The Gen Z effect on wholesale distribution: 3 ways young customers are changing the industry
GenZ is forcing the wholesale distribution industry to change by focusing on personalization, omnichannel, and self-service.
Wholesale distribution customers aren’t so easy to please anymore – their expectations are rising, and so is the pressure to keep up. They’re less loyal and much more likely to turn to the next seller if their expectations aren’t met, and they expect retail-like features in their shopping experience.
To address this “retailization effect,” many wholesale distributors already borrow models from B2C intended to empower the customer, such as self-service kiosks or loyalty programs. Customers are creating their experience – they have the tools and the channels, as evidenced by the increasing number of touchpoints needed to close a deal.
In a recent article, PwC suggests a CX strategy that could radically alter how wholesale distributors treat customer experiences: The Experience Supply Chain. This concept borrows ideas from the traditional supply chain and translates them into a CX context, viewing the journey as something to be orchestrated, not owned, by the wholesaler. Rather than racing to control all touchpoints, wholesale distributors should embrace the customers’ ownership of their journey, PwC advises.
Wholesale distributors still map, manage, and refine the experience while focusing on their strengths and collaborating with a network of reliable players to fill in weaknesses. For distributors, it’s about orchestration and collaboration, and for customers, it’s about personalization and empowerment.
Wholesale distributors and CX: Becoming the orchestrator
The main idea in the PwC’s Experience Supply Chain (ESC) is to shift from ownership of every single touchpoint of a customer journey to an orchestrating role. B2B customers are already piecing together their own experiences with a multitude of tools, platforms, and opinions. Companies need to turn into enablers that skillfully manage customer engagements into one smooth journey.
The ESC follows the logic of a traditional supply chain: wholesalers empower customers to travel from point A to point B via different routes that buyers define for themselves. Point A starts as early as introducing customers to a brand, and point B is a finished business transaction. The “points” in this journey are as individual as the customers who choose their touchpoints.
Introductions can take place in the form of advertisements or influencer campaigns managed by the wholesaler or in cooperation with the supplier. The transaction might repeat with re-purchases and subscriptions or be extended with value-added services such as maintenance or end-of-life management.
Much of the orchestration role lies in ensuring a seamless experience across all engagements while managing third-party collaborators in the network.
Accessible, high-quality data that’s shared through the network in real-time is crucial to success.
Tapping into the power of partnership
An effective ESC heavily relies on an ecosystem of trusted partners, collaborators, and suppliers. Collaboration can change the game. Rather than trying to do it all, having a solid network of collaborators will free up time and resources.
Building a well-oiled ecosystem starts by identifying a company’s strengths and weaknesses. From there, overseeing the experience instead of owning it allows wholesalers to focus on their core competencies and optimize them. Partners come into play to fill out gaps, and wholesalers can trust experts in other areas to complete the experience and add value.
Knowing customers is key since it’s crucial to recognize what will give them an all-around positive experience. Is it service, communication, channels, or marketplaces? Figuring out the partnerships that add real value unlocks ways to draw in customers and keep them happy.
Customers will shop where their needs are met, and for wholesalers that means focus on what you do best and maintain your influence on everything else.
Meeting customers where they are
Customers expect personalization, and the B2B industry knows it. They want to see recommendations that match their usual online activity. They’re looking for the most tailored fit, suggested via the preferred channel, at optimized pricing, with buying history, behaviors, and preferences in mind.
They also care about receiving the most personal experience, the kind that makes them feel like an individual whose wants are being considered, valued, and fulfilled. Being able to create their own customer journey is the ultimate personalization. Buyers want to have an influence over the products they see and the suggestions they receive. They’re even willing to provide valuable data to ensure a positive experience, making it easier for wholesalers.
Personalization meets customers where they are, and that means using that data to find out as much as possible and cater to the results. That may seem daunting with every possible touchpoint a customer consults, but maintaining an ESC allows wholesalers to outsource some of the responsibility.
Helping customers create their journey
Modern customers are used to getting what they want. The good thing is, they’re not afraid to ask for it either, making the wholesale distributor’s job a little easier.
They’re self-sufficient, with endless sources and channels at their disposal, and empowered by digital information. Catering to them involves empowering them further by giving them full control over their customer journey. They want to choose their own points of engagement, shopping channels, and frequency of interaction to create a journey that fits their needs.
Empower customers by making sure they can shop in their own time and on their own terms, and they will keep coming back. Wholesale distributors can’t ignore the emotional side of purchasing anymore as customers long to connect to their shopping experience.
A journey is full of emotions, and the ESC allows clients to build a relationship by allowing them to create their own.