If you serve customers, I know you will agree that trying to figure out what makes customers purchase is one of the oldest challenges in the business world. Which variables matter most and how can I, as owner of a business that survives on customer purchases, positively affect those variables more than my competition?
As a distributor with stores in a saturated market, these variables are more important to me and my business than they ever have been before. Those of us who have been around long enough can remember the days when we knew who all of our competitors were, from “Bob’s Driveshafts and Fishing Tackle” to the other dealers and distributors in town.
Today we have no clue who we may have lost a sale to because it very well could be a competitor from anywhere in the world. From a strategic standpoint, we have stopped trying to figure out who we are competing against and started focusing more closely on the variables that directly result in sales.
As this month’s Truck Parts & Service cover story looks at the factors that drive customer choice, I would like to offer a few of my insights on the variables that I believe affect where our customers purchase their parts.
I will not start by telling you the most important variable first, mainly because if I had that answer, you would be reading a best-selling book on sales management instead of a guest column. Half of the battle is figuring out which variables matter to which customers. Here, I will only skim the surface on the factors that I feel are important to customers in our industry.
Product availability quickly can earn your company the reputation of being the “go-to” place for parts and service. The problem with that is that one slip and that reputation is destroyed.
I define product availability as the ability to supply a product to a customer without hesitation. This means having the product in stock, having the proper business system to communicate a sale and having a delivery team capable of distributing the product to the customer – without hesitation.
We can all relate to that stomach-twisting feeling we get when we have to tell a customer his or her part is on backorder (mainly because many times we know that sale has been lost). What’s worse is when the product is in the store, but doesn’t get delivered on time. These product availability issues reflect on a company’s ability to serve customers. Success is dependent on our ability to serve our customers consistently.
The next variable I feel is important is value. What do you actually sell your customer? If you are simply selling them a 3030 long-stroke, you are missing out. Value-added selling is the act of providing more than just a part or service to your customers.
Do you offer no-cost training sessions during air brake season? Do you offer free trans-health reports after every automatic transmission repair service? At Power Train, we constantly look for areas where we can add value to the products we sell.
Our 24/7 Allison Transmission Tech Support Line is one example of adding value to our Allison transmission product line. As manufacturers continue to cut costs and provide less support to the end user, it is our responsibility as the distributor to step in and provide that support. Consumer research has shown that, even though it is not always tangible, a consumer is willing to pay more to gain value.
Many of you probably have expected to see pricing by now. I am a firm believer that price is a justified number and offering the appropriate mix of low-cost products and high-quality products is a must.
Our customers have proven that price directly reflects the quality and value they request. While having a competitive pricing structure is important, I think many times we get caught trying to sell on price and present ourselves as the lowest-cost provider. This mentality can destroy a company’s marketing efforts.
Our pricing should reflect the value and quality we offer. Some customers may purchase on price, and for that reason, a strong product mix is necessary. But for those who purchase on quality, price has less impact on their decision-making process.
As you’ve most likely noticed, each of the variables listed above are woven together into a tight net. One directly affects the others and vice versa. In order to positively impact your customers in their decision-making process, you must find the best way for your company to balance the right variables.
The challenge is finding the right ones. n
