E-commerce and excellence

A balance of new technologies and a tradition of partnerships best serves customer needs

By -- Industrial Distribution, 8/1/2000

The first year of the new century is past the midway point. Already patterns for the year, the decade and the 21st century have emerged. Perhaps the most obvious and powerful force is the significant impact of e-commerce. Its roles and reach are expanding rapidly, and its position in future marketing and communications plans is all but certain.

Ironically, this occurs only months after the worldwide concern over Y2K and the threat of a computer collapse. Such is the speed of change in 21st century business terms.

At the same time, the old adage holds true that the more things change, the more they remain the same. Yes, e-commerce is here to stay and will continue to facilitate purchasing transactions for products that are known commodities to end-users and purchasing agents. Yet we are finding that now, more than ever, we rely on strong partnerships with our distributors to compete successfully in an e-commerce world.

Why? Because the more things change, the more they remain the same. Technologies will continue; customer needs for versatility, value and personal consultation and service will remain.

As a result, at our company and in our markets, the "e" in e-commerce stands for more than just electronic. It stands for esthetics and ergonomics-quality factors that can be appreciated only by seeing, holding and handling products.

How can you communicate those qualities electronically?

And how can e-commerce replace face-to-face time with a knowledgeable distributor in a showroom or job-site setting? Can the critical tasks of listening to the end user, relating to his challenges, evaluating his needs, "prescribing" the right tool for the job and demonstrating superior performance features be fully programmed? And how do you build long-term relationships of trust and confidence, and add value for the end-user electronically?

We don't deny the value of e-commerce; we just don't totally rely on it. We use it as a tool for supplying our customers with information about our company and our products. It is a useful tool for after-market purposes of technical support, but it's not a cure-all tonic for customer needs and total support.

For building business, we subscribe to the "feet on the street" philosophy. We rely upon our growing ranks of knowledgeable distributors to deliver the products and the other goods that really matter-both to the end-users and us. Among the important contributions distributors make to the selling process are:

1. Addressing the price barrier

2. Demonstrating products hands-on

3. Providing local service and technical advice

4. Delivering reliability (physical location)

5. Building relationships through interpersonal exchange (you can never over-service a good customer).

These roles can and should be enhanced by e-commerce, not replaced by it. E-commerce has already emerged as an effective instrument for transacting business. For end users who know what they need, when they need it, and what they can afford, it can be an invaluable instrument.

But transacting business is not synonymous with selling. Nor does it assure long-term growing business relationships. As a source of information and a tool for efficient customer transactions, e-commerce has unlimited potential. However, these conveniences will continue to complement rather than replace the sales and engineering expertise available through qualified distributors.

Terry Strange is president of Rothenberger USA, Inc. of Monterey Park, Calif.