{"id":4003,"date":"2023-04-03T10:45:57","date_gmt":"2023-04-03T14:45:57","guid":{"rendered":"https:\/\/distributionstrategy.com\/?p=4003"},"modified":"2023-04-03T10:45:57","modified_gmt":"2023-04-03T14:45:57","slug":"how-ai-can-support-a-greater-customer-experience-and-drive-greater-margins","status":"publish","type":"post","link":"https:\/\/distributionstrategy.com\/2023\/04\/how-ai-can-support-a-greater-customer-experience-and-drive-greater-margins\/","title":{"rendered":"How AI Can Support a Greater Customer Experience \u2013 and Drive Greater Margins"},"content":{"rendered":"

If a $100 million distributor increases margins by just one-tenth of a point, it will gain an additional $100,000 per year. For distributors valued at $1 billion, the same increase equates to an extra $1 million annually.\u00a0<\/span>\u00a0<\/span><\/p>\n

Such a slight increase may seem simple enough, but it\u2019s probably no secret that improving margins is tricky. You can\u2019t raise prices without justification, or you risk losing customers. Today\u2019s saturated market makes it easy for buyers to shop for a comparable supplier with lower costs. Not to mention, higher prices don\u2019t always equate to higher margins.\u00a0<\/span>\u00a0<\/span><\/p>\n

Instead, consider your margins through the lens of customer experience. When you offer better service and a more consultative experience, you can justify price increases, improve unit sales per rep, and ultimately drive profitability.\u00a0<\/span>\u00a0<\/span><\/p>\n

To provide a truly robust customer journey, however, you need the help of artificial intelligence (AI).<\/span>\u00a0<\/span><\/p>\n

4 Ways AI Improves the Customer Experience<\/span>\u00a0<\/span><\/h2>\n

AI-powered software has revolutionized the way reps interact with their customers, enabling them to provide more personalized and efficient service. Below, learn four ways AI enhances the customer experience.\u00a0<\/span>\u00a0<\/span><\/p>\n

1. Offers a Consultative Experience<\/span><\/h3>\n

AI can enable sales reps to have a deeper understanding of each customer, their buying behaviors, and reorder needs \u2014 benefiting customers by providing a truly consultative experience.\u00a0<\/span>\u00a0<\/span><\/p>\n

For example, some distributors leverage AI to guide reps to meaningful customer conversations: AI can surface customers\u2019 potential needs to give reps a talk track for their call or visit. <\/span>Are they due to order some products? Are they underspending in a certain category?<\/span><\/i>\u00a0<\/span><\/p>\n

Then, once the rep is on the phone or visiting the customer, they can see specific AI-generated upsell and cross-sell recommendations from their computer or mobile device tailored to that customer. These product suggestions are based on years of historical data, item pairings, and products frequently purchased together.\u00a0<\/span>\u00a0<\/span><\/p>\n

Additionally, AI-powered semantic search crawls every single document a distributor has. So, if a rep is asked a specific question about one of the millions of SKUs in the distributor\u2019s catalog, it’s easy to find the answer. Reps can use semantic search to find information related to that product and offer a solution on the fly.<\/span>\u00a0<\/span><\/p>\n

When your sales reps understand their customers\u2019 needs and know which items to offer them \u2014 from a consolidated dashboard \u2014 they can add value at every step.<\/span>\u00a0<\/span><\/p>\n

2. Anticipates Customers\u2019 Needs<\/span><\/h3>\n

Some distributors leverage AI to enable proactive outreach. By analyzing all the customer\u2019s transactional data over time, AI can anticipate customers\u2019 needs and prompt sales reps to reach out. This allows reps to make helpful, proactive product suggestions before their customers even realize they need something.<\/span>\u00a0<\/span><\/p>\n

Suggestions can include:<\/span>\u00a0<\/span><\/p>\n