Cleaning Distributors Share Customer Retention Strategies

Sanitary Maintenance (SM): Have you noticed a shift in customer loyalty in recent years, and what might be the cause of it? 

Moody: I think there have been some shifts, but some of the negatives have been counterbalanced by positive shifts. For example, the end user customer is now bombarded with so much more information, and their schedules are busier than 10 years ago. This is where a distributor who builds good relationships on the ground becomes invaluable in sorting through the confusion and offering the right solutions. Sometimes customers can forget how you saved them with an ice melt delivery during a snowstorm a couple of years ago, but it’s our job to use humor, positivity and good salesmanship to remind them of who gets it done.  

Attman: The pandemic helped good distributors learn to proactively communicate with clients. We’ve found that clients who work with proactive distributors have learned the value of a good customer/distributor partnership, and where that is in place, we have seen loyalty improve. Even more importantly, it drives more strategic and proactive conversations, which ultimately drives better results. 

Cadell: We have seen growth in customers who have an interest in buying from a local supplier, particularly one who has reps on the street that can assist them and help solve problems. I believe that in the business-to-business customer market, privately held family-owned companies continue to be bought up across all industries. Those of us who are left know that we need to support each other’s business in order to continue to survive and thrive against the mega companies.  

SM: What are the main competition threats when it comes to customer retention?  

Attman: Often, your biggest threat is yourself. If you bring solutions and look for opportunities to support your client’s business — whether it’s products, processes, or even leveraging other capabilities within your business community — clients typically remain loyal. 

Cadell: The biggest threat is price. When a customer gets fixated on the cost of an item or a budget line, it is harder to retain them because they are not interested in any value proposition or ancillary services. They just want a price, and that is where e-tailers find their way in. 

Moody: We have always been aware of both our competitors and new companies entering our space or the markets that we serve. I remember when Price Club (later to be known as Costco) was born, when Grainger launched JANI-SERV Supply, when Home Depot bought Maintenance Warehouse and grew HD Supply to later sell it off and buy it back again. I remember when Lowe’s started selling Rubbermaid’s Brute below our cost, when Staples added jan/san into their offerings, when CleanFreak launched their deep discount equipment online marketplace, and when Uline, Global and WebstaurantStore added jan/san to their online offerings. This is why we are experts at serving the markets that we pursue. Yes, we have less competition from the conventional jan/san distributors. We feel that we are in a better position to grow our market share.

SM: What are the main points of contention when it comes to potentially losing customers? 

Attman: We believe product availability should no longer be a challenge for any operator since the supply chain has corrected itself. We also believe that when price becomes an issue, the distributor is typically failing in other aspects of the business. 

Moody: Although I don’t like to dwell on it too much, our biggest loss of business volume comes when our customer outsources something that was previously done in-house, like their carpet cleaning. Of course, we then sell less carpet extraction detergents and the other complementary products that go with it. We continue to grow and supply more and more buildings, but we’ve had to get creative to increase our volume with new product categories.  

SM: What impact can staffing have on the end-user side when it comes to customer retention?  

Moody: Many of our customers count on us to manage their inventory at certain stocking levels. Our customer service team and account executives are well-trained in our simpler product offerings. We have never carried 40 different crank towels or toilet tissue options. We believe that as a good distributor, you pick your winning lineup of products and lead as an expert to help make it easy for your customer. 

Attman: In this ever-changing world, we recognize the significant demand for our client’s personnel. We also recognize that many operators are still short-staffed, and we feel it’s our responsibility as a distribution partner to provide human support and solutions to help clients optimize their business, whether through equipment serviceas well astechnology-based solutions. 

Cadell: As customers are trying to do more with less, having the ability to handle their delivery, equipment repair, inventory management, stock room refills are all great services that can help the customer save time, making the relationship more valuable.