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Thinking About TodayPlanning for Tomorrow
Ideas that Deliver Results
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The MarketQuestioning OurselvesThinking About TomorrowBecoming a Gazelle
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1. Slow / Minimal Growth, Nationally◦ Nationally … +/- 2% … New England Originally 4.3%◦ Major Markets Experiencing Growth◦ Correlation to Urban Areas, Contractor-Focused, LED Drivers◦ Larger Companies Aggregating Business
2. Margins Eroding … Need for Operational Excellence 3. Better Marketing By More◦ Who “owns” the customer?◦ Manufacturers Funding Less
Need for Profitability
Need for Their Marketing
Redirecting Funds … Coop Going AwayPay for plan and performance
◦ Distributors Need to Learn “Budgeting” for Marketing
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4. Different Sales Models◦ Inside Sales Being Valued More◦ 2 Tier Models◦ Compensation Structure Reviews
5. eCommerce Investments … Limited eMarketing … Limited Adoption
◦ Price Consistency & Inventory Accuracy Issues Accelerating◦ eConnectivity with Contractors◦ Think Retail
6. Alternative Channels◦ Anixter / Grainger / Fastenal / McMaster-Carr / e / ?◦ We’re Only One
7. Average Age Declining◦ College Recruiting◦ Technological Experience◦ Old Habits Dying Hard
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DISC ReportJuly 2015
Patchwork EconomyLarger Contractors PrevailRe-Urbanization
Uneven market growthUrban Areas Growing
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FocusRevenueLong Term ObjectiveCustomer / Product-Orientation
Goal Drives Direction, Strategy & Initiatives
Consider◦ Size for Size’s Sake? … Need Market Share◦ Size for Valuation? … Allows for Diversification◦ Size for Profitability? … Operational Excellence & Focus
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Niches◦ Profitable or Distractions◦ Committed or Dabbling?◦ Goals? Annual Expectations?◦ Planning for Success or Enabling for Existence?
Need◦ P&Ls◦ Plans
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Rising Tides =Market Expectations
Ride the Wave = Create Demand
On Shore =Consider Adjacencies
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Smart HomeSmart OfficeSmart IndustrialLED Seller or Order TakerTurn-Key Solutions / Marketplace Knowledge Source
Seek New Business◦ Demand Creator◦ New Revenue Models
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Differentiating oneself is important
BUT …
Need to know what is
important to “the” customer
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Expectations Drive Service◦ Customer◦ Management◦ Self
“People Respect What You Inspect”
Metric Management Sets Expectations
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“Right Sales Force”Integrative & Segmented Sales ApproachCommission ≠ Aggressive Sales forceProcess Trumps … Who Steers the Ship?
Different StrategiesTo
Different Customer Bases
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Salesperson May Only Be an Element of Tomorrow’s SellingExperience = Relationship
Consider These Relationships:
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Is Today’s Branch Centric Sales Model TheSolution for Tomorrow?
Consider◦ Remote Outside Sales Offices
Corporate Environment? Homes?
◦ Distributed Inside Sales?◦ Multi-Supplier … Complementary or Competitor!
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But Whom’s?
◦ Who “Owns” the Customer?
◦ Who is the Customer”?
Follow the Money!
Are We In The Decision-Making Channel?
• The owner • The influencer• The overseer• The installer• The doer
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If money wasn’t a consideration …What would you do?
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Be THE Gazelle