Most of the manufacturers we deal with sell through various distribution channels. The relationships range from true partnerships to a necessary evil. Most manufacturers have missed an opportunity to build relationships by not utilizing an old technique called a distributor council. We did a survey to a group of manufacturers who sell through distribution and 85% of them haven’t used this marketing tool.
I think with the market changes after 2008 and the rise of social media, that some of the old traditional ways of building relationships were put on the back burner. If your goal is to build lasting relationships with key distribution partners, you might want to consider a distributor council.
The group has several purposes:
▪ Reinforce your commitment to the industry
▪ Discuss industry trends
▪ Identify ways you can better serve them
▪ Identify new product opportunities
It’s a great way to say thanks to those who have been loyal to you and a way to build loyalty with some distributors that have you on as a supplier but is splitting the business with one of your competitors. I can’t tell you the number of times that I’ve seen those kinds of distributors come to a meeting like this, and after hearing stories from your brand-loyal distributors on how you really bring value to the table that orders start increasing.
Here are the basic items for you to consider for a distributor council:
Identify 10-12 key distributors. Ask them for a 3-year commitment (rotating 3 off each year to be replaced by new ones). Make sure they know this just isn’t a social event.
Have two meetings a year. One at your facility so they can interact with other members of your team, and one somewhere nice and warm in the winter.
You pick up all expenses.
During the course of the year, if a new opportunity surfaces or you want feedback on a possible new product, get their input.
Possible Topic Areas to cover in meetings:
1. Product Training
▪ What kind of training are they looking for?
▪ What are other manufacturers doing?
2. Sales Force
▪ How can they help you sell more product?
▪ How do you rate our salesmen (weak/strong points)?
3. EDI
▪ How important is it to you?
▪ What systems are you currently working on?
▪ How many of your other manufacturers offer EDI?
4. Marketing Support
▪ What can we do to help you sell more products?
▪ What kind of support do your other manufacturers offer?
▪ Review and evaluate marketing support we currently have.
▪ How important is the Web in your sales operation?
▪ Would you use direct mail programs targeted at end users if we supply them?
▪ What do other manufacturers do that work well for you?
5. New Products
▪ Ideas on new products?
▪ Ideas on improvements to current products?
6. Pricing/Service
▪ How do we stack up against the competitor?
▪ What are our strengths and weaknesses?
▪ What are our competitor’s strengths and weaknesses?
The key is to put together an action item list coming out of the meeting and get back to them on items you will be taking action on. This will show them that their input has been heard and is valuable. Let them know upfront that anything can be on the table, but that doesn’t mean that all items will be acted upon.
Distributor council meetings can be worth their weight in gold if handled properly. Have you had an opportunity to participate in any? I’d like to hear your thoughts.
I can’t believe that 2013 is almost half way done. There are some mixed messages out there on how things are going this year. I’d like to take the pulse of the industry to see how you’re doing. Can you take a quick poll? Results are shown.
Sometimes as marketers we tend to gravitate to the newest or hottest thing out there to give it a try. What I might suggest we all do is go back to some basics like email marketing. This is a proven method of communicating with both existing and potential customers.
Lauren Fisher from eMarketer recently did some benchmarking on email marketing which included key data, trends and metrics. Here are some highlights:
Emails are increasingly accessed by mobile devices.
Personalization using triggered emails are increasing.
Daily email use is higher among mobile phone users.
There are over 546 million mobile email users in 2012. That number will triple by 2016.
USA mobile users are estimated at nearly 116 million users.
Nearly 33% of all emails are opened on a mobile device.
Internet users still trust email messaging.
Less that 22% of marketers are optimizing their emails for mobile devices.
Sonnhalter is deeply involved with the professional tradesman. We recently updated our overview of the Industrial/MRO market. The purpose of the document is to give the reader a quick snapshot of the industry and its players for 2013.
Highlights include association and buying group contacts, distribution, training firms/certification organizations, online resources, trade shows/meetings and media publications.
A free copy for viewing/download is available by signing up here.
With the NAED show coming up in May and the ISA show coming up the first part of June, it got me to thinking about trade associations and how they try to get the distributors and manufacturers together so it’s a win-win for everyone.
Most associations are stuck doing things the way they have for years. I wonder if it’s because they’re afraid of change or don’t know how or why to try something different.
Two models that I think work well are the National Association of Electrical Distributors (NAED) and the Industrial Supply Association (ISA). They both have tried different things that seem to be working.
The NAED for years now at their regional meetings have a dance card format that Manufacturers need to get on to get, I believe, 20 minutes with key folks from the distributors they want to talk to. Most manufacturers like this as they know who they’re going to see and can prepare accordingly.
The ISA, a few years back, initiated the FastMatch program in which the manufacturers are in the booth, but set up their dance card with the distributors they want to see. They like to have 20 minute intervals in which to have one-on-one meetings. This year, they are trying, “Take an exhibitor to lunch,” in which the distributors set up a lunch in the hall and invite select manufacturers to lunch. I’ll be curious to see how that works out.
I guess the point I’m trying to make is these associations are trying different things to bring more value to the table.
I’ve put together a quick poll to see what your thoughts are on this. Please take a minute to take and see the results.
I think with the market changes after 2008 and the rise of social media, that some of the old traditional ways of building relationships were put on the back burner. If your goal is to build lasting relationships with key distribution partners, you might want to consider a distributor council.
