On this episode, Matt and Dave sit down to discuss why distributor marketing sucks and what to do about it. This is the first episode in a five-part series on distributor marketing best-practices. Today we're talking about how to better communicate your value proposition online, defining target markets, and building buyer personas. If you're investing in better online communication, you won't want to miss this episode.
Running a distribution business. Isn't for the faint of heart and neither this podcast. Join your Mary host, Matt Johnson and Dave dent. As they explore topics related to B2B e-commerce that will help you build a business that stands the test of time. So go ahead, grab yourself a pint and pull up a stool.
It's time for the distributor podcast.
Matt Johnson: We have a really cool topic we're going to talk about today. For those of you tuning in, we're going to start a five-part series on distributor marketing. And we're calling it distributor marketing sucks. And the reason why it's tongue in cheek, but at the end of the reason is because distributors traditional distributors, struggle with digital marketing and, using some of the more, digital communication channels.
Matt Johnson: So we're going to talk all about that. What are some best practices regarding your messaging, your communicating, your value proposition. Content creation, talking about the different channels that we need to be active on, how to communicate the value of your e-commerce site. And then how do you use the website and your digital marketing to attract new customers?
Matt Johnson: So it's gonna, it's gonna take a while to work through these things. So it's, be patient with us, but I think by the time we get to the end of these five, Episodes. We're going to have a lot of good material for any distributor out there. Who's looking to, better communicate with their customers and prospect of customers, online and hopefully there's a lot of tools and a lot of great info that we get to share along the way.
Matt Johnson: So before we get into that, let's go ahead and introduce the beverage of the hour. I'll let you go first, Dave, and then I'll share right.
Dave Bent: All right. Another nice, single malt, but I think I had this one before, but I do like it, the odd bag, Scottish single mold. Very good. Very peaty and good. Yes, there we go. So that's it. That's what I'm drinking.
Matt Johnson: Alright. Very nice. Okay. And I'm going with something completely different. Dave, as you get to know me, and as our listeners get to know me, I'm a man of many tastes and I'm a man of expensive tastes and that's part of my problem.
Matt Johnson: But, one of my favorite wines is, a wine called, Kamen. Okay. So it's a Napa valley wine it's made by the Wagner family Caymus. Specifically the 2016, the 2018 is pretty good, but it just to me, doesn't get any better than that. And it's at that price point, it's about $120 a bottle, sometimes you can find it for less.
Matt Johnson: And it's too expensive for me to get on a regular basis. So I found a really good alternative, and it's what I'm calling the cheap, the poor man's version of Caymus. If you can see the label, it's called conundrum and it's also made by the Wagner family. So it's the same family that makes Caymus, which is, if Caymus is like a 93 94, w rated wine. This is right up there. I This is like high eighties, low nineties wine. And this, you can buy at most local stores for like less than $25. So it's a really affordable, good bottle of wine. I highly recommend it. It's delicious, got like really rich cherry and chocolate notes. That goes great with, with, filet steak, filet potatoes.
Matt Johnson: That is just doesn't get any better than that. Here we go. I'm drinking wine
Dave Bent: time. I, I didn't know, but I love Caymus too, actually. I didn't know that was actually close, but yeah, it's definitely too expensive. So conundrum we're out of the conundrum. We've found the answer. Yeah.
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Matt Johnson: Okay. We have to sell a lot more websites to be able to afford, the Caymus. Yes. All right. So distributor market.
Matt Johnson: Sucks. Dave, why does it suck? Let's just, I want to talk a little bit about why, in particular, distributors traditionally, when I'm saying distributors, I'm not talking about, the online retailers who have done a good job of adopting technology and really the vast majority of their businesses through the website.
Matt Johnson: I'm talking about traditional brick and mortar. Distributors. Why is it that marketing is such an underdeveloped skillset? Do you suppose?
Dave Bent: I guess my take on that math is the traditional distributor. The ones who've been around, maybe several decades, maybe multi-generational it's business has been built on relationships, right?
Dave Bent: I know. I'm not saying that the new we've all read it, but the marketing was almost person to person relationship to relationship. And, the great thing about all of that is business was truly built on trust. And relationships, which is huge. And you can't be trust, but I guess, at least for me, anyway, when I think of today's world, there's so many more avenues to find product and find new partners from which you want to purchase.
Dave Bent: Then it's definitely, as we all know what I'm saying in the new here, it's moving away from just really the, the relationship piece. And how do you find new ways to engage new channels to engage? And that's where. I think marketing really kicks in, but I should say on this call him Matt's the expert marketeer here and our team.
Dave Bent: That's putting leads for us as well as helping distributors. So Matt, I'll pass it back to you, but that's just the kind of foundation for me of the,
Matt Johnson: It really is. I think there's a bunch of things going into it, but I think what you said, David is fundamentally the core issue in that you have.
Matt Johnson: What really is a sales centric organization, right? The traditional brick and mortar distributor sales centric, meaning that, all of the communication, all of the customer relationship is really owned at the sales level with the sales rep. And, of course in the past, like you said, that it's been tremendous because that.
Matt Johnson: That level of trust is built up. Of course there's a double-edged sword with that in that when your sales reps own the relationship and they own the customer experience, when they leave, oftentimes they take a bunch of customers with them. So that's, it's a double-edged sword in that regard, but I do think that, you said something that's interesting to me and I wasn't planning on talking about this, but you said trust, because trust is so such an important aspect of B2B distribution and yeah, we're living in a time when trust is at an all time.
Matt Johnson: Across our culture, across continents, it doesn't matter where you're at. In, in what distribution vertical you're in trust is eroding. Trust is eroding because we live in a time where, experts are continually questioned, right? It's hard to be a, it's hard to be a thought leader.
Matt Johnson: Or a, a trusted advisor today because, everybody thinks they can question everything, right? Like we have the right now, late August, 2021. There's like this raging debate in our culture about masks and vaccines and who knows who to trust. Nobody wants to put their faith in anybody.
Matt Johnson: Yup. And but that's a cultural, that's a deep rooted cultural experience. And I think it sinks, it sinks into, the industry in that it's really difficult to communicate trust. And so that's why you're never gonna, I don't think there'll ever be a time when distributor sales reps are, are no longer new.
Matt Johnson: Like it they're right. They're really critical to that particular, business model. However, what you're finding is that more and more of the end users are starting to question the status quo and they're looking for alternatives and that's when it's so important to be able to offer, a legitimate alternative to your competitors via your website and the way the acumen you communicate, on.
Matt Johnson: Yeah, there's a big shift happening. And yet we're really stuck with this huge workforce of sales reps and we, and distributors have invested so much into those, into that human capital that it's difficult to then now say, okay, now I'm going to change the way we've done it for 50 a hundred years. And we're going to invest in other channels.
Matt Johnson: Yep. So I think that there is, there's a little bit of an aspect too stuck to the status quo, but, I do think that, we, there is this really impending need to be able to communicate across multiple channels. And that's where, distributors are stuck because they're not sure how to, how to do that in a way that doesn't diminish.
Matt Johnson: The investment that they've made in those human resources, right? The sales reps and the relationship.
Dave Bent: Yep. I think maybe just feel, I think Matt too is, cause we've talked about the, the specific point in time and it's not exactly specific, but end of August, this last few months and no doubt the next six months, I think most of the industry in botanicals that we're in demand is exceeding supply.
Dave Bent: If you just think of the construction industry where. Manufacturers can't keep pace with the demand, which means distributors can't keep pace with inventory and the demand. And so people are actually looking for alternatives. Even if that trusted partner is still a trusted partner. That's, there's also this, how do you know, how do I find all 10 of them then as a distributor, if people are doing that, they're doing it.
Dave Bent: That they're basically doing that over the internet. And then, so how do you stand out from the crowd on the inside? What makes one distributor online or the messaging really different than it's just a massive shift from a trust relationship and service level that has been there. Rock solid. So there's also, there's just also a dynamic of the current time, not just the fact that things are shifting maybe online, but the current dynamic of the market.
Matt Johnson: Yeah, because you have, again, it's not as simple as putting it one thing, but you have you're right. You have the supply chain issues. So that's pushing more, end-users onto the internet looking for, additional sources for the materials that they're looking to procure. And then you have the issue of the changing, the buying demographic, where you just simply have millennial or younger, purchasing, employees who are out there. They don't accept like the standard way of doing business there. They're looking for efficiencies. They're looking for, speed, increasing the, the ordering cycle and, and incentives, like why should they work with you?
Matt Johnson: So I think that every distributor would say, I don't think anybody would say when somebody is out there searching, I would, I, everybody would say, I want to be. I want to be found. And the question is when they find your website, what are they going to find? So when it gets to the website, what is the message?
Matt Johnson: Why, what do you communicate clearly? What it is that you do? Do you communicate clearly who you help and how to work with you? And I would say. Many distributors sites look like they're closed for business. If you had a brick and mortar store, and all the lights were out, and there was no signage on the door, nothing. It was just like, it looked like an empty building from the road. Are you expecting that? Anybody's going to walk in there and do business with you. And yeah, a lot of the websites resemble that right there. They look like they're not communicating to anyone in particular.
Matt Johnson: There they're just there, they have information, but it's not clear on what a user or a visitor of the website is supposed to do. And that comes back to just messaging and communication. And I think that there's some really simple ways of improving that. One of the ways Dave, that we do it here, on the spin stack side of the business is we walk customers through a brand script exercise.
Matt Johnson: So if you've never heard of the word brand script of the term brand script, it actually was popularized by an author named Donald Miller. He wrote a book called building a StoryBrand. And this is a New York times bestseller, wildly popular in, in marketing and in business, circles. And the premise of the book is simply this, that you're not the hero, the customer's the hero.
Matt Johnson: The customer has a journey or a goal that they're trying to achieve. And your role in their story is to help them to guide them. To success and avoid failure. And what that framework does that story framework is that it allows us to boil down our value proposition in very clear language.
Matt Johnson: So that when a stranger, a visitor, a customer, even if you're using, even if you're a sales rep and you're going and approaching a brand new prospect for the first time, how do you communicate who you are, what you do and how you help in the fewest words as possible in the clearest way as possible, so that your customer, so you can remove all the obstacles from your customer to do business with you. And that's really the idea. Yeah.
Dave Bent: So the one, the well-known elevator pitch, you're only writing three floors. It's got to be
Matt Johnson: pretty quick. Exactly. Yes. So we, yeah, so we actually, so we help distributors do this and it's amazing to me when we go through this exercise, how many light bulbs come on?
Matt Johnson: Because so often in a traditional distribution business, we know the value that they bring, like maybe they're a specialist. And they work, with certain companies to provide, a certain, product set, right? Like maybe they're a safety specialist or maybe they're, a office supplies specialist.
Matt Johnson: And they know exactly the role they fill with their customer, but amazingly they struggled to communicate that. Because it's so tempting for distributors to want to be all things to all people. And so they, they are very vague about how they communicate, what they do, because they're afraid of losing some business.
Matt Johnson: And just a quick story, David, I'll let you jump in here. But so when we first were starting the agency business years ago, when you're a starving agency and you're brand new, right? Like you, you have the tendency to want to take on whatever comes your way. So if somebody says to you, Hey, I need a trade show booth.
Matt Johnson: Can you do it? Yes, we can. Yep. I want a flyer. Can you do a flyer? Sure. We can do a flyer. Can you design a website and build an app on my mobile phone? Sure. No problem. The problem with that is that when you start saying yes to everything, you stop being experts at anything. And so then you become like, okay at anything, but you're not an expert at something.
Matt Johnson: And then when you go to communicate what it is, you do. You're, you can be very vague, right? Because now you're not talking about a certain type of customer that you serve, you solve problems for, and you're not talking about a certain type of, services that you offer. And then the message gets all cloudy in the eyes of the customer and they don't get it.
Matt Johnson: And you lose them. So then it was, so then we had a sort of, an aha moment and we said, you know what, this, if we're ever going to grow, we actually have to get smaller. We have to define our target market and our target buyer personas, who are the people that we really delight with our services.
Matt Johnson: And what are the services that we're really good at? We can't do everything. Nobody can. So let's focus on the things that were really good. And go after the customers that we know that we can make happy. And when we did that, the business grew. And so that's what I feel like a lot of distributors need to think about is how do we define who we really want to have as our customers, and then go all in on that message.
Matt Johnson: Yes,
Dave Bent: I chose. I think I'm going to build on it. Anyway, Matt is, there's a lot of distributors out there and I've been in some of those businesses, possibly in the business where one of the, one of the value adds is viewed as if the customer is looking for a specific pot product skew. We'll go find it and we'll get it for them.
Dave Bent: And that there wasn't at some points in time. That was a differentiator. And so there's a lot of distributors still have that kind of model, the non-stock we can get anything. But I think that is being overwritten by the, you could go find it on eBay or on Amazon, we all can find product much more easily.
Dave Bent: And that idea of I'll get you. Anything you want is actually diluting from what do I have expertise. And I think the best distributors are now actually trying to bring services, not just product, but services and expertise. And again, not just face-to-face, but actually online, just rich product information, product installation, guide, safety guide.
Dave Bent: And so differentiate by expertise. I would say pretty much anything if you can, if you've got expertise and you can somehow bring that across online, I think that is, is huge.
Matt Johnson: Oh, absolutely. Yeah. It's it really is. And I was just was, we were talking with a distributor who we're working with and they're a safety distributor.
Matt Johnson: Primarily they do some in industrial, but they really doubled down on safety because what they do is they offer. Safety equipment repair and they offer, servicing and they offer training. So what they'll do is they'll come into a, an end users, work site or facility, and they'll take on the role of a safety manager or a safety director, and they'll teach the employees the best practices in regard to keeping themselves safe on the job.
Matt Johnson: And then they'll follow up. They'll follow up with a list of recommended equipment. So how beautiful is that you get paid for the service and then by the way, you make it so easy because all of the things that you've talked about in the training, or, in the repair side of the business, you then off turnaround and offer through the website.
Matt Johnson: And you can, so you can see why. I think, when you're talking about specialists, Y it is, it is important, but even if you're not a specialist, maybe so Walmart they're like Walmart, Amazon, their value proposition is you can get it. You can get anything, you can walk into Walmart and you can buy some electronics, a loaf of bread, birthday card, that's the beauty of it.
Matt Johnson: And that's why they're so successful. But if that's your value proposition, that's, then that's how you need to communicate it. You need to make it clear that, we have it, and we can get it for you. And it's just, I think a lot of times it's just the failure of communicating that value proposition is what makes distributors struggle with their website.
Matt Johnson: Because if the human brain is trained to go to, this is just evolution, right? This is just us saying we're going to take the shortest distance between a and B is a straight line. And so we're just trained to take the path of least resistance. And when you put up a website that requires somebody to think too hard about who you are and what they're supposed to do.
Matt Johnson: That's when you lose the prospect and that's when they bounce off of your website and go to somebody else's who can more clearly articulate what it is that they do and how they help.
Dave Bent: Yes. And I think by the way, I don't think any independent distributors that can any longer compete on, I can get it.
Dave Bent: That's why Walmart can, because it's a scale thing. So you cannot compete on that. And then maybe there's another analogy everybody can relate to. At least my personal view is best buy right? At one point, not that long ago, best buy was regarded as doomed. What did they do that they shifted their value proposition from being, let's say affordable, maybe even low cost or great value, electronics.
Dave Bent: As, as a product, but if you go in a best buy store, now it's all about the expertise because the products have become more complex. So I just moved house. I just put new TVs and I found system and found systems all over wifi. The whole thing is, how do I, which components do I put together? And by the way, can you come and install the thing?
Dave Bent: They shifted it to a service, a knowledge based offering, and the product is in a way of second.
Matt Johnson: But they got the product sale too, and they get the product sale.
Dave Bent: Absolutely.
Matt Johnson: Absolutely. Yeah, that's great. That's a great example. And I think that, at least in terms of this one distributor who we're talking about, the safety distributor, when it comes to marketing communication and what we're going to be talking about, it's much easier to advertise and market services.
Matt Johnson: That add exceptional value than it is to talk about product. It just is right. The product is a by-product, it's a product is a by-product of doing a good job of selling your value added services. And I think we get, we tease that out long enough, but I just to put a cherry on top, when you focus on a specific target market.
Matt Johnson: And you're focusing on a specific set of solutions for a specific set of customers. The marketing comes, becomes crystal clear and the message becomes crystal clear. And so we'd actually just did this Dave, and this is why I felt like it was really relevant to talk about. And so we, where we hired a sales person and.
Matt Johnson: This new salesperson needs to understand the business. They need to understand who our customers are, who our target markets are, who our buyer personas are. And, we had some buyer personas and we had done some, we had some markets identified previously, but it's good to come back to these things on a regular basis and talk about them as a leadership team.
Matt Johnson: And then go back to the drawing board and say, is this really our customer? Is this really our solution? And really prove that. With the market and prove it with their customers and prove it with each other. And so that's what we did is that we spent the last few weeks, doing some research on our existing customers.
Matt Johnson: We talked to, we had internal interviews and we talked about who is our best customers, right? Who are the ones that we would love to rep. And we did that. We looked at them, we interviewed them, we talked to them, we talked to our internal team who are the customers we want, who are the customers we don't.
Matt Johnson: And why is that? And then all of that information can be altered and diff, and help us define who are the we're the companies or the markets that we want to focus on. And who are the people in those businesses? That we know, and we know we can communicate to them and, and ultimately sell our solution.
Matt Johnson: And I think by doing that, we have not only created alignment or traction among our leadership. But now it's trickled down across the departments. Our customer success team knows who to who our personas are. Our marketing team does our sales team does. And what that allows us to do is to go out and attract and convert the best types of customers to help us grow the business.
Matt Johnson: And I really think that's an exercise that distributors to get a lot of value out of. And it's not that difficult, right? It's just a, it's just a series of phone calls, a series of, meetings to help you really narrow down who that, who that buyer persona is, what that target market is. And when you do that, Now you're when you're now your sales and marketing team are aligned and you can start tying the message in with what the sales person is saying.
Matt Johnson: And that's when you really start to fly and start to grow.
Dave Bent: Yes. Yeah, I think, cause we just, obviously you and I went through it together. You'd use me as part of the input to thinking through who those buyer personas. And, I think the other thing, We put some energy into I'm thinking about is actually how, who is the competition and how are they changing too?
Dave Bent: So who is, who's your best customer and why, who looks similar to your best customer? Like what is that and why? But I think the other thing, especially in distribution and independent distributors is the competition is shifting. So who are the competitors? And if you all losing business to Amazon, I call them a big box, heavy, online, major distributor.
Dave Bent: Why are you losing, what do you do about that? So it's yeah, who's an awesome customer. Why and how would we replicate them? And by the way, reflect on, are you losing sales? And if so, to who and why. What are they doing that you're not doing? Can you replicate that? Or do you need to, shift, shift, focus and go on a bit of a different vector to remain, remain relevant and important.
Matt Johnson: Exactly. Yeah. And, and what their weaknesses are, what's the chinks in their armor, right? Yes. David fell the giant Goliath. He wore all this armor. But there was a weakness. So even the biggest competitors, you might think I just the rollover and just accept the, the fact that they're going to beat me.
Matt Johnson: No, there, there really are opportunities, to rise above the competition. And really the thing that I've always loved about marketing is. It really is the great leveler. You know what I mean? Like it really is the level of the playing field because it allows a smaller company to perform, or at least be perceived as a much bigger.
Matt Johnson: A much bigger organization, right? And so if you do marketing the right way, you can come off to an end-user as being as competitive as, as professional, as, as a major national brand. So that's the beauty of it. And the beauty of the internet is that nobody, Nobody is going to know, right?
Matt Johnson: Like you go to a website and if they do a good job on their website, the playing field is leveled, right? Like you can look like Amazon. Why, is there any reason why you can't look like Amazon? If you have evolution next e-commerce you definitely can look a lot like an Amazon. But then you add in the extra value proposition of, and we do the services and we're local and somebody can come out there and hold your hand.
Matt Johnson: Now you've actually got something that can beat Amazon. And, a lot of people don't want to say that they roll their eyes and they kinda eh, not really well, you may not be able to compete on a supply chain level with Amazon or Walmart or whatever, but you definitely compete on a local level.
Matt Johnson: And you can do more than compete. You can win.
Dave Bent: It's actually the, I haven't called it this till we were told about it, but it's, it is the best buy Amazon thing. Again, remember best buy became known as the Amazon showroom. We went to best buy. And then you went and purchased it on Amazon that I don't think that's happening. That's what they reversed. You get expertise and you get implementation support. I didn't realize, but I became the preferred services member. So I had one issue. I called them they, and they answered right away that they basically. Took a different holistic view of what does the customer really want in totalis.
Matt Johnson: Yeah. And, what's fun is that on the, on our marketing team where we're working with some distributors to develop things like, a version of Amazon prime, where they can, they get a subscription, it's a low dollar amount and they get free shipping, they get additional rewards and stuff like that.
Matt Johnson: Why can't you do that as a small to medium, independent distributor? You absolutely. Can't. So there's lots of, there's lots of opportunities out there, and then, just when it comes to target markets, the one thing I'll say about that, Dave, is that I always thought of target markets and somebody might find this helpful. I think of it as like a three-legged stool. I never, whenever I organized them, we did this internally. You know what I'm talking about? When I think about markets, I don't want to have two markets because if one. Goes down or I'm on an ineffective in one, then I'm unable to pick up the business with the other.
Matt Johnson: I don't want to have more than three markets because if I have more than three markets than my attention, and my messaging gets diluted, I can't be as effective in all of those markets as I want to be. But if I have three, now I have the opportunity to future-proof my business, where if one of those goes down, I at least have the other two to fall back.
Matt Johnson: Yep. And I like the three legged stool approach because it allows you to be very specific with your messaging. And I think the more specific you are, the more contextual you are, the more effective you're going to be with, your, with your results. So if you go to our website, for example, you'll see that.
Matt Johnson: You'll see that it's simple, right? The idea is that we're trying to communicate the idea that, we help these few people and here's how we help them. And when you come to the website and you're one of those few people, you genuinely feel. Like you're in the right place. You feel like these are my people.
Matt Johnson: And that's, I think that's the vibe you're trying to come across with your website. You want your customers to land on that website and then go, these are my people. And, and that when you do that, you're effectively replicating that beautiful handshake trust experience that, distribution has been built on.
Matt Johnson: And you can do that through the web.
Dave Bent: Yes. Oh, absolutely. Absolutely. Probably another factor as the business evolves is loyalty. Traditionally has been built because of trust and maybe this is a topic for a whole other conversation and other podcasts, what are the tools to build loyalty online?
Dave Bent: Cause you, you touched a little bit on, the prime, Amazon prime and the prime service. Is a loyalty program effectively, right? It's consolidating things. So maybe it's a topic for another day now, but I think how do you go from loyalty built on trust to loyalty built online from what are the tools and techniques from a marketing and customer engagement perspective.
Matt Johnson: Absolutely. And we're gonna, we're going to talk about some of that too, cause we're going to talk about communication channel. In a couple episodes from now, next time, we're going to talk about content creation and, and there's lots of different types of content. So we'll get into that, and how to do it the right way.
Matt Johnson: I want to leave you guys. As we close up here with a few resources. That, hopefully are helpful to you. Number one is I mentioned the book building a StoryBrand, highly, I recommend that to everybody, who is a business leader, executive owner, building a, StoryBrand a great framework for thinking about marketing in a different way than maybe you've been taught.
Matt Johnson: The other thing is that women to share link. So I'll have a link in the notes for the StoryBrand book. I have a link in the notes about buyer personas. If you're interested in. Taking on that exercise, on your team, I have a really great article that you can take a look at, along with the downloadable worksheet so that you guys can, capture ideas about your buyer personas and your target markets.
Matt Johnson: And then the last, resource is the e-comm wheel of growth. It's an ebook that we've put out on our website and there'll be a link to it in the show notes. But the econ wheel of growth, takes into consideration all of the. Best marketing practices related to. Building, launching and growing a successful distributor website.
Matt Johnson: With that being said, I'll, I'll let you guys, take a look at those resources. And, of course, Dave and I are always available. If you have any questions, as you're implementing some of these ideas in your business, if you just want to bounce ideas off of us or, dig deeper, we'd be thrilled to talk to you about that.
Matt Johnson: All right. I think that's it for us today, Dave? Any card.
Dave Bent: No, because my drink ran out right at the end. So that's good. That's my closing. No, but it's actually still too early here on Pacific time for me to go get another one.
Matt Johnson: All right. Then we'll just have to say cheers to your growth and we'll catch you guys next time.
Thanks for Joining Us!
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