UDM INTERNATIONAL: UDM Drives Culture of Success as Sales Skyrocket

“We can sell anything,” smiles Jacqui van der Riet, Managing Director of UDM International, a leading South African direct marketing business. “It’s incredible what you can sell over the telephone with the right incentive structures for your staff, the right recognition, the right training – I believe we could sell anything.”

Established in 1994 as a modest sales operation handling a small number of promotional insurance campaigns, UDM has changed, adapted, survived and thrived through all that South Africa has thrown at it over the past three decades. Economic evolvement, socio-economic shifts, technological transformation, and regulatory rollercoasters have moved the goal posts – many times – but UDM continues to score, notching up highly impressive sales numbers for its clients.

An employment creator, this 380-strong company is on the rise, consistently bringing in new people across multiple disciplines while others slowdown and dwindle because of weak market conditions that came as a result of the pandemic.

“Now, we are on an amazing growth path and there is a different feel in 2022. We are seeing that people feel we are approaching the end of the Covid disaster and the mood in the market, as well as the mood of staff, is all about recouping and growing,” van der Riet tells Enterprise Africa.

But industry commentators are quick to chime ‘sales is hard, sales only allows you to be as good as your leads, working in sales bring too much pressure’. In fact, even global CRM business Sales Force has released research demonstrating that sales is one of the toughest career choices because of the demand for relentlessly increasing productivity, the challenges in reading each individual customer, and the need to take personal accountability for results.

The Wall Street Journal released a report in 2021 detailing that, even with high pay and large numbers of vacancies, fewer and fewer are looking to get into sales worldwide. The industry has earned itself a mixed reputation, but companies that solve problems and work alongside clients and customers, rather than only in self-interest, are reaping the rewards of the new market which is more consultative and transparent.

SELLING SUCCESS

For UDM, sales is not about being pushy or selling for the sole purpose of commission. The company works almost as an extension of its client and delivers services that make a difference in the lives of the customer. For this reason, the company is flourishing and changing the image of the world of sales through a vibrant, attractive company culture.

“We take on around 30 trainees every single week and they go through a 12-week training period. Initially, they are on a temporary contract but if they are good enough over the 12 weeks then they will be offered a permanent position. Of the 30 trainees, only 6-10% end up permanent because it is a difficult job that requires discipline, hard work and high productivity. As a result, we are always looking for new people.

“We are currently redesigning our training division, just because I feel that the percentages of people going permanent are not high enough. I have included all of the top salespeople – and we have an elite team – and they are the highest earners in the company, and they are helping to compile training which comes straight from the horse’s mouth. We are hoping that more realistic training is going to help us keep more people permanent,” explains van der Riet.

Often a quickly forgotten fact, sales is the lifeblood of any organisation and without a growing pipeline and a set of real people who can get deals over the line, progress will slow very quickly. With this vital cog in place, selling useful and tailored products becomes easier, helping to drive performance for all.

“When we sell cancer insurance or accidental disability cover, we feel we are making a difference in people’s lives – that can be more important than money,” says van der Riet.

Locally owned, female-managed, with a proven track record, UDM delivers growth and development.

The company is well-versed in all regulations and requirements in the local market and has clean and concise processes to avoid the often long and loathed methods associated with organising insurance over the phone. The company only employs people and doesn’t not use any form of robo-callers or recorded messaging.

CULTURE RULES

Bullish van der Riet, who has been with the business for 27 years, says that the key to efficient and effective sales is motivation of people. By looking at how salaries are made up, and paying well above the market average, employees have a clear vision on how to go about improving their pay packet.

“When people hit their targets, they are very well renumerated and they earn more than most highly professional people,” she says. “The motivation is money, but there is also an atmosphere where people are highly recognised. We give out awards every week and we have a really fun vibe that breeds success. It’s contagious – when you’re in the building and you become part of it, it becomes addictive.”

Company culture is listed by Forbes as the most important element in strategy, helping to attract and retain talent, build a strong brand, and grow turnover. At UDM, the culture has been nurtured over a long period and the result is a driven environment where people support each other while having fun. Importantly, van der Riet is sure this culture gives UDM the edge over competitors.

“It doesn’t exist anywhere else currently and would take a lot of time and effort to recreate,” she explains. “Of the people that leave, 70% beg to come back. I don’t believe any other company is as generous with their staff, I don’t believe any other company is as involved with their staff, I don’t believe any other company has the family atmosphere, I don’t believe any other company has the fun that we have, and I don’t believe any other company has that authentic relationship of support throughout the entire company – that is what makes us unique.”

Add a competitive bonus package and a structured method to the mix and you have a recipe for success.

“Everyone earns a percentage of what they sell and that kicks in at 50% of their target. As you reach more of your target, your incentives increase. Between 90% and 100% of target, there is a big gap, but it could mean a R25,000 a month difference in salary. Bonuses then kick in at 105% and 110%. People are always aiming higher as it makes a big difference to their income. The combination of people knowing exactly what is expected of them, the tools they are given to work, and the motivation to get involved and work makes for a great offering where everything is achievable,” details van der Riet.

“Everybody in the company is planned for every hour of the month. We have huge schedules where we know how many leads we will be getting on certain campaigns and we know how many hours we have for people to work on those campaigns. People do not sell across all products, they are focussed on certain campaigns. We will put people where they are most suited. We give people targets and leads in advance and everything is very organised. It is strategic and well planned.”

PEOPLE POWER

UDM’s devotion to its people was displayed as the Covid-19 pandemic emerged and rolled on. A crushing blow for many companies, UDM thrived as customers became more available and the importance of risk protection was thrust into the spotlight. Adjustments to the sales process to up volumes as pricing reduced was quick and seamless.

“Our contact-ability skyrocketed and that helped our business tremendously,” says van der Riet. “The downside of that was that our client is the insurance company and we get paid for every sale that we make so we don’t get involved with sending of policy documents or collecting premiums. They found that even though we were making thousands and thousands of sales, they weren’t necessarily collecting very well. With the change in the economy and affordability being hampered by Covid, people became more conservative with their spending and there was a lot of job losses and reductions in salaries. As a result, our client said to us that they would reduce premiums from around R250 per month to around R99 per month. Our fee is completely linked to the value of the sale, so when the premium goes down, we are earning a third of what we were. To counter, we have had to look at volumes. We are bringing in lots more people and throwing everything at the R99 premiums.”

The result – more jobs were created and the company did not retrench a single person. A streamlining process allowed for each individual to be utilised to maximum capacity so that the company continued to grow and deliver for its client.

The partnership between UDM and its Insurance Company client goes back more than two decades and has been one which both parties have received major benefit. The client offers top class insurance services including cancer and accidental disability policies. In the early days, it built an amazing network through a referral scheme but needed a marketing solution to drive sales. UDM had been handling small-scale sales for the likes of AIG, Protea Life, Alexander Forbes and others, but stepped in for the client and never looked back. The relationship became exclusive in the early 2000s and both boost each other’s success.

“It really has paid off,” van der Riet smiles. “Every business textbook will tell you that to have only one major client is the worst idea, but it has been very good for us. We bend over backwards for each other and we are dependent on each other for the success of both businesses.

“I often worry about what would happen if we lost our client, but I have to remember that we are just as valuable to them as they are to us. As long as we keep ourselves valuable then we will continue to succeed.”

Thankfully, van der Riet knows how to remain valuable and keep a company nimble. Joining UDM as a part-time receptionist 27 years ago, she has a deep understanding of every aspect of the business. Initially, she came in to simply answer the phone, but got bored and started to drum up competition with another employee who was tasked with collecting new details from policy holders whose renewals had lapsed. The excitement and earning potential was a draw for the young professional, and she developed new strategies based on previously ignored statistics. But she quickly became aware she must start to bring in more business – the start-up was not flush, and a more comprehensive approach to growth was required.

“When I started at UDM, our turnover was R2500 per month, my salary was R4500 so I knew quickly that we needed to get some work in here,” she remembers. “Word of mouth in the industry ensured that people knew who we were and we then got enough business to get some employees in permanently. We got some work with AIG and other big-name insurance companies, and then we were approached by the owner of our insurance company client who could see that direct marketing had huge potential. Back in the day, it was about sending out thousands of mailshots to people in the post and then waiting for them to fill out applications and return them. If you got a 1% return, it was considered a success. But with telemarketing there was an expectation of around 13% which was great. We managed to get data and began selling, upselling and reselling to people, and that is when our client wanted us on an exclusive basis. We started selling a women’s cancer policy and that cost R49 per month and we then started to try and add a husband to a policy which meant we could sell two policies in one call. That took our business through the roof almost overnight.”

Quickly, the company jumped on the opportunity of selling to the male population and began with an accidental disability policy which was eventually offered to women too. Traditionally, because of the nature of the referral model used by the client, UDM’s exposure in the African market had been limited, but this changed with the launch of a new product range from the client.

“We started selling cancer insurance but that was difficult. We tested a TB product, and that didn’t work. So, we now sell accidental disability and death cover into the African market and that sells very well. Many people travel by taxi and it can be quite dangerous, with many accidents, but we cover any accident.”

Away from insurance, the company also boasts a strong cosmetics sales business, broadening the portfolio and demonstrating van der Riet’s claim that the company can sell anything.

“Our main focus is insurance, but we can’t underplay cosmetics. Last year, we sold around R145 million of cosmetics and that is amazing how we can do that telephonically without sending sample packs or anything like that – it’s all about the conversations. We send a yearly supply and we then deduct monthly on a subscription model.”  

FUTURE GROWTH

There are obvious growth strategies for UDM, including finding new customers, selling more products, and driving for improved conversion figures, but in a direct marketing business you cannot simply grow overnight – for every new growth phase, the company needs more people. At the same time, the company currently has more than enough business and an exclusivity agreement with its premier client. So, van der Riet is considering options.

“The safest way for UDM to grow would be to formulate our own products – that doesn’t have to be insurance,” she says. “At one stage we were looking at organic cleaning materials. We started developing the products and we started to build a database through a referral scheme. But we struggled to get the profitability that we need. We couldn’t get the margins and it was a real stretch to find that.

“To grow quickly, we can introduce more products with our current client but also take on new business with new people. We have a great relationship with our current client – we earn the most money with them and their data is amazing, but we always keep our eyes and ears open.”

In terms of geographic expansion, right now van der Riet believes UDM has more than enough opportunity at home in South Africa and is not looking to grow beyond the country’s borders. In the past, the company has explored opportunities in the UK, USA, Poland and other areas, but with limited success and a complex regulatory environment, a decision was taken to remain in South Africa. “All the directors of both the client and UDM are very happy with that decision,” she confirms.

And when it comes to the future much further down the line, no concrete plan is in place – again, UDM will take opportunities as they come. One thing is for sure, the company structure will not change.

“I don’t want to sell. I don’t want to list. I don’t want to retire,” declares van der Riet. “We are all doing so well and we are in control of our destiny and that is a beautiful thing. I want to protect what we have which is a great thing and a unique situation where people are happy.”

She adds that even if the company was to look at opening another branch in pursuit of growth, this could fragment attention and take away from the highly impressive work the company is doing right now.

Key in the success of UDM is an unyielding focus on being the best and achieving results. This mantra has run through the business for many years, and is delivered through a top-down approach with every employee understanding the importance of their role. Ultimately, the company’s mission statement is to be acknowledged as the most professional, ethical and successful direct marketing organisation in the world.

“I don’t accept second best. We have a great understanding of that and our staff are very supporting of that ethos.”

Apparently, UDM is taking inspiration from Nelson Mandela, who said: “I never lose, I either win or learn.”

Expect brilliant things from this business in the future. With such great accomplishments already achieved, and with a culture of excellence spanning a magnificent group of people, UDM is certain to grow, and continue driving results for clients while solving problems for customers.