For the past two years, when it became clear that clients were eager to buy again, distributors’ concerns centered on everything except the sale: lack of inventory, late-arriving shipments and struggles with vendor customer service. Now in 2023, as buyers clamp down on budgets and institute hiring freezes, the focus returns to the quest to make the sale. It’s reflected in the quarter of distributors who named increasing their customer base as their top struggle. Other trends include the threat of Amazon still looming (though not as much as past years) and a push for clients to pay quicker. Sales-related stats in this year’s SOI paint a picture of an industry seeking growth and navigating the challenges presented by a post-pandemic world with flexibility and perseverance.
Hover over the bar charts to see more detailed State of the Industry statistics.
“Understand who you are as a company, what your strengths are and who you would like to serve. Once you know the answer to those questions, finding and gaining new clients can be so much fun.”Quianne Perrin Savoy, Moore & Moore Merch
(asi/275862)
0%
of distributors named “increasing the size of their customer base” as their number-one challenge – ranking first ahead of “remaining profitable under pressure to cut prices” and “recruiting and retaining well-qualified employees.”
PERCENTAGE OF CLIENTS RETAINED
(Distributors)
DAYS SALES OUTSTANDING
(Distributors)
44% of distributors say Amazon poses a significant threat to their business – the second consecutive year sentiment has dropped.
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The percentage of distributors who said referrals are one of their top three sources of new business. The next two methods are social networking (25%) and company websites (23%).
3 Tips for Generating New Business
It’s time to put a renewed focus on attracting – and retaining – clients. Use these strategies to land the sale and set yourself up for success.
1Be Targeted on Social Media
By now, everyone knows that social media is a powerful marketing and lead generation tool, but too many still use the “spaghetti thrown on the wall” method of seeing what sticks. Instead, it’s important to build a rock-solid game plan. Mitch Silver, vice president of sales and marketing at Printable (asi/299458), recommends identifying your target audiences and writing specific posts on LinkedIn with each in mind. “When inspiration strikes me, I try to write for each of those target audiences in batches,” he adds. “I will often use industry podcasts or articles to spark some thoughts.” When you’re crafting posts – whether for LinkedIn or another social media app – show off projects and capabilities that will help you attract the types of clients you’d like to work with, adds Quianne Perrin Savoy, co-founder of Moore & Moore Merch (asi/275862).
2Keep in Touch & Follow Up
Attracting and retaining a robust and loyal customer base is all about relationship-building. “We continually touch all clients via emails, telephone and social media as often as possible, but we find the most success comes from in-person visits with clients and entertaining whenever we can,” says Jeff Golumbuk, CEO/founder of Custom Logos (asi/173183). Don’t forget the importance of following up, whether it’s a gift basket and heartfelt note to say thank you to a client or just checking back in after an initial meeting, says Stephanie Quiambao-Flores, owner of Creative Tantrum (asi/525942). “I’m dumbfounded by the amount of referrals I get because someone just didn’t follow up,” she adds. “They went in, made their presentation or sent pricing, and that was it. I know life happens, but just touching base plays a huge role.”
3Cultivate Thought Leadership
You’re the expert on helping your clients with tangible branding, so share that knowledge in person and online. It’s a strategy that’s worked for Lou Elliott-Cysewski, CEO of Coolperx (asi/556047) and a member of ASI Media’s Promo for the Planet advisory board. “A majority of the people who come to us have found an article I wrote in Forbes or heard one of us speak at an event,” she adds. Leo Friedman, founder and CEO of iPromo (asi/229471), notes that becoming a thought leader helps to separate you from mere order-takers: “Clients gravitate to partners that consistently add value beyond the product.”
