by Art Waskey | Jun 19, 2023 | Art of Sales Weekly, Featured
Technology has changed the dynamics of pricing strategy. With digitalization, information is now readily available to measure customer performance. Additionally, analyzing price increases is now a data-driven process.
Calculating Outcomes
Consider these elements when calculating pricing outcomes.
Customer segmentation – Make sure your customer segmentation is based on data, not personal emotions. Considerations for segmentation should focus on revenue and gross margin. Pricing shouldn’t be influenced by the emotions of an outside sales rep (OSR), inside sales rep (ISR), store manager, or customer service personnel. Moreover, the top revenue generator for one OSR’s territory may not be one of the company’s top 20 customers. Consider grouping your customers into four categories — A through D — with A being your top performer with the best pricing. Check to make sure your customers are in the correct pricing category based on revenue and gross margin.
Cost of service — Sales revenue and gross profit percentage are not the only considerations. You also need to look at the cost of service. Review how promptly the customer pays their bill. Is the customer that is past due 60 days priced accordingly? How many returns are you processing for the customer each year? Does a specific customer require ongoing training, technical service, or an inordinate amount of other types of interaction? However, these are all costs to your bottom line. They should be quantified and considered in price adjustments.
Customer type and geographic location — Customer type and location affects pricing. Examine how customers use your products and how that affects what you can charge. Use these and other types of considerations in your pricing structure. For example, the greater the distance from a major market, the greater the distribution cost. Pricing should correspond to this. Customers with multiple locations in different markets also need special pricing considerations. Use digital analytics in your pricing evaluation process.
Let Data Drive Pricing Decisions
Lastly, information on customer segmentation, cost of service, and customer type and location all reside in your software systems. Use that data to drive your pricing decisions and create a sales strategy that is responsive to today’s market dynamics.
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by Art Waskey | Jun 13, 2023 | Art of Sales Weekly, Featured
Trusted Advisors
We are all aware of how challenging the rapid pace of sales is in today’s digitized market. Also, changing customer expectations require adopting new approaches to sales that merge traditional relationship selling techniques with digital eCommerce solutions. Sales strategies like Enterprise Selling encourage the salesperson to become an expert in each customer’s needs.
By leveraging digital product information accessibility, sales representatives gain the ability to identify issues that may go unnoticed by the clients themselves. This enables them to become trusted advisors by deepening their product knowledge and comprehending customer needs. Consequently, they deliver a heightened level of expertise, facilitating more efficient customer journeys toward desired outcomes.
Time is Currency
Customer expectations have undergone a significant change, with a strong emphasis on an improved customer experience. This shift is fueled by the need for instant transactions online. Time has now become a valuable currency. Additionally, to make the most of your time and successfully close deals, leverage technology to bridge the knowledge gap. Sales representatives must excel in digital selection, organization, and professional presentation. Explore automation options to streamline the process and save time. By doing so, you elevate your expertise and deliver a higher level of service.
The Right Technology Partners
When selecting your technology platforms, establish clear goals and ensure that your consultants can meet those expectations. Utilize similar distributorships as sounding boards to gather recommendations for proven technology partners. Additionally, examine the outcomes of early technology adopters and learn from their experiences. Implement necessary changes and leverage the right technology partners to facilitate user acceptance of newly introduced processes that your associates may initially hesitate to adopt.
Reach For The top
In conclusion, addressing new customer demands with the right technology allows you to provide a high level of expertise. By reaching for the top you can get customers to endpoints more efficiently.
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by Art Waskey | May 30, 2023 | Art of Sales Weekly, Featured
Digitization
Digitization is the name of the game in today’s fast-paced world of sales. Technology options can seem overwhelming but to be competitive you have to continually up your digital IQ.
Four Recommendations
Here are four recommendations to help you achieve the highest level of tech expertise.
- Don’t be afraid to start. New technology can be overwhelming but you need to dive in. When the company I was with built its first high-pressure cylinder control system (a system for verifying cylinders at customer locations), it failed miserably. Our president complained about the time and energy wasted but I saw it as a valuable learning experience. Thirty years later that company has a cylinder control system faster than most of its competitors and developed for less money.
- Focus on the most needed areas. Your technology IQ focus should be on those areas that promise the greatest return on your investment. Some companies start on the backend — inventory, and accounting — with an ERP system. Others start with their CRM. The distributor I was with started with a CRM 30 years ago because it was available at an affordable cost. The company moved on from the original provider after a few years to a CRM that had a better understanding of its industry.
- Establish your KPIs. You need to identify what kind and level of information drives your business and establish your KPIs accordingly. For some parts of the business, you may need to outsource your data analytics. This can be done without spending large sums. In other cases, you will want the analytics generated in-house. Hire IT techs as needed and check progress against your KPIs.
- Prioritize. In a world full of technology options you need to be able to prioritize. Look for what is most important for your company to digitize. Spend time and set aside a budget for some experimentation so you can find the systems that will transform your business most effectively.
Stay Competitive
Remaining competitive in today’s market requires a high technology IQ. Don’t be afraid to start, focus on technology that promises the greatest ROI, and establish KPIs that address your digital goals.
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by Art Waskey | May 22, 2023 | Art of Sales Weekly, Featured
The best measure of performance is a satisfied customer. Today’s digital business practices enable swifter transactions. However, they can be a stumbling block when it comes to addressing customer concerns and satisfaction. For example, I recently tried to resolve an issue with my internet and TV provider and was connected to an automated digital agent. Following prompts, I typed in my problem only to receive a list of online tutorial solutions. I did not make any actual human contact during the session, and I ended up feeling frustrated as my problem remained unsolved. This begs the question, how can we better serve our customers in today’s business environment?
The Personal Touch
We all know that customer frustration is bad for business. The good news is that, as independent distributors, we have the ability to do business in a better way. While alternative channels have caused us to move more interactions online to remain competitive, we are still in touch with customers on a much more personal level than the big guys. This allows us to create better digital pathways targeted to our customers’ needs. Using our resources to optimize performance, we can answer questions better than an automated agent. We can provide the personal touch.
Increasing Shareholder Value
Protecting the integrity of your shareholders, from base-line employees to customers, is a great way to optimize performance. Everyone, from your warehouse worker to the chief executive, is in a position to help improve the efficiency of the company. This puts you in a position of great flexibility when it comes to problem-solving. With employees focused on operational excellence, you will realize increased revenue and bottom-line growth.
Service
Lastly, In today’s fast-paced business environment, the surest path to a satisfied customer base is made by providing the best service. Make excellence in serving your company’s priority.
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by Art Waskey | May 15, 2023 | Art of Sales Weekly, Featured
Happy employees create happy customers. Don’t let employee complaints reach your customers’ ears. Optimize employee performance by providing your team with the best resources.
The Right Technology
One of your most important performance-optimizing resources is your CRM. Meanwhile, make sure it is up-to-date. With the right digital tools your workforce can harvest data that allows them to do their job better. Be sure your team has useable analytics tailored to your customers’ needs. Remember, more data isn’t necessarily the right data.
Look at your tooling. How many clicks does it take to get the user to the right information? Make sure the accounts receivable department is getting to their sales counterparts in a timely manner. Also, you don’t want collection issues to mount up. The right ERP system removes the silos that so often slow down distribution.
Keep in mind that the upcoming generation of customers is used to quick order fulfillment. Today’s consumer expects Amazon-like results. Furthermore, people expect their B2B services to be as accessible as the B2C services they are accustomed to. Keep your eCommerce solutions current to optimize performance.
The Value Stream
Focus on your value stream for a happier customer base. Everyone in your company can influence your success in a positive way if they are equipped to do so. Additionally, ask your team members, “What is the most difficult part of your day?” Find out what would make their job easier then give them the tools they need. Happy employees can show you ways to produce optimized solutions.
Peak Performance
Aligning your technology with the needs of your shareholders is absolutely crucial for achieving peak performance. Offer something that the large verticals can’t match — a collaborative customer experience. Make sure your employees have the resources they need to provide excellent customer satisfaction. Happy employees make happy customers and a secure revenue base.
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