Relationships are worth more than you think
Part of your job
We meet many people who believe if they have a great product, they are guaranteed success. Yes, you need a great product; no, it does not guarantee success. A big part of your success is your ability to develop good relationships with your customers, the retailers and distributors who buy your products. This is part of your job, 52 weeks every year. When you create a to do list or any other tool you use to stay on track and get things done where do you put the tasks required to develop a strong relationship with your customers? Yes, you need to produce products and yes you need to pay your employees and yes you need to re-design your website. It can be too easy to do those things first, sometimes they really do have to be done. You run out of hours or energy and the relationship building gets pushed to another day. We have to figure out how to make it part of your job and improve the relationships you have with your customers.
We can help
At SKUFood we try to find opportunities to help food and beverage producers and processors get their products on the shelf and into the shopping cart. Your relationship with your customers is one of the most important pieces in the puzzle of getting on the shelf and finding opportunities to get into the shopping cart.
We created a list of 40 different touchpoints you can have with your customers. You can use this list to plan how to build your relationships. When you step back to be strategic you have a lot of opportunities to interact with your customers.
The first part of our list is dedicated to personal interactions. These are opportunities where you have direct contact. The other items on our list are passive interaction where you can influence the relationship from a distance. They are all valuable. We have created a one-page planning document for you to use. Don’t over think it but be strategic.
A few misconceptions to dispel
The only time you develop these relationships is when you pitch your products. Yes, these are very important meetings and you should do as much as possible to prepare and do a great job. A great product presentation can get you on the shelf. Your work is not done. You need to keep working at the relationship as soon as you leave the meeting. Your customer will not have a great impression of you or your business if you just come in, present your product and become hard to find.
You are going to bother them. They will let you know if you are bugging them. Retailers are focused on operating stores and generating sales and profit. You can provide a lot of information to help them understand consumers, the category and what is happening in the marketplace. Do not tell them how to do their job but become a trusted resource.
They are focused on the big suppliers. It is true the big companies have a lot of money to spend. They also have the resources to generate programs and participate in ads. On the flip side they all sell into most large retailers and it is tough to generate something interesting or unique with Heinz Ketchup or Campbells soup. Price becomes the default. With small to medium sized suppliers, they can find opportunities to differentiate and drive traffic into their stores.
Your great product will overcome poor execution. As we said earlier a great product is a requirement. There are many great products out there. They do not all maximize the opportunity. Retailers judge execution with their criteria and you should too. Execution to them would be service level, 0 issues with packaging, 100% scan rate, great sell through, lower than category average shrink and 0 compliance fines. Measure your business with their criteria, not yours.
Only money talks. Money does talk and there is no doubt suppliers who have the ability to spend more will get attention and opportunities. As we have discussed a lot lately, consumers are focused on finding products from Canada, produced in Canada with Canadian ingredients. Make sure they understand your business and your products. Consumers want them, so retailers want them. Now is your chance and make sure you do all the other things they expect so you continue to get opportunities. There has never been a better time to get consumers and customers to buy your products.
Building the relationship
Over the upcoming weeks (unless we are interrupted by more trade issues) we will focus on helping you build prosperous relationships with customers. We will cover the big in person meetings and even help you turn some bad situations into relationship building.
Peter
SKUFood Recipes for Success Podcast
In this episode we are joined by Cheryl Donnelly, Senior Market Development Officer at Agriculture and Agri-Food Canada (AAFC). With 14 years of experience in international affairs at AAFC, Cheryl has been instrumental in driving market development strategies and initiatives in regions such as the EU and the Middle East. Her expertise extends to leading the modernization of AAFC's Canada Brand Program, aimed at promoting Canadian agri-food and seafood products on the global stage.
Cheryl has a proven track record of success, having led e-commerce and digital marketing campaigns in Japan and Vietnam as part of launching the Canada Brand internationally. Currently, she's focused on the Indo-Pacific region, devising strategic approaches to help companies capitalize on export opportunities.
Join us as Cheryl shares her insights into export trade, market
development strategies, and the importance of the Canada Brand in promoting Canadian products globally. Whether you're a seasoned exporter or new to international trade, this episode offers valuable lessons and strategies for success in the ever-expanding global market.
Walmart Canada growth summit
Getting listed at Walmart can be a challenge. They are big and they have a lot of expectations for suppliers. They also do a lot of volume and our experience would be they are less complicated than some other retailers.
They are hosting the first growth summit for Canadian suppliers. No doubt in response to consumer demand for more Canadian content on the shelf. Walmart and Costco do a very good job responding to consumers and changes to trends.
FCC Winning in Retail- Guelph, ON
April 23rd
Retail can be a grind, but in this one-two-punch seminar, you'll gain key insights to get your products out the door and into the hands, or bellies, of your customers.
Really looking forward to partnering with Matthew von Teichman, Co-Founder Purplesful Snacking, to share the current trends of the retail landscape and actionable strategies for your business.
SIAL 2025
Excited to share the stage with Jo-Ann McArthur from Nourish Marketing and Sophie Cote from Innova Market on April 29th at SIAL in Toronto. We are part of the Trends and Innovation track. We will each deliver a 30 minute session to help you understand what is happening with consumers in the market and how to leverage the innovation and Canadian roots to get on the shelf.
Where is Peter speaking?
I do have travel coming up to Toronto, Guelph, Saskatoon and Calgary so if you want to connect or have an event in any of these locations give me a call or send me an email.