B2B seems to be the latest buzzword in the Internet industry.
While we are inundated by stories of how pure-play dotcoms and e-tailers are faltering, we’re also hearing how Business-To-Business companies are finding a solid and profitable place online.
Central Distributors, out of Des Moines, Iowa, is a case in point.
This family-owned wholesaler of floor coverings has carved out its niche on the Internet, using it not only for selling, but for sourcing and research as well.
Scott Hendricks, president of Central Distributors, is the 2nd generation to head up the company, which was started his parents in 1956.
The family operates two stores in the Des Moines and Cedar Rapids area.
Scott decided to take the business online as a way to save his customers—flooring retailers—time and money.
Although the site is still in its infancy, he has found that is has already had a positive impact on his business, and will only continue to benefit customer and company alike.
"We started on the web in January 2001 with 5 pages of information. From that, it has expanded tremendously, in direct response to what our customers are requesting.
I see us taking it from being information only to having both
information and online ordering capability."
The key challenge so far has been training their customers to use the web site to find answers to common questions or to do basic research.
Scott hopes that as customers learn to make the website their first stop, his sales team will be freed up to use its time more effectively taking care of the customers orders - rather than being tied up on the phone, fielding the same questions over and over again.
"When a customer calls and asks us for information that’s available on our web page, our answer is not to provide them with the information, but to let them know that we have a web page.
If they have web access, we guide them to the web page and tell them where on the page they can find the information. We get them comfortable with using the site, and rather than giving them the answer, we let the site give them the answer."
This is a tricky maneuver. If the customer is going to be taken through such a process unexpectedly, they had better see immediate value and appreciate the continued benefits that they can accrue from this tutorial.
Needless to say, the Central Distributing folks on the phone had better be well schooled in diplomacy and keenly aware of the company’s brand promise.
Rather than allowing web designers or computer consultants to shape their site, Scott relies heavily on the input of the end users.
After all, if the site isn’t addressing his customers´ needs, it’s worthless to them.
This decision demonstrates a strong commitment to serving the business idea throughout all of the day-to-day decisions that as made at the speed of business today.
One can imagine his commitment to the idea influencing the way that he communicates with his people and the emphasis he places on their accountability.
"What we’re finding, in conversations with our customers, is that they want access to information.
We’re constantly updating it based on the feedback we get from our customers.
We do our best to try and include all customer suggestions, and once we’ve made a change or improvement, we announce it to our customers."
Scott is convinced that the time saved by using the Internet is reason enough to invest in the technology.
