Print Solutions December 2006
strategic sales
By Dick Gorelick
Feedback From Print Buyers
Once again in 2006, our firm surveyed thousands of print buyers. The
questionnaires were tailored to the print-selling organizations commissioning
each survey, but the overall feedback enables us to identify trends in the
buying community. The results indicate directions in which the industry is
moving:
Less Account Concentration
Our published research from 2000 to 2004 indicated that graphic arts firms
suffered most when they pursued sales volume for its own sake. They were
“burned” by the defection of buying organizations that didn’t perceive them as important and represented a disproportionate percentage of
annual sales. It
’s apparent that selling organizations now are sensitive to the jeopardy involved
in this scenario.
In 2006, we saw programs prompted by the recognition that a great relationship
with a customer might not last forever. These programs are intended to spread
the risk across stakeholders. We also witnessed sellers adopt a more realistic
view of large buying organizations. The sales volume may be wonderful, but a
long-term relationship should never be assumed.
Emphasis on Customer Service
The customer service representative has assumed more credibility and importance
throughout the entire business community. Many buyers view the CSR as their
impartial advocate. They believe that CSRs can honestly represent their best
interests, unlike the sales rep whose livelihood is based on sales volume.
Until several years ago, the sales rep was the employee most often mentioned by
name by survey respondents. Now, the CSR is the employee most often mentioned
by name in written comments. The ascendancy of the CSR is an important theme in
customer relationships.
Evolution of Buyer Motives
The data are overwhelming—most of the individuals we refer to as “print buyers” spend less than 20 percent of their time buying and managing print. This is
true even in cases where the so-called
“buyer” authorizes the purchase of millions of dollars of print. The implications of
this statistic are great. The primary motive of supplier selection has changed
from involvement to avoidance. A medical analogy is appropriate. Most customers
want a liberal dose of general anesthesia. They want to deliver electronic art
to a supplier and expect to be awakened without pain when the product is
completed and distributed. Surveys indicate deep disappointment about a
supplier
’s performance if there are hassles or surprises during the production process. To use another analogy, it isn’t acceptable for a supplier to deliver a beautiful baby if the birth is
difficult.
Less Emphasis on Product
Not too many years ago, failure to deliver printed products that met customer
expectations was often the result of a manufacturer
’s equipment, operator or materials. The industry’s technology has come a long way. In 2006, the primary cause of failure to meet
buyer expectations was usually faulty communication. They see print as a
commodity.
Buyers consider themselves to have many alternatives if an existing supplier
fails to perform.
Our surveys indicate that customer dissatisfaction is most often attributable to
communication issues, such as speed and detail of invoicing, sampling, status
reports about jobs in production, shipping and delivery information, timely
communication about problems with electronic files and
“surprises.” Feedback from print buyers is overwhelming: Delivering good products on time at
competitive prices is only half the battle. Communication can make the
difference between a satisfied and an anxiety-ridden customer.
Demand for Custom Distribution
Note that I refer to “custom distribution,” which I believe is more descriptive than “fulfillment,” “conversion” and “redemption.” Demand has gone well beyond traditional forms management, extending into list
procurement and management, testing and even market research. The cost of
manufacturing promotional print has been driven down by competition and
technology in recent years, but the price of distributing that material
continues to increase because of energy and transportation costs. There
’s no end in sight. In many cases, the distribution tail can be said to be wagging the print dog.
Contributing Editor Dick Gorelick is an award-winning authority on sales,
marketing and business strategies for the printing industry. As president of
the Graphic Arts Sales Foundation in West Chester, Pa., he travels extensively,
consulting, writing and speaking on sales training.
