J. Michael Marks tackles a frequently contemptuous topic about distribution sales representatives.
. . . in my experience, most sales reps are market-servers, not market-makers. . . we’ve found that 95% of what customers buy from distributors they have bought before.
The devil is in the details in this reference. How one defines sales really determines whether Marks’ perspective is correct or overly generalized. Clearly, his post is written more towards the allocation of resources to optimize service to customers since he did not reference awareness, adoption and sales funnel dynamics.
So why comment on this post? Marks makes this point:
. . . sales call frequency should be defined by the customer. . . . Customers should also define their preferred communication channels. Some customers may prefer to see reps in person, but others may prefer to get the help they need via phone, chat, etc.
Source: NAW, October 25, 2018. Link. Allocating your sales force’s time for the best ROI isn’t as simple as finding the right number of times to visit each customer. It requires an understanding of your sales force’s true cost and your customer’s buying potential and preferences.
INSIGHTS: I’ve been fortunate to work with manufacturer and distribution sales teams throughout my animal health career. Personally, I believe an activated distribution sales force is a powerful echo in marketing and sales effort considerations.
That said, at the individual customer level, sitting down with decision makers on a semi-annual or quarterly basis to establish how-to-serve preferences is critical to getting value for the customer, the rep and distribution company.
At the manufacturer rep level, using aggregated sales transaction data will help determine which one or two distributors own the share of an individual manufacturer’s purchases at any given customer location. This information tells you who you need to work with to ensure your market messages are received and supported effectively.
Chris Kelly says
“…at the individual customer level, sitting down with decision makers on a semi-annual or quarterly basis to establish how-to-serve preferences is critical to getting value for the customer, the rep and distribution company.”
I agree with this assessment. The best DSRs understand this, and develop a cadence with their customers that prioritize their preferences.