E-commerce is playing an increasingly important role in the B2B food sector. Online platforms have become a vital sales channel for both wholesalers and manufacturers.
What are the key issues you need to focus on as a manufacturer? What should you do to realise the optimal customer experience?
But also: how can you as a wholesaler, in active collaboration with the manufacturer, ensure that products are found on your webshop?
In this two-part article series, we explore the four most important topics in B2B food e-commerce. Topics that deserve a firm place on the digital agenda of both wholesalers and manufacturers.
These are:
- Visibility and findability in the previous article
- In this article: activations and category vision
Activations at the foodservice wholesaler
If you want to draw more attention to specific products or product groups, activations are the way to go. By this, we mean any strategy that encourages your target audience to make a purchase.
Keep in mind that a wholesaler holds a unique position in the market. It has access to valuable sales data, such as when a product was purchased, how often, and in what quantity. Ideally, this data is used to develop an activation plan together with suppliers, tailored to each brand or product group.
Inspiration and information for the first purchase
For a customer who has never purchased a product before, you want to create an enticing offer to trigger that first purchase. This often requires something extra, such as inspiration and high-quality content about the product. Suppliers usually have this kind of product information and are more than happy to share it—after all, both parties benefit from increased sales of a new product.
Encouraging reptitive purchases through price promotions
Once a customer has tried the product, your goal is to get them to buy it again. After all, inspiring and informing a customer repeatedly takes time and money. You can create a habit by offering the product at a reduced price a few times. So that it becomes a fixed item on their order list.
But be careful: offering a discount on a product that’s already a regular in a customer’s shopping list is basically giving away money for free. Customers will love it, of course—but is it necessary? This is where data helps ensure your promotions reach the right place.
Introducing new products
Customers who frequently buy from a particular brand are ideal candidates for new variations or innovations from that brand. They’re “fans” and open to discovery. Suppliers know exactly which new products are coming, and together with wholesalers, they can coordinate product launches that encourage further brand engagement.
Winning back lost customers
Sometimes, suppliers focus on winning back customers they’ve lost, due to supply issues or because a trendy new product stole the spotlight. Wholesalers can help by identifying these lost customers and offering them ‘an offer you can’t refuse’.
Don’t lose sight of your own customers
There are also customers who used to buy from you frequently but haven’t done so in a while. There’s a chance they’ve shifted their purchases elsewhere. Most customers buy from 3 to 4 wholesalers, so if someone’s dropped off your radar, it’s time to re-engage. Reach out to understand why their spending patterns have changed—and how you can meet their new needs.
Collaborate with suppliers
Always make sure that wholesalers and manufacturers clearly define their goals together. Not to hold each other accountable, but to set mutual expectations. Evaluate each activation against these shared goals.
Look at KPI’s like:
- Number of purchasing customers
- Number of new customers
- Number of repeat buyers
- Revenue per customer
- Total revenue
Work on a well-supported category vision
A strong category vision sets you apart from competitors. It enables you to communicate a unique message to your customers. To successfully execute a category vision, close collaboration with your key suppliers—and up-and-coming innovative brands—is crucial.
Alone you may go faster, but together you go further
By joining forces with suppliers, both parties will grow. Set a shared goal. This provides direction for your category strategy and helps clarify agreements.
Ask suppliers to share their knowledge of the category. After all, you’re both category experts in your own way. Use that combined knowledge to drive growth.
- What trends are shaping the category?
- What are our key insights into the B2B shopper?
- What can drive growth within the category?
- How can the category become more profitable?
- How can this category become a USP within your wholesale business?
Share your data
Wholesalers tend to be conservative when it comes to data sharing, which might hold back the growth of the foodservice industry. Talk openly with suppliers about which data can be shared and for what purpose. In turn, suppliers can indicate what data they would like to receive and why. They can also explain how this data contributes to their role in the category. Working together keeps you sharp and helps you move forward.
What now?
Curious how much potential you could unlock by redesigning your product and category pages? Let’s explore the opportunities together. Reach out to GROUP7 for a free consultation.
Many of our customers, both wholesalers and manufacturers, ask for our help to move forward together. If we combine our knowledge and experience, we can quickly become the front runners in e-commerce.