Tuesday, February 19, 2008

Transportation Agent - Sales Growth

Asset based transportation sales forces are grossly inefficient. Totaling up salaries, health benefits, cars, training, and expenses then divided into the calls per day, $500 cost per call is the norm. Long call cycles to sale of 9-12 months are considered the norm in freight sales, putting the cost at +$5,000 for a transactional shipment rarely paying over $500. The slim margins of asset based transportation providers simply can not tolerate this practice. The independent transportation sales agent brings experience, superior skills and results to an otherwise ineffective/inefficient transportation sales marketplace.

The new trend is clear with transportation providers using cost effective independent sales agents that focus singularly on closing new business deals. Agents leverage their experience by avoiding asset based behaviors that kill sales such as ongoing reports, meetings for management, training without results, joint calls to satisfy organizational dotted lines, serving internal needs vs. client needs, sales contests, et al etc. Transportation agents understand the need to focus on market referral opportunities, vertical markets and shortened sales cycles as compensation is based on performance results. Sales agents know how to present offerings as measurably important to client needs, explaining within customer processes how a deal will work for them, with constant awareness of building justification to close the sale timely. Sales agents understand they are the catalyst to make a difference in creating new business. They must be convincing throughout the sales process to close deals...with the right targeted opportunity, the right decision makers, at the right time.

Professional sales agents focus their resources on activities that lead to closing more deals faster. Representing a portfolio of solutions of measurable value is a critical difference with sales agents in value creation for senior level contacts and their supply chain needs. Asset reps with limited value are relegated lower level influencers who are prone to decisions of convenience, and are simply unable to make business deals. Performance based compensation drives the right behaviors and therefore the right results with independent transportation agents.

The critical success factors that sales agents make happen every day are:

• Professionalism. No casual days, no branded shirts on calls, no cheapening of the product-services with goofy advertising specialties, no questionable entertainments. All business dress, always prepared to call objective, appointment efficiency, constantly dollarizing values for the client throughout process of making a deal.
• Prequalified targets. No cold calls, no spray and pray. Every target is researched through various industry information sources for prospects with multiple shipments and the appropriate decision maker contacts for higher call productivity and close ratios.
• Development of senior level contacts who understand measurable bottom line results. Referrals are leveraged for additional growth. Vertical marketing is implemented with every deal. The deal must be engineered to appeal to all influencers impacted by their supply chain of in and out goods.
• Engaging clients. Senior level decision makers have no time for the unprepared or limited value door knockers of asset transportation providers...these are pushed to low level contacts who lack the authority or influence for change but who asset reps love to hang with as non threatening and makes an appearance of doing their job. Access to senior level leadership requires an experienced agent leveraging excellent presentation skills, an understanding of matching right product-services to prequalified needs, leveraging client processes to make the offering a big deal, explaining financial implications, operational impact of savings/growth opportunities with a bold call to action that appeals to decisiveness, and deliverable/measurable values.
• Commitment. Every impression or action of a sales agent reflects their commitment to a deal, successful implementation and service support throughout the process/duration of the contract. Deals structured with visible win-win outcomes, accountability for both parties, ongoing reporting of performance value are required. Agents do not tolerate delay or indecision with influencers as these cause deals to unravel. Agents know how to keep senior players informed and part of the entire process. Lower level influencers often feel need to unravel deals to justify their positions and or maintain asset rep's pizza deliveries, specialty hand outs and unfortunately, sometimes much more.
• Sales Focus. The sea of books on selling, CDs/tapes, seminars or online training are long on fluff, humor and procedurals but very short on performance results or personal accountability. Freight companies often feel training is relatively inexpensive way to educate and/or motivate...essentially to justify sales management existence without facing the reality of addressing true sales performance. Sales agents already have the skills and knowledge it takes to be successful as new deals drive their compensation. While salaried reps are languishing in meetings, training, making reports or calling on unqualified contacts, sales agents are out closing new business.

Transportation providers that believe their front line salaried sales personnel are effective are mistaken. Buyers of transportation services have no time to sift through all the various provider presentations of products, services, or technologies. Senior leaders are now more receptive to the integrity and value of an independent sales agent who can consistently look out for the collective best interests of supply chain efficiencies. Transportation sales agency is the future for asset providers who want to grow cost effectively so they can focus on servicing client operational needs.
Asset based transportation sales forces are grossly inefficient. Totaling up salaries, health benefits, cars, training, and expenses then divided into the calls per day, $500 cost per call is the norm. Long call cycles to sale of 9-12 months are considered the norm in freight sales, putting the cost at +$5,000 for a transactional shipment rarely paying over $500. The slim margins of asset based transportation providers simply can not tolerate this practice. The independent transportation sales agent brings experience, superior skills and results to an otherwise ineffective/inefficient transportation sales marketplace.

The new trend is clear with transportation providers using cost effective independent sales agents that focus singularly on closing new business deals. Agents leverage their experience by avoiding asset based behaviors that kill sales such as ongoing reports, meetings for management, training without results, joint calls to satisfy organizational dotted lines, serving internal needs vs. client needs, sales contests, et al etc. Transportation agents understand the need to focus on market referral opportunities, vertical markets and shortened sales cycles as compensation is based on performance results. Sales agents know how to present offerings as measurably important to client needs, explaining within customer processes how a deal will work for them, with constant awareness of building justification to close the sale timely. Sales agents understand they are the catalyst to make a difference in creating new business. They must be convincing throughout the sales process to close deals...with the right targeted opportunity, the right decision makers, at the right time.

Professional sales agents focus their resources on activities that lead to closing more deals faster. Representing a portfolio of solutions of measurable value is a critical difference with sales agents in value creation for senior level contacts and their supply chain needs. Asset reps with limited value are relegated lower level influencers who are prone to decisions of convenience, and are simply unable to make business deals. Performance based compensation drives the right behaviors and therefore the right results with independent transportation agents.

The critical success factors that sales agents make happen every day are:

• Professionalism. No casual days, no branded shirts on calls, no cheapening of the product-services with goofy advertising specialties, no questionable entertainments. All business dress, always prepared to call objective, appointment efficiency, constantly dollarizing values for the client throughout process of making a deal.
• Prequalified targets. No cold calls, no spray and pray. Every target is researched through various industry information sources for prospects with multiple shipments and the appropriate decision maker contacts for higher call productivity and close ratios.
• Development of senior level contacts who understand measurable bottom line results. Referrals are leveraged for additional growth. Vertical marketing is implemented with every deal. The deal must be engineered to appeal to all influencers impacted by their supply chain of in and out goods.
• Engaging clients. Senior level decision makers have no time for the unprepared or limited value door knockers of asset transportation providers...these are pushed to low level contacts who lack the authority or influence for change but who asset reps love to hang with as non threatening and makes an appearance of doing their job. Access to senior level leadership requires an experienced agent leveraging excellent presentation skills, an understanding of matching right product-services to prequalified needs, leveraging client processes to make the offering a big deal, explaining financial implications, operational impact of savings/growth opportunities with a bold call to action that appeals to decisiveness, and deliverable/measurable values.
• Commitment. Every impression or action of a sales agent reflects their commitment to a deal, successful implementation and service support throughout the process/duration of the contract. Deals structured with visible win-win outcomes, accountability for both parties, ongoing reporting of performance value are required. Agents do not tolerate delay or indecision with influencers as these cause deals to unravel. Agents know how to keep senior players informed and part of the entire process. Lower level influencers often feel need to unravel deals to justify their positions and or maintain asset rep's pizza deliveries, specialty hand outs and unfortunately, sometimes much more.
• Sales Focus. The sea of books on selling, CDs/tapes, seminars or online training are long on fluff, humor and procedurals but very short on performance results or personal accountability. Freight companies often feel training is relatively inexpensive way to educate and/or motivate...essentially to justify sales management existence without facing the reality of addressing true sales performance. Sales agents already have the skills and knowledge it takes to be successful as new deals drive their compensation. While salaried reps are languishing in meetings, training, making reports or calling on unqualified contacts, sales agents are out closing new business.

Transportation providers that believe their front line salaried sales personnel are effective are mistaken. Buyers of transportation services have no time to sift through all the various provider presentations of products, services, or technologies. Senior leaders are now more receptive to the integrity and value of an independent sales agent who can consistently look out for the collective best interests of supply chain efficiencies. Transportation sales agency is the future for asset providers who want to grow cost effectively so they can focus on servicing client operational needs.