How do you measurably increase a customer’s value, keep and win a larger share of their business, and improve the net profitability of the account? A first step should be to purge the bad habits underlying high credit activity customers and rid your company of unnecessary credit costs in distribution.
The law dictates that you must be able to show financial numbers based on things that are easy to see, count, tax and borrow against. Because financial numbers are ultimately downstream, aggregated symptoms or by-products of your business activity, you won’t find any powerful insights within them or their sliced and diced derivatives.
Why Not Your Measure Your Vital Intangibles in Distribution?
Many distributors resist vital changes out of vague fears that some sales reps might not like change or its compensation implications. Some fear losing their sales reps in distribution to a competitor and all their loyal customers along with them. Of course, there are many factors that will determine what will happen, including how strong your reps are, whether you can afford to lose a few customers based on the projected new sales, and how many of your customers have integrated contracts. Ranking sales reps in distribution by their loyalty and account profitability is a good place to start. Continue reading 58. Ranking Sales Reps in Distribution by Their Potential to Switch to a Competitor
Quid pro quo is a Latin phrase meaning “this for that.” In sales terms, quid quo pro is a negotiation and creative selling skill as well as a sales philosophy.
Are your reps QPQ black belts? If you and your reps need to learn more, here are a few customer cases showing examples of common sales rep responses and some better QPQ responses.