With COVID-19, the economy was thrust into recession, and the chemical industry struggled with an 18.5% reduction in revenues. With time, the revenues seem to be getting on track, and in 2021, the chemical companies are witnessing a growth of over 12.3%, which means the industry is developing and progressing. It’s no secret that the chemical industry has always been a multi-billion industry.
To illustrate, the U.S. market accounts for $33 billion, but advanced marketing tactics and technologies have increased the competition, which means the biggest market players are at the brink of losing. In fact, the McKinsey report of 2017 suggested that chemical companies that earned the most during 2000 and 2004 didn’t earn the same revenue during 2010 and 2014.
However, the companies still have a chance to earn more revenues through digital marketing and sales strategies. According to stats, the companies will be able to make $200 billion more than what they would make without marketing tactics. It’s suggested to utilize 8% of the company’s revenue on marketing, and it will go a long way in helping a business succeed.
In particular, if your chemical company is operating in the B2B industry, the sales cycles tend to be longer since it takes anything from six months to four years to formulate and test the product before a marketing campaign is launched. That being said, with this article, we are sharing the marketing techniques that can help the chemical business succeed!
A marketing strategy cannot be completed if business branding is not kept in mind since it’s the most vital part. Branding is crucial for consumer product markets and business-to-business communication. Currently, consumer brands are spending thousands and millions of dollars in creating brand awareness but marketing industrial or commercial products doesn’t need this sort of commitment.
The customer base of the chemical industry is always ready to switch to a different brand if they get the equivalent formulation, which is why chemical companies need to combat to create a unique branding experience in the said market. For this purpose, the chemical company needs to provide consistently high-quality products to create a positive reputation. To summarize, do keep in mind that branding also relies on supplier’s performance and pricing.
Chemicals are complicated products, which means a plethora of product information must be communicated with the customers before they finalize the sale. However, the mass marketing channels don’t function well because they can only communicate limited information. In addition, a highly skilled sales team would be needed to motivate the clients to purchase the company’s products. For this reason, every sales team member must remain on the same page to promote the products.
Every member of the sales team needs to promote a similar message. To illustrate, the salesperson needs to show off his consultative nature to suggest products that meet the customers’ demands. Moreover, it’s suggested to provide product demonstration and samples to increase the sales funnel.
It’s evident that nearly every chemical component has a similar pricing level across different suppliers, but the final price differs when additional services are provided by the companies. For this reason, to get more sales, the chemical companies could try offering various service levels at different prices instead of creating a bundle of prices for every product. To illustrate, the company could try adding the essential services with established products and implement automation to reduce the costs.
Your chemical company doesn’t exist if it doesn’t appear on digital channels – it’s as simple as this. The new companies who are entering the market can depend on digital presence to reach a bigger audience. For the same reason, the chemical companies need to have a properly developed website with a higher search ranking to captivate the customers. The companies can also leverage social media platforms to create brand awareness and marketing.
To begin with, the company can create its own YouTube channel to create its success story videos and communicate the product information. Secondly, you should aim for omnichannel digitalization to reach a wider customer base by evaluating what customers are searching for and which social media channels are bringing in more customers and sales.
To summarize, marketing the chemical company is a different arena. Advanced analytics maximize the returns on investment by optimizing the marketing strategy, while digital channels help create a personal reputation with the customer base. So, follow these techniques and give those titans the run for their money!