Which way is up?

During difficult economic times, it's more important than ever to develop an organized approach to marketing your company. Without clear direction, your employees won't know which way 
is up.

by Reed Stith

Have you ever been behind a slow-moving car where the driver blocks traffic by pulling to the side of the road to check street addresses, perhaps even stops to read a map? Everyone knows the signs of a driver who doesn’t know where he is going.

After getting directions, a remarkable change occurs. The car pulls back into traffic confidently, quickly reaching (or exceeding) the speed limit, with no sign of brake lights.

This same situation occurs with your outside sales team, customer service staff and any other customer-centered personnel. If they don’t know where the customer is, they aren’t very confident or productive at their jobs.

In these uncertain economic times, there are very few clear markers to show industrial distributors which way to guide their business. When times are good and the phones are ringing, it seems easy and satisfying to react to customers’ needs – even if it means difficult requirements, long days and hard work. At least everyone knows what to do, and when the job is done, everyone has a sense of accomplishment. That’s the feeling we vaguely remember from the previous decade.

Contrast that positive feeling with today’s scenario. The phone and fax lines are relatively quiet. Even when orders come in, there is no confidence that the flow will continue. The pipeline of upcoming projects is far too short for comfort. There is no guarantee that past relationships and good service will translate into continued business with existing accounts.

Getting new business from existing or new accounts is almost a dream – too often people have given up hoping for short-term growth. The atmosphere is one of anxiety, uncertainty, frustration. No one is working at peak performance. Things go slow, and friction and turmoil creep into what was once a cohesive team.

What to do
Being entrepreneurs, many distributor principals are eternal optimists. Unfortunately, your employees need to have more specifics than “trust me, it’s going to get better.” They need to know if they’re doing the right activities that will move the company forward. Here are a few ideas to help get your team back in the fast lane.

1) Define your “sweet spot.” Get the team’s ideas about your company’s sweet spot. Since so much of the productivity comes from a motivated team, it is wise to ask the team a few basic questions, such as “What makes us special? What are we really good at doing? Specifically, from our customers’ vantage point, what makes us better than our competitors?”

Find out also what your team really likes to do. What energizes them? What activities/projects make their days fly by because they’re engaged in doing what they’re especially good at doing?

2) Analyze your customer base. Next, turn the questions outward, toward your existing customers. Which customers do you really enjoy working with? Why? What is it about them that is so satisfying?

Which customers are growing? What’s making them grow? Can you find a pattern?

Can you identify aspects of your strengths (your sweet spot) that fit well with these customers? In other words, why do these customers choose to do business with you?

3) Build on current successes. Now, try to improve upon the success with these high-growth customers.

How can you help these high-growth customers even more? What issues are they struggling with during these tough economic times?

Ideally, your inside and outside team should pose these questions directly to the customers. Taking the time to ask customers about their current priorities is basic to any customer relationship. But asking as part of a company-wide effort is a real customer attention getter.

4) Identify similar customers. Identify other current customers that have similar characteristics to these good customers, but aren’t taking advantage of your strengths. Brainstorm ways to create incentives so these customers will try more of your unique products or services. Share with them the success your other customers have enjoyed.

Prioritize the accounts that have the highest probability of increasing their business with you in your core areas. Even if growth isn’t likely until the economy turns, these customers are still some of your best targets.

5) Extend your reach. Identify similar accounts that aren’t currently customers. Use directories, such as the Yellow Pages, industry publications, local business magazines. Contact your local Chamber of Commerce to help find companies that may be new to the area, as well as key people at established firms. Talk to your sales rep and the business editor of local newspapers and magazines; they know a lot about which companies are growing and what projects they might be working on. Use Internet sources, such as the Census and County Business Patterns (www.census.gov) to find information about the size and growth of the industries in your area.

6) Communicate with these groups. What do they think/know about you now? During slow times, it might be worth having each team member make five to 10 phone calls to target accounts to see what they think about you as a supplier. Find out why they don’t buy from you now.

What messages do you want to them to know about you? Relate back to your review of your unique strengths. Make sure to promote the capabilities that differentiate you from your competitors.

What are the best ways to reach them (fax, phone, e-mail, letter)? This question involves the customer’s preference, but also your capacity. If the customer selects a communication method that you aren’t able to provide, you may need to get outside help (broadcast faxes, mass mailings).

Set up a schedule for regular outbound communications, with clear assignment of responsibility. Even though you’ve properly prioritized your targeted accounts, it may take time for the new business to begin. The key is to consistently remind the right people about what you can do for them that is valuable and unique.

Include a faxback form or business reply card for each contact you make. If you use e-mail, try to encourage feedback with every message.

Most important: Follow up each reply.

7) Set specific goals. Create individual and team goals. For example, an individual goal might be to require each team member to set goals for contacting existing and new accounts in the manner described in this article.

Team goals would measure accomplishments such as new accounts, new services/products to existing accounts, etc. Make all of the goals related to the selected target accounts.

Above all, have fun. Celebrate successes often. Establish a monthly reward for the team, such as a family picnic or a group dinner, for accomplishing goals.

8) Meet weekly to review progress. Share successes. Find out what works and duplicate it. Give each other advice on how to handle difficult situations.

In the beginning, you may find that some of your targets or some of your goals may not be properly defined. Make adjustments and move on.

9) Sponsor an event. Mix customers with prospects. Introduce the “good” customers that you like to work with to those who haven’t seen the light. Let them sell you to each other. All you have to do is get them together.

Find out what is most important to your guests. Make sure your team splits up and asks everyone about the business issues they are facing.

10) Involve key suppliers. Partner with suppliers that are investing in market development. Which manufacturers provide the best support for growing existing and new customers? This support might include local sales calls, user training and co-op marketing materials such as mailers. The support may also include national promotions, incentives and training for your team in how to sell into new companies.

Identify suppliers that have developed new knowledge about how customers make buying decisions, and how you can answer the most common questions. Which manufacturers have shown you how to choose and pursue targets that are the best fit for your capabilities?

Ask for directions
Don’t be embarrassed if you aren’t sure where to go during these uncertain times. The answers are where they have always been, with the customer, and with your team. Both are usually very willing to help sort through the confusion. In fact, slow economic times may be the best opportunity to get more connected with these two groups.

Most of the above activities involve reviewing the needs of your customers and matching up your unique capabilities with those needs. Too often, managers feel they have to develop the entire course of action themselves. Then, when they introduce the “new way” to the people who will implement it, they meet with questions, disagreements and resistance.

Don’t underestimate the contribution of your team. Even if the direction you choose takes a long time to yield the desired results, the whole team will know that you valued their input and contribution. They will feel good about the work they are doing, knowing that they are going in the right direction. And, amazingly, the positive energy coming from you and the team will compound itself. Next thing you know, instead of worrying about getting lost, you’ll be worrying about being caught for speeding.

Reed Stith, president of IDC3 Inc. in Cleveland, specializes in helping industrial manufacturers and distributors increase their performance and effectiveness through improved strategic planning, customer-centered marketing, internal and external communications and training. For more information, contact rstith@idc3.com, (330) 656-2023.

This article originally appeared in the November/December 2002 Progressive Distributor magazine. Copyright 2002.

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