecycle management are all tools in your arsenal to foster loyalty and long-term relationships.

The value of maximizing customer retention is clear, but the path to achieving it can be riddled with complexity. BluWave is here to bridge the gap.

Our research and operations team is here to connect you with industry-specific, expertly vetted service providers to help you navigate the complexities of customer retention.

Voice of Customer Process: Methodologies for Better Service

Customers shape the success of your business. Their feedback, preferences and expectations guide your strategies, refine your services and bolster your bottom line.

Enter the world of the Voice of Customer (VoC). This indispensable tool empowers you to tap into what your customers desire and harness their insights for growth.

Ready to get started on your VoC journey?

VoC is a research method that captures customers’ expectations, preferences and aversions. By leveraging this approach, you can cultivate a customer-centric culture that not only boosts satisfaction but also propels your business to new heights.

READ MORE: Voice of Customer: Definition, Importance

VoC (Voice of Customer) Methodologies

VoC methodologies are a collection of techniques to gather valuable customer insights. They pinpoint customer needs, expose pain points and reveal opportunities to improve.

Customer Interviews and Surveys

Nothing beats a conversation when it comes to understanding customers. Interviews unveil the “why” behind behaviors, offering rich qualitative data. On the other hand, surveys, whether online, email or SMS, yield quantitative data, transforming feedback into measurable insights.

By pairing these methodologies, you gain a holistic understanding of preferences and experiences. But managing and interpreting both qualitative and quantitative data can be complex. Collaborating with expert third-party services can alleviate this burden, allowing you to focus on leveraging the insights.

Social Media

Customers often voice their opinions on social networks like Facebook, Twitter, Reddit, Instagram, TikTok and more. Monitoring these platforms uncovers real-time feedback and sentiments. Social listening tools identify trends, track brand mentions and facilitate customer engagement. This goldmine of unfiltered opinions can equip you to refine your products and services.

Doing this on a regular basis, though, can become unwieldy. Experienced third parties who do this on a regular basis can save you time and help you get capture core customer sentiments.

Focus Groups

A small group of customers, a structured discussion and a skilled moderator – that’s a focus group in a nutshell. It’s enables customers to freely express their thoughts.

This format often reveals hidden perceptions and enables you to understand how group dynamics influence feedback. Nevertheless, coordinating and moderating focus groups can be time-consuming and requires expertise for accurate interpretation. Here, experienced third-party firms can step in, streamlining the process and ensuring valuable takeaways.

Ready to dive deeper into customer insights?

Customer Support Data

When customers reach out for support, they reveal their needs and frustrations. Scrutinizing inquiries, complaints and feedback from support channels can reveal recurring issues and areas for improvement.

Website Behavior Analysis

How do customers interact with your website? Analytics tools – like Google Analytics 4 – offer the answer. By tracking page views, clicks and navigation paths, you gain behavioral insights.

Heatmaps, user recordings and conversion funnels also unveil usability issues and help streamline the customer journey. But analyzing such granular data and deriving meaningful insights isn’t everyone’s cup of tea. It demands deep technical expertise and significant time investment. A third-party solution with a knack for analytics can be the key to unlocking these valuable insights, sparing you from getting lost in the complexity of data.

Online Reviews

Customer feedback thrives on online review platforms. By monitoring them, you can understand customer sentiments and address concerns. Engaging with customers on review platforms also shows your commitment to their satisfaction.

Feedback Forms

Feedback forms on your website or app offer a structured way to gather feedback. Well-designed, user-friendly forms capture specific information, enabling customers to express their thoughts in detail.

Net Promoter Score® (NPS®)

How likely are your customers to recommend your business? The Net Promoter Score® (NPS®) offers a clear answer. NPS® surveys categorize customers into promoters, passives and detractors. Analyzing this data uncovers the reasons behind customer ratings and helps craft strategies to boost loyalty.

Ready to unlock these VoC insights?

VoC (Voice of Customer) Processes

Data Collection and Analysis

Gathering data is only the first step. VoC methodologies call for structuring and organizing data to facilitate effective analysis. Tools and techniques for data analysis spotlight key insights and patterns, making sense of what you collect.

Insight Generation

Converting data into actionable insights is the heart of VoC. Analysis uncovers customer preferences, pain points and emerging trends. Triangulating from different methodologies offers a comprehensive understanding of your customers.

Action Planning and Implementation

Insights are the foundation for action. Prioritize improvements based on both customer input and business goals. For instance, if feedback consistently points to slow website load times, prioritize website optimization. Effective implementation requires cross-functional collaboration to effect change.

Monitoring and Continuous Improvement

The Voice of Customer process is not static, but rather a dynamic, ongoing endeavor. It evolves in sync with market trends and customer needs. Establishing continuous feedback loops, gauging progress and refining strategies based on the evolving customer landscape is essential.


This is where BluWave steps in, bridging the gap between understanding your customers and implementing that understanding into actionable strategies. Our research and operations team works diligently to connect you with industry-specific, vetted service providers who specialize in Voice of Customer methodologies. They assist you in maintaining the momentum of your VoC efforts, from the initial data collection to the final stages of strategy adaptation.

Through our extensive network, we’ve got you covered whether you are a private equity firm, a portfolio company, or a private or public company. Our exact-fit resources are at your disposal to ensure you remain customer-centric, adaptable and progressive in the ever-changing market landscape. We understand that your goal isn’t just to listen to your customers but to hear them, comprehend them and ultimately grow with them.

EDI Specialist: Get Help with Technical Implementation

What is an EDI Specialist?

An EDI specialist is a technical expert who designs, develops, implements and manages EDI systems and processes. EDI systems facilitate the efficient and secure exchange of data between organizations or within an organization.

Besides monitoring, troubleshooting, and enhancing EDI transactions and applications, an EDI specialist should possess excellent communication, analytical and problem-solving skills, and stay current with technology trends.

EDI specialists are instrumental in helping businesses eliminate record errors, expedite transactions and reduce data processing time. They implement and install operating systems tailored for data interchange, boosting efficiency across all functional areas. As these systems utilize digitally acquired records, error reduction and effortless retrieval become possible.

With the increasing need for businesses to exchange data electronically, the demand for EDI specialists is on the rise. As more companies adopt electronic data interchange, this trend is expected to continue.

Let’s dive into more details about this important role, and discuss how you can get an expertly matched EDI specialist for your specific situation fast.

I. The Role of an EDI Specialist

An EDI specialist’s responsibilities extend beyond setting up and configuring EDI connections. They also develop and test EDI messages, troubleshoot EDI problems and provide EDI training to employees. An EDI specialist’s primary duty is to design, develop and implement all EDI-related processes within a company or organization.

Their expertise in data exchange enables them to develop and refine methods for securely receiving and transferring data to and from various trading partners, ultimately optimizing supply chain operations.

READ MORE: What is Technical Debt in Due Diligence?

II. The Skills and Qualifications of an EDI Specialist

An EDI specialist should possess a comprehensive understanding of IT and various business units, working knowledge of EDI translation software packages, and a solid grasp of EDI standards and practices such as EDIFACT and XML. Additionally, they need to have a general understanding of networking protocols and web architecture.

Soft skills like strong communication and organizational talent are crucial for an EDI specialist. They must have an independent, structured, and responsible way of working to collaborate effectively with different teams and stakeholders and troubleshoot issues during EDI system implementation.

III. The Salary of an EDI Specialist

In the U.S., EDI specialists typically earn between $50,000 and $100,000 per year. Factors influencing their salaries include experience level, education, location, and industry.

IV. Working with an EDI Specialist

Collaborating with an EDI specialist can help you streamline business processes and enhance supply chain management. They can assist in automating business processes, reducing manual data entry errors, and cutting costs by eliminating paper-based transactions. This results in a more efficient and cost-effective operation.

Continue reading “EDI Specialist: Get Help with Technical Implementation”

CFO Executive Search Firms: Financial Executive Specialists

The Importance of Hiring a Strong CFO

The role of a CFO is similar to a treasurer or controller because they are responsible for managing the finance and accounting divisions and for ensuring that the company’s financial reports are accurate and completed in a timely manner. CFOs also manage the company’s financial planning and analysis, risk management and overall financial strategy.

Hiring a strong CFO essential for an organization to thrive. Some of the benefits of include access to years of experience and industry expertise, the ability to predict and forecast instead of reacting, improved processes and internal systems, better data and accurate reporting.

It’s no wonder that such an important role can often be so difficult (and expensive) to fill.

That’s why it’s pays to work with a tailor-made recruiting firm that’s familiar with your specific industry and situation. The Business Builders’ Network is full of exactly these kind of organizations.

READ MORE: How To Analyze Sales Data: Tools, Examples, KPIs

In this article, we will discuss the qualities to look for in a CFO, how to hire the right one for your company, the role of CFO executive search firms in the hiring process and the average CFO salary.

Interim chief financial officer

I. What to Look for in a CFO

Skills and Experience

A strong background in finance and accounting is crucial for a CFO. Their deep understanding of financial concepts and ability to analyze financial data will help them manage the finance and accounting divisions effectively. CFOs should also have experience in leading teams and collaborating with other executives, as they are responsible for ensuring the accuracy and timeliness of the company’s financial reports, financial planning and analysis, risk management, and financial strategy.

Leadership and Communication Skills

The ability to lead teams and communicate effectively with other executives is essential for a CFO. Possessing strong leadership and communication skills enables them to convey financial information to non-financial stakeholders. Since they are responsible for managing the finance and accounting divisions, CFOs play a critical role in ensuring the company’s financial reports are accurate, completed in a timely manner, and effectively support financial planning, analysis, risk management, and strategy.

Financial Acumen

In addition to having a deep understanding of financial concepts, a CFO should demonstrate strong financial acumen. They need to be able to analyze financial data and communicate their findings to non-financial stakeholders. As the person responsible for managing the finance and accounting divisions, a CFO ensures the accuracy and timeliness of the company’s financial reports while overseeing financial planning and analysis, risk management, and financial strategy.

Strategic Thinking Skills

The ability to think strategically and develop long-term financial plans is another essential quality for a CFO. A strong strategic thinker can communicate financial information to non-financial stakeholders, which is vital for their role in managing the finance and accounting divisions. CFOs are responsible for ensuring the company’s financial reports are accurate and completed in a timely manner, and they play a significant role in financial planning, analysis, risk management, and financial strategy.

Industry Knowledge

Having specific industry knowledge allows a CFO to better understand the context in which the company operates. This knowledge enables them to communicate financial information to non-financial stakeholders effectively. As the manager of the finance and accounting divisions, a CFO must ensure the company’s financial reports are accurate and completed in a timely manner while overseeing financial planning and analysis, risk management, and financial strategy.

Cultural Fit

It’s essential for a CFO to be a good cultural fit within the company. This means they should align with the company’s values, mission, and work environment. A CFO who shares the organization’s vision and can adapt to its culture will foster a positive and collaborative atmosphere, making it easier for them to work effectively with other team members and stakeholders. In addition, a strong cultural fit ensures that the CFO can effectively contribute to the company’s financial planning, analysis, risk management, and financial strategy while maintaining a harmonious working environment.

II. How to Hire a CFO

Create a Job Description

Creating a job description is the first step in hiring a CFO. A job description is a document that outlines the responsibilities and qualifications for the position. It should include information about the company, the position, and the qualifications required for the position. The job description should also include information about the salary range and benefits package.

The job description is important because it helps you attract the right candidates. It also helps you screen candidates to ensure that they have the necessary skills and experience for the position.

Identify Your Ideal Candidate

This step includes determining what skills and experience are required for the position. You should also consider the company’s culture and values when identifying your ideal candidate.

When identifying your ideal candidate, you should consider the following:

  • Skills and experience: You should identify the skills and experience required for the position. This includes technical skills as well as soft skills such as communication and leadership.
  • Company culture: You should consider the company’s culture and values when identifying your ideal candidate. This will help ensure that the candidate is a good fit for the company.

Conduct Interviews

Once you have identified your ideal candidate, you should conduct interviews to determine if they are a good fit for the position.

During the interview process, you should ask questions that will help you determine if the candidate has the necessary skills and experience for the position. You should also ask questions that will help you determine if the candidate is a good fit for the company’s culture and values.

Conduct Reference Checks

After conducting interviews, you should conduct reference checks to verify the candidate’s qualifications and experience.

During the reference check process, you should contact the candidate’s previous employers and ask questions about their performance and qualifications. This will help you determine if the candidate is a good fit for the position.

Make an Offer

Once you have completed all of the steps above, you can make an offer to your chosen candidate.

When making an offer, you should consider the candidate’s salary requirements and negotiate a salary that is fair and competitive. You should also consider other benefits such as health insurance, retirement plans, and vacation time.

III. CFO Executive Search Firms

A CFO executive search firm is a company that specializes in finding and recruiting top-level financial executives for businesses. The process of hiring a CFO executive search firm can be complicated and costly. However, an expertly matched executive recruiting firm can help with this process.

The staff at an executive search firm already has thorough knowledge of the industry and may already know candidates who are qualified for your position. Once you give them a detailed description of what you need in a CFO, they can search their community and find the best candidate. Engage with recruiters and executive search firms to hire the CFO based on your predetermined requirements.

ALSO SEE: Private Equity Recruiting: PortCo Resources

The benefits of hiring a CFO executive search firm include saving time and stress. The challenges of hiring a CFO executive search firm include ensuring that you are working with the correct entity and that your preferred search firm must demonstrate expertise.

IV. CFO Salary

The average yearly salary of a chief financial officer (CFO) can vary based on a number of factors, but the median compensation for a CFO in the U.S. as of May 2021 was nearly $400,000 per year.

The primary factors that impact the median salary of a CFO include geographic location, and the experience and personal qualifications of the person. Base salary and bonuses make up roughly 80% of the total compensation a CFO should receive within a given year. The other areas of compensation are bonuses and benefits, as well as perks.

The primary factors that impact the median salary of a CFO include geographic location, the size and complexity of the organization and the candidate’s experience and qualifications. Base salary and bonuses make up roughly 80 percent of the total compensation a CFO should receive within a given year. The other areas of compensation are bonuses and benefits, as well as perks.

Continue reading “CFO Executive Search Firms: Financial Executive Specialists”

Data Consolidation: Benefits, Challenges, Process

What is Data Consolidation?

Data consolidation is the process of gathering data from various sources and storing it in a centralized location. This can be done manually or using data integration tools.

The purpose of data consolidation is to improve data quality, increase data security and facilitate data analysis. In this article, we will discuss the benefits and challenges of data consolidation, the process involved and the tools and software available to help.

We’ll also cover best practices and emphasize the importance of having an industry-specific service provider to assist you. This complicated process often goes much smoother when you have expert assistance for your specific industry.

This is where BluWave comes in, with their ability to connect you with just the right resource for your unique situation.

I. Benefits of Data Consolidation

One of the main benefits of data consolidation is improved decision-making. By providing a more complete and accurate view of the data, businesses can make better decisions based on data-driven insights. Data consolidation can also increase efficiency by eliminating the need to manually collect and manage data from multiple sources. Additionally, it can reduce costs by eliminating the need to maintain multiple data storage systems.

II. Challenges of Data Consolidation

Data consolidation presents challenges. One of the biggest is ensuring data quality. Data consolidation can only be successful if the data being consolidated is accurate, clean, and reliable. Additionally, data security is a concern, as consolidating data can increase the risk of data breaches. It is important to implement security measures to protect data during and after consolidation. Finally, data consolidation can be a costly process, especially if it is done manually. It is important to carefully consider the costs and benefits of data consolidation before making a decision.

III. How to Consolidate Data: The Process

The process can be broken down into the following steps:

  1. Identifying the data sources: The first step in data consolidation is to identify all of the data sources that need to be consolidated. This can include data from internal systems, external sources, and even social media.
  2. Transforming the data: Once the data sources have been identified, the next step is to transform the data. This may involve cleaning up the data, converting it to a common format, or filling in missing data.
  3. Loading the data into a central repository: Now it’s time to load the data into a central repository. This can be a data warehouse, a data mart, or even a spreadsheet.
  4. Securing the data: It’s also important to secure the data. This may involve implementing security measures such as encryption, access controls, and auditing.
  5. Maintaining the data: The final step in data consolidation is to maintain the data. This means updating the data, correcting errors, and purging old data.

Data consolidation can be a complex process, but it can be a valuable tool. By consolidating data, businesses can improve quality, increase security, and make it easier to analyze.

IV. Data Consolidation Tools and Software

Data integration tools are used to extract data from disparate sources and load it into a central repository. These tools can help improve data quality by cleaning up the data, converting it to a common format, and filling in missing data.

Data warehouse tools are used to store and manage large amounts of data. These tools can help businesses analyze data and make better decisions.

READ MORE: Data Warehouse Types: Choose the Right One

Data mart tools are used to store and manage a subset of data from a data warehouse. These tools can be used to improve data access and performance.

Data virtualization tools provide a single view of data from multiple sources. These tools can help businesses make better decisions by providing them with a more complete and accurate view of their data.

The choice of data consolidation tool or software will depend on the specific needs of the business. Factors to consider include the size of the data, the complexity of the data, and the budget.

V. Data Consolidation Best Practices

  • Plan carefully. Before starting data consolidation, it’s important to have a plan. This should include:
    • The goals of data consolidation
    • The data sources
    • The tools and technologies that will be used
    • The budget for data consolidation
    • The timeline for data consolidation
  • Use the right tools. There are a variety of tools and technologies available. The right ones will depend on the size and complexity of your data, as well as your budget.
  • Get buy-in from stakeholders. Data consolidation is a major project that will impact many people in your organization. It’s important to get buy-in from stakeholders early on in the process. This will help to ensure that everyone is on board with the goals of data consolidation and that the project is successful.
  • Test thoroughly. Once you have a plan in place and you’ve chosen the right tools, it’s important to test the data consolidation process thoroughly. This will help to identify any potential problems and ensure that the data is accurate and complete.
  • Monitor and maintain the data. Finally, it’s important to monitor and maintain the data. This will help ensure that the data is accurate and up-to-date. It’s also important to have a plan for how to handle changes to the data sources.
Continue reading “Data Consolidation: Benefits, Challenges, Process”

Sales Pipeline Funnel: Methodology, Process for Businesses

A well-structured and efficient sales process is key to bringing in revenue. One of the most effective tools for doing so is the sales process funnel, also known as the sales pipeline methodology.

What is a Sales Process Funnel?

A sales process funnel is a visual representation of the steps a prospect takes on their journey from initial contact to closing a deal.

CONNECT NOW: Sales Process Funnel Experts on Standby

The funnel is divided into stages that represent different levels of commitment from the prospect, with each stage requiring a higher level of engagement and investment from the sales rep.

Let’s take a deeper look at the benefits as well as the process for setting up a sales process funnel.

Table of Contents

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Effective B2B Debt Collection Strategies for Improved Cash Flow

Efficient B2B debt collection practices are essential for maintaining a healthy cash flow and ensuring the growth of a business. In today’s competitive market, many organizations offer generous terms on accounts payable to win over customers.

This approach, however, may not always be sustainable, especially given changing trends and future concerns.

CONNECT NOW: Financial Account Advisory Firms That Know Your Industry

Let’s talk about the importance of B2B debt collection strategies and how partnering with a specialized consultant can lead to improved cash flow and business growth.

Continue reading “Effective B2B Debt Collection Strategies for Improved Cash Flow”

Government Contract Outsourcing: Get Proposal Help

Government contracts are highly competitive and can be difficult to secure without the right expertise. Outsourcing support from legal experts can give companies a strategic advantage, increasing chances of winning lucrative projects.

External consultants offer valuable experience in managing large teams and responding to complex RFPs, working with diverse teams and agencies and developing a winning strategy.

EXPERT RESOURCES: Access The Invite-Only Network of Legal Experts for PE Firms and Businesses

In addition, experienced legal services can help identify untapped opportunities or ideas, handle increased workload during peak proposal periods and offer guidance for high-value contracts.

Let’s take a closer look at what goes into outsourcing contracts as well as the benefits of doing so.

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Temporary CFO Assignments: Hire the Right Interim

Identifying an interim chief financial officer can be tedious, if not expensive. Companies that don’t know what they’re looking for when they begin their search could spend large sums of money on headhunters and recruiting firms.

They can also lose valuable time interviewing unqualified candidates.

When hiring an interim CFO instead of a permanent replacement, key considerations include timeline, need-specific criteria and keeping an eye out for red flags.

As a trusted resource for hundreds of private equity firms and thousands of portfolio and independent companies, BluWave has exclusive insight into what makes a home-run selection vs. someone who will send you back to the drawing board.

Continue reading “Temporary CFO Assignments: Hire the Right Interim”

PEI Operating Partners Forum – New York 2022 Event Recap

On October 19th and 20th, 2022, our team had the opportunity to attend and sponsor the PEI Operating Partners Forum – New York 2022. It was PEI’s largest event to date with over 500 PE ops professionals in attendance, a testament to the growing ops function in private equity.

At the conference, our founder & CEO, Sean Mooney, hosted a panel titled, “Unlocking the Due Diligence Imperative to Rapidly Achieve the Value Creation Plan”. The panelists – Cici Zheng of ParkerGale Capital, Marc Jourlait of The Riverside Company, and Kalyan Mukherjee of Apollo Global Management – all shared insightful thoughts on this topic and we have captured some our key takeaways below:

Leveraging Diligence Streams to Inform Value Creation

  • Overall, value creation plans are being created and put into place earlier in the process than has been done historically.
    • Benefits include building trust with the management teams and having the time and information upfront to formulate a more fully baked value creation plan.
  • Ops teams find it critical to work with specialized groups for commercial due diligence that already know and understand the market.
  • Areas assessed upfront in diligence to help ops teams better understand risk include human capital, technology, operations, and ESG.

Working with Deal Teams & Managing the Diligence Chaos

  • Ops teams have discovered that working with deal teams from day 1 helps avoid any post-close surprises.
  • Early work with the deal team helps the ops teams better understand what the deal team is underwriting for, allowing the ops team to better prioritize and position value creation plans.
  • Many firms are leveraging technology to manage the many diligence processes that are happening at any given time.

We greatly enjoyed learning from these thought leaders and connecting with both familiar as well as new faces at the PEI Operating Partners Forum – New York 2022. You can learn about specific ways we equip PE operating professionals with the exact-fit, specialized third parties they need here. If you have an immediate need we can support, contact us here and we will immediately get started.

ACG M&A East 2022 Event Recap

Our team had the chance to attend and sponsor ACG M&A East 2022 in Philadelphia on October 17th and 18th. At the conference, our founder & CEO, Sean Mooney, had the opportunity to be one of seven speakers to speak on the topic of “Trends and Best Practices in Value Creation”.

In Sean’s presentation, he shared the most recent data in our Value Creation Index and the functional trends we have been seeing within that- specifically within HR, technology, and sales & marketing. The main points he shared from our data were:

  • PE firms and their portcos are focusing on data & analytics to help them become more agile and change with the times.
  • Organizations that traditionally had outside sales are now transitioning to inside sales due to the digital boom.
  • Marketing functions are becoming more crucial than ever.
  • PE firms are bringing in wartime generals in place of peacetime ministers for the new now.

In addition to Sean’s talk, we were able to listen to insights from Dave Helgerson of Hamilton Lane, Dan Kessler of Energage, Justin Kulla of TZP Group, Keith Scandone of O3, Christopher Simmons of LLR Partners, and Laura Queen of 29Bison. The main topics of their discussions were ESG, DEI, talent & culture, and digitization & customer experience. We have shared our key takeaways below:

ESG

  • The ESG mandate from LPs is growing.
  • The 3 key factors to ESG are framework, investment process, and organizational guide.
  • Implementing ESG can be a competitive advantage that allows you to unlock opportunities that no one else sees.

DEI

  • DEI is an ongoing journey, not a destination.
  • DEI is all about problem-solving.

Talent & culture

  • Capturing the voices of employees is soon to be the biggest trend in diligence – unhappy employees without a voice can become the biggest issue post-close.
  • Implementing frameworks to assess and drive culture initiatives is critical.

Digitization & customer experience

  • Customer experience is a journey, not a funnel.
  • Putting your customers at the center of your business model is a constant that will never change.

We greatly enjoyed learning from these thought leaders and connecting with both familiar as well as new faces at ACG M&A East 2022. If you are in need of third-party resources for your ESG, DEI, talent, or digitization needs, give us a shout and we will be happy to quickly hop-to.

Hunt Scanlon 2022: Human Capital in Private Equity

Last month, our team had the chance to attend Hunt Scanlon’s private equity recruiting conference in New York. At the conference, our founder & CEO, Sean Mooney, had the opportunity to sit on the panel, “The Art of Building Private Equity Leadership Teams,” alongside  Jimmy Holloran of ParkerGale Capital, Amanda Roberts of L Catterton, Michelle Nasir of Arsenal Capital Partners, Kit Cooper of Signal Partners, and Adam Zellner of Business Talent Group. There were many value-filled panels throughout the day, allowing for hundreds of PE leaders to discuss and share their thoughts with one another on the current state of strategy, culture, and talent.

The pandemic has both accentuated and accelerated PE’s greatest challenges, and human capital is challenge #1. PE human capital leaders have quickly become the busiest people in the industry, demonstrated by our BluWave Activity Index which shows that 42% of PE projects in Q1 ‘22 were related to human capital, which was up from 36% in the previous quarter. Our key takeaways from the conference below share how talent leaders are staying busy and how they are creating efficiencies to drive more value while they are in such high demand:

1. The Need for a Data-Driven Approach to Talent

  • Business leaders are increasingly recognizing the importance and value of quickly getting the right talent in place across all organizations. According to McKinsey, organizations that get talent right in the first year see 2.5x ROI on their initial investment. Getting talent right is not just a necessity for the C-suite, 90% of critical talent needs in a company lie below the C-suite.
  • With so much at stake if you get talent wrong, many PE firms and proactive businesses are taking a data-driven approach to human capital in order to have best practices to track against.

2. Talent-to-Value

  • Not only does getting the right talent in place quickly improve ROI, it is also crucial to enable companies to deliver on their value creation plans. One way firms are ensuring they get the talent they need is by developing great relationships with their recruiting firms. This allows recruiters to gain a sense for what “talent for that specific firm” looks like.
  • While human capital is critical to value creation, everyone is fishing in the same pond for talent, creating difficulties in getting the talent you need. One solution to this is to take a holistic approach to talent identification & recruitment in which you identify the key targeted areas for value creation in a portfolio company and then systematically focus and prioritize solving the talent that will have an impact on the biggest value creation opportunities. This has been called the “Talent to Value” approach.

3. Growing Emphasis on Culture and DE&I

  • There is a growing emphasis on culture and DE&I in private equity
  • On the DE&I side, each firm needs to take a personalized approach that works for them. A good starting point is to take an initial framework and gather data internally to make sure everyone is included and heard. Then, needs should be measured on a quarterly basis to see how you are improving over time.
  • On the culture side, a focus on internal company culture will help with recruitment & retention efforts, which ultimately, will help you advance your value creation plans. One way to do this is to assess what currently sets your culture apart and then build on it from there. Additionally, interviews should be assessing if candidates have cultural alignment, as much as they are assessing if they have skill and will.

Balancing the art and science of connecting talent to value, amidst a tight market will be the key driver to success as we head into the second half of 2022. If we can be of any assistance, please let us know.

Additionally, you may be interested in checking out some of our human capital specific resources, which can be found here: