If you could sell up to 20% more to your existing customers, what would it mean to your business?
The post Brexit marketplace is a highly competitive arena. A decreasing number of customers and increased promiscuity from buyers have wholesalers competing for a slice of an ever-decreasing pie.
In order to achieve growth, many wholesalers get drawn into competing on price. This, inevitably, is unsustainable. Others focus on improving their value proposition in order to create a ‘stickier’ brand or offering and thereby increase customer loyalty. There is no doubt about it; stickiness can change the game. It can transform business from a transaction-based model to a more lasting, mutually beneficial one in which companies improve their own revenues and help to improve their customers’ competitiveness.
The problem with stickiness is that it can be hard to create.
For example, a primary objective for wholesalers is to sell more to their existing customers. However, doing so without decreasing prices and subsequent margins is difficult unless your proposition is sticky. Now, sticky can be delivered by good, old-fashioned service. It can be achieved from training, NPD and range developments that increase choice. I know we’re not inventing gravity here and I know that most companies have a least paid lip service to some of these approaches, but that is often the extent of it.
The truth is, creating sustainable stickiness needs organisations to see the world through customers’ eyes. Otherwise, unlike gravity, stickiness just won’t happen.
Keep an eye out for Part 2 of this series to learn how to create a sticky value proposition from your trading terms!