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A manufacturer with a long and fruitful relationship with reps was asked whether it’s ever been a good idea for her or her agents to hold back information. Without missing a beat, she offered the following: “How could that ever be a good way to operate? If anything, I’d strongly recommend a practice of full disclosure on any and all issues, because isn’t the real foundation of our business relationship built on information, communication, trust and education?”
She didn’t stop there: “How about when we’ve got a new product introduction? Shouldn’t it be of paramount importance for us to let the rep know exactly who our target audience is for the new product? In addition, isn’t it logical for us to continue the discussion by letting the rep know what we think the customer is doing right now and what we believe he’ll be doing with this product well into the future? If we properly arm the rep with this type of information, then shouldn’t we expect the rep to do a much better job for us, the customer, and ultimately for himself and his agency?”
Finally, she noted, “In the past it’s not unusual for us to hear from our reps that some of their other lines introduce new products that they knew from the beginning had little or no chance for success. All the manufacturer offers them is a false hope based on a dream that will never come true.”
Stop Complaining — Solve the Problem
All the credit in the world is due one manufacturer who decided that a better path to follow would be to stop dwelling on his sense of impatience with reps who in his opinion failed to hit the ground running and instead look for a solution. And the solution he decided upon was to improve the flow of information to his independent manufacturers’ representatives.
According to the manufacturer, “We were impatient in one important territory because we were looking for an immediate uptick in orders from one of our more important customers. When that didn’t result, our obvious target was the new rep. When we went for a joint visit in the territory, something we have noticed earlier was brought to our attention. That customer had been forced to work their way through four different direct salespeople over the course of the last five years. Those changes were brought about because the salespeople moved up our corporate ladder, were transferred to other territories, or otherwise moved on. Our mistaken perception was that the new independent rep could solve all those problems immediately.
“Instead of getting impatient and putting unrealistic expectations on the rep, here’s what we should have done — the rep should have been told that we were aware of the upheaval and uncertainty in customer relations. Furthermore, the rep should have been empowered to let the customer know that we recognized this as a problem, and that was why we made the move to a rep sales force. Emphasizing the point that reps stay in the territory far longer than any direct salesperson ever did could have diffused the customer’s concerns and assured him that his contact would remain the same for many years to come.
“Luckily, we quickly changed course, kept in close communication with the rep, and agreed upon joint expectations in time to right the ship. Looking back, I’d have to say the rep has done an exceptional job and the results have surpassed anything we did with direct sales.”
Who Owns the Customer?
A group of manufacturers was asked: “You’re making a joint call with your rep — who’s leading the presentation?”
The questioner continued with advice: “Based on years of working with manufacturers just as yourselves, I’d have to advise you to be very careful that the customer is fully aware that the rep is the one who’s handling the sales call — not you. Be sure to let the salesperson take care of all introductions and then continue with most — if not all — of the talking.
“What this approach accomplishes is to let the customer feel comfortable in following up with the salesperson — not the manufacturer. On top of that, the rep should stay in control of the call. If the sales manager does most of the talking, then the customer is probably going to receive a mixed signal and he really won’t know who’s in charge. If the meeting with the customer reaches a point where a close is called for, the manufacturer should take steps to ensure that the rep takes care of the closing. It’s all a matter of letting the customer know who’s really in charge; and, why that person should always be the rep.”
The Beauty of Complementary Lines
How can a manufacturer be sure his reps are able to gain an audience with the right customer? In answer one manufacturer offered the following: “It’s really not all that difficult for us to determine what customers a prospective rep will be able to get in front of. Our corporate practice has always been that we take a careful look at a rep’s line card. If we determine there’s nothing complementary, we don’t even consider a prospective rep. It’s really not that complicated. With all the difficulty that reps and direct salespeople have in getting across the desk from a customer, our rationale is that a rep needs every advantage he can get. And having complementary lines to put in front of a customer is a chief advantage. That not only makes the rep’s job a lot easier, but it also makes the customer’s job easier. If the rep is carrying the right lines, that means the customer has to see fewer salespeople in order to get his job done.”
Getting First-Hand Info From Reps
When three non-competitive manufacturers put their heads together in order to discuss the relative merits of a marketing forecasting tool that supposedly made the job of forecasting more accurate and dependable, one of the manufacturers stressed the point that no matter what new processes came along, there’s still nothing better than sitting down face-to-face with your network of reps to learn what they know. The manufacturers emphasized, “We learned the error of our ways. There’s really no easy way to come up with accurate forecasting. But here’s what we do — we sit down with all of our reps on a quarterly basis to study, revise and adjust forecasts so that each of them is better able to perform at a high level. But I have to emphasize here that it all comes down to communication. When our reps sense our willingness to learn from them, the door remains wide open for the sharing of accurate information.”
A Benefit of Good Lines
When an agency was taken over by new ownership to cover all of New England, a manufacturer was asked what the new agency owners did to get his attention. Here’s how he answered: “The new owners really got my attention as a result of their ability to attract good lines. With that lineup of very competitive lines, the agency has been able to attract and keep very attractive people to get the job done for us, them and our mutual customers.”
He added that when the new ownership took over, while there was already a wealth of lines on the line card, what was really missing was a sense of synergy.
“Here’s what they did to change the competitive landscape. They immediately began paring their line offering. Since the number-one product lines in a variety of categories were already taken by other reps, they made a concerted effort to go after and get the number-two and three lines in those product categories. While doing that, they made sure that each line they took on offered a true synergistic approach to the marketplace.”
Not just satisfied with working on their lines, he explained, “They then made huge strides to upgrade their staff. In large part because of their past contacts in the industry that they were serving, they were able to attract highly qualified people for all of their inside and outside sales positions. The change was immediate and noticeable. Any contacts we had with the agency were totally professional and put us completely at ease. It was obvious from the beginning that we had made the right choice going with that agency. The positive results all appear on the bottom line, and we couldn’t be happier.”
The Difference in Working With Reps
A manufacturer admitted that his eyes got opened in a hurry to the difference in working with reps vs. a direct sales force. “I’ve got to admit that when we worked with a mostly direct sales team, we always had a bit of an us-against-them work environment. Our sales managers were always putting pressure on the guys to perform, and that pressure resulted in negative feelings. Unfortunately, when we made the move to an independent sales force, we initially continued the same philosophy. A contributing factor to that was our organization’s lack of openness and communication. Thankfully one of our reps told me that he felt this approach just wasn’t going to work and we’d be better off parting company. Thanks to his openness and honesty, our eyes were opened, and we’ve taken several steps to change our approach. That rep who was so honest with me is still with us; he’s aware of our effort to change and he appreciates it.”
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