If you’re like most distributors, you already provide several value-added services at no cost to your customers. But have you analyzed the cost and value of those services? Chances are, you need to get more intentional about delivering, marketing and monetizing them.
A sales call guide can be a useful tool to help salespeople connect with prospects and ensure they are firing on all cylinders with every interaction, whether in person or virtually.
Distribution Strategy Group’s Ian Heller and Jonathan Bein discuss the importance and future of value-added services in wholesale distribution. They also discuss why distributors need to promote their services, and the best way to do that on their websites.
Small customers may not generate the sales volumes needed to support them as you would support your larger customers, but they usually generate higher profit margins and do not require as many resources.
Increasing market share is good. However, increasing wallet share is even better because it is usually far easier to sell additional products to existing customers than it is to acquire new customers.
We recently published an article on selling value internally along with selling externally to prospects. Because while many distributors have spent time creating a value proposition their employees will take to heart, salespeople often falter when it comes to selling the company’s value to prospects.
Despite the many columns and webcasts predicting distribution’s post-pandemic “new normal,” it’s going to be a long time before our industry settles back into a rhythm. For now, expect a “new abnormal,” where powerful forces will continue to transform the industry and redefine how you must compete to win.
It’s probably even more important for your long-term success to take some time now to revisit why you are in business and what customers want and need most from you.
Pursuing new customers in existing markets can be an expensive proposition if not done with proper planning, analysis and execution.
Well-run companies know that customer retention is critical to long term success as a business. For some companies, an annual increase of 1% in customer retention over each of the next ten years results in 20% increase in annual earnings. Retention is powerful for several reasons.