ADD-ON SALES service representatives to drive more lines per order , we must dispel the feeling that asking questions is intrusive or somehow conveys that the customer is incompetent . Trust me , this hesitation exists in your newer customer service people . We sell the items our customers forget . When I teach this subject , I usually discuss the consequences of letting a customer go out the door without all the materials necessary to complete the application . In many situations , the customer will be forced to get back in their vehicle to source a critical , yet forgotten , item . We can hope that the customer returns to our place of business , but that is not always the case . Superior service means that we help the customer spend more time applying their skills and less time sourcing product .
The key to supporting this add on service mentality is teaching our customer service people how to sell an application , not just an item . We should consider it a failure if we let one line item go out on a sales order . I grew up in the construction supply business , but this holds true for most wholesale vertical markets . When a customer was buying a tool , it was up to me to ask what they were doing with the tool . As an extension of the tool , what were they going into ? Were they drilling a hole – think drill bits or hole saws . Were they cutting something — think saw blades or cutting fluid . In addition to looking forward into the application , we were trained to look backward as well . This meant suggesting personal protective equipment , such as safety glasses or gloves . It could also mean extension cords or temporary power equipment . By looking at the whole application , a world of complimentary product opportunities is presented .
Focus on complementary relationships
Teaching this concept makes a great foundation for product training classes . Almost any one of our stocked products has a complimentary item . With many thousand items to choose from , the challenge is where to begin . High ticket items can be a good start since they often carry a lower gross margin percentage . To bolster the overall margin percentage , adding some high margin complimentary items can help make the ticket more attractive . Beyond these items , I like to focus on the highest hit items . By definition , these items are the most frequently requested and will appear on the greatest number of sales transactions . Take a look at the top 200 items . Focus on teaching the complimentary relationship of these products .
If you want to create lasting impact , don ’ t be the only one teaching these classes . I have always believed that handing out teaching assignments is one of the best ways to insure retention . Each week , have a different team member teach about an application . Give them a little time to prepare and coach them on how to present the material . If anything , the instructor will become highly skilled in selling the whole application .
Create a database for add-on products
In addition to training focused on complimentary selling , many of our distribution software packages have the ability to suggest add on items during the order generation process . Although many users know about the feature , very few maximize the capability . The function relies on the company setting up the complimentary item database . This means that relationships need to be documented in the software . Similar to the earlier challenge with product training , the sheer enormity of creating this complimentary database often scares off most users . Work smarter , not harder . Don ’ t try to create complimentary item relationships for your entire stocked database . As mentioned earlier , just focus on the high hit items . If you can focus on creating complimentary items for the top 200 or 300 items , you will be off to a great start . As an additional teaching opportunity , invite your customer service people to create the list of complimentary items .
Watch and study the numbers
As suggested earlier in the article , I strongly encourage you to determine the current average lines per order . Create the benchmark and set a goal of improving that by ½ a line . Monitor this number every month and break the metric down by customer service person . I recommend that you use this information to discover coaching opportunities , not pit your team members against each other . If you do decide to reward improvement , consider a team based event . You can kill two birds — creating a performance reward and providing an opportunity for team bonding . If you need help getting started , just reach out . My mission is to make you more profitable . n
JASON BADER is the owner of The Distribution Team , a firm that specializes in helping distributors become more profitable through strategic planning and operating efficiencies . The first 20 years of his career were spent working as a distribution executive . Today , he is a regular speaker at industry events and spends much of his time coaching individual distribution companies . For more information , call ( 503 ) 282-2333 or contact him by e-mail at Jason @ Distributionteam . com . Also visit The Distribution Team ’ s website at www . thedistributionteam . com .
24 essentials | spring 2018