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).
Amazon’s – Next-Day; half-day; etc. – Ambitions
Amazon is delivering evermore (B2B) goods ever faster. Delivery for US Prime members was 2 days transitioning to 1-day (with 12-hours in big cities for a 24-hour ordering cycle). Then, what next?
But! Not all B2B customers want super-fast, delivery all the time for all needs. And, your net-unprofitable customers are not deserving of the service expense they currently leach. Why not first identify and meet the speed-needs of key (most net-profitable) customers and customer niches?
Distributor, Niche, Speed-Need Examples
- A niche of will-call customers wants to: place an order 15-minutes in advance of picking up the few SKUs needed for specific repair jobs. Upon arrival, they want to get in and out within 5 minutes.
To own this niche the distributor must have:
- a convenient location;
- one-stop-shop, in-stock fill-rates for…
- the target-customer niche’s product array needs;
- cross-trained personnel and
- a fulfilment system
– all to meet the 15 and 5-minute targets at peak rush times.
- Another niche of customers has a sub-group of their customers who want job quotes ASAP. But, this type of job requires goods that must be made and shipped from a factory.
A distributor figured out how to guarantee half-day response time for “price and delivery date”. And, often replied within 30 minutes. They dominate this lucrative, customer niche.
Your Best, Speed-Need Opportunities?
- Rank all customers by net-profitability. Note especially the ones who have repeated, drop-ship-order, quote needs.
- Sort the best customers into different niches of similarity
- Visit some to identify peculiar service metric needs common to the niche including speed needs.
- Invent the service value/speed capability.
Results: grow sales, order-size and rebates as by-products of customer-centric, service value solutions.
For More on How To’s:
Skim through my 12 webinar series .
Then, zero in on “plays” 7 and 8 in webinar #5!