RELO Roundtable…a gathering place

For folks who have stuff to move and the professionals who can help them

Customers like web-generated estimates! Why don’t movers?

By • Oct 19th, 2010 • Category: Web Generated Estimates

by Don Kachur

MovesOnline (1) Customers like web generated estimates! Why dont movers?While the use of consumer web-generated inventories have significant advantages for the moving industry and the consumer, their adoption requires a monumental shift in thinking for the traditional mover. Surprisingly, no such shift is required by the consumer.  Our customers are already deeply involved in web services and self service models, and these expectations are already a large part of their everyday life.
 
Self-service is the mantra of industries that are embracing the web to streamline their business processes.  Airlines now have self check-in kiosks and travel agents are suddenly a thing of the past for booking flights, hotels and rental cars. Standing in bank lines to transact business and pay bills has been replaced by mouse clicks at your desk. There is a host of other examples, some of which are incredibly useful and some of which are downright frustrating. But there is no doubt that in today’s web 2.0 world, anything that a consumer can do for themselves, they will do, provided they are given the necessary tools to do it easily, accurately and without frustration.
 
Why has this new self-service revolution taken so long to reach the moving industry? Where are the web tools that shippers can use to make our job easier and more efficient? Do we always have to send surveyors to the customer’s home to do something as simple as creating an inventory of household furniture? Or, if we are estimating over the phone, why is it necessary to bore the consumer to distraction with a monotonous repetition of every salesperson’s telephone “walk-through”. Surely, if consumers can book their own flights around the world without the help of a professional, they can make a list of furniture in their own home!
 
Of course most customers can create their own inventories. Not only that – they prefer it – as long as they are given the proper tools to work with. And moving companies, who generally allocate 5% of hauling revenue to estimating costs, could realize significant savings if they could find a way to allow customers to do it themselves. Why then, has the moving industry taken so long to capitalize on the self-service phenomenon? The reason, I believe lies with certain fundamental difficulties with web self-service estimating. These are:

1. User friendliness of the web interface
 
2. Motivating consumer accuracy
 
3. Dispute resolution

In this whitepaper I will address these difficulties and explain how a customer generated inventory overcomes each of these problems, finally making it possible for the moving industry to reap the benefits of the web 2.0 world.
 
 
How a customer generated inventory solves the fundamental problems of web inventory programs

1. User Friendly Web Interface
 

Nothing is more fundamental to the success of any consumer website than the user interface. If the user finds the web process confusing or time-consuming, the system has failed before it is out of the starting gate. This is especially problematic for a detailed household inventory. The limited success of all existing systems is the result of the sacrifice of accuracy for ease of use, making the process futile, or an attempt to achieve functional accuracy, which has resulted in a process that completely frustrates the consumer.
 
There is no shortage of compromises currently on the web. To achieve user friendliness, several web generated inventory programs have used quick calculations using the number of rooms etc. as a factor. These methods are far too general to be used to produce even a ballpark price and manage only to generate a lead for a moving company, who must then do a traditional estimate anyway. The customer has only wasted his time by completing these inventory forms.

More detailed, excel type, or “hunt and peck” cube sheets have also been tried, but are far too cumbersome and awkward for the average customer. Most require both mouse and keyboard entry and are far too tedious. They are often started but rarely completed.
 
Because of these hurdles, most of the largest and newest relocation portals have given up entirely on the idea of an online inventory generator-at least until a practical method is invented.

MovesOnline (2)(1) Customers like web generated estimates! Why dont movers?The customer generated Icon-Inventory system finally solves the problem of user friendliness. Navigating the icons room by room is easy, quick and almost fun. The colorful front end is visually appealing to the consumer and retains their interest. Existing alpha systems use some furniture item descriptions which may be unfamiliar to the consumer. (Drop-front, hutch, étagère, etc.)

MovesOnline is a web inventory generator designed exclusively for movers.   It combines familiar household icons with item names removing this confusion and improving accuracy. All in all, the user interface of MovesOnline has increased the accuracy and completion rate of web inventories exponentially. It’s easy, fast, accurate and almost everything happens with the click of a mouse. And, customers love it! Just have a look at the site feedback we get from MovesOnline customers.

“Your pages for describing the house contents is the best and simplest that I have seen. Very good.”

"Your website is great.”

“…I LOVE IT !…”

“Looks awesome! Very Helpful"

“Great website, easy to use”

“Very easy to navigate. Good job”

more

As you can see, MovesOnline goes beyond friendly, it’s almost lovable. Problem one, solved.

2. Motivating consumer accuracy

We are often asked, “what about the customer that leaves out items in hopes of getting a lower price or just plain does not take enough care to ensure everything is included on the inventory”. Good question. Surprisingly, this has not been a problem. But after considering the following, it may not be surprising at all.
 
Firstly, because the customer creates their own inventory and submits this in writing to the mover, there is no room for a “he said-she said” about what was to be included in the price. No arguments about what was to be given to Auntie Jane or what was going to be left behind. No “but I showed her everything” comments about extra items being moved.
 
This reversal of responsibility from the surveyor to the customer requires a flip flop in thinking for traditional movers and the government entities that regulate them. Contrary to everything we know about traditional estimates, the onus is now on the customer for accuracy. In effect, the mover is now contracting to move only the items on the list – not contracting to move a “household” as described over the phone or to a surveyor.

This is quite apparent to the customer, even more apparent than it is to the mover, who has been imbued with this responsibility his entire career. To the consumer, this is a given. It is clear to them that the moving quote will be based on moving only the furniture they submit.

To leave no room for inaccuracy, the consumer is informed well in advance of the problems and additional costs that can arise from an incomplete inventory, including:

  • Items which are not on the inventory are not insured for loss or damage. (This item alone sends consumers scrambling back to review and update their online estimate)
  • Underestimating may result in the mover arriving with not enough room on his truck for your goods.
  • And of course, extra charges will apply if there is more to move than indicated.

 
Finally-real world results show that our customer estimates are generally  within the 10% accuracy allowance given to in-house estimators and consistently more accurate than telephone estimates. (ref. 2009 survey J.D. Power and Associates)

3. Dispute Avoidance
 
Because the consumer completes their own inventory, there is no room for misunderstandings in communication between the consumer and the salesperson. Items included in the quote are clear and in writing. The consumer has the opportunity to review and adjust their inventory online anytime before the move date to add missed items or items that were meant to be sold but are now going on the van. This places the responsibility for an accurate inventory and price squarely with the consumer and removes the most common cause of consumer disputes. In the event a dispute cannot be avoided, it can be dealt using facts instead of accusations.
 
Summary
 
While the use of a consumer web generated inventories have significant advantages for both the moving industry and the consumer, its adoption requires a monumental shift in thinking for the traditional mover. No such shift in thinking is required by the consumer. They are already deeply involved in web services and self service models, and these expectations are already part of their consumer life. 

For further information, contact: Don@MovesOnline.com   Or visit http://www.movesonline.com/index.html Click here to arrange a free product trial.


Don Kachur is President of the HighStar Group based in Edmonton, Alberta. He is active both within his companies and the industry, having served on the Board of Directors for United Van Lines Canada and the Canadian Association of Movers.

bloglink Customers like web generated estimates! Why dont movers? Join the forum discussion on this post

Tagged as: , , ,
  • http://blog.alliancerelocation.com RelocationAlly (Jenn)

    If ANY mover is interested in finding customer leads using the web, Alliance has a tool that would be perfect for you, free to try it out, and you can find out all about it here: http://www.youtube.com/user/relocationally#p/a/u/1/UX7BOAAF5zI

  • http://convert-man.blogspot.com James Kautz

    Sure, this article is an ad and the software is owned by a moving company, but he makes some good points.

  • Eric Anders

    Thanks, James.

    I asked Don if he would be willing to prepare some information about his service since web generated inventories seem to be gaining some interest within the full service moving industry worldwide. Personally I see the use of these types of virtual DIY inventory products as a means to capture customer attention when they are either too busy or too anxious to agree to an in-home estimate.

    Hopefully, at least, it starts a conversion about the idea …

  • Don

    James
    Thanks for your comments. Yes, it is an ad but we are one of the few moving companies in the world using an accurate and comprehensive, customer generated online inventory app which produces bid ready inventories. Since this is a very new concept, I thought other movers would be interested in the idea as well as the newly generated metrics we have accumulated after using this app for over a year now.
    We do have some larger moving companies picking up the app now for their websites and should have some good third party metrics in a few months. In the meantime,we will have to blow our own horn- or at least show you our horn. This is a significant change in the way we do some of the the estimating in our moving company and I believe this is the future. It has been very successful for us. Those that are willing to look at new ideas will at least have an opportunity to discuss the merits of online estimtes here, and see some of the results of this experiment in customer generated inventories. And those that are interested can try the app free and see real results for themselves.
    This forum is a place where we can discuss new ideas in the moving business and MovesOnline is a very new idea, or at least an old idea that now has been re fashioned in a practical and workable format. So forgive me for the ad, but for now, I am the only one that has any experience in using a comprehesive inventory app for moving companies.
    I welcome any questions about how this app has worked in the real world.

  • Don

    Jenn
    A bit of clarification. MovesOnline is not a lead generator. It is a web service that movers can use on their website to do inventories where it is not practical or profitable to to do an in-house or telephone survey. OR where the customer prefers an online inventory to a monotonous phone call or an inconvenient in home visit.
    In practice, when given the choice, customers choose to do an online inventory 80 % of the time.

  • http://convert-man.blogspot.com James Kautz

    Don – don’t get me wrong, “ad” isn’t a four letter word to me. I truly believe this is an innovative solution. It’s sad that the moving industry is so far behind the technological curve, and I hope ideas like this can help us all become more efficient. I applaud your company’s boldness with this innovation and in your marketing of it. I’ll mention your product to our management team; it might be something we’d want to include in our website down the road.

  • Roger

    Interesting approach, it’s certainly the future.
    But furniture is generally the least of all worries on long distance moving. The challenge is in cartons, the garage, storage areas, etc. How do you lead a consumer to estimate the carton count, typically 35% or more of the total weight?

  • Don

    I appreciate the support. Thanks

  • Don

    Good question. We almost didn’t develop this app because of the anticipated problems with estimating packing. Once inventories started to pour in we realized that well over 95 % of our COD customers were packing themselves. Because they are almost all owner pack, there is seldom a need for us to supply a packing price so we only have to worry about the extra weight of cartons. You are right on the ratio. We initially use an add-on factor of 35-40 %, then update if necessary once they have completed their pack. You can set your own company’s packing weight factor on the admin page. We use 40% as a default. When the customer wants a full pack by our company, our salespeople do go out and perform a physical estimate anyway, so we can give them an accurate packing price, but as I said , this is rare.
    For the most part, the 35-40% add-on for cartons is pretty accurate. The app also suggests the number and type of cartons based on the items listed so your customer can buy cartons from you.
    When it comes to the garage, storage areas etc, have a look at this page. I think this will address this issue.
    http://demo.movesonline.com/step2.aspx?quoteRoomID=67839&Complete=1
    Customers often comment that these pages really help them remember what is in each area.
    We compared MovesOnline accuracy with van line accuracy and there is almost no difference in the number of moves that are “within 10 % of estimate” . This is remarkable considering that almost all van line estimates are visuals, but the facts are there. MovesOnline does have more moves that are over 20% of estimate, but these have not presented a problem since the customer has created their own inventory, and the responsibility is theirs. I will post some more metrics that compare accuracy once I am back in the office.
    And I agree, this is certainly the future-and we are almost there.

  • atlastmover

    folks stop trying to reinvent the wheel find a good mover from within one of the major van lines period .There are fly by night moving companys all over the country and they do come out of the woodwork in the summer time as well as movers do(seasonal work) the best thing to do is to find a mover who is located at the destination of your move and not the origin (very simple folks and clever)
    Do purchase additional insurance and be honest in case you have a legitimate claim not just a get money back for moving expenses claim (you sob know who you are). Let the driver know what is important to you and pack well,do not wait until the last day of your move to blame someone else for your FUps.Find a mover who sells weight and not cubes and remember that and educated customer is a good customer,if you book a move with a van line you are allow to observe the weighing process at origin and if not possible at destination. I am a 28 year moving veteran leased to Atlas Van Lines we have second to united van lines the best safety record of any mover but we certainly are number one in customer service. Good luck with your move and do not be a victim of dot com or people who are trying to simplify moving from a computer program stand point. God Bless

  • Eric Anders

    Thanks for dropping in, atlastmover. Twenty-eight years is impressive. Hang in there…

    While your practical advice generally applies to most folks purchasing moving services, it’s not entirely accurate and might confuse some readers.

    Most established interstate HHG movers use an electronic or paper cube sheet to determine the actual amount of space a shipment will occupy when it’s finally loaded into a truck or moving van. Many then convert the total cubic capacity to weight using a conversion factor that usually varies between 6 and 7 lbs per cubic foot. The actual number used is determined by the estimated density of the items being shipped. The default value used in most electronic applications is usually 7 lbs but can be changed by the user.

    After Congress deregulated the moving industry in 1980, however, the Federal Motor Carrier Safety Administration’s (FMCSA) consumer protection regulations were changed to allow interstate carriers to use any method they want, including cube, to calculate binding estimate charges as long as the methodology used is included in their tariff and explained to the customer.

    Non-binding estimates still require that an estimate weight be used. While this estimating option is not popular with most carriers and agents throughout the industry, it’s not illegal.

    A comprehensive web generated inventory that’s been properly and responsibly completed by the customer is probably a whole lot more accurate than a cursory phone estimate or quick walk-through by a experienced salesperson. Personally I think you’ll see an explosion of new customer generated inventories in the next few years as effective use of new technology and mobile apps becomes more of a service differentiator for forward thinking salespeople.

    Incidentally, EVERY interstate carrier licensed by the FMCSA – not just the major van lines – is required to allow their customers to witness both the tare and gross weights at origin and/or destination.

  • DanCunningham

    Very well stated… Love this post!