Process – A newer addition to the traditional 4Ps

So you have a great product and you have defined and validated your target audience(consumer segment). How do you deliver your brand/SKU to the customer(brick & mortar/online) and make it available for your target consumers to buy? The next P, Process, covers this aspect.

The sales process followed in any organisation influences execution in store and how the brand/product is perceived by the consumer. As for your customers, it is crucial to make sure you’re easy to do business with, meaning you’re efficient, helpful and timely. 

The sales process followed directly impacts execution, including delivery of your brand/SKU to customers, in-store availability, placement on shelf, how communication with the customer is managed, new product launches and so on. An effective sales process will include all aspects of the 7Ps and describes the series of actions or fundamental elements that are involved in delivering the SKU to the customer, for the consumer to buy.

By making sure your team has a good sales process in place, you will also save time and money due to greater efficiency, and your standard of service to customers will remain consistent and high, which is excellent for developing a great brand reputation and to build a great relationship with the customer.

The more seamless and personalised your sales processes are, the happier your customers will be. Customers typically feel frustrated or dissatisfied by late shipping, additional costs, poor communication or a lack of support and when brands/SKUs run out of stock in store.

Every part of the customers’/consumers’ journey has to be seamless and efficient. 

Regularly assessing, adjusting and adapting your sales processes will help to structure your sales efforts so that your team can function at optimal efficiency. A great way to do this is to borrow from the tech industry. Map your customer and consumer journey on a regular basis. How does your brand get to the final user? What are the various steps in the journey to the final user/consumer and what process do you have in place that facilitates this? Prioritise elements that overlap with the customer/consumer experience.

The more specific and seamless your sales processes are, the more smoothly your sales teams can carry them out. If your sales team isn’t focused on navigating procedures, they have more time to build great customer relationships, enabling the business to grow.

Some elements to consider are as below: 

  • Is your customer carrying the right levels of stock? If too little, how much more needs to be ordered and why? If too much, how can you help the customer reduce this before stock needs to be destroyed/written off?
  • Is your logistics solution cost-efficient and timely? What does your scheduling and delivery logistics look like?
  • Will your customers run out of product at critical times?
  • If you are an e-commerce business, do items ship reliably from your website?
  • How often do you meet with the customer’s team and how do you communicate price changes, POS artwork changes and packaging changes to customers?
  • What technology do you use? How can your customer access it? Do they need access?

If you get more than one complaint about any element of the sales process, understand what’s going wrong and develop a solution. 

When you get your sales process right, your sales team will

  • be more productive, manage more customers and also have better relationships with customers as a result.
  • maintain or gain market share for your brand. Fewer customers delist your brand/SKUs as your team responds immediately to consumer needs/feedback.When people love your products, they experiment less and so remain loyal to your brand.
  • receive feedback from customers and consumers, and ensure it reaches relevant decision makers within the organisation. Feedback helps you change what needs to be changed, and helps your business grow.
  • sell and deliver the right volumes of your brands/SKUs so your customers are neither overstocked nor understocked.

This includes any technology sales teams use in their normal course of work. This ranges from sales intelligence solutions teams use to calculate sales volumes through to merchandising apps that monitor shelves.

If your sales process is efficient and any sales technology you use is in keeping with the process and with market conditions, your brand thrives and so does your business.

If you’d like to learn more about how to set up an efficient sales process or how to maximise sales team productivity using the right sales technology and tools, email me on veena@salesbeat.co

Demand planning vs sales intelligence

This blog is about why sales intelligence and demand planning outputs are different from each other. They add value to two very different stakeholder groups.

If you ever do a search/have done a search on Google for sales intelligence for FMCG companies, you’ll find several academic articles on how AI can benefit sales teams in FMCG companies, along with links to several companies that provide AI driven sales intelligence to any other sector than FMCG.

And if you search for demand planning solutions there are an abundance of them, those that use AI and include seasonality, holidays etc to provide forecasts. Ironically demand planning is not used by sales teams. In fact, one of its input factors is a sales forecast from the sales team!

So who uses Demand planning software?

The supply or production planning teams typically use demand planning software to ensure there is enough stock of the final product produced, so that they can fulfil orders and meet demand. Typically, the annual sales plan drawn up by the sales team is one of the inputs into the demand planning software/application. According to an article by Gartner (Aug 2019),  demand planning is typically used by the Sales & Operations Planning team (S & OP team) and focuses on a tactical horizon from 3-24 months.

Demand planning and how it feeds into the S & OP process

The primary goal of demand planning is to ensure availability of stock on the supply side. The process results in a plan that feeds into the Sales & Operations Planning meeting that agrees on the stock that needs to be maintained at a company warehouse level to be able to meet demand for the period being planned.

Now here is why demand planning is not the same as sales intelligence. Have you ever planned your grocery list 3 months in advance? Also, have you ever known a supply team to influence a buyer’s decisions?

Sales intelligence in FMCG

Even a few years ago, sales intelligence in FMCG would have been complex and time taking. Insights teams would look at similar information as marketers do when considering innovations or ad campaigns. However, due to the sheer volume of information, and the time it takes to process the information and gain insights, this happens only for new product development or for market entry initiatives.

Due to recent advances in AI, it is now possible to build applications that process the same quantum of information on a daily basis to provide valuable insights to sales teams, helping them take advantage of opportunities that were never identified by the strategy team or by the demand planning application.

Sales intelligence cycle

Sales intelligence apps are used by sales teams who actively sell into customers.

By empowering sales teams with information on what consumers want and are likely to buy in the next 4-6 weeks or even days, sales teams can ensure 100% in-store availability of the brands they sell. Providing timely sales intelligence helps sales teams take advantage of opportunistic upsides that are in line with long term strategy, leading to increased revenues of up to 40%.

To learn more about FMCG sales intelligence software/platforms, email me on veena@salesbeat.co

Reducing stock outs of personal care & hygiene brands in store

Last week, we focussed on how to reduce stock outs of food & beverage brands in stores. This week we are focussing on personal care & home care brands.

You may think that personal care & home care brands are immune to these fluctuations as consumer buying behaviour is a result of frequency of use and this remains more or less consistent. However as we saw in 2020, consistency & predictability are of the past. Climate change and the pandemic have forced us to behave in ways we have never imagined. These changes in behaviours and their unpredictability have caused brands to go out of stock in stores as companies and sales people rely on out dated information to inform them of consumer demand.

So how do you go about understanding optimal orders for personal care & hygiene brands? For a start, lets look at some of the key drivers of sales for the different categories:

Skin care brands

If you are a salesperson working for a company selling skin care brands, frequency of use is key to understanding demand. Frequency of use is driven by habit, nature of work, if they are office based, home based or site based etc. Now look at how covid/lockdowns have impacted this. How are people interacting with these brands/products at home and how are they expected to interact with offices/restaurants opening up? How have closures of spas impacted sales of skin care products and brands?

Hair care and colour

This shelf is deceptive. While the shelves look relatively full, several colours have gone out of stock. And when it comes to hair colour, consumers are usually reluctant to switch brands, hair types or colour!

Here is one time when historical sales is a good starting point. If you can get hold of store level depletions data across all colours and brands in store, you can get an understanding of the rough split of past demand for various colours. Now look at the drivers – how your target consumer uses your brand and the associated occasions – at home, work, social etc, and then apply how these occasions have changed during current times and its impact on sales.

Personal hygiene

Personal hygiene brands have been impacted by covid & by lockdowns. We separate the two as both these elements, while linked, drive different behaviours in consumers. While the pandemic itself has driven an increased consciousness of personal hygiene and keeping immediate surroundings clean/disinfected, lockdowns have led to a more relaxed stance toward personal hygiene at home.

While previously, the average consumer would have taken a shower at work after a run, the very same consumer now doesn’t think twice about changing into work clothes to attend a meeting immediately after the run and shower only at the end of his/her work day. Think of how else covid and lockdowns have impacted consumer behaviour directly associated with your brand.

Vitamins and supplements

Here’s another category that has been directly impacted by the pandemic. Consumers are more concerned about their immunity now and this has in turn benefitted the vitamins and supplements category. To understand the increase in demand for specific vitamins/supplements within this space, consider what the consumer uses the vitamin/supplement for, consumption occasion, consumer age etc

Diapers/Nappies

Here’s another category like hair colour where consumers are unlikely to switch brands and they definitely will not switch sizes! But you can get an understanding of demand by looking at number of births for a start and then at whether day care/play-schools are open or closed.

Now that you know the key drivers and you have your consumer persona from the marketing team, put them together to get an understanding of consumer demand and depletions in store. And before you ask me, these are real photographs taken just last weekend.

If you’d like to discuss any of the drivers of categories in more detail, feel free to email me on veena@salesbeat.co