4 minute read
Where should you be selling after lockdown?
WHERE SHOULD I BE SELLING AFTER LOCKDOWN?
AS WE EMERGE FROM LOCKDOWN, DRINKS BRAND OWNERS MUST HAVE AN EFFECTIVE SALES STRATEGY IN PLACE THAT WILL DELIVER FOR BOTH THEIR BUSINESS AND FOR THEIR CUSTOMERS, EXPLAINS JOE BROUDER, THE FOUNDER AND MANAGING DIRECTOR OF 2EM
COMMENT
The Government has announced its roadmap out of lockdown. We’re seeing a phased reopening of the economy with hospitality businesses reopening from April.
Assuming no further lockdowns or challenges from new variants of the virus, this summer is set to be one of the busiest on record, with pent-up demand for human contact never before seen. For many in the hospitality supply chain, whether manufacturer, distributor or service provider, the revenue from on trade customers provides a huge chunk of their profitability.
If the previous reopenings are anything to go by, it will be hectic for both on trade operators and for those in the supply chain. Minimising time-wasting and having more meaningful sales conversations with the right customers has therefore never been as important.
Drinks brand owners must have an effective sales strategy in place that will deliver for both their business, and for their customers. Luckily, there are a few steps you can take to make sure that you and your sales team are committing your time to the right customers.
CATEGORISE SALES DATA
Digging through data has never been the most riveting of subjects, but it is by getting into the detail that you will understand where your sales are coming from, and more importantly where they are not. Begin by segmenting your list of customers into subcategories that work for your business. There must be sufficient detail for you to be able to carry out meaningful analysis, but not so in depth that you only have a handful of customers in each subcategory. Some suggested subcategories are:
u Independent Free Trade u Multiple Retail Groups u Regional wholesale distributors u National wholesale distributors u National retail groups u Managed national u Regional brewers u Leased & Tenanted u HoReCa u Prestige
THE PERFECT CUSTOMER
You might already have a perfect customer profile set up. In this exercise we are going to further define what this perfect customer looks like from a sales perspective.
At 2EM we recommend implementing the following grading system:
#1 Permanent stockists / high volume / brand advocate u Clarify exactly what high volume looks like in your business #2. Permanent stockist as part of the range / reasonable volume u Clarify what reasonable volume looks like in your business #3. Rotational or guest stockist u The customer has bought in last 12 months #4. None stockist
u Prospective account who can (and will) buy in the next 12 months
Note – Whilst we are just talking about on trade customers here, this system will transfer across your other sales channels.
The next step is to establish a process for recording this data within your Customer Relationship Manager (CRM) system. This will likely take the form of an automated update or a manual update every time one of your sales team visits or calls on the customer.
Then, working through your customer list, categorise them into one of the four grades above. Compare each sales territory and complete a smoothing exercise to ensure each region is of a similar size, as well as level of responsibility and opportunity.
POST LOCKDOWN CUSTOMER
Now that you have categorised your customers by channel and by value, you have a baseline to work from.
Take a look at the distribution of accounts across each territory. Using a mapping tool such as BatchGeo can help to visualise this data.
Some things to think about: u Where are you over-indexing? How might this affect the salesperson covering this area? u Where are you under-indexing? This might be fertile territory for new business. u What routes to market are you showing as strongest in? Are these the most profitable RTMs for your brand? u Where are your prestige and top-tier accounts?
It is imperative you understand where your existing sales come from, in order to see where the opportunity may lie after lockdown. Although many on trade customers are not in ‘buying mode’ right now, there are many that are.
Summer 2020 saw a boom in trade for those sites who had either (a) outdoor areas, (b) a quality food offer, (c) nearby public green space, or (d) a premium offer for an affluent demographic working from home.
Overlaying some of these criteria onto the above customer data will allow you to further target the right sites – those who are most likely to be booming this summer – without wasting time on the wrong ones.
Think about what your brand could offer to these customers and how you might support them.
For example, even if restrictions are lifted consumers are likely to still be wary of indoor drinking. How could you assist your customer in providing something extra for those consumers who wish to take away drinks and sit in the nearby park?
The future is extremely uncertain at the moment, with a lot of noise and worry swirling around. But as ever over the last year, the most important thing you can do is keep a cool head, think about where the opportunities will lie, and plan, plan, plan.
Good luck, and see you on the other side.
Joe Brouder is the founder and Managing Director of 2EM. 2EM works with drinks brands to accelerate their growth through strategy, recruitment and training. Joe’s first book, How to Grow Your Drinks Business, will be published in 2021.
