Distributor Analytics Essentials Series: How will distributor analytics help me make/save money?

Submitted on: Wed, 02.22.2017 07:15pm - Annie Eissler |
Distributor Analytics Essentials Series: How will distributor analytics help me make/save money?

In this second post in our series on Distributor Analytics Essentials, we look at return on investment. Analytics solutions are often underutilized when users don’t see the benefit and understand how it will help them make or save a buck.

One key to positive ROI is the level of analysis and recommendations presented by your solution. As mentioned in the first post in this series, reports simply provide data. Analytics save you time by providing the relevant information to answer your question, often sifting through hundreds of thousands if not millions of records.

Here are some questions your distributor analytics should help you answer:

  • Do I have any dead/slow turning inventory? What should I focus on first?
  • Are any low sales margins due to manual price overrides? What users/products are the main offenders?
  • Am I missing opportunities to cross-sell, up-sell? With what customers/product lines?
  • How do I identify opportunistic customers that I should nurture?
  • Do I have at-risk receivables? Which customers should I approach first?

Distributor analytics can also help you begin building more complex ‘complete picture’ views of your customers and products, for example:

  • Developing a cost to serve model to identify true customer profitability
  • Comparing similar customers to identify who’s not buying your complete product suite
  • Identifying product sensitivity to each customer segment to allow for targeted price increases

In our next blog post in this series, we’ll talk about things you should look for when considering a distributor analytics solution. Look for that post on our blog on March 1, 2017.

We also invite you to learn more about distributor analytics by joining us on March 7, 2017 for a free webinar where we will dive deeper into this topic.