eSurvey: Technology And The Dealership

Since the Internet boom of the late 1990s, retail dealerships have invested substantially in electronic technology to improve efficiency, communications, and customer service. The E-Survey, now in its fifth year, has been closely tracking this trend since the first survey was undertaken in 2001.

The E-Survey, conducted and compiled with the assistance and oversight of Purdue University‘s Dr. Jay Ak­ridge, director for Purdue’s Center for Agribusiness, and independent consultant Dr. Linda Whipker, has provided slightly different perspectives on technology and e-business adoption each year it has been conducted. In this fifth edition, the respondents were more heavily weighted toward the small- to medium-sized independent retailers. And there was a higher percentage of respondents from the West Coast than in previous years.

These factors make it statistically sticky to draw too many year-to-year comparisons, but they do provide some interesting insight into a sample that features a higher proportion of independent retailers.

CropLife® magazine would like to acknowledge the generous financial support of precision technology manufacturer Trimble, which makes the E-Survey possible.

Headline News: Net Speed, Use
The improved availability and functionality of high speed Internet services has continued to impact rural American businesses, and the retail dealership has been no exception. Retailer adoption of higher speed Internet service seemed to continue its steady climb upward, as use of dial-up service dropped by more than 25% as users switched to upgraded options (see chart, “Down With Dial-Up”). Most frequently mentioned among the high speed options were direct service line (DSL) and cable modem, while the other high speed services such as satellite, T1, and tower-generated wireless held steady. 

Respondents in this E-Survey sample reflected nearly identical equipment technology adoption numbers to the 2005 sample, with desktop computer adoption at more than 95% of the retail outlets and use of laptop computers at nearly 60% of the outlets. Wireless networking at the retail outlet appears to be gaining some steam, with slightly more than one-third of the respondents indicating that their businesses have gone wireless. This stood at just over one in four in the 2005 E-Survey.

This year’s survey reflected continued high use of the Internet for business purposes, led by use of e-mail at nearly 95% of respondents. Interestingly, e-mail consistently falls to the very bottom of importance of various tools used to manage relationships with key customers — well below even faxing and traditional mail. While it’s an important business tool, using e-mail to manage key customer relationships is clearly not where most retailers are today.

Where the Internet shines is in information gathering. General news, agriculture news, and manufacturer Web sites topped the list of Internet uses for this sample, while business oriented online purchases such as seed, fertilizer, and crop protection products seemed to remain steady or decline slightly compared to previous years. One noteworthy increase in Internet use was banking online, which nearly one in four respondents said they currently use.

On the communication side, cell phones have become ubiquitous at the retail outlet. Some 94% indicated that at least one cell phone is being used by their outlet, and the sample averaged about 5.5 cell phones per outlet. Use of the combination e-mail/cell phone device made popular by the manufacturer Blackberry appears to have held steady from last year to this year at nearly 16% of retail outlets.

Tracking Data

Year over year, there has not been a significant change in the collection or use of customer data by retail dealerships. When asked about data tracking of key customers (customers accounting for 80% of the business that retailers do), about 73% of respondents indicated that they keep basic “name, address, phone” information stored electronically for more than three-fourths of their key customers. Almost two-thirds of the respondents said they keep the majority of their key customers’ sales records electronically, but fewer than half said they electronically tracked application acres (43%) and only one-third electronically tracked soil test results (30%).

Use of this electronic data for improving sales and customer communication continues to be led by the “fundamentals,” including direct mail (55% of the respondents), data product service planning (49%), supporting the sales force (48%), and customer service follow-up (48%).

Web Woes
Web development at the retail level has hit a virtual standstill in terms of functionality. The results of the E-Survey suggest that the number of retail organizations and outlets maintaining a Web presence has remained virtually the same for the last few years, as has the sorts of information made available. Static information such as company background, technical information, links, and pricing information continue to lead the list of content types featured on retail Web sites, while dynamic features such as online ordering, communities, and bill paying have remained at the bottom of the list, largely unchanged in occurrence. 

For retailers without a Web presence, the most limiting factors in Web development have continued to be management not seeing the value of having a Web site, a lack of expertise, cost, and no customer demand for a Web presence.

Bottom line: Retail dealerships are adopting technology that makes sense for their businesses as demanded by the customer, and will continue to look for ways to harness technology to improve efficiency and customer service.

The E-Survey is a cooperative research project conducted by CropLife magazine and Purdue University with financial support from Trimble. Some 2,000 retail managers were selected using an nth pull of CropLife magazine readers and sent a survey via mail between Aug. 25 and Sept. 15, 2006. The results reflected the answers of 240 usable surveys, a response rate of 12%.

Leave a Reply

Equipment Stories

A finished Willmar 16-ton side-shooting tender.
TendersNew Production Facility Helps Willmar
July 17, 2014
In 1963, a group of businessmen started Willmar. Today, a half-century later, the company is one of the ag industry’s longest-running brands. Read More
SprayersHooded Sprayers Help Minimize Spray Drift
May 15, 2014
Willmar Fabrica­tion's hooded sprayers have the potential to minimize pesticide drift, especially when combined with other drift reduction technologies, such as drift retardant adjuvants or low-drift nozzles. Read More
Nozzles18 Spray Nozzles That Reduce Drift, Optimize Coverage
May 7, 2014
This year’s line-up of tips feature the versatility to handle any spray job. View photos and product descriptions of the latest nozzles on the market in our slideshow. Read More
NozzlesChanging Crop Protection Landscape Demands Drift Advances
May 1, 2014
New weed control systems and growing public pressure mean technologies to minimize drift can’t come fast enough. Read More

Trending Articles

Retail FacilitiesWaconia Manufacturing Builds Facility Designed For Speed, Efficiency
July 7, 2014
To make its new hub facility more efficient, Cooperative Elevator enlisted the aid of Waconia Manufacturing. Read More
EquipmentSummer Show Preview 2014: Superior Sprayers Take The Field
July 3, 2014
In this final installment of our coverage of the major categories of Big IRON that retailers can expect to test-drive at this summer’s events, here is a look at 19 sprayers. Read More
Scouting a soybean patch at Green Valley Ag.
EmployeesCropLife Compensation Survey: Battling Talent Drain
July 2, 2014
Retailers too often lose employees to companies outside of agriculture, while recruiting efforts are most often limited to competitors and other ag-focused organizations. Read More
HerbicidesDow AgroSciences Introduces SureStart II Herbicide
June 16, 2014
The enhanced formulation has improved viscosity and increased stability under heat and controls more than 60 high-anxiety grasses and broadleaf weeds found in corn fields. Read More
HerbicidesBASF Investing $270 Million To Expand U.S. Herbicide Production
June 11, 2014
BASF has invested more than $270 million to expand herbicide production capacities in the U.S., including more than 20 new products to be launched over next two years. Read More
EquipmentGPS: 25 Years And Still Growing
June 2, 2014
The evolution of global positioning systems applications in agriculture remains ongoing as the technology hits a notable milestone. Read More

Latest News

CropLife 100Pinnacle Forms Alliance With Wildlife Managment, Seed O…
July 25, 2014
The strategic alliance will provide Tecomate with key wildlife products, processing facilities, distribution centers and sales through Pinnacle’s ever-growing retail network. Read More
ManagementFranken Presses White House On RFS Support
July 25, 2014
Al Franken and a group of Senate democrats recently met with senior White House official John Podesta to urge the administration to change its position on an EPA proposal. Read More
ManagementASA, FarmLink To Launch ‘Operation Benchmark̵…
July 25, 2014
The American Soybean Association (ASA) and FarmLink are teaming up to help farmers close the $11 billion gap between what they harvested in 2013 and what they could harvest annually. Read More
StewardshipNorthey: Farmers Commit $1.4 Million to Try New Water Q…
July 25, 2014
The practices that are eligible for funding include cover crops, no-till or strip till and using a nitrification inhibitor when applying fall fertilizer. Read More
Precision AgFarmers Learn How Changing World Will Impact Iowa
July 24, 2014
Technology and understanding global consumer demand for Iowa farm products brought hundreds of farmers and agribusiness leaders to Ames recently for the annual Iowa Farm Bureau Federation Economic Summit. Read More
HerbicidesPurdue: Late Season Weeds May Require Manual Removal
July 24, 2014
Hand-rouging and pulling late season weeds by hand may be the best way to remove them, more so than using a herbicide, a Purdue Extension weed scientist says. Read More
Soybean Field
InsecticidesTransform WG, Closer SC Insecticides Receive R&D 10…
July 23, 2014
Dow AgroSciences has received the award from R&D Magazine for Transform WG insecticide and Closer SC insecticide with Isoclast active. Read More
EquipmentKinze, Raven Team Up On 4900 Planter Monitor
July 23, 2014
Kinze Manufacturing announces a partnership with Raven Industries to develop a standalone monitor solution for the Kinze 4900 series planter. With this new Read More
LegislationNew Farm Bill Continues To Confuse As Growers Await USD…
July 23, 2014
The new five-year Farm Bill eliminates many of the direct payments previously payed to growers and could benefit from USDA clarification, reports a Toledo Blade columnist. Read More
EquipmentPrecisionAg.com Relaunches With Responsive Design For M…
July 22, 2014
PrecisionAg, the worldwide leader in precision agriculture information and analysis, announces the launch of its completely redesigned website, PrecisionAg.com. Read More
FungicidesEPA OKs Two Willowood Fungicides
July 21, 2014
The EPA has approved Willowood Azoxy 2SC and Willowood AzoxyProp Xtra. two widely used broad spectrum, preventative fungicides with systemic and curative properties. Read More
Precision AgFarmers Learning Fast As UAVs Take Off
July 17, 2014
Farmers and others interested in how UAVs can be used in agricultural applications were able to learn more about the technology during the recent Precision Aerial Ag Show. Read More
CropLife 100Bobby Knight, Richard Petty To Highlight Ag PhD Field D…
July 17, 2014
Attendees at the July 24 Ag PhD Field Day at Hefty Farms will learn about the latest agricultural technologies, and get a chance to meet legendary sports figures Bobby Knight and Richard Petty. Read More
WebinarsUpcoming Webinars
July 17, 2014
Register for one of our upcoming Webinars or access our archive of past Webinars to view recordings of presentations that may be of interest to you. Read More
A finished Willmar 16-ton side-shooting tender.
TendersNew Production Facility Helps Willmar
July 17, 2014
In 1963, a group of businessmen started Willmar. Today, a half-century later, the company is one of the ag industry’s longest-running brands. Read More
FertilizerCF Industries Sells Carbon Credits To Chevrolet, Donate…
July 17, 2014
CF Industries has completed the sale of a large block of carbon reduction credits to Chevrolet, and will donate the net proceeds of $600,000 to the National FFA Foundation. Read More
CropLife 100Grainland Cooperative, Minier Cooperative Grain To Merg…
July 17, 2014
The shareholders of Grainland Cooperative and Minier Cooperative Grain Co. approved a merger of company operations effective August 1, 2014. Read More
ManagementStudy: Drought Costing California Billions
July 17, 2014
A new study has found the drought has cost the state $2.2 billion, primarily in lost farm revenue and wages. Read More