For most distributors, the top 10 percent of their customers represent 60 percent to 90 percent of that distributor’s revenue. Those customers are well served by field sales reps. The remaining 90 percent of the customers, often called house-accounts, have 10 percent to 40 percent of the total revenue.
If you give a salesperson 100 accounts to call on, odds are he or she will actively work the top 20 to 30, receive calls from the next 20 to 30 and ignore the remaining accounts. While this salesperson is busy maximizing his or her commission by focusing on the larger accounts, the company is…
E-commerce demand generation is in transition. According to results from the third annual MDM Distribution E-Commerce Survey, while most distributors are increasing e-commerce revenue from email marketing, catalog and organic search, they remain less effective with paid search and marketing automation.
This article examines the results of the 2014 State of E-Commerce in Distribution Survey and how the industry’s e-commerce offerings are maturing. Part 2 will look at best practices for distributor e-commerce marketing, data management and operations.
Over the last 20 years, there has been a broad movement by distributors to make operational improvements such as supply chain management, process standardization, lean production, and others. These practices, though not universally deployed among distributors, have created tangible efficiencies that manifest at the bottom line. While there is still more benefit to be realized…
They are undifferentiated because they say and offer essentially the same thing as their competitors. They are not relevant because they have not been tested with the market to see what customers and prospects care about the most.
When we ask executives for the value proposition of their business, they usually provide a ready, confident and well-rehearsed answer. The answer consists of a few claims about what they believe they do well.
Customers have indicated a preference to receive communications in both digital and print formats. It’s not a surprise that they still want to receive the traditional print catalog once per year. As we’ve discussed in past articles, print is still a very viable and preferred form for customers to have a complete view of your products.
E-commerce revenue as a portion of total revenue has grown significantly in the past year through the growth of existing e-commerce sites, as well as new implementations, according to a joint MDM online survey with Distribution Strategy Group conducted at the end of 2012.
The vast majority of distributors who are still in business today have good direct salespeople without whom they would not be in business. Yet the distribution world is changing – it’s not your grandfather’s distribution business anymore.