Despite the forces of change, many field sales reps have used the same tactics for decades. These have been largely self-directed, with salespeople making their own decisions about how and where they go to market, a highly inefficient process.
Distributors reluctant to change these deeply rooted habits are missing out and misusing their most powerful and expensive sales tools – their field sales reps.
In a customer-centric world, distributors must align their support with customers’ needs. For example, we usually find that more than 20% of accounts assigned to an outside sales rep can move to another lower-cost function, such as inside sales.
But old ways of thinking about what drives sales are holding distributors back. Some outdated assumptions that no longer fit today’s market include:
- Field sales reps are money-motivated.
- If a sales rep is in the office, they aren’t selling.
- Prospecting discussions are unproductive.
These are just not true anymore.
What’s more, Indian River Consulting Group has found that roughly 80%-98% of customers’ purchases are products they have previously purchased from the distributor.
A customer who is comfortable reordering from the distributor no longer depends on the field salesperson. Instead, they continue to reorder because they value the relationship with the company. The field sales rep has accomplished their job of securing the customer and should pass the repeat business to an inside sales rep.
The goal then should be to narrow the role of the field sales rep to one that is focused on new business development and demand creation. This may result in the creation of new specialized selling roles, such as a product specialist, and expanding the reach of customer service and inside sales.
You may also want to add a sales admin who can take non-value-added (but still important) tasks off a sales rep’s plate.
Once you’ve said goodbye to old assumptions, you can effectively pursue a sales transformation to a management-directed sales force. Start with these three steps:
Assess your current strategy
Determine whether your business is ahead of or behind the status quo. Take time to research emerging new sales processes, such as hybrid sales models that take traditional roles and specialize them across outside and inside sales, as well as customer service.
Compare your company to industry leaders to better understand your strengths and weaknesses.
Focus on high-impact, least-disruptive changes
Identifying areas of your sales process that will be the least disruptive while generating the most impact are typically ideal places to start. From here, you can set small, attainable goals.
For example, implementing software that puts information at your rep’s fingertips or a web-based app so clients can initiate their own returned material authorizations are excellent ways to improve customer experience. That provides value to your company, as well.
Embrace change
Sales transformation won’t happen overnight. Successful change requires intentional steps for incremental improvement, such as pilot programs that introduce change without causing company-wide disruption.
No matter the size of the change, there will always be resistance. Include your sales team and other stakeholders in the planning to combat pushback. Involvement will make them feel heard and increase their buy-in.
Mike Marks co-founded IRCG in April 1987. He began his consulting practice after working in distribution management for more than 20 years. Over the years, his narrow focus in B2B channel-driven markets has created an extensive number of deep executive relationships within virtually every business vertical in construction, industrial, OEM, agricultural, and healthcare.
1 thought on “Embrace the New Look of Sales in Distribution”
Mike, I totally agree with your thoughts. One of the major problems distributor selling teams face comes by way of sales managers who want their sales people to follow the same sales process, or path to success the manager followed earlier in their career. For some, embracing the new look of selling equates to them being wrong when they did it in the 90s. Our customers live in a new world, and that means we have to make the move along with them or else we should pack our bags slink off into the sunset.