matt_dwight, Author at Precision Corp

StraightTalk with Mark Jackmore

Recently, CEO Mark Jackmore sat down with Jeff Cross, Media Director at ISSA, to discuss data insights and analytics in the B2B world. Listen below or read along to hear their conversation.

Staying Ahead in an Ever-Changing Market

In an industry as dynamic as ours, maintaining a forward-thinking approach is essential. Throughout my career, I’ve witnessed how businesses that continuously innovate and stay attuned to their customers’ needs are the ones that thrive. At Precision, we’ve proudly partnered with B2B distributors, suppliers, and wholesalers for over 20 years, helping them harness the power of their data to drive growth and success.

Accelerating B2B Digital Transformation with Data.

Accelerating B2B Digital Transformation with Data. Fundamental shifts in the B2B economy are causing businesses to accelerate their Digital Transformation journeys. From increased competition, to supply and demand challenges, to the emergence of eCommerce, manufacturers and distributors are feeling the need to become more agile and innovative to remain competitive. Embracing the digitally enabled world is the starting point and that making data matter is the way to accelerate forward. Fueling the journey with big data provides a truly digital roadmap to transform organizational processes and improve customer experiences. Digital is the new starting point Digital transformation is key for companies to remain competitive, grow, and thrive in today’s complex B2B ecosystem. The good news is we are seeing increased signs of more B2B companies on the digital journey (in some cases, leading from the front) and evidence of B2B market channels modernizing their customer experience. B2B consumers are demanding a more modern buying experience, and the most ambitious organizations are responding by re-setting the age-old question: how can we delight the customer with an exceptional and personalized experience? Organizations are starting to shift their historic, singular focus from customer type (aka vertical) to digital maturity. This is an evolution (not a revolution, discarding vertical strategies) where the desired customer experience comes first, followed by developing tactical plans at the customer vertical level to achieve growth and productivity targets. Getting to the next Digital Level Getting to one “connected customer experience” requires a digital roadmap to gauge a company’s current position, to digitally mobilize internal ranks, and to create the digital ‘wow’ factor with customers. Applying the infamous highway metaphor, here are some gears to consider when ramping up: 1. On Ramp – Making the business case for digital investments – Defining new customer journeys via digital pathways – Specific investments in digital ‘up-skilling’ for sales & marketing depts. 2. Accelerator Down – Mapping of digital processes – Platforms beginning to modernize – Operations beginning to digitize (enabled by platform modernization) 3. Interstate Road Trip – Data ‘at work’ at a department level – Integration of digitized operations: digital connecting the organization and for one connected, customer experience – Use of emerging technologies to embed data into revenue growth plans, equipping sales and marketing teams – Digital technologies and data are key components to digital transformation success. Let’s explore why. Fueling Digital Transformation with Data: Data is a key pillar for digital transformation because every interaction in the digital world generates data. This data helps create baselines and benchmarks for the transformation journey and provides indicators of progress. Despite this prevalence of data, according to Forrester, “Firms make fewer than 50% of their decisions based on quantitative information as opposed to gut feeling, experience, or opinion.” The value of big data in digital transformation comes from the ability of an organization to combine both, extracting useful information from data to create digital business agility. Data-driven insights help business leaders: • Make informed, fact-based decisions • Be hyper-aware and prescriptive with operating models • Execute quickly with trust and confidence Leveraging data and insights about customers and sales channels are also key components of digital transformation. Data analytics allows businesses to have granular information about their customers, which can be used to implement changes to meet the future needs and expectations of their customers. Winning Digital Hearts & Minds In a world that is increasingly digital, B2B companies must embrace Digital transformation to adapt to change and remain competitive. Digital-first companies are digitally transformed companies, so starting with a culture of adoption is key. You may be asking: What is the right digital readiness assessment for my organization? How do I improve digital adoption? At Precision, we know the roadmap can be overwhelming, as it spans leadership, sales & marketing, technology, innovation, and data. Finding the right partner can help tip the scales in your favor, winning digital hearts and minds and charting the path to an enhanced customer experience. Related Blog Posts StraightTalk with Mark Jackmore September 27, 2024 Recently, CEO Mark Jackmore sat down with Jeff Cross, Media Director at ISSA, to discuss data insights and analytics in the B2B world. Listen below … Learn More Staying Ahead in an Ever-Changing Market September 4, 2024 In an industry as dynamic as ours, maintaining a forward-thinking approach is essential. Throughout my career, I’ve witnessed how businesses that continuously innovate and stay … Learn More Accelerating B2B Digital Transformation with Data. September 3, 2024 Accelerating B2B Digital Transformation with Data. Fundamental shifts in the B2B economy are causing businesses to accelerate their Digital Transformation journeys. From increased competition, to … Learn More Load More

Numbers don’t lie. But what are they trying to tell you?

Numbers don’t lie. But what are they trying to tell you? There are such things as immutable truths. We know. Hard to believe in a world that’s been shaken, more than a little, by a tiny virus. In a way, that upheaval is proof of one immutable truth. Change. Look anywhere you care to in the universe. Growth or decline is a result of change. Makes no difference if it’s the lifecycle of a star or the grass in your backyard. They flourish or fail because things changed. With accurate analysis, you can figure out why. That brings us to another immutable truth. Data and numbers don’t lie. Analysis of change reveals facts. But, what do these two truths have in common for your business? Where Data and Change Intersect In business, brand growth or decline is also the result of change. But do you know what’s changed in your business that’s had a positive or negative impact? Organic business growth or decline is generally the result of 3 key factors: 1. Interest: the “why” that drives customers or employees 2. Intensity: the rapidity of implementing behaviors that drive business growth 3. Insights: key ideas that open the flow No one goes into business lacking interest. Everyone wants to make money. Serving customers is the path to profit. And, business seldom lacks intensity; the desire to be there “firstest, fastest, bestest.” But businesses, especially those in decline, often lack the insights needed to recover or grow. This is where data and change intersect. Analyzing the data in hand, to create the insights needed to prosper. Change and grow. Stay static and die. Asking the Right Question So, let’s define “insight.” Insight is that “aha” moment when analysis of available information adds up to “2+2=4”, and begins to reveal a solution, or a strategy, to address issues or opportunities. Insights, taken to action, become a rising tide that, as Winston Churchill said, “raises all boats.” But how do you generate these insights? It starts with asking the right questions. Sticking with the wisdom of mid-twentieth century minds, Albert Einstein said. “If I had an hour to solve a problem and my life depended on the solution, I would spend the first 55 minutes determining the proper question to ask. Once I know the proper question, I could solve the problem in less than five minutes.” Insights into business dilemmas or opportunities are no different. The facts are the facts. It is important to understand what the facts tell you, but perhaps even more important, ask “why are they telling me that?” In all probability, you have a great deal of data at your disposal. Businesses spend billions on CRM software. Your data will reveal much. Sales are down. Customer satisfaction is down. Customer loyalty is down. But “Why?” That’s the right question. Using Churn as an Example For example purposes, let’s apply this thinking to a common business problem, especially in B2B. Customer churn. Churn is a topic that means many different things to different roles in the organization. So, as a best practice companies must first determine how to measure churn consistently within their organization. A common definition for customer churn is cited as the number of customers who stop doing business with you during a given timeframe. We’ll oversimplify here, but one of the next ways to tackle the business problem is to explore is a timeline comparison. “Where were we when decline started?” “Did we change something?” “Did the competitive landscape change?” Important questions that can lead to insights. But, sometimes, the solution isn’t that simple. Your data can tell you what your problems are, insights can tell you why. Sadly, churn is often driven by a lack of understanding customer wants and needs. The root cause? Lack of closely monitoring and understanding data. The data around customer behavior is not being used systematically to increase customer loyalty and reduce churn. That’s why Precision recommends a different, more effective standard and methodology for churn: customers whose sales have dropped by more than 75% vs. prior period. Using this definition, a churned customer is the same as an at-risk customer is the same as a lost customer, heightening the focus on retention of at-risk customers. Then rather than utilize gut feel to solve for churn, statistically modeling can be applied to look at the customer behavior, demographics, market basket, and more to factually determine the root causes of churn and decrease in customer loyalty. Implementing the 1-2 Punch: Let’s face it, one of our most valuable sales and marketing yardsticks is lifetime customer value. Stated differently, it’s a lot more profitable to keep business than to go out and try to replace it. So, what’s the answer? The answer may lie in contracting with pros who can help with Marketing consulting and Data analytics to get to your “2+2=4” threshold. From a marketing consulting perspective, one of the first steps may well be market research. Remember, knowing the what’s of customer behavior may not be the same as the why’s. You know your situation and have some guesses, but relying on guesswork is a poor business model. Insights from customers will lead to marketing and sales solutions that address customer behavior, perception, and preference. That what marketing consulting firms do. From a data perspective, you can benefit from professional expertise dedicated to data analytics. Data interpretation is an art of nuance. Like forensic accounting, a solid analytics pro can filter data in ways honed by experience. uncovering kernels of truth, revealing facts to lead to insightful questions to ask your users. Remember, numbers don’t lie. But you need to be able to connect the dots of the story they tell. Used together, marketing and data intelligence are a powerful 1-2 punch in addressing business challenges. You get both insights and solutions. But remember, in a changing world, asking and answering questions, and reviewing insight and strategy, can’t be a one-time thing. It needs to be an ongoing, integrated process. One designed to keep the lifecycle

Data-driven Essentials to Drive Post-Merger Value

Data-driven Essentials to Drive Post-Merger Value Mergers and acquisitions are a hot topic in B2B distribution markets, with distribution and supply M&A volume predicted to continue to rise in 2022. With volume increasing and resources constrained, leveraging data to drive post-merger value is critical. For example, according to a recent PwC article published by Industrial Distribution, the impact of the current supply chain crisis, pending policy changes, and the amount of available capital means Industrial Supply M&A will continue at a brisk pace well into the new year. This will afford businesses the opportunity to transform, grow, and create value amongst all the COVID-related challenges and disruptions the industry has experienced. Yet research suggests that one of every two post-merger integration (PMI) attempts is categorized as poor or failing. This failure rate is concerning given post-merger integration is critical to realizing deal value. At Precision, we know that data analytics and insights are a key component to driving post-merger value; identifying overlap, maximizing synergies, minimizing risks, and optimizing the business throughout the integration process. Therefore, in this blog we’ll share some data-driven essentials to optimize the post-merger integration process. The importance of post-merger integration planning Closing on an acquisition can be a challenging process, but the integration process is often more difficult. Capturing the value of the deal is a balancing act that requires close attention to management, employees, customers, and shareholders. On the front end, the evaluation process helps identify potential synergies and opportunities in the financials, projections, and business models of the companies. Once a deal is agreed to, companies must pivot to integration planning to ensure opportunities are realized. Post-merger integration is essentially the process of unifying two entities and their assets, people, tasks, resources, and processes in a manner that creates the most value for the future of the company. Stakes are high, and time and resources are often constrained. The volume of unstructured data can create a logjam in analyzing synergy opportunities that can drag on for months after the transaction closes. These pitfalls put success and profitability at risk. A well executed plan will: Accelerate integration timelines after the transaction closes Identify and quantify transactional synergies Prevent duplication / overlap Reduce risks Optimizing post-merger integration with data Because every M&A deal is unique, the path to create value is different for every company. There are a plethora of M&A playbooks and best practice guides on the market to help navigate the process, but there is no one-size fits all approach to successful post-merger integration. There are, however, tools and data-driven methodologies that can lead to smoother integration and the successful capture of synergies. A truly effective integration plan should pave a defined path from your goals to impending results and rely on quantitative analysis for fact-based planning, decision-making, measuring, and monitoring. Big data analysis can lend smarter insights and increased confidence and can be leveraged in M&A environments for faster integration and successful post-close performance. Also, data and insights can be used to quantify transaction synergies, drive rapid due diligence, accelerate integration, and enable immediate execution on value bearing overlap opportunities. Data-driven essentials to drive value Some examples to optimize your post-merger integration and drive value with data include: Customer Overlap Analysis Identify shared and non-shared customers, validate transactional synergies and gaps, and quantify your greatest revenue growth opportunities. Sales Resource Optimization Align combined sales resources with target market opportunities in a manner that optimizes go-to-market initiatives. Product & Vendor Overlap and Opportunities Quantify product overlap down to SKU level to decide whether to continue, combine, or eliminate the products and/or services offered. Quantify vendor overlap to support deal negotiations. Warehouse and Inventory Synergies Quantify opportunities for inventory consolidation between warehouses, reducing working capital, increasing service rates, and reducing stock-outs. Price and Cost Analytics Reconcile differences in pricing, discounts, rebates, contracts, incentive programs, etc. to arrive at net-net cost differences and quantify and prioritize margin improvement opportunities across the organization to create value and cost savings. M&A and divestitures can fuel growth, but a clear strategy, sound diligence, and effective and rapid integration are crucial. With known post-merger failure rates alongside the pressures of today’s economic environment, companies are looking for new, more effective ways to get the integration work done. Particularly, when financial exposure is significant, data sets are large or complex, and multiple stakeholders are involved, the need for expert valuing, modeling, and analyzing business interests becomes increasingly critical. Data analytics can help mergers succeed by lending smarter insights and increased confidence to the process. Whether you have the in-house resources or need M&A Data Services from an external specialist (an unbiased, third-party data partner), data analytics can play an important role in the right due diligence, a well-executed integration plan, and ultimately ensuring the deal lives up to its predicted value. Related Blog Posts Data-driven Essentials to Drive Post-Merger Value August 13, 2024 Data-driven Essentials to Drive Post-Merger Value Mergers and acquisitions are a hot topic in B2B distribution markets, with distribution and supply M&A volume predicted to … Learn More Optimizing the Manufacturer and Distributor Relationship with Data August 13, 2024 Optimizing the Manufacturer and Distributor Relationship with Data Emerging technologies, industry trends, and the changing customer landscape are all factors that affect the channel, both … Learn More B2B Pricing During Generational Inflation August 13, 2024 B2B Pricing During Generational Inflation. Unprecedented inflation, raw material shortages, and logistics challenges continue to plague B2B Professional markets. This type of prolonged inflation has … Learn More

Optimizing the Manufacturer and Distributor Relationship with Data

Optimizing the Manufacturer and Distributor Relationship with Data Emerging technologies, industry trends, and the changing customer landscape are all factors that affect the channel, both on the Manufacturer and Distributor side. Channel collaboration becomes a key competitive advantage when traditional Manufacturer and Distributor value propositions are under pressure. With so much change, a channel strategy that tightens the relationship between Manufacturers and Distributors will arguably drive efficiencies, cost savings, and revenue growth. So how can channel stakeholders find common ground on which to build a strong, mutually successful partnership? At Precision, we believe Data is that common ground; the key to optimizing the Manufacturer and Distributor relationship. Paving the road for collaboration Channel collaboration is not a new concept, but the urgency to achieve it has risen. In fact, the urgency to transform a historically transactional relationship between manufacturers vs distributors into one of alignment & partnership has never been higher. We have always known the relationship between Manufacturers and Distributors to be symbiotic – one does not exist without the other. And although this seems like a simple concept, it turns complex when Manufacturers and Distributors are focused on their own internal objectives & goals. With investments of time and resources at such a premium, collaboration towards a common goal is essential to growth in the current landscape. Engaging with peers Collaboration begins with communication. Engaging with industry peers encourages new ways of thinking and working. It can create new opportunities for Manufacturers and Distributors to work together. Channel leaders like ISA, the channel association for the Industrial MROP industry, are at the forefront of this. They acknowledge that traditional supply channels and supporting sales models are no longer keeping up with the changing times. Through purposeful networking and thought-provoking discussions, we can drill down on issues together and create a new channel that’s built for the future.” Brendan Breen – President, Industrial Supply Chain ISA strives to “help stakeholders (Distributors, Manufacturers, and IMRs) create better value for each other while attaining the goal of satisfying the End User’s evolving needs.” Leaders can engage with peers at their ISA22 convention where topics like supply chain issues, labor shortages, evolving end user, and mergers and acquisitions (M&A) strive to bring channel stakeholders together to find mutually beneficial solutions to these issues. Using available data Modern technologies, digital transformation, and data insights are also helping to pave the road for improved collaboration between Manufacturers and Distributors. These new technologies and digitization efforts have increased the availability of data . . . lots of data. And because data lacks emotion and ambiguity, it can be used to raise the trust factor amongst potential collaborators. Data has the power to transform into fact-based insights and business intelligence when mined and analyzed – leverage this data to drive strategy toward mutual growth. Data also offers a layer of transparency that Manufacturers and Distributors can benefit from to grow their respective businesses and improve their relationships with each other. Companies often have security and trust concerns that prevent the sharing of data or lack time or resources to leverage their available data. In these cases, a trusted third-party data partner can keep the data secure and anonymous, while producing fact-based insights that be used to accomplish mutual goals. Leveraging data for optimal decision-making Assuming the desire for collaboration and a data-driven strategy, the question then becomes how exactly to leverage the data to optimize the Manufacturer and Distributor relationship. Data may not solve all the challenges between Distributors and Manufacturers, but as Albert Einstein once said, “in the middle of difficulty lies opportunity.” When the potential for partnership is recognized, the opportunity for closer collaboration and mutual growth increases. Here area few examples of potential ways to partner using data: Category Management With data from both the Manufacturer and Distributor, companies can identify mutual business opportunities to collaborate on category objectives, alleviate supply chain bottlenecks, and accelerate growth. Transactional data can be compiled, statistically modeled, and leveraged to optimize category assortment, segment product by buying behaviors and market basket, and measure share of category. Distributors can then use these insights, strategies, and action plans to drive category growth through their key Manufacturers. Point-of-Sale (POS) Insights Distributor Point-of-Sale (POS) data is valuable and data security is paramount. Utilizing a third-party to securely share key insights from that data with key Manufacturer partners provides an opportunity to drive volume and profitable category growth for the Distributor and helps drive the Manufacturer’s decisions on investment and allocation of resources. Insights gleaned from POS data can provide a playbook of engagement between the Manufacturer and Distributor. End-User Planning and Targeting Customer segmentation analysis utilizing sales data can help predict customer churn and loyalty, identify gaps and opportunities, and aid in developing tailored customer business plans. Insights gathered from Manufacturer sales data and Distributor transactional data can help execute on those customer business plans. Market Basket Analysis, Cross-Category Correlation, and identifying white space and underpenetrated categories can bring a laser focus to Manufacturer and Distributor sales teams to partner on targeting key end users for selling opportunities. Many leading-edge companies have already recognized the tremendous value that closer Manufacturer-Distributor collaboration can yield. Leveraging data and advanced analytics will enable positive collaboration and drive meaningful revenue and profit improvement for both the Manufacturer and Distributor. To learn more about optimizing the manufacturer and distributor relationship with data, attend the ISA Virtual Panel session on Tuesday April 19, 2022. Register for the upcoming ISA22 event with a virtual pass here. Related Blog Posts Data-driven Essentials to Drive Post-Merger Value August 13, 2024 Data-driven Essentials to Drive Post-Merger Value Mergers and acquisitions are a hot topic in B2B distribution markets, with distribution and supply M&A volume predicted to … Learn More Optimizing the Manufacturer and Distributor Relationship with Data August 13, 2024 Optimizing the Manufacturer and Distributor Relationship with Data Emerging technologies, industry trends, and the changing customer landscape are all factors that affect the channel, both … Learn More B2B Pricing During Generational Inflation August 13, 2024 B2B

B2B Pricing During Generational Inflation

B2B Pricing During Generational Inflation. Unprecedented inflation, raw material shortages, and logistics challenges continue to plague B2B Professional markets. This type of prolonged inflation has not been experienced since the 1970s and has created a sense of urgency in companies to act on price increases to avoid further margin erosion. But a blanket-approach to B2B pricing may not drive the results you are looking for. Whether you are a supplier, a distributor, a wholesaler, or a reseller, the current wave of inflation affords you the opportunity to transform the way you price products and services using a more targeted approach. Assuming you’re bought in on the value of optimizing your pricing, the challenge is how? Data can drive the answer to this question. A Targeted Approach to B2B Pricing All your customers are different. They have varied margin profiles, they have unique growth opportunities, and they have differing costs to serve. One size fits all blanket price increases across your customers and products is no longer the answer. Data driven solutions allow you to tailor pricing based on customer differences, and ultimately optimize how you take price and how you impact your bottom line. The concept of Precision pricing is highly targeted, enabling managers to base prices on each product’s true, current costs and each customer’s true, current profitability. Different customers should be treated differently, informed by factors such as the cost to serve, historical performance, and value of the customer or product. “Precision pricing is the key to pricing in today’s inflationary environment and in the mixed-inflation markets we can expect in years to come” according to Jonathan Byrnes and John Wass in a recent Harvard Business Review publication. Leveraging Data to Optimize Pricing Strategies Data can be utilized to accurately segment customers into different groups based on various criteria, unique treatment strategies may be developed for each group, and targeted pricing plans incorporated into these strategies to maximize ROI. Data not only allows for a more targeted approach to your pricing strategy, but also allows for more transparent business negotiations. You can arm your sales force with the with the right tools to justify increases. No business likes price increases, but they tend to be receptive to ones backed by a well-articulated and robust rationale. Leveraging data to optimize your pricing strategy should include the following practices: Determine your actual costs and profits – segment customers not just on volume and margin but also cost to service and historical performance Take a data driven tiered approach to discounting – focus on high value customers or highly differentiated products Empower sales force with right tools – provide detailed, accurate, data-driven rational for price increases Precision‘s big data solutions help our customers understand the current market pricing for key categories, customize their treatment strategy by customer, and measure realization of price increases. Each of these steps are essential while trying to swim through these generational inflationary waves. “The insights and assessment of our current contracts allowed us to strategically price our business to manage unprecedented inflation in the towel and tissue space. The impact of the increase will have a significant benefit to our bottom line. Additionally, the analysis will enable us to focus our efforts on which customers to focus and grow with and those that we can manage both the margin and mix going forward” according to Derek Gracias, Vice President AFH Sales & Marketing, Kruger Products L.P. Even when inflation ends, we don’t expect a return to the era of stability that guided previous decision making on prices. Companies will always need the ability to respond quickly, precisely, and confidently as conditions in their industries continue to change. By implementing a targeted pricing strategy backed by data, companies will not only improve their position during inflation, but they will also build the capability to act quickly and more profitably for future pricing decisions. Learn more about Precision’s proprietary data models and professional business solutions at www.precisioncorp.net. Related Blog Posts Staying Ahead in an Ever-Changing Market September 4, 2024 In an industry as dynamic as ours, maintaining a forward-thinking approach is essential. Throughout my career, I’ve witnessed how businesses that continuously innovate and stay … Learn More Accelerating B2B Digital Transformation with Data. September 3, 2024 Accelerating B2B Digital Transformation with Data. Fundamental shifts in the B2B economy are causing businesses to accelerate their Digital Transformation journeys. From increased competition, to … Learn More Numbers don’t lie. But what are they trying to tell you? September 3, 2024 Numbers don’t lie. But what are they trying to tell you? There are such things as immutable truths. We know. Hard to believe in a world that’s … Learn More Data-driven Essentials to Drive Post-Merger Value August 13, 2024 Data-driven Essentials to Drive Post-Merger Value Mergers and acquisitions are a hot topic in B2B distribution markets, with distribution and supply M&A volume predicted to … Learn More Optimizing the Manufacturer and Distributor Relationship with Data August 13, 2024 Optimizing the Manufacturer and Distributor Relationship with Data Emerging technologies, industry trends, and the changing customer landscape are all factors that affect the channel, both … Learn More B2B Pricing During Generational Inflation August 13, 2024 B2B Pricing During Generational Inflation. Unprecedented inflation, raw material shortages, and logistics challenges continue to plague B2B Professional markets. This type of prolonged inflation has … Learn More