Mobile electronics manufacturers succeed or fail based upon their understanding of the market as well as the quality of their retailer relationships, and here is where all manufacturers can improve their game. Just when you think you have a handle on what it takes to succeed, a more careful examination proves that you have much to learn. 

I gained a lot of insight after reviewing and judging the Top 12 retailers in this year’s Retailer of the Year (ROTY) Award. In no particular order, I will share with you five lessons that every manufacturer should learn and understand from the Top 12:

1. The best retailers don’t rely on gimmicks to grow their business

The Top 12 retailers all had very straightforward approaches to earning the business of their customers, starting with an honest assessment of what products and services are offered and how each retailer possesses true differentiation from other retailers.  No “fake deals,” and few, if any, giveaways.  Manufacturers need to collaborate better with their best dealers and understand that broad-based, one-size-fits-all promotions will not necessarily work with specialist retailers.  Having a flexible, customized approach will earn more of the specialists’ business. 

2. The best retailers have commanded the art of the demonstration

These Top 12 retailers have system demonstration capabilities that are interactive, compelling, informative and convincing.  Many of these retailers utilize a system-selling approach which intentionally narrows down selection but offers the customer plenty of product choices while showing how installation craftsmanship makes the difference in performance and longevity.  We already know that the use of video displays is opportunity to showcase installation capabilities and other services, and some of these retailers took that to the highest level by using Apple TV and other tech solutions to pipe in photos, music and video content to create just the right in-store environment and to tell their complete story. 

3. The best retailers do more than car stereos

I’m sure this was born out of necessity, as traditional electronics product margins and ASP’s declined.  But most of the Top 12 retailers have successfully broadened their business into automotive accessories, fabrication, customization and detailing.  This bumper-to-bumper approach provides their customers with more reasons to spend their money with them. This takes a lot of commitment and risk; you can’t specialize in everything, right? But with careful assessment of their markets, the Top 12 retailers chose the right diversification strategies and most seem to be working well. Not all business extensions are successful, and a few of the Top 12 retailers were quick to make the necessary corrections with minimal pain. Manufacturers should pay attention to each retailer’s complete business strategy, find out what other revenue areas are succeeding and figure out creative ways to support those areas. 

4. The best retailers train their people, even if the manufacturers won’t

Manufacturer training is an area that has been on the decline for over a decade, with in-person training and instruction being replaced by online services and other hands-off methods. The trend is still troubling, however the Top 12 retailers are not sitting on their hands. They have all adopted training programs of their own alongside of industry training, with most of them embracing MECP.  The unspoken attitude here is that training your staff makes them more valuable, far beyond the direct or indirect expense of the training itself. Those vendors that offer informative, in-person training in addition to online resources ought to be strongly supported by specialist retailers – clearly these vendors have your long-term best interest in mind. Vendors that have decided to pull back on training as a cost cutting measure should reconsider or accept less business support. 

5. The best retailers know customers better than anyone else

Many of us career-long manufacturer members typically think that we know the mobile electronics consumer as well as any of our dealers…but in reality we don’t. Even after years of dealer roundtables, traveling through every market and having long conversations over too many beers, there are things we can learn about the end-user and what it takes to win their business. The Top 12 are in constant contact with their customers and have developed relationship-building skills that keep those customers for years (in some cases, multi-generational). It was impressive to see the community outreach, charity activities and local event participation.  Here is where manufacturers can take more of an interest; there might not be a short term buy-in opportunity but supporting these efforts can deepen their dealer relationships and create an appreciation that will be rewarded over time. 

Being part of the industry’s Top 12 retailers is a huge honor, and it doesn't happen without commitment, passion, constant learning, professionalism, relationship building, collaboration and reinvention. The Top 12 retailers are representative of all that is good in the mobile electronics industry – a love of music, craftsmanship and a job done extremely well. It is clear that a consumer visiting any of these fine retailers will have a great experience, learn a lot they didn’t know, and make some new friends. 

Keith Lehmann is a 30-year veteran of the consumer electronics industry, with executive experience in sales, marketing, technology and corporate management. Lehmann was most recently Executive Vice President of Kenwood USA Corporation, in charge of the company’s consumer electronics sector for over ten years. Today, Lehmann is a consumer electronics industry consultant as well as Managing Director of the Connected Car Council (www.connectedcarcouncil.com).