In Part 1 of this two-part post, we covered the first type of distribution segment called Operational Efficiency Seekers.  In Part 2, we discuss two other types of distributors and the value propositions that will increase their loyalty. 

Segment 2:  Customer Intimates

This type of distributor makes money by being invaluable to the end customer.  They love to work with manufacturers who give them the opportunity to add value to a product or service by customizing it in some way that reflects their deep knowledge of end customer needs.

Value Proposition for Customer Intimate Distributors

These types of distributors appreciate it when manufacturers segment end-customers and share that knowledge with them.  This helps the distributors deepen their own knowledge of how different end-user customers are different.

Providing packages of products, service and information that are different for each end-user segment are embraced by customer-intimate distributors.  Manufacturers who do this are playing to this type of distributor’s strengths, providing them with a way to bring unique value to each segment.

Segment 3:  Innovators

This is typically the smallest segment in the distributor world.  By definition, most distributors aren’t innovators – they are simply providing a route to market for companies like yours that are manufacturing innovative products.

However, there are some distributors and doctors who like to focus on distributing the “latest and greatest” products and services.

Value Proposition for Innovator Distributors

These types of distributors like working with manufacturers who share with them the highly-technical details of a new product or service.  They also appreciate it when you make your own technical folks available to share information with them and their early adopter clients.

They also like to work with manufacturers that help them “cross the chasm” from selling to their early adopter clients to winning with their more conservative, larger end-user segments.  The larger segments require more proof that innovative products work, so share your plans to gather this evidence with your innovator distributors – they will be comforted by knowing you are focused on this.

Many of our clients who have read Chapter 3 in the Accidental Marketer are becoming passionate about the power of needs-based segmentation, and are hungry for ways to make it work in business-to-business industries.  We continue to look for ways to make this strategy more accessible to marketers of all types – stay tuned for future posts about this important topic!