Fostering Relationships

A recent Forrester report, "The 2005 Technology Brand Scorecard," highlights that point. Analyst Ted Schadler surveyed almost 5,000 U.S. consumers about--among other things--how much they trust major technology and consumer electronics brands. From 2003 to 2005, overall trust in device brands of the 48 companies considered fell 2.3 percent. Zenith led the downslide with a 5.7 percent fall, with Gateway choking on the dust at 4.9 percent. Out of all the companies, only Apple and TiVo experienced an increase in brand trust, according to the Forrester survey results.

Schadler attributes the overall decrease to the importance of price over brand and an increase in "technology pessimists" that own PC and consumer electronics devices. While he says there were many bright spots in the report, pointing out that all the brands have some type of strengths, custom installers and digital integrators can help those vendors reach their true potential.

At a time when consumer trust has declined for most brands--including LG, Microsoft, Philips, Pioneer, Samsung, Sharp and Toshiba, which are below the median, and Dell, HP, IBM, Intel, JVC, Panasonic and Sony, which hover just above the median--many custom installers and digital integrators report strong business in their core markets and growing business in new areas, such as the upper ends of the middle class, production homes, multidwelling units, very small businesses and education. Combined, these markets represent billions of dollars in revenue for vendors.

Many installers and integrators are also adding new customer-focused services that foster deeper relationships between integrators and their clients. These services typically generate greater margins and additional product sales.

As entertainment, automation and office technologies in the home grow more complex, the customer need for those services--product recommendations, help-desk advice, remote management and monitoring, system design, follow-up sales and technical support--will grow. End users, like small-business owners, will increasingly turn to their local integrators to help them make the right decisions. Once that trust is established, product price becomes secondary to hiring the right person to represent and provide the right solution.

Think about it. It's essentially the same as finally finding a really good auto mechanic or home repairman. Once you find the right one, you don't want to lose him, rarely question his prices and welcome his recommendations and expert opinion.