are products they have previously purchased from the distributor. As long as the repurchased product is satisfactory, that repurchase volume should hold steady. According to Forrester, the number of B2B field sales
reps declined by 25 percent between 2014 and 2020. E-commerce and the rise of the inside sales function were considered major drivers of that change. This opens the opportunity for more specialized roles within sales teams, from technical specialists to inside sales support. In fact, we expect the typical distributor to employ more inside salespeople than outside by 2025.
2. Be selective in how outside sales reps are deployed.
In the game of chess, certain pieces — such as the queen and the rooks — are more powerful than others, and therefore more valuable. As a result, players need to be thoughtful about how and when to deploy them to maximize their impact and not expend them carelessly. Outside sales reps are like those high-value chess pieces. Companies may consider freeing them up to focus on high-value sales targets. Meanwhile, inside sales can support the expanding base of customers who prefer a more independent buying process or are simply conducting repeat business. Inside sales can also play a larger and more proactive role in meeting customer needs, giving love to smaller and mid-sized customers who may not have had a lot of attention in the past. This is essential because research from PointClear shows that outside sales calls cost roughly six times as much as inside sales calls. At the same time, inside sales reps can make more calls and spend more time talking to customers, increasing coverage and conversions for the customers who often are low-hanging fruit. By properly targeting and synchronizing the efforts of inside and outside sales reps, distributors can reduce costs while better serving customers and boosting sales.
3. Prioritize good communication and employee engagement.
Succeeding in sales transformation, as with digital transformation, means not only bringing employees along but enlisting them to enthusiastically drive the change. If they aren’t on board and pulling in the same direction, the ship won’t get anywhere. Good change management practices are critical
here — and communication is fundamental. It’s vital to ensure all team members understand the reasons for the changes in structure and strategy, as well as how those changes will benefit them, by removing obstacles and
helping them achieve greater goals. Everyone also needs to understand the risks and potential consequences of doing nothing. There are also best practices for improving employee engagement that you can follow to achieve success. Tools like engagement surveys and scorecards to reward motivated team members can help energize and inspire progress.
4. Redesign sales compensation plans to reflect the new sales process Speaking of rewards, one essential element in a company’s sales transformation plan should be an update to its sales compensation plan to align it with the revised sales structure and goals. This begins with an examination of selling roles, and how and when they’ll be changing.
Some best practices distributors may consider implementing include:
1. Use the pay plan to motivate and incentivize sales teams in their new roles.
2. Design for long-term, sustainable health instead of quick fixes.
3. Identify whether a relative or absolute performance program is best suited to the company’s needs. 4. Structure the plan to pay team members according to their value, motivating them to work more strategically rather than just harder.
5. Increase risk and reward in a way that motivates adoption.
Remember to incorporate sales transformation as part of the overall transformation, including researching technologies that can help sales teams do their jobs more efficiently and effectively. Implementing a customer relationship management (CRM) system to capture important customer data is a good start and will enable the team — outside sales, inside sales, customer service representatives, technical specialists, sales admins and more — to stay on the same page. Data can also help distributors market to existing customers better and target industry niches they may be missing.
Mike Marks is the founding partner of the Indian River Consulting Group, focused on B2B channel-driven markets. Prior to founding IRCG, Marks worked in distribution management for more than 20 years. Reach Marks at
ircg.com.
Summer 2024 45
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64
