Six Analytical Lenses and Resulting Questions

1. Sort your reps into three groups: (A) Best, (B) OK, and (C) wouldn’t hire again.

2. For the C-reps, consider these questions:

• Why allow them to continue to pester and underpenetrate their few, best-potential accounts?
• Why not outplace them and reassign the best accounts to A-reps? Likely, they will quickly win a bigger account share. If not, are they truly A’s?

3. What is the minimum annual gross margin dollar amount an account must yield to support a rep relationship? The short answer is at least $4,000 in gross margin/year, assuming a net-profitable average order size. The longer answer (and more) can be found in my in-depth article, downsizing, upgrading, refocusing, retraining, and re-compensating (DURRR) your sales force.

Questions you should consider asking include:

• How many too-small accounts have reps assigned to them?
• If reps aren’t calling on them or making too few calls per year, then you don’t have a relationship.
• Do you have a small-account division opportunity?

4. Surveys of big buyers, conducted since 1990, consistently conclude that they view only 10 percent of reps as worth seeing. Important questions to consider are:

• What is an A-rep?
• What do they do?

Compile a comprehensive definition of what an A-rep is and does, and get, grow, and/or re-assign only the best to the biggest accounts.

5. Statistically, you probably have a few big accounts that are looking for (or are open to) co-creating a well-executed, win-win, integrated, sole supplier relationship. Digital sellers, such as Amazon, cannot sell, install, and maintain these replenishment systems. 

So, here are your questions:

• How are you identifying these prospects?
• How are you upgrading your team’s system-selling skills and processes?
• Why are reps on commission selling these system solutions?
• If a rep is part of a team solution, what will be their role and compensation? Be customer-centric. Let the customer decide. Protect the best rep income losses if need be.

6. Other questions include:

• Do you have accounts buying commodities on a direct-ship basis that are 100 percent loyal to a rep who could switch the business to a competitor?
• If these accounts are net-profitable and credit worthy, then let things be.

7. And, the vision lens question to live into:

• Can your A-reps reinvent themselves to fit into the cloud commerce channels of 2021?

To get started right away, check out my in-depth article, Downsizing, Upgrading, Re-focusing, Re-training and Re-Compensating (DURRR) Your Sales Force.

Publication date: 10/01/18