For years, industrial distributors ran their businesses without changing much about how they went to market and sold their solutions. Now, as the landscape of industrial distribution evolves more rapidly, staying ahead of the competition requires a strategic approach to sales transformation.
Embracing a customer-centric sales model, integrating ecommerce with traditional sales channels and leveraging data-driven decision making are crucial steps toward that transformation, especially for B2B industrial distributors selling implementable solutions.
Build a Customer-Centric Sales Model & Methodology
Shifting from a product-focused approach to a buyer- and customer-centric sales model and methdology is essential. Industrial distributors must gain a deeper understanding of their customers and exceed their expectations to drive loyalty.
To become more customer-centric, distributors should:
- Better Understand the Market: This includes their customers’ COIN-OP (Challenges, Opportunities, Impacts, Needs, Outcomes, and Priorities) as well as the Buyer Personas and Buyer Archetypes. (For more on COIN-OP, Buyer Personas, and Archetypes, see this post.)
- Adapt Sales Models & Connect the Dots: Rework your sales model (inside sales, outside sales, call center, customer support) based on customer expectations and preferences. Establish omnichannel systems that ensure “the left hand knows what the right hand is doing” to create a seamless customer experience.
- Listen to Customer Feedback and Adapt: Actively seek and incorporate customer feedback to improve products and services. Establishing Customer Advisory Boards can be very helpful in this regard. Don’t just assume you understand your customers well enough. Go further than you think you need to; go further than your competitors will.
- Invest in Sales Excellence: When salespeople are engaged, they should tailor sales approaches to individual customer preferences and requirements, and bring insights, data, expertise, deep understanding and real value (from the customers’ perspective) to every customer interaction. It’s impossible to be an Olympic athlete, a ballerina or a musician without training, practice and coaching. Yet, when it comes to sales reps, we often “leave them alone to let them sell.” Upskill your sales force and then create a coaching culture with a cadence of continuous improvement, making your sales force a true competitive advantage.
- Foster Long-Term Relationships: Build trust and reliability through consistent and high-quality service. This is a culmination of many of the above actions, but it requires an intentional and purposeful approach.
By adopting a customer-centric approach, distributors can enhance customer satisfaction and retention, ultimately leading to increased sales and market share. Programs like my Modern Sales Foundations emphasize the importance of buyer- and customer-centric mindsets and methodologies, providing valuable frameworks, models and tools for implementing these strategies effectively.
Integrate eCommerce with Traditional Sales Channels
Integrating ecommerce platforms with traditional sales channels (and adjusting inside/outside sales and customer service based on customer expectations and preferences) is vital for maximizing reach and operational efficiency. This hybrid approach allows distriubutors to:
- Increase Accessibility: Customers can access products and services anytime, anywhere, enhancing convenience and satisfaction. Make it easy to get help as needed (chat, phone, virtual meeting, onsite visits), but give them an option to research and explore, and when possible, purchase online with confidence and ease.
- Streamline Operations: Automation of sales processes reduces manual effort and errors, improving overall efficiency, reducing cost to serve and therefore increasing profitability.
- Enhance Customer Experience: A seamless online and offline experience meets diverse customer needs and preferences.
Successful integration requires careful planning and execution. Distributors should focus on creating a unified customer journey, ensuring that both online and offline interactions are consistent and complementary. This approach not only boosts sales but also strengthens the distributor’s market position.
Enhance Sales through Data-Driven Decision Making
Data-driven decision making is a powerful tool for industrial distributors. By leveraging big data, AI, machine learning and advanced analytics, distributors can gain valuable insights into market trends, customer behavior and operational performance. Key strategies include:
- Sales Forecasting: Use historical data and predictive analytics to anticipate future sales and adjust strategies accordingly. Knowing your organic trendline allows you to employ straegies to exceed it.
- Inventory Management: Optimize inventory levels based on demand patterns to reduce costs and improve service levels.
- Identify Sales Opportunities: Analyze customer transaction data and compare to similar customers’ patterns to uncover new sales opportunities (cross-sell, upsell or the need for recovery strategies) and tailor both sales and marketing efforts.
Implementing these data-driven strategies enables distributors to make informed decisions, improve efficiency, and drive growth. This highlights the importance of data in shaping effective sales strategies, and AI and machine learning will continue to provide tools and techniques for harnessing the power of analytics.
Closing Thoughts
Sales transformation is a multifaceted journey that requires a strategic and integrated approach. True transformations are tailored, not cookie-cutter, but these pillars should be part of every distributor sales transformation. By building a customer-centric sales model, integrating ecommerce with traditional sales channels and enhancing sales through data-driven decision making, industrial distributors can position themselves for success in a competitive market. Embracing these three pillars will not only drive growth and efficiency but also ensure long-term sustainability and customer satisfaction.
Additional Reading
- The Combined Power of AI and Human Differentiators in Sales
- How to Improve Your New Business Development Results
- Grow Faster with These 10 Advanced Skills for Your Sales Force
Mike Kunkle is a recognized expert on sales enablement, sales effectiveness, and sales transformation. He’s spent over 30 years helping companies drive dramatic revenue growth through best-in-class enablement strategies and proven-effective sales transformation systems. In doing that, he’s delivered impressive results for both employers and clients. Mike is the founder of Transforming Sales Results, LLC and works as the Vice President of Sales Effectiveness Services for SPARXiQ, where he designs sales training, delivers workshops and helps clients improve sales results through a variety of sales effectiveness services. Mike collaborated to develop SPARXiQ’s Modern Sales Foundations™ curriculum and has authored SPARXiQ’s Sales Coaching Excellence™ course, a book on The Building Blocks of Sales Enablement, and collaborated with Felix Krueger to develop The Building Blocks of Sales Enablement Learning Experience.
1 thought on “3 Pillars of Sales Transformation for Distributors”
All good topics as we at EETech have been assisting many with their data to aid both customers and suppliers, with their research to understand the market, with their digital footprint to aid how the customer wants to be served, and their positioning within media as delivering their message is key.