Wednesday, August 13, 2008

How to Increase productivity

Target for salesman is not only sales value, sometimes the managers also ask for sales productivity as target for sales people. The reason is clear since as more outlet become productivity the more sales volume will come and it is best to have many outlets with less sales volume rather than few outlets with big sales volume.

For sales people increasing the productivity could come in two ways, first is by managing the existing outlet to become more productive and the other is finding new potential outlet.

These are approaches that Sales people could do to increase the sales productivity:

1. Increase sales productivity through existing outlets
To increase sales productivity by using his option are require these steps as follow :

  • Create a list of non productive outlet in certain period of time, lets say the last 6 Months
  • Identify each outlet problem and issue, many issue will come up from changing Buying frequency, switched to our competitor, low selling out until the outlet are already closed
  • Clean up your outlet data base by deleting outlet that already closed
  • Focus on outlet which have low selling out or switched out to competitor issue.
  • Solve the problem on each focused outlet, like for low selling out issue can be solve by delivering lower quantity of product or suggest advice on how they should sell the product by using our experience from other outlets or market.
  • Outlet that switched out to competitor have several reason, it can be price or have problem with the sales person and the product it self. It can be solved b better account management from the sales person by proposing better sales service, in store activity or consumer activity for the costumer store

2. Increase sales productivity by acquiring new outlets

To be successfully acquiring new outlets require these steps as follow:

  • Outlets have to meet the product nature. Selling ready to drink product in school,restaurant or street outlet is good example while you can’t sell baby milk in these type of outlets
  • Understand the first impression process, there are four process, first outlet know the product, then they feel confidence with the product, third outlet respect the product then the last process is buy the product
  • Emphasize in benefit and advantage, meet the outlets needs and wants to the product as the solution
  • Describe the product value, like well known brand, after sales service, frequent promo activation, on time delivery service until bad goods management.


None of the above alternatives is best, each alternative have own strength and weakness, While existing outlet is less risk because we know the outlet well, it will cost you more through in store activity or selling incentive. Obtaining new outlet cost is rather low since the key point is account management on how we meet the outlet needs and wants to our product but the risk is higher

1 comments:

Javis Lounsbury said...

Great post! This is very useful for those who want to be a successful salesman. By maximizing what you have and, at the same time, expanding your capabilities, productivity will definitely increase. Aspiring salesmen must learn this by heart.