January 15, 2018
Source: Electronics Representatives Association

by David Foster
Americas Channel Manager
Sensata Technologies
David Foster is the Americas Channel Manager for Sensata’s Industrial Solution business and has been a student of distribution for more than 35 years. He serves on the ERA 2018 Conference Committee and chairs the Sponsorship Sub-Committee.
You can reach David Foster at david.foster@sensata.com.
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How customers get information, what they share, what they want and don’t want have transformed the balance and understanding of when to push and when to step back.
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Few of us have participated in sales meetings where the subject of sales leads does not come up. “We need more leads,” or “Show us follow-up on the leads we’ve given you” are perennial rallying cries heard in virtually every QBR or rep/supplier/channel partner business meeting. As sales professionals, we are constantly hunting for new opportunities, prospects and markets to serve, and rightfully so.
As a manufacturer, we have teams who attend trade shows, study CRM results, analyze point of sale, assist with technical inquiries, process online RFQs, and in general, have oversight responsibility for tracking the global business. Our manufacturers’ reps, like yours, are bright, capable and hungry. Despite our collective zest for exemplary service, however, our customers too often tell us that we either 1) ignore their requests (quite common), or 2) bombard them with additional questions or qualifiers, require registration or cause some other “friction” that crosses the line from being responsive to becoming intrusive.
In this area, our industry has been caught napping, and we need to more quickly recognize, respect and react to the dramatic shifts taking place in our customers’ worlds. How customers get information, what they share, what they want and don’t want have transformed the balance and understanding of when to push and when to step back.
Electronic commerce and Internet retailers have taught us a thing or two about the new concepts of selling. No one likes the idea of being defined by their competition, but it is beneficial to consider for a moment how each of us likes to be treated when we shop in our personal lives. When we want the full service of a salesperson, a call back, or when we just want the information we asked for are probably not much different for an engineer or purchasing professional.
In his book “Digital Body Language,” author Steven Woods covers in detail the difference between inquiries, marketing qualified leads, sales accepted leads, sales qualified leads and closed business. By thoughtfully filtering leads into categories, we as manufacturers accomplish two things: respect for our reps’ time and respect for the customer.
Our reps deserve qualified referrals with real revenue potential, and our customers — large or small — deserve answers, fast. It is simply more practical to place the onus of lead management onto the manufacturer, and own responsibility to honor the hectic pace and day-to-day workload of our manufacturers’ reps. It is the reps who provide access to accounts, projects and decision-makers. As the supplier, we need to respect how that access was earned and can be squandered by mismanaging our reps’ time.
Another sales lead source is not inquiries at all, but rather the sensible tracking of our customer churn — those end users who have trailed off or are new to our business. Some manufacturers weave this function onto their inside sales teams; others have true sales development reps; but again, a reasonable approach is to pass qualified revenue opportunities to reps via the CRM and then track accordingly. A good lead can also be an expiring quote or a suggested upgrade from an existing product.
Manufacturers and reps have an opportunity to collaborate on these ideas in advance and integrate the concepts into the formal lead program.
Prospective buyer sources are not infinite, so let’s treat all inbound inquiries with TLC.
How about this as a message to our fellow suppliers? Respect.
R – Reply to the customer, quickly. Answer the question, interpret the data sheet, send the list of authorized distributors and do whatever the customer asked.
E – Expect no details. Commonly requested information should be shared by us, without hesitation, or conditions, such as answering surveys, registering, etc.
S – Selling while replying is OK. Remind
the customer why we are the best at what we do, how our products outperform, save time and money.
P – Propose an action. Would the customer like a sample? A white paper that explains a concept in greater detail? A follow-up call? The answers here determine if we have permission from the customer to push further.
E – Elevate only the best leads for follow-up and action. Agree with the reps prior at what point they would be expected or want to dedicate time and see the customer.
C – Coaching while replying is OK. Offering tips, options and examples, especially when the customer does not expect it, establishes us as teachers and full-service experts in our field. If the customers want more details, they will know who to call.
T – Thanking while replying is mandatory. Giving the customers a clear path (if you need more information, call, click, etc.) is expected.
With thanks to Aretha Franklin for the above, wishing you all a successful 2018.
ERA NEWS INDUSTRY NEWS COMMENTARIES
> Connect the selling strategy dots to engage and reward the sales team
January 15, 2018
Source: Electronics Representatives Association
by Brian Flynn
Vice President of Sales
Sager Electronics
As vice president of sales at Sager Electronics, Brian Flynn leads an organization of 175 inside and outside sales representatives and is responsible for driving his team to achieve Sager’s sales goals. With more than 20 years of experience at Sager, Flynn is well-versed in all areas of the business, from distribution to sales. Many of his years at Sager were spent in sales operations where he is credited with refining and implementing many of the company’s sales processes and reporting. Upon joining sales, he led a number of Sager’s service centers in multiple regions before returning to corporate to join the company’s executive leadership team. Flynn is a current member of ERA’s 2018 Conference Breakouts Sub-Committee.
You can reach Brian Flynn at bflynn@sager.com.
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If distributors can work with reps to supply information that results in reps getting their deserved credit, they emerge as more advantageous partners.
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In our industry today, suppliers want increased value from their distributors, value beyond traditional fulfillment. When that value is delivered in the form of improved design efforts, suppliers have responded by rewarding those efforts with design registrations programs that have largely been successful. This works especially well where the opportunities are discovered, designed and delivered to a customer in a single location.
But how does one motivate and compensate both distributor and manufacturers’ rep salespeople for business that is outsourced or moved outside of their primary sales regions? The answer has primarily been a split commission program, but not enough progress has been made toward a system that rewards opportunity development that leads to a design registration and compensates everyone appropriately.
Distributors may eventually see the quote opportunities emerge from wherever the purchase is taking place, but for reps, if they don’t get the sales in their territory or spend an inordinate amount of time chasing down information, they lose. If distributors can work with reps to supply information that results in reps getting their deserved credit, they emerge as more advantageous partners.
A quality program starts by addressing the sales process from inception to production. The market today is demanding more specialization and specialization costs money. A comprehensive splits program allows for more specialization within the sales team, working backroom engineering while addressing the customer’s point of purchase. Plans should be commensurate with the contributions of each member with design efforts receiving the majority of the reward, but plans should also recognize the service levels required for fulfillment.
Detailed reporting becomes the next pillar of an effective program. The process must allow for early communication, from the team working the design end to the team that will eventually service the business. This is critical in creating customer engagement and future supply chain programs.
The ability to track and reward this design effort without burdening the salesperson with over-documentation allows for more selling time and, therefore, more engaged salespeople. As a distributor, the demand creation aspect of the business often times is a team effort with manufacturers’ representative partners. Manufacturers’ representatives value distributors who cover OEMs where design work is done. The ability of a distributor to provide detailed reporting to a manufacturers’ rep ensures that partners can track business they’ve participated in creating as POS reporting generally lags real time shipments to the customer.
A robust CRM is a critical tool in a split commission program, offering functionality to follow and communicate the work throughout the design process and track book to win business. This is especially so given that organizations may have multiple sales representation involved in a program. With field and inside sales representatives, sales specialists and manufacturers’ representatives all potentially involved in the design to fulfillment process, a distributor’s CRM needs to provide detailed reporting and the necessary tracking to properly compensate all contributors to the win. All of these people involved in the design must be part of the communication flow, and all must be in position to update the opportunity as it develops. To facilitate this, the distributor CRM must contain a base of data of assigned personnel, including the rep in the territory, and the specific folks, both at the rep and distributor, assigned to the OEM and CEM. Also included must be any specialized sales team such as sales engineering or field application engineering, the inside sales team and the managers of all those assigned. When this is done properly and the data are maintained, information flows easily and is inclusive to all the key parties. It also sets up the next evolution, where ideally this information can be provided on distributors POS reports to suppliers.
The sales process can be complex. Take the time to connect the selling strategy dots to engage and reward the sales team. It will definitely pay off in the end.
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ERA NEWS INDUSTRY NEWS COMMENTARIES