Selling IoT May Require Investment, Sales Rep Training

The third part of this four-part article looks how the distributor can make use of IoT technology.

Although many value proposition scenarios exist, a distributor must consider the amount of technical knowledge it has across its institution. This analysis will drive how much of a role the distributor takes in selling the technology as well as supporting systems and analyzing data. In some cases, a distributor will need to increase its capabilities to become a consultative partner with manufacturers, says John Lerner, vice president of business development for GOJO Industries, Inc., Akron, Ohio.

“There could … be a spectrum of ways that distribution could engage with that sort of consultation and analytics,” says Lerner. “I think it’s up for grabs.”

Much of the capability development will depend on the relationship between distributor and manufacturer.

“The manufacturer is going to have to train the distributor on the technology and how to use it, similar to what is going on now,” says Keough. “The manufacturer typically knows how to use the product and trains the distributors on how to use it. And then the distributors, in turn, train their customer base on it.”

In many cases, manufacturers will need to train distributors, so they can grow accustom to IoT products they’ll be marketing and selling to potential and current clients. Depending on their involvement, distributors may be trained on installation, network connectivity and retrieving data, as well as the front-end functionality of the IoT solution, says Lerner.
 
“They’re critical partners, they’re an important part of our value chain, and we want them to be with us sort of lock-step,” he says. “This is really evolving. … We’re not expecting to just dictate what capabilities are going to be generated along the value chain.”

Another major consideration for a distributor is the amount of investment that it is willing to make in IoT. Many distributors are currently only willing to invest in salespeople to push the technology out into the market, says Baynum.

“But if you go into being a fully supported system, you would need installing, setup, data analysts (and) customer optimization,” he says. “You would need a full team to do that.”

Some distributors, however, are willing to make the investment. For example, one of SCA’s distributors became aware and interested in IoT through a chemical and a machine manufacturer that was placing sensors in its equipment. That distributor clearly understood that IoT was on the horizon and did not need to be explained the benefits of the emerging technology, says Baynum.

“We believe in partnering with our distributors on this solution — distributors that are tech savvy, innovative and on the edge as well, and understand the benefits of what the solution can be,” he says.