Farmington Consulting Group

Linking Customer Satisfaction to Increased Profitability

Consolidated Supply Co (CSCO) supplies plumbing, waterworks, and heating products for commercial, residential, and municipal projects to contractors, homeowners, utilities, and municipalities in Oregon, Hawaii, Washington, and Idaho. The company has 260 employees and 16 branch locations.

Twelve years ago CSCO retained FCG to conduct their first customer satisfaction survey for all their branch locations. As a result, they have retained us every year since to conduct their survey. Why? Because they have increased profits as a result of achieving higher levels of customer satisfaction.

We asked their numbers man for proof. According to Bob Bruce, CSCO's senior vice president & CFO: "CSCO has improved its customer satisfaction index (CSI) during this 12 year period. In fact in just the last five years, we improved overall CSI scorees from 63% to 76%. This is huge and reflects our relentless focus on customer service. More specifically in our latest survey (January 2010) 10 out of 15 branches have overall CSI scores of 75%, or higher. We have also found a financial link between high customer satisfaction and profitability in our branch locations. This year, our top two branches in terms of overall CSI scores are our most profitable. In addition, are newest two branches, who are aggressively building market share have the 3rd and 4th highest overall CSI scores".

You too can duplicate CSCO's results with increased profitability amid our continued economic downturn. Take profitable action and contact us today!

Tom O'Connor Presents Rep of the Future Research Study at NEMRA Annual Conference

Forces Driving Change - Escaping the Rep Tar Pit

To escape the Rep Tar Pit manufacturer representatives must become a skilled market driven strategist. Most reps are more comfortable dealing in the present rather than the future. They spend most of their time reacting to what is happening in the moment and do not see the future implications of their actions. They are stuck in the “peddler” mindset. They are sales driven, not market driven. These reps will wither and die. The Reps who survive and prosper well into the future will possess the following six skill sets:

1) Develop clear and accurate strategic vision of the future and where they are versus where they need to be.

2) Implement sound strategic business planning session with their key manufacturer partners.

3) Employ channel marketing expertise within their geographic footprint.

4) Deploy the right strategic selling strategies to distributors, contractors/ end-users, and specifying engineers.

5) Execute the right technology strategies to streamline their processes, become operationally efficient, and improve profitability.

6) Teach people at all levels of their agency to continually think strategically, anticipating market opportunities and threats while managing the day- to-day tasks that fall within their scope of responsibilities.

Is your agency stuck in a peddler mindset? Is your firm sales-driven, not market-driven? For more information on how the Rep of the Future will affect your rep firm please contact tomoconnor@fcgltd.com

High Performance Coaching Training Transforms Womack Electric Supply

“This past week Tom O’Connor of FCG conducted a High Performance Coaching training session for 28 Womack employees. Everyone found Tom’s coaching training to be of great value as we begin the implementation of Performance Management. Tom did an excellent job of engaging all participants. Near the end of the sessions, the groups participated in role playing exercises that clearly help drive home the proper interchange between employee and coach. We will certainly see improved communication and more effective execution as a result of this coaching training. As always Tom got great reviews from everyone and each participant left with a clear understanding that Tom was available as a coach for them as they begin the process.”

Burke Herring - President Womack Electric & Supply Co., Inc.

For more information on how this High Performance Coaching Session can improve everyone of your employee's job performance, communication, and satisfaction please contact us.

Are Reps Headed on a Collision Course?

Our Rep of the Future research reveals manufacturers want reps to make end-user/ contractor calls. Distributors who are resistant to reps making end-user/contractor calls cite it will take control of jobs away from the distributor, will further deteriorate the level of trust between distributor and rep, and will result in reps and distributors working at cross-strategies. What is the solution?

What Manufacturers Want Reps to Invest in to prepare for the Future?

Manufacturers:

If there is one investment you would like to see your independent manufacturer representatives make in their businesses to prepare for the future, what would that investment be?

Rep of the Future

We are currently engaged in the Rep of the Future research study for National Electrical Manufacturers Representatives Association (NEMRA). As part of our research study, we are conducting online and telephone surveys of electrical manufacturers’ representatives, manufacturers, distributors, contractors, and specifying engineers. Our desire is to have electrical channel partners participate in our online blog, called FCG Forum at www.fcgltd.com to generate conversation.

Over the next six weeks we will be posting Rep of the Future questions and we welcome your comments. It is our electrical distribution channel’s opportunity in real time to share forward thinking Rep of the Future insights and challenges.

Our first question is directed to NEMRA reps:

If your “A” manufacturers freed you from performing the day-to-day order fulfillment/customer services activities, how would you re-allocate those resources that you currently devote to those activities?What changes would you make to your agency’s structure?

Also, don't forget to sign up for automatic notification of new postings through our RSS feed.