Loyalty… Does it still exist in retail? Maybe not with consumers but it certainly does still hold true for dealers. Loyalty often means different things to different people but in the context of a brand and retailer relationship it comes down to sales. Retailers demonstrate loyalty by carrying brands that make their lives as easy as possible to sell that have the ability to drive customer demand. Brands create great products and marketing to drive consumer demand obtaining customers and sales volume they never would have obtained on their own through a dealer network.
What the Winners Do
They spend more time educating their sales teams and dealers about what the brand stands for and what it means to their customer. Why is this important? I’ve talked with brands that say ‘it’s the dealer’s job to sell the brand. We sell to them and that’s it.’ And that means putting forth the effort to learn the brand. After all, the brand pays them, right?
Wrong. Dealers talk about and sell brands they understand and believe in. If you create that understanding and nurture that belief, you are well on your way to setting yourself apart from most competitors in your category. Obtaining loyalty goes beyond what you sell and into the people within the organization and how you sell.
How to Obtain Dealer Loyalty
Quite simply it is about giving dealers the tools and opportunity to sell more products to become successful with your brand. If you don’t currently have demand at retail for your products, demonstrate that there is through shared online sales. Nothing says loyalty like shared customers and sales to kickstart the relationship and bring awareness to your brand’s products. If they aren’t stocking, they will find out what they are missing in a low cost way that leads to significant wholesale orders and stock adjustment to meet local market demand. If they aren’t on board and don’t order more from you, give it time as loyalty and trust is not built overnight. Let them know what they would be missing without your business. For dealers that do stock, they are one step closer to placing a much larger purchase order than any direct to consumer sale you will get leading to sustainable revenue you can plan a business around.
Does Dealer Loyalty Still Matter?
If you could influence the sales channel where 90% of your sales happen and most consumers prefer to shop, would you? Okay, what if this channel also is where many consumers start their shopping journey, and has the potential to lower your customer acquisition costs? Quite simply the answer to ‘does dealer loyalty still matter’ should be a resounding YES.
Getting involved in wholesale is not a flash in the pan and walk away with new found money. This is where most brands fail as they don’t reinvest into the channel to sell more. Wholesale can be a repeatable and sustainable source of revenue but is no guarantee without dealer loyalty and sell through assistance. To stay top of mind amongst dealers and the sales people on the showroom floor it requires a systematic approach and tools. These tools should be able to monitor and gauge success to ensure everyone in the channel is rewarded and engaged while creating a better consumer experience.
Sell More with Loyal Dealers
The vast majority of sales and margin dollars are to be had at retail, but shelf space is finite which means there is only enough room for brands with the best products and programs that sell. Direct to consumer is a very turbulent way to grow a brand and even the most known online brands see the benefits of physical retail (Amazon, Casper, Bonobos, Warby Parker, etc.). Does your company have a strategy to enhance dealer loyalty and get found by more consumers? Want to do better? 76% of channel marketing leaders believe that the right channel marketing strategy is a strong competitive advantage. What’s your approach?
About Us
ShipEarly‘s channel engagement platform combines manufacturer online and physical retail sales channels to sell in and sell through dealer inventory to keep your spot in store secure – boosting consumer conversions, revenue, and dealer loyalty.
