What if I told you you are losing 5-10% of revenue a year? Furthermore, you might not have even noticed. In this blog post, I’m going to explain why it is alarmingly easy to lose an obscene amount of revenue, without doing anything. Here are the 4 problems your business could be suffering from.
The shift moving towards e-commerce maturity means the journey evolves as well. As noted in Part 1, the top e-commerce priorities are shifting to transactional priorities. Part 2 will explore what is changing and what that could mean for your business.
The 2017 State of E-Commerce in Distribution survey indicates the percentage of respondents with a mature e-commerce offering (at least 10 percent of total revenue through the e-commerce channel) decreased slightly by 2 percentage points from 2015 to 2016.
For the best customers, Distributors can devote resources to maximizing the business relationship, while for less profitable and less efficient customers, Distributors can find ways to lower cost-to-serve and increase dollars per transaction.
A surprise for many Distributors is that a lot of accounts they consider “good customers” because of the frequency or regularity of orders, the total amount of revenue they contribute or the total gross profit or gross margin percentage they seem to provide are actually costing them significantly more money than they bring in to the company.
While most distributors learned long ago to avoid managing for top-line sales revenue as a measure of results, many of today’s distribution businesses still believe that managing by gross margin is effective. In particular, sales compensation is typically rewarded based on gross margin for a particular deal.
To be successful, you need to make the case that your plan serves the company’s – and management’s – best interests. Emphasize results, not features, and be ready to make your business case with numbers and support from your counterparts in sales, customer success, and other stakeholders.
Every organization experiencing success with marketing automation has a different answer to this question. Here are the three that surface most often.
Increasingly, we hear distributors say that their e-commerce site is not getting the revenue traction they expected. The distributor went into the initiative thinking, “Build it and they will come.”
When shopping (finding, researching, and evaluating products), three methods are most frequently used including performing online search, going to a manufacturer website, and going to a distributor website. These electronic shopping methods were preferred over shopping by talking to people (sales reps, CSR’s, colleagues) or using print.