The timing couldn’t have been better for a conversation with a manufacturer who had recently undergone a sea change in its rep selection process philosophy. “I can’t help but think of the wisdom of that old definition of insanity,” began the manufacturer. “We were doing the same thing over and over again when it came to selecting reps and for some stupid reason we were looking for a different result. When I say we were looking for a different result, our past efforts were fairly abysmal. We were making poor rep selections and even when we thought we had aligned ourselves with the right rep, our sales expectations were never realized.”

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He continued, “In all honesty, I’ve got to admit that we never really put the proper amount of time and effort into the process of choosing the reps we go to market with. Being even more candid, many times if someone knocked on our door and said they wanted to work with us, chances are we’d sign them up.”

It was only after a consistent record of poor performance accompanied by a number of unpleasant splits with several reps that the manufacturer arrived at the point where only a truly professional approach to rep selection was going to work. “I’ve got to give credit where credit is due for opening our eyes,” he explains. “One of our reps that had a solid record for us felt secure enough to let us know that we really didn’t have a clue as to what we were doing when it came to agreeing on performance goals with our reps. Following that conversation, we made sure that we were going to do all we could on the front end to not only choose the right reps, but properly communicate with them.”

The manufacturer concluded, “We found that MANA (with its RepFinder function) and any number of consultants were a huge help in locating the right reps. And once we completed our due diligence and made our choice, we were very proactive in jointly agreeing upon expectations and developing parameters to measure the performance of those expectations.”

Fine Tuning The Rep Selection Process

Staying on the subject of rep selection, an article that appeared in Agency Sales magazine about 10 years ago focused on the subject of fine tuning the rep selection process. At the outset, the article stressed the importance of MANA’s Online Directory, and the value of recommendations from customers, other reps and from non-competitive manufacturers.

That wasn’t all, however, as the article listed some several keys to keep in mind during the decision-making process:

• Assign just one person with the responsibility — By responsibility we mean “full” responsibility to select a new agency. That doesn’t mean this person has to work in a vacuum all by himself; others may assist such as field salespeople or the manufacturer’s personnel staff. But, when push comes to shove, the actual responsibility should be assigned to just one person.
• Expand the rep profile — What you are looking for in a rep should be expanded beyond the basic requirements (i.e., experience, contacts and territory) and should include personality characteristics that will be critical in the relationship. You should have an idea of how each potential rep will mesh with the individuals in your organization, as well as with customers.
• Expand the search — You will probably want to advertise in publications such as Agency Sales and in some of the vertical industry magazines that cover your industry. In addition, you’ll want to contact agents listed in directories (e.g., MANA’s Online Directory), and those who are recommended by other agencies and manufacturers.
• Importance of the interview — Conducting a face-to-face interview is critical, and during that interview you should strive to get at the agent’s goals and objectives. Always remember to ask behavior-oriented questions. If you want the territory to grow, make sure the agency you select can perform that function with their present staff, or is willing to grow along with you.
• References — Be sure to check references before you conduct the interview. It’s quite easy to look over a list of major customers and principals and make a bad decision. The idea of checking references is not because of distrust; instead, it shows you strengths that any agency may take for granted or not even mention.
• Do nothing by default — Unfortunately too many companies hire employees or take on agents without really taking the time to choose the best of the pack. If you find yourself in the position of having to settle, you are probably better off not making a choice and begin re-opening the search process.

Planting Informational Seeds For the Future

A manufacturer who was interviewed for an Agency Sales article stressed how important it was for the principal to learn all he could about his reps, including personal information. “First off, it really enhances the relationship when you take an interest in your reps, their staff, business and even their families. The exchange of personal information really firms up the relationship and lets the rep know that we care about them and they can always depend upon us.”

A side benefit of knowing as much as possible about marketing partners is that “Reps will be free to let you know what their future plans are. That’s especially important when a rep may be planning to retire or otherwise leave the business. I’d maintain that principals have an obligation to be proactive when it comes to learning about their reps’ future plans. This isn’t as hard as it may sound and really can be accomplished in a relatively unobtrusive manner. Just let the rep know that you care about what he’s doing. I’ve always made it a habit to ask my reps to share their annual business plan as well as any retirement or other plans that could conceivably affect the agency — and naturally its relationship with the manufacturer. Try it, and you might be surprised to find how forthcoming your reps will be.”

An Endorsement of Customer Service

When asked what attribute or attributes get her attention when considering the merits of independent manufacturers’ reps, the executive vice president of one manufacturing company offered a firm endorsement of the importance of customer service. Here’s what she had to say: “When we find reps that really believe in serving the customer, we love to work with them. Those are the ones who always want do the right thing for both the customer and the manufacturer. They’re hard-working, self-disciplined and motivated. They are sharp people who understand human nature. Furthermore, they are firm believers in continuous improvement. They live in the territory and they know the community from top to bottom.”

Placing Value on Face-To-Face Contact

While the subject of an industry roundtable was the impact of technology on the role of the rep, here’s what one manufacturer had to say about the continued importance of face-to-face sales contact: “In the face of the development of technological tools we take for granted today — everything from e-mail, voice mail, iPhones and the Internet, — the face-to-face contact that our reps provide with our customers is probably more important today than it has ever been. Look back just a couple of years and consider the technological innovations that have changed the way we conduct business. Many of those changes may have made us and our reps much more efficient and productive. But at the same time, they’ve conspired to make us more dependent upon machines. That’s why when a rep shows me that he’s maximizing his time in front of the customer, I will always be impressed and convinced that reps are the way we want to go to market.”

The Remembered Phone Call

“It’s the little things that count.” That’s how one rep recounted his relationship with what he said was the best principal he ever worked with. According to the rep, “Sure, they were great with everything from paying us accurately and on time, to providing us with plenty of professional inside support, but there’s one thing that will always stick in my mind. About 10 years ago, the company’s CEO called me right around closing time. After about five minutes of polite chitchat, I finally asked him why he called. While I have to admit I was expecting some bad news, he simply said, ‘I really just called to let you know what a great job you’ve been doing for us and to thank you for everything’ That’s the only time in my life when I’ve had a principal do that, and it’s made a lasting impression on me.”