Thursday, November 29, 2012

Target Customer Alignment

Wholesaler-distributors' confusion over organization and roles is often the result of trying to meet each and every perceived customer requirement a little better than the competitors. 

Market gaps are "big picture" differences between what or how your customers ideally want to buy and what or how you are currently selling to them.  Closing these market gaps is the basis for aligning your organization.   Or course, some gaps may require new capabilities that are outside the realm of your sales force organization.   

We have found that it can be very powerful to use the Jack Palance line from the movie City Slickers  and ask yourself, "What is the one thing?"  Wholesaler-distributors' confusion over organization and roles is often the result of trying to meet each and every perceived customer requirement a little better than the competitors.  They end up deciding that a Field Sales Rep (FSR) must be an expert in all products, visit each customer in person weekly, personally follow up on every service questions, and then match Costco's in store price!  This confusion is a classic result of applying a sales mentality ("more, better, faster, cheaper") rather than a strategist mentality ("what are the fundamental business drivers?").  

ACTION POINT: By limiting your focus to a few key market gaps you can usually define one or tow overarching design criteria for the sales force organizational structure.

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