Best, customer-profitability analytics provide many insights for distributors. A common opportunity is an accumulated sea of small, unprofitable accounts: Minnows! Typical group stats: 50% of all accounts that yield only 5% of the gross profit dollars on 18 – 30% of all transactions. Their cost-to-serve expense dollars greatly exceed their margin dollars for a big, hidden loss.
Continue reading 236. “Minnow Division” v Data-Free Beliefs
“Everyone is entitled to opinions. But, without convincing data, my opinion wins” (Many a CEO)
This Blog’s Theory: Picking-costs for popular, small-dollar SKUs is a huge, profit-improvement opportunity.
Continue reading 221. Theories About Losing, Small-Dollar-Pick SKUs
In General: Sooner is Better
When buying a commodity – with all factors being equal – quicker delivery or answers win.
Entire business niches have been created/dominated by fastest response (e.g. Dominos Pizzas). The fastest delivery is: already there! Think of – just in case, curated SKUs – stored in special cabinets or vending machines. (Who pays or shares in the cost of both the upfront design solution and inventory investment is negotiable).
Continue reading 219. The Needs For Speed Vary By Customer Niche
- Have you heard yet from an old-school buyer that: “Your competitor’s rep has resumed calls!”
- Will that be your alarm for resuming full-on, old-way selling?
- Are a few data points from old-school, lonely-buyers good market research?
- Has Zoomification increased some buyers “rep avoidance” preferences?
- How many – new, two-thumb, millennial, B2B – buyers want routine-calling relationships?
- Why not proactively survey key buying influences at most-net-profitable (and faster growing) accounts to find out how they want to resume the buying-selling “relationship”?
- What if some want, first: better, digital/virtual interactivity. Then, facetime as requested with someone different than the account’s traditional rep?
- Do buyers care about your traditional ways? Or: do they want and will get their new way?
- And, will pandemic-stressed customers be looking for ways to “buy better”?
Continue reading 215. When and How Will Channel Reps Resume In-Person Calls?
Definition: “a theory is a group of linked ideas intended to explain observations. The explanations are based on assumptions.”
Theories can evolve to explain and predict events ever better or not. Exceptions to the theory (anomalies) should spark new – investigations, tools, metrics, conclusions – that either improve the existing theory or supplant it with a new one.
Continue reading 206. Distributors: Upgrade Your Success Theories
Digital Disruption Lessons
As consumers, we benefit from the digital disruption that continues to march through different verticals. (Newspapers, Movies, Music Albums, Travel Agents, Cars, Stock Trading, etc.) But, the unchanging, traditional, players died while we gained.
Continue reading 202. Un-Bundle To Re-Bundle New, Digital Business-Models