What do buzzwords mean to you? Do these trendy marketplace words intrigue you, challenge you or incite you in any way? Well, regardless of what you think of our industry's most common buzzwords from year to year, these words are the difference in whether you are adding to your successes in 2012 and beyond or not.

With an increase of traditional and untraditional competition, water treatment dealers who specialize in selling point-of-use (POU) and point-of-entry (POE) equipment need to stand out in a crowded field of competition. Additionally, how customers view and shop price points nowadays is much easier than it was even 12 months ago.

With technology changing at such a rapid pace, can you really afford to take the wait-and-see approach to sales and marketing anymore?

The good news is that there is market optimism leading into this year. With POU equipment poised for significant, expected growth, water treatment dealers are wise to promote specific marketing messages (buzzwords) and know exactly when and where to place those messages. Implementing solid business strategies also continues to be of utmost importance.

"Innovative products with outstanding service and support from the dealer at a fair price point with an additional emphasis on educating the consumer completely on the solution to their particular water problem will result in exceeding the customer's expectations. This provides an opportunity for the best form of marketing: The referral," notes Patrick Ford, Hellenbrand's national sales manager.

Expanding your business

Who competed with traditional water treatment dealers in 2011? According to our annual Benchmarking survey, which was published in its entirety in the July 2011 issue, dealers' top three competitors included: Big box stores or other home improvement retailers (45 percent); sales direct to consumers over the Internet (36 percent); and service companies in other industries (31 percent). Most of these competitors, as well as others cited in our survey, have a commonality: Water treatment is not their core competency.

So, did successful residential and/or light commercial water treatment dealers focus on core competencies or did they diversify their businesses in 2011?

"Dealers who diversify their business mix have been more successful in many cases than those who have been singly focused in past years," says Curt Hilliard, senior vice president, marketing, for Culligan International. "This has to be balanced with the competencies of the dealer."

And, finding new services to "add-on" is practical. Expanding the business to indoor air quality, for instance, is a common service area that water treatment dealers have found success in. "The marketing approach (for air quality services) is very similar to water and many dealers are focusing on reaching out to homeowners with respiratory ailments or pets," notes Dale Filhaber, president of Dataman Group Direct Mail & Telemarketing Lists. "This is a natural product line expansion."

However, sometimes diversifying your business can be as easy as focusing on other applications of water treatment and market segments. According to Ford, successful dealers are proactive in continuing to market their business and products, but have also diversified into different areas of opportunity. "For example, a focused approach on commercial applications in addition to residential opportunities," provides Ford, adding that the caveat is that the dealer cannot simply move into this additional area of opportunity without first acquiring the necessary skills to size and apply systems properly. "Hence the reason that the added value OEMs are seeing an increase in their dealer bases."

Information sharing and gathering

Dealers who are thinking of expanding their business in any way must educate themselves on how best to enter the market and where and how to start. While the Internet can prove to be a valuable tool, it is best to make sure the information you are using as a guide is credible and proven. And remember, the same misleading information that is available to you online is also available for customers.

Hilliard suggests that sharing best practices with peers is a strategy that's proven successful. Validate your goals and objectives with prospects and current customers. Additionally, strong relationships through the entire supply chain and marketing team are critical.

"Successful dealers are supported by a strong partner/agency in their marketing efforts. They best develop their marketing and selling plans together with their agency, ensuring that their marketing spend throughout the year is targeted. Measure, measure and measure. The most successful dealers know where their new business comes from, where their repeat business comes from and which campaign drove the consumer to the dealership," adds Hilliard.

While the question is simple, its answer can be most beneficial to your marketing plan and spend: How did you hear about our company?

Emergence of mobilization in communications

How your customers hear about you can vary from "referred by a friend" to "my new tablet or mobile device." Even if you are not a specialist on mobile devices and social media, you simply cannot deny their power.

A 2011 paper published by MPA Digital predicts the future popularity of tablets. In the paper, VP and Principal Analyst at Forrester James McQuivey looked toward the future of these devices. McQuivey's How Tablets Are Shaping the Future of Reading offers these sales forecasts for coming years:

• During 2011: 24.1 million tablet PC sales
• During 2012: 35.1 million tablet PC sales
• During 2013: 39.8 million tablet PC sales
• During 2014: 42.3 million tablet PC sales
• During 2015: 44.0 million tablet PC sales.

According to the document, by 2015 there will be a total of 82.1 million tablet users in the U.S. With this increase expected for just one product segment of mobile communications, your customers are going to be looking for more quick, on-the-go type information — found most conveniently on the world wide web.

In 2012, dealers need to take advantage of the web and what social media has to offer. Make sure your site stands out, both graphics and content wise. Optimize your search engine results by learning how Google™, for example, works and what you can do to make sure your company is at the "top of the list" of search results. Is your site mobile device friendly? Can customers auto-dial your place of business through their smartphones?

While Ford does stress that being a leader online will no doubt lead to success in coming years, he also believes that a prompt professional response is expected by the consumer, along with a certain level of service. "The consumer, with the advent of the Internet and social media, is much more informed about potential issues and solutions," he says. "Customers want complete satisfaction in a timely manner as we have become a society that will not wait as we are busy multi-tasking."

Market update

On a basic level, certain economic conditions drive the success of the water treatment market for residential and light commercial business. For years, we have been hearing about a sluggish economy, a down real estate market and an uncertain future. We started to see some market optimism in 2011, but will it continue in 2012 and what market sectors should be focused on this year?

Ford provides some insider information on what's selling right now and who's buying. "I would agree that residential and light commercial business has increased in 2011 compared to 2010. If you look at the industry numbers for tanks and valves you see a slight increase in sales of tanks 13 inches and less in diameter as well as 1-inch valves. You see a noticeable increase in 1.25-inch valve sales," says Ford, adding that dealers, OEMs and manufacturers are sporting a cautiously optimistic attitude moving into 2012.

While commercial business across the U.S. appears to be a solid source of revenue, residential business has room for growth. As underlying factors improve, such as unemployment rates, we're hoping to see a bounce back in residential opportunities in 2012.

What will matter most to these customers is what you can teach them. "Value is important as is the ongoing service relationship. Consumers are shifting to a mode of ‘teach me' versus ‘sell me.' With the Internet fueling the consumption of data and analysis, dealers need to stay current with consumer needs and tailor their messaging," explains Hilliard.

How do traditional methods fit in?

Tried-and-true customer service techniques and offering reliable equipment will always go far with customers. However, when it comes to media and marketing, experts are recommending that dealers also stay with traditional methods. Having a multi-layered approach to sales and marketing that includes print and online strategies is recommended.

And, dealers are still finding success in proven, traditional means to reach current clients and prospects for new customers. According to Filhaber, "We are seeing dealers buying more lists in this quarter than the earlier part of the year and Direct Mail is having a renaissance."

While the marketing buzzwords are important, in 2012 it is going to matter most where and how you spread those messages throughout the customer base. Dealers that don't incorporate a good mix of digital and print marketing will almost disappear from the competitive landscape.