Poring over data is the new “pounding the pavement.”
Distributors connect. As relationship engineers in manufacturing, they serve as an essential link between manufacturing facilities and machine tool builders.
To do their jobs well, distributors need to use a variety of relationship-building and sales-boosting tools. The most powerful and underused tool in the modern distribution landscape is data. At the Distribution Summit, held by AMT – The Association For Manufacturing Technology, industry experts shared actionable insights on leveraging data to optimize sales results.
Data, Data Everywhere
During a panel on the use of data in distribution, industry insiders discussed how to successfully apply data to sales planning. The diverse panelists, representing small distributors, large distributors, and market analysts, all agreed that while acquiring data in today’s digital landscape is simple, learning how to use data to drive sales strategies is far more complex.
“You’ve got all this data, but so do your competitors,” said Seth Machlus, president of Morris, a large Northeast machine tool distributor, referencing AMT’s U.S. Manufacturing Technology Orders (USMTO) program and the Uniform Commercial Code (UCC), the most commonly used data reports. “What are you going to do with this data that's going to be different than your competitors?”
Applying Data
Attempting to answer that question, Jeff DeLaughter, president of Machine Tool Specialties, a small distributor, emphasized that his company leverages external data to develop its sales strategy and map out high-potential areas. By focusing on targeted areas identified by data, sales teams can eliminate time wasted in areas that are already oversaturated or where business simply doesn’t exist. Using data takes the guesswork out of where to focus.
Managing Expectations With Information
The panelists provided real-life examples of how accurate sales data can improve communication with customers, builders, and potential partners.
DeLaughter recalled realizing the importance of data during a meeting with a company that was interested in acquiring his business. After being “grilled” on market share and customer data he did not have, DeLaughter “jumped in feet first,” vowing never to be left without a data-based answer again.
In another anecdote, DeLaughter’s commitment to data proved valuable when managing builder expectations. He said that using prospect data shows a builder that selling 10 machines per year in a region that only has demand for 11 is not reasonable.
“You can use the data to reset expectations, and it takes some of the pressure off,” DeLaughter concluded.
Integrating Data
Data becomes even more powerful when integrated with other tools, including customer relationship management (CRM) systems. Machlus noted that Morris is now moving beyond manual data processing by including sales data in their CRM system. This gives salespeople easy and intuitive access to high-quality data in one simple location. While the time investment to get started is large, after the system is set up, data can be integrated automatically on a regular schedule.
CRM integration may be out of reach for smaller distributors, but that does not mean they cannot implement data. The first, most crucial step to using data is getting started, the panelists agreed. Distributors must commit to using data and make it a priority. After that, it is essential to get buy-in from salespeople.
“The most successful approach is to find one data champion,” said Jack Kirr, the owner of MT Analysis. “I mean a sales-data champion, not an IT person or a marketing person. You need a salesperson who is familiar with the data and committed to figuring out how to grow their business and get more sales using data. Salespeople are competitive. If the other salespeople see this person selling more, they will all want to use the data.”
Distributors, large and small, stand to benefit from using data. It is time to move from pounding the pavement to hammering out the finer points of sales data. Using data to discover market insights, manage expectations, and empower sales teams is the best approach to modern-day machine tool sales. With the right tools in place, salespeople will have more success – and fewer worn-out shoes.
For more information on how AMT supports machine tool distributors, visit AMT Research Services or submit a request to learn how our research helps members better understand market dynamics, identify opportunities, and navigate change.
