With overall demand contracting and companies spending less given the price of oil, MRO distributors are rightly looking for ways to get a larger piece of a shrinking pie. Consider this piece of insight on the Fastenal strategy from Modern Distribution Management:
"With its customers continuing to fight an uphill economic battle, The Fastenal Company saw tepid sales growth and declining profit in the second quarter. But the difficult climate also presents an opportunity for the Winona, MN-based distributor to further embed itself into customers' business by adding more on-site locations."
For Fastenal, more on-site stores and vending machines will help them get closer to the customer. While this, along with acquisitions, prospecting and new channels are all viable options, the easiest path to more wallet share is often with your current customers.
Take a look at this infographic which offers up industry trends, insightful statistics and tips for how to grow relationships with your existing customers. Other key insights include:
- How many distributors are exploring e-commerce strategies, acquisitions and new customers to spur growth.
- What the easiest path to organic company growth is, and how costly customer disloyalty can be.
- How industrial distributors are improving sales rep focus, preempting churn, and maximizing wallet share.
Hungry for more insight? Check out this article, it shares the story of an industrial distributor that was successful in getting closer to the customer.