PACKAGING INDUSTRY ARTICLES AND FEATURED AMTECH CONTENT

In today’s Internet-focused world, consumers have more authority and less patience than ever before. The line that once differentiated consumers from B2B buyers has been blurred, and businesses must remain agile enough to easily adapt to these changes, or risk falling behind. For independent packaging manufacturers specifically, it’s about employing a business practice that focuses on the customer—not just in the value that a business offers (quality products and service), but realizing the long-term value the customer will provide in return. It’s about open lines of communication and a mutually beneficial relationship. It’s about customer-centricity.

According to Forbes, customer-centricity means a better understanding and engagement of customers, as well as enhancing capabilities for serving customers. E-commerce giants Amazon.com and Zappos are great examples of companies that have successfully employed a customer-centric approach. Jeff Bezos, CEO of Amazon, famously said his goal was to become the “Earth’s most customer-centric company” and would do so by “focusing obsessively on the customer.” In the end, what really differentiates these companies is that they do not just claim to provide the greatest customer experience—they deliver it.

Packaging manufacturers, too, can deliver such an experience to their customers by adopting a customer-centric model based on four key principles: self-service, real-time access, collaboration, and business agility. The importance of the customer experience cannot be overemphasized, and it has become vital that businesses make their products and services easily accessible.

Self-Service

In the Age of the Consumer, self-service exists in nearly every aspect of our lives. From the way we bank and shop to the way we monitor our health, we have come to rely on technology as a replacement for people. For packaging manufacturers, the objective of customer self-service is the same: Provide end users with access to information and the ability to manage their own accounts without the assistance of a representative. This can be achieved through mutually beneficial Web-­based technologies—most commonly known as portals—which allow customers to interact with businesses at their convenience. So whether customers are generating a quote, paying an invoice, tracking a shipment, or approving a new design, they are afforded a simple, valuable online experience.

Now unlike Amazon, most independent packaging manufacturers are unable to be everything to everyone. The time and effort required to implement such an online system would most likely be cost-prohibitive. Instead, focus on the core customers, which for some packaging manufacturers may make up only 10 percent of the customer base but 80 percent of the company profit. With these customers now able to manage their own accounts, the company can refocus its energy on identifying areas of growth. In addition, customer service and order processing costs should go down, while sales volume and customer satisfaction go up.

Real-Time Access

In addition to self-service, a customer’s ability to access real-time data plays a significant role in business sustainability. It is no secret that consumers want instant gratification.

The automation of the supply chain through enterprise resource planning (ERP) systems has not only allowed businesses to increase efficiencies, but it has also created the opportunity for live data aggregation. Sharing real-time data is how companies allow customers to self-manage their accounts and, more importantly, to make timely business decisions. It gives customers what they want when they want it and optimizes business operations for the manufacturer.

The counterbalance for some business owners may be an increased sense of vulnerability; however, providing customers with a level of transparency into business operations will open the door for a more honest and valuable customer relationship. Consider the power of offering customers an inside view into their accounts as never before—tracking orders down to machine level while viewing live maps of trucks making their deliveries. In the end, businesses receive more favorable customer attitudes, increased trust on quality and fulfillment and, most importantly, increased purchase intention.

Collaboration

Collaboration, which at one point was just a growing trend in the evolution of the supply chain, is now widely considered a priority due to increasingly complex operations and mounting demand from customers. Aided by the growth of workflow automation systems over the past decade, manufacturers are now able to offer customers tools for work and communication management, which can sometimes be the difference between maintaining and losing accounts. Specifically, new solutions like Esko’s WebCenter, a Web-based project management system, have helped organizations initiate and sustain collaboration with customers on time-sensitive processes such as packaging design.

WebCenter was created to enhance data sharing and communication between all partners in the packaging and printing supply chain. Considering the tighter and tighter time constraints on order completion, the large number of order components, and growing cost competition, any opportunity to speed up the order process and improve customer experience should be considered.

Along with a communication platform that is accessible 24/7, tools such as quality management, file-sharing, feedback, and project status can greatly enhance the overall customer experience. The goal is to collaborate seamlessly and synchronize business processes from multiple sources to better improve efficiencies.

Business Agility

Business agility is a critical element in a company’s ability not just to grow, but to survive. Independent technology and market research company Forrester Research defines business agility as “the quality that allows an enterprise to embrace market and operational changes as a matter of routine.”

To remain agile, organizations must find a balance in adapting processes that are both flexible and transparent. The use of new technologies is both a quick and cost-effective way to meet customer demands.

The pace at which the world is changing from a technological standpoint is astounding. Consider the Apple iPhone, which was first introduced in 2007 and has already sold more than 500 million units. This one device has become a symbol of our society, yet we are just scratching the surface of its impact in business operations. As Forrester suggests, the companies that embrace this change will reap the most rewards.

The packaging industry is certainly no stranger to change, both in the product landscape and the growth in competition. Because the industry is constantly evolving, it is important that companies have the ability to counter the competition and quickly respond to new opportunities. Those who do not are at a huge disadvantage.

Customer-centric Culture Starts at the Top

The reason companies like Amazon and Zappos are able to achieve customer-
centricity is because the leaders have created a company culture that supports it. It starts at the top and has been reinforced in every aspect of their business, from their hiring processes down through product development. They also leverage data to better understand their customers’ desires and behaviors, and they create solutions to capitalize on them.

For an independent packaging company that has been in operation for many decades, this change in culture may not initially seem like such a simple task. Fortunately, with trademarks of fast order turnaround and quality products, these organizations have a head start. The focus from here must be the execution of new customer-focused solutions targeting self-service, real-time data access, and collaboration.

Perhaps the last question left unanswered, and most likely the first that comes to mind for business owners, is at what cost? While there are many who perceive improving the customer experience as an expensive task, the reality is that a happy customer requires less time and effort during the normal course of business. One could then deduce that improving the customer experience would actually reduce customer service costs. This will improve not only company reputation and relationship, but will also make it easier for customers to conduct business.

At the end of the day, by creating a mutually beneficial customer relationship, packaging manufacturers will better position their businesses for sustained long-term success in an increasingly consumer-led world.