News

New York, N.Y. October 2008 What does it take to get the attention of professionals shopping for industrial products or services—anything from metal stamping services to lab equipment to pumps and valves?

A new survey from ThomasNet shows the answer lies on the web, with those suppliers who provide sophisticated detail, searchable information, easy navigation and intuitive functionality in their websites.

The ThomasNet survey shows that 50 percent of buyers will choose one industrial supplier over another based on the quality of their websites. Yet, suppliers are not sufficiently vigilant about ensuring that their sites capture these buyers, draw them in, and keep them from defecting to the competition.

The study is a deeper dive on research the company conducted three years ago that showed disconnects between what buyers needed online and what suppliers thought they wanted. This time, the learnings show that although suppliers are leveraging the Internet, their target buyers have become increasingly sophisticated in their sourcing patterns.

"The data shows that the game is over, and industrial suppliers can no longer afford to be complacent," said Linda Rigano, Director of Strategic Alliances, ThomasNet. "Suppliers need to treat their site as a critical sales channel that aligns with their overall business objectives. A website in the industrial market is not a promotion or marketing vehicle, it’s a sales channel that is all about giving buyers and specifiers the necessary information they need to make a purchase."

The online survey, conducted last spring, delivers insights from 1,862 purchasing agents, engineers, maintenance/repair/operations professionals, and managers who spend $1.7 billion annually on industrial services and products. In addition, ThomasNet surveyed 750 small to mid-sized suppliers averaging $68 million in revenue, with a median of $7 million.

Giving Buyers What They Want

What will engage these buyers and move them to the point of purchase?

"The information is no different from what buyers traditionally asked for on the telephone before they had websites to consult," said Ms. Rigano. "Today, the difference is that websites are replacing human contact, but buyers still expect to have their questions answered."

Top requirements for these buyers, whether it’s for a stock or custom product or service, include:

• Detailed information - Descriptions/specs, pricing, data sheets, availability/lead time, searchable catalogs, CAD drawings, capabilities, quality assurances, materials, locations, tolerances, and equipment.
• Sophisticated functionality - Technical support, ability to compare/evaluate products, keyword/part number searches, print formatting, download/insert CAD drawings, request samples, send RFQ’s, upload/enter and submit specs, and compare processes.
• Sales/administrative information - Shipping and inventory/delivery options; distributor locations; standards/military specs/certifications; payment/refund/exchange policies; quality assurance; regions served; and customer recommendations.

Supplier Misperceptions; Buyer Frustrations

Suppliers underestimate how central their sites are to today’s buyers. About 70 percent of buyers report that company/supplier websites are one of their top starting points for sourcing—but only 52 percent of suppliers believe that they are. Perhaps that’s why the ThomasNet data shows these suppliers still need a "jolt" when it comes to executing on their websites. Forty-two percent of buyers feel that they are still underserved by the sales information buyers provide online. Buyers express several frustrations with supplier sites—including registration requirements, poor search functionality, and a lack of specific information, drawings and dimensional data.

"The revenue opportunity for industrial suppliers leaps off the pages of this study. Buyers want to do more business online with suppliers, but slam into crazy-making brick walls on supplier sites these findings into their online practices stand to capture an outsize share of this pent-up and frustrated buyer desire to source and buy online," said Chuck Richard, vice president and lead analyst, Outsell, Inc. " Outsell, a research firm for the information industry, conducted the ThomasNet research.

Closing the Buyer-Seller Gap

The ThomasNet research shows that suppliers are taking steps to catch up with buyers’ needs, but they also express frustrations with online sales. Among their primary difficulties are determining where to focus for the best return on investment (ROI), how to turn online visitors into customers, how to make changes based on metrics, and working within tight budgets.

"We surfaced important findings about the content, navigation and functionality that buyers expect, and that industrial companies must offer to stay in the game. We advise suppliers facing these challenges to step back—and start looking at their sites in the same way that they look at their top sales performers. Begin by setting objectives, as well as metrics for success. Then, the supporting strategies, tactics, and priorities will fall into place," said Rigano.

ThomasNet’s (www.ThomasNet.com) Web Solutions Group advises industrial suppliers on how to turn their websites into a 24/7 sales channel. ThomasNet has trained engineers and web marketing experts who work hand-in-hand with suppliers on their specific sales challenges. They consult and assist with Web content, graphics, functionality, search engine optimization, product catalogs, 3-D CAD drawings, results measurement, and more. Companies that would like information should call 1-866-585-1191 or see http://promoteyourbusiness.thomasnet.com.

About ThomasNet^SM

ThomasNet (www.ThomasNet.com) is the leading online destination connecting industrial sellers and buyers worldwide. Buyers from Fortune 500 companies, the government, the military and more depend on ThomasNet to search for and purchase the products and services they need. ThomasNet provides access to over 607,000 industrial companies, indexed by 67,000 product and service categories, and featuring over 20 million CAD drawings that help buyers find products to meet their specifications. Industrial manufacturers and service companies are successfully using ThomasNet to grow their businesses, discover new markets, develop new customers, and uncover new revenue sources. Drawing from the company’s experience in the industrial market and ongoing research on buyers’ and sellers’ needs, ThomasNet has helped thousands of clients create websites that incorporate online catalogs, CAD drawings, and e-commerce capabilities.

Contact: Dawn Ringel, Warner Communications
781-449-8456 or dawn@warnerpr.com