Winter 2008: by Brent Banda

Improving Sales Agent Performance

Most manufacturers view Sales Agents as a necessary evil. Few manufacturers feel the Sales Agents earn their pay or focus on increasing volume.

Sales Agents are people. In any organization, performance is a result of having the right people on board and forming a working relationship that produces good work. The following are practical leverage points to build a strong Sales Agent network.

To the salesperson, ROI is influenced by factors such as margin, volume and how easy the product is to sell.

Sales Agencies are Businesses Too
Just like any company, high performing Sales Agencies make money when products can be sold efficiently or when they sell something completely unique. Put yourself in their shoes. What is your company like to work with?

Is your product easy to move? Sure, you're paying the rep to sell the product and you expect some work for that commission. But you must also realize they'll put their time behind the product in their portfolio with the highest ROI. To the salesperson, ROI is influenced by factors such as margin, volume and how easy the product is to sell.

Does your company offer a high level of sales support and customer service? The Sales Agent may be responsible to solve customer problems, but rarely can the Agent do this on his/her own. Make sure they get information and support from you so they can do their job. The manufacturer and Agent relationship often solidifies into a partnership after working through a complex customer problem.

Start With The Right People
Manufacturers generally do a poor job of finding the best Agents. They are more focused on finding any Agent in the region than the right Agent. Before you begin negotiating a rep contract, make sure you're talking to the right potential partner.

To locate Sales Agents for our manufacturing clients, we often interview high-performing retailers. Who do they like working with and why? Who would they trust when they need product support? When you know who is respected in the region, you will have a greater degree of confidence in negotiating a potential Sales Agency contract. Does the Agent's perception of product support match your company's expectations? Are your Agent's expectations of the manufacturer's sales support realistic? Many times these questions point to corporate culture issues. Remember, a partnership is like a marriage. Make sure you're selecting the right person.

Support A Quick Transaction
Twenty years ago reps would visit customers on the road from Monday to Thursday and send quotes by mail on Friday. Customers expected up to a seven-day turn-around on a quote. Times have obviously changed with technology.

In many industries, timely and accurate quote information is more important than product quality. Consider what your organization can do to support a fast turnaround. Some manufacturers invest heavily in custom software enabling their Agents to spec out product. The customer receives a quote and detailed specifications in minutes. Customers don't have time for best guesses and sales reps don't have time to make those mistakes.

Hold Sales Agents Accountable
Whatever the industry, the worst employees are always the ones that hate to be held accountable for their actions. They are lazy and often do not pay for themselves. This includes Sales Agents that avoid completing call sheets or providing detailed sales data on their customers.

From our experience, the best Sales Agents have no problem answering for their actions. All high-performers do not want to be micromanaged, but they also have nothing to hide. The more sophisticated salesperson knows that manufacturers can be easier to work with when they have good data on how their product is sold. This data can help the manufacturer improve factors such as logistics, pricing, product development and sales support materials.

A common mistake is to simply ignore an Agency's performance. Manufacturers do not have time to evaluate and analyze results, and simply assume that agents are performing effectively. Lack of feedback and follow-up with Agents will move your product's priority to the bottom of the pile.

Make sure to understand the nuances in your industry when establishing and developing your Sales Agent network. Remember, business is about relationships and investing a little time in your people most often pays for itself many times over.

> Back to Latest Ideas & Research