Could Configurators Help Distributor’s Generate Website Sales?

According to the latest NAED PAR report, electrical distributors generate 5.2% of their sales via their websites (the median is 2.2%). The data is from about 100 companies, and most would say this is overstated. The report shares that distributors in the commercial construction segment generate, on average, 1.9%, with the median at .6% (so, contractors are not buying much online.)

What does this say about distributor websites?

It’s not about consummating the sale, it’s about information.

Research Channel Marketing Group has done with contractors as well as engineers confirms this. All want information.

The information could relate to product. It could be availability. At times price. In other words, it’s about “content”.

Another valued content that is mentioned is access to product configurators. Some manufacturers offer these on their websites. Few distributors connect to their manufacturers for this content.

At the NAED Eastern last year I met Shawn Yeager from Compatio.AI. The company has tools to help distributors differentiate their sites. One of them, which was recently released, is access to configurators. The product is called “Configure” and could be a tool that adds value to distributor customers.

Compatio.AI shared information via a recent press release, and then I reached out and asked some questions.

Configure

“Compatio AI, a leader in advanced product configuration and recommendation solutions, has unveiled its newest breakthrough: Compatio Configure. Configure stands as the electrical and industrial automation industries’ premier configuration tool, providing insights into product compatibility and application relevance that other systems simply do not provide.

Optimized to best meet the complex demands of manufacturers and distributors supplying technical parts and systems, Compatio Configure is set to transform the industry’s approach to guided selling. It enables staff, regardless of experience level, to configure solutions adhering to technical specifications, intricate inter-product compatibility and sales history. Configure is built on Compatio AI’s proprietary Product eXpert Engine, a graph database that integrates AI, data science and human expertise to create Real Intelligence^TM, enabling the most advanced technical compatibility calculations for complex product configuration.

Key features of Compatio AI’s Configure include:

• Inventory Awareness: Configure maintains real-time inventory awareness, ensuring that all product recommendations are not only technically compatible but also currently available for prompt delivery. This engagement extends seamlessly through product utilization and advocacy, delivering a cohesive and enriching ownership journey.
• Integrated Optimized Recommendations: Utilizing an advanced algorithm, Configure provides optimized recommendations that meet the specific needs of each customer, improving efficiency and satisfaction.
• Integrated Knowledge Base: A comprehensive knowledge base powers Configure, enabling it to make informed configuration and compatibility-based recommendations across the entire enterprise.

“Compatio’s new Configurator solution empowers manufacturers and distributors in unprecedented ways, optimizing efficiency, engagement, and compatibility,” said Tim Baynes, founder and CEO of Compatio AI. “Configure epitomizes customer-centric innovation, granting consumers control, minimizing returns, and delivering unparalleled convenience.”

Additionally, Compatio AI is pleased to announce the launch of four pre-built configurators specifically designed for the industrial automation industry. These include configurators for panel boards, enclosures, variable frequency drives (VFD), and motor controls. Each pre-built configurator is tailored to streamline the configuration process, ensuring precise and efficient setup of complex industrial systems.

In a marketplace where speed, accuracy, and efficiency are paramount, Compatio AI’s Configure stands out as a powerful, high-performance solution. It combines robust performance with easy maintenance, ensuring a low total cost of ownership and setting a new standard for technical excellence without the drawbacks often seen in other products.

Configure meets the critical need for manufacturers and distributors to assist customers in building complex solutions, merging encoded human knowledge with AI/ML technologies. This innovative product offers a distinct advantage over solutions reliant solely on single-manufacturer parts or costly technical staff recommendations, making it an industry leader and an advantageous choice.”

Learning More … Asking Compatio AI Questions About Configure

I reached out to Compatio with a number of questions. Nathan Waters, Compatio.AI’s Director, Industry Solutions, shared the following:

1. Which electrical manufacturers have Compatio tools deployed? Or, if they are not willing to share company names, what product categories are they currently supporting?

Our approach is to cover certain product categories. We started with categories that are typically high revenue for most distributors.

For configuration, Product categories include: VFDs, Motors and Motor Controls, Control Panel Enclosures, Circuit Breaker Panelboards

For compatible product recommendation solutions: Configurator categories plus Relays, Pushbuttons, Power Supplies and many more…

We have a precision taxonomy plus catalog that supports over 10,000 product categories in the Electrical and Industrial Automation industries. Specific compatibility logic is under continual development and recommendations improve day by day.

Brands we are dealing with include but are not limited to: ABB, Eaton, Schneider, Siemens, WEG, Saginaw Control, Hubbell, nVent, and many more.

1. Is the configuration tools able to be syndicated to distributor websites to be “closer” to customers.

Yes, the configuration and recommendation tools are completely deployable to multiple systems including ERP, CRM, and eCommerce systems. We can configure solutions to account for global and local layers of preferences, product availability as well as site-specific sales analytics.

1. How does the system retain real-time inventory awareness when many manufacturers are built to order … especially in the switchgear and transformer segments where there are significant backlogs? I presume this is integration with the manufacturer MRP system and hence the data is only as good as the integration. The same issue occurs in lighting and other automation product categories.

We depend on the availability of feeds from our partner distributors, manufacturers and others. Availability logic can include product ready to ship, or we can determine availability based on certain “lead time windows” based on our customer preferences.

1. For the recommendation element, is local electrical code information taken into consideration, if needed? Can recommendations be overridden for customer-desired solutions?

Configuration and Recommendation options are based on compatibility logic, encoded human expertise and other logic rules as specified by the Compatio partner/customer. Recommendation options can be modified with options and guided selling choices to find options that best suit individual applications. Local electrical codes can easily be incorporated where needed.

1. I presume the knowledgebase is based upon the manufacturer’s technical spec sheets?

Most knowledge is derived from the manufacturer documentation. However, there are also other sources of knowledge including certification standards, electrical codes, and application experiential knowledge that comes from industry experts. All is captured and encoded to drive compatibility and recommendation logic within our system.

1. How are companies using Compatio to train their sales organizations? To train distributors? Does Compatio have recommended deployment / sales training solutions?

Compatio solutions actually decrease the amount of product training required where we offer solutions. The information that you might find only in manufacturer catalogs and websites can be placed at the fingertips or even embedded within the systems your company is already utilizing.

• How many distributors currently have access to Compatio solutions? How do they know they are using these solutions?
  • Can distributors partner with a manufacturer for development of the tool for their site(s)?

Yes. Compatio’s logic (both recommendation and configuration) can either span multiple manufacturers or center around a single-manufacturer portfolio of products, essentially at the flip of a switch. Therefore, from a distributor perspective there is flexibility to honor manufacturer partnerships and/or offer cross-brand compatibility. Manufacturer participation is helpful but not required to develop a suitable solution.

1. For the pre-built configurators, presumably these are brand agnostic and don’t tie to any inventory systems?

Our configurators handle (simplistically) two types of configurations. First are “systems” configurations consisting of any number of off-the-shelf components, for example a motor control system or panel board with breakers. Second are build-to-order configurations, such as large customizable switches or generators. Obviously the two approaches may also be combined, to configure systems that include both off-the-shelf and build-to-order components. Build-to-order configurators can be set up to be lead-time aware. Compatio’s configurators for systems of components can either be brand agnostic, or for distributors with exclusive arrangements, they can be brand specific. All Compatio solutions are inventory-aware to ensure that only purchasable products are recommended to a customer or included in a configuration. We use particular distributor product offerings, inventory (both in-stock and back-orderable), and other status feeds to render a “customer aware” solution. Nothing we do is “one size fits all”.

• How can distributors gain access to these for their websites?

Compatio’s solutions are designed to be readily integrated into any open digital commerce channel, for example an ERP or e-Commerce system. A set of standard integrations connect the distributor’s catalog, inventory and sales order history (to help optimize recommendations) to Compatio’s platform. Our front-end applications (recommender widgets and configurator app) are then installed into the distributor’s websites.

• Is it a SaaS hosted solution? Yes
  • If so, who retains the customer data?

Compatio does not capture proprietary customer data. We collect a “customer ID” (typically an entity number) and transaction ID in order to power our machine learning (what products and categories sell with what other products and categories) as well as our performance analytics and reporting capabilities. Nothing we collect could be used by Compatio to discover the “real identity” of a customer. We don’t need it and we don’t want it.

• Are there any liabilities that distributors could be exposed to for offering a configurator on their website?

Liabilities are consistent with current liabilities for any entity currently selling Electrical and Industrial Automation products.

• Does the site / tool include disclaimers?

We do offer disclaimers. Ultimately, the specific application of products in the electrical and industrial automation industries rests with the integrator, contractor or installer. Our disclaimers speak to this point.

1. What is the cost?

It varies based on the modules installed, number of skus, number of sales channels, and volume of business.

1. Whom to contact for more information?

For or to book a demo, please visit www.compatio.ai, or contact Shawn Yeager at sales@compatio.ai.

1. Can you provide information on what Compatio’s other services / products are and any distributor or manufacturer testimonials re these products or Compatio (as most in the industry have not heard of Compatio?

Compatio’s products are Commend 2.0 (our recommendation system) and Configure 3.1 (our configurator). Full CPQ, or configure-price-quote, will be released by year-end.

Yes, we can provide testimonials.

Thoughts

• If you are in the industrial segment or focus on the switchgear market, I’d suggest checking Compatio AI out to learn more. It could be functionality that could be beneficial to your customers.
• Ask for their testimonials to ensure that they are focused on the market segments that are important to you.
• Ask your customers “what content would you like on our site” and give them choices.
• If you’re interested in some of the research we’ve down, give me a call. You may also be interested in this article on improving Search on your website … another are your customers are interested in.