Where to Invest in Technology for Customer Service

By Coley Herrin

“The conventional wisdom may be ‘if it’s not broken, don’t fix it,’ but instead we should proactively search for opportunities to create efficiencies in our organizations.”

Today’s distributors must be good at everything, but how can we achieve that when the goal posts are constantly moving due to ever-evolving trends and technology? This is a question that my team and I have been working to answer for our organization, and I’d like to share the most important lesson pulled from our experience: Invest wisely and where it will give you the best return. I should clarify that “best” does not necessarily mean “biggest” or “immediately profitable.”

The plumbing, heating and cooling industry has been a bit of a final frontier for the adoption of advanced technologies. Maybe we have been slow to adopt brand new technologies because they haven’t been proven yet. Or perhaps it’s due to these changes requiring such a heavy lift for our team members. Integration is complicated. There are a lot of complex ins and outs with distributorship and retail sales; not to mention that most PHC businesses lack the resources and people to implement new tools.

One could argue that the overhaul and modernization of our industry’s systems and processes wasn’t fully necessary until recently. The advances in technology that are supposed to make PHC businesses function better are coming so quickly that it can be difficult to decipher which pathway is the right one for the long term.

Plus, technological solutions for inventory management, point-of-sale systems, and sales tracking often require costly investments up front, and they are always more time-consuming to implement than expected. So, how do smaller businesses keep up the pace?

Plumbing, heating, and cooling businesses need to think smartly about how to modernize. The process of choosing where to invest should seek to address these three questions:

1) What will make our organization run smoother and more efficiently?

2) What do our customers need to do business with us more effectively?

3) How can we address the first two questions and stay on budget?

 

Create Organizational Efficiencies

The challenges of the last five years have shown our industry that we needed to change the way we do business. Many systems and processes at wholesale distributors and retailers remain antiquated.

The good news is that simple actions can have a big impact on a company’s bottom line. Business leaders should conduct internal assessments to:

• Streamline inventory management.

• Train staff regularly on the products they sell.

• Evaluate product pricing and popularity.

• Identify shortcomings in the sales process.

• Offer incentives to team members who adapt quickly.

In a world where clients expect transactions to mimic shopping on Amazon, it can be difficult for smaller companies to deliver. Consider creating stocking programs or preferred vendor incentives for the best-selling products. This could look like partnering with manufacturers whose products are frequently purchased and ordering a larger stock of those items to have on hand. Then, fast-track shipping and delivery of these items to customers in your area. These orders should be processed and tracked online.

Our company has the benefit of employing delivery drivers, which may not be an option for our colleagues in the industry. However, there are numerous tools available to handle the shopping cart and shipping functions that can be integrated with a company’s website.

 

Make Doing Business with You Easy

Technology can certainly assist in identifying and implementing more efficient systems and processes, but it’s not the only answer. Team leaders should be checking with their staff and working through any challenges in the sales lifecycle. Listen to feedback from plumbers and HVAC technicians and work to identify solutions that will keep them coming back to you with their business.

Ask any of my colleagues and they will tell you that I always say, “Our job is to make people’s lives better.” Customers want to do repeat business with the person that makes their job a little easier and more enjoyable.

One way that we have been accomplishing this at PDI Kitchen, Bath & Lighting is through the development of an online portal for our customers. Each client can register for an account using their unique customer number and login to see their order history, place new orders and view products with their custom pricing. A customer portal may not be a new concept in retail shopping in general, but it has not become ubiquitous in the plumbing, heating and cooling world.

PDI has seen big returns from providing the capability for tradespeople to conduct transactions without having to call Inside Sales or wait in line at one of our branches. The online trade portal means that contractors and plumbers can buy online from the comfort of their desk or their truck. It saves them time while providing certainty about product availability.

By implementing something as simple as an online portal for tradespeople, we’re not only making it easier to do business with us, but we are also earning the trust of the next generation of PHC business owners.

The younger generations of local companies — those who will inevitably take over the family business — have been especially drawn to the convenience of using the trade portal for smaller purchases and urgent needs.

 

Accomplish Your Goals within Budget

Today’s digital-first world requires us to provide customers with more convenience through online tools and applications, yet few plumbing and HVAC businesses have the resources necessary to implement many tech solutions on the market today. So, how do PHC companies streamline internal processes and make conducting business easier by deploying technology that doesn’t break the bank? The answer comes down to priorities and funds.

Business owners should set yearly objectives for improving their organization and sales practices. Establish an annual budget dedicated to upgrading tools and technologies that will enhance the employees’ and customers’ experience. This will help to protect the company from over-investing in unnecessary tools.

Continue working diligently to create efficiency, implement effective sales strategies, and slowly grow your use of tools and technologies. The work toward excellence never ends, but with persistence you’re bound to find success.

Coley Herrin is president & CEO of PDI, a family-owned distributor of plumbing supplies and retailer of kitchen, bath and lighting products and appliances based out of Lawrenceville, Georgia. PDI employs roughly 400 people at 27 locations across Georgia, South Carolina and Tennessee.

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