Want to attract millennials? Embrace technology.
By Mark Wilson
As Millennials start climbing the career ladder and step into decision-making roles at their companies, B2B businesses must learn to work with them in an efficient manner. Maintaining their loyalty and meeting their expectations requires a new mindset. Out with the archaic methods of solely relying on phone and email support and in with the new tech solutions.
The majority of people already use technology in their business lives but the big difference with Millennials is they grew up with the technology that many older generations are just growing accustomed to. This comfort level with on-the-go, real-time technology has led them to not only want, but to expect certain technological advantages in their daily lives – both personally and professionally. Other age groups may appreciate how technology has made their lives easier, but Millennials see that easier, more convenient way as the new norm.
Manufacturers and distributors are behind their B2C counterparts
With online portals being widely used in the B2C industries, today’s Millennial consumers are conditioned to rely on a retailer’s online portal for everything from paying a bill, filing a return or even getting in touch with a customer service team. However, the manufacturing and distribution industries have been slow to adopt this tech-centric mindset to fit
today’s new customer base. Instead, they continue to only offer out-of-date technologies to communicate and do business with their customers – something that must change as more of their business goes to younger and more tech-savvy clients.
According to a recent study we did at TermSync, only 30 percent of distributors offer some type of online customer portal for their customers to access. Yet, the vast majority of Millennials prefer a web option to calling or emailing customer support. In the end, as companies continue to face more and more competition, not meeting these customer expectations will lead to customers jumping ship and finding new vendors who are willing to spend the time and money to make their lives easier.
So what’s this mean for manufacturers and distributors?
As Millennials continue to take on more responsibilities at work, it’s time to start embracing the technology they have come to expect. Obviously, 100 percent of customers are not going to transition to the new tech solutions, but a good percentage of them will.
With younger generations, their first thought when they have a question for a vendor is not to call and waste time being placed on hold for five minutes before getting passed around to three different customer service representatives. Instead, they go online, log in, and either figure out the answer to the question themselves or submit their question where they know they’ll get a response in a timely manner. In fact, more times than not, when a question arises and there’s not an online option available, many customers won’t even bother to pick up the phone. They’ll just wait for the vendor to call them looking for the payment. At that point, the bill is already 15 or 30 days past due, something you could have avoided with a more reliable self-service model.
It’s not about getting rid of phone or email support, but rather it’s about giving people another option. Businesses will hear from more customers and they will be happier because they were given the option they prefer.
Technology isn’t only for Millennials
Let’s also not forget that it’s not just the younger generations who would enjoy this type of web-based service, but many of the older generations as well. Technology is always associated with Millennials, as they’re the ones who grew up with it and therefore expect services like this, but many members of older generations are getting more comfortable in their personal lives with technology and are starting to get in the habit of first turning to a website or online portal to find the answers to their questions. In fact “The Effortless Experience: Conquering the New Battleground for Customer Loyalty” shows us that 52 percent of people ages 41-50 prefer web over phone and 47% of people 51-60 agree.
In the end, it all comes down to being easy to do business with. Everyone’s busy, including your team, so don’t make customers jump through hoops just to get their order corrected or a question answered. We all like to provide a personal touch and nobody is suggesting that is a bad thing. However, there are times where customers just want to get their issue resolved and move on with their day. Provide them with options so they can choose the best fit for them. The companies that will succeed in the coming years are the ones that realize technology does not come between them and their customer, it actually enhances the relationship by making their lives easier.
Mark Wilson is the chief executive officer of TermSync Inc., a cloud-based accounts receivable platform. Over his career, he has always focused on process improvements as a way of not only reducing costs, but also increasing efficiency and improving internal and external relationships. Mark is a licensed certified public accountant. He received his MBA with an emphasis in finance and his undergraduate degree in accounting from the University of Wisconsin-Whitewater.
This article originally appeared in the March/April 2014 issue of Industrial Supply magazine. Copyright 2014, Direct Business Media.
INDUSTRIAL SUPPLY MAGAZINE
The November/December issue of Industrial Supply magazine features an in-depth cover story about Kimball Midwest. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and Mike Marks, as well as interviews with numerous product and distribution industry experts.
