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As the time for his annual rep training program neared, a manufacturer let Agency Sales magazine know how much value he placed on the input he received from his outsourced sales force when it came to training.
The manufacturer enthusiastically reported, “One of the most valuable things I learned from my reps was their willingness to share opinions when it came to the types of training they needed. I’ll never forget one rep telling me that he made it a habit to rate his principals on how much importance they placed on training their reps. Here was a rep with more than a quarter century’s experience who let me know that the manufacturers who showed that they truly valued the importance of training were the ones he found it easiest to work with. To repeat an often-used phrase, he considered them his ‘emotional favorites.’ As that rep told me, ‘It’s those manufacturers who have learned over the years what we’re truly up against. As a result, they can anticipate problems and work to solve them before they grow larger than they should and ultimately destroy the relationship.’ And a major step in anticipating those problems is taken during the training process.”
More on Training
Continuing with a discussion of the importance of rep training, another manufacturer described what he thought was a somewhat ‘negative,’ but ultimately effective, means of training. According to the manufacturer, “We adopted a process whereby we made available to our reps a complaint file that evolved out of customer complaints we dealt with in the past.
“From these complaints our reps are able to gain a familiarity with the kinds of problems they can anticipate and more important, learn how they can be effectively handled. Our thinking is that one of the best ways to forestall problems is to have everyone (e.g., agents) know what has happened and what can happen. They can then tailor their presentations in order to emphasize the strengths of the products and to be ready for questions that might be asked. We’ve done this for years and it’s truly been effective.”
Sharing (Information) Is Caring
If manufacturers and their independent representative network don’t share information, then they’re never going to be able to make the most of customer feedback.
A manufacturer’s marketing manager communicated that she calls her agents regularly in order to learn about “things in general.” She explained, “It’s one thing to call an agent and ask about the status of this and that, but it’s quite another to truly get a sense of what’s really happening on the customer level. Agents are busy people, and we’re well aware that they represent principals other than us. However, I know that only through this sort of casual conversation can I always gain the sense of customers’ well-being that I need.
“If I ask specific questions about customer satisfaction, I get the type of answer I’d expect from hotshot salespeople — ‘Everything is terrific!’ Now we both know that things aren’t always terrific, so I try to probe a bit without asking specific questions. The information is there, with the agent, you just have to lead them to want to communicate with you — and they will. I guess there are other techniques that use questionnaires and all that stuff, but I think my amateur approach works a whole lot better.”
The Manufacturer’s Role in Qualifying Leads
When the subject of what manufacturers should be doing in terms of qualifying sales leads for their reps came up, one manufacturer volunteered that it’s up to the manufacturer to play a strong role when it comes to qualifying sales leads before they even get to the rep.
According to the manufacturer, “I’ve heard all the reasons from others as to why they believe it’s the rep’s job, but I look at it this way — if you had a salaried sales force, you would qualify the leads one way or the other. Any sales manager who knows his stuff knows that lead qualification is a poor way to make use of a talented salesperson’s time. That person should be in the field making calls. How is this any different than when you sell through independent agents? You expect them to do what they do best — sell your products. Isn’t it really working with a double standard to think that agents should qualify leads and salaried salespeople should have them qualified for them?”
Looking at Past History
When four non-competing manufacturers participated in a brainstorming conference call late this summer, one of the participants offered her take on evaluating reps. According to the manufacturer, “If I’ve learned anything about working with reps it’s to pay attention to whom they’ve represented in the past and how they’ve performed with those principals. The ability of an agency to attract and retain a top-performing principal is key in any decision I make regarding who I want to work with. The characteristic I refer to, and I guess I can call it tenure, can really only be evidenced by agencies that have been in business for a number of years. But what lengthy tenure tells me is that the rep firm owner who can boast of years of service with one or more of its principals has already shown the ability attract and hold on to its own highly qualified sales personnel. That’s why principals have stayed with them.”
Studying Potential Reps
Over the course of that same phone call, another manufacturer was asked how his company was conducting its search on the way to constructing its first outsourced rep sales network. “As we looked to put our network together, we were employing two methods. First, after we determine where we need a presence, we’re looking geographically. Second, we’re looking to fill vertical markets. That means we’re taking a look at what a rep might specialize in, what other product line he represents and determining if it’s a good fit for us.
“To assist us in our efforts, we’ve made it a point to join MANA and one other industry-specific rep association that can put us in touch with potential reps. Also, we’re using tools such as MANA’s online directory, advertising and relying on word of mouth to make the necessary contacts.”
Is Anyone Listening?
A question about communicating was posed on MANA’s LinkedIn discussion page late this spring that drew an immediate response from a manufacturer. One manufacturer was complaining about the fact his reps didn’t appear to pay attention whenever he was speaking to them during sales meetings. His plight drew an immediate response from another manufacturer: “Keep in mind that reps are independent business people. As such they don’t like being talked at. Instead of talking at your agents, solicit input from them and make sure you provide them with an opportunity to play an active role in the meeting. Make sure, however, that their presentation is up-beat, and that it relates to problem-solving themes.
“Even if you don’t plan to include your agents in the formal part of your sales meeting, you should make provision for them to take part in an extensive open session. You can prepare for this by sending a questionnaire to them in advance asking for topics they’d like to discuss. You can even take this a step further and ask one of the attendees — in advance — to serve as a moderator for a particular topic.”
The manufacturer added, “If you’re fortunate enough to have a rep council, the members of the council are in an ideal position to take part in the meeting. You and they have already been meeting and discussing operations. They can get up to speed for a meeting a lot faster than those who are not on the councils. Take advantage of them.”
Ask About Future Plans
A few years ago Agency Sales began a long-running series of articles that profile individual rep agencies. As a part of those articles agency owners are always asked about how they communicate to their principals concerning their future plans. The importance of that question was demonstrated recently when a manufacturer contacted us to let us know about the position he found himself in when an agency owner let him know — on very short notice — that he was selling the business and retiring. The short notice placed the manufacturer at a disadvantage for two reasons; first, he had to decide whether he would stay with the new owner of the agency; second, he had to quickly identify and act on his options for the future.
After admitting his initial displeasure, the manufacturer admitted that while he faulted the agent for not letting him know about his plans, “I also was at fault. I’ve asked myself several times, why didn’t I regularly inquire of this rep and all my other reps concerning what their plans were for the future?”
Planning to avoid this problem in the future, the manufacturer put into place a plan whereby he annually asks agents about their plans for the future. “A couple of things have happened as a result. Several of my reps have told me that this has gotten them to think more about the future — something they weren’t doing much of. Next, my reps have told me that my asking about their plans shows a genuine interest on my part as to their well-being. They appreciate the interest and have reciprocated by regularly communicating with me on any and all matters of importance.”
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