management reviewing distributor metrics for revenue growth

Track These Distributor Metrics for More Revenue Growth

Industrial Distribution’s Video Review of White Cup’s Guide to Key Metrics for Distributors

Anna Wells, Executive Editor, and Andy Szal, Editor at Industrial Distribution, took a look into White Cup’s Metrics That Matter: Key Metrics for Distributors to Drive Revenue white paper. As mentioned in their video, the pandemic was a wake-up call for many distributors.

For distributors that had digital tactics in place, their strategies were put to the test. And they had to ask, were they adequate? Understood? Or, most importantly, leading to revenue growth?

In their review, Anna and Andy assert that the pandemic served as the impetus for widespread digital change. Companies that hadn’t gotten on board yet had to pivot quickly. Businesses that had embraced it had an unprecedented test for their strategies.

To remain competitive in this constantly evolving market, companies needed to get a better handle on the key distributor metrics that drive their businesses. And they need to be able to evaluate and modify them as business conditions change.

Distributor Metrics for More Revenue Growth Industrial Distribution Video Review

Many of the historical key performance metrics that distributors have looked to in the past are no longer relevant, and some are actually much more important than they ever were.

An example of a metric that’s more important now for revenue growth than it may have been in the past is profit margins. The first of five metrics mentioned in the white paper, profit margin, is one that has become ever more critical in a business with already slim margins.

In this first example, the commentators double down and agree that because consumers have come to expect a degree of price increases every year, there is a “zone of indifference” that can be leveraged to squeeze more margin out of every sale.

Szal also notes in agreement that it’s important to track expenses early and often because they have a tendency to add up quickly but also specifically because monitoring the costs needed to achieve top-line revenue growth can help avoid unpleasant surprises on your profit reports.

They note the impact of what feels like such a small number can have a disproportionately large effect when talking about bottom-line profit. The concept of small numbers adding up over time, whether it be about cost increases, price optimization, or customer churn, is something we cover often.

Click the link below to access the full guide and learn ways to get started with tools to help track distributor metrics.

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Free Guide: Key Metrics That Matter


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