What if the retailers stamped “underperforming” in your distribution network were champions who ignore each other? Here we show you our understanding of a problem that many managers and sales managers face.
And let us reveal to you, with concrete examples, how an underperforming reseller can become an authentic champion thanks to loyalty...
The underperforming reseller: a “dormant treasure” for your business
A few stats to start with. What if we told you that 68% of resellers considered to be “underperforming” actually have untapped growth potential, that external factors (increased competition, market changes) are responsible for 42% of the decreases in performance? And that a Low performance reseller Can a failed leader be transformed into a leader with the right support? The key to change has a name: loyalty. At Maslo, we are convinced: it is time to change the paradigm around underperformance.
Reminder: the crucial role of resellers in a B2B strategy
The strategic importance of resellers in a distribution network
First points of contact between the brand and end customers, retailers are strategic players in a distribution network B2B. An authentic transmission belt between manufacturers and end customers, they are the X factor that allows products to be distributed more widely and more quickly on a market. Their key asset: they know their catchment area, with its specific demographics, tastes, habits and customs. And that expertise is priceless. Because they are part of their territory, good resellers are essential partners for any B2B company seeking to optimize its commercial presence in a specific area.
In summary, retailers:
- shape the perception of your brand to end customers;
- are an invaluable source of insights on the market;
- may be your best ambassadors or your worst detractors.
A direct impact on sales and brand awareness
As brand ambassadors, retailers directly influence sales and customer perceptions. One could even go so far as to say that they are the brand's first “communicators”, beyond the campaigns promoted by the brand on the media front or in professional media. On the other hand, a brand with ambitious values through a strong signature (fictional example: “Always there for you”) can see its image greatly deteriorated if its local retailers are regularly... absent. Overall, an underperforming retailer can significantly (and negatively) impact their brand through:
- one Domino effect on the motivation of other retailers;
- Of missed opportunities of innovation and customer feedback;
- an increased risk of loss of market share for the benefit of competition.
Thus, an efficient network of resellers can significantly increase the visibility of a company and contribute to strengthening its reputation. But that influence can be double-edged if resellers aren't aligned with business goals or don't get the support they need to succeed.
The causes of a reseller's underperformance: multiple and varied
Internal factors:
- Lack of a clear and coherent strategy : the retailer does not have a well-defined marketing strategy (or is not aligned with brand goals) and can quickly fall into inefficiency.
- Inefficiency and poor communication : missed deadlines, poor coordination or a lack of transparency in communication can lead to a lack of performance.
- Inadequate skills and resources : a lack of appropriate training or resources can prevent resellers from completing their tasks effectively.
- Lack of motivation : a lack of motivation can be multi-factors (personal or professional), but in all cases it clearly represents a liability for the seller and for the brand.
External factors:
- Changes in the market or consumer behavior : retailers who are unable to adapt to market changes or consumer preferences are retailers who can quickly “drop out”.
- Competition : intense or aggressive competition can put retailers in an unsustainable situation when it comes to retaining their customers. Especially if the brand tossed around by the competition is not in a position to replicate effectively.
- Customer feedback : the absence of customer feedback can prevent retailers from understanding their real needs. In fact, it is impossible to bring non-existent feedback “to the top”, which is likely to allow the offer to adapt.
The need for a clear and accurate diagnosis
Understanding the behaviors and motivations of retailers is obviously crucial in order to analyze and respond to a context of underperformance. If we discard personal causes to focus on the strictly pro perimeter, it is clear that The lack of commitment can often be linked to a flaw in the relationship between the brand and its retailer. And the lack of an attractive loyalty program can contribute to this flaw. As well as a feeling of insufficient recognition for the efforts made. Regular surveys and open dialogue can help identify specific obstacles resellers face. And make sure to overcome them with an adapted response.
The economic impact of a low-performing reseller
For the company:
- Logically, an underperforming reseller will mechanically (and negatively) impact sales and overall turnover.
- Damage to the brand: a reseller who does not represent the brand well can damage its reputation and the reputation of the company.
- Investing resources associated with managing the underperforming reseller can be counterproductive if they do not generate a positive return on investment (ROI).
Need for targeted intervention to improve outcomes
We can identify 3 effective ways to act and transform “dormant treasures” into effective partners:
- Full assessment : identify the root causes of underperformance in order to implement specific strategies.
- Qualitative training and developmentt: invest in the training and skills development of underperforming resellers to fill identified gaps.
- Communication and collaboration : improve communication and collaboration processes to ensure better coordination and better alignment with goals.
Diagnosis, objectives, motivation, measurement: the magic square of all-round loyalty
In this second part, we show you the 4 sides of an exhaustive and efficient loyalty program. An expert approach that reflects Maslo's methodology and expertise in every way. We will come back to this magic square soon to give you some more secrets...
Making the right diagnosis
Analysis of targets and segments, databases, data integration: because identifying the root causes of problems in order to design appropriate solutions requires, first of all, a good diagnosis...
Targets and segments
Analyzing targets and segments makes it possible to identify underperforming resellers and to understand their specific characteristics. This segmentation helps to develop personalized loyalty strategies (thus maximizing the effectiveness of recovery efforts).
Database
A well-structured database is essential in the quest for an effective diagnosis. It centralizes information on resellers, their sales histories, and their interactions with the business (providing an essential overview for in-depth analysis). And if data is the lifeblood, it is the way in which it is integrated that makes the difference.
Data integration
Integrating data from a variety of sources (sales, marketing, customer service) allows for a holistic understanding of reseller performance. A 360° approach that often reveals valuable insights, useful for developing targeted loyalty strategies.
Align clear and engaging goals
Challenges, training, activities: clear and engaging objectives stimulate action and promote long-term commitment. With this in mind, the alignment of goals is vital for Motivate retailers and guide them to better performance.
Challenges
Les Challenges stimulate competition and the commitment of retailers. By setting specific and achievable goals, these challenges encourage retailers to improve their performance, while creating a positive dynamic within the distribution network.
Dealer/customer training
Targeted and immersive training programs strengthen resellers' skills and product understanding.
These courses improve their ability to meet customer needs (thus increasing their trust and sales performance).
Commercial animation
Well-thought-out commercial activities have the effect of boosting reseller networks. Thus, events (such as promotions or incentive operations) can stimulate reseller engagement, or even strengthen the links between the company and its distribution partners.
Spike the motivation of retailers
This is not the discovery of the year, but an obvious fact that should never be lost sight of: motivation is the engine of performance. Motivated retailers are more engaged, more productive, and more loyal to the brand they represent. Here are 3 essential levers to stimulate the motivation of an underperforming retailer...
Notoriety
Activating the stimuli of fame and promotion can be a powerful motivator. But it will also be a valuable ally in boosting registrations for challenges, and in particular for non-subscribers (via the impacting landing page insert for example) both in terms of public recognition of success (through awards or spontaneous positive testimonies) reinforces commitment and inspires other retailers to excel. However, be careful to remain authentic and not to overdo it: too much praise can also be counterproductive or annoying.
Gamification
Gamification turns daily tasks into engaging experiences. By introducing fun elements into sales processes, we stimulate the intrinsic motivation of retailers, promoting continuous improvement in their performance.
Gifts
Of rewards Tangible ones reinforce extrinsic motivation. Well-chosen gifts, whether material or experiential, show the company's appreciation for its retailers and encourage them to keep up their efforts.
Maintaining a sense of measure
Commitment, management, ROI: it is impossible to ignore an analytical and measured approach to guarantee the effectiveness and sustainability of reseller loyalty programs.
Commitment
Measuring reseller engagement makes it possible to assess the effectiveness of loyalty strategies. Indicators such as the frequency of interactions, participation in events and the use of the resources provided are thus good indicators of their level of involvement.
Management
In order to maintain the engagement rate, effective management of the loyalty program involves regular monitoring of performance, real-time adjustments to strategies, and transparent communication with resellers.
KING
Assessing the return on investment (ROI) is essential to justify and optimize loyalty efforts.
Analyzing costs versus gains, in terms of sales and reseller retention, thus allows the program to be continuously refined to maximize its effectiveness.
From theory to practice: Maslo in action!
Renault is turning its underperforming retailers into sales champions
Context and problem: the challenge of large-scale engagement
Just recently, a Renault territorial department called on Maslo to lead an annual commercial challenge on the theme of the 24 Hours of Le Mans. The target: 800 sales representatives, including Renault retailers (including many underperforming retailers) and partner automotive groups. In previous years, participants were informed of their rankings and earnings via a system of newsletters and Excel files. A mode of communication that limited commitment with regard to such a number of salespeople to manage.
In summary, the question we were asked was the following: “How to increase the commitment of salespeople through a challenge that is sufficiently stimulating to boost sales in the region, while monitoring individual performance in order to optimize commercial management? ”. First, we took a deep breath. And then we got to work...
The Maslo answer: a dynamic digital approach
To respond effectively to this problem, we have deployed a tailor-made strategy, through the establishment of a real-time notification system. Objective: maintain the constant commitment of retailers throughout the duration of the challenge, especially those that are usually less reactive. Immediate effect: each salesperson could follow their ranking and performance in real time, with the consequence of the emergence of a clear internal competitive dynamic (and maximum commitment).
In the process, the device made it possible accurate monitoring of sales : the platform allowed Renault to record more than 15,000 declared sales in six months, with unprecedented visibility on the results of each salesperson, thus promoting more strategic decisions.
Results: beyond expectations
In the end, Maslo's notifications and intuitive interface have considerably improved the participation of salespeople, creating almost unanimous support for the challenge. With the notable consequence of a explosion of commitment, which was logically extended by a sales boom. And the cherry on the hood: our customer ended up at the top of the Renault national sales rankings! Let's just say it clearly: this result made us very happy and once again proved the effectiveness of our tailor-made solution.
A solution that acted in this specific case as a powerful growth booster.
A mattress manufacturer awakens the potential of its small retailers
Context: looking for resellers who have lost sight of
Our client (a major French mattress manufacturer) wanted to animate its network of resellers, composed of thousands of points of sale, ranging from large retailers to the smallest distributors (often made up of 1 to 3 sellers). To encourage sales, a commission system in the form of gift vouchers had been put in place. But the communication around this system, mainly focused on sending emails and editing PDF files, hampered its deployment and did not encourage engagement.
In addition, data management had shortcomings: the manufacturer identified its points of sale well, but without the possibility of monitoring retailers individually. A real disadvantage in terms of the effectiveness of the actions taken. Consequence for our client: a commercial effort focused on its largest distributors, due to the lack of ability to effectively follow its small and medium-sized retailers (made underperforming “without their knowledge of their own free will”). In summary, a situation that is impossible for our client to manage due to a lack of internal resources, and thousands of points of sale invisibilized by unsuitable technology.
Maslo answer: create an electroshock
Large distributors (rare) who represent the majority of the commercial effort, medium and small points of sale (numerous) that are often underperforming, unengaging communication (emails, PDFs), incomplete and disabling data management: to stem this highly compromised situation, we opted for an “electroshock” approach: to stem this highly compromised situation, we opted for an approach in “electroshock” mode:
- Digitalization of commercial activities : in order to effectively reach small retailers who are often overlooked.
- Creation of dynamic and gamified challenges : to specifically motivate resellers with poor performance.
- Budget expectations : in order to mitigate the possibility of a tidal wave, we suggest that our client reassess his budget or set a reward ceiling based on the results (recommendation ignored). To be continued...)
Result: an alarm with fanfare... And difficult tomorrows
After the first 60 days of implementing the recommended actions, the first results were already exceptional.
Indeed, seduced by a differentiated offer, with tools such as gamification, digital communication and micro-learning, small and medium-sized retailers were (as if by chance) out of the woods. And commercial performances followed, sometimes dramatically (a retailer going from 1 to 27 mattresses sold in a month, for example), with the added bonus of a renewed interest in the brand from retailers.
The other side of the coin: this meteoric success also revealed weaknesses in inventory management and the rewards budget.
As we anticipated (see “Budgetary Anticipation”), the budget planned for one year was consumed in one quarter, causing tensions with the manufacturer's European management.
The moral of this story...
This spectacular example confirms that While there are indeed small and medium-sized retailers with poor performance, others are also poor because of a lack of consideration or attention. And that involving them through adapted challenges, using digital technology and gamification, can allow them to reveal themselves (or even wake up, as in this case) in a spectacular way.
However, it is essential to adjust deals accurately in order to be able to quickly correct possible budgetary or logistical excesses through:
- better forecasting of performance increases, particularly in terms of inventory management and budget forecasting;
- the possibility of modulating rewards according to results to avoid budget overruns;
- strengthening data management for more accurate monitoring of retailers at an individual level;
- the implementation of more flexible deals, making it possible to adjust strategies during execution.
The transformation of underperforming resellers into key players in your network is not a myth, but an accessible reality. By adopting a holistic approach to loyalty, based on a precise diagnosis, adapted goals, sustained motivation and relevant measures, you can unleash the hidden potential of your partners. Investing in a well-designed loyalty program is not an expense, but a powerful growth driver (especially if you start the program with Maslo).
