PACK EXPO DISTRIBUTOR BEHAVIOR STUDY PACK EXPO DISTRIBUTOR BEHAVIOR STUDY PACK EXPO BEHAVIORS & HABITS BENCHMARKING STUDY

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1 PACK EXPO BEHAVIORS & HABITS BENCHMARKING STUDY PACK EXPO PACK EXPO DISTRIBUTOR DISTRIBUTOR BEHAVIOR STUDY BEHAVIOR STUDY Research & Analysis by Matt Reynolds, Director, Content & Research, PMMI Media Group

2 Introduction In a first-of-its-kind study, Packaging World and Packaging + Processing OEM surveyed 54 unique distributors on their attitudes and behaviors surrounding PACK EXPO. In a separate survey, we also collected responses from nearly 200 suppliers, all former or current exhibitors at PACK EXPO, on their habits and strategies going into the show. A third similar survey asked the same of more than 400 brand owners, all recent active PACK EXPO attendees. We seek to identify for exhibitors winning strategies and potential missed opportunities in show-related activities, based on their own reported habits as compared and contrasted with both attendee and distributor habits. Demographic snapshot of distributor respondents 20% Are you a distributor or manufacturer s rep? 80% Distributors Manufacturer s rep/sales Agent Do you distribute materials, machinery, or both? 69% Both packaging materials & machinery Packaging machinery 19% Packaging materials Do you distribute for one or more than one brand per category? 88% Multiple brands per category One brand maximum per category PACK EXPO Behaviors and Habits Benchmarking Study 2

3 Distributors attend PACK EXPO for you, the manufacturer and exhibitor 86% 75% 71% 71% Why do you attend PACK EXPO? 59% 47% 22% Learning about innovations and new developments Seeking new manufacturers to rep Meeting manufacturers I already rep Checking competitive product lines from manufacturers I don t rep Meeting existing customers Seeking new customers Working in my principals /partners booths Distributors indicated that they attend PACK EXPO to meet you, the OEM, material supplier, or other equipment manufacturer. They are less interested in customers and competitors than they are in you. Are you prepared for a conversation with an existing or new distributor? Could it open up a new region or market? Unquenchable thirst for leads 84% 73% 71% In what areas do you feel supported by OEMs, and what areas do you feel unsupported? 31% 57% 26% 49% 26% 18% 53% 16% 55% support could improve currently being supported Provide service/ support Provide leads Provide demos Supplied content & collateral Involves me with case studies in my religion Co-op marketing dollars Even if you re currently supplying your distributor with leads, he or she wants more. While 73% say that the manufacturers they represent provide them with leads, second among areas of potential support, 57% say that lead support could improve, tops among areas in which distribtuors say they could use more support. Distributors feels good about service/support and demos that their OEM partners provide. But at almost at the same clip that they report wanting leads, they also report wanting to be involved with case studies in the trade press (53%) while less than one in five (18%) are currently invited to participate. This is even more pronounced in a desire for co-op marketing dollars, with 55% asking for this kind of support, and only 16% currently able to participate. PACK EXPO Behaviors and Habits Benchmarking Study 3

4 Soft leads are welcome... 47% 39% What s your stance on receiving soft leads? 2% We like receiving them We are OK with receiving them Receiving and managing them is a nuisance We don t receive soft leads from manufacturers While a 47% majority of distributors is just OK with soft leads (largely because they might not know how to handle them), 39% like receiving them while only one respondent (2%) found them to be a nuisance. So the upside is great, and the downside is minimal. Distributors may find soft leads even more valuable if they are trained in best practices in dealing with and nurturing them. but distributors call them instead of nurturing until sales ready How do you follow up on Internet soft leads from manufacturers? How do you follow up on soft PACK EXPO leads? 16% Other 2% We don t follow up on soft PACK EXPO leads 2% We don t follow up on soft leads We follow up with an 4% We follow up with a phone call, ONLY if we know the prospect 66% We follow up with a phone call, even if we don t know the prospect 2% We send brochures via postal mail 10% We follow up with an Other 74% We follow up with a phone call, even if we don t know the prospect While distribution tends to like even soft leads, the majority follow up with a phone call, even if they don t know the customer. This is true of soft leads in general, and even more true of PACK EXPO soft leads. PACK EXPO Behaviors and Habits Benchmarking Study 4

5 Attendees say a well-tailored is the preferred follow up, while very few want a phone call 43% ATTENDEES What type of follow up do you prefer from vendors post PACK EXPO? A personalized referencing our conversation from the show 34% A generalized with attachments/ links to more info 27% I prefer no follow-up, I ll contact them if I m interested 19% A personalized mail/printed note 15% 14% A general A generalized mailed/printed brochure An organized site visit 11% 10% A phone call The previous graph indicates that 70% of distributors follow up on Internet soft leads with a phone call, a number rising to 74% with soft leads from PACK EXPO. And only 10% follow up via . But attendees report that a tailored or informative is the preferred method of post-show communication, while only 10% want a phone call. This is a mismatch between distributor follow up execution and attendee s preferred follow up method. But, perhaps a phone call is more effective regardless of attendee preferences. Consider discussing soft lead follow up practices and lead nurturing with your distributors. Exhibitors have decent follow up practices, but some could improve EXHIBITORS Which best describes your company s post-pack EXPO follow up system for leads generated at the show? EXHIBITORS How are soft PACK EXPO leads that are not sales ready handled? 11% We send leads to appropriate distributors, and ensure they send a general follow up 4% We send leads to distributors/agents, but have no means to check they are following up 48% We have a personalized follow up system in place that references the product and conversation had at the show 21% We don t have a centralized follow up communication system in place, we just let the sales people follow-up directly 16% We send a generic company that s not specific to what they talked about with our sales person 42% 15% Other We have a lead nurturing program where they continue to receive from us at least four times per year 43% We send a general acknowledgment, load them in our CRM but don t pro-actively anything with them after that The most preferred channel for follow up among attendees (43% reporting this), according to the survey, is a personalized . Failing that, a general ranked second, but keep in mind that links to more info or attachments with more info are preferred over a generic . But most distributors are calling all of their leads on the phone, not ing. Again, it might be worth a conversation with your distributors on soft leads, sales ready leads, and how to nurture or follow up. Of note, 43% of exhibitors themselves don t do much with PACK EXPO soft leads. PACK EXPO Behaviors and Habits Benchmarking Study 5

6 Distributors want to be involved in case studies Would it be helpful for your distribution business to be involved in case studies, applications stories, or other testimonial editorial? 0% Not very helpful 49% Somewhat helpful 51% Very helpful But suppliers don t have systems in place to collect case studies We don t have a formal system in place 58% EXHIBITORS How do you convince potential customers to participate in case studies, application stories, or testimonials? We wait until after the installation or implementation is off the ground to approach customers about a case study We bring up participation in case studies as we see successful installation or implementation happening We offer a product discount to customers willing to participate We offer a reward (service call, free maintenance, training, etc.) to customers willing to participate We don t write participation into the contract, but we do bring up possible case studies early in the process, often as or soon after the P.O. is signed 10% 9% 25% 34% We write participation in case studies into the contract 5% Even though case studies are valuable, and exhibitors want to be involved, a small minority of exhibitors have a formal case study collection system in practice. And those that do have a system tend to wait for a completed installation before broaching the subject. Few of the exhibitor respondents proactively talk about case studies early in the sales process, which is recommended. While some end users may be reluctant to share their experiences, you can sweeten the pot with incentives like extra training, discounts built in for participation in a case study, aftermarket incentives, or service certificates. From an editorial perspective, case studies are high value testimonials, and as long as they aren t overtly promotional in nature, they run for free in trade publications. PACK EXPO Behaviors and Habits Benchmarking Study 6

7 What can PACK EXPO exhibitors (materials or equipment suppliers) do to better support their distributors? ALL OF THE RESPONDING WEIGHED IN, AND THESE WERE THE CHIEF SENTIMENTS. 1 I WANT MORE LEADS. As previous charts indicated, leads are the name of the game for distributors. 10 of the 54 answers centered around leads Our partners do the best first-step support by putting the lead in our hands. Follow up support once the lead is qualified is also done well by our manufacturing partners. Leads, leads, leads. 2 EXHIBITORS NEED TO IMPROVE THEIR VIDEO LIBRARY OR ONLINE PRESENCE. Videos and webinars seem to be gold for distributors and 9 out of 54 specifically said they need to be able to direct their customers to more info about your product. A robust web presence with videos or recorded webinars is a big plus. Videos of different machine applications are always great to visually see I feel is the best and quickest way to show customers. Make videos. Recorded webinars to watch at convenient times are helpful. 3 EXHIBITORS NEED MORE MARKETING MATERIALS AND IMAGES. Out of 54 respondents, 9 specifically talked about marketing support, customizable brochures, literature in which they can attach their names, etc. Provide images that I can use on my website and brochures. Offer literature with dead space where I can add my company information. Marketing support. Right now, our manufacturers can do a better job providing me with pictures to market their products. This is especially true for machinery that I look to market via blast campaigns and our website. 4 5 NEED TRAINING. 8 respondents talked about the need to be better trained on the suppliers products. Technical training to our sales force. Training and MFG rep support. Better training. ARE LOOKING FOR IMPROVED COMMUNICATION AND PRESENCE. 7 respondents asked for better communication and more contact. On-site support is always appreciated. We suggest our companies represented, have more contact with us. Not only when there is potential clients, we need a continuous support. PACK EXPO Behaviors and Habits Benchmarking Study 7

8 Get your distributors to back you above others WE ASKED DIRECTLY: WHAT COULD INCENTIVIZE YOU TO SPEND MORE TIME OR MORE EFFORT ON ONE BRAND OR LINE OVER OTHERS WHOM YOU REPRESENT? 1 WANT CUSTOMER SERVICE & SUPPORT, INCLUDING FIELD SERVICE. These are three different things, but for our purposes, they were sufficiently similar to one another, and separate from other categories, to warrant a single grouping. This category had 18 mentions among 54 respondents. The before sales and after sales support is paramount. In the end getting a customer and keeping them happy is the most important factor in a successful installation. Sales support/follow-up tech support. Knowledgeable and friendly regional manufacturer reps that follow through on providing info and helping to spec parts in a timely manner. Having a rep that is engaging and willing to make calls in the field. 2 AS EXPECTED, THE BOTTOM LINE IS A HUGE MOTIVATOR. Distributors want to see improved ROI based on price, profit, incentives, discounts, etc. This received 11 mentions from the 54 respondents. 3 GOOD BRAND NAME ASSOCIATED WITH GOOD PRODUCT QUALITY. Many respondents emphasized that repeat sales are the best sales, so a good quality product that customers return to and trust goes a long way in earning distributor efforts. Percent of profit increase or Higher ROI of my time! Number one is profit margin. Larger discounts. Shared costs (i.e., higher discounts) for demo equipment. Superior equipment design and validation that will not have issues in the field. Better functionality, name recognition, proven results. We are commission sales reps, so we follow the money that gives us the repeat business. 4 5 MANUFACTURERS WANT MORE LEADS. Mentioned 8 times among the 54 respondents as a reason a distributor might favor one brand over another: Higher volume of leads. If I get enough leads, cover larger area, that would help a lot. Better/more leads! SOME OTHER IMPORTANT FACTORS... The following were also mentioned more than once. Is stock available, and are lead times good? Do they do marketing co-op, or provide great marketing materials? Do they have consumables or an aftermarket business? PACK EXPO Behaviors and Habits Benchmarking Study 8

9 Conclusions ATTEND PACK EXPO FOR YOU Distributors indicated that they attend PACK EXPO to meet you, the OEM or other equipment manufacturer. They are less interested in customers and competitors than they are in you. Are you prepared for a conversation with an existing or new distributor? Could it open up a new region or market? ATTENDEES PREFER A PERSONALIZED , DON T WANT A CALL Attendees prefer follow up in the form of an detailing what you discussed at the show. Failing that, an with some relevant links or brochure attachments are good options. LOVE LEADS, AND NEED HELP IN MARKETING Distributors want the OEMs for whom they distribute to provide more leads. They also need support in marketing. They indicated they would like marketing co-op dollars, and are eager to be involved in case studies. EXHIBITORS LIKE ATTENDEES PREFER Post show follow up done by exhibitors tends to be aligned with attendee preferences. 64 percent are sending personalized s referencing the show conversations, or at least sending a nonspecific . Another 11 percent send the leads to distributor. SOFT LEADS ARE FINE While of distributors do not receive leads from suppliers, practically all of those who do are, at minimum, OK with receiving them. ALMOST ALWAYS CALL THEIR SOFT LEADS 66 percent of distributors call their soft leads, and 74 percent call soft leads specifically from PACK EXPO. Attendees prefer an , but perhaps calling is more effective. Consider discussing soft lead follow up practices with your distributors. TOP FIVE WAYS TO GET A DISTRIBUTOR TO SPEND MORE TIME SELLING YOUR MACHINES: 1. You have to have great service/support. 2. Your products help their bottom line. Improved ROI can come via discounts, incentives, good pricing/profit margin. 3. Name recognition of a quality brand and product sells itself. 4. You provide good leads. 5. You have short lead times and product in stock. TOP FIVE WAYS TO BETTER SUPPORT YOUR DISTRIBUTOR: 1. Give them more leads. 2. Have a strong online presence and video library. 3. They need more/better marketing materials. 4. They need more/better training. 5. They want better communication, more frequent interaction, and a physical presence whenever it makes sense. Methodology PACK EXPO Behavior Study Series In a series of online surveys conducted in July 2016, the PMMI Media Group asked confirmed PACK EXPO attendees end users of packaging machinery and materials about their approach to PACK EXPO. After filtering to remove supplier responses, and removing responses of those who indicated they have not attended a show in the PACK EXPO family in the last two years, we arrived at a highly representative data set of 284 qualified Attendee respondents. We also asked PACK EXPO exhibitors suppliers to CPG, personal care, and food/bev manufacturers about PACK EXPO pre-show marketing habits. After removing those who have not recently exhibited, we arrived at a response set of 205 qualified Exhibitor participants. Additionally, 54 qualified Distributor responses were collected. The preceeding reports and conclusions are based on these three surveys. PACK EXPO Behaviors and Habits Benchmarking Study 9