SM: Red Batch-Group 9

Team Members: Amogh Tripathi, Anandhu Ajith Vyas, Anmol,

Esha Mehra, Nikesh Gour, Suhapriya Venkateswaran, Shreya Bajpai
The New Science of
Sales Force Productivity
PUTTING SCIENCE INTO SALES
 With buyers becoming smarter, old methods of depending on rainmakers to make huge sales will not enhance company’s growth.
Companies have started using tools and training to increase the productivity of the team as a whole.
 The goal isn’t to replace rainmakers but to narrow the gap between the top 15% or 20% and the rest of the sales force which
ultimately reduced the costs of hiring specialists for the job.
 New approaches focus on data, analysis, processes, and tools to redraw the boundaries of markets and increase salesforce’s
productivity.
 Companies that use the tactic well have found that, while even top sellers do better, reps in the lower quartiles show dramatic
improvement, with productivity jumps of 200%.
 Leads were categorized as either high priority or low priority to using data that included records of past company transactions.
Top group was made up of the new highest-priority prospects – and yet only about half of them had previously been classified as
high priority by sales manager
 Prospects’ characteristics were jotted down to sell the right products to the right customer.
 Qualified details were created regarding the clients, that would eventually help to set targets, to give clarity to the sales reps on
how should they prioritise their clients. This resulted in increased sales, motivated sales reps and a definite growth target.
 The G2M logic talks about a segmentation model, where segmenting the clients on the basis of transactional, functional,
consultative, and enterprise where existing customer base is divided into groups based on relationship of the customer with the
firm and into segments based on customer’s role as the resource allocation and intimacy varies according to customer category.
 The segmentation helped in identifying the needs across regions and deploying sales reps with a clearer idea on how to go about
it
SETTING TARGETS
 The earlier approach was to set unrealistic goals for salespeople without analysing the competitive data across regions and
segments. This process might demotivate the salespeople.
 To keep a check on the employees a site was created for managers to see every step of sales process
 Weekly, monthly and quarterly forecasts were made. This provided with insights for the sales growth numbers. Also, kept the
sales folks motivated.
 Based on the data, area sales managers developed a view of territories, accounts and targets for individual reps by multiplying
potential market size by target shares for each market.
 The process was tweaked every now and then to keep the corporate objectives and market fluctuations intact
STEPPING UP PRODUCTIVITY
 To increase the productivity of the reps, companies learned to use four levers that made productivity both predictable and
manageable.
 According to the segments, needs were identified and customized for each prospect.
 Optimized automation, tools and procedures were adopted for sales management processes like detailed pipeline discussions,
systematic account and territory plan reviews, defined lead distribution processes and electronic dashboards.
 Team-work was encouraged so that absence of any individual wouldn’t hamper the relationship with the clients.
 A system was put into place to manage the performance of the employees. Each reps’ performance was taken into account for
sales planning. To enhance the technological skills tools and training were provided along with incentivization to best
performers.
 Sales resources were distributes systematically across segments based on the needs of the customers. Teams were created with
complex sales and were supported at every step which increased the efficiency of the reps and ultimately resulted in company’s
growth.
QUESTION

In a team scenario, where every sales rep is productive, how do we assign the regions to
individual reps? On what factors segmented regions are distributed among reps?
MATCH YOUR
SALES FORCE STRUCTURE
TO YOUR
BUSINESS LIFE CYCLE
 MATCH YOUR SALES FORCE STRUCTURE TO MATCH
YOUR BUSINESS CYCLE
• Key takeaway: A company must focus on different aspects of its sales force structure over the life cycle of the
business, just as it matches customer strategy to the life cycle of a product.
• Reason: Shifts in the sales forces structure are essential if a company wants to keep winning the race for customers.
Adapting to the changing environment is crucial in order to stay relevant in the long run.
• Methodology: Companies must alter four factors over time: the roles that the sales force and selling partners play;
the size of the sales force; the sales force’s degree of specialization; and how salespeople apportion their efforts
among different customers, products, and activities. These variables are critical because they determine how quickly
sales forces respond to market opportunities; they influence sales forces’ performance; and they affect companies’
revenues, costs, and profitability.

1. In the start-up stage: decision on the role of sales force selling directly to customers or through partners
2. In the growth stage: size of sales force and degree of specialization
3. In the maturity stage: optimum allocation & assignment of sales resources
4. In the decline stage: size of sales force
MATCH YOUR SALES FORCE STRUCTURE TO MATCH
YOUR BUSINESS CYCLE
MATCH YOUR SALES FORCE STRUCTURE TO MATCH
YOUR BUSINESS CYCLE
Key takeaways for underlying customer strategy at different stages:
 Start-up stage: Create awareness and generate quick product uptake
 Growth stage: Penetrate deeper into existing segments and develop new ones
 Maturity stage: Focus on efficiently serving and retaining existing customers
 Decline stage: Emphasize efficiency, protect critical customer relationships, exit unprofitable segments
Question

Under growth stage, the article talks about the need to specialize. Isn’t adopting a long-
tail strategy more lucrative? As per long-tail, simply offering popular products will not
be an appealing strategy when your customers reach the limit of buying company’s
popular products. If the goal is to keep and nurture company’s most loyal and best-
converting customers, expanding the scope of products with more niche ones, because
the already loyal group will definitely have a bold interest in your less popular stuff.
Case study on Flexible (FLEX
– tools)
1. DEALING WITH THE BIG TOOL COMPANIES THAT
ARE CONSOLIDATING AND MOVING INTO THE NICHE
MARKET OF FLEXIBLE?
 Releasing a new product (Innovation driven and technology enhanced features)
 Improving the competing product
 Finding the targeted audience which Milwaukee is trying to capture
 Adjusting the pricing strategies
 Upskilling the salesforce
 Creating a loyalty or rewards program
 Making a difference with customer service
 Having new marketing campaigns
 Increasing visibility with technologies (Digital marketing, Marketing analytics)
 Predicting and forecasting Market and Customer trends (Customer analytics)
 Looking for partnerships opportunities
 Improving supplier relationships
 Changing Supply chain dynamics(Increasing distribution channels)
 Providing Online training, webinars and documentations for product workflow
 Support executives for product queries and issues
2. DEALING WITH COMPANIES WHO ARE TRYING TO
FOCUS ON THE LOWER END OF THE MARKET AND ARE
TARGETING DIY CHAINS?
 As FLEXIBLE is known for its heavy tools in Pipe dependent industries and it has a pretty decent
customer base in this segment. If Rothenberger isn’t affecting its sales and they play in a different
segment FLEXIBLE should overlook and be aware of the innovations and product offering by
Rothenberger constantly. Also look for improving the awareness among the customers about industrial
tools and its importance.
 FLEXIBLE also can look for partnership with other DIY manufacturers providing Solution selling. This
also opens up for the possibility of Cross Selling and Upselling.
 If FLEXIBLE feels threatened by growing customer base in DIY segments or want to diverse the
product offering, they should try to increase their product portfolio through diversification and try to
capture market share. A major concern would be that this in turn shouldn’t cannibalize their existing
products. Its better advisable to merge or acquire a player which is competing in this segment and use
FLEXIBLE’s expertise in innovation, technology, customer service, marketing and distribution to its
advantage.
3. DEALING WITH ECOMMERCE GIANTS LIKE
AMAZON IN THE MARKETPLACE?
 Flexible can approach this in a smart way to hedge marketing bets for an industrial manufacturer wanting to reach both B2B and
B2C customers. Through its own portal, Flexible is catering to its B2B contractor base and also nurturing its professional
relationships while retaining valuable customer insights. At the same time, Flexible is reaching a much larger audience of B2B and
B2C customers and prospects with paid e-commerce advertising through (Amazon). Lastly, Flexible can experiment with the
Accelerator Program, receiving additional marketing benefits without added fees but not giving away its brand equity.
 Having an in house e-commerce portal would help to understand the customer base and also maintain a healthy relationship with
the customers.

Benefits:

1. Better control over the customer queries and customer services

2. Customer database is maintained
3. Dashboards and insights can be easily derived
4. More customizable and better user interface can be provided
5. Better engagement and productivity
6. Can build a learning platform for customers (i.e. Providing support and training documents

 Its is also important to improve the relationship with logistics partners.

 4.SHOULD FLEXIBLE RECONSIDER ITS BUSINESS
MODEL- ESPECIALLY CONCERNING ITS GO-TO-
MARKET STRATEGY?
● Switching to Omnichannel while keeping price
differentiation owing to varied level of experience in Segmentation based on sales process
different channels(use of 3rd party ecommerce along
with its own ecommerce platform)

● Expanding its go-to-market strategy by including rental

model in its current current business model

● Segmenting customers on the basis of degree of

complexity/customization of its product portfolio to
further streamline its sales process and efficient allocate
resources

S1 S2 S3 S4
S5
5. WHAT OTHER INFORMATION WOULD FLEXIBLE
NEED TO MAKE ANY CHANGES TO ITS BUSINESS
MODEL AND/OR GO-TO-MARKET STRATEGY?
 Evaluation of channel strategy adopted by competitors

 Knowledge of cost, benefits and other mechanics of omni-channel distribution

 knowledge of market share of various incumbents in leasing/rental business

 Understanding of customer journey(in tandem with new go-to-market strategy) to better tweak persona
driven marketing

 Evaluation of its existing capabilities and resources in order to incorporate leasing/rental business in its
existing business
HOW TO DEAL WITH COMPANIES THAT SELL DIRECTLY
TO THE CUSTOMERS LIKE HILTI OR WURTH? HOW CAN
FLEXIBLE DIFFERENTIATE ITSELF FROM THESE
COMPETITORS?
 A keen eye on business expansion strategies and proactive implementation of new trends in the industry will always
benefit the company and its growth
 To deal with competitors like HILTI & Wurth that sell directly:

FLEXIBLE needs to attract the direct buying customers by adapting to Mixed organisation:

 For DIY interested & customers active on Social Media - utilising its digital channels like You Tube & Social
Media to post Clips on DIY will attract the focus of customers towards the brand and also towards the different
products along with the DIY ideas
 For Online shoppers, FLEXIBLE can ensure to have a good E-Commerce exposure

So by these the company can ensure to have the existing B2B sector and also expand B2C sector

 FLEXIBLE can differentiate itself by:

 Not diverting from the company’s Strategy - Dynamic Business market, Strengthening relationship with
customers & Adapting to new technologies/Business practices to stay ahead of time
 Ensuring Customer Engagement and Top Quality Service & Product availability
WITH MORE CUSTOMERS MOVING FROM OWNING TO
LEASING OR RENTING TOOLS, WHAT SHOULD
FLEXIBLE DO?
 Adopting technologies/business practices to improve information and service capabilities has always been
one of the strategies of the company
 With change in customer requirements & to not divert from the existing work pattern, the company can have
a new vertical that caters to their needs
 An online portal exclusive to the cater rental tools requirements could be established
 A high quality of customer service and customer satisfaction will help in expanding the business and
ensuring Customer Engagement as well