Founded in 1993, CDM distributes products to engineers and technical buyers who use them for military, aerospace, medical, telecommunications and industrial applications. The company is an authorized distributor for nine manufacturers, including Adam Tech, Continental Connectors, Corsair, Times Microwave, and Winchester Electronics. From Viking connectors that supply the galley lighting on an airplane to the connectors that provide radio communication for soldiers in combat, to Radio Frequency (RF) cables that make cell phones work, CDM Electronics offers the unique product set to help customers solve some of the most important and serious issues around the world, even in some of the harshest environments.
In addition to its distribution business, CDM also has a second division, where it offers quick turn engineering and cable assembly services for prime contractors, as well as second and third tier providers.
CDM Electronics employs 60 people at its factory in Turnersville, New Jersey, and has sales offices in Irvine, California, and Plano Texas. The company's sales, electrical and mechanical engineers provide creative and cost-effective solutions for thousands of prime contractors, from Northrop Grumman, BAE and General Dynamics to all branches of the United States Military.
Challenge: How to Double Company Revenue in Five Years
In 2004, CDM Electronics' General Manager, Carmen DeLeo, took stock of the company's sales and potential for growth. He recognized untapped potential in the global marketplace. Mr. DeLeo set a five-year strategic plan to more than double annual revenue to $10 million. He knew the company could get there by reaching more qualified prospects, engaging customers overseas and partnering with new manufacturers.
However, the prime defense and aerospace contractors like Raytheon that made up CDM Electronics' most qualified prospects were under "marching orders" to reduce their preferred vendor lists to only the most reputable. Mr. DeLeo realized CDM Electronics' website did the company a disservice. It lacked product consistency, depth, and intelligent navigation, and positioned the company as a regional player.
As a distributor, the company relies heavily on marketing the product information, specs and promotional material from the manufacturers they represent. Unfortunately, the information from its manufacturers was lacking easy navigation, product quality and detail, making it difficult for CDM Electronics' to serve customers and prospects that came searching for product information.
"We needed a website that clearly defined all the products we represent, and the manufacturers just didn't supply us with good information," said Mr. DeLeo. "It was time for us to take control of the level of product detail on the website in order to effectively communicate the unique, exclusive, and original products we offer.
The lack of information in both a user and search-engine friendly format had other consequences too. Without it, CDM wasn't showing up in search engine results.
Solution: Using the Website as a High-Performing Sales Executive Mr. DeLeo was ready to make a serious effort to market the company and products online. He welcomed the expertise of ThomasNet's engineers and consultants, who assured him his website could be transformed into an always-on sales force that would meet his business objectives.
Right from the start, ThomasNet demonstrated how important it is to provide as much product information as possible on the website to keep customers engaged. Even though the content the manufacturers provided to the company fell short, ThomasNet empowered CDM to take matters into their own hands, and together created a state-of-the art online catalog that thoroughly explains every single product CDM sells, no matter how little information the manufacturer provides. CDM trusts that it knows exactly what its customers want, and with the online catalog from ThomasNet, explicitly addresses it online.
This was no small undertaking.
CDM and ThomasNet worked hand in hand to examine thousands of electronic connectors, cables and components, assess the information provided by the manufacturer, then augment each with more detail, specifications and photos that both anticipate and meet their customers’ expectations.
If a product doesn't meet their specifications, it can be an extremely expensive mistake. To help engineers make the best buying decisions CDM now has a Compare Products function in its online catalog. This feature lets engineers compare up to five products at a time, side-by-side, with illustrations/pictures, according to a host of key variables. If customers still need additional details to make a selection, they click a Request for Information (RFI) form, type in comments, attach files, and hit Submit to keep the virtual conversation with CDM moving.
"The catalog has helped engineers solve their problems in real-time without us even picking up a phone. It has allowed us to break down doors instantly and sell effortlessly," said Mr. DeLeo.
With highly specified descriptions for products ranging from circular and military connectors to power connectors to RF connectors in the catalog, CDM is driving its own success and inevitably boosting its own image. Once prime contractors such as Northrop Grumman saw the revamped product information on the website, CDM earned the instant qualification as a reputable distributor and an intelligent company that it needed.
These detailed online descriptions of CDM's full range of products also make it easier for the distributor to be found through major search engines. For instance, engineers looking for snap-lock metal connectors who conduct a Google search will find CDM high on their list of search results. This has been especially helpful in introducing engineers from around the world to CDM.
Results: A Global Enterprise with 2008 Revenue of $15 Million The richness of the new online catalog has delivered many positive, measurable results for CDM:
• "With the rich new content, CDM is now easier to find on popular search engines. In 2008, CDM reported almost 40,000 visits by prospects and buyers who found the site through a search engine, triple what it had been earlier. "
• "In 2008 CDM logged nearly 74,000 unique user sessions, or first time visits to its catalog. That new, quality traffic of engaged visitors is driving new business."
• "CDM Electronics now receives several "Requests-for-Information every day. Mr. DeLeo credits the new online catalog with the company's acquisition of 100-150 new customers each year, including engineers from Sikorsky, two divisions of General Dynamics, NASA, Lockheed Martin, Boeing, Raytheon, and The Department of Defense."
• "CDM Electronics' overseas revenue had run about 10 percent of its business prior to the catalog. The company is already up 50 percent this year. "We've done $1.3 million in international business since the launch of our ThomasNet online catalog," noted Mr. DeLeo. "One of our most notable new customers is the government of Argentina." Year over year, the company's interconnect business has grown about 20 percent and the cable assembly business has grown about 10 percent."
• "CDM Electronics' online catalog has also spurred new partnerships with many premier manufacturers as well as prompted several "exclusive" relationships. In 2004, the company represented two manufacturers. Now it represents over nine manufacturers and their products. "We've increased our business with manufacturers because they see how impressive our site is," said Mr. DeLeo.
By 2008, CDM Electronics set a new record for annual sales of $15 million. "I attribute this remarkable growth to ThomasNet and its online catalog," said Mr. DeLeo. "Because it greatly enhances our company image and serves as a 24/7 outside salesperson, we've made ThomasNet about 80% of our company's marketing budget."
What's brought an added, meaningful benefit is that the website work is being rewarded in other ways by CDM Electronics' customers. Northrop Grumman honored CDM with prestigious Supplier Excellence and World Class Supplier Awards for 2008, and this achievement would not have been possible without ThomasNet," said Mr. DeLeo. "Bottom line; online catalogs drive revenue and results."
