Adam J. Fein: Upgrading the wholesale distribution salesforce

In a previous column, I pointed out that the average wholesale distribution sales rep can become much more productive by using technology (see “The Productivity Imperative for Wholesale Distribution”).

Although roles and value will change, there is little evidence to suggest the complete elimination of wholesaler-distributors as important contributors to selling channels in business-to-business markets.  The wholesale distribution salesforce will evolve, but not vanish.  Our Facing the Forces of Change: The Road to Opportunity study highlights two important changes: 

• The value of a distributor’s salesforce will revolve around consultative roles that involve understanding and addressing customers’ needs. There will be less of a need for order taking, answering basic questions or providing readily available product knowledge. Salespeople will need to provide more value than merely understanding the peculiarities of the pricing structure.
• Inside salespeople will have more account management responsibilities as customers take a more active role in the buying process. Examples of these responsibilities include soliciting orders from new and existing customers, suggesting complimentary products or services, solving problems, handling complaints and becoming the primary point of contact between a wholesaler-distributor and the customer.

The evolution of wholesale distribution creates opportunities to boost productivity and increase the effectiveness of the typical sales rep using technology. 

E-mail will be the foundation of many conversations with buyers.   Since desktop e-mail is poorly suited for mobile employees such as salespeople, the use of wireless e-mail solutions will jump dramatically.  Most distributors should also expect to provide a corporate e-mail account for all their employees given the ever-dropping costs of the technology and increasing customer expectations. 

Most salespeople today have the usual complement of laptop and handheld computers to go with their cell phone. While the equipment itself is highly mobile, the information contained in computer devices is detached from the company until these devices are synchronized at the beginning or end of the sales day. As a result, many salespeople lack the ability to access information to answer questions or retrieve customer and order information during the sales day.

Salesforce automation is now evolving toward small, local devices connected anytime, anywhere.  The goal is roaming access to information contained in a central and secure location at the company. These technologies will provide salespeople with the ability to access information and answer questions or retrieve customer information during the sales day.  Naturally, contact information and price lists do not change frequently and do not need to be updated in real-time. But other information, such as whether a particular product is available right now, changes frequently enough to justify the extra expense of real-time connectivity.

Other emerging opportunities include private Internet sites for a sales force that would provide updates on sales leads and opportunities, links to information about prospective customers and collaborative tools such as online meetings. 

Much of this functionality is embedded in Customer Relationship Management (CRM) software products.   Typical CRM applications contain a collection of integrated tools for contact management, information sharing, product configuration, proposal templates, calendars and to-do lists—the basics of day-to-day selling processes. In a recent survey, we found that four out of ten industrial distributors are already using CRM in their business.

The goal is to create an integrated information system for sales planning, scheduling and controlling all pre-sales and post-sales activities. Facing the Forces of Change: The Road to Opportunity found that customers will increasingly expect their distributor to treat them in a consistent, integrated manner. If customers use both conventional and online methods to communicate with you, they will not want to repeat themselves just because different parts of your organization do not share information.

Salespeople, many of whom are accustomed to selling on price, will need training to compete in the evolving world. Distribution sales executives should evaluate each of   their salespeople to determine if he or she needs training in qualifying customers, uncovering problems, identifying solutions or bringing the company’s resources together for problem solving. 

Make sure each sales person is comfortable selling through new technologies and can teach customers how to gain information, place an order, or solve simple problems themselves.  For example, your sales rep should be able to teach customers how to access your company’s website for product information, special marketing promotions, and account information.

Like your customers, salespeople will not use any technology that is too complicated or does not provide real value. Think about your salespeople as “internal customers” who will adopt a new technology only if it helps them do their job better. If the technology does not help them sell more effectively, then the system is to blame, not the salesperson.