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How Effective Is Your Brand’s Sales Force? | March 19, 2014 (0 comments)
Skillman, NJ—Today’s post-recessionary retail environment is a very selective and unforgiving place for both retailers and wholesale brands as consumers continue to grow increasingly discerning in purchasing decisions. Many fine jewelry stores have disappeared from the scene in recent years and the current ones remain very frugal in their buying habits. Working proactively with an existing distribution network, as well as discovering new selling opportunities, is vital in maintaining sales growth. Thus, a skilled, assertive and well-equipped field sales team is a necessity, not a luxury. (Editor’s note: While this article is focused on the wholesale brand sales force, some key skills described herein are of value to retailers as well.)
With this reality in mind, evaluating the effectiveness of your field sales force can be a revealing and revenue-improving exercise. Below are a few questions to consider if undertaking this project is to benefit your business:
Should I employ my sales reps, use independent reps, or a combination of both?
Geographical coverage, call frequency, time spent on a call, and prospecting while traveling converge as we face this question. Also, the level of sales rep expertise in selling and presentation, and training and visual merchandising, must be analyzed. A good initial step is to perform a quantitative analysis of retailer call requirements versus sales force call capacity, and compare with a qualitative judgment of the current team’s professional skills. This exercise may confirm the current state is fine or indicate changes to consider.
During this analysis, the choice between independent versus employed sales reps begins to surface. A sales volume threshold, or at least an expectation of increased sales volume, is usually needed to justify the greater expense of an employed sales rep versus an independent one. However, the trade-off between the dedication, deeper expertise, and brand loyalty of an in-house sales rep versus the economy of variable commission associated with independent reps must be balanced, based upon business needs. A combination of both methods, applied regionally, also may be a good option.
Does our sales team possess the optimal skill set to be successful versus the competition?
The sales representative of today cannot flourish only by writing replenishment orders and providing service. Advanced selling and presentation skills, working knowledge of the Microsoft Office Suite (or other software retailers use), knowledge of basic retail mathematics such as turnover and margin calculations, ability to prioritize and manage time and travel, as well as competence in merchandising and display are indispensable skills required for any professional sales rep in our business. To the extent your team has these skills, your company will capture precious retailer open-to-buy and case space from competitors with less-effective sales representatives.
The composition and maturity level of the distribution network should also help comprise the sales force that manages it. For instance, chain accounts require different management skills than independents, as do department stores. Newer brands need trailblazers more than account managers. These points may seem obvious, but companies often fall into the trap of attempting to manage complex business challenges using less-than-optimal resources.
Does my sales team have the “skill and will” to prospect for new business?
Most brands, save the fortunate ones currently enjoying the “front side” of the growth curve, have seen some attrition in customer base over the last few years. Therefore, the need to add new customers and possibly diversify to new trade channels is vital to keep revenue intact. Sales reps will confirm that they consistently prospect for new business, but are they really doing so? And, if so, do they have the skills, support and discipline to execute this part of their jobs effectively? Prospecting combines various aptitudes, and can be taught, but is not easy for anyone. Effective sales reps will have been instructed about ways to overcome feelings of imposition through good preparation, and begin to view cold-calling as a vital part of their business. A few keys to achieving success at prospecting are:
- Commitment to the process as a part of the job
- Advance preparation and research of targets
- Developing and employing a cold-calling style and approach
- Discipline in field execution – an impactful call versus just a “hello”
- Follow up – each contact is the beginning of a possible relationship
Very often, even top sales management does not focus on managing and training in the realm of new business prospecting. This dynamic represents an opportunity for many wholesale brands.
Is my sales team properly trained and are they able to train their customers? Do I need a separate training function?
Training is a challenging and ongoing support function that is often well executed by larger companies with greater resources, but deficient in smaller organizations for reasons of funding and staff. Effective training can improve sales results by avoiding on-the-job training where sales reps learn by mistakes. Increase confidence among retail sales people through training in how to present your products to consumers, as retail associates often avoid showing products with which they are less familiar. Here are a few suggestions for smaller companies to help with this issue:
- Create a simple Power Point presentation about all aspects of your company and products to be presented to sales and customer service reps and update it regularly
- Allow new sales reps to travel with experienced ones before moving into their territories
- Create basic PowerPoint company and product training directed at retailers and update it for new introductions as needed to remain current
Depending on company size, it may be interesting to consider creating a position of training manager if one does not already exist. Proper training is an investment that ensures your company and products are always presented in the proper light, which will positively impact sales.
Has the company provided the proper tools to enable success of the sales effort?
Before placing the entire responsibility of selling success on the backs of the sales team, be certain the company has equipped them to succeed. These questions, answered properly, may improve sales effort:
- Do we have the most qualified sales manager in place?
- Is the customer service department effective? Do they understand their mandate? Are they well informed about the business?
- Are there promotions or incentives in place, directed at: sales reps, retailers, and/or consumers?
- Do we have all the proper display, point-of-sale and printed materials needed to present the product optimally at retail?
- Are sales rep product samples and sample kits in order and easy to manage both by reps and internal support staff?
- Is everyone in the company, especially retailer-facing staff, informed about the latest products, promotions and other initiatives currently available? Should we publish periodic newsletter(s), directed separately at sales reps and retailers, to perform this task?
Hopefully these exercises have been thought provoking, knowing that many companies already are doing a great job in sales and marketing. I wish you all excellent sales results during the remainder of 2014.
MJB Solutions, LLC, is a consulting firm founded by Michael Belleveau, the former CEO of luxury brand Baccarat, Inc. MJB Solutions focuses on business development and revenue expansion for brands in the jewelry, watch, tabletop and decorative accessories categories. Contact michael@mjbsolutions.net or call 917 375 1469.