Why must electricians adapt to a new digital world? | BUSINESS
The power distribution business has been the same for decades, with little change in the way electricians and contractors work.
The pandemic has shaken this up quite a bit, with a surge in online sales for electrical appliance brands, retailers moving to e-commerce, and electricians and contractors having to order products over the internet.
The past year has fundamentally changed the way the electricity distribution channel works. Increasing digitization has changed everyone involved – from manufacturers and dealers to electricians and end users.
In most countries around the world, more than 50% of electricity purchases are now made online. This has forced the electricity marketers to significantly overhaul their business model. And we expect that these numbers will soon be commonplace in golf as well.
Transformation drivers beyond digitization
In addition to digitization, several other factors are changing the landscape of the electrical duct market:
· · Market concentration: Through mergers and acquisitions, dominant players are consolidating with the aim of increasing market share, adding technical know-how and / or expanding the range of services with added value.
· · Price transparency: E-commerce increases price transparency regardless of the purchase channel and puts traditional sales margins under pressure as offline and online prices converge.
· · New Technologies and IoT; Customers are looking for more sophisticated and technically more complex solutions such as smart home / building concepts where the dealers and electricians who operate them need to develop new skills.
These trends are forcing dealers and electricians to reevaluate their business models and add more services and solutions to strengthen their value proposition and reduce customer churn.
Support tomorrow’s winners
We recognize the challenges that integrators face on their transformation journeys and are committed to ensuring that they become future-proof actors in all the changes. To guide and support our partners in developing their business model, we offer our sales partners the following advice:
· · Understand your customers’ needs. Identify the main pain points for your customers – retailers, electricians, ELV and CCTV providers, panel builders, contractors, OEMs of facility managers – and align your internal processes, including IT, with these requirements so that you can find efficient and agile solutions for this can provide real problems. Invest in a robust CRM tool to collect the data you need to understand and act on the market.
· · Take an omnichannel approach. Combine your physical and digital models to meet different customer needs. Apply digital marketing strategies based on the data generated by your CRM to better respond to market demands and opportunities.
· · Strengthen your digital presence. Improve your digital visibility throughout the entire customer journey with tools such as online catalogs, configurators, high-quality content – photos, videos, tutorials, etc. – and especially smartphone applications.
· · Specialize in added value. Create more value for your customers – and higher profits for your business – by developing new skills in areas such as industrial automation, energy efficiency, smart homes and buildings, project management, custom logistics, training, and predictive and corrective maintenance.
· · Strengthen your core values. Don’t lose the traditional values you’ve always offered your customers – local service, product knowledge and availability, and your understanding of their business. With all the changes in the industry, these remain important differentiators.
· · Prepare for the future. Offer training to steer digital transformation and add more value to your customers. Deliver this online.
· · Build a partner ecosystem. Create alliances and partnerships with companies and brands that complement your offerings and provide the innovation and support you need to be successful in the future.
Together into the future
The future is bright for those power channels that are transforming their business to respond to emerging industry trends and the changing needs of their customers. And since implementing some or all of the above recommendations can be challenging, power distributors support their distributors every step of their journey by offering them:
· Industry-leading uninterruptible power products for single & 3-phase
· Overvoltage protection series from single to 8 sockets
· Immediately available stock at the dealer
· Programs and training to help dealers specialize
· Content and materials to accelerate the digitization of your business
· Competent technical and advisory support whenever it is needed
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