Building products distribution, in general, appears to be in disarray as a result of the great recession. Distributors and dealers are closing their doors, or at least putting their businesses up for sale. As a result, the relationships with builders, remodelers, plumbers, electricians, roofers, insulation installers, and general contractors to building products manufacturers that rely on them to sell their goods is at risk. Fewer distributors and dealers leads to lost relationships with these key purchasers. Ouch… or maybe not.
Recent reports of conversations with professional building tradesman (AKA research) show they are active participants in today’s social network. This makes sense since they historically rely on references and referral for new products, services, and ideas. Here is the opportunity for the building products manufacturers to overcome the disarray of distribution and mitigate the risk of losing these important trade relationships through social networking.
Manufacturers enter conversations with professionals within the social networks they are using most to begin to build direct relationships. The questions that these professionals once asked their dealer can be answered in a forum. Code updates that affect both the professional and the manufacturer can be shared through Twitter. Special insights and promotions can be shared on a Facebook Page. The same type of things manufacturers and professionals rely on distributors and dealers for can be managed online with an open and/or a controlled network.
Now we know it is not as easy as creating a Facebook account or beginning to Tweet. Research on where these professionals are talking about specific products is required for success. Having the know-how and a plan to be welcomed into these communities are critical. Understanding the legal implications and responsibilities of participating in social networks as a commercial entity requires a commitment just like that of working with distribution. The difference is the direct relationship you can create with the people that often determine your success or failure in the market.
The current distribution model continues to play a vital role in getting the physical products into the field and multiplying the efforts of the corporate sales force in an efficient and effective manner. While distribution works through the impacts of the recession, building products manufacturers have a real opportunity to increase success through developing direct relationships with the professional trade in a low cost, highly effective way.
Shawn Draper is partner and senior vice president at IMRE. For more than 20 years Shawn has been guiding the marketing strategies for national home and building companies, including multi-year tenures, prior to IMRE, with Andersen Windows, Weather Shield Windows and Doors, and Woodcraft Supply.
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[...] It’s more than that. Developing direct relationships with professional building tradesman reaps rewards and lessens your risk of losing these important customers. Read the article… [...]