Supply House Times
  Home
  Subscribe
  Blogs
  Subscription Customer Service
  Updates
  Today's Top News
  Calendar of Events
  PVF E-News Archives
  Latest News
  Milestones
  Events Photo Gallery
  Web Exclusives
  Current Issue
  Cover Story
  Features
  Columns
  Products
  Industry News
  ASA News
  Industrial PVF News
  Bath and Kitchen News
  Resources
  myPlumbingPortal
  Premier 150
  Water Info Library
  AEC Store
  Archives
  Digital Edition Archive
  Free Product Info
  Ad Index
  B.I.G. Book
  Manufacturers' Rep Locator Directory
  Digital Radiant Flooring Guide
  Classified Ads
  Industry Links
  Market Research
  Showrooms
  Webinars
  Video Archive
  Special Collections
  Economics Week in Review
  Supply HT Info
  Contact Us
Search in: EditorialProductsCompanies
Learning From Failures And Successes
by Joan Adams
June 1, 2008

ARTICLE TOOLS
EmailEmailPrintPrintReprintsReprintsshareShare

Buyers don’t drop a supply house on a whim.


We learn more from our failures than from our successes. We rarely analyze our successes. If we did, we would quickly find out that luck, timing and a whole bunch of things completely unrelated to our talents were critical components in the making of the deal.

Failure tends to go the other route — we mull the loss of a sale, a client or a big deal over and over again. But we tend to look at every possible cause except our company and ourselves. We sort through all sorts of reasons: the economy is bad, the client is going through a rocky period, their new purchasing manager is crazy, etc.

It pays to examine both failures and successes, to really analyze “the whys” of some recent successes and failures. Ask yourself: Have you lost a client lately? Are sales flat with a client? Are sales going down with a client?

And here’s the killer question: Do you have some kind of “alert” system in place, such that you know when sales for any given client are going down or that activity has gone to zero for another client?

It is impossible to learn from failures if you don’t know about them. Track sales volumes by important customers every week. Sales that are trending down must be addressed. So you notice a decline with a big client. Now what?

Now, with your tracking system in place, you notice a decline in sales activity with a big client. And you would like to know why. Customers are notoriously fickle. They’ll go through the aggravation of switching suppliers when they think they can save some serious bucks.

The best way to find out why your customer dumped you is to ask them. This is very hard to do. Feelings on both sides can make for a very awkward conversation — one that isn’t terribly illuminating about the customer’s defection.

You need someone who is independent of your company to conduct the interviews. Someone with no history will learn far more about the defection. The interview will be informational, not personal. Here’s how you do it.

First: What do you want to learn from the interview? Write the interview script.

  • Did we deliver on time?

  • Was the billing correct?

  • Did we have what you wanted?

  • Were our prices competitive?

  • Was there a personality clash?

    Second: What about the competition? Unless your former customer is going out of business, they are buying from somebody.

  • Who are they buying from?

  • How does the customer experience compare?

  • Are the prices, services, terms better?

  • What finally prompted the switch?

    Third: Okay — you have your independent person and your script. Have your head of sales ask the customer if an independent consultant can call in the next week and interview the purchaser. Explain that the interview will last about 20 minutes and its purpose is to learn about the company’s experience with your supply house. Make sure you point out and underscore this is NOT a sales call and the person calling is NOT your employee. This is an informational interview.

    Fourth: Customers often complain, “They never took the time to understand my problem.” The interviewer must allow the customer airtime to recount his experience with your company. Buyers don’t drop a supply house on a whim. It takes a long string of slights, errors and non-responsiveness that finally culminates in moving to another supplier. Let the guy tell his tale of woe. You will learn far more about the customer’s experience than from specific questions.

    When you understand why you have lost customers in the past, you can go a long way towards losing fewer going forward.


  • Joan Adams
    adams@pierian.net
    Joan S. Adams has consulted for industrial clients for more than 15 years. She headed DITT, the consultancy arm of the French National Utility, Electricité de France, and was a managing consultant at A.T. Kearney. Later, she started Pierian, a consultancy that brings sustained and measurable success through operational excellence, customer focus, and competitive market strategy. Joan Adams speaks French and Spanish. She has worked on projects in Europe, Central America, Africa, Asia as well as North America. She has engineering degrees from the University of Wisconsin-Madison and MIT. She also has an MBA from the Wharton School. She can be reached at adams@pierian.net.

    |PrintEmail
      Comments (0)Post a Comment
     

    No HTML or BBCode in comments please.
     


    Did you enjoy this article? Click here to subscribe to the magazine.

























    BNP Media
    © 2010 BNP Media. All rights reserved. | Privacy Policy