A network of distributors is not managed like an internal sales organization. Indeed, a brand’s distributors have their own unique characteristics: unlike the company’s sales representatives, they operate independently and sometimes non-exclusively, as they may distribute competing brands.
Managing a distribution network must therefore be based on specific rules. In 2022, distributor engagement can be summarized in 3 simple principles: personalized approach, performance recognition, and training.
Distribution Network: the Need for Personalized Engagement
A company’s distribution network is rarely homogeneous. Most often, distributors exhibit different characteristics within the same indirect network: some exclusively sell your brand’s offerings, while others offer competing products or services at the same point of sale. Similarly, all distributors in a network implement different negotiation and sales methods and very rarely achieve equivalent performance.
Field sales representatives and their managers must therefore adapt to the specificities of the distributors who make up the company’s indirect network.
Firstly, it’s about adapting to the distributors’ profiles: exclusive resellers, for example, should benefit from privileged access to company resources. Secondly, it is essential to understand each distributor’s sales approach to provide them with suitable tools and increase the impact of their sales operations.
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Distributors: Recognizing Sales Performance to Engage your Network
Your company’s distributors are first and foremost sales professionals: it is therefore necessary to recognize their sales performance to maintain their motivation and engagement.
However, performance recognition can take various forms. The most common, and sometimes most effective, form of recognition lies in remuneration. Whether you apply a commission or bonus system, a financial bonus can effectively reward the efforts of your top-performing distributors.
On another note, the principle of gamification can also help you manage a distribution network. You will then need to devise a challenge that can bring together all your resellers, while encouraging them to excel. However, this type of sales engagement requires significant preparatory work beforehand, especially if your distribution network is very extensive.