Who Will Control Millennial Buyers’ Clickstream In 2021?
Millennials are now: 19-36; glued to their smartphones; overwhelmingly Amazon Prime Members; and rating their Amazon App as most valuable and frequently used.
They want their Amazon B2C shopping experience on the job. 73% of all present, B2B buying decisions involve a millennial. 33% of final purchasing decisions are made by a millennial (and climbing!).
Whoever controls Millennials’ digital shopping journeys in 2021 can capture and monetize their clickstream data. Will all verticals that sell anything to Millennials be paying advertising fees to AMZ? Recent news suggests: not without a battle for eyes. Continue reading 112. Investment News for Winning at Cloud Ecommerce in 2021
Problem: Most Distributors Can’t Do Needle-Moving Change
B2B Cloud Commerce will be shaking business models in most channels by 2021. But, many distributors can only fine tune their past. Why? Check the fuzz factor on these four vitals: vision; strategy; innovation metrics; and can-do culture.
A Vision That Engages All Employees (and Stakeholder Groups)
What would employees think if you told them that: Continue reading 111. Re-Tune Your Vision, Strategy, Analytics, and Culture
In April 2015, Forrester Research estimated that one million B2B reps would be toast by 2020 due to digital disruption. They solidified this forecast in a subsequent March 2017 report. The findings were perhaps hyped in order to sell reports, but they are still a helpful warning to undertake an actionable assessment of your reps’ readiness for cloud commerce in 2020 and beyond.
How? Consider viewing your reps through the following analytical lenses to create questions for further investigation. Continue reading 106. Customer-Centric Sales Force Reinvention
The Present Facts
Amazon (AMZ) is building out the first value channel from end-users back to factories. And of course, this channel is a cloud-based digital channel. The customer-centric channel is comprised of 10+ intersecting, reinforcing, winner-take-all platforms starting with the 60MM Prime members in the U.S. (100MM+ worldwide). This monopoly capability will allow AMZ to sell into, and/or collect fees from, all verticals that sell anything to Prime members.
This cloud-based value channel has breakthrough advantages over legacy, product-push channel players. Hence, there is insane loyalty from Prime members and astronomical sales growth. Continue reading 104. Innovation Two-Step: Core Renewal and a Cloud-Based Value-Channel
This is one of the first insights that distributors who subscribe to Line-Item Profit Analytics are shocked to find out. Analytics reveal that:
- Naturally high-margin percent SKUs and customers are mostly net-profit dollar losers
- Gross profit dollars on small-dollar lines and orders are less than their cost-to-serve dollars
You can’t ignore small transaction size, or the variable service-people costs for customers with bill-me-later, paper-based trade credit. Continue reading 102. High-Margin Counter Sales Aren’t Profitable!
Imagine a distributor that has 10 outside Reps making 4.5 calls per day at an all-in cost per call exceeding $100. They must believe that the costs of these rep calls are worth the benefits. So, what cluster of beliefs guides those daily bets that add up to over $4500?
What beliefs lie behind your rep call cost bets?
Here are two belief clusters that serve as poles on a continuum. Where do your beliefs fall?
We’re supply-chain value creators
- All our reps are certifiably excellent at knowing which are the highest net-profit potential accounts
- All our reps plan and proactively pitch (with team help) the best, win-win solutions to these accounts that deliver a one-stop shop array of SKUs throughout a customer’s business and are executed with perfect, basic service metrics tuned to the customer’s needs
- These solutions lower the total procurement cost of the customer’s replenishment process, while boosting their uptime productivity using our goods and lowering our cost-to-serve expense as a percent of sales
- We also take care of all (new) product knowledge needs customers may have
- Our goal is to secure a bigger, win-win share of spend, if not a 100% partnership
- When we partner with the best growing customers, they grow us
- Our sales (and rebates) grow faster than industry averages due to customer-centric, service-value innovations for replenishment of commodities (which now comprise 90% of our sales)
We maximize “relationship value” to get economies of sales
- Our “good” reps make just-in-case, regular calls to befriend customers and react to their needs (often economic concession demands)
- More reps secure more active accounts
- Our goals are to push products to more accounts to grow sales, margin dollars and rebates.
- With all operational costs (seemingly) fixed in the moment, incremental GP-dollars will flow increasingly to the bottom line. These profits will hopefully grow faster than sales. (But, they haven’t!)
Relationship beliefs stopped working long ago
Financial survey data shows years of low returns for 90% of distributor participants. Isn’t it time to update your beliefs and analytics to improve your odds for better returns on your rep-call bets?
Business is like poker. You can’t have perfect information or consistent good luck. The winners are statistically a few percent better at deciding when to fold or hold; and at winning the hands they play.
Focus your best people-talent bets on creating more value for your biggest net-profit growth potential customers. Customer/SKU profitability analytics will upgrade your beliefs and improve your betting odds.
How? Contact me for a free, desktop session.