AI Business
Distributor Call-out Days – How to make them more effective | Written by Alex Tatham
Introduction & Defining the problem
Vendors are always keen to grab sales staff attention at a distributor. Marketing departments see this a relatively easy sell to use vendor MDF and subsequently claiming the money – but call-out days frequently do not coincide with the requirements of the sales force themselves or senior management. Whilst they are often a source of fun (and calories!) – the value they provide the distributor and their staff is insufficient to warrant diverting the sales team in many cases.
Solutions
- Ensure there is a financial sales goal agreed with sales management
Marketing departments shy away from this as this puts a level of risk against claiming success. However, it does buy in senior management from both vendor and distributor and has the advantage of ensuring that the effort is worth it! All sales staff involved should have financial targets commensurate with their account base. However, frequently sales cycles for products are longer they have been so these targets can be created over a reasonable time period (a month – no longer than 3 months).
- Don’t make payment of MDF from vendor conditional on hitting targets
This makes it unattractive for the marketing team. However, whilst marketing can claim for the call out activity in full, any incentives paid to sales should be conditional on achieving the overall objective. This is not always practical (eg experiences) but if possible allocation of prizes can be held back until sales management agree proof performance – not just on the day but also for the period.
- Always combine training with the day
At least there will be value for all parties and any incentives should be conditional on attending training. If possible, combine with official sales accreditations that vendor offers or those that resellers have to go through. This gives strong reinforcements to the vendor and the distributor a PR opportunity to differentiate from competitors. It provides value for distributor employees and sales management. It will also last much longer in the memory than a cupcake!
- Experiences are better than physical prizes
Team building activity and time away with vendors can provide reward, camaraderie and a chance for further vendor engagement. Gifts are forgotten quickly and if withheld due to lack of target achievement can provide a disincentive. Money should be in the form of vouchers (for tax).
- Don’t be annoying
Constant sales floor disruption can be very distracting. Most distributors work on open plan areas. Loud games are annoying to those not involved.
- Make it more targeted
Whilst everything should be in proportion – consider more targeted approaches for different target reseller markets and reducing the overall impact. This will be less disruptive, likely to be agreed by sales/company management and frequently get a better result.
- Branding
Branding a sales floor works but providing reminders for sales staff works better. These last longer.
- Consider multi-vendor days
Distributor marketing teams struggle to spend a long tail of small marketing money they have from smaller vendors. Combine them to make it worthwhile – converting training to more mini showcases. Ensure sales staff visit all the stands to be able to claim success/prizes.
- Ensure follow up marketing
Ensure sales staff are included in follow up marketing activity. They have so much to do that vendors should make it easy for sales. This should include social media and reseller performance.
- Hire an agency that know what they’re doing!
Inexperienced agencies frequently do not have the experience of distribution and employ a one-size-fits-all approach. Hire an agency that can use economies of scale and knowledge of the channel and the distributor to execute more effectively. Reseller events should be different (nothing more annoying than vendors driving inappropriate activities to distribution sales staff.