Logo USP Marketing Consulting
a
M

SHIFT TOWARDS DIGITALISATION CAUSES CHANGE IN ORDERING BEHAVIOUR

So the ordering opportunities have increased. People are able to order online, but to what extent does that happen? For the European Mechanical Installation Monitor 2019 Q3, not only did we research where installers order and how much money they spend per channel, but also how they order. Is their ordering behaviour more traditional or online?

Traditional versus online

Zooming in on European countries, we see a clear distinction between two groups. In Poland, the UK and France, the ordering behaviour is very traditional. This means that installers order via telephone, fax, email, the sales representative or by visiting the store to place an order. In Belgium, Germany and the Netherlands, the share of online orders is increasing. In the Netherlands, this is already 50%. This can be explained by digitalisation being highly implemented in the Dutch construction process, such as Building Information Modelling (BIM).

Delivery versus pick up

Not only do Dutch installers order more online, they also get more of their orders delivered instead of picking them up at the wholesaler. Looking at the reception of ordered products per country in 2019, we see that 73% of Dutch installers had their order delivered whereas 27% picked it up. In that same year, 56% of installers in the UK had their products delivered as opposed to 44% that picked up their order at the wholesaler. These are expected results because labour shortage is much higher in the Netherlands. Also, the digital infrastructure is much better and Dutch installers are already used to it.

Importance digitalisation

Clearly, this shift towards digitalisation is important to wholesalers. But why are these results interesting for manufacturers? Firstly, by creating a strong online position, they steal the thunder of pure online players. Secondly, wholesalers do not lose any market share, because they also offer online ordering and delivery services. In the Netherlands this is already quite successful.

On the other hand, digitalisation of the ordering process has a disadvantage. Manufacturers rely on wholesalers to promote their products. The less installers visit the wholesaler on a daily basis, the less close their relationship becomes. Wholesalers depend on a good relationship with their customers, because it creates customer intimacy. Furthermore, traditionally, wholesalers are able to promote specific products and brands when installers visit them. When installers order online, their connection with the wholesaler becomes less strong.

Direct approach

Nowadays, it is becoming more important for manufacturers to connect with installers, because in some countries, like the Netherlands, most installers order online. Relying on wholesalers to promote their products becomes an issue in the long run, because the only way to reach the installers is online. Therefore manufacturers should get to know the installer and approach him directly. For more detailed information we refer you to the European Mechanical Installation Monitor 2019 Q3.

Recent news

For more information about our expertise and research on building materials please contact the responsible partner below.
We look forward to help you.

Research

Customer satisfaction

How to increase your turnover through customer satisfaction?

Branding

The more distinct your brand is, the more valuable it will become.

Customer journey

A customer journey is a customer's personal experience with your company.

Product development

Provide your product development and design team with end-user insights

Market exploration

Gain the insights you need to be successful in new and potential markets

Pricing

Pricing is and always has been the biggest profit driver. We help you setting the right prices for your product

Segmentation

Better understand the unmet needs of you (potential) customers, identify growth opportunities and reach your target group in an effective way.

Market size

Quantify the potential returns of your investment by understanding the market size and setting realistic sales targets for new and potential markets

Driver analysis

Know which elements of the customer experience have the most impact on overall satisfaction, recommendation, and retention.

 

News

​Read our articles based on the insights from our Market Reports. 

Case Studies

Market Research Case Studies and industry experience can bring background and thought to any research project.

Market reports

The following researches are available covering various markets.

About us

About what we do, our organization and our people.

About USP

What we do, in words and numbers.

Our team

The people who make USP.

Our vacancies

We have different challenging roles.