We have noticed, everyone and their proverbial brother is tossing out examples of greatness these days. Let’s call them best practices; many people are turned off by the whole best practice thing. Lots of times these are simplified to the point of providing little, if any, value. Other times, the best practices aren’t right for your organization; for instance, one best practice calls for a team of six people to manage all the aspects of the distributor’s online solution. For the small and mid-sized distributor this makes about as much sense as the legendary football bat. Over the course of this newsletter, we have tried to provide suggestions which speak to how your organization can accelerate its success. Indeed, looking back, we might have even used the term “best practice” in our communications, if so, forgive us. The road to a successful ecommerce launch is fraught with potholes, washouts, and other obstructions; and we want to help. Borrowing from the old hit movie  National Lampoon’s Vacation , we thought it might be nice to provide a collection of “Worst Practices” to help you avoid driving the “Family Truckster” off the cliff in your journey to online success. Worst Practices: The best bad examples to avoid in building your online platform. A build it and they will come mentality.  Over 150 years ago, Ralph Waldo Emerson made the statement, “build a better mousetrap and the world will beat a path to your door.” It should be noted, Ralph was one of the smartest men on the planet, but not necessarily an astute businessman. Putting up a webstore, or anything else, on the internet then hoping, praying, or expecting it will be discovered has proven to be a universal problem. The new motto should be this – build a better mousetrap, advertise it, market it, talk about it on social media, and continually blast the message to the world; then the path starts to form. Don’t allow the sales team to learn or participate in the launch.  Some folks have gone out of the way to keep their sales teams (and customer service) away from digital initiatives. Reasoning, the digital progress will take care of itself. A few misguided managers have publicly stated there would be no commission paid on orders placed online regardless of the customer. Want your sales team to sabotage your efforts? Follow this rule. Separate online customers from “real” customers.  Here’s a newsflash: your “real” customers want the convenience of using a digital platform, too. An online system allows customers to choose their favorite or most convenient method of buying. Email, phone, fax, webstore, or carrier pigeon does it really matter? Leave the launch entirely to your IT department.  There is a fair chance your IT group contains some of the best and brightest people on the planet. However, there is a powerfully greater chance they have never sold anything in their lives. True, your ecommerce platform is computerized and digital, but so is the phone system. Would you ask your IT group to teach you how to answer the phone? Probably not. The phone and now the ecommerce system are sales tools. Put a person with sales background in charge of your efforts. Only put a few of your products onto your site.  Twenty percent of our products represent over 80 percent of our business. Why confuse customers with massive selections when they only need a handful of our offering? Customers buying oddball stuff are kind of a pain anyway. Well until you consider the value of picking up a new customer who cannot find what they need at the competitor. Leave it and forget it - Monitor the system as little as possible.  The reasoning goes… We are putting up a top-notch system, we will launch it and then come back sometime later – much later. In the meantime, new products have been rolled out. Some of these folks never check their emails, either. It does not take massive time to keep your system sparkling and vibrant, but hey we are short on time. Ignore the data generated by the system.  Everyone keeps saying they are getting extra leads, a better understanding of their customers, and lots of other good things based on the search results and buying habits of customers. After giving the information a quick once over a week or so after going live, some decide it is just not worth the effort. One might imagine how many valuable new customer prospects found their way to the competition. Worst practices or a lesson in negativity? Those of us at KYKLO hope you aren’t shaking your head and wondering if we got up on the wrong side of the bed this morning. The truth is we just wanted to have a little fun and shed some light on the things we recommend you not to do. We have a million ideas to help you put your online business in high gear. Give us a call, we promise we won’t talk about Chevy Chase movies – unless you ask us to. SCHEDULE A DEMO

KYKLO understands the nuances of e-Commerce. We have assisted distributors in pushing their efforts forward literally around the globe. Pulling on the old axiom, distributors are “middlemen”, we have evaluated the needs of customer segments, sizes, and buying influences. Determined to continue our journey, we decided to take a deeper look at the distributor’s other partners role in the digitalization process. Applying a scientific process, we began evaluating the positions of a select group of manufacturers. Our discovery?  Manufacturers range from great to dismally ill prepared for the future. Introducing The Manufacturer Omnichannel Index.  The detailed methodology accesses the following six critical success points: 1. Share of Voice  – The SEO component of the manufacturer’s website. Can a customer hear your message on an internet where hundreds of others seem to be shouting at the top of their lungs? 2. The Home Page  – Does your front door portray what you might expect from the company? 3. Discovery  -– How many clicks does it take to get to a product? Can users search for keywords and specifications and receive search suggestions along the way? Are you able to filter search results based on technical attributes? 4. Advanced Discovery  – Once on the website can customers find precisely what they need? Are there product comparators, configurators, and other tools to help a confused customer make the right choice? 5. Product Content  – Does your website provide all the data needed for a selection? Are there pictures, the right specifications, dimensions, and electrical/mechanical properties to really make the right selection? 6. Conversion  – Does your site actually encourage a customer to buy? We all have competitors, and some may have products nearly as good yours. Why should they select you over one of the other guys? Harnessing the Judgement of Experts  The Manufacturer Omnichannel Index applies not only algorithms but also includes the expertise of KYKLOs team of Senior Engineers. This select group has the unparalleled experience of having developed enriched product data for over 2.5 million SKUs in the electrical and automation space. They know products, what it takes to attract customers, and the environment needed to drive conversions. Comparing 100 Manufacturers  Benchmarking is a time-honored business practice. It is not enough to know where your company stands, you need to know how you stack up against others. In the digital world, companies are not compared against the guy across the street, down the road, or even in companies in the same industry. The comparison is universal. We created the index with a hand-selected group of manufacturers who are partners or competitors of partners of our client base. A global mix of companies like Schneider Electric, Rockwell Automation, ABB, Mitsubishi and Festo were selected. Quite honestly, the list is a who’s who of the automation industry. In case you are wondering, one point became exceedingly clear, size of company is not necessarily an indication of performance on the Index. A sneak peek at the results:  A full 75 percent of these leading manufacturers do not have individual product pages on their websites. This is a big deal. Customers do not search for product families, instead they want to receive the full information on the products considered. This leads to customer frustration, and it could be surmised at least some customers go elsewhere. Even more surprising, 95 percent of these manufacturers have a search engine geared toward product/brand names rather than keywords. New customers, or at least those unfamiliar with your brand struggle to find what they need without keywords. This seemingly small blunder costs the manufacture important leads. Here is a point to ponder, 90 percent of manufacturers have less than half of their published US price list searchable on their website. We are not referring to prices, instead it is about products listed. Cross checking products on the price sheet against products detailed on the web, we find amazing gaps. Over half of products which are clearly available and for sale receive no mention online. Experience dictates a “long tail” of products attract customers. When manufacturer organizations fail to deploy and maintain their full product offering on their digital portal, new business suffers.  Wondering how you scored?  We would like to share your organizations performance on the Manufacturer Omnichannel Index. We can demonstrate how you might improve your score and, more importantly, open the door to new customer opportunities and greater growth. Give us a call!

Women in Engineering at KYKLO  June 23rd was Women in Engineering Day. International Women in Engineering Day (INWED) is a special day for women engineers to celebrate their achievements. Possibly more important, it is a day for those who work with these talented folks to recognize the contribution of their female colleagues. We at KYKLO are blessed with a great engineering team. Further, 11 of the 21 members of this team are women. Why is that a big number? Globally women engineers only make up around 22% of the workforce. In Asia, where our engineers are located, that number is a staggering 11%. We are proud of our team and equally proud of our ability to attract and retain some of the most talented women on the planet (KYKLO has women engineers from three different continents). To commemorate the day, we decided an interview a couple of members of our team would be appropriate. Considering KYKLO came into existence in 2015, both are long-time employees with four and six years of experience. Allow us to share a few of their comments. Elle joined KYKLO four years ago because she wanted to work in a technology company. Prior to joining our organization, Elle worked in a manufacturing/factory environment. She describes her experience:  “I used to work in a factory for a multi-national manufacturer. The culture was different. I was one of just a few female engineers on the team and the youngest engineer, as well. Overall, my experience was good because I had the opportunity to learn about complex machinery and automation.” Pia began her work with KYKLO in 2016, less than a year following the company’s launch. Pia said,  “I wanted to work at a start-up company and discovered KYKLO. The fact that we are an international company will provide me with many future opportunities for career and personal growth.” Both women like the KYKLO environment. Elle says,  “Joining our company was different as we have a lot of female engineers in the team. I found this very, very cool. It is a fun and friendly culture, and we get to work with talented people from many different countries and backgrounds.”  Pia added,  “I enjoy my role and there is space to improve your skills. For example, I have learned more about engineering, coding, and analytics than when I started. My boss is the kind of mentor everyone looks for in their career. And my colleagues are kind and support one another which illustrates our culture.” Each of these ladies had advice to pass along to other women considering a career in engineering. Elle: “The best advice I could give young girls who want to become an engineer is this, develop your passion for engineering, have a positive attitude, and always be ready and willing to learn.” Pia: “Everything in engineering is about learning and practices. Nothing is too hard when you put enough energy into each try. I graduated from the Faculty of Liberal Arts but came to the engineering field by chance, but totally enjoy it. This was especially true when I started to recognize electronic components for both their composition and function. I believe, you too will enjoy the process.” Join KYKLO in Celebrating the Accomplishments of Women Engineers  If you are a women engineer, we salute you. If you work side by side with one of these fine ladies, pause for a moment and think about how they enrich your life. If you are a young woman thinking of a career in engineering, allow us to provide you our heartfelt encouragement. And finally, if you are a KYKLO partner or client, ponder this, over half of the engineering that goes into your system was developed by a female member of our team. Until next time, join us in commemorating the females in science – women engineers. SCHEDULE A DEMO

Can you name a 100-year-old company launched as a bicycle and sewing machine repair company? Here is a hint: Today this company is a leading provider of advanced sensors, networking with IO-Link, and today plans on leading the charge in digitalization and IIoT. Give up? The answer is Balluff. Following this history of boldly moving forward, Balluff has teamed with leading distributor digitalization experts at KYKLO to assist Balluff Distributors in expanding their growth. Balluff Director of Channel, Clayton Webber, sees this as critically important. In Webber’s own words:  “E-Commerce and digitalization equate to must do strategies for value-add distributors. Long ago someone told me, it is important to be where the customers are. Years ago, that was trade shows and engineering society meetings, today customers populate the internet. Research tells us customers are moving away from catalogs and sometimes it is an awkward journey.” Mr. Webber believes a good internet presence drives two important things for a manufacturer and distributor: awareness and discovery. Awareness that products are available, a constant reminder of the breadth of the product lines available, and a subtle reminder of key brands. The discovery comes as unknown customers identify the distributor as a new potential supplier. Simply put, new sales leads are generated as customers search the web for solutions. Thinking more about the discovery part, a distributor webshop brings in what Clayton calls “Time and Place business.” A customer is in desperate need of a part and needs it as soon as possible. A website showing products in stock locally naturally attracts this kind of business. The distributor not only makes a sale but gains a valuable lead for future sales. Automation is exploding. Perhaps driven by COVID conditions or forecasted labor shortages, automation is moving into other industries, businesses with no history with automation technologies. Webber made this point, “The traditional distributor model simply cannot keep up with this explosive spread of technologies and new customers using automation. Further, the current distributor model does not provide the economics to chase applications into these fringe areas. If Balluff distributors do not serve these emerging markets, somebody else will. Most likely, the customers will find them via the internet. A solid digital presence heads this threat off early. This means more customers for Balluff and more customers for our distributors.” Balluff supports their partners distributors using KYKLO’s on their digital journey in a variety of ways. This detail plays into Balluff’s desire to be known as the leader in the sensor and digitalization business. Part of being the leader means having a channel made up of top-notch distributors who are also seen as the leaders in the business. The two go hand in hand down the path of supplier excellence. Distributors armed with world-class webstores serve as the front line of discovery. Every time a customer discovers the distributor, whether in their search for a sensor or some other piece of the automation puzzle, they also discover Balluff. Aggressive follow-up of the lead converts an “internet browser” into a dedicated long-term customer enjoying all the other services a knowledge-based automation distributor provides. Looking into the future, Webber sees a time when distributor digitalization provides what he calls “insightful data.” Data which provides both the distributor and Balluff with information like, what kind of potential customers are looking at products, what are reviewing versus what are they buying, and how are various products tied together in product searches. Distributors and their Supply-partners armed with this information make better decisions on inventory, product launches, and marketing activities. Remi Ducrocq, KYKLO’s President and Co-Founder, made this comment: “We at KYKLO love to partner with organizations who share our vision of the future. Our distributor clients are better served and partnerships with industry leaders like Balluff build a solid foundation for all of us prospering in the future. We are honored to have Balluff join our family of friends and business allies.” ABOUT KYKLO Headquartered in Bangkok Thailand and Buffalo, New York, KYKLO provides a state-of-the-technology solution to distributors via a cloud-based eCommerce platform. Unlike traditional suppliers who provide an unpopulated webshop and require the distributor to supply product data, KYKLO provides rich product data for nearly 2 Million SKUs. All a distributor need do is connect their ERP (Business System) to KYKLO’s system. Every KYKLO client receives in depth guidance and ongoing coaching tied to engaging customers with their ecommerce platform. Additionally, they provide best practices for using the system for generating quotes and assisting inside salespeople in product selection. SCHEDULE A DEMO

Like the swallows returning from their 6,000-mile trip to Argentina to the mission at Capistrano, face-to-face association meetings are returning. We are so happy about the situation that we are walking around the office with giddy smiles and goofy grins on our faces. We attended the Spring 2021 AHTD Meeting. For everyone there, this was a sneak preview to the “New Normal”. Masks were at the ready, hand sanitizer showed everywhere, but the painful dread of a COVID cell sending us to the hospital was not blatantly hanging over our heads. Most of the attendees had at least one of their vaccinations and while precautions were taken, the atmosphere was abuzz with normalcy. We enjoyed the session. Here is a short list of why we had such a great time:•  Zoom/Google Meets/MS Teams Burnout. We have all been totally, exhaustively burned out by these meetings. While “zooming” in these meetings and seeing our friends’ faces is better than an email or a phone call, the experience is lacking. The nature of the meetings insures, we stick to an agenda. While the agenda thing is efficient, there is often no time for the kind of brainstorming required to create really good ideas.•  Room to better understand our clients as real people. People are not just talking heads. When in the presence of others, you pick up the small things that make life interesting. In a relaxed setting like the “World Famous” KYKLO Beer break, you learn more about clients. For a quick moment, business is eclipsed by hobbies, stories of their families, and interests outside of work. Mutual interests are discovered, explored, and deeper trust established.•  Meeting new people. It never fails, we get to meet new people. The cool part is many of these folks have heard about us from an existing client. When people feel strongly about the services and solutions you provide, they tell others. New friends with old friends in common equals the brass ring of this merry-go-round we call life.•  Ideas, new ideas, and innovative ideas flow like beer at Happy Hour. The association meetings we attend have some very thought-provoking speakers. The breaks and networking time is filled with stimulating conversations. Will the idea work? Does it apply to our business? Would others on our team embrace the idea? We find ourselves surrounded, perhaps immersed in an articulate discussion of these potentially life changing matters. Frankly, several have gone on to become part of the KYKLO experience. Association meetings are only a fraction of the interactions we enjoy. Many of our trips involve KYKLO’s ongoing dedication to creating successful digital solutions with distributors from sea to shining sea, and across the fruited plains of North America. Each trip is a new opportunity to better understand the many facets of distribution. KYKLO clients range from some of the smallest and most specialized distributors to larger broad-based wholesalers. While the far-reaching goal of these companies is to match their solutions to customer problems, each of these enjoys a unique personality, and often, a very customer focused value proposition. Seeing, listening, and observing, the KYKLO team can pick up on how to better help the distributor push their own brand of service out via ecommerce. Further, speaking having a one-on-one with the client’s team always uncovers a few opportunities for us to help, but this is not a one-way thing. In these relaxed settings our clients share thoughts on system improvement and processes for training new members of a client’s team. As we cruise into summer, we at KYKLO look forward to warm days, cool nights, and family get togethers, but we are also looking forward to walking up, tossing out a firm handshake, fist bump, or whatever salute you prefer and seeing you live and in person. Distributors using KYKLO can be sure their top vendors have the proper (approved and vetted) product content. This includes new products, and new features added to the product. With KYKLO all of this is part of the “plug and play” format of the system. Let’s press the flesh, soon! SCHEDULE A DEMO

Progressive manufacturers have long realized the value of developing and driving joint marketing plans with their distributor partners. When manufacturers and their channel work together, both parties prosper regardless of the business climate. In times of brisk economic growth like we are experiencing right now, joint marketing not only yields growth, but it also drives market share for both the manufacturer and the distributor. Research during the Pandemic makes one point perfectly clear: customers have changed their buying habits. The internet has replaced their dog-eared collection of vendor catalogs. Customers, whether OEM, End User, Panel Builder, or Systems Integrator, are researching purchases online. When they do not know which product to purchase, gathering the information online has moved to the most preferred method. Manufacturers who have partnered with KYKLO have discovered they and their distributors can move their products to the front of the pack. Manufacturers struggle to create and amalgamate the types of product content distributors need to build their webstores. Sadly, this content space has been occupied by companies who “scrape” information from the internet often leaving out important buying criteria – this does not help the effort. KYKLO provides a manufacturer with a single point of contact for all-important product content. By providing a trusted and vetted content/solution, KYKLO removes workload from the manufacturer. In addition to the right product description, pictures and data required for customers to make buying decisions, KYKLO assists distributors in efficiently launching a webstore. KYKLO becomes the go to organization for simplifying the distributor’s decision as to the right organization to work with in developing their webstore. When the distributor partners with KYKLO, the manufacture can be sure the distributor has data on the latest products and any revisions to the products will be quickly added to their system. Thinking purely on the health and productivity of distributor channels, a manufacturer whose partners sign with KYKLO no longer needs to worry about a distributor sinking hundreds of thousands of dollars into a webstore which may or may not work. Further, webstore projects can be massive distractions for the leaders of the distributor. Time is lost; time which could better be invested in customer-facing efforts. Finally, a manufacturer aligned with KYKLO can prioritize the content and even make featured products easier to find in common searches. This point comes in handy through new product launches and times of special promotion. But this is not all about manufactures. Distributors using KYKLO can be sure their top vendors have the proper (approved and vetted) product content. This includes new products, and new features added to the product. With KYKLO all of this is part of the “plug and play” format of the system. Joint marketing brought into the 21st Century We launched this article with a few comments on joint marketing. For decades, joint marketing programs consisted of funding for things like local trade shows, and promotional events. Co-op programs played a big role in the mutual funding of these events. However, when time got short, golf balls and polo shirts were used to fill in the difference between funds invested and funds unspent. While the value of golf balls is up for debate, no one can debate the value of a mutually funded web-presence. A growing number of leading distributors are earmarking a portion of their Co-Op funding to assist distributors in their efforts to go digital: KYKLO can help accelerate this change. SCHEDULE A DEMO

Close your eyes and think Panasonic. The word conjures up dozens of images; everything from high-end televisions, microwaves, phone systems, and cameras may swirl through your mind. Panasonic is one of the largest and most diversified high-technology manufacturers in the world. Not just a consumer product company, they are immersed in technologies tied to smart mobility, sustainable energy, supply-chain management, and automation. For the moment, let us talk automation. Panasonic has joined KYKLO in furthering the boundaries of automation distribution. Speaking with Josh Ardus, National Group Sales Manager, and Erwin Wu, Director, of Panasonic, we gained some important insights. For instance, we learned this: Panasonic believes distribution is critical to their success in the automation market. More importantly, they strive to assume a servant leadership role with distributors, often encouraging them to make moves which not only improve the Panasonic position, but the results with every supplier on their line card. These thoughts came to life in a quote from Erwin Wu: “We asked ourselves how do we help distributors grow and add value to the market in general? The automation environment is changing. Customer feelings about major brands are shifting. There are shifts in the messaging required from the distributor, and a need for the distributor to reach out and connect with new customers. We see this partnership with KYKLO as a tool for distributors. A tool that Panasonic can put into their hands.” But that is not the whole picture. Josh Ardus added: “We know the direction of the industry as it embraces webstores. This is a trend that is not going away after the Pandemic. Nobody argues that web-based information is a fad. Someday, a robust web presence will be as important of a requirement as a phone was in the 1960s. We see this program as a tool to make a necessary move easier.” Under the agreement, KYKLO will provide distributors with a world-class webstore with full integration to the distributor’s ERP system . The KYKLO system provides enhanced and search engine optimized product data which includes not only Panasonic products, but a distributor’s full offering from KYKLO’s extensive library of over 2 million automation, electrical, pneumatic, and related SKUs. The KYKLO/Panasonic partnership provides not only a mechanism for customers to make purchases online but a tool for creating customer leads. “The KYKLO system serves as a tool for creating leads which spill over from Panasonic to everything the distributor sells. In today’s market, sometimes it is not all that easy to find new customers. Trade shows have been put on hold, advertising is not always that effective, and old-fashioned cold calling is too expensive. With the right kind of webstore, the customers find the distributor.” Said Mr. Ardus as he shared his thoughts on the future. Any customer locating a needed part or comparing product types becomes a lead – not just for the product they are searching but for everything the distributor sells. In addition, the KYKLO system is designed to allow inside sales and customer service professionals to get customers into the system by sharing links to products quoted or specifications checked. The unique product comparator gives the customer the opportunity to select exactly the right product for their application and many of the products come with recommended add-on items which expand the sale. Panasonic is demonstrating their servant side by encouraging distributors to develop skills in the eCommerce sector. By allowing distributors to allocate up to 50 percent of the CO-OP funding to their efforts towards the KYKLO system, Panasonic assists in early costs. Panasonic is committed to helping our channel migrate toward leading edge of distribution. “Not only will they possess the right technical skills, market-leading customer service, and the stock to serve their customers,” commented Erwin Wu, “they will be able to provide customers an open portal to find, research, and ultimately select products.” Speaking on behalf of KYKLO, Remi Ducrocq said: “On behalf of the entire KYKLO team, we are excited by this partnership with Panasonic. We currently have many Panasonic distributors as clients, and this only furthers our value to them. The new tools we plan for Panasonic product selection will enhance the overall customer experience in many ways. If you are a Panasonic distributor and have not seen our unique plan for distributor digitalization, please give us a call. I am looking forward to meeting you and exploring how we might work together. Our system was designed especially for distributors just like you. We take the work out of launching a webstore and let you do what you do best – actively service your customers.” About KYKLO: Headquartered in Bangkok Thailand and Buffalo, New York, KYKLO provides a state-of-the-technology solution to distributors via a cloud-based eCommerce platform. Unlike traditional suppliers who provide an unpopulated webshop and require the distributor to supply product data, KYKLO provides rich product data for nearly 2 Million SKUs. All a distributor needs to do is connect their ERP (Business System) to KYKLO’s system. Every KYKLO client receives in-depth guidance and ongoing coaching tied to engaging customers with their ecommerce platform. Additionally, they provide best practices for using the system for generating quotes and assisting inside salespeople in product selection. SCHEDULE A DEMO

Economists have been calling for a period of substantial growth in 2021 as we roll from the Pandemic shutdown to the new normal. The majority of these experts were calling for something over three-and-a-half percent with a few citing numbers approaching the five mark. The latest word from Goldman-Sachs points to goldrush numbers. Here are their words: “We have raised our GDP forecast to reflect the latest fiscal policy news and now expect 8% growth in 2021 (Q4/Q4) and an unemployment rate of 4% at end-2021 — the lowest among consensus forecasts that falls to 3.5% in 2022 and 3.2% in 2023..." This is good news for our industry and good news for KYKLO users. However, nestled in all this good comes a few concerns. Will KYKLO and our family of clients be ready? This turnaround in business has caught many incredibly good supply- partners off guard. Shortages of products and services have become a point of discussion for our industry. But you can rest assured KYKLO is ready. KYKLO has been adding to our staff and expanding our support of the distribution industry. By growing our team, we have continuously been growing our expertise and knowledge. TEAMS THAT GREW IN 2020: TEAMS THAT ARE GROWING IN 2021: Application Development Customer Success Data Technology Engineering Marketing Department Sales Department Support Functions Technical Consultants Application Development Customer Success Data Technology Engineering Marketing Department Sales Department Support Functions We are growing now because we anticipate growing needs from our current and future clients. KYKLO is ready now, and we plan to be ready in the future. Before we sign off March is Woman’s History Month. All the media buzz made us pause. Did you know 52 percent of the KYKLO team are females? What makes this even more relevant is females are rare in the science, technology, engineering, and math (STEM) field. WE HAVE WOMEN MAKING HISTORY AT KYKLO. SCHEDULE A DEMO

Finally, and after much anticipation, the COVID vaccines are becoming available. Depending on your location, the first responders, those with underlying conditions, and other necessary workers have been vaccinated and the elderly have scheduled their shots. According to news reports the government plans to have inoculated over 100 million people by the end of March. Barring no unforeseen issues, the rest of the country will be loosening by Summer. The business restrictions throttling distributor sales will be lifted. There will be no “official end” to the Pandemic, but things will gradually return to life. The question for progressive distributors becomes, “How can we accelerate business growth through this time?” Distributors face two choices: Wait until the Pandemic is over and react to the new conditions. Build a plan and begin laying the groundwork for growth today. If you are planning, here are a few things Distribution Expert, Frank Hurtte of River Heights Consulting recommends you prepare for. Customers have been through the COVID wringer, too.  For the past 11 or so months the distributor’s connection to customers has been distanced and stressed. Thankfully, they are buying, but do you really know if their purchases are being made from habit. Are there underlying changes underway in their busines structure you do not know about? Things like decentralizing engineering, work from home plans, shifting into future mode, and several others come to mind. Do you really know what they are? Build a plan to quickly gather this information. Recognize talent, especially technical talent, will be in short supply.  When the economy hits the expected long-term growth cycle, what are your plans to find, recruit, and onboard new workers? Building systems which pulls high-skilled workers out of mundane tasks and enhances productivity should be part of the plan. Building productivity shifts from “nice to have” to a strategic necessity. Build a real process around product launches.  There is an avalanche of new products and technologies which were not launched during the Pandemic period. Important products, products which are the future of your sales growth, need to be quickly and efficiently rolled out to customers. A process will minimize wasted energy and misplaced effort. Those who get it right will grow much faster than those who do not. Building on our last point, anything you can do to automate the process is a plus. Learn how to use digital/webstore presence as a tool.  Research and surveys directed toward every level of industrially focused customers point to an exploding use of B2B ecommerce and webstore. One River Heights Consulting survey discovered 100 percent of those surveyed used webstores every day. Those surveyed were a mix of engineers and technicians working for OEMs, panel builders, and end users in the electrical automation space. Simply stated customers like yours. The data alone only tells a portion of the story. Some customers use their favorite distributor’s webstore daily and never pushed the buy button once. Instead, the tool serves as their electronic catalog. The survey discovered, customers have all but thrown away their catalogs, preferring instead to employ the convenience of the webstore to make buying decisions which are then channeled through their purchasing department. But the use of distributor digitalization does not stop there. Armed with the proper tools, customers can determine whether the product is in stock. Many confess their buying decisions are often based not on the exact product specification, but on both specification and stock status. When the webstore indicates the distributor has a local inventory, the customer knows delivery times will not slow down their build times. As a side bar, the stock status often eliminates resource consuming phone calls to the distributor to “check stock” prior to placing an order. Inside salespeople are freed to do things adding greater customer value. A well-developed webstore need not be entirely customer facing. Product selector tools built into the webstore allow an inside salesperson to quickly provide expert advice to customers… even if they are not that familiar with a product line. By asking the customer a series of questions, they can “drop down” to precisely the part required for the customer application. Further, if several parts meet the customer’s need, they can easily create a product comparator which can then be emailed to the customer for a final decision. If your webstore is mobile friendly, an outside salesperson can use their pad to make a similar search while the customer watches. Again, the search results can then be shared with the customer via an email or texted link. Accelerating out of the Pandemic The Beaulieu’s (Alan and Brian) of ITR Economics are predicting a brisk turnaround in 2021-22. Most of this is back loaded for the second half of the year. Preparing and executing plans for this important growth period is essential to maximize on the opportunity. A solid digital sales platform is an essential part of the plan. KYKLO can help. There is no faster or more cost-effective way to engage customers online than with the KYKLO process. Because KYKLO provides a “plug and play” type of environment, your customer ready website will be one bit of planning you can mark – done. SCHEDULE A DEMO

Phoenix Contact differs from their competition. First, they practice a limited distribution approach channel: about half that of their traditional competitors. Secondly, the vast majority of their business goes through this exclusive channel. As a global leader in the automation and interconnect industry with over 60,000 products in their portfolio, getting the right product information out to their diverse customer base is important. Distributor Digitalization experts at KYKLO are helping to make this making it possible. Increasingly, “getting the word out” requires enhancing more than the traditional brick and mortar approach to selling. Mark Bierbower, Phoenix Contact’s Director of Industrial Distribution , explained:  “As we all know, these days many people are going to the virtual world to seek information to solve their problems. This is especially true for younger people in our industry. This somewhat autonomous research and buy approach is driving much of the online sales growth we have seen.”  Expanding further on this idea, Cody C. Miller, Phoenix Contact Account Manager for Automation and Elite Distributors , said:   “Millennials and most sub-Boomer generations do not want to deal with traditional sales types. They have learned to quickly find the information they seek via the web and, for the most part, are often only reaching out to salespeople when they have a specific question.” As an organization, Phoenix Contact feels a solid digital presence is a foundational building block for the future. Again quoting Mr. Bierbower:  “We have been calling distributors without a strong digital presence and discussing future plans for this segment of their business. We are recommending KYKLO to our automation and controls distributors who do not have the resources to build the digital presence they need. It is part of keeping up-to-date in our environment, which is an essential part of long-term viability” In the recently inked agreement, Phoenix Contact has authorized the use of co-op funding to assist in offsetting some of the costs of KYKLO’s unique digitalization approach. Distributors using KYKLO can quickly and efficiently launch a state-of-the-technology webstore complete with Phoenix Contact’s product data. Mr. Miller outlined why this is good for Phoenix Contact and their channel partners:  “This initiative allows us another reason to get even closer to our distributors and our mutual customers. We will make all the interactions easier, better, and more efficient. Phoenix Contact will provide part numbers, images, and other important data to KYKLO for distribution ahead of new product launches. This aids distributors in their efforts to capture more business.” The folks at Phoenix Contact see this move to improve business as matching perfectly with their progressive view of how co-op funding and joint marketing in general might work better. Here are their words:   “Relative to co-op funding and utilization, a lot of manufacturers just allocate the money and do not closely collaborate with the distributors on its use. Phoenix Contact does it differently. We set a mutual plan for using the co-op dollars and work to assist our distributors in executing the plan. Further, each quarter we meet to see if the plan is working, or if there is a need for a new and better plan. KYKLO is a part of the plan for some.” About KYKLO: Headquartered in Bangkok Thailand and Buffalo, New York, KYKLO provides a state-of-the-technology solution to distributors via a cloud-based eCommerce platform. Unlike traditional suppliers who provide an unpopulated webshop and require the distributor to supply product data, KYKLO provides rich product data for nearly 2 Million SKUs. All a distributor need do is connect their ERP (Business System) to KYKLO’s system. Every KYKLO client receives in depth guidance and ongoing coaching tied to engaging customers with their ecommerce platform. Additionally, they provide best practices for using the system for generating quotes and assisting inside salespeople in product selection. About Phoenix Contact:  PHOENIX CONTACT develops and manufactures industrial electrical and electronic technology products that power, protect, connect, and automate systems and equipment for a wide range of industries. Phoenix Contact GmbH & Co. KG, Blomberg, Germany, operates 50 international subsidiaries, including Phoenix Contact USA, Inc., in Middletown, Pa.

How are your New Year’s Resolutions going? If you are like most people, the turning of the calendar is a time for reflection and setting goals for the future. According to a days old survey, most folks are thinking about how to improve their life and appearance. Here are the five top resolutions for 2021: Exercising more - 50 percent. Weight loss – 48 percent Saving more money – 44 percent Improving our diet – 39 percent Pursuing a career ambition – 21 percent These goals/resolutions are individual in focus. Long ago, a friend suggested this set of questions to generate business resolutions. What will you do to make your competitor’s life more difficult in the new year? What strategic plans, investments, activities, and positioning will be needed to make competing with you harder in the new year than today? Which of your future actions will make your customer’s lives easier? What plans are in place to make your company more efficient in the next year? What plans are in place to make your company more efficient in the next year? How will improve your long-range position in the market? What important projects should you accomplish in 2021? How does this apply to your business? Most distributor leadership teams have a full plate; supplier meetings, customer issues, developing people, and the Pandemic. Lots of distractions, yet these leaders must set priorities and complete projects. Using Steven Covey’s terminology, the goal is to separate the  urgent and not important  from the not  urgent and important  simply stated execute on the strategic points. The list of questions provided so many years ago, leads us to the strategic projects for the coming year. A webstore/eCommerce presence passes the Strategic Test A couple of years ago, a quality web presence with a credible webstore might be classified as a “nice to have” but not an essential business tool. According to the latest studies, over 80 percent of your kind of customers are using webstores in their buying decisions. Product content remains king, but price and local availability follow in the rankings. With these ideas why not put the concept to the test? Does a webstore make your competitor’s life more difficult? If you have one and the other guy does not, you have an advantage. Customers can review product data online anytime and anyplace; no pile of catalogs required. If your customer is buying niche products from an internet-based distributor, think Newark Electronics, Automation Direct, or others, your site offers a one-stop-shop for even obscure products. Customers no longer need to stray to competitive websites in search of what they perceive as hard to find items. Will your future actions make the customers life easier? Your website becomes their single source for new product information. Assuming you have full and enriched product data, your site becomes the customer’s master catalog. Extending this further, customers can not only identify the products needed for their application they can check local inventory levels without time consuming calls 24x7. Finally, the customer can then make the decision as to whether to push the purchase button, or enter an order using traditional methods. It’s their choice and customers like choices. Sales teams are more effective and your company more efficient. A world class webstore makes your sales team more effective. Inside sales can use built in product selectors to quickly find exactly what the customer needs and instantaneously provide the customer with pictures, descriptions and even price – all through the system. When the tool is placed into the customer’s hands, many find the process of researching both product and lead times faster than dealing with your company in the traditional fashion. Each time a customer identifies product or application needs, it eliminates a stock/delivery time call. If they place an order, it frees your staff to provide the kind of activities providing real customer value. Improve long-range position in the market. First, not only does the webstore improve interactions and relationships with existing customers, but the tool also serves as a low-cost source of new and potential customers. Instead of scouring industrial directories for strange and yet to be identified users of your product, these customers find you. Aside from these benefits, a webstore provides a mechanism for distributors to serve customers who are normally too small to justify traditional sales efforts. An ecommerce platform coupled with a marketing outreach lowers the cost of sale and moves these normally not so profitable customers into the black ink. What strategic projects will you handle in 2021? Chances are you have several projects which might be justified by the criteria already laid out. Why not grab the low hanging fruit and let somebody else do the heavy lifting for you? KYKLO makes it quick, easy, and effective with little work on your part. We handle everything from product content to search engine optimization and everything between. Our world-class webstore draws from our library of over two million products (SKUs). Importantly, KYKLO’s team provides not just digitization, but coaching and training to help your sellers put the system to its most effective use. Let us take care of this bit of strategy for you. SCHEDULE A DEMO

The Global Pandemic has accelerated change in the Distribution Industry. The once slow but steady march towards  digitalization  and webstores is now an outright sprint. During the time millions of people were locked down in one form or another of quarantine, the use of internet shopping exploded. Your world, once insulated from this rapidly growing trend, is experiencing a similar phenomenon. Many of your customers are working from home. The move came rapidly and with little warning. Most did not move their collection of catalogs home with them. COVID measures eliminated the age-old practice of in-person sales visits. Customers, striving to keep their operations going, found their way to online B2B sites and they liked the experience. The vaccine is being slowly rolled out now, but the general population will not be inoculated until late-Spring. Experts tell us many of the habits and patterns developed throughout what will for most be a full year of Pandemic-driven behavior will never go away. The use of digital tools in business has become so deeply rooted, it will remain and continue to expand. There is no putting this genie back in the bottle. Webstores and other digital selling tools are here to stay. Distributors without a digital platform will be grossly behind the curve. Your customers are already buying online… just not from you. Re cent  distributor  voic e of the customer surveys always carry the same message, customers are buying online and the percentage of their purchases made digitally is higher, often much higher than the distributor realizes. Truth is, many distributor salespeople - the eyes and ears of the sales effort - were afraid to ask the question. Your suppliers understand this phenomenon. Candid conversations indicate their internet-based channel has continued to grow during the pandemic, while traditional brick and mortar distributors lagged previous year sales – producing negative numbers. Distributor digitalization is no longer about using the internet to capture someone else’s business. Providing a credible online busying experience is required to maintain existing accounts. If you are a knowledge-based distributor, it is important to know customers conduct product research online first, long before your salesperson even knows about the project. Only after this initial research is completed do they call your tech-savvy seller in to assist with application-specific nuances. One customer described their preferred distributor’s digital efforts this way, “Their website is the perfect complement to their traditional sales approach. It smooths off some rough edges when gathering information for the project and allows me to get urgent work done without regard to business hours. I love my salesperson, but I love the ability to quickly find products and delivery times just as much.” A digital platform improves the customer experience. According to a recent survey (Accenture and Salesforce) of B2B executives, 90 percent of the respondents feel enhancing customer experience is part of their core business strategy. Sadly, the other side of the buying equation does not see it that way. Only 30 percent of the buyers feel they are genuinely enjoying an excellent customer experience. While digitalization is not a panacea for every issue facing customers, it is a step in the right direction. When done properly, digitalization does, in the customer’s words, “smooth off some rough edges.” Digitalization has never been easier. In the past building a solid webstore/digital platform took years. Less than a handful of years ago the cost, in both dollars and human effort, put a webstore out of the reach of most small and mid-sized distributors. The process was long and technically challenging. Worse yet, the fluid and rapidly changing nature of internet technology meant work done today would be obsolete in five years. KYKLO makes it quick, easy, and effective. We handle everything from product content to search engine optimization and everything between. Our world-class webstore draws from our library of over  two million products (SKUs) . Importantly, KYKLO’s team provides not just digitization, but  coaching and training  to help your sellers put the system to its most effective use. Let us play a role in your digital process. SCHEDULE A DEMO