National BringYour Boss to Work Day
the workday closest to October 16th. Back in 2015, I proposed the addition of another holiday, National Bring your Boss to Work Day. With tongue firmly planted in cheek, I outlined why I felt sellers needed to get their bosses out of the office and in front of customers. This message is even more important today than in the past.
For the enjoyment of our younger readers, we
started our message off with a snapshot of an era when dinosaurs ruled the
planet – circa 1978.
It was the age of leisure suits and wingtips. Sales offices were richly adorned in thickly shagged carpet and orange metallic furniture. The computer, fax machine, Internet, smartphone, tablet, and text message were decades away. The latest bit of sales technology centered on the auto-flip Rolodex. Times were different; very different. And to further amuse our younger readers, several decades ago, distributor owners and sales managers spent significant time visiting customers and traveling with their salespeople. It was the management style, du jour.
Nowadays, leisure suits are a Halloween costume and
management styles are different
The are many reasons why this management style changed. Distributors cover more products and larger
geographical territories, and the business has become more complex. Back in simpler times, value propositions
centered on accurate billing, local inventory, and easy credit terms. Value-adds had yet to enter the lexicon of
most distributors. This kind of solution
selling approach requiring qualified support staff, product specialists, and
expensive laboratories was simply unheard of.
Distractions created by emails and supplier-driven reports were years
away.
Distributor owners and their management staff were far more
tuned into customer personalities and reinforcing relationships in those
days. While I have seen very convincing
arguments for a return to the “good old days” of customer connection,
distributors today face a different set of challenges. I sincerely doubt if anyone would want to
return to these “good old days” and suspect returning to the old ways is totally
impossible. Most distributor managers
lack the bandwidth to even begin approaching the issue. A successful seller still makes good use of
the boss as a strategically important sales tool. The time has come to outline a set of best
practices for utilizing management to accelerate sales growth.
It’s the seller’s job to manage leadership resources
We started the discussion off with the tongue-in-cheek
notion of a “bring your boss to work day.”
Seriously, salespeople must think of their management team as an
additional set of resources they need to channel for creating growth. With this thought, it is the responsibility
of the seller to determine the right place to activate their leadership
team. Management should not be accountable
for setting the date and asking for an old-fashioned ride-along. For all but the newest salesperson, the onus
of scheduling and determining the right customer interaction falls not on
management but the strategic-thinking seller.
Like all good joint call activities, its purpose, the
personalities involved, and scripting the pitch are details established well
ahead of the actual customer interaction.
Follow-ups need to be discussed and planned out immediately following
the visit, with dates and milestones established. The salesperson should retain the
responsibility for making sure everything is finished within the customer’s
time frame and meets their expectations. With this in mind, let’s look into
some of the best uses of distributor leadership.
Don’t wait until there is a fiasco to show commitment
Industry observations show the most common
management-customer interaction occurs during a major customer flare-up. Here’s an often-seen scenario: A supplier misses a delivery date, the
customer’s project is massively delayed, tempers flare, legal beagles growl and
suddenly the management team gets to meet the customer. With that in hand and a pocket full of sales
concessions, distributor leadership rushes in for damage control. Wouldn’t it have been nice if this wasn’t
their first meeting?
Imagine a different scenario.
Here, the distributor’s salesperson makes the effort to
arrange an annual meeting between someone on the leadership team and key
customer personnel at all their top 10 accounts. Call it a customer strategy review, value
meeting, or something of your own choosing, but make it happen. And while going to the trouble, ensure the
meeting is meaningful, not just a firm handshake and a couple of flowery words.
Make the meeting strategically important by providing
insight into your mutual work together and establish a dialog for mutual
growth. Consider these topics:
• Statistics on orders placed, deliveries made,
product types purchased, and seasonal sales trends. On the surface, this topic seems duller
than paint drying, but it offers a vehicle for you and the boss to expound on
local support inventory, emergency deliveries, order fill rates, and your
company’s unique ability to support the customer during the off-season.
• The meeting can restate and reaffirm customer value
created throughout the year. Call it value-add, specific customer value
metrics, etc., but taking time to outline specific examples of the work you
have done to benefit the customer is a best practice. Whenever possible, the boss should use
numbers provided to you by various customer contacts throughout the year. One example might be, “Your operations
manager, Bruce tells us our shift to 7 a.m. deliveries will save more than
three trips back to the shop every day.
With time and mileage thrown in, your $20,000 annual savings justifies
the overtime spent in our warehouse.”
• New programs soon to be released from your
organization make for good discussion.
Why not allow the boss to present new programs on the horizon with your
organization? This allows the customer
to provide feedback and serves to strengthen your ability to negotiate minor
changes to the program to benefit your customer (and further lock in sales).
• Why not gather the customer’s opinion on new product
offerings? With distributors
migrating into new technologies, new supply partners, and adjoining lines of
trade, this is an important topic of discussion. Having someone from the leadership of your
company solicit opinions enhances the customer relationship by allowing them a
mechanism to “buy into” your future offering.
The big kahuna, the Research & Development of
distribution.
Manufacturers have R&D departments scanning the
horizon for new product opportunities and exciting customer trends. For most distributors, the best R&D comes
directly from customers. Imagine the
response if your boss said this: “As a distributor, we don’t have an R&D
department, our only research involves our customers. It isn’t enough for us to provide you with
products and services now. We have to be
ready for your future needs, and it takes time to prepare. Can you give us a view of how you believe
your business will change in the coming years and how you see your needs
changing?”
Use your boss to move up in the organization
Strangely, many distributor salespeople don’t enjoy good
relationships with the real power people at their accounts.
They justify their lack of connection with several
excuses. Many believe their maintenance
or engineering buddy carries the real buying clout. However, over the years, a host of great
distributors have found themselves on the outs because a competitor nurtured a
relationship at the top. Some worry a
quality call on the customer’s top management might damage the relationship
with current contacts. This is where the
boss can help.
Why not leverage a call with the boss to meet and further
your company’s relationship with the financial leaders at your customer? If you use some of the strategies outlined
above, invite your customer’s top brass.
If you have yet to set up a review meeting, launch the call with
something to the effect of, “Mr. Big, your company is one of our major customers. I would like to introduce you to my boss so
that he might learn a little more about your organization. This will not be a sales call. Instead, we want to learn how we might be
able to serve you more effectively.”
Offering up advanced business solutions
One of the results of the various meetings we’ve outlined
could be ideas for nonproduct business solutions. Engaging the clout of your leadership team
speeds the process and allows for more meaningful give and take during the
discussions.
Examples of advanced business solutions include:
For Construction Oriented Distributors
Inventory management, service truck stock programs, job
trailers, consigned inventory, summary billing, and more progressive payment
terms. In every case, management-level
participation makes your job as a salesperson easier and more efficient.
For Industrial Distributors
Inventory management, subassemblies, kitting, etc.
Working with the boss
As you lay plans to “bring your boss to work,” there are
a few points to remember. The
relationship with the account belongs to you.
Even if the boss is responsible for screwing something up, it’s your
mess to clean. In each case outlined
above, the seller must accept responsibility for not only planning the activity
but also the content. Research homework,
as well as legwork, are required.
In nearly every case, the salesperson will need to spend
time well ahead of the appointment to gather data, develop presentations, lay
out scripts, and set expectations.
Consider this part of the bargain.
Your leadership team is a powerful tool for driving business
forward. They have a vested interest in
seeing your business grow. Driving their
involvement will ultimately accelerate your success.
A final thought
I have been pondering the application of strategic
planning principles to customers. Two
critical components of thinking strategically are analyzing potential payoff
and focusing efforts on areas with the greatest bang for the buck. Applying these principles to the accounts of
a distributor salesperson drives another important point; we can’t do this for
every account.
With the typical salesperson’s limited time and the
narrow bandwidth of most distributor managers, it is especially important to
gauge which account deserves the extra attention. For most, the object of your attention falls
at the top of your account list, no more than 10 carefully selected
accounts. Establishing this behavior
provides for both a strong defense of existing business and a powerful offense
in taking business from the competition.
Frank Hurtte is the Founding Partner of River Heights Consulting. Once dubbed “the Mark Twain of the Distribution World,” Frank combines the battle scars of 28 years of front-line "in the trenches" experience with over 16 years of service to knowledge-based distributors and their manufacturer partners.
His easy-going demeanor and “Iowa-speak” make him a relatable favorite among speakers.
Email or call today to see how River Heights Consulting can take your distributor business to the next level.
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Comments
not only helps your company grow but also keeps staff engaged with new challenges that will help them keep up appetites at work by keeping things interesting.