by 37% and neutrally by 41% of the customers taking the survey. Of the remaining 22% of the respondents, 12% viewed cold calling somewhat positively and 10% viewed them very positively. Taking these three methods together
and discounting neutral responses, the data indicates that the preferred method of communicating during an initial sales pitch is face to face. E-mail solicitations evoke nearly as many negative reactions as they do positive, and cold calling is the least favored method of being contacted when discussing new business. This was further supported by supplier response to success rate questions. When asked about the effectiveness of these methods, 83% cited face to face communications as being most effective. Digital communications was ranked second at 15% and cold calling was least effective at 3%.
Finding New Suppliers
Industry customers were asked where they were most likely to learn about potential suppliers. Referrals were the top rated answer with 34%, followed by trade shows at 32%, websites at 23%, printed materials at 6% and all other forms accounting for 5%. Good referrals come as a result of
excellent performance with existing customers, although this is not generally expressed in new business development
®
strategies, it is imperative that suppliers never lose sight of this fact. This is a relatively small industry, and the diversity at industry events demonstrates that people are talking. Suppliers need to make sure that their customers have favorable things to say about them. After referrals, trade shows were
the second most likely way in which a customer will initially learn about an industry supplier.
As it is the supplier’s
decision as to whether they choose to exhibit at trade shows, we felt it important to assess the effectiveness of these types of activities. Hence, we posed the question, and 92% of the customer respondents indicated that these events have moderate to strong influence over future procurement decisions.
Characterization of the Relationship Suppliers were asked how they would characterize the relationship that they have with their current customers. There were no negative responses to this question, and only 13% characterized the relationship as neutral. The balance, 87% of respondents, characterized the relationship as cooperative and supportive. To develop a further understanding
of the relationship, suppliers were asked what customers like most about their company, 51% of the respondents cited
quality, followed by 47% indicating that their relationship was most valuable to the customer. When asked what customers like least about their companies, 52% of suppliers responded that pricing was least desirable to the customer, followed by 36% indicating that delivery was negatively perceived. In comparison, customers were
asked what was important to them, they ranked product quality first, with 57% of the respondents indicating this. This was followed by supplier relationship at 21%, price at 12% and delivery at 10%.
Conclusions Interestingly enough, it is impossible for me to draw specific conclusions and make recommendations on an industry- wide basis, as each company is different and has different practices. The only recommendation that I could make is that our supplier take a close look at your existing business relationships and your business solicitation practices. Ask yourself if these are in line with survey results, or better yet, ask your customers what their preferences are. It is up to you as to whether these
results influence how you further grow and develop your business, I clearly see one thing. That is the importance of how your customers and prospective customers view you is imperative to your success.
February 2018 ❘ 9
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