How Carrier Enterprise Reached 60% of Revenue Through Digital Channels
In an industry not traditionally known for embracing digital transformation, Carrier Enterprise (CE) is proving that even complex, technical B2B sectors can thrive online. The HVAC distributor — a joint venture between Watsco Inc. and the Carrier Corporation — has announced a major milestone: 60% of its total revenue now flows through digital channels. It's a landmark achievement that didn't happen by accident. Behind the numbers lies a deliberate, multi-year strategy built on people, technology, and process.
For any B2B company looking to modernize its sales approach, CE's journey offers a compelling blueprint worth studying closely.
Understanding the Milestone: What 60% Digital Revenue Really Means
When CE announced that digital channels now account for 60% of its total revenue, it wasn't simply celebrating a traffic metric or an uptick in online orders. The figure represents a fundamental shift in how the company does business with its customers — HVAC contractors and dealers who depend on CE for equipment, parts, and support.
"Reaching 60% of our revenue through digital channels is an achievement we share with our customers," said Vincent Mugavero, senior vice president of digital and enterprise services at CE. "This is a reflection of their trust in us to evolve, innovate, and continue delivering the value they depend on."
That framing is important. CE didn't position this milestone as something it achieved alone or through technology for technology's sake. Instead, the company emphasized that digital growth is a co-created outcome — one that reflects how much its customers have come to trust and rely on its digital platforms for doing business day to day.
For an HVAC distributor operating in a largely relationship-driven industry, this level of digital adoption signals a genuine sea change in buyer behavior and business operations alike.
The Three Pillars Behind CE's Digital Success
CE distilled its path to 60% digital revenue into three core priorities: people, technology, and process. Each one played a distinct and essential role in moving the needle. Together, they form a framework that other B2B distributors can learn from regardless of their industry.
People First: Building a Team Rooted in Product Knowledge
One of the most telling decisions CE made early in its digital transformation was about who it hired — and equally, who it chose not to rely on exclusively. Rather than staffing its digital sales operations primarily with ecommerce specialists or digital marketers, CE prioritized people who had deep, hands-on knowledge of its HVAC products.
The reasoning was straightforward: in a technical industry like HVAC distribution, product expertise is the foundation of customer trust. Contractors and dealers don't just want a smooth checkout experience — they need to know that the person or platform helping them source equipment understands what they're ordering and why it matters.
CE was clear that while technical ecommerce skills are valuable, they work best as a complement to deep industry knowledge rather than a replacement for it. This people-first thinking allowed the company to position its digital channels as a natural extension of its core business — not a separate, disconnected sales layer bolted on as an afterthought.
The result? A digital sales team capable of earning customer trust and guiding buyers through complex purchasing decisions with confidence and credibility.
Technology That Enables Rather Than Overwhelms
On the technology side, CE has made targeted investments that address real pain points in HVAC distribution. Two platforms stand out as particularly central to its digital success.
First, CE leaned heavily on a product information management (PIM) platform. In a product catalog as vast and technically detailed as HVAC equipment, a PIM system is critical for ensuring that customers find accurate, complete, and consistent product data across every digital touchpoint. Without reliable product information, ecommerce in a technical B2B environment quickly breaks down.
Second, CE's ecommerce platform itself has served as the engine driving digital transactions. By creating an intuitive, capable buying experience tailored to the needs of HVAC professionals, CE made it easier for contractors and dealers to place orders, check availability, and manage their purchasing — all without picking up the phone.
Looking ahead, CE is also incorporating artificial intelligence tools to further enhance search and discovery for its customers. As product catalogs grow in complexity, AI-powered search helps buyers find exactly what they need faster — improving satisfaction and reducing friction in the purchasing process.
Process: Turning Digital Infrastructure Into Customer Value
Technology and people alone don't guarantee results. CE has also refined the processes that turn its digital investments into tangible customer value. One particularly impressive outcome is its ability to respond to live chat requests in just six seconds on average. In the fast-paced world of HVAC contracting, where technicians need parts quickly to complete jobs and keep customers comfortable, that kind of responsiveness can be a genuine competitive differentiator.
CE has also highlighted efficient sourcing of backorders as a process improvement tied to its digital capabilities. When a product isn't immediately available, CE's systems help identify and secure alternative sources quickly — minimizing delays and keeping customer projects on track.
What B2B Distributors Can Learn From Carrier Enterprise
CE's story is not just an HVAC industry success story — it's a case study in how B2B distributors of all kinds can approach digital transformation thoughtfully and sustainably. A few key takeaways stand out:
Digital transformation works best when it is treated as an extension of core business competency, not a separate initiative driven purely by technology trends.
Hiring people with deep product and industry knowledge creates a more credible and effective digital sales operation than relying solely on ecommerce expertise.
A solid technology foundation — including PIM and ecommerce platforms — enables consistent, trustworthy digital experiences that customers return to repeatedly.
Process improvements like rapid live chat responses and efficient backorder sourcing turn digital capabilities into measurable customer value that drives loyalty and revenue.
AI tools represent a meaningful next step for improving product discovery and search, especially in product-heavy B2B environments.
The Road Ahead for Carrier Enterprise
With 60% of revenue now flowing through digital channels, CE has demonstrated that the HVAC distribution industry is not immune to the broader shift toward digital-first B2B commerce. If anything, CE's success suggests that sectors previously seen as too complex or relationship-dependent for ecommerce may actually have the most to gain from getting it right.
As CE continues to explore AI-driven enhancements to its digital experience, and as its customer base grows more comfortable with digital purchasing, it seems reasonable to expect that percentage to keep climbing. For CE, reaching 60% isn't the finish line — it's proof of concept for what comes next.
For B2B distributors still on the fence about investing seriously in digital sales channels, CE's results make a persuasive case: the customers are ready, the technology exists, and the revenue opportunity is real. The question is no longer whether to go digital, but how to do it well.