Good communication with your reps ensures you are working toward the same goals.
One of the biggest problems that rears its ugly head between reps and principals is rooted in communication. The rep often expresses this lack of communication by saying “I didn’t know that is what you wanted.” It is not enough for a principal to just communicate a sales goal for the year.
So how do we improve rep-principal communication? It’s not that difficult; it just takes time. Here are some suggestions for what a principal should share with his reps.
Your vision of the future for your company. If the rep knows where your company is going, he can use that information to make plans for his own business. Sharing this will also highlight any disconnects that may need to be discussed.
Your short term business plan. This is the tactical portion of your business plan, including sales growth expectations. What will happen with pricing? Do you expect supply constraints with some products?
Product plans. Tell the rep your product plans and how they might impact his selling efforts. Are there new products in the pipeline? Will you have to change a product due to a regulation?
Marketing plans. Explain your marketing plans, such as trade shows (even the ones in which the rep will not be involved), press releases and advertising plans. All of these are selling tools that impact customer contact.
The following are ideas that a principal should expect a rep to share with him to maintain good communication:
Rep business plan. The rep owner/manager should tell you his business plans and how they could affect your product line.
Rep employee plans. What staff developments are contemplated for the agency, such as new hiring or training? How can you help with training? Remember that the rep agency employees are not your employees. Keep opinions to yourself unless asked.
Territory plans. Are the sales territories for the your reps changing? Is the agency territory changing due to other product lines it represents?
How does your line rank with the other lines represented? The rep owner/manager should evaluate the lines they represent in terms of potential growth, technology, commission rate and dollars earned. This can generate great planning discussions.
All of this communication should lead to action, including periodic goal setting and reviews. Most common goal periods are yearly, with review periods quarterly, but a strong principal and rep team needs to agree on a schedule. Then these goals need to be discussed and documented. So, what kind of goals should be considered?
- Sales expectations.
- Product mix.
- Emphasis on more profitable products.
- Product and employee training.
- Territory sales.
Please note these are suggestions. The idea is to simply set meaningful goals and review them. Periodic reviews are a chance to maintain fluid communication and, if necessary, modify goals and expectations. A year-end review should also lead to the next round of goal setting.
If you have done a good job communicating, then the goal-setting and review processes will hold no surprises. In this instance, surprises are rarely good.
