The cornerstone of success for any distribution business is understanding and demonstrating your value proposition. This is essential to attracting new customers and retaining existing ones. I spoke about this in our recent AgoNow webinar on Targeting the Right Business, available on-demand.

Converting New Customers

Larry Davis, CEO
Larry Davis, CEO

The sales team makes up more than half of most distributors’ costs. This is not a small number. With such a precious resource, the key to success is taking a data-based approach to identify, target and convert new business. This process begins with three key elements:

  1. Understanding your value proposition
  2. Identifying customers that value that proposition
  3. Understanding the profile of those customers

Using data to target other prospects that are likely to value what you’re offering will pay dividends on the back end when you have a customer committed for the long haul.

Retaining Existing Customers

Once you know and can articulate your value proposition, following through on that value proposition is key to building customer trust. Consider these questions as a check:

  1. What did you promise to provide when you closed the sale?
  2. Have you implemented metrics that support your value proposition?
  3. Do your processes support and consistently deliver on your customers’ expectations?

Execute your value proposition to the best of your abilities and don’t be afraid to be open and honest with customers when issues arise.

(Read more about the importance of your value proposition in retaining customers in the AgoNow ebook: The Distribution Sales Playbook.)

Driving Your Value Proposition Home

Your company’s value proposition should be the driving force of your organization’s culture. Not only should your value proposition be consistently and continually communicated externally to the customer, it must be communicated internally to your team. Make sure your various departments are aligned.

Do you want to learn more about targeting and keeping the right business? Watch our recent webinar, The Distribution Sales Playbook: Targeting the Right Business, on-demand now.

Learn more about how AgoNow can help you foster successful customer relationships.