Impact of Succession Planning, Consolidation on Customer Retention

SM: Changes to key positions in end user departments can also lead to changing distributors. What relationship-building strategies can distributors implement to ensure loyalty from customers in these situations? 

Moody: It’s important to have your customer become familiar with several team members. Sometimes it is when a sales rep is on vacation, or when a customer needs the expertise of another representative in our organization who has solved a particular maintenance issue elsewhere. I love it when one of our delivery drivers calls me or the office with an order from a customer. It reminds me of how important our entire team is to the customer experience. We want our customers to feel that they have an entire team working for them and that we appreciate them and know who they are. This makes the transition easier.  

Cadell: The key is to always have more than one point-of-contact for a client, so that if a key decision maker leaves, you have allies within the company that can assist in keeping you in place. 

Attman: We believe it’s always good to work with everyone in an organization. Everybody has a unique responsibility to ensure that the business is successful. As a distribution partner, it’s important to understand all moving parts of our client’s business. That way when succession planning occurs, we’re already working with people from within. 

SM: What types of services have you implemented that have helped to improve customer loyalty? 

Attman: Most recently, Acme Paper has completed ERP implementation with improved reporting capabilities, as well as enhanced online ordering systems.  

Moody: Years ago, we decided to sell more equipment, but as everyone knows, equipment can break down, so we ordered extra machines to own as loaners to help customers when they have a machine down. We keep our equipment offerings simple and stock a healthy inventory of parts to get customers back up and running as quickly as possible.  

SM: What impact has distributor consolidation had on end user loyalty, if any?  

Attman: As we continue to see consolidation, we also see customers looking for more face-to-face contact with locally, privately owned distributors. The importance of personal relationships with clients cannot be understated.  

Cadell: We have found that more customers have interest in working with us and building relationships because the consolidation comes with a lot of change compared to what they were used to getting.  

Moody: We feel that consolidation has created more opportunities for us as a local distributor with the ability and flexibility to make decisions that impact our customers positively. Customers don’t want to feel like their business volume has been acquired. Instead, they want to feel that their business volume is being earned. 

SM:Is there anything else you’d like to emphasize when it comes to distributors maintaining customer loyalty in today’s buying market?  

Moody: I think it’s very important for local jan/san distributors to build great relationships with their customers. Follow the ‘Golden Rule’ in the way that you operate and be proud of the professional service that you provide. Don’t be stuck with price-matching online retailers that don’t provide much service after the sale. Be profitable and be grateful to your customers and to your team. Your customers are counting on you. 

Cadell: As distributors, we must find ways to be where our customers are and offer our customers services that they are used to getting in their personal lives. For example, e-commerce sites that are user-friendly, automated emails that reach out and engage with the customer about products you have available, and promotions for items that not every customer might buy let the customer know that you have access to more items and competitive pricing. 

Attman: Acme Paper is a 78-year-old organization, and the foundation of our business is treating people fairly, bringing new ideas to the table, and always looking forward. I think those attributes are timeless and continue to lead us. 

James DeGraff, senior associate editor, has spent five years creating and overseeing content for Facility Cleaning Decisions, Contracting Profits and Sanitary Maintenance magazines, as well as CleanLink.com.