How Influential Are Dealers (Contractors) When Pros Select Products?

The question of what influence a distributor has on their customers is often debated. What percentage of the time do customers know what they want (and hence the distributor acts as an “order taker” or fulfillment source) and what percentage of the time do they influence product selection.

Over the years there have been some studies in the electrical industry that have suggested that 70-80% of the time the customer “knows” what they need (or at least think they do).

A recent survey for Hanley Wood, a magazine publisher and the publisher of ProSales, may shed some light on how influential distributors either are / can be. While some will say “different industry” but our experience suggests that the behavioral aspects of contractors in similar industries behave similarly.

So, for your consideration ….

• “Nearly 25% of home builders and 30% of remodelers (or in the electrical industry “contractors”) are likely or very likely to switch from a requested product because a distributor recommended a change. (which means that counter, inside and outside salespeople need to be trained and appropriate information needs to be made available to the customer).
• People under 35 are more impressionable than their peers over 55 (i.e. the younger they are, the less set in their ways)

Additional insights as it relates to the residential / building segment:

• Social media sites are among the least used sources of information
• Search engines are the primary source (76.1% using weekly)
• Enewsletters are industry publications are very important information sources
• Manufacturer websites are where businesses primarily go to become more aware of a product / service.
• Industry print publications and search engines are the two most likely vehicles for creating awareness for manufacturers.
• 45% said industry peers are most likely to influence product selection (i.e. referrals and testimonials)

To view the entire survey results, click here.

The keys to differentiating, and adding value for distributors in the eyes of manufacturers and contractors / customers comes down to:

• internal product communication and training (understanding product benefits and applications)
• communication strategies to customers
• a willingness to promote products, verbally, to customers … suggestion selling

For manufacturers … release and promote the content … through your website and through push communications either through industry publications (print and e) as well as through distribution communication tools.

While social is fashionable, an integrative marketing communications initiative, inclusive of sales person expectations) is key to success.  Unfortunately this occurs infrequently.  Research has shown it takes 18-27 media exposures for an individual to remember something.

Are you communicating enough to make a difference?