PPB November 2019

a robust online presence is going to become crucial for all industry salespeople, regardless of whether they identify themselves as an “online distributor” or not. This gradual movement online is reflected by the industry’s largest and most established distributors. Most companies with tens or hundreds of millions in annual sales began with cold calls, feet-on-the-street sales and personal relationships, and they continue to use those tactics while also incorporating the newer technologies customers have grown to expect. “Have you seen the top distributor list lately?” Bonnet asks. “Putting the more agency-type businesses aside, most of the pure distributor players that appear on that list are promotional products companies with a strong online presence.” The 404s Of Online Distributors Like malware, chain letters and Rick Astley’s Never Gonna Give You Up , not everything is great on the internet. Ecommerce distributors face the usual hurdles that come with the promotional products industry, while also having a host of new challenges that are native to a digital environment. “To take a line out of Google’s anti-trust playbook, ‘the competition is just one click away,’” Bonnet says. Online, you don’t need to drive across town or make a half dozen calls to find what you want if your first destination comes up short—you just go to Google and click on the next link in line. Surviving as a digital storefront requires constantly staying one step ahead, not only of your competitors, but of the algorithms employed by search engines and social media. “You live and die by Google, and to some extent, Facebook. These are the two great gatekeepers of the internet, and your business can depend on the traffic these sources provide. In short, for some, your business is one algorithmchange frombecoming irrelevant,” he adds. Technical issues, from SEO to web design, are also much more pronounced when a company’s business is primarily online. It’s hard to believe that the iPhone only launched 12 years ago, and in that time, it ushered in a whole new world of potential sales—and potential problems—in the shape of the mobile web. “Mobile is a real challenge in terms of understanding the audience and having the interface, user experience and functionality mimic what users are accustomed to when shopping retail,” Paradiso says. From desktop to cellphone, the increased access provided by the internet can result in a corresponding decrease in customer loyalty. So much of traditional sales is based on relationships—relationships with a store, a brand, a salesperson. Once rapport is built, it’s easier to continue to shop with the same vendor, because so many questions have already been answered: you know who you’re dealing with, you know what you’re getting, and you know you don’t have to put in the work to create a new relationship. Online shopping blows up that paradigm. “The biggest challenge is creating a meaningful relationship with customers,” Denham says. “Creating those relationships online is very different than having the chance to visit face to face and create a personal relationship. The retention rate of online distributors is lower than the retention rate of traditional distributors. Online buyers tend to price shop more and do not value the salesperson as much.” In many ways, the online end buyer is an entirely different animal from the traditional client. They buy with a short-termmindset, they don’t expect discounts and they aren’t as receptive to consultative selling. “Since we are an ecommerce site and customers have a good idea of what they already want, it’s hard to suggest things,” Loui says. In the online world, the biggest advantage is also the biggest issue—the computer or phone screen between you and your customer. “Buyers buy from people they like,” Denham says. “A great salesperson has a huge advantage over an online distributor in keeping a customer as well as in the chance to create an initial connection.” Put another way, the grass is always greener. “I would say both models have their pros and cons,” Loui adds. “Neither is unfair, each of us is just doing what we are good at.” What’s Next For The Web The internet was built on curiosity and innovation. (And Sting CDs.) While predicting the next major trend can be a game of roulette, it is safe to assume that these core founding principles are going to continue to dictate the direction of technology, culture and commerce. “Businesses are compelled to constantly innovate because of intense competition, increasing customer demands and the ever-changing supply chain economics of this industry,” Bonnet says. “All of which have been propelled exponentially by technology and the use of data science to improve decision making.” Take a look at the trends happening in retail It’s hard to believe that the iPhone only launched 12 years ago, and in that time, it ushered in awhole newworld of potential sales—andpotential problems—in the shape of themobileweb. Online Distributor | FEATURE | NOVEMBER 2019 | 43