What is customer management in the end?

To deepen market management and control, many large and medium-sized consumer goods companies have offices throughout the country. Among them, the head of the office (director, regional manager, sales supervisor, business representative, etc., collectively referred to as the factory representative) manages the market by managing the dealers in the jurisdiction, which is its more important responsibility. However, in marketing practice, many offices (especially many state-owned enterprises and private offices) are ineffective, only serve as a customer, and cannot control the market at all, and cannot effectively manage customers. The root cause is that some do not know what to do, and some do not know how to manage it. This article combines the foreign management of the customer management system and the actual situation of China, to make the following superficial discussion, I hope to be able to throw a brick.

First, customer management, what to control

"Delivery, payment" is the basic responsibility of sales personnel. So far, there are still many sales people in China who have only sold the concept of sales. They still don't know what customer management is. The customer management in the modern marketing concept, according to the author's understanding, as the factory representative of the consumer goods company, should manage the following items:

1. Control customer orders and manage inventory days

Some people may be confused: ordering the factory is the responsibility of the dealer. How can it be done by the factory representative?

Yes, legally speaking, the order is of course the customer's power, but what is the basis for placing the order? For the company's product sales trend, who knows more than the factory representative? The customer distributes hundreds of products. How can he know the inventory and sales of various products? Procter & Gamble, Johnson & Johnson, Wahaha and other big companies are all ordered by the factory representatives according to product market trends and inventory conditions, and then signed by the customer.

As for the inventory days, the reason why it belongs to the management scope of the factory representatives is because the product inventory is related to the level of capital backlog and whether the products can be healthy and benign sales, which is of great significance. A foreign company has strict regulations on dealer inventory: the inventory is reported every week, and the standard inventory days are 20~25 days. Over 25 days of inventory is too large, the next order should be less; below 20 days, inventory is low, the next order should be increased. When the company reviews the performance of customers and factory representatives at the end of the year, the average inventory turnover days of customer products is an important indicator.

2. Manage customer product shipping prices

This concept is even more unbelievable for some old salesmen. The goods are sold to customers, but what price does he have to sell?

Indeed, managing customer prices is more difficult in all customer management projects. Of course, free pricing is the customer's right, the factory is difficult to interfere, but if it is a long-term partner, the customer should understand why the factory should participate in the management of the customer's sales price - for the stability of the market price order, for the healthy growth of the product. The customer's shipping price is too low, which is easy to cause the market to dump goods and goods; the shipping price is too high, the chain leads to high retail pricing, which affects the end consumer demand, and ultimately affects product sales; the shipping price is high and low, easy The market turmoil has also caused damage to the company's management image.

In practice, Johnson & Johnson and other companies generally control the gross profit margin of dealers' shopping malls by 5~10 points, and the wholesale market supply price is 0~3 points (excluding discounts and rebates).

Especially when the company's products are reduced in price, the factory representatives are particularly important to the customer's price management. Some of the total distribution may delay the price reduction date, or even cut the price, and profit from it. There are also new product pricing, and some customers are accustomed to the high profits of new products, and then lower prices according to the market. This is also the management of foreign companies that do not want to see, the factory representatives should control the customer's shipping price from the beginning. At normal levels.

3. Management franchise team

In general, customer management is accompanied by customer support, where the joint formation of the franchise team is a kind of regular support (such as the joint operation department of P&G), and the salary or bonus of the franchise team is provided by the factory. The factory representative is fully responsible for the day-to-day management of the franchise team, such as the development of sales plans and bonus assessment. In essence, through the management of the franchise team, the factory representatives control the distribution channels, so that the factory can achieve a number of sales targets, such as outlets, display, POP posting, intelligence collection. Unfortunately, many factory representatives in practice may be powerless and unwilling to manage the franchise team. The wages or bonuses sent by the factory to the franchise team will become distributors' profit subsidies.

4. Monitor channel promotions, manage promotional items

Promoting wholesale channels and retail channels through distributors is one of the common marketing activities in consumer goods companies. For example, the accumulation of points in the wholesale market, physical rewards, exhibition competition awards in retail stores, and factory-oriented bundled promotions for consumers. Without the strict management of the factory representatives and follow-up actions, the customer may not implement the company policy. Interception, spamming of gifts, and retention of rewards are common practices for some unrestricted dealers.

Second, customer management, how to manage

The factory and the customer are divided into different interests. There is no subordinate relationship objectively. How to manage the customer is a headache.

Management is control. Managing customers is no better than managing subordinates. It is impossible to use the power given by positions to command and control customer behavior. To manage customers, the factory representatives use more expert power, deterrence, and some rewards and punishments to achieve the goal of managing customers and the market through communication, negotiation and persuasion.

1. Expert power

In theory, the factory representative has no right to interfere with the customer's sales price, and has no right to place an order. Then, the customer will listen to the decision of the factory representative? As the factory representative, since the shoulders develop and manage the market, the market is Understanding, the corresponding business level should be deeper and more comprehensive than the customer. Through continuous communication and contact, we will establish a "sales expert" image in the eyes of customers. Once the "sales expert" image is established, naturally, many orders, sales, customers will be assured that the factory representatives to manage. Because the sales experts of the factory representatives have already convinced the customer that "it will be better than themselves." In fact, when P&G, Johnson & Johnson and other foreign companies train sales staff, they emphasize the concept of “sales experts”. In most cases, factory representatives rely on “experts” to influence customers.

2. Deterrent

Dealer selection and supply control are two strengths in the hands of some factory representatives. In the customer management practice, if the manufacturers do not agree on the funds, prices, outlets, promotions, etc. due to the expected deviations and target borrowings, the factory representatives often “add distributors, sever customer relationships, and not give "Feeding" threatens customers, and deterrence at critical moments often produces unexpectedly good results. Of course, deterrence cannot be abused, otherwise it will inevitably lead to the rigidity of customer relationships and disrupt cooperation.

In principle, Procter & Gamble has set up a distributor in the big city, and together with the establishment of the operation department, the factory representative fully implements the company's related prices and promotion policies through the management and operation department. However, in the operation, it was found that some dealers had poor credit and could not strictly implement the intention of the factory. Later, they had to add distributors in some cities to contain the original dealers, forcing customers to follow the factory sales model. (Procter & Gamble requires special specifications for pricing, number of outlets, display, etc.)

3. Reward

Making full use of the rewards and punishments given by the company is one of the common control methods in the practice management of the factory on behalf of customers. If the customer follows the company policy, the factory representative will reward the customer by “applying more credit lines, providing more personnel, promotion support, applying for special rewards”, etc. If the customer does not follow the company's relevant policies, the factory representative can also “lower” Credit line, transfer to cash customers, revocation of personnel support, confiscation of deposits, cancellation of the end of the year awards, etc. to punish customers.

In short, how to manage customers is an art, which requires the sales experts of the factory representatives themselves, and the various rewards and punishments that the company gives to the factory representatives. As for the deterrence caused by “adding distributors and cutting off customer relationships” The force is the killer of the factory representative.

Third, the two major problems in customer management practice

1. Management and anti-management

Factory representatives manage customer prices, inventory, channels, etc. This is only the factory's wishful thinking. Except for the strong companies such as P&G and Wahaha, there are not many factory representatives who can really control the customers. More factory representatives The company has limited ability, can't get the support of the company, etc. It can't manage the customers, but it is managed by the customers, such as collecting money for customers, tally, etc., and the factory representatives only support sales, but they have not played. Management control. Although some domestic enterprises recognize the importance of customer management, unfortunately, they have not given the factory representatives the corresponding reward and punishment and corresponding trust, which is an important reason for the inability to manage customers.

2. Good customer and customer management

It is not the goal of the factory representatives who have advanced marketing concepts to maintain good customer sentiment and manage customers effectively. It is not easy to get both fish and bear's paw. In reality, in order to obtain good customer sentiment, the factory representatives may sacrifice the interests of the company, such as allowing customers to dump at low prices, profiteering, allowing customers to confiscate gifts, etc. This of course does not mention any customer management. Similarly, if the company's policy management customers are strictly implemented, they will often not get the customer's understanding, and the end customer situation will deteriorate. How to grasp the "degree" in the meantime, and what kind of "bitter, sweet and sour" may be understood by only the representatives of millions of factories all over the country.

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