In the COVID-19 Environment, 7 Insights for Manufacturers Who Sell Through the Hardware, Ag, and Construction Channels

In the COVID-19 Environment, 7 Insights for Manufacturers Who Sell Through the Hardware, Ag, and Construction Channels

QDI is continuing to help clients in the Hardware, Ag, and Construction markets. In doing so, we talk with the channels, conducting QDI discovery research with Hardware, Ag, & Construction dealers for clients and for general market insight. We have relied heavily on Skype and similar formats to collect information and communicate with clients for the past several years. As you might expect, we’re doing that almost exclusively now.

Based on these conversations, we have gathered insights for our clients about working in the COVID-19 environment.

1. The dealers are open and actively helping their customers in the essential industries
   a. While business has slowed, so far, it has slowed less than many expected
   b. Dealers are reordering from those manufacturers whose products are selling
   c. For products that are not selling, they are also slowing payments
   .
2. A top priority is retaining valuable employees, so they are actively working to make their employees comfortable
   a. They are encouraging those who want to take time off to do so without fear of losing their job
   b. They are providing frequent communications about Covid-19 precautions and the business
   c. They are empowering employees to make suggestions to improve the health and safety processes they are putting in place and making it clear they  are empowered to tell customers to observe social distancing when customers are on-site
   d. Some are giving bonuses to employees staying on the job
   .
3. Where they are hiring to fill for select slots, they have replaced their high touch, employee orientation & education with narrow, targeted training. At this point the new employees need to know how to do the tasks they are assigned. Background in company history, mission, and culture will come later, after restrictions are eased or as the larger dealers build new ways to provide this type of content.
   .
4. They are accelerating the shift from advertising to social media for communicating with customers by:
   a. Stopping all advertising/promotions that suggests customers come into the dealership
   b. Increasing posting about on-line tools, curbside pick-up, and delivery
   c. Teaching customers how to shop in this new environment
   .
5. They are searching for the right mix of on-line and phone support to replace in-person shopping support
   a. Those that use CRM systems are making even greater use of them
   b. Those without CRM systems are wondering if they need to track these touches
   .
6. Even after social distancing policies are relaxed most dealers expect these changes to remain:
   a. Customers will want to continue delivery and other conveniences
   b. Dealers like that the on-line tools work 24/7 and require less labor, so they will continue to encourage customers to use them where appropriate
   c. Employees will have children, parents, and household tasks that require them to be home for a day and will want to use the remote tools they are now familiar with to work at home occasionally
   d. CFOs will encourage virtual meetings in place of fully restoring travel budgets
   .
7. The dealers value manufacturers who are providing:
   a. Information on the supply chain – availability, delivery times, etc.
   b. Assistance in creating a safe environment – how to clean your products, use while engaged in social distancing, mitigate the current impact, etc.
   c. Tools to help with customer shopping process
   d. Social media content that will help customers (shop, receive training, stay healthy, etc.)

Dealers, like everyone else, know we will get through this. They also recognize that change is a time for innovation – some of their suppliers will struggle – some will emerge stronger and as better partners than before. This truly is a time when the challenge is also the opportunity. With forward thinking, innovative dealer programs, the right changes in your dealer support, and flexibility, you can gain share and strengthen your position.

These are the insights we have captured in our recent conversations with the market. To learn more about QDI, our perspective on go-to-market strategies, or our insight on the marketplace, please connect with us on LinkedIn, Twitter, Facebook, or at www.qdistrategies.com. If you want to know more about how your dealers and customers are adapting and what they need from you, give us a call. We can help you turn this into a market opportunity.

5-28-2020 update – Here’s a useful HBR article about “leading your team into a post pandemic world”: https://hbr.org/2020/05/lead-your-team-into-a-post-pandemic-world

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