PPB March 2016

59 / 102

MARCH 2016 • PPB • 57
DISTRIBUTOR BUSINESS STUDY
MARKETING
For 41 percent of distributors surveyed, new clients make
up 11-20 percent of their business and for 40 percent it’s
less than 10 percent of their business. As the graph illus-
trates below, the main source of clients has changed over
the years. It is interesting to see a 42-percent increase in
digital inquiries coming from email and websites and a
14-percent increase in inquiries coming from trade shows.
The survey also showed a significant increase in referrals,
with 92 percent of the industry using this as their main
pipeline for new clients. Fifty percent of those who
selected “other” use CRM, or customer relationship
management, as a main source for new clients.
NEW CLIENTS
“I get a lot of word-of-
mouth [referrals] but I
also make cold calls,”
says survey respondent
Donna Blackman, owner
of Donna’s Printing in
Spring, Texas. “Most
people hate cold calling
but I’m one of the few
who love it! I make up
bags and put some
goodies in them and go
and hand those out. If it
says “No solicitation” on
the door and I get
stopped by the leasing
manager, I tell him I am
not soliciting, I’m giving
away. That usually gets
me through the doors.”
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
cold calling
referrals from clientsemail/website inquires
business organization clubs
networkingdirect mailadvertisingtradeshows
other
today 2008
NETWORKING
CRM
50%
SOCIAL
MEDIA
17%
YELLOW
PAGES
ADVERTISING
6%
70 PERCENT
said they are not part
of a distributor network
Distributor networks abound, which
may offer administrative, billing,
marketing and buying support and
can consist of franchises, marketing
groups or buying groups. While
these groups appear to be in a
growth mode, a majority of distribu-
tors who responded to this survey
said they do not take part.
DISTRIBUTOR NETWORK
today 2008